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Determinants of the abandonment of previously announced capacity expansions are analyzed in eleven industries within the North American pulp and paper sector. Given the investor's initial confidence, extent of precommitment of resources, and post-announcement fresh news, abandonment's likelihood increases with unanticipated projects subsequently announced by rivals. The process suggests a continual auction with the winning projects and firms having certain systematic properties. Unexpected announcements by rivals promote abandonment only in less concentrated industries; elsewhere completion is actually encouraged. Short-run price competition is found highly sensitive to capacity utilization, and the market's geographic scope is tested. [ABSTRACT FROM AUTHOR]

This article presents a modeling framework that enhances our ability to analyze the implications of policy for future sustainability of industrial systems. The framework quantifies the relationship between physical input and waste flows, capital vintage, and investment behavior in the U.S. pulp and paper industry. A regional vintage model is developed that simultaneously incorporates investment decisions, vintage structure of the capital stock, and physical material and energy flows, in addition to paper demand. Each capital vintage is specified by size, output structure, and age-specific retirement rates, as well as fiber use and energy intensities. Both embodied and disembodied technological change are incorporated, as well as greenhouse gas emissions from fuel use, and decomposition and incineration of waste. Estimated equations are used to simulate industrial futures until 2020, from a system of nonlinear differential equations. Our results demonstrate the economic and physical interdependence between material and energy flows and the central role energy prices have in decision-making. For instance, an increase in average energy prices, ceteris paribus, will on average discourage paper recycling, which has implications for greenhouse gas emissions as well as for changes in energy intensity. The analysis of the data reveals diminishing rates of energy self-generation, and the immense longevity of capital, which hampers rapid change in input and carbon intensity. This stresses the importance of investment-led strategies in facilitating faster capital turnover to enhance future sustainability of the system. [ABSTRACT FROM AUTHOR]

The finance literature contains many examples of attempts to classify bond issuers into rating categories and to identify the key variables which contribute to bond rating differences. This study extends the classification literature to include industrial commercial paper issuers. Standard and Poor's has expanded its A-1 commercial paper category, and hypothesized division characteristics are proposed, followed by the classification test. The relative comparability of key variables in this study to those in bond studies is striking. [ABSTRACT FROM AUTHOR]

The article presents a list of papers about economics literature, including "Export or domestic-led growth in Asia?," "The People's Republic of China and its neighbours: evolving patterns of trade and investment," "Number of children and their education in Philippine households," and "East Asian economic integration and its impact on future growth."

Portfolios are increasingly advocated in medical education. Qualitative studies have suggested their value in stimulating experiential learning, promoting deep learning and encouraging reflection. This study explored the use of educational portfolios in reflective learning by general practice (GP) registrars in Yorkshire, England. A postal questionnaire was sent to the 92 registrars of a deanery in November 2001, after a pilot study with registrars in a single district had been carried out. The questionnaire explored the registrars' use of the portfolio to collect information and for reflection, as well as registrars' attitudes towards the portfolio. It was returned by 71 registrars, representing a 77% response rate. Structured in-depth interviews were used to support the results obtained. Of the registrars who responded, 65% recorded information on a regular basis and 42% used the portfolio in reflective learning. Experienced registrars used the portfolio least. Those with supportive trainers used the portfolio more in reflection. The study suggests that the role of the trainer/supervisor is vital in portfolio-based learning. It raises questions about the acceptability of portfolio learning. It adds weight to the suggestion that careful introduction of portfolios and training of supervisors is vital. Further work to establish the role of portfolios in reflective learning is recommended. [ABSTRACT FROM AUTHOR]

We test whether environmental regulation affects investment decisions, using Census data for individual paper mills. New mills in states with strict environmental regulations choose cleaner production technologies, with differences in air and water pollution regulation also influencing technology choice. Examining investment allocation across existing plants, we find that abatement and productive investment tend to be scheduled together. However, plants with high abatement investment over the entire period spend significantly less on productive capital. This seems lo reflect both environmental investment 'crowding out' productive investment within a plant, and firms shifting investment towards plants facing less stringent abatement requirements. [ABSTRACT FROM AUTHOR]

