There is mixed evidence on whether the marginal dollar spent on corporate social responsibilityis due to agency problems. We propose an approach by modeling how the 2003 Dividend Tax Cut, which increased after-tax insider ownership and better aligned managerial and shareholder interests, affected the marginal dollar spent on firm responsibility. We confirm key predictions of our agency model: following the tax cut, moderate insider-ownership firms experience larger declines in their responsibility ratings and increases in their valuations relative to other firms. We also confirm another implication regarding managerial misalignment using a regression-discontinuity design of close votes on shareholder-governance proposals.
Good debt is a type of OPM. By way of reminder, good debt is any debt that puts money in your pocket. By contrast, bad debt takes money out. So, a car loan, for instance, is bad debt. You pay for it each month while the car provides no income and in fact depreciates the minute you drive it off the lot. Good debt, by contrast, would be a loan for an investment property where the rental income pays for the expense of the property, including the debt service, while also providing monthly income.
My real estate advisor, Ken McElroy, has perfected using OPM. His company, MC Companies, buys apartment buildings. He does all the hard work of finding deals, doing the due diligence, negotiating with owners and lenders, and handling management. In return, people line up hoping to invest their money with him.
To fund the deal, Tishman Speyer and BlackRock took on a $3 billion interest-only mortgage plus another $1.4 billion in loans; they drummed up an additional nearly $2 billion from pension funds, foreign governments and other sources.
The scheme in question, according to the Minnesota Alcohol and Gambling Enforcement Division, involves a suburban Minneapolis man, sometimes aided by his brother, live streaming their gambling activities via TikTok.
The suspects allegedly charge a $5.99 subscription fee and an additional $25 for every $100 customers wager on slot machines. The TikTok live stream is to prove to the subscribers they are wagering the money. The wagers and winnings flow in and out through payment apps like Venmo.
If that sounds illegal, you're probably right. It's called proxy gambling, where the proxy charges a service fee to gamble money sent to them by people who then don't need to visit the casino. Although proxy sports betting has been legal for years in Las Vegas, it's generally illegal elsewhere in the U.S. and prohibited by casinos, including the two where the brothers conducted their operation.
Obviously, people sometimes give a trusted friend cash to play in a slot machine for them. Gambling regulators become concerned when proxy casino gambling is systematic, as happened in 2016, when the Nevada Gaming Control Board investigated allegations that Las Vegas Sands Corporation allowed high-stakes Chinese players to bet millions of dollars using other people's names.
One of the reasons why proxy gambling is illegal is that it provides an avenue for money launderers. A spokesman for the American Gaming Association responded to news of the Minnesota investigation by saying that \"actions like this\" violate casinos' protocols against money laundering \"and are a threat to our financial system.\"
One type of quotation which typically circulates quite widely is one that manages to aptly sum up a common political viewpoint with a single simple sentence. An example of such is one statement, attributed to former British prime minister Margaret Thatcher, holding that \"The trouble with Socialism is that eventually you run out of other people's money.\"
A: I would much prefer to bring them down as soon as possible. I think they've made the biggest financial mess that any government's ever made in this country for a very long time, and Socialist governments traditionally do make a financial mess. They always run out of other people's money. It's quite a characteristic of them. They then start to nationalise everything, and people just do not like more and more nationalisation, and they're now trying to control everything by other means. They're progressively reducing the choice available to ordinary people.
We can dispense with the first vice quickly. The ways and means of man are many, but the methods used by some people to separate their brethren from their money are relatively unchanged. They lie, cheat, and steal.
You must also. From the moment you hire your second employee, or your 20th, or your 2,000th, the odds increase that you have employed someone who will resort to bad acts to separate other people from their money.
Conflicts are also interesting and insidious, because we see them at an individual, firm, and industry level. One person, a close group of people, or seemingly everyone in the entire system, can incrementally, over time, through the accretion of justifications, customs, and excuses convince themselves that they are entitled to money and opportunities that fairly belong to their clients.
As the founder of both X Wealth Planning and Expansive CEO, I am on a mission to help visionary entrepreneurs clear out the old stories they carry about money so they can build businesses that will change the world. Money is both logical and emotional, and we have to address both sides of the equation in order to truly transform our relationship with prosperity. Learn more about how I work with entrepreneurs differently than any other financial advisors at X Wealth Planning, and join the movement to become an Expansive CEO!
Finding money for growth is a big challenge for companies trying to scale. Most chief executives use their own money to fund growth, that is, sell a piece of property, borrow from themselves, or reinvest earnings. But if the market opportunity is big or you want to accelerate growth, more money may be needed than you yourself can provide.
The other option is to use \"other people's money\". It may be as simple as going to individuals (friends or family) or a bank, providing a business plan, identifying how much money you need, negotiating the interest rate and discussing a repayment schedule. Depending on your credit history, the size of the loan, and how well the individual or bank knows you, you may have to provide collateral, e.g., security for your loan such as your home, property or a certificate of deposit, and agree to regular reports detailing your progress and use of funds. If you have good character, collateral, a sound business plan, and look like you will be able to pay back the interest and loan, you stand a good chance of getting the money you need.
The advantage of getting a grant is that you don't need to pay it back or give up equity. But you will need a strong business plan that specifies how the funds will be used, and what outcomes you expect to achieve. And remember, this is not \"free money\". It is an investment that the taxpayers in your state or country are making in your company, so work hard to deliver the outcomes you have specified in the grant application.
Rather than outlaying money for capital expenses, you may want to consider vendor financing to secure the capital equipment you need. One company leased a certain number of trucks each year, which they branded, drove for a year or two, and then turned in for new ones. Leasing rather than buying saved them money, helped them manage cash flow, and reduced the downtime associated with break-downs. Likewise, rather than buying or constructing your own building, consider working with a builder to build to your specs in return for signing a long-term lease.
If you have a disruptive idea, your company has high growth potential and a fast-moving market opportunity, you may want to consider equity funding. \"Angel investors\" are people who invest their own money in exchange for a percentage of equity or ownership. Angels are generally the first equity investors and make a \"seed\" investment.
Venture capitalists often invest funds secured from pension, insurance or retirement funds, and come in after the seed round of equity financing. Choose your investors carefully, expect them to want to have a say in major decisions, and remember that each time you sell equity, you dilute your percentage of ownership. On the other hand, a smaller per cent of a company that grows large is better than 100 per cent of a small company that never grows, or grows very slowly. The good news is that if the company fails, then you, the angels and venture capitalists, share the loss, and no one expects you to pay them back for the funds that were invested.
Note that fewer than one per cent of all companies in the US are venture funded, and once you take other people's money in exchange for equity in your company, the clock is ticking. They want their money back, plus a multiple of 3x to 10x, so your company will either need to \"go public\" through an IPO or be sold in a trade sale.
A small number of growth companies, usually those with a disruptive technology, choose to \"go public\" and list on the stock exchange within their country of origin. This enables their shares to be available to a much larger number of people (the general public). In effect, it's a way for a large number of people to \"share the risk\" of funding the continuing growth of the company, and eventually enables the founders to take some money off the table as well. 59ce067264