What sort of mandatory penalties should we have?

The argument in favour of a widespread fixed penalty regime - adopting a primary rationale for punishment would facilitate a more coherent and exacting approach to sentencing - the central objections against fixed penalties are that they are too severe and lead to unfairness because they are unable to incorporate all the relevant sentencing variables - by adopting a utilitarian ethic as the primary rationale for punishment, these problems can be circumvented - no utilitarian justification for disproportionate punishment, and penalties should not exceed the seriousness of the offence - no foundation for most sentencing considerations - by disregarding irrelevant considerations, the remaining can be incorporated into a fixed penalty system - the way would then be open for a coherent sentencing law system in which criminal justice is governed by pre-determined rules and principles as opposed to the intuition of sentencers.

The desirability of criminal penalties for breaches of part IV of the trade practices act

Following the introduction of criminal sanction, including jail terms, for hard core cartelisation in the United Kingdom, the Dawson Review has recently recommended that criminal penalties be introduced in Australia for individuals and corporations found to have engaged in hard core cartels. A number of reasons have been advanced to justify the introduction of criminal sanctions for this type of conduct, the most common of which are that it would bring Australia in line with other competition regimes and that criminal sanctions are more likely to provide an effective deterrent. This article evaluates those reasons, and others, to determine whether there is any adequate justification for the proposed criminal regime.

Criminal penalties for contraventions of Part IV of the Trade Practices Act

In 2003 the Dawson Committee, commissioned by the Government, recommended that criminal penalties should be introduced for cartel conduct. The Government accepted this recommendation in principle and set up a working party to consider the implementation difficulties that had been identified in the Dawson Report. Nothing further was heard from the Government until February 2005 when the Government announced that it would introduce criminal penalties for serious cartel conduct. This paper evaluates the Government proposals and makes suggestions for their implementation.

Civil penalties : emphasising the adjective or the noun

In this article the writer argues that recent civil penalty cases demonstrate that a hybrid third way is evolving where the procedure shares some of the features of criminal and civil proceedings. The writer notes the recommendation of the Australian Law Reform Commission that Federal Parliament enact a Regulatory Contraventions Statute of general application and argues that such a statute might assist to provide greater consistency and clarity. The writer notes the debate about whether the courts’ approach is in line with legislative intention, but argues that where there are substantive law protections such as the privilege against a penalty, Parliament must do more than merely refer to the “rules of evidence and procedure for civil matters” and must expressly abrogate these protections if they are not to be available to defendants in such hearings.

Aggregation functions based on penalties

This article studies a large class of averaging aggregation functions based on minimizing a distance from the vector of inputs, or equivalently, minimizing a penalty imposed for deviations of individual inputs from the aggregated value. We provide a systematization of various types of penalty based aggregation functions, and show how many special cases arise as the result. We show how new aggregation functions can be constructed either analytically or numerically and provide many examples. We establish connection with the maximum likelihood principle, and present tools for averaging experimental noisy data with distinct noise distributions.

Does ownership affect a firm’s performance and default risk in Jordan?

This paper seeks to examine the impact of ownership structure on firm performance and the default risk of a sample of publicly listed firms.

Default probability for the Jordanian companies: A test of cash flow theory

Abstract
This paper aims to investigate the effect of cash flow and free cash flow on corporate failure in the emerging market in particular Jordan using two samples; matched sample and a cross sectional time-series (panel data) sample representative of 167 Jordanian companies in 1989-2003. LOGIT models are used to outline the relationship between firms’ financial health and the probability of default. Our results show that there is firm’s free cash flow increases corporate failure. The result also shows that the firm’s cash flow decreases corporate failure. Firms’ capital structures are fund a mental in predicting default. Capital structure is seen as the main factor affecting the probability of default as it affects a firm’s ability to access external sources of funds. Jordanian firms depend on short-term debt for both short and long term financing.

Costly monitoring, dynamic incentives, and default

We study dynamic contracts between a lender and a borrower in the presence of costly state verification and hidden effort. We prove three results. Costly monitoring is employed by the lender to optimally limit history dependence and prevent future inefficient termination of the relationship. Due to interaction between costly monitoring and dynamic incentives, the probability of monitoring may fail to be monotone in the borrower's reservation utility. Finally, following the interpretation of the costly state verification literature, we distinguish two levels of bankruptcy: one associated with restructuring and the other with liquidation.