This paper deals with what is referred to in the literature as the ‘Inflation Targeting Lite’ (ITL) countries. These are a category of emerging countries, whose main characteristics are that they are least developed and small economies that pursue IT. They use inflation targeting to define their monetary policy framework, but for a number of reasons they are not in a position to put top priority to IT in relation to other objectives. This paper deals with a set of ITL countries for which consistent data could be gathered, and for which a date for setting inflation targeting could be discerned. The object of the paper is to study the impact of IT on actual inflation and inflation expectations. We utilise intervention analysis to time series on inflation for a number of ITL countries, which have actually implemented IT. In doing so our main concern is to assess whether, due to the IT intervention, there has been a significant change in the trend corresponding to these series and the extent to which inflation rates have actually been ‘locked-in’ at low levels after the implementation of IT. Two major results emerge. The first is that ITL countries have been successful in ‘locking-in’ inflation rates. The second is that non-IT countries have also been successful in terms of the ‘lock-in’ effect. Our overall conclusion, then, is that other factors in addition to IT underpin the apparent success of the control of inflation. [ABSTRACT FROM AUTHOR]

I test the disposition effect, the tendency of investors to hold losing investments too long and sell winning investments too soon, by analyzing trading records for 10,000 accounts at a large discount brokerage house. These investors demonstrate a strong preference for realizing winners rather than losers. Their behavior does not appear to be motivated by a desire to rebalance portfolios, or to avoid the higher trading costs of low priced stocks. Nor is it justified by subsequent portfolio performance. For taxable investments, it is suboptimal and leads to lower after-tax returns. Tax-motivated selling is most evident in December. [ABSTRACT FROM AUTHOR]

The article includes abstracts on articles related to the financial services industry, including "Firm Performance and Mechanisms to Control Agency Problems between Managers and Shareholders," "Dynamic Equilibrium and Volatility in Financial Asset Markets," and "Liquidation Costs and Capital Structure."

The purpose of this paper is to examine the effect of the FDI decision on domestic investment in the case of Taiwanese manufacturing firms. In addition, we also consider the deferral effect of the FDI decision and the role of firm size. To this end, this paper takes advantage of an endogenous switching model from which consistent estimators are obtained after correcting for the self-selection problem. The empirical results show that the effect of these manufacturing firms’ FDI decisions on domestic investment is significant within the firms. Furthermore, a crowding-out effect of FDI on domestic investment is found when Taiwanese firms engage in defensive FDI. Finally, FDI is found to have a positive influence on the domestic investment of the larger firms, while the influence is negative in the case of the smaller firms. [ABSTRACT FROM AUTHOR]

This paper tests the significance of FDI as a way to alleviate credit constraints. Incoming foreign investment provides additional sources of capital. Specifically in the Chinese case, enterprises may look for foreign investors, being constrained in their activity due to distortions in the state-dominated system. First, the Chinese financial system allocates resources to the least efficient firms – state-owned enterprises – while denying the same resources to Chinese private enterprises, forcing them to look for a foreign investor. Second, the inefficient system of state investment planning leads to mismanagement of public enterprises, increasing ‘insolvency-induced FDI’. We propose to analyse determinants of FDI in Chinese provinces to test the above hypotheses. We control for traditional determinants of FDI such as market access, labour costs, productivity, infrastructure, reform advances and banking sector size in order to assess the impact of inter-provincial heterogeneity in terms of the access that private enterprises have to credit and the distortive management in state-owned firms. [ABSTRACT FROM AUTHOR]

The paper examines the impacts of globalization on labour in South Africa. A framework is developed to link different aspects of the process of globalization with labour market outcomes in developing countries. This framework is then applied to the South African case focusing on trade, foreign direct investment, technology transfer, macro-economic policies and the impact on the bargaining power of labour. The paper concludes that although globalization is only one of the factors affecting the South African labour market in recent years, the outcomes for labour, particularly unskilled labour, have been unfavorable. Copyright © 2006 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The article presents commentary from Jessica A. Wachter about a paper written by Yacine Ait-Sahalia and Michael W. Brandt entitled (A&B) "Variable Selection for Portfolio Choice," which appeared in the August, 2001 issue of the "Journal of Finance." In that paper A&B employed conditional moments of return to select an optimal portfolio. The author of the current paper acknowledges the validity of their work for single-period investments, but raises questions about its suitability for investments that extend over multiple periods.

