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Article

P. Olivier, A. van der Merwe and I. DuRand

Scrip dividend schemes provide shareholders with the option to choose shares instead of a cash dividend. Scrip dividends became popular in South Africa after the…

Abstract

Scrip dividend schemes provide shareholders with the option to choose shares instead of a cash dividend. Scrip dividends became popular in South Africa after the introduction of Secondary Tax on Companies (STC) in 1993. Thus far, no guidance on the recognition, measurement or disclosure of scrip dividends has been issued by the South African Institute of Chartered Accountants (SAICA). This article proposes disclosure regarding scrip dividend schemes that will provide relevant information to the users of financial statements. The proposed disclosure is based on the assumption that entities recognise and measure scrip dividends in accordance with the re‐investment method, as opposed to the capitalisation issue method.

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Expert briefing

The island is on track to start receiving early this year the 'stability contribution' that creditors of its three large failed banks have agreed to pay in return for…

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Article

Richard John Fairchild

Lintner’s (1956) survey revealed that managers are concerned about dividend signalling over time, and adopt a smoothing policy. In addition to signalling, dividend policy…

Abstract

Lintner’s (1956) survey revealed that managers are concerned about dividend signalling over time, and adopt a smoothing policy. In addition to signalling, dividend policy may affect a firm’s re‐investment opportunities, particularly if it is capital constrained. In this paper, we examine the interaction between dividend smoothing/signalling and optimal re‐investment. We develop a dividend policy model that considers both an optimal level of dividends (and re‐investment) at each point in time, and optimal smoothing over time. Our model provides both theoretical insights, and provides a practical management tool for dividend policy.

Details

Managerial Finance, vol. 29 no. 11
Type: Research Article
ISSN: 0307-4358

Keywords

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Article

Bo Nordlund

The purpose of the article is to discuss how the demand for disclosure regarding property valuation in financial reports can be fulfilled.

Abstract

Purpose

The purpose of the article is to discuss how the demand for disclosure regarding property valuation in financial reports can be fulfilled.

Design/methodology/approach

The starting point is the generally established methods for property valuation and the different types of data that they need. From this it is deduced what kind of information that it is necessary to supply.

Findings

An important conclusion from the research reported in this paper is that disclosure regarding applied methods, significant assumptions in property valuations and statements about the connections between appraised values and market evidence needs refinement in financial reports, according to International Financial Reporting Standards (IFRS). As the uncertainty in property valuations cannot be removed, it has to be managed. Providing explicit disclosure about valuations is one important way to manage this issue by reducing the gap of information asymmetry between those who perform valuations and those who are users of financial statements.

Practical implications

Providing high quality disclosure on these issues would make analysis and the application of individual judgement by users of financial reports far easier. Findings reported in this paper imply that many companies have not so far found the right balance between cost and benefits regarding what amount of disclosure would be appropriate on this issue in financial reports.

Originality/value

The detailed discussion about what information that should be disclosed concerning property valuation is an original contribution of the paper.

Details

Journal of Property Investment & Finance, vol. 28 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

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Article

MARTIN NEWELL

Papers by Wyatt (Wyatt, 1984) and Hall (Hall, 1985) have addressed the subject of property performance measurement in this journal, and the topicality of the subject has…

Abstract

Papers by Wyatt (Wyatt, 1984) and Hall (Hall, 1985) have addressed the subject of property performance measurement in this journal, and the topicality of the subject has been ensured by the response to Hager and Lord's paper to the Institute of Actuaries (see Editorial, Journal of Valuation, 3: and Brown, 1985). However, the measure employed has not been the subject of detailed analysis, and at various times the time weighted rate of return, the money weighted rate of return, the internal rate of return and others have been suggested as the appropriate measure. It is not even clear whether MWRR and IRR are identical measures. This paper examines alternative measures and demonstrates the difference between MWRR and IRR and makes recommendations of the correct measure.

Details

Journal of Valuation, vol. 4 no. 2
Type: Research Article
ISSN: 0263-7480

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Article

R.G.B. Fyffe

This book is a policy proposal aimed at the democratic left. It is concerned with gradual but radical reform of the socio‐economic system. An integrated policy of…

Abstract

This book is a policy proposal aimed at the democratic left. It is concerned with gradual but radical reform of the socio‐economic system. An integrated policy of industrial and economic democracy, which centres around the establishment of a new sector of employee‐controlled enterprises, is presented. The proposal would retain the mix‐ed economy, but transform it into a much better “mixture”, with increased employee‐power in all sectors. While there is much of enduring value in our liberal western way of life, gross inequalities of wealth and power persist in our society.

Details

International Journal of Sociology and Social Policy, vol. 3 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

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Article

Alan F. Fox

Following six years consideration of the problem, and the production of at least two widely circulated early versions of the proposed exposure draft, the ASC formally…

Abstract

Following six years consideration of the problem, and the production of at least two widely circulated early versions of the proposed exposure draft, the ASC formally published ED 29 in October 1981. ED 29 deals with accounting for leases, but excludes contentious lease contracts concerning rights to explore for or to exploit natural resources and similarly it does not cover licencing agreements for films, patents, copyrights etc. The exposure draft requires capitalisation of finance lease contracts in the accounts of lessees, is broadly consistent with the American, Canadian and International standards and compatible with, but more restrictive than, the Australian exposure draft (which permits, but does not require, capitalisation). In spite of the gestation period, the prior consultation with interested parties and the restricted coverage of the ED, its proposals are controversial and have provoked reaction from both lessors and lessees in the UK. Lease accounting, clearly, is not a simple matter. Indeed leasing arrangements raise many questions which encompass fundamental conceptual issues in accounting and finance. Any resolution of these issues, such as ED 29, in turn gives rise to problems of application.

