bluuebunny/crossref_metadata_2025 huggingface dataset:
Kinetics of carbothermic reduction reactions under heat transfer control: modelling results
Authors: Pistorius P. Chris
Published: April 2005

Energy is an important input in all primary metal production. The rate of heat transfer can sometimes be used to control the metal production rate directly, and it is important to know the relationship between heat transfer and reaction rate. In this work, a modelling approach was followed to investigate the origin of—and variations in—this relationship. Reduction processes are generally not constrained by thermodynamics alone, and the reaction temperature is related to the reaction rate and the reactivity of the raw materials. Even with such mixed control (with both heat transfer and chemical kinetics affecting the reaction rate), the relationship between energy requirement and degree of reduction was found to be little affected by process conditions, because reaction activation constrains the range of reaction temperatures, and because of the relatively small heat capacity of the reduced product.
Motion of fine particles in liquid caused by interfacial tension gradient in relation to metals separation technologies
Authors: Mukai Kusuhiro , Matsushita Taishi , Seetharaman Seshadri
Published: April 2005

Some ideas for promoting the metal separation process are proposed based on the consideration of the force caused by interfacial tension gradient as a driving force. The force drives the particle toward the direction of the lower interfacial tension side, which has been confirmed by water model experiments. Therefore, it is possible to move fine metal particles by producing interfacial tension gradient between fine metal particles and molten slag. The force in molten slag–metal (iron) system was evaluated under some assumptions. The evaluation indicates that the force is enough large to engulf the fine metal particle by the interface between metal particle and slag for promoting metal separation process.
The influence of toothpastes and prophylaxis pastes on fluorescence measurements for caries detection in vitro
Authors: Lussi A. , Reich E.
Published: April 2005

The aim of this study was to test the influence of toothpaste and prophylaxis paste remnants as well as powder remnants on DIAGNOdent readings. A total of 68 sites on the occlusal surface of human molars were used for this study. After a cleaning procedure, saliva was spread on the tooth surface, dried for 3 s, and DIAGNOdent (DD) values were measured. After these measurements were performed, 500 mg of the toothpaste or prophylaxis paste was taken and the occlusal surface was cleaned for 3 s with a slow rotating contra‐angle handpiece. The paste was then rinsed off with the 3‐in‐1 syringe for 3 s using water with air. The DD measurements were taken again and the rinsing for 3 s and fluorescence measurements were repeated. The procedure with the powder using the PROPHYflex 2 was, in principle, the same. Whereas only small differences could be detected on sound surfaces, there was a distinct influence on decayed surfaces. It could be concluded that when the DIAGNOdent device is used in practice and special care in rinsing after cleaning is not taken, it is possible that false readings are registered.
Assessment of dental appearance following changes in incisor proportions
Authors: Wolfart Stefan , Thormann Helen , Freitag Sandra , Kern Matthias
Published: April 2005

This study aimed to evaluate the assessment of attractiveness of standardized changes in incisor proportions. Two original photographs, showing the maxillary anterior teeth in the frame of a smile, were computer‐manipulated. From the so‐produced symmetrical ‘golden standard’ images, two sets were constructed. Each set contained one golden standard image and seven images with different standardized changes concerning (i) width‐to‐length ratios of the central incisors (60–96%) and (ii) tooth‐to‐tooth proportions between the widths of lateral and central incisors (43–87%). The judges, consisting of three groups of individuals (24 dentists, 24 medical students, and 179 patients), ranked each photo set for attractiveness on a visual analogue scale. The width‐to‐length ratios were assessed as most attractive within a range of 75–85% (medical students, patients) or 75–80% (dentists), respectively. The tooth‐to‐tooth proportions showed the best results concerning attractive appearance within a range of 50–74% (medical students, patients) or 56–68% (dentists), respectively. No significant differences between the participant groups were found except for some extreme variations. It was concluded that a most attractive ‘golden range’ could be identified for both the width‐to‐length ratios and the tooth‐to‐tooth proportions of the maxillary incisors.
Assessment and Management of Women's Sexual Dysfunctions: Problematic Desire and Arousal
Authors: Basson Rosemary , Brotto Lori A. , Laan Ellen , Redmond Geoffrey , Utian Wulf H.
Published: April 2005

Introduction

Women frequently report low sexual desire or interest. An associated lack of subjective arousal during sexual activity is clinically highly apparent but has not been the focus of traditional sexual inquiry, definitions of dysfunction, or management. The frequent poor correlation of women's subjective sexual arousal and observable increases in genital congestion in response to sexual stimulation has not been reflected in assessment, diagnosis, or management.

Aim

To provide recommendations/guidelines for the assessment and management of women's sexual dysfunctions focusing on low desire, low interest, and lack of arousal.

Methods

An international consultation, in collaboration with major sexual medicine associations, assembled over 200 multidisciplinary experts from 60 countries into 17 committees. One subcommittee of five members focused on women's sexual desire and arousal, developing over a 2-year period various recommendations.

