This paper presents an empirical investigation of the importance of specialized assets and other unique characteristics of a firm in explaining the variance in capital structure across firms. The results show thatfirm-spec@c effects contribute most to the variance in leverage, suggesting a strong link between strategy and capital structure. capital structure choice', Journal of Finance, 43, Turk, T. A. arid R. E. Hoskisson. 'The strategic implications of capital structure decisions'
A growing proportion of corporate restructuring is in the form of leveraged management buyouts (LBOs). but this activity is controversial, and critics have said that it involves ethical problems and redistributional issues. This article uses the existing theoretical and empirical literature to suggest research questions about why LBOs occur and what will be their likely consequences. Either voluntarily as mergers and selloffs or involuntarily through hostile takeovers, a massive wave of corporate restructuring took place in the United States in the 1980s (Hoskisson & Turk, 199(3). Often consisting of business liquidations in multidivisional companies, it involved major changes in corporate assets along with major changes in corporate strategy. Restructuring, sometimes involving divestiture of assets, also followed leveraged management buyouts (LBOs). In 1987, about one third of U.S. takeover activity was in the form of LBOs (Hall, 1989
This paper describes the recent real-world demonstration of a gas-fueled power generation system for drill rigs which utilizes automation, energy storage, and integrated electronic controls to achieve excellent performance and efficiency. Land drilling rigs are typically powered by a set of diesel-fueled generator sets, but natural gas has been an attractive alternative fuel due to lower fuel cost and lower emissions. Lean-burn natural gas generator sets have traditionally not had the transient response required to accept the large load changes imposed by the drawworks motors on a drill rig while maintaining a steady bus frequency, unless combined with energy storage or resistive load banks, while rich-burn generator sets for drilling have been large and inefficient. In this demonstration, a set of high-performance lean-burn natural gas generator sets with superb transient response were combined with an energy storage system to mitigate the effects of transient load demand and showed excellent performance in real-world drilling situations over a period of more than 6 months. Furthermore, an automated supervisory control system was implemented which automated the starting and stopping of generator sets to achieve efficient operation and simultaneously provide a long life of the batteries in the energy storage system. Fuel savings have been calculated based on observed performance of the subject rig compared to simulated performance with a diesel power generation system under the same conditions, and by comparison of the subject rig to neighboring rigs. The integrated automatic control system reduced fuel usage by 13% and engine operating hours by 30% compared to running the same natural gas generator sets and energy storage without automation nor frequent manual interventions. Fuel savings compared to a conventional diesel-powered drill rig were estimated to be 612,500 gallons of diesel per year based on the observed operating loads.
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