Financing of Investment in Eastern Europe: A Theoretical Perspective

Eastern Europe suffers from a worsening capital shortage problem.This paper studies ways to find the needed funds. It is arguedthat firms need funds in order to transform illiquid ideas intoliquid claims, possibly through a chain of intermediaries. Itshows that collateral (proven assets) plays the central rolein increasing liquidity of liabilities and determining the firm'scapacity to fund investments. A model is offered to illustratehow firm growth is limited by the net worth of its marketableassets. The analysis is extended to specialized assets for whichthe liquidation value is less than the ongoing value. The importantsecond variation of intermediation is also examined. A key featureof the intermediation model is that intermediaries themselvesare constrained by their net worth. Some lessons are then drawnregarding the status and future of financing in Eastern Europe.The intermediation model suggests that granted the scarcityof capital, financing of investments will have to be more information-intensive:intermediaries will have to take a more active role in monitoringfirms. Capital formation is likely to be a slow process, sincethe capital base is so small. Private investments will be gearedtowards smaller, safer and shorter-term projects. The logicof liquidity-constrained growth argues for letting small firmscarry the brunt of the responsibility for future prosperityin Eastern Europe.     

Political Schemas and Corporate Political Activities During Foreign Market Entry: A Micro-process Perspective

The paper analyses how multinational enterprises (MNEs) manage their interactions with host governments during the market entry process. A qualitative multiple case study collected data through in-depth interviews with multiple participants in six New Zealand MNEs. The analysis identifies two distinct political schemas which represent MNE managers’ assumptions and heuristics regarding how to approach interactions with foreign governments, systematic and episodic, which lead to the enactment of distinct patterns of political activities, each supported by certain political resources and capabilities. We then identify several sources of the variations in these two political schemas at the managerial, firm, industry, and country levels of analysis. Our study deepens understanding of the micro-processes of corporate political activity (CPA) and the processes and activities through which political resources and capabilities are developed, deployed and leveraged by MNE actors in managing their interactions with host governments during the market entry process. In doing so, we highlight the role of international experience in influencing the process of political capability development, and also the role of managerial actions in shaping this evolutionary process.     

Relationship with Headquarters and Divestments of Foreign Subsidiaries: The Hysteresis Perspective

This paper examines the conditions under which foreign subsidiaries of multinational corporations (MNCs) are less prone to divestments. In the study, we examine the importance of foreign subsidiaries to MNCs based upon (1) product-level vertical integration, (2) human capital investments, and (3) technological investments in the subsidiaries. Given that we examine the probability that a subsidiary divestment will occur under the condition that all other subsidiaries are also at risk during the same time period, we employ a Cox proportional hazard rate model as a commonly used statistical method in the event history analysis. For empirical testing, we utilized a sample of Korean 439 MNCs and its 5306 foreign subsidiaries over a period of 1990–2011. We find that even under hostile host market demand conditions, MNCs are less likely to divest their foreign subsidiaries when those subsidiaries are vertically integrated with their headquarters, benefiting from a top management team dispatched from their headquarters or other affiliates, or possessing technological knowledge shared by their headquarters. These findings imply that relationship-specific investments with headquarters cause a hysteresis effect that deters these subsidiaries from being divested, even during times when divestments seem most likely because of unfriendly economic conditions in their host countries.     

Initial Capital Requirement and Risk Aversion in Investment Behavior

This paper explores the role of initial investment amount in the evaluation of investment opportunities. A new “Capital Integration Hypothesis” which takes into account the initial investment amount is introduced, and the family of utility functions it engenders are discussed. Initial investment risk aversion is defined as the behavior implied by certain of these functions, and it is shown that a quadratic utility function falls into this class.

     

基于蒙特卡罗模拟模型的投资项目风险分析

运用蒙特卡罗模拟模型和程序,结合实际工程项目,分析评估了项目的主要风险因素,借助EXCEL软件对项目风险进行了模拟和测试,给出了项目风险模拟的结果.由结果可以看出,项目总体上有较高的抗风险能力,并且能够达到预期的投资收益目标.同时,项目风险评估中的蒙特卡罗模拟方法占用的资源少、操作性强,对于项目风险评估是有用的.     

BOPP，新一轮的投资热潮

机械供应商更希望看到一个平稳的市场，但是中国的BOPP一直呈现波浪型发展，2007年，中国市场上预计上线数在18条-20条。目前阶段，中国市场上的新线都是厚度18μm-20μm，宽度8m的高速生产线。而事实证明，中国厚膜由于加工简单，更受企业的推崇。厚膜的利润空间小但产量大，因此可以获得与薄膜相当的利润。 过去的几年内由于产能过剩，20%的薄膜都销往国外市场，BOPP市场的再度兴盛极大地鼓舞了中国的BOPP生产企业。良好的利润空间使得企业更偏重于产品本土的销售。     

外资项目总承包管理及投标实践

1　外资项目工程总承包模式投资的外商一般不拥有建设方面的专业人才 ,加上对中国的建设市场缺乏了解 ,为节省公司的运营成本 ,外商愿意采用总承包的方式实施对工程的全过程管理。外商采用的总承包方式工作范围较广 ,一般有以下七个阶段的工作 :土地购买、设计、报建、招标、施     

Product Complementarities, Capabilities and Governance: A Dynamic Transaction Cost Perspective

The organization and governance of the transactions that comprisea bundling arrangement depend on the distribution of capabilitiesamong firms and the amount of time during which the window ofopportunity for earning rents is expected to remain open. Firmsengaged in inter-firm collaboration must undertake ‘support’transactions related to billing, marketing, customer supportand product repair. These support transactions differ from the‘core’ transactions that have traditionally beenperceived as sufficient to provide a product bundle. Since supporttransactions create costs of their own, the market may turnout to be an expensive means of governing collaborative arrangementsundertaken for bundling purposes. The telecommunications servicesector provides an illustration.     

Project Governance,Project Performance,and the Mediating Role of Project Quality and Project Management Risk: An Agency Theory Perspective

Abstract

Although project governance has garnered the attention of academicians, the area remains underdeveloped. This study measures the influence of project governance on project performance directly as well as through the mediation of project management risk and project quality and with moderation of project leadership. The survey yielded 354 responses from 132 Pakistani software firms, while SEM was applied using AMOS-21 for data analysis. This study finds that project governance has a significant positive influence on project performance directly and through mediation, whereas the moderation is insignificant. The findings will help not only Pakistan’s software firms but also those in developing countries to improve their projects’ performance through effective project governance.