Details

Managerial Finance, vol. 9 no. 2
Type: Research Article
ISSN: 0307-4358

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Article

Aikaterini Papapostolou, Charikleia Karakosta, Vangelis Marinakis and Alexandros Flamos

The Renewable Energy Directive 2009/28/EC of the European Union provides another element to cross-border cooperation by allowing Member States to fulfill their 2020…

Abstract

Purpose

The Renewable Energy Directive 2009/28/EC of the European Union provides another element to cross-border cooperation by allowing Member States to fulfill their 2020 renewable energy sources (RES) targets by implementing joint projects in third countries through the cooperation mechanisms. The purpose of this paper is to assess the country risk, to support bilateral cooperation for RES electricity generation projects.

Design/methodology/approach

A multicriteria decision support methodology has been developed taking into account three evaluation parameters, namely, the investment framework, the social conditions and the energy and technological status. An additive value model has been constructed, and the UTilitès Additives (UTA) – UTA* (UTASTAR) disaggregation method has been implemented to infer the criteria weights. The obtained ranking of alternatives has been subjected to robustness analysis, and finally the proposed methodology has been applied to five North Africa countries, so as to draw key results.

Findings

The pilot application of the methodological approach proposed and the model developed was fully compatible with the decision maker’s ranking on a set of fictitious countries and facilitated the assessment of a country’s current situation with regards to its investment, social conditions and energy and technological status. The results regarding the five North African countries examined, indicated the country’s investment framework as the most important factor, from foreign investors’ perspective, affecting a country’s suitability for the implementation of RES projects through a cooperation mechanism and Morocco, as well as Tunisia as the countries with the most suitable conditions for a successful implementation of such projects.

Originality/value

To the best of authors’ knowledge, there are only very few studies trying to assess opportunities and risks emerging from the implementation of joint projects between European and third countries in the field of electricity generation from RES. There are even less studies using (UTASTAR) method on real-world decision-making problems, and almost none are dedicated to energy sector-related problems.

Details

International Journal of Energy Sector Management, vol. 10 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

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Article

Yara El Siwi

This paper aims to look at the case of Italy, which clearly stands out in its relationship with organised crime. The recognition that money is the “lifeblood” of OC has…

Abstract

Purpose

This paper aims to look at the case of Italy, which clearly stands out in its relationship with organised crime. The recognition that money is the “lifeblood” of OC has resulted in the implementation of what we can refer to as the anti-money laundering (AML) regime, which backs the systematic targeting of mafia assets and the application of severe obstacles to the concealment of dirty money through increased financial surveillance. This paper discusses the financialisation of counter-mafia strategies, with the purpose of questioning the extent to which this system has been delivering what it promised.

Design/methodology/approach

The paper is divided into three chapters. The first chapter looks at the relationship between Italian mafia and dirty money. The second chapter discusses the rationale and pillars of the AML regime. Finally, the last section examines and discusses recent evidence of the outcome of AML policies, by looking at figures as reported by relevant entities, such as the Financial Intelligence Unit (FIU), Europol, the Italian Ministry of Interior and the Direzione Investigativa Anti-Mafia (DIA).

Findings

Evidence suggests that financial surveillance, the first pillar of the AML regime, is much costlier than it is beneficial to society. Reporting of suspicions has rocketed in the past years, bringing very little change to yearly ML convictions, and being only marginally helpful in mafia-related investigations, confiscations and arrests. The confiscation of assets from mafia members, i.e. the second pillar of the AML regime, has proven to be effective in gaining control over large sums and goods. However, more research is needed around the question of confiscated asset-management and desirable re-investment opportunities.

Originality/value

As the AML regime gains in prominence internationally, it is of great value to assess its achievements so far. This is especially true of a country like Italy, which suffers from a long-standing mafia dominance. This paper represents a modest initial inquiry, which will hopefully be complemented by future research to come to an in-depth understanding of the value and limitations of an AML regime in fighting OC.

Details

Journal of Money Laundering Control, vol. 21 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

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Article

Constance Gikonyo

The purpose of this paper is to consider the applicability and challenges of using asset forfeiture mechanisms in taking away the illicit gains of Somali piracy for ransoms.

Abstract

Purpose

The purpose of this paper is to consider the applicability and challenges of using asset forfeiture mechanisms in taking away the illicit gains of Somali piracy for ransoms.

Design/methodology/approach

The paper presents a desk research on the issue. It is based on analysis of the key principles in the area and relevant literature on the subject.

Findings

Asset forfeiture mechanisms can be used to facilitate the seizure of Somali piracy proceeds. It is applicable to those who directly or indirectly benefited from piracy: the foot soldiers, financiers and other beneficiaries. This would enable withdrawal of piracy re-investment capital and hence may act as a disincentive for current and prospective offenders.

Research limitations/implications

For the initiative to work, various states and other actors need to cooperate. However, incentives such as corruption, the personal interests of individuals and states that have benefited from Somali piracy, may make them unwilling to collaborate. This would definitely hinder the implementation and effectiveness of using asset forfeiture.

Originality/value

Much of the literature on Somali piracy for ransoms has focussed on maritime solutions. Further, authors and organisations have advocated for following the money trail. As a result, consideration of the benefits and challenges of doing so needs to be done. This paper seeks to fill this gap.

Details

Journal of Money Laundering Control, vol. 21 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

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