Planning and financial performance of small,mature firms

This article develops a classification scheme of planning process sophistication in small firms, categorizes small firms according to planning process sophistication, and examines the relationship between planning process sophistication and the financial performance of a select group of small, mature firms. The study overcomes several methodological shortcomings of prior research on strategic planning and firm performance. Multivariate analysis of variance is used to identify statistically significant differences between the financial performance data of firms that employ structured, strategic plans and those that do not. The results confirm previous research on strategic planning and financial performance. Finally, recommendations are made for future research.     

A market oriented approach for turnaround situations

A market oriented approach is necessary for a successful turnaround of a once profitable company or division, now operating at a loss, because the problems to be tackled are often many and varied. It is essential that the executive has a proven framework for handling the situation, as speed is important in any turnaround operation.To eliminate losses is only one part of the task as the objective must be to achieve an adequate return on total funds invested in the medium-term. This is likely to require a reposturing of the company using a business development approach. The remainder of the article outlines the action required to reposture the business following the elimination of losses.     

Consumption and Portfolio Policies With Incomplete Markets and Short-Sale Constraints: the Finite-Dimensional Case1

We use a martingale approach to study optimal intertemporal consumption and portfolio policies in a general discrete-time, discrete-state-space securities market with dynamically incomplete markets and short-sale constraints. We characterize the set of feasible consumption bundles as the budget-feasible set defined by constraints formed using the extreme points of the closure of the set of Arrow-Debreu state prices consistent with no arbitrage, and then establish a relationship between the original problem and a dual minimization problem.     

Testing the addition hypothesis in Vroom's force model

Although Vroom's force model hypothesized that the products of multiplying expectancy E_ij and valence V_j combine additively, no methodologically adequate test of the addition hypothesis has existed. This research reports initial graphic and statistical tests of the validity of the addition hypothesis. Eleven of 22 subjects met both a statistical and graphic criterion for rejection of the addition hypothesis. An alternative hypotheses should be considered by expectancy theorists.