Main Outcome Measure

Expert opinion was based on grading of evidence-based scientific literature, widespread internal committee discussion, public presentation, and debate.

Results

Women's sexual response in health can be reconceptualized as a circular model of overlapping phases of variable order influenced by psychological, societal, and biological factors. Subsequent revisions to definitions of arousal and desire disorder are given. Recommendations regarding assessment and management focus on factors reducing arousability and satisfaction. These include women's mental health and feelings for their partner, generally and at the time of sexual activity. Recommendations reflect the poor correlation of subjective arousal and increases in genital vasocongestion.

Conclusion

Further outcome research of management based on new conceptualization of sexual response and revised definitions of dysfunction is needed. The basis of the variable correlation between genital vasocongestion and subjective arousal needs clarification as do the biological underpinnings of sexual response and their changes with age and life cycle.
Women's Sexual Pain and its Management
Authors: Weijmar Schultz Willibrord , Basson Rosemary , Binik Yitzchak , Eschenbach David , Wesselmann Ursula , Van Lankveld Jacques
Published: April 2005

Introduction

Approximately 15% of women have chronic dyspareunia that is poorly understood, infrequently cured, often highly problematic, and distressing. Chronic dyspareunia is an urgent health issue.

Aim

To provide recommendations/guidelines concerning state-of-the-art knowledge for the assessment and management of women's sexual pain disorders.

Methods

An international consultation, in collaboration with the major sexual medicine associations, assembled over 200 multidisciplinary experts from 60 countries into 17 committees. One six-member committee focused on women's sexual pain disorders, developing recommendations over a 2-year period.

Main Outcome Measure

Expert opinion was based on grading of evidence-based medical literature, widespread internal committee discussion, public presentation, and debate.

Results

There is increasing evidence for the role of neuropathic pain mechanisms in the pathophysiology of sexual pain disorders. Empirical literature has demonstrated the comorbid presence of clinical psychopathology. With regard to the pathophysiologic role of the pelvic floor and sexual pain disorders, studies reveal that (i) differentiation between vaginismus and dyspareunia using clinical tools is difficult; (ii) vaginal spasms have not been identified; (iii) physical therapists can differentiate vaginismic women from matched controls based on muscle tone/strength differences; (iv) the traditional treatment of vaginismus with vaginal “dilatation” plus psycho-education, desensitization, and so forth is not evidence-based; (v) pelvic floor muscle tone/strength measures for women suffering from vulvar vestibulitis syndrome are intermediate between those of women with vaginismus and no-pain controls; and (vi) the pelvic floor musculature is indirectly innervated by the limbic system and highly reactive to emotional stimuli and states. Pelvic floor therapies for dyspareunia may be effective.

Conclusion

Recommendations include (i) revising the definitions of vaginismus and dyspareunia; (ii) integration of treatment approaches; (iii) validation of nonspecific treatment effects; (iv) controlled studies to test interventions; and (v) sexuality education to help prevent sexual pain.
Efficacy of Sildenafil Citrate (Viagra) in Men with Premature Ejaculation
Authors: McMahon Chris G. , Stuckey Bronwyn G.A. , Andersen Morten , Purvis Kenneth , Koppiker Nandan , Haughie Scott , Boolell Mitra
Published: April 2005

Objectives

Premature ejaculation (PE) is the most common ejaculatory dysfunction. We assessed the efficacy of sildenafil to increase the time to ejaculation, improve ejaculatory control, and decrease the postejaculatory erectile refractory time in men with PE.

Design and Methods

The main study was an 8-week, double-blind, placebo-controlled, parallel group study in men between 18 and 65 years of age with diagnosed PE. A substudy was also conducted using a subset of patients (two-way crossover, one center) before entry to the main study. The primary study measured intravaginal ejaculatory latency (IELT) and responses to the Index of Premature Ejaculation (IPE) questionnaire. The substudy measured vibrotactile stimulation ejaculatory latency time (VTS-ELT) and postejaculatory erectile refractory time. Differences between treatment groups were determined by ancova at the 5% level of significance.

Results

The change in IELT (1.6 ± 6.08 vs. 0.6 ± 2.07 minutes) and VTS-ELT (2.9 ± 0.4 vs. 2.4 ± 0.4 minutes) were higher after taking sildenafil, compared with placebo, but did not reach statistical significance. However, patients who took sildenafil (vs. placebo) reported significantly (P < 0.05) increased ejaculatory control (1.8 ± 0.3 vs. 1.5 ± 0.3), increased ejaculatory confidence (2.2 ± 0.2 vs. 1.9 ± 0.2), and improved overall sexual satisfaction scores (3.1 ± 0.2 vs. 2.8 ± 02) on the IPE, and had a decreased postejaculatory erectile refractory time (3.2 ± 0.7 vs. 6.4 ± 0.7 minutes). The most common adverse events for sildenafil (vs. placebo) were headache (15% vs. 1%), flushing (15% vs. 0%), dyspepsia (5% vs. 1%), abnormal vision (5% vs. 0%), and rhinitis (5% vs. 0%).

Conclusions

Although IELT and VTS-ELT were not significantly improved, sildenafil increased confidence, the perception of ejaculatory control, and overall sexual satisfaction, and decreased the refractory time to achieve a second erection after ejaculation in men with PE.
Psychosexual Factors That Differentiate Men with Inhibited Ejaculation from Men with No Dysfunction or Another Sexual Dysfunction
Authors: Rowland David , Van Diest Selma , Incrocci Luca , Slob A. Koos
Published: April 2005

Aim

Inhibited or retarded ejaculation (IE) is an uncommon male sexual dysfunction that may result in a lack of sexual fulfillment for both the man and his partner. In this study, we attempted to identify factors that differentiate men with IE from sexually functional controls or from men with other sexual dysfunctions and to specify whether such factors predict self-reported sexual arousal during psychophysiological assessment.

Methods

Each patient underwent psychophysiological assessment and a structured clinical interview based on a standardized questionnaire that included demographic information, psychosexual and medical history, and assessment of current sexual, erectile, and ejaculatory function, including relationship quality and characteristics.

Results

Men with IE resemble men with other dysfunctions but are differentiated from controls, in their lower level of relationship satisfaction, greater level of distress, and higher level of health-related problems. Men with IE were further characterized by lower levels of self-reported subjective sexual arousal, despite exhibiting strong penile response during psychophysiological testing and reporting high quality erections across a variety of situations. Also notable, however, were the many factors on which men with IE did not differ from controls.

Conclusions

Taken together, this research helps specify directions for future investigations of men with IE.
Attitudes of Men with Erectile Dysfunction: A Cross-National Survey
Authors: Perelman Michael , Shabsigh Ridwan , Seftel Allen , Althof Stanley , Lockhart Dan
Published: April 2005

Introduction

Erectile dysfunction (ED), the inability to achieve or maintain an erection sufficient for sexual performance, is a complex disorder involving multiple biopsychosocial factors.

Aim

To better understand the psychological and behavioral aspects of ED and compare the attitudes of ED patients in different countries.

Methods

The Cross-National Survey on Male Health Issues surveyed men aged 20–75 years in six countries. Participants completed questionnaires on attitudes, behavior, doctor-related issues, and comorbidities.

Main Outcome Measures

Men rated their attitudes using a scale of 1 (strongly disagree) to 5 (strongly agree). Responses of “somewhat agree” and “strongly agree” were combined and the percentage calculated for each country and overall. A mean score for all responses (1–5) was calculated for each country.

Results

Attitudes held by men with ED overlap significantly when compared between countries. Men in all countries agreed that ED was a source of great sadness for themselves and their partners, and nearly all disagreed with the idea that they were too old for sex. Men in all countries agreed that it was important to know they had the capacity to perform sexually, and half of all men reported they would do “nearly anything” to cure their ED. Men in all countries also agreed that their doctor was the best source of information on sexual issues. Men in the United States and the United Kingdom were less willing to accept ED, more motivated to find a cure, and less likely to consider ED a result of psychological problems.

Conclusions

Attitudes of men with ED overlap significantly when compared between countries, but interesting differences were seen. Additional research is needed to understand how attitudes and behaviors reported reflect actual experiences. This study highlights some of the barriers that exist between physician–patient communication surrounding identification and treatment of ED.
The Impact of Aging on Sexual Function and Sexual Dysfunction in Women: A Review of Population-Based Studies
Authors: Hayes Richard , Dennerstein Lorraine
Published: April 2005

Introduction

Scientific interest in the impact of aging on women's sexual function and dysfunction has increased in the half century since Kinsey described age-related changes in women's sexual activities. However, a range of methodological issues limit the conclusions that can be drawn from many published studies in this area.

Aim

To review community-based studies investigating changes in women's sexual function and sexual dysfunction with age, taking into account confounders to aging and methodological limitations.

Methods

Electronic databases were searched for published studies investigating changes in sexual function and dysfunction with age. A critical review was carried out.

Main Outcome Measures

Age-related changes in sexual function and dysfunction.

Results

There are inconsistencies in the way sexual function and sexual dysfunction are measured. Validated scales are infrequently used. Low response rates, limited age ranges, and restrictive inclusion criteria limit the generalizability of many studies. Confounders are often either not measured or not analyzed. Longitudinal studies are rare, making it difficult to separate the effects of birth cohort and aging. The evidence indicates that a woman's sexual function declines with age. This decline begins in a woman's late 20s to late 30s. Specifically, desire, frequency of orgasm, and frequency of sexual intercourse decrease with age. However, it is not clear whether arousal decreases or remains relatively constant. In longitudinal studies, decline in women's sexual function has also been detected, but patterns of stability and improved sexual function have also been observed for short periods of time. The prevalence of most sexual difficulties or dysfunctions changes little with age, with the exception of sexual pain, which may decrease.

Conclusions

Age-related changes in sexually related personal distress may help explain why the prevalence of sexual dysfunctions remains constant with age while sexual function declines. More research is needed to demonstrate this.
Comparison of Efficacy, Safety, and Tolerability of On-Demand Tadalafil and Daily Dosed Tadalafil for the Treatment of Erectile Dysfunction
Authors: McMahon Chris
Published: April 2005

Objective

To assess and compare the efficacy of on-demand tadalafil and daily tadalafil in the treatment of erectile dysfunction.

Materials and Methods

A total of 145 men with a mean age of 57.3 years (range 19–82 years) and mild to severe erectile dysfunction of various etiologies were randomized to receive on-demand tadalafil (20 mg) or daily tadalafil (10 mg) taken without food or alcohol restrictions in a trial lasting 26 weeks. The three primary outcome measures were changes from baseline in the erectile function domain of the International Index of Erectile Function (IIEF), the proportion of “yes” responses to questions 2 and 3 of the Sexual Encounter Profile (SEP). Additional efficacy instruments included a Global Assessment Question administered at completion of the study.

Results

Compared with baseline, on-demand and daily tadalafil enhanced all efficacy outcomes. Patients receiving on-demand tadalafil (20 mg) and daily tadalafil (10 mg) experienced a significant mean improvement of 8.3 and 11.9, respectively, in the erectile function domain of the IIEF from baseline (P < 0.001). The mean change from baseline was significantly higher for daily dosed tadalafil than for on-demand tadalafil (P < 0.05). Sexual intercourse was successfully completed (SEP3) in 69% and 84% of patients taking on-demand tadalafil and daily tadalafil, respectively, compared with 30% at baseline (P < 0.001). Successful completion of sexual intercourse was statistically higher for daily tadalafil than for on-demand tadalafil (P < 0.05). Treatment with on-demand tadalafil or daily tadalafil was well tolerated, and headaches, facial flushing, and dyspepsia were the most frequently observed adverse events.

Conclusion

Tadalafil was effective and well tolerated in this patient population. Treatment with daily tadalafil was associated with a significantly higher IIEF erectile function domain score and completion of successful intercourse compared with on-demand tadalafil.
The Prevalence of Bother, Acceptance, and Need for Help in Men with Erectile Dysfunction
Authors: De Boer B.J. , Bots M.L. , Lycklama à Nijeholt A. A. B. , Verheij Th.J.M.
Published: April 2005

Introduction

Apart from knowledge on the prevalence of erectile dysfunction (ED), for clinical reasons it is important to obtain information on concern or bother and need for help. However, information is lacking on men with ED who need help but do not seek medical attention. Thus, this study aimed to assess the distribution of bother, acceptance, and need for help in men with ED, and assess characteristics of patients with ED in need for help but not receiving medical attention for ED.

Methods

A total of 5,721 men aged 18 years and older and registered in 12 general practices in the middle of the Netherlands were sent a questionnaire by mail about sexual problems, ED, need for help, and medical attention. Out of 2,117 questionnaires that were returned, 1,481 were completed on ED, bother, and need for help.

Results

The prevalence of ED (according to World Health Organization definition) in the 1,481 men was 14.2%. Of these men 67.3% were bothered, 68.7% did not accept ED, and 85.3% wanted help. Surprisingly, 41.9% of men who denied a need for help were bothered and 19.4% did not accept ED. Only 10.4% of men with ED received any medical care. Bother in men with ED was related to increasing age (decreasing above 60 years). Compared with men who already received help for ED, men who wanted help but did not receive it more often suffered from diabetes, neurological problems, and various cardiovascular problems. On the other hand, history of myocardial infarction increased the chance of getting adequate medical attention for ED.

Conclusions

The majority of men with ED are concerned or bothered and perceive a need for help. Most of them do not receive any medical attention. These men are characterized by chronic medical conditions, visiting the physician's office regularly for their medical condition.
Prevalence of Premature Ejaculation: A Global and Regional Perspective
Authors: Montorsi Francesco
Published: April 2005

The effort to determine the global burden of premature ejaculation (PE) has been impeded by the lack of a clear and universally accepted definition of the condition. Current diagnostic criteria are variable and rely, to a large degree, on subjective measurements. Moreover, the absence of a clear consensus on what constitutes a normal ejaculatory latency has impeded research into the prevalence of PE, although evidence is gradually accruing that may make this definition easier. Perception of “normal” ejaculatory latency varies by country and can differ when assessed either by the patient or their partner. Despite these limitations, information from the Global Study of Sexual Attitudes and Behaviors and other sources suggests a global prevalence of PE of approximately 30% across all age groups. The etiology underpinning this prevalence remains to be clarified, but current evidence reflects a shift from psychogenic theories to more neurobiological bases. While elucidation of the etiology of PE will undoubtedly aid the development of more effective therapies, it is clear that, whatever the cause of the condition, it is associated with a significant burden on psychological and overall health.
VALUE AT RISK: USES AND ABUSES
Authors: Culp Christopher L. , Miller Merton H. , Neves Andrea M. P.
Published: April 2005

Value at risk (or “VAR”) is a method of measuring the financial risk of an asset, portfolio, or exposure over some specified period of time. By facilitating the consistent measurement of risk across different assets and activities, VAR allows companies to monitor, report, and control their risks in a manner that efficiently relates risk control to desired and actual economic exposures.

Nevertheless, reliance on VAR can result in serious problems when improperly used, and would‐be users of VAR are advised to consider the following three pieces of advice:

 First, VAR is a tool for firms engaged in total value risk management. Companies concerned not with the value of a stock of assets and liabilities over a specific time horizon, but rather with the volatility of a flow of funds, are often better off eschewing VAR altogether in favor of a measure of cash flow volatility.

 Second, VAR should be applied very carefully to companies that practice “selective” risk management those firms that choose to take certain risks as a part of their primary business. When VAR is reported in such situations without estimates of corresponding expected profits, the information conveyed by the VAR estimate can be extremely misleading.

 Third, as a number of recent derivatives disasters are used to illustrate, no form of risk measurement including VAR–is a substitute for good management. Risk management as a process encompasses much more than just risk measurement. Indeed, risk measurement (whether using VAR or some of the alternatives proposed in this article) is pointless without a well‐developed organizational infrastructure and IT system capable of supporting the complex and dynamic process of risk taking and risk control.
OWNERSHIP AND CONTROL IN SOUTH AFRICA UNDER BLACK RULE
Authors: Kantor Brian
Published: April 2005

An article published in this journal three years ago defended the South African corporate ownership system with its five largest “groups” then exercising effective control over companies representing nearly 80% of the value of the Johannesburg Stock Exchange–as “an efficient outcome of a largely voluntary market process in which owner‐managers compete for capital supplied mainly by South African institutional investors.” This article extends the earlier analysis by noting that, since the beginning of black majority rule in 1994, the South African group system has adapted by finding ways for black entrepreneurs to participate in the control and ownership of major South African businesses. And such experiments in “black empowerment” have produced a number of notable successes. At the same time, the idea of investing in shares has now become widely accepted in black communities that once viewed the Stock Exchange as a bastion of exclusive white interests.

The larger import of such changes is their apparent success in “legitimizing” the established financial structure for the new South Africa, thereby protecting a fundamentally market‐based system from potentially damaging intervention by the State. But if that system is to prosper over the longer run, economic efficiency must remain the primary goal; and, as share ownership spreads among the black community, it must become a more important source of black wealth than the successes of a small group of black entrepreneurs controlling large stakes on the JSE.
SOURCING EQUITY INTERNATIONALLY WITH DEPOSITARY RECEIPT OFFERINGS: TWO EXCEPTIONS THAT PROVE THE RULE
Authors: Karolyi G. Andrew
Published: April 2005

Corporations around the world are now aggressively raising equity capital in the U.S. by crosslisting their shares on major U.S. stock exchanges in the form of depositary receipts (DRs). After describing the process by which companies create DR programs to crosslist their shares in the U.S., this article surveys the existing empirical evidence on the effects of such cross‐listings on the companies' cost of capital, global risk exposures, and liquidity.

Among the most notable findings, the article reports that significant positive share price reactions, reductions in risk measures, and increases in liquidity are observed following crossborder listings, though mainly in the case of non‐U.S. companies listing for the first time in the U.S. To illustrate these capital‐market effects, the article recounts in some detail two recent cases of international capital‐raising facilitated by DR offerings: Deutsche Telekom and China's Huaneng Power International.
DEBT, FOLKLORE, AND CROSS‐COUNTRY DIFFERENCES IN FINANCIAL STRUCTURE
Authors: Rajan Raghuram , Zingales Luigi
Published: April 2005

Conventional wisdom has long held that, in relationship‐based economies such as Japan and Germany, corporations are able to borrow more than U.S. companies, which in turn reduces their cost of capital and gives them a competitive edge. But such folklore does not stand up to scrutiny. In Japan and Germany, large businesses do not borrow more than U.S. companies–and, in fact, judging from coverage ratios, German companies (as well as U.K. companies) seem to borrow considerably less than their international competitors.

The article also reports that, in countries where financial markets are “transparent,” the development of the banking sector has little additional impact on the growth of “financially dependent” industries. That is, although industries that require a lot of external finance grow faster in countries where the bank credit‐to‐GDP ratio is high, the growth rates of such industries are much more correlated with the level of accounting standards (with high standards serving as a proxy for well‐developed capital markets) than with a strong banking system.
VALUE‐AT‐RISK AND CORPORATE VALUATION
Authors: Godfrey Stephen , Espinosa Ramon
Published: April 2005

Although first used mainly by financial institutions to evaluate their trading risks, Value‐at‐Risk (VAR) can also be used to enhance an industrial corporation's understanding and management of its market risks. To illustrate this broader application of VAR analysis, the authors present a simple example focusing on the valuation of a closely held company. In this case, VAR is used to analyze the sensitivity of the firm's value to movements in uncertain exchange rates, commodity prices, and interest rates.
DISAPPEARING DIVIDENDS: CHANGING FIRM CHARACTERISTICS OR LOWER PROPENSITY TO PAY?
Authors: Fama Eugene F. , French Kenneth R.
Published: April 2005

The proportion of U.S. firms paying dividends drops sharply during the 1980s and 1990s. Among NYSE, AMEX, and Nasdaq firms, the proportion of dividend payers falls from 66.5% in 1978 to only 20.8% in 1999. The decline is due in part to an avalanche of new listings that tilts the population of publicly traded firms toward small firms with low profitability and strong growth opportunities—the timeworn characteristics of firms that typically do not pay dividends. But this is not the whole story. The authors' more striking finding is that, no matter what their characteristics, firms in general have become less likely to pay dividends.

