Exchange rate devaluation,monetary policy and wages: A general equilibrium analysis for Chile

A range of devaluation, monetary and wage policy mixes are analysed for the Chilean economy using a 10 sector comparative static model built along neoclassical lines. The model, while focusing on the real side of the economy, also contains a simple monetary sector. Quantifying the short-run implications of each policy mix for key macroeconomic and sectoral variables enables judgements to be made about the effectiveness of each mix in reaching specified targets and their feasibility. Money wage flexibility downwards is crucial if balance of trade and employment targets are to be achieved with lower domestic inflation and a smaller nominal devaluation.     

Association between independent non-executive directors, family control and financial disclosures in Hong Kong

Our study examines whether comprehensive financial disclosures, used as a proxy for corporate board’s responsiveness, are positively associated with the proportion of independent non-executive directors (INDs) on corporate boards, and whether family control of the firm has an impact on this association. The findings suggest that the ratio of INDs to the total number of directors on corporate boards is positively associated with the comprehensiveness of financial disclosures, and this association appears to be weaker for family controlled firms compared to non-family controlled firms.     

Media allocation model using nonlinear benefit curves

An integral part of planning advertising campaigns involves the selection of those media vehicles that maximize the effectiveness of the advertising effort. This article describes a media allocation model designed to provide the media planner, responsible for a particular advertising campaign, with relevant information for use in selecting the most appropriate media vehicles and in determining the number of insertions in each vehicle. It is based on the derivation of nonlinear benefit curves for candidate media vehicles that can be derived from commercially available response data and from subjective estimates gathered from media planning experts. When tested in an actual advertising campaign, the results serve to provide relevant information that can make the media allocation decision a more objective one.     

Australian tariff preferences for LDCs

In the course of the discussion of the tariff preferences granted by various developed nations to less developed countries (LDCs) it should be noted that it was Australla which first set up a comprising preference scheme. The author of this article outlines the scheme and appraises the Australlan experience.     

Criteria used by venture capitalists to evaluate new venture proposals

A questionnaire was administered to one hundred venture capitalists to determine the most important criteria that they use to decide on funding new ventures. Perhaps the most important finding from the study is direct confirmation of the frequently iterated position taken by the venture capital community that above all it is the quality of the entrepreneur that ultimately determines the funding decision. Five of the top ten most important criteria had to do with the entrepreneur's experience or personality. There is no question that irrespective of the horse (product), horse race (market), or odds (financial criteria), it is the jockey (entrepreneur) who fundamentally determines whether the venture capitalist will place a bet at all.The question is if this is the case, then why is so much emphasis placed on the business plan? In a business plan there is generally little to indicate the characteristics of the entrepreneur—it is generally devoted to a detailed discussion of the product/service, the market, and the competition. To us, the implications are obvious—such content is necessary, but not sufficient. The business plan should also show as clearly as possible that the “jockey is fit to ride” —namely, indicate by whatever feasible and credible means possible that the entrepreneur has staying power, has a track record, can react to risk well, and has familiarity with the target market. Failing this, he or she needs to be able to pull together a team that has such characteristics and show that he or she is capable of leading that team.Factor analysis of the results indicate that venture capitalists appear to assess ventures systematically in terms of six categories of risk to be managed. These are: risk of losing the entire investment: risk of being unable to bail out if necessary; risk of failure to implement the venture idea; competitive risk; risk of management failure; and risk of leadership failure.Finally, three clusters of venture capitalists were identified: those who carefully assess the competitive and implementation risks: those who seek easy bail out; and those who deliberately keep as many options open as possible.