Search results

1 – 10 of over 19000
Article
Publication date: 28 October 2014

Xi-zu Yan and Zhong-min Song

– The purpose of this paper is to establish the portfolio models of contained grey profit under uncertainty, and the results are applied to solve uncertain investment problem.

174

Abstract

Purpose

The purpose of this paper is to establish the portfolio models of contained grey profit under uncertainty, and the results are applied to solve uncertain investment problem.

Design/methodology/approach

In investment problems, uncertainties may exist in model parameters and input data. For the investment problems contained grey profit and incomplete information about natural world state, according to the portfolio theory, the grey systems theory and the uncertainty decision theory, the paper puts forward portfolio models and the methods.

Findings

Traditional uncertainty decision is researched for incomplete information about natural world state, in reality, investment problems are not only uncertain state information, but income are uncertain.

Practical implications

Because the investment problems have been widely used in economic analysis, decision analysis and economic management, examples are provided at the end to verify its feasibility.

Originality/value

The paper successfully combined the portfolio theory, the gray system theory and uncertainty decision theory and new uncertainty investment decision-making models and methods are presented.

Details

Grey Systems: Theory and Application, vol. 4 no. 3
Type: Research Article
ISSN: 2043-9377

Keywords

Article
Publication date: 3 August 2010

Jason Fewell and Cole Gustafson

New federal legislation proposes to reduce greenhouse gas (GHG) emissions associated with biofuel production. To comply, existing corn ethanol plants will have to invest in new…

Abstract

Purpose

New federal legislation proposes to reduce greenhouse gas (GHG) emissions associated with biofuel production. To comply, existing corn ethanol plants will have to invest in new more carbon efficient production technology such as dry fractionation. However, this will be challenging for the industry given the present financial environment of surplus production, recent profit declines, numerous bankruptcies, and lender‐imposed covenants. The purpose of this paper is to examine a dry mill ethanol firm's ability to invest in dry fractionation technology in the face of declining profitability and stringent lender cash flow repayment constraints. Firm level risk aversion also is considered when determining a firm's willingness to invest in dry fractionation technology.

Design /methodology/approach

A Monte Carlo simulation model is constructed to estimate firm profits, cash flows, and changes in equity following new investment in fractionation to determine an optimal investment strategy.

Findings

The addition of a lender‐imposed sweep, whereby a percentage of free cash flow is used to pay off extra debt in high profit years, reduces the firm's ability to build equity and increases bankruptcy risk under investment. However, the sweep increases long‐run equity because total financing costs are reduced with accelerated debt repayment.

Practical implications

Results show that while ethanol firm profits are uncertain, imposition of a lender sweep combined with increased profit from dry fractionation technology helps the firm increase long‐run financial resiliency.

Originality/value

Examination of ethanol plant financial structures and investment capabilities has received scant research attention to date.

Details

Agricultural Finance Review, vol. 70 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 21 August 2008

Shiaw‐Wen Tien, Ting‐Ting Chang, Yi‐Chan Chung, Ching‐Piao Chen and Chih‐Hung Tsai

The 21st century is a new century of environmental protection. Environmental protection is one of the most important subject matters yet to come. Moreover, as the public pays more…

Abstract

The 21st century is a new century of environmental protection. Environmental protection is one of the most important subject matters yet to come. Moreover, as the public pays more attention to environmental problems, enterprises should increase their investment in environmental management. Therefore, determining the investment level for environmental management and allocating the investment to associated environmental management activities has become a major task. The principal and agent theory and sales response functions are used for analysis in this research. The allocation of capital investment in environmental management is found to have significant impact on the aggregate sales response, aggregate profit and investment level. Therefore, in preparing the budget for environmental management, enterprises should focus on investment allocation decisions, determine the investment level and allocation method using integrated means, and apply submarket data in the allocation decision‐making process. In other words, in setting the investment level, executive management should take managers’ willingness into consideration. In allocating capital investment, managers should identify the optimal allocation method based on submarket characteristics.

Details

Asian Journal on Quality, vol. 9 no. 2
Type: Research Article
ISSN: 1598-2688

Keywords

Book part
Publication date: 16 December 2009

Subal C. Kumbhakar and Efthymios G. Tsionas

This paper deals with estimation of risk and the risk preference function when producers face uncertainties in production (usually labeled as production risk) and output price…

Abstract

This paper deals with estimation of risk and the risk preference function when producers face uncertainties in production (usually labeled as production risk) and output price. These uncertainties are modeled in the context of production theory where the objective of the producers is to maximize expected utility of normalized anticipated profit. Models are proposed to estimate risk preference of individual producers under (i) only production risk, (ii) only price risk, (iii) both production and price risks, (iv) production risk with technical inefficiency, (v) price risk with technical inefficiency, and (vi) both production and price risks with technical inefficiency. We discuss estimation of the production function, the output risk function, and the risk preference functions in some of these cases. Norwegian salmon farming data is used for an empirical application of some of the proposed models. We find that salmon farmers are, in general, risk averse. Labor is found to be risk decreasing while capital and feed are found to be risk increasing.

Details

Nonparametric Econometric Methods
Type: Book
ISBN: 978-1-84950-624-3

Book part
Publication date: 23 November 2020

Pablo Adrian Garlati-Bertoldi

I evaluate how the tax reform of 2012 reduced informality in Colombia both theoretically and empirically. Theoretically, I develop a labor market model and obtain simulations…

Abstract

I evaluate how the tax reform of 2012 reduced informality in Colombia both theoretically and empirically. Theoretically, I develop a labor market model and obtain simulations indicating that the reform should reduce informality significantly. Empirically, I obtain difference-in-difference estimates from two household surveys. Estimates from the repeated cross-sections data indicate small, short-term effects and large long-term effects. Estimates from the household survey panel data are in line with these results. I also simulate difference-in-difference estimates with different combinations of changes in payroll taxes and enforcement indicating that large improvements would have been needed to obtain the corresponding econometric estimates.

Details

Change at Home, in the Labor Market, and On the Job
Type: Book
ISBN: 978-1-83909-933-5

Keywords

Case study
Publication date: 1 December 2009

Stuart Rosenberg

Josh Brochhausen and Adam Podrat, as partners in The Resource, wrote commercial music for the ads of several companies. They were innovators in the recording studio, and their…

Abstract

Josh Brochhausen and Adam Podrat, as partners in The Resource, wrote commercial music for the ads of several companies. They were innovators in the recording studio, and their music appealed to young consumers.

Josh and Adam also had become involved in producing records for hip hop artists. They undertook a project called Deaf in the Family, which was a full length album featuring artists from the hip hop underground. The record was well received among music critics from the underground press, but the project made no money because Josh and Adam did not have the financing to secure the appropriate clearances for the right to use samples from existing songs.

Their problem centered on the uncertainty of financial success in producing hip hop records, which was their passion, and deciding whether to devote energy and resources toward it, and away from making commercial music, which was their livelihood.

Details

The CASE Journal, vol. 6 no. 1
Type: Case Study
ISSN: 1544-9106

Article
Publication date: 27 August 2019

Xiaofeng Shi, Lixun Su and Annie Peng Cui

This study aims to fill three theoretical gaps in previous literature on exploration and exploitation: the relationship between exploration and exploitation is inconclusive; the…

1035

Abstract

Purpose

This study aims to fill three theoretical gaps in previous literature on exploration and exploitation: the relationship between exploration and exploitation is inconclusive; the influences of exploration and exploitation on firm performance are not consistent; and no empirical studies have integrated the antecedents of exploration and exploitation from the different research fields.

Design/methodology/approach

The study conducted a meta-analysis to quantitatively synthesize 143 studies with 257 independent samples to understand the relationship between exploration and exploitation and their consequences and antecedents.

Findings

The results show that exploration and exploitation are positively correlated with each other, and both of them can boost firm performance. Moreover, firm capabilities, firm size, firm age, competitive intensity, market orientation and entrepreneurial orientation positively influence exploration, and firm resources, firm capabilities, firm size, firm age, market orientation and entrepreneurial orientation positively influence exploitation. Competitive intensity negatively influences exploitation. Surprisingly, market turbulence does not significantly influence exploration or exploitation.

Originality/value

The results not only contribute to the theories by reconciling the inconsistent results but also provide insight for firms with guidance about under what conditions they should use what strategies.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 February 1985

JAN KENNEDY and ROBERT W. STONE

There are currently two identical bills pending in Congress (House Resolution 4730 and Senate Bill 2148) which this research will examine. Title I of these bills would establish a…

Abstract

There are currently two identical bills pending in Congress (House Resolution 4730 and Senate Bill 2148) which this research will examine. Title I of these bills would establish a reforestation and conservation program entitled the Conservation Reserve Program. The Secretary of Agriculture would be able to designate land regularly used in the production of certain crops as eligible for program participation. If a landowner of farmer places the‐designated land in the program it must be planted in a “shelter belt,” which is an area of vegetative cover. Shelter belts can be divided for simplicity into two types, grassland and tree.

Details

Studies in Economics and Finance, vol. 9 no. 2
Type: Research Article
ISSN: 1086-7376

Article
Publication date: 25 March 2024

Morten Jakobsen

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of…

Abstract

Purpose

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of economic performance for decision-making.

Design/methodology/approach

The paper is based on qualitative semi-structured interviews with local business actors, in this case, families from seven financially successful Danish dairy farms. The casework and the analysis have been informed by pragmatic constructivism.

Findings

The local business actors do not use the official accounting system for ongoing cost-management-related decision-making. Instead, they use several epistemic methods that include locally developed decision models, experiences, rules of thumb and intuition. The farmers use these vernacular accountings to compensate for the cost management illusion that the formal accounting system tends to create. What the study suggests is that when management accountants engage as business partners, they are likely to enter a space where accounting is already present.

Originality/value

This paper argues that local business actors practice epistemic methods where they develop and use vernacular accountings to support their managerial practice, also in the absence of a professional management accountant. These vernacular accountings may lead the local actors into an illusion because the vernacular accountings do not necessarily have an inherent economic logic and theoretical reliability. The role of the management accountant in such a setting is hence to understand, support and advance local epistemic methods. Becoming a business partner requires a combination of management accounting analytical skills and a sense of empathy and sensitivity regarding what is already at play and how this can become an object of discussion without violating the values of the other.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 16 January 2023

Syed Alamdar Ali Shah, Bayu Arie Fianto, Batool Imtiaz, Raditya Sukmana and Rafiatul Adlin Hj Mohd Ruslan

The purpose of this paper is to perform Shariah review of Brownian motion that is used for prediction of Islamic stock prices and their volatility.

Abstract

Purpose

The purpose of this paper is to perform Shariah review of Brownian motion that is used for prediction of Islamic stock prices and their volatility.

Design/methodology/approach

It uses the Shariah compliant development model guidelines to review the Brownian motion and its applications.

Findings

The model of Brownian motion does not involve any variable that renders it non-Shariah compliant; neither all applications of Brownian motion are Shariah compliant. Because the model is based on stochastic properties that involve randomness, therefore the issue of gharar takes the utmost important to handle in the applications of the model. The results need to be analyzed strictly in accordance with the Shariah whether they create any element of gharar or uncertainty in case of expected price and volatility estimates.

Research limitations/implications

The research suffers from the limitation that it analyses only one model of physics, i.e. Brownian motion model from Shariah perspective.

Practical implications

The research opens an area for Shariah analysis of results generated from the application of advanced models of physics on matters related to Islamic financial markets.

Originality/value

The originality of this study stems from the fact that to the best of the authors’ knowledge, it is the first study that extends Shariah guidelines into Financial physics for making the foundations of Islamic econophysics.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

1 – 10 of over 19000