Objective Background Method Results Implications To examine how having more than one trans person in a family facilitates investments in or divestments from cisnormativity.While there is now a robust body of literature on trans people's experiences with cisgender family members and vice versa, largely missing has been a focus on families where more than one person in the family is trans.This paper focuses on a subsample of 10 families from a large international qualitative longitudinal study conducted across six countries, focused on trans young people and their families. The paper draws on interviews conducted in 2022 and 2023 with families in which more than one family member was trans. Transcribed interviews were analyzed thematically.The themes developed indicate that while for some families having multiple trans family members may mean that some cisgender family members invest further in cisnormativity, for other family members the existence of multiple trans family members may encourage divestments from cisnormativity, to the benefit of trans young people. Specifically, themes focus on multiple trans family members highlighting cisnormativity, and conversely, multiple trans family members indicating likelihood of support and offering a safe haven.The paper concludes by emphasizing that while encouraging divestments from cisnormativity should not be the work of trans people, it is nonetheless important that research continues to investigate the experiences of families in which more than one person is trans. [ABSTRACT FROM AUTHOR]

Background: Microenterprises are very small businesses requiring little capital and can be an employment pathway for people with intellectual disabilities. This systematic review aims to identify the facilitators, barriers and outcomes from microenterprise. Method: Web of Science, Scopus, EconLit, PsycINFO and ProQuest were searched to identify peer‐reviewed studies on microenterprises owned by people with intellectual disability published up to and including 1 October 2019. Results: A total of 1080 papers were independently screened by two reviewers. Six papers met the inclusion criteria. Barriers included lack of access to business expertise and resources, and the tension between growing microenterprises and maintaining eligibility for welfare payments. Formal and informal supports were key facilitators. Outcomes experienced included additional income, skills development, increased confidence and engagement in meaningful activities. Conclusion: Additional research is required to develop an evidence base which may support investment in this employment pathway, making microenterprise more accessible to people with intellectual disabilities. [ABSTRACT FROM AUTHOR]

The three papers presented at this session have provided a fine balance of theoretical analysis and statistical investigation. The paper by Black and Scholes is a particularly commendable contribution, thoroughly professional in execution and a very constructive piece of work in its broader implications. The authors has previously derived an equation for the valuation of options from the condition that opportunities for profitable arbitrage will be eliminated in efficient capital markets. In the present paper they carefully analyze a sizeable body of data to examine the efficiency of the operation of the option market as it is now structured. They validate their formula for the pricing of options by showing that in the absence of transactions costs, buying "undervalued" contracts and selling "overvalued" contracts at model prices computed with foreknowledge of the actual variances of the returns on the underlying stock over the holding period would produce quite insignificant average gains or losses. But when ex ante variances are estimated from previous stock price histories, buying "undervalued" contracts and selling "over-valued" contracts at model prices would have produced significantly negative excess portfolio returns, while substantial positive excess portfolio returns would have been made by buying overvalued and selling undervalued options at market prices. These results indicated that the true value of options is somewhere midway between market prices and "model" prices based on historical data. [ABSTRACT FROM AUTHOR]

In recent years a number of investigators, noatbly Aschauer (1988, 1989a, 1989b), Barro (1981, 1990), Barth and Cordes (1980), Blejer and Khan (1984), Calderon (1988), Cardoso (1993), Munnell (1990), Ram (1986), Ramirez (1991, 1993) and Riedel (1992), have investigated both conceptually and empirically the direct effects of public spending on private expenditures. This paper extends the scope of their analyses by explicitly showing how the inclusion of the government variable in the private consumption and investment functions changes the nature of fiscal policy in an open economy with variable domestic prices. Throughout the analysis, a systematic effort is made to compare the differing effects of fiscal policy in the standard and modified models under both fixed and flexible exchange rate regimes. This paper is organized as follows. First, a theoretical rationale for including the government sector as an argument in the private consumption and investment functions is provided. Next, the paper examines the impact of fiscal policy in the fixed rate case under both imperfect and perfect mobility. It is shown that when public and private spending are compliments, conventional policies for stabilizing the economy may lead to chronic stagflationary pressures. Under these conditions, it is expedient for policymakers to recognize that varying the compostion of public spending-independent of its amount-may lead to a stable assignment. Third, the paper examines the impact of changes in both the level and composition of government spending on relevant targets on the flexible rate case with perfect capital mobility. The paper is brought to a close by investigating the assignment problem in the modified model for the flexible rate case. It is shown that government officials may prescribe potentially destabilizing policies if they mistakenly believe that they are operating in the conventioanl model. The last section summarizes the major findings and offers some concluding observations. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Climate change and land use change are two global and interacting forces of change that have wide‐reaching effects on socio‐ecological systems. Despite their interconnectedness, the two are mostly considered separately in investment programs. Therefore, without an integrated systemic approach that considers these interactions, we will fail to achieve the ambitions to deliver on the Sustainable Development Goals. By integrating the Driver‐Pressure‐State‐Impact‐Response framework and the System of Environmental‐Economic Accounts Ecosystem Accounting, this paper assesses how the interlinkages between climate change and land use change can be jointly considered in the design of climate adaptation and ecosystem conservation investments. The analysis points to the following priorities for interventions in an integrated approach: forest conservation, protection of peatlands, climate‐smart agriculture, and restoration of degraded lands. The paper furthermore suggests a set of systemic investment principles that can contribute to capital allocation for climate adaptation and conservation. [ABSTRACT FROM AUTHOR]

