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The purpose of the chapter is to model the process of decision-making on selection of a certain process depending on the investing strategy.

The work includes consideration of the project on the basis of a simplified simulation model. Modeling is performed by the Monte Carlo method. Criteria of evaluation of the investment project are net investment value and profitability index.

The authors model the process of decision-making by the example of analysis of an investment project. The process is implemented on the basis of the simulation model in the Mathcad program. Three cases of investing are considered: constant, change by linear law, and changed by non-linear law. Criteria of evaluation of investment project are selected, and risks are determined. The corresponding conclusions are made.

The performed research is of the applied value and could be used for modeling real business processes at a company.

The chapter studies the problems of formation of regional mechanisms of modernization and development of infrastructure of regions and the country, which are determined by complexity of attracting private capital in financing of infrastructure, which is limited by a long return period and the level of profitability of projects. The mechanism of public–private partnership is offered, which allows leveling high risks of implementation of infrastructural projects under guidance of the state. Also, the methodology of foresight control is studied, which is the last stage of modernization and development of infrastructure of regions and the country, as innovational tools of forecasting the future, which is aimed at leveling the risks, allows determining and neutralizing the danger of nontarget usage of invested financial resources, and seeing the threats to internal environment and external environment.

It is well recognized that Mergers and Acquisitions (M&A) are important and popular ways of achieving corporate growth. Motivations include a search for monopolistic power and growth, desire to respond to a low level of profitability in the existing business portfolio, improvement of market position, filling out product line, protection of supply or distribution, gain of control, acquire what is available, to internationalize, or to reduce risk. However, M&A strategies are not risk-free, and arguably one of the CEOs greatest challenges. The last several decades have witnessed a surge of interest in top executives. The strategic choice ranks as one of the dominant roles and responsibilities of senior management. Executives’ experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices (Hambrick, 2007).

Over the past few years, sad stories of M&A failures have been reported and that can be attributed to poor synergy, bad timing, cultural issues, hubris, complexity, and ineffective strategic control mechanisms including poor due diligence process. M&A strategies require a series of choices made over time by actors at various organizational levels; therefore, it cannot be seen as an independent activity but as an integral part of the formal rational procedure as well as the cognitive process. Strategic cognition plays a very important role in the diagnosis of strategic issues and the formulation of problems (Schwenk, 1988). Pre-decision control mechanisms permeate all levels of strategic investments process to ensure that the investment decision aligns with organizational strategy (Alkaraan & Northcott, 2007). Due diligence processes are comprehensive appraisal of strategic investment opportunities undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential. Due diligence processes refer to verification, investigation, or audit of a potential deal or investment opportunity to confirm all facts, financial information, and to verify anything else that was brought up during an M&A deal or investment process.

This chapter explores the influence of due diligence processes on strategic investment decision-making (SIDM) processes. Further, it provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Furthermore, the chapter adopts a strategic perspective on M&A, particular attention has been paid to the influence of due diligence and other related strategic control mechanisms on SIDM processes.

Latin American financial executives are emerging as strategic planners. In this chapter some linkages between strategy and finance in the case of Latin American corporations are shown to guide decision-makers in gaining insights when applying recognized methods of capital budgeting. Results of a survey of corporate executives shed light on the criteria used in corporations of the region to evaluate investment projects, make capital budgeting decisions, consider adjustments needed, and make an appraisal of the overall interaction of factors related to strategic capital budgeting.

During recent years, financial economists have made a significant contribution to the rapid development of a vibrant and growing literature on organization structure and corporate governance. In reviewing the development of this literature, it becomes easy to see how the seminal contributions of Ronald Coase (awarded the Nobel Prize in Economics in 1991) have become the cornerstone of a new institutional economics. In particular, researchers following in Coase’s footsteps have clarified the conditions under which voluntary contracts between private agents can resolve a wide variety of so-called “agency problems.” More than just representing an important discovery of the significance of transaction costs and property rights for the institutional structure and functioning of the economy, Coase’s work has become an important foundation for the theory of contracts and for the whole field of “organization economics.”

The purpose of this chapter is to identify African financial management practices, highlight their origin and explain how they differ from their Western counterparts. The study identified indigenous African financial practices using literature review, archival sources and library research covering the five areas of Africa comprising Northern Africa, Eastern Africa, Central Africa Western Africa and Southern Africa. The study found out that pre-colonial indigenous African financial management features prevalent use of trade finance, trade credit management, investment management and accounting. While there is also evidence of modification of Western financial management practices to suit African contexts, it is on the whole scarce. This is suggestive of the fact that they were in existence in the first instance. The clear conclusion is that many indigenous African financial management practices pre-dated and foreshadowed their Western counterparts. Yet, it is confounding that this has been largely lost sight of, and both scholars and financial management practitioners depict the former as inferior. There is clearly a need to remedy this situation. Educators need to focus on incorporating ethno-finance concepts into the entire curricula chain from basic to higher education. The anchor point for such curricula is Ubuntu philosophy. Financial management practitioners, on their part, need to shed notions that the indigenous practices are inferior and seek to journalise their day-to-day work experiences to build a body of documented practice.

This chapter tests theoretically and empirically the existence of a stable relationship between energy consumption and CO2 emissions. Based on microeconomics and physics, a model has been specified and applied to annual data for twenty countries, which representing 61 percent of the world’s population in 2018, over the period 1995–2015. The data are from the International Energy Agency (2019) and econometric techniques including panel data and causality tests have been used. The results indicate that there is a causal relationship between energy consumption and CO2 emissions. In general, consumers cannot directly change emissions caused by production processes, but they can act on emissions caused by their own domestic energy consumption. Approximately three quarters of domestic energy consumption is due to heating and domestic hot water consumption. Taking into account the lower emissions and the lower economic cost of the initial investment, four potential energy systems have been selected for use in heating and domestic hot water. Their social returns have been assessed across nine of the twenty countries in the sample over a lifecycle of 25 years from 2018: France, Portugal, Ireland, Spain, Iceland, Germany, United Kingdom, Morocco and the United States. Cost-benefit analysis techniques have been used for this purpose and the results indicate that the use of thermal water, where applicable, is the most socially profitable system among the proposed systems, followed by natural gas. The least socially profitable systems are those using electricity.

Recent US federal court rulings have provided new guidance on the use of economic models of bargaining in estimating reasonable royalty damages in patent cases. After reviewing relevant case law and providing an overview of the bargaining range approach, we describe one analytic method (the Rubinstein Bargaining Model) for developing a quantitative starting point with which to divide a bargaining range and explain how it can be tied, at least in part, to the facts and circumstances of the parties around the time of the Hypothetical Negotiation. We also describe how this approach can be used in conjunction with an analysis of other quantitative and qualitative factors related to the bargaining power of the parties, to help estimate reasonable royalty damages.