The value of dividend imputation tax credits in Australia

A dividend imputation tax system provides shareholders with a credit (for corporate tax paid) that can be used to offset personal tax on dividend income. This paper shows how to infer the value of imputation tax credits from the prices of derivative securities that are unique to Australian retail markets. We also test whether a tax law amendment that was designed to prevent the trading of imputation credits affected their economic value. Before the amendment, tax credits were worth up to 50% of face value in large, high-yielding companies, but Subsequently it is difficult to detect any value at all. (C) 2003 Elsevier B.V. All rights reserved.

Relationship between franking credits and the market risk premium

In a dividend imputation tax system, equity investors have three potential sources of return: dividends, capital gains and franking (tax) credits. However, the standard procedures for estimating the market risk premium (MRP) for use in the capital asset pricing model, ignore the value of franking credits. Officer (1994) notes that if franking credits do affect the corporate cost of capital, their value must be added to the standard estimates of MRP. In the present paper, we explicitly derive the relationship between the value of franking credits (gamma) and the MRP. We show that the standard parameter estimates that have been adopted in practice (especially by Australian regulators) violate this deterministic mathematical relationship. We also show how information on dividend yields and effective tax rates bounds the values that can be reasonably used for gamma and the MRP. We make recommendations for how estimates of the MRP should be adjusted to reflect the value of franking credits in an internally consistent manner.

Creating innovation in small and medium-sized enterprises:evaluating the short-term effects of the creative credits pilot

This working paper looks at the short-term impact of the Creative Credits pilot scheme which operated in the Manchester City Region in the North West of England from September 2009 to September 2010, and was funded by NESTA, Manchester City Council, the North West Development Agency, the Economic and Social Research Council (ESRC) and the Arts and Humanities Research Council (AHRC). Creative Credits is a business-to-business (B2B) voucher mechanism designed to encourage small and medium-sized enterprises (SMEs) to work innovatively with creative companies. Businesses receive credits worth £4,000, which they must match with at least £1,000, to spend with creative firms on a variety of creative services.

Creative credits:a randomized controlled industrial policy experiment

This report examines the results of a pilot study, which used a method of evaluation called randomised control trials (RCTs) to see if a popular business support scheme called Creative Credits worked effectively. The pilot study, which began in Manchester in 2009, was structured so that vouchers, or 'Creative Credits', would be randomly allocated to small and medium-sized businesses applying to invest in creative projects such as developing websites, video production and creative marketing campaigns, to see if they had a real effect on innovation. The research found that the firms who were awarded Creative Credits enjoyed a short-term boost in their innovation and sales growth in the six months following completion of their creative projects. However, the positive effects were not sustained, and after 12 months there was no longer a statistically significant difference between the groups that received the credits and those that didn’t. The report argues that these results would have remained hidden using the normal evaluation methods used by government, and calls for RCTs to be used more widely when evaluating policies to support business growth.

Assessing an experimental approach to industrial policy evaluation:Applying RCT+ to the case of Creative Credits

Experimental methods of policy evaluation are well-established in social policy and development eco-nomics but are rare in industrial and innovation policy. In this paper, we consider the arguments forapplying experimental methods to industrial policy measures, and propose an experimental policy eval-uation approach (which we call RCT+). This approach combines the randomised assignment of firmsto treatment and control groups with a longitudinal data collection strategy incorporating quantitativeand qualitative data (so-called mixed methods). The RCT+ approach is designed to provide a causativerather than purely summative evaluation, i.e. to assess both ‘whether’ and ‘how’ programme outcomesare achieved. In this paper, we assess the RCT+ approach through an evaluation of Creative Credits – aUK business-to-business innovation voucher initiative intended to promote new innovation partnershipsbetween SMEs and creative service providers. The results suggest the potential value of the RCT+ approachto industrial policy evaluation, and the benefits of mixed methods and longitudinal data collection.