The article presents commentary about a paper written by E. Han Kim entitled "Miller's Equilibrium, Shareholder Leverage Clienteles, and Optimal Capital Structure," which was published in the May, 1982 edition of the "Journal of Finance." The author regards Kim's paper as a survey of research on optimal capital structure inspired by Merton Miller's article "Debt and Taxes." He discusses the portion of Kim's paper that contrasted complete and incomplete capital market environments, and notes the importance of tax arbitrage restrictions in understanding them.

This note contains ramifications of results of Delbaen et al. (2002). Assuming that the price process is locally bounded and admits an equivalent local martingale measure with finite entropy, we show, without further assumption, that in the case of exponential utility the optimal portfolio process is a martingale with respect to each local martingale measure with finite entropy. Moreover, the optimal value always can be attained on a sequence of uniformly bounded portfolios. [ABSTRACT FROM AUTHOR]

Investing in nursing and its leadership has been a key global priority in achieving world health. This paper aims to explore what it means to invest in nursing and its leadership and whether we are progressing in its endeavour. Consideration is given to whose responsibility it is to invest, the importance of education to support strategic nurse leaders and enable them to have a voice to lead as well as create a culture in which their staff wish to stay. Further, the paper explores the importance of each country accepting responsibility for developing and funding its strategic workforce plan and paying nurse professionals fairly and taking steps to reduce workforce shortages. Finally, the paper examines the progress the United Kingdom is making and concludes that investment in nursing is everyone's business, the government, healthcare organisations, society and above all nurses themselves. Collectively, we must step up to influence change and have nursing voices heard. [ABSTRACT FROM AUTHOR]

This paper analyzes the major factors which determine the effects of taxation on the value of risky assets and on the cost of capital, and shows how the magnitudes and even the signs of these effects depend on the values assumed for a few key parameters in the model. Using plausible values for these parameters, it is shown that the results obtained are frequently counter-intuitive. [ABSTRACT FROM AUTHOR]

Several recent writings have raised questions concerning the effectiveness of commonly used analytical measures and techniques which have their basis in Modern Portfolio Theory. Questions have been raised about the use of beta in the interpretation of risk adjusted equity performance and about the usefulness of the capital asset pricing model (CAPM) as a tool for measuring and interpreting investment performance. This paper restricts itself to questions concerning beta and CAPM as they relate to performance measurement. In the process of this examination it discusses some basic principles of performance measurement as they relate to judgments of investment management skill and ability. It has been shown that simple applications of beta used in adjusting equity performance for risk can possibly produce misleading or incorrect interpretations of risk adjusted performance. Errors have been shown to be related to the market index used as a basis for the determination of beta. These findings are independent of the validity of CAPM, but the line of reasoning which leads to these conclusions is not totally antithetical to the derivation of CAPM. This paper has three major sections: 1. The capital asset pricing model is assumed to be valid, and a broader index of capital assets is constructed. This index is “better” in the sense that it includes many more assets than the S&P 500 and hence is more complete. 2. The better index is then used to “game” performance measurement using current investment technology and the Standard & Poor's 500. 3. Some conclusions are drawn as to the effectiveness of gaming and the ways in which performance measurement numbers should be interpreted in general. General issues are discussed in the text. A parallel, more detailed and more technical argument is presented in the appendix. [ABSTRACT FROM AUTHOR]

This article explores whether variable life insurance and mutual funds are competitive products. In considering whether variable life insurance and mutual funds are comparable products, the author emphasizes that both utilize a pool of securities as a funding vehicle. In the case of the mutual fund, the purchaser has direct ownership of a pro-rata share of the pool of securities and the benefits desired are solely to accumulate value. Investment performance of a mutual fund, assuming dividends are reinvested, is used to provide more of the same, that is, an increase in the accumulated value.