The authors use two different methods to disentangle the effects of changing firm characteristics and changing propensity to pay on the percent of dividend payers. They find that, of the total decline in the proportion of dividend payers since 1978, roughly one‐third is due to the changing characteristics of publicly traded firms and two‐thirds is due to a reduced propensity to pay dividends. This lower propensity to pay is quite general—dividends have become less common among even large, profitable firms.

Share repurchases jump in the 1980s, and the authors investigate whether repurchases contribute to the declining incidence of dividend payments. It turns out that repurchases are mainly the province of dividend payers, thus leaving the decline in the percent of payers largely unexplained. Instead, the primary effect of repurchases is to increase the already high payouts of cash dividend payers.
STOCK BUYBACKS, CORPORATE PERFORMANCE, AND EVA
Authors: Gup Benton E. , Nam Doowoo
Published: April 2005

Most studies of corporate stock repurchase focus on the effect of stock buyback announcements on the stock price performance of companies announcing the programs, and on the corporate motives for undertaking stock buyback programs. The study described in this article examines the effects of actual stock buyback activities on corporate performance, addressing the question whether buybacks are associated with increases in economic value or EVA. In general, the study reports that the operating performance of buyback companies is better than that of non‐buyback companies, and that performance improves in the year following the initiation of repurchasing activities. Although it is not the central focus of this study, the findings are consistent with both the free cash flow and the information signaling hypotheses as motives for engaging in stock buybacks.
REAL OPTIONS PRIMER: A PRACTICAL SYNTHESIS OF CONCEPTS AND VALUATION APPROACHES
Authors: Hevert Kathleen T.
Published: April 2005

Strategic capital investment decisions are being made every day in an increasingly uncertain world. While the traditional NPV approach does a reasonable job of valuing simple, passively managed projects, it does not capture the many ways in which a highly uncertain project might evolve, and the ways in which active managers will influence this evolution. In cases where managerial flexibility is a major source of strategic value, companies will want to use real options valuation methods.

This article serves as a managerial tutorial on this newer, less understood approach. It uses simple examples to illustrate the essence of four basic categories of real options—timing, growth, production, and abandonment. The examples begin by taking a “binomial” approach to option valuation, in which the value of an investment initiative is allowed to take on two possible future values. Besides being used to illustrate the distinctive features of a real option, the binomial approach also serves to help the reader understand the alternative Black‐Scholes valuation approach (though without requiring the reader to master the complex mathematics underlying Black‐Scholes). Basic instructions for implementing both approaches are provided, along with a discussion of how to set appropriate discount rates and the important role of volatility assessment in the valuation process.
TRANSFORMING ENRON: THE VALUE OF ACTIVE MANAGEMENT
Authors: Kaminski Vince , Martin John
Published: April 2005

Soon after Enron was formed as a regulated gas pipeline company in 1985, economic events forced a dramatic reorganization of the company. The result was the creation of an unregulated energy trading operation whose mission was to capitalize on opportunities arising from the deregulation of the natural gas market The initial form of the new business was that of a “gas bank” in which Enron became an intermediary between buyers and sellers of gas, locking in the spread as profit. Since there was no source of liquidity to the market, Enron had to develop its own risk management system.

Furthermore, the need to respond quickly to rapidly changing market conditions required that Enron flatten its organizational structure and hire new people whose skills were better suited to the new decentralized organization. The focus of the new Enron accordingly became human and intellectual capital, not physical assets. Employees were encouraged to move about the firm to staff new business ventures. And in what may well be a unique feature in corporate America, Enron's top management today uses its human capital flows to guide its allocations of financial capital. Other aspects of the Enron model include attempts to capitalize on the option (as opposed to current DCF) value of assets, recognition of the value of networks in adding value to trading platforms, and the use of mark‐to‐market accounting for business transactions as a means of ensuring transparency and promoting timely decision‐making.
EVA IN THE E&P INDUSTRY: THE CASE OF NUEVO ENERGY
Authors: McCormack John , Gow Ian Drummond
Published: April 2005

This article presents a case study illustrating some aspects of the new business model discussed in the roundtable above. Continuing a major theme in the roundtable, the authors begin by arguing that the long‐run failure of the E&P industry to create shareholder wealth stems to a large degree from weak or distorted incentives held out to the top executives and managers of most large, publicly traded companies. This article traces the incentive problem to the lack of an effective wealth creation metric to guide the financial management process. Although the industry employs a variety of accounting‐based performance measures, none is a reliable measure of wealth creation.

In place of traditional financial metrics such as earnings, annual cash flow, and return on capital, this article recommends a performance evaluation and incentive compensation system that is tied to the use of a “reserve‐adjusted” EVA measure—one that exhibits a strong statistical correlation with changes in shareholder wealth in the E&P business. The greater explanatory power of this new measure reflects the reality that changes in the value of reserves in the ground can greatly outweigh changes in annual earnings or cash flows.

As the focal point of a compensation plan, EVA has advantages over stock options in that it can be calculated at various levels in the organization, even at the level of a single well, whereas stock prices only exist for the company as a whole. For this reason, an EVA incentive system permits a clearer “line of sight” between pay packages and the performance of the part of the business for which managers are directly accountable. Perhaps even more important, EVA can be calculated (using an “internal hedging” mechanism) in a way that removes the impact of changes in oil prices on the incentive outcome. And, as demonstrated in the case study of Nuevo Energy, such internal hedging allows companies to give their employees a much greater share of wealth created with far less cost than by simply granting stock or stock options.
WHY HEDGE? SOME EVIDENCE FROM OIL AND GAS PRODUCERS
Authors: Haushalter David
Published: April 2005

Despite the prevalence of corporate risk management, there are no widely accepted explanations for why companies hedge or how shareholders benefit from hedging. This article provides some evidence on these issues by reporting the results of a study of the risk management policies of 100 oil and gas producers from 1992 to 1994.

The first notable finding is the considerable variety of the hedging policies of the oil and gas producers. For example, in 1993 slightly more than half of the companies did not hedge, while a quarter of the firms in the sample hedged more than 28′ of their production, and some firms hedged almost 100′. The second main finding was that the extent of hedging was related to a variety of factors, largely those related to financing costs. In particular, companies with higher leverage—and thus presumably facing greater difficulties in accessing the capital markets—tended to hedge a larger fraction of their output than firms with lower leverage ratios. This result is consistent with the idea that corporations manage risks to help ensure they have sufficient capital to finance their investment opportunities and to reduce the likelihood that low oil and gas prices will push them into financial distress. Under either of these interpretations, financial theory would suggest that corporate hedging increases shareholder value. Whether it actually does so is a matter for future research.
CHOOSING THE RIGHT FINANCIAL SYSTEM FOR GROWTH
Authors: Barth James R. , Nolle Daniel E. , Root Hilton L. , Yago Glenn
Published: April 2005

Well‐functioning financial systems promote economic growth by channeling funds from those who save to those who invest in the productive capacity of economies. What are the main features of a well functioning system? Are well developed capital markets essential to the process? Or are commercial banks and other “private” sources of capital capable of bringing about the same levels of growth and prosperity?

In this article, the authors use information about the financial systems of a large number of both developed and developing countries to examine various relationships between a country's financial structure and its overall economic performance. Perhaps most important, the authors report a significantly positive correlation, using data for 34 countries, between the size of a country's financial system—measured by the total of commercial bank assets, equity market capitalization, and bonds outstanding—and economic development (as measured by GDP per capita). At the same time, the authors also provide evidence that banks (or loans) and capital markets (or securities) are complements, not substitutes, in promoting economic development, and that the presence of foreign‐owned banks (though not state‐owned banks) has a positive association with growth. In other words, both private banks and capital markets are likely to play important, though different roles in channeling funds from savers to investors.
RECENT DEVELOPMENTS IN GERMAN CAPITAL MARKETS AND CORPORATE GOVERNANCE
Authors: Nowak Eric
Published: April 2005

Financial economists continue to point to Germany as a relatively successful model of a “bank‐centered,” as opposed to a market‐based, economy. But few seem to recognize that, in the years leading up to World War I, German equity capital markets were among the most highly developed in the world. Although there are now only about 750 companies listed on German stock exchanges, in 1914 there were almost 1,200 (as compared to only about 600 stocks then listed on the New York Stock Exchange).

Since German reunification in 1990, there have been signs of a possible restoration of the country's equity markets to something like their former prominence. The last 10 years have seen important legal and institutional developments that can be seen as preparing the way for larger and more active German equity markets, together with a more “shareholder‐friendly” corporate governance system. In particular, the 1994 Securities Act, the Corporation Control and Transparency Act passed in 1998, and the just released Takeover Act and Fourth Financial Market Promotion

Act all contain legal reforms that are essential conditions for well functioning equity markets. Such legal and regulatory changes have helped lay the groundwork for more visible and dramatic milestones, such as the Deutsche Telekom IPO in 1996, the opening of the Neuer Market in 1997, and, perhaps most important, the acquisition in 2000 of Mannesmann by Vodafone, the first successful hostile takeover of a German company.
ADDING VALUE FOR SHAREHOLDERS IN SOUTH AFRICA: AN ANALYSIS OF THE REMBRANDT RESTRUCTURING
Authors: Kantor Brian
Published: April 2005

Thanks to a restructuring movement known as “unbundling,” which involves the selling or otherwise splitting off of unrelated businesses, the South African corporate landscape has changed materially from the system dominated by family controlled groups of companies that the author described in this journal six years ago. Holding companies like Anglo‐American, the largest and best known of all the groups, have become more both more focused and more international (in those lines of business they have chosen to retain). At the same time, they have relinquished a good deal of control to outside shareholders.