An exploratory analysis of relationships between socioeconomic, land use, activity participation variables and travel patterns

This paper aims to find relations between the socioeconomic characteristics, activity participation, land use patterns and travel behavior of the residents in the Sao Paulo Metropolitan Area (SPMA) by using Exploratory Multivariate Data Analysis (EMDA) techniques. The variables influencing travel pattern choices are investigated using: (a) Cluster Analysis (CA), grouping and characterizing the Traffic Zones (17), proposing the independent variable called Origin Cluster and, (b) Decision Tree (DT) to find a priori unknown relations among socioeconomic characteristics, land use attributes of the origin TZ and destination choices. The analysis was based on the origin-destination home-interview survey carried out in SPMA in 1997. The DT application revealed the variables of greatest influence on the travel pattern choice. The most important independent variable considered by DT is car ownership, followed by the Use of Transportation ""credits"" for Transit tariff, and, finally, activity participation variables and Origin Cluster. With these results, it was possible to analyze the influence of a family income, car ownership, position of the individual in the family, use of transportation ""credits"" for transit tariff (mainly for travel mode sequence choice), activities participation (activity sequence choice) and Origin Cluster (destination/travel distance choice). (c) 2010 Elsevier Ltd. All rights reserved.

Competitiveness of Brazilian sugarcane ethanol compared to US corn ethanol

Corn ethanol produced in the US and sugarcane ethanol produced in Brazil are the world`s leading sources of biofuel. Current US biofuel policies create both incentives and constraints for the import of ethanol from Brazil and together with the cost competitiveness and greenhouse gas intensity of sugarcane ethanol compared to corn ethanol will determine the extent of these imports. This study analyzes the supply-side determinants of cost competitiveness and compares the greenhouse gas intensity of corn ethanol and sugarcane ethanol delivered to US ports. We find that while the cost of sugarcane ethanol production in Brazil is lower than that of corn ethanol in the US, the inclusion of transportation costs for the former and co-product credits for the latter changes their relative competitiveness. We also find that the relative cost of ethanol in the US and Brazil is highly sensitive to the prevailing exchange rate and prices of feedstocks. At an exchange rate of US$1=R$2.15 the cost of corn ethanol is 15% lower than the delivered cost of sugarcane ethanol at a US port. Sugarcane ethanol has lower GHG emissions than corn ethanol but a price of over $113 per ton of CO(2) is needed to affect competitiveness. (C) 2010 Elsevier Ltd. All rights reserved.

An analysis of US greenhouse gas cap-and-trade proposals using a forward-looking economic model

We develop a forward-looking version of the recursive dynamic MIT Emissions Prediction and Policy Analysis (EPPA) model, and apply it to examine the economic implications of proposals in the US Congress to limit greenhouse gas (GHG) emissions. We find that shocks in the consumption path are smoothed out in the forward-looking model and that the lifetime welfare cost of GHG policy is lower than in the recursive model, since the forward-looking model can fully optimize over time. The forward-looking model allows us to explore issues for which it is uniquely well suited, including revenue-recycling and early action crediting. We find capital tax recycling to be more welfare-cost reducing than labor tax recycling because of its long-term effect on economic growth. Also, there are substantial incentives for early action credits; however, when spread over the full horizon of the policy they do not have a substantial effect on lifetime welfare costs.

Factors influencing organisational silence

Organisadonal silence is a recendy introduced area of business research that seeks to address why employees fail to express ideas, informadon and opinions that can effecdvely improve organisadonal effecdveness. In making a start to understand silence, the majority of frameworks have suggested that employees withhold valuable input from management because they believe that it is too personally cosdy to speak up, and/or management are unMkely to take acdon about their ideas or concerns. Because today's workforce are largely required to work in groups or teams, one of the primary aims of this paper is to provide a deeper understanding of this phenomenon by focusing on group process factors that are likely to drive silence. Research that consider the group perspecdve indicate that one's ingroup posidon (i,e,, pro to typicality), and the accumuladon of idiosyncrasy credits (i,e,, leeway to offer innovadve ideas) are likely to play a role in whether (or not) people speak up. For example, those on the periphery of the group or less prototypical group members may need to conform strenuously to group norms in order to improve their ingroup posidon. Similarly, those who have accrued few idiosyncrasy credits may need to conform to group expectadons in order to accumulate sufficient "resources" to deviate from group norms, and be taken seriously by other group members. Thus, the conceptual framework proposed is underpinned by the social idendty perspecdve as well as the nodon of idiosyncrasy credits.

Overview of the tuning template for radiography in Europe

HENRE II (Higher Education Network for Radiography in Europe)

Sistema de garantia mútua: estudo de caso da “SPGM - Sociedade de Investimento, S.A.”

Dissertação de Mestrado em Contabilidade e Finanças Orientador: Mestre António Pinto Marques

Titularização: inovação financeira, gestão de crédito e Normas Internacionais de Contabilidade

Mestrado em Auditoria

O crédito malparado e o sobreendividamento das famílias na região autónoma da Madeira

Mestrado em Contabilidade e Gestão das Instituições Financeiras