In this paper, it is shown that it matters a lot for empirical research whether policy is taken to be exogenously set or to be endogenous. In the model investment depends on policy that depends on economically important fundamentals and is, thus, endogenous. The paper analyzes what might be concluded when treating policies as randomly assigned, when in fact they are not. When policy is endogenous, the measured effects of policy on growth will generally be biased. Based on the model and OECD data, the signs of the biases for tax variables and for redistribution are derived. Based on these signed biases, the paper discusses some empirical results that seem puzzling from a theoretical viewpoint. The paper argues that regressing growth on policy can still yield important information if policy endogeneity is taken into account. [ABSTRACT FROM AUTHOR]

This paper empirically examines the key factors driving UK direct investment in the Spanish regions over the period 2000–2016 and, consequently, tries to unveil its main motivation. Applying a spatial Durbin panel model to capture spatial linkages, the results point to the existence of complementarity between the FDI received by a region and that of the remaining ones. This outcome, along with a positive and statistically significant spillover effect of market potential, reveals that complex‐vertical FDI motivation with agglomeration economies prevails among UK MNEs investing in Spain. Additionally, our findings unveil the role played by some other FDI drivers, such as wages and infrastructure. Furthermore, the paper is unique in decomposing the average direct and spillover effects by region and pairs of regions, so that remarkable differences can be identified. This breakdown has strong significance from a policy perspective since it can guide regional policy makers. In short, our findings point out to the fact that FDI policy should be jointly designed by those regions presenting strong bilateral spillover effects. Thus, greater cooperation among policy makers would be welcome. [ABSTRACT FROM AUTHOR]

The article presents commentary from M.J. Brennan about a paper written by Nicholas Barberis and Ming Huang (B&H) entitled "Mental Accounting, Loss Aversion, and Individual Stock Returns," which appeared in the August, 2001 issue of the "Journal of Finance." In that paper B&H analyzed the behavior of investors who are concerned about the returns of both their portfolios and the individual stocks that compose them. The author of the current paper observes that this represents a departure from modern portfolio theory. In his view B&H's analysis, while interesting and informative, must be approached with caution.

This paper investigates options market reaction to changes in the instantaneous variance of the underlying asset. There are three main findings. First, options market investors underreact to individual daily changes in instantaneous variance. Second, these same investors overreact to periods of mostly increasing or mostly decreasing daily changes in instantaneous variance. Third, they tend to underreact (overreact) to current daily changes in instantaneous variance that are preceded mostly by daily changes of the opposite (same) sign. The third finding can reconcile the first two and is also consistent with well-established cognitive biases. [ABSTRACT FROM AUTHOR]

A Treasury Inflation-Protected Security (TIPS) is virtually risk free. As an obligation of the U.S. Treasury, it is mostly free of default risk. As an inflation-indexed security held to maturity, it is risk free in terms of purchasing power. However, investing in a TIPS-only portfolio for retirement is not risk free. This paper presents the results of a simulation analysis designed to evaluate the performance of a portfolio of inflation-indexed Treasury coupon bonds. This study demonstrates that significant shortfall risk exists for TIPS-only portfolios across a range of savings plans and the securities selection rules. [ABSTRACT FROM AUTHOR]

Secure children's homes are locked institutions that deprive children of their liberty. The government are investing significantly in these homes, yet there remains a lack of clarity about their nature and purpose. Drawing on data generated through a substantial ethnography in one secure children's home in England, this paper uses Goffman's (1961) theorising as a conceptual lens to view the institution. It concludes that ambiguity and confusion about what these institutions are, and what they seek to achieve, impacts negatively on the experience of everyday life within. Clarity is needed urgently to improve experiences and to enable the assessment of outcomes. [ABSTRACT FROM AUTHOR]

The preceding critique [1] of the paper "The Information Problems in Organizations: A Research Model for the Value of Information and Information Systems" [3], reaches general conclusions with respect to the original paper and the applicability of economics to MIS research. These conclusions are based on arguments developed at a different level of analysis than that used in the original paper, and without considering the goals and intent of the original paper. The differences between the critique and the original paper are highlighted. [ABSTRACT FROM AUTHOR]

The focus of this paper is to present a discussion of the role of the private sector in response to the need for climate change adaptations. The study, which was conducted through a literature review, investigates the concept of the green economy and climate change, as well as businesses' commitment to advance climate actions in ways that build resilience in vulnerable communities in developing countries. The paper calls on companies with national, regional, and/or global reach to adopt or develop strategies that improve resource efficiency, reduce greenhouse gas emissions, and reduce the loss of biodiversity. Businesses can accelerate this transition by aligning their investments with climate change adaptation opportunities, and thus, "green" the economy. In addition, green growth could be achieved through tactical public and private investments in mitigating climate change. The paper concludes that the private sector is a key sector in addressing the challenges of vulnerable communities, and it has much to contribute to the planning, development, and implementation of climate adaptation strategies, including sector‐specific expertise, technology, efficiency, financing, and entrepreneurship. Finally, some social conditions and environmental boundaries have been highlighted in this paper to attract the attention of business leaders who are trying to build initiatives and advance climate actions that will reduce socio‐community risks from climate change. Also, comprehensive initiatives and strategies have been recommended to private companies seeking to address climate vulnerabilities. [ABSTRACT FROM AUTHOR]

The article discusses the issues concerning the transport policy in Great Britain. The formation of transport policy has been and still is a confused world of ideology, interest, economics and several adjustment for political gain. A product of this complex system of interaction has been the Transport Holding Inc. The functions of the holding company are mainly concerned with investment business and the handling of the central pool of capital. The organization and structure of Transport Holding is presented. The company emerges as an interest group attempting to influence decision making, in a very similar way to the more commonly accepted private groups.

This paper answers the comments of readers of our earlier paper. Additional insight is gained by adding recent data to show the effect of following Value Line Investment Service recommendations in active stock market trading over the years 1974-81. We show that Value Line makes a statistically significant contribution, which cannot be explained by the Beta risk factor. We offer our results as an unexplained divergence from the Efficient Market Hypothesis, but with the tentative hypothesis that investment timing (i.e., the fact that the Efficient Market Hypothesis does not operate instantaneously) may explain much of the abnormality. [ABSTRACT FROM AUTHOR]

In this paper we will introduce and develop a nontraditional theory of portfolio selection. The theory assumes that investors choose their portfolios to have a certain minimax property which we will describe in detail below. As we will see in the next two sections, the minimax portfolios turn out to be identical to portfolios that are often recommended on other grounds. In this paper we have examined the implications of certain forms of minimax behavior in portfolio selection. Though minimax behavior is not truly optimal, there are reasons to suppose that it might approximate the behavior of some investors. One reason is the obvious discomfort that many decision-makers feel when forced to make decisions based on subjective probability distributions, particularly when those distributions were formed on the basis of vague information. One would not be surprised if a decision-maker sought to protect himself against the possibility that his distribution is incorrect. Portfolio selection seems a natural context for minimax behavior because of the enormous amount of information, both direct and indirect, that an investor must incorporate into his probability distributions. The results of this paper, which show that minimax behavior leads to reasonable portfolios of the sort we observe in practice, lend some support to the minimax hypothesis. [ABSTRACT FROM AUTHOR]

Taxes affect capital budgeting under inflation in many ways. This note focuses on two of the most important—depreciation deductions and interest deductions. Because depreciation for tax purposes is based on historical costs rather than current values, investments in depreciable assets become less attractive under inflation. Because debtors can deduct nominal interest payments, not just real interest charges, debt-financed investments become more attractive under inflation. The impact of inflation and taxes on the value of potential investment projects depends on which factor dominates. In a recent paper in this journal, Gandolfi argued that the existence of a tax on corporate profits will not alter the real rate of return on the firm's marginal investment. In a subsequent paper, Jaffe exposed Gandolfi's error in ignoring the tax subsidy to debt-financed investments. Both authors assumed that the firm's investment takes the form of a non-depreciating machine—a special case, as Jaffe notes, among an infinite number of possible depreciation schedules. An extension of Jaffe's analysis to handle alternative depreciable lives confirms his assertion that investments which would be marginal in a world without taxes can become profitable in a world with taxes. However, the cutoff rate of return exceeds the rate calculated by Jaffe whenever the machines have finite lives. Moreover, in the limiting case of an asset which has a single period life, the required rate of return will be unaffected by a tax on profits. The section which follows introduces a depreciable asset into Jaffe's analysis; quantitative results of the impact of inflation and taxes on the firm's cutoff rate of return are calculated. Section three summarizes the main conclusions from the analysis. [ABSTRACT FROM AUTHOR]

