Financial conflict resolution model in BOT contracts using bargaining game theory

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Morteza Bayat ◽  
Mostafa Khanzadi ◽  
Farnad Nasirzadeh ◽  
Ali Chavoshian
Keyword(s):  
Capital Structure ◽  
Period Length ◽  
Financial Benefit ◽  
New Approach ◽  
Content Type ◽  
Proposed Model ◽  
Optimal Value ◽  
Financial Interests ◽  
Concession Period ◽  
The Government

Purpose This study aims to determine the optimal value of concession period length in combination with capital structure in build–operate–transfer (BOT) contracts, based on direct negotiation procurement and considering the conflicting financial interests of different parties involved in the project. Design/methodology/approach The financial model of a BOT project is developed considering all the influencing factors. Then, fuzzy set theory is used to take into account the existing risks and uncertainties. Bilateral bargaining game based on alternating-offers protocol is applied between the government and the sponsor to divide project financial benefit considering the lender’s requirements. Finally, concession period and equity level will be determined simultaneously according to the sponsor’s and government’s share of project financial benefit and the lender’s requirements. Findings The proposed model is implemented on a real case study, and a fair and efficient agreement on concession period length and capital structure is achieved between the government and the sponsor considering the lender’s requirements. It is revealed that being the first proposer in the bargaining process will affect the concession period length; however, it will not affect the equity level. Moreover, it is shown that considering income tax as a part of government’s financial benefit increases the length of concession period. Research limitations/implications The presented model concentrates on direct negotiation procurement in BOT projects where the sponsor and government bargain on dividing financial benefits of project. It is assumed that the product/service price is determined before according to market analysis or users’ affordability. All the revenue of project during concession period is assumed to belong to the sponsor. Practical implications The proposed model provides a practical tool to aid BOT participants to reach a fair and efficient agreement on concession period and capital structure. This could prevent failing or prolonging the negotiation and costly renegotiation. Originality/value By investigation of previous studies, it is revealed that none of them can determine the optimal value of concession period length and capital structure simultaneously considering the BOT negotiation process and different financial interests of parties involved in the project. The proposed model presents a new approach to determine the financial variables considering the conflicting interests of involved parties. The other novelty aspects of the presented model are as follows: introducing a new approach for calculating the sponsor and the government’s share of project financial benefit that will affect the determination of the concession period length and considering the effect of existing risks and uncertainties on final agreement between the involved parties using fuzzy set theory.

Study on fabric compression under seam vis a vis quantitative measurement of seam boldness and thread consumption for lockstitch 301

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Vaseem Chavhan ◽  
Mandapati Ramesh Naidu
Keyword(s):  
Quantitative Measurement ◽  
Multilinear Regression ◽  
New Approach ◽  
Content Type ◽  
Single View ◽  
Sewing Thread ◽  
Stitch Density ◽  
Proposed Model ◽  
Fabric Weight ◽  
Single View Metrology

Purpose This paper aims to develop at sewing thread during the seam formation may lead to the compression of fabric under seam. In the present study, the model has been proposed to predict the seam compression and calculation of seam boldness, as well as thread consumption by considering seam compression. Design/methodology/approach The effect of sewing parameters on the fabric compression at the seam (Cf) for fabrics of varying bulk density was studied by the Taguchi method and also the multilinear regression equation is obtained to predict seam compression by considering these parameters. The framework has been set as per the single view metrology approach to measuring structural seam boldness (Bs). One of the basic geometrical models (Ghosh and Chavhan, 2014) for the prediction of thread consumption at lock stitch has been modified by considering fabric compression at the seam (Cf). Findings The multilinear regression model has been proposed which can predict the compression under seam using easily measurable fabric parameters and stitch density. The seam boldness is successfully calculated quantitatively using the proposed formula with a good correlation with the seam boldness rated subjectively. The thread consumption estimation from the proposed approach was found to be more accurate. Originality/value The compression under seam is found out using easily measurable parameters; fabric thickness, fabric weight and stitch density from the proposed model. The attempt has been made to calculate seam boldness quantitatively and the new approach to find out thread consumption by considering the seam compression has been proposed.

Split-share reforms and capital structure adjustment in China: a dynamic panel fractional estimation

2020 ◽  
Vol 47 (6) ◽  
pp. 1265-1280
Author(s):  
Tanveer Ahsan ◽  
Sultan Sikandar Mirza ◽  
Bakr Al-Gamrh ◽  
Muhammad Zubair Tauni
Keyword(s):  
Capital Structure ◽  
Positive Impact ◽  
Easy Access ◽  
Dynamic Panel ◽  
Chinese Firms ◽  
Data Set ◽  
Content Type ◽  
Structure Adjustment ◽  
The Government ◽  
Nonfinancial Firms

PