Capital investment practices: A survey of large corporations in Malaysia,Singapore and Hong Kong

This paper presents the results of a survey on the capital investment practices of large corporations in Malaysia, Singapore and Hong Kong. Our findings are fairly consistent with those from similar U.S. surveys. However, Malaysia, Singapore and Hong Kong companies seem to use multiple techniques, both simple and sophisticated, in evaluating investment projects, while U.S. companies appear to make great use of discounted cash-flow rate of return. Although Malaysia, Singapore and Hong Kong companies often make annual cash-flow forecasts over the life of a project, they do not undertake much analysis of risk involved in the project. Moreover, there is room for improving the practice of project implementation, the post-audit of implemented projects, and the use of post-audit data.Dr Wong Kie Ann is with the School of Management, National University of Singapore; Dr Edward J Farragner is with the Department of Finance, DePaul University, U.S.A.; and Mr Rupert K.C. Leung is with the Department of Business Management, Hong Kong Baptist College.     

Interprovincial Reallocation of Market Sharing Quota for Industrial Milk

This paper examines allocations of industrial milk quota across provinces in Canada under two hypothetical scenarios. The study focuses on the case where considerable reallocation of production occurs across farms and provinces due to changes in the distribution of quota holdings. The allocations are determined using linear programming (LP) analysis, where the objective of the optimization problem is to minimize the delivered cost of products such as cheese, butter, ice cream, and yogurt. The LP model seeks to meet provincial targets for domestic disappearance on a milk-equivalent basis in the short to medium term, where limits are imposed on the maximum achievable growth of production and processing capacity in any one I he conclusions are that reallocation of existing quota across farms and provinces has a potential to reduce considerably the costs of industrial milk production and the cost of transporting manufactured products.     

The effect of differential shift costs on capital utilization

This paper presents the results of a micro study of the influence of the shift differential factor on utilization rates in Kenyan manufacturing. Qualitative information about the nature of technology and of shift differentials is incorporated into models of the choice of utilization rate under the alternative assumptions of constant returns to scale and increasing returns to scale. Econometric tests are then used to show that 1971 data is consistent with the theoretical predictions, although the results suggest that the quantitative significance of the shift differential factor in causing excess capacity should not be overstated.     

A tax-based motive for the underpricing of initial public offerings

This paper presents a model of entrepreneurial wealth maximization for the pricing of initial public offerings (IPOs). It is an extension of one previously presented in the literature. The model shows that personal tax rates on ordinary income and capital gains may, in part, determine IPO pricing: an increase in the capital gains tax rate should lower the degree of underpricing. An empirical analysis of the effect of the Tax Reform Act of 1986, which raised the capital gains tax rate, shows that the average degree of underpricing did decrease as predicted, and that this occurs after controlling for other possible influences.     

Apprenticeship Contracts, Small Enterprises, and Credit Markets in Ghana

This article uses data from a 1992 survey of manufacturing enterprisesin Ghana to describe the importance of apprenticeship in themanufacturing sector and analyze the structure of the contractsin which apprenticeship takes place. The article presents threemajor findings. First, the training of apprentices is both awidespread activity and a part of the training of a large fractionof entrepreneurs and manufacturing workers. Second, two primarytypes of contracts are apparent in the data: those in whichapprentices pay fees for their training and those in which theydo not. Third, for those firms training apprentices, the choiceof contract type is strongly correlated with other characteristicsof the firm, particularly its use of credit. Apprenticeshipfees are one among many informal sources of firm finance.     

Restructuring Japanese business through Kyosei: Capitalizing on international strategic alliances at the consumer level

Japan of the post-bubble era is the object of much reflection and speculation pertaining to risutora or restructuring of the economy. This study provides a novel, analytical perspective on the fundamental issues involved in the shift of momentum that characterizes Japanese business and economic restructuring. After examining the economic and corporate dimensions of the transitional forces that shape Japan's restructuring process, this study focuses on two powerful, yet often ignored, agents of change: the emergence of a new class of collaborative mandates, kyosei, and the rise of consumer power. The study further emphasizes the importance of planning and managing corporate-level restructuring activities with the interests of end users in mind, by empirically demonstrating the significance of strategic alliances, as a corporate restructuring option, on consumers. The results show that consumers' impression of alliances with Japanese firms have a strong effect on future attitudes toward each partnering brand. © 1996 John Wiley & Sons, Inc.     

Banks,finance and investment in Germany: A review article

The author wishes to thank David Audretsch, Lee Baldwin, Wendy Carlin, Richard Deeg, Colin Mayer, Sigurt Vitols, and three anonymous referees for their helpful suggestions on an earlier version of this article.