acase@tulane.edu

This study develops an empirical model based on the utility maximizing theory of the firm, which is put into a formal analysis by Williamson (1964). Its purpose is to test the hypothesis that the manager in a privately owned utility firm has an objective to maximize his own utility function instead of the profit of the firm. This utility function is assumed to depend on the profit, administrative expense, and labor and staff of the firm. Results of the test indicate that the manager maximizes his utility function in operating a public utility firm. This utility function is nonhomothetic. It is also found that the marginal utility of profit is much higher than that of administrative expense whereas the marginal utility of labor is zero and, in many cases, is negative. Since the manager is in the range of diminishing marginal utility, this result is consistent with a strict control on public utility profits by the regulatory commission. It implies that a utility firm does not expand its rate base to the full extent in order to earn all of the excess profit. Instead, some operating expenses are also increased to absorb part of it. This study also shows that organizational slack exists in public utilities, which is a necessary condition for such a managerial discretion / acase@tulane.edu

acase@tulane.edu

acase@tulane.edu

Recent research on organizational work teams has proposed collective efficacy as a key determinant of work team effectiveness and has emphasized the need for examining how collective efficacy can be fostered within teams (Lindsley, Thomas, & Brass, 1995). It is theorized that a team leader, through the expression of a motivational leadership style, can foster collective efficacy within a team which, in turn, will lead to effective team performance. The present study investigated team leadership style as an antecedent of collective efficacy. Furthermore, the relationships between collective efficacy, task cohesion, and team outcomes such as profit, team satisfaction, and team viability were examined. Fifty teams, (each consisting of a leader and three team members) from a large federal organization performed a manufacturing simulation task. In order to investigate the impact of team leadership style on collective efficacy, one-half of the team leaders were trained to set high performance goals and expectations, provide positive feedback, and express confidence while they led their teams. The present research proposed that the three leadership behaviors would be positively related to collective efficacy. Furthermore, it was proposed that collective efficacy would be positively related to task cohesion, team satisfaction, and team viability. Collective efficacy was hypothesized to partially mediate the relationships between leadership style and task cohesion, and between leadership style and team performance outcomes (team satisfaction and viability). In addition, task cohesion was purported to mediate the collective efficacy-profit relationship. Results indicated that, as predicted, trained leaders exhibited more of the three leadership behaviors as compared with untrained leaders and that the three leadership behaviors were positively related to collective efficacy. In addition, collective efficacy was positively related to task cohesion, profit, team satisfaction, and team viability. Collective efficacy did prove to partially mediate the relationship between team member ratings of leadership style and the following team outcomes: profit, team satisfaction, and team viability. However, the hypothesized mediating role of task cohesion in the collective efficacy-profit relationship was not supported. Findings are discussed in terms of the implications for practice and future research / acase@tulane.edu

acase@tulane.edu

The endomorphins are endogenous opioids with high affinity and selectivity for the mu opioid receptor (MOR). Endomorphin-1 (Tyr-Pro-Trp-Phe-NH2 ,EM1) and endomorphin-2 (Tyr-Pro-Phe-Phe-NH2, EM2) have been localized to many regions of the central nervous system (CNS) including those that regulate antinociception and reward. Colocalization or overlap of two neurotransmitters in the same regions of the CNS may imply an interaction in the regulation of functions mediated in that region. For example, previous colocalization of EM2 with substance P (SP), calcitonin gene-related peptide (CGRP) and MOR in primary afferents, indicated an interaction of these peptides in pain modulation. We therefore investigated, using immunocytochemical techniques, the colocalization of EM1 and EM2 with various signaling molecules in other areas of the CNS. EM2 was colocalized with SP and CGRP in the nucleus tractus solitarius (NTS), and with SP, CGRP or MOR in the parabrachial nucleus. Thus, EM2, in concert with SP and CGRP, may modulate nociceptive and visceral functions in the NTS and parabrachial nucleus. Several areas in which EM1 or EM2 showed extensive overlap with other signaling molecules, but with no detectable colocalization, are also described EM2-like immunoreactivity (LI) is known to be localized in somatic primary afferents. In a test for its presence in visceral afferents, we found that unilateral removal of the nodose ganglion decreased EM2-LI by 72% in the ipsilateral commissural NTS. CGRP-LI was also decreased in NTS. Thus, EM2-LI is present in visceral afferents terminating in the NTS, some of which may contain CGRP MOR is the major receptor involved in opioid reward, and the brain area most sensitive to MOR agonists for induction of reward behavior is the ventral tegmental area (VTA). Therefore, we examined whether EM1- and EM2-LI cells project to the VTA. A topographically organized projection from the EM1- and EM2-LI cells in the hypothalamus to the VTA was demonstrated. This provides evidence of a novel opioid circuit involved in reward. The findings of this dissertation provide support for the idea that endomorphins are important modulators of pain, autonomic processes and reward / acase@tulane.edu

acase@tulane.edu

acase@tulane.edu

This thesis consists of three empirical essays examining a variety of topics in corporate finance and investments. The first work argues that corporate diversification mitigates credit constraints. The second work examines the effects of dual class recapitalizations. The third essay studies the relationship between financial leverage and stock returns. Each essay is a complete work in and of itself In the first essay, we condition on the business cycle and use models from the monetary policy transmission literature to examine whether focused firms are more credit constrained than diversified rivals due to higher agency costs of borrowing. We find that during recessions, industry-adjusted growth rates in sales drop more for bank-dependent focused firms than for bank-dependent diversified firms. Consistent with a credit constraints explanation, the results do not hold for firms that are not bank-dependent. Overall, bank-dependent focused firms appear to be more credit constrained in recessions The second essay presents several findings that do not support the hypothesis that dual class structures are harmful to shareholders. The 178 firms adopting dual class structures during 1979--1998, on average, earn significant positive abnormal stock returns of 18.17% in a period of 48 months following the announcement month. Furthermore, we find that firms whose managers are more likely to be adopting a second class of stock for control purposes experience an even larger abnormal stock return performance of 41.67%. In addition to examining stock returns, we document significant improvement in the operating performance of the sample firms and provide evidence that dual class structures may be used to mitigate certain underinvestment problems within the firm. The third essay examines the relationship between financial leverage and stock returns. Consistent with the pecking order model, we show a significantly negative contemporaneous relationship between changes in financial leverage and risk-adjusted stock returns. We also find that changes in financial leverage are negatively associated with risk-adjusted future returns. The results suggest that changes in financial leverage may be used as an alternative measure for operating performance. However, the market does not fully incorporate the information embedded in changes in financial leverage / acase@tulane.edu