But if unbundling has succeeded in adding value in some cases, it is by no means a panacea for shareholders. Value is likely to be added for shareholders only when such restructurings are expected to (1) increase the efficiency of existing operations; (2) discontinue value‐destroying investments; or (3) encourage new investment only in projects that are expected to return more than their cost of capital. For this reason, a restructuring like the one recently completed by the Rembrandt group—one that simply divided the company into two major parts while retaining the old managerial control structure—does not hold out much promise for shareholders.

Besides challenging the basic premise of the Rembrandt structuring, the author also questions a common practice among financial analysts: the tendency to view a company that trades at a “discount” to its net asset value as an obvious candidate for unbundling. As currently calculated, the relationship between a holding company's market value and the net asset values of its listed (and unlisted) subsidiaries provides an unreliable indication both of the extent to which management has succeeded in delivering value in the past, and whether an unbundling is likely to increase shareholder value in the future.
STRUCTURING LOAN SYNDICATES: A CASE STUDY OF THE HONG KONG DISNEYLAND PROJECT LOAN
Authors: Esty Benjamin C.
Published: April 2005

The volume of global syndicated loans has increased from $413 billion in 1990 to $2.195 trillion in 2000, making it not only the largest source of corporate funds in the world but also one of the fastest growing. Yet despite the size of this market and its importance as a source of corporate funds, there has been relatively little research on syndicated lending and little understanding of the structuring intricacies underlying these deals.

In this article, the author analyzes the process by which Hongkong International Theme Parks Limited (HKTP), an entity jointly owned by The Walt Disney Company and the Hong Kong Government, raised HK $3.3 billion (approximately US $425 million) in the syndicated loan market to finance part of the construction and operation of its Hong Kong Disneyland theme park and resort complex. Using this case study of the HKTP financing, the article moves beyond the overly simplistic (albeit theoretically tractable) models of debt choice favored by academics and begins to explore the dynamics and consequences of various real‐world debt structures. Rather than focusing on the credit analysis or documentation issues, the author focuses on the structuring and distribution issues because they are both less well understood and provide interesting insights into debt management.
THE CAPITAL STRUCTURE CHOICE: NEW EVIDENCE FOR A DYNAMIC TRADEOFF MODEL
Authors: Hovakimian Armen , Opler Tim , Titman Sheridan
Published: April 2005

Most academic insights about corporate capital structure decisions come from models that focus on the trade‐off between the tax benefits and financial distress costs of debt financing. But empirical tests of corporate capital structure indicate that actual debt ratios are considerably different from those predicted by the models, casting doubt on whether most companies have leverage targets at all. In particular, there is considerable evidence that corporate leverage ratios reflect in large part the tendency of profitable companies to use their excess cash flow to pay down debt, while unprofitable companies build up higher leverage ratios. Such behavior is consistent with a competing theory of capital structure known as the “pecking order” model, in which management's main objectives are to preserve financing flexibility and avoid issuing equity.

The results of the authors' recent study suggest that although past profits are an important predictor of observed debt ratios at any given time, companies nevertheless often make financing and stock repurchase decisions designed to offset the effects of past profitability and move their debt ratios toward their target capital structures. This evidence provides support for a compromise theory called the dynamic tradeoff model, which says that although companies often deviate from their leverage targets, over the longer run they take measures to close the gap between their actual and targeted leverage ratios.
RAISING CONTINGENT CAPITAL: THE CASE OF CEPHALON
Authors: Chacko George , Tufano Peter , Verter Geoffrey
Published: April 2005

In early 1997, Cephalon, Inc., a biotechnology firm, purchased 2.5 million capped call options on its own stock, with a potential value of as much as $45 million, in exchange for $9.8 million worth of its common shares. Cephalon's first major drug, Myotrophin, was under review by the U.S. Food and Drug Administration, and Cephalon's management reasoned that, upon FDA approval, the company's stock would rise in value to reflect the future value of the drug, in which case the call options would pay off and the firm could use the proceeds to help fund commercialization of the drug. The managers thus viewed the call options as a form of “contingent capital,” capital that would be available only if and when the firm needed it.

The availability and cost of financing constitute major uncertainties for any company and perhaps even more so for a biotech firm. But was the options transaction a cost‐effective way to raise capital? The authors' analysis suggests that the cost of the capped calls—underwriting fees, expenses, underpricing, and market impact—was quite high compared to alternative sources of financing that may have been available to Cephalon in the wake of a favorable decision by the FDA. An equally interesting aspect of this case is that the size of Cephalon's funding requirements was determined in large part by accounting rules and management's desire to report higher (non‐cash) earnings.