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on Law and Economics |
| By: | Dan Bogart (Department of Economics, University of California-Irvine) |
| Abstract: | The infrastructure sector has the potential to generate wide differences in profits and economic outcomes. This paper examines financial returns and investment strategies for Britain’s turnpike roads in the early nineteenth century. There are three main findings. First, rates of return on capital invested and returns to bondholders were similar to competitive sectors. Second, there was significant variation in returns across trusts. Third, there is evidence that turnpike investors were driven by financial motives, although economic motives appear to be important in some cases. The findings have implications regarding the connection between infrastructure and Britain’s industrialization. |
| Keywords: | Monopoly; Regulation; Turnpike roads; Infrastructure; Britain; Industrial Revolution |
| JEL: | K23 N43 N73 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:irv:wpaper:121304&r=law |
| By: | Ojo, Marianne |
| Abstract: | Many questions have been raised as to whether financial accounting has become more conservative. The value relevance and qualitative characteristics of accounting information have become topics of particular relevance given the role they have assumed in influencing the value judgment of investors (local or international) in deciding whether or not to invest in a certain market. Given the quality of accounting information – which has resulted in misleading and inaccurate information (amongst many other low quality attributes), it became evident, particularly following Enron's collapse, to adopt improved, enhanced, better quality standards: namely, International Financial Reporting Standards. This paper considers the background culminating in the adoption of IFRS – as well as the need for the adoption of IFRS. It also highlights why the value relevance of accounting information is also of vital significance in certain emerging economies and why the successful implementation of IFRS in these jurisdictions may be crucial in restoring investor confidence – particularly in the aftermath of stock market crashes in these economies. |
| Keywords: | value relevance; conservatism; capital markets; transparency; disclosure; comparability; consistency; accounting information; IFRS adoption ; mark to market accounting; IAS 32; IAS 39; financial instruments; fair value accounting; off balance sheet instruments |
| JEL: | K2 E0 D8 M4 C2 G01 |
| Date: | 2012–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41135&r=law |