Leveraged Buyouts in the Hospitality Industry: Five Years Later

When the author wrote her first article for the FIU Hospitality Review on leveraged buyouts' some five years ago, this business strategy was beginning to enjoy increasing popularity. Since that time leveraged buyouts grew to unprecedented levels both in number and size of transactions. However, following the failure of the UAL proposal and the collapse of the junk bond market in 1989, there has been a marked slowdown in buyout activity this article examines major developments affecting leveraged buyouts over the past five years and addresses their future implications for the hospitality industry.

Evaluating and improving the opposing expert safeguard against junk science

In Daubert, the Supreme Court opined that opposing expert testimony is an effective safeguard against junk science in the courtroom. Although jurors maybe unable to identify flaws in scientific research without some assistance, social psychological research suggests that people can be trained to make more sophisticated judgments about scientific quality. Further, previous research demonstrated that an opposing expert who addresses the methodology of proffered expert testimony may not enable jurors to evaluate scientific validity. In three studies, I tested why this safeguard was ineffective using a variety of stimulus materials. In the first study, I examined the mediating effect of attitudes on juror decisions within the context of a sexual harassment trial. In the second study, I examined the moderating effect of the presentation of expert credentials on participant decisions regarding child suggestibility literature. In the third study, I tested several improvements to the safeguard using improvements designed to correct for the effects of attitudes and credential presentation on juror decisions within the context of a first-degree murder trial. I found that while opposing expert testimony may have potential as a safeguard, in its current form it is ineffective. That is, a traditional opposing expert caused jurors to be skeptical of all expert testimony rather than sensitizing them to the validity of the research presented at trial. Further, while the improvements tested in this study may have potential to assist jurors in making scientifically sound decisions, more research is needed to further test and refine these improvements. ^

Variables affecting government debt: A comparison of certificates of participation, tax -exempt revenue bonds and tax -exempt general obligation bonds

This dissertation analyzed and compared variables affecting interest rate and yield of certificates of participation, tax-exempt revenue bonds and tax-exempt general obligation bonds. The study employed qualitative and quantitative analysis methods. ^ Qualitative research methods included surveys, interviews and focus groups. The survey solicited debt load information from 67 Florida school districts (21 responded) and addressed the question which districts used certificates of participation and why. Eight individuals with experience dealing with all three debt instruments were interviewed. A follow-up focus group of six school district financial officers gathered additional data. Results from the qualitative methods revealed school districts used certificates of participation based on millage authority amount available relative to overall tax base. Also identified was the belief of a significant difference in certificates of participation costs and the other two debt instrument types. ^ The study's quantitative methods analyzed 1998 and 1999 initial issues of Moody's AAA rated certificates of participation, tax-exempt revenue bonds and tax-exempt general obligation bonds. Through an analysis of covariance (ANCOVA), the study examined interest rates and yields while controlling for the covariates of credit enhancement, issue size, and maturity date. The analysis identified no significant difference between interest rates of certificates of participation and tax-exempt general obligation bonds (p < 0.05). There was a significant difference between interest rates of tax-exempt revenue bonds and tax-exempt general obligation bonds. This study discerned no significant difference between yield on certificates of participation and tax-exempt general obligation bonds. It identified a difference in yield between both certificates of participation and tax-exempt general obligation bonds compared with tax-exempt revenue bonds. ^ The study found COPs to have lesser overall costs than RV bonds. COPs also have a quicker entry into the market resulting in construction cost savings. The study found policy implications such as investment portfolio limitations and public choice issues about using COPs as a mechanism to grow government. ^