In the early sixties a number of papers developed stock value models in which the cost of equity capital is a function of the firm's equity investment rate. The conclusions reached, however, have for the most part been rejected in the subsequent literature. Instead, it has become widely accepted both in the theoretical work and in the textbooks on finance that the cost of equity capital is equal to the yield at which a firm's stock is selling, and the latter is independent of the firm's investment rate. In fact, one frequently finds the two terms, share yield and cost of equity capital used interchangeably in the literature. However, contributions to the literature during the last few years provide additional support for and clarification of the alternative theory, and a broad reconsideration of the subject is in order. Part I below critically reviews the literature of the early sixties on both sides of the subject and certain subsequent papers which contributed to the conclusion that share yield and cost of equity capital are equal and independent of investment policy. Parts II and III examine the recent contributions which have materially strengthened the theoretical basis for the contrary conclusion, that the cost of equity in a firm is an increasing function of its investment rate. Part IV reviews the empirical evidence on the subject, and Part V both summarizes the conclusions reached and discusses the areas in which the model requires further development. [ABSTRACT FROM AUTHOR]

This paper analyzes how mutual fund performance relates to past performance. These tests are based on a multiple portfolio benchmark that was formed on the basis of securities characteristics. We find evidence that differences in performance between funds persist over time and that this persistence is consistent with the ability of fund managers to earn abnormal returns. [ABSTRACT FROM AUTHOR]

The assumption that the market portfolio follows a specified diffusion process implies, in a simple equilibrium framework, that the representative individual must have a certain utility function which is identified in the paper. Not every diffusion process is viable, i.e., can be "endogenized" to be the market portfolio's price process in such an equilibrium model. The paper provides necessary and sufficient conditions for viability which imply that viable diffusion processes constitute a rather restricted family. [ABSTRACT FROM AUTHOR]

This paper has introduced L(W[sub 0], k, A) and R(W[sub 0], k, A) as three-parameter risk measures embodying decisions about a reference level about which deviations are to be measured, the relative importance of small versus large deviations, and the range of deviations that will be included in the risk measure. The popular risk measures of variance, semi-variance, mean absolute deviation, and probability of an outcome worse than some prespecified level are special cases of L(W[sub 0], k, A) and standard deviation is a special case of R(W[sub 0], k, A). These risk measures were shown to differ in their choice of one or more of the parameters W[sub 0], k, and A. It was shown that both L and R are monotone increasing functions of A; however, neither L nor R are necessarily monotone increasing functions of k. Clearly L(W[sub 0], k, A) and R(W[sub 0], k, A), are not the only potentially useful functions of the three decision parameters that have been implicit in the selection of the popular risk measures; they are, however, a rich and fairly general family. Further study of their properties should lead to advances in the theory of risk and specification of criteria for the selection of risk measures. This paper has attempted to establish a foundation for these advances. [ABSTRACT FROM AUTHOR]

A conference paper is presented that examines firm income taxation and asset expansion. The author explores some of the problems associated with the measurement of asset expansion during periods of changing price levels. The author investigates the impact that changes in corporate income tax rates have on asset expansion and offers some suggestions on how to stimulate investments by means of special tax measures.

If papers presented at our annual meetings are not addressed to the small group of academicians who attend the actual programs, but to a much larger audience that includes decision makers in the field, then Dr. Pellatt's paper on the analysis of real estate investment opportunities represents a significant contribution. He has done a competent, intelligent job of applying capital budgeting theory to the problem of real estate investment. Admittedly, there is nothing new or unique in the tools, techniques, or concepts employed in his paper, but he has produced a worthwhile marriage. He brings together a potentially fruitful union of capital budgeting, where we have had significant progress in the last decade, with the field of real estate evaluation where we have had little change in the last century. [ABSTRACT FROM AUTHOR]

Aim: To evaluate a year‐long mentorship program, pairing nurses from different regions across the world to support their global leadership capability, and identifying additional consequences of their participation. Background: Investment in developing nurse leaders continues as a strategic global imperative. Building on the first cohort's recommendations, this second program illustrates continued progress. Program evaluation: Using the logic model of program evaluation, this non‐empirical paper uses data collected from anonymized questionnaires and participants' stories to help improve the program, illustrating innovative practices to develop the confidence and competence of emerging and established nurse leaders globally. Discussion: The value of mentorship was recognized, and there were gains for both mentors and mentees in the development of leadership confidence and competence. Through engagement and collaboration with the whole community, participants were encouraged to understand their own and others' cultures avoiding assumptions and stereotypes. Conclusion: This evaluation illustrates that in addition to helping improve future programs, mentorship has enabled the growth of individuals' skill sets and the confidence to reach out to peers across the world to understand the meaning of global health and to make a meaningful contribution to the challenges they face. Implications for nursing practice: Nurse managers should be encouraged to develop and formalize a mentoring culture to benefit the leadership competence and well‐being of their workforce. Implications for nursing policy: Every nurse has a responsibility to invest in nursing leadership for themselves and others. Mentorship can assist nurse leaders to build workforce capability to lead and contribute to the policy agenda locally, nationally, and internationally. Starting early and at the individual level, global mentorship programs can develop leadership expertise to help nurses find their voice and strengthen their confidence and competence to lead and therefore build the strategic leaders of the future. [ABSTRACT FROM AUTHOR]

What caused the recovery from the British Great Depression? A leading explanation – the 'expectations channel' – suggests that a shift in expected inflation lowered real interest rates and stimulated consumption and investment. However, few studies have measured, or tested the economic consequences of, inflation expectations. In this paper, we collect high‐frequency information from primary and secondary sources to measure expected inflation in the United Kingdom between the wars. A high‐frequency vector autoregression suggests that inflation expectations were an important source of the early stages of economic recovery in interwar Britain. [ABSTRACT FROM AUTHOR]

This study presents a novel framework for investment prioritisation in a distribution network by performing a flexibility needs assessment with regards to power quality parameters. Power range and time instances of activation are identified with a view of maintaining normal operation. A step forward is made by incorporating the importance of the flexibility needs assessment in investment prioritisation as part of the network expansion planning. The proposed framework consists of three procedures: input data preparation, operational calculations and the post-processing of results, which are used to quantify the flexibility needs and propose an investment prioritisation list. A bus node, which forms a part of the existing distribution network in Slovenia, is used to demonstrate the general applicability of the framework. As a result, an investment prioritisation list was compiled by assessing the flexibility needs. The secure power supply buffer of the node is determined, while the quantification of the flexibility power range and time instances of activation are also provided in order to further mitigate network constraints. Apart from providing valuable information to network operators, the newly proposed framework lays the foundation for aggregators and market players to plan and self-balance their portfolio and position when providing flexibility market services. [ABSTRACT FROM AUTHOR]

The paper develops and implements a methodology for assessing the role of energy prices and new investment in reducing energy intensity in Chinese industry. Analysing a unique panel data set which reports firm‐level energy consumption and price from 1997 to 2004, the paper finds: the energy prices, not only the current but also the past energy prices, are key factors that driving down firms' energy intensity for all three types of firms: state‐owned enterprises (SOEs), domestic non‐SOEs (NSOEs) and foreign‐funded firms (FFEs); furthermore, SOEs exhibit a robust price‐investment channel: responding to rising energy prices, SOEs tend to invest in new energy‐efficient capital, through which SOEs reduce energy intensity; the same price‐investment channels are less robust for non‐SOEs or foreign‐funded firms. [ABSTRACT FROM AUTHOR]

Reports on the performance of the paper and packaging industry in South Africa as of August 2004. Plans of paper and packaging firm Mondi to sell a 42 percent stake in its South African packaging business to investment firm Shanduka.

Critical geographic reflection on researcher subjectivity is inadequately practised by scholars studying workplaces, especially those involving emerging powers from the global south. In the context of growing Chinese investment in Africa, this paper reflects on the negotiation of my Chineseness during multi‐sited research on capital–labour and expatriate–local relations in three Chinese companies in Ethiopia. It examines the nexus of identity, power, and place to shape my fieldwork process at three stages: seeking access to the enclosed space of companies, building credibility in front of different groups of participants, and arranging interviews in the particular socio‐spatial contexts of the workplace. Specifically, I explain the enabling and problematic nature of my Chinese identity when intersectioned with my multiple subjective positions as a US‐based female student‐researcher. I elaborate how my engagements with expatriates and locals are influenced by the existing system of power relations in Chinese companies. I demonstrate that the place of interview can generate crucial insights into management practices and work relations, and facilitate researcher autonomy and employee agency to momentarily revert the power relations in the workplace. My field experiences highlight the importance of critical reflection to assist researchers to navigate the layered complexity and unexpectancy of doing fieldwork. This paper reflects on the negotiation of my Chineseness during multi‐sited research on capital–labour and expatriate–local relations in three Chinese companies in Ethiopia. By examining how the nexus of identity, power, and place shaped my fieldwork process, I highlight the importance of critical reflection to assist the researcher to navigate the layered complexity and unexpectancy of doing workplace research. [ABSTRACT FROM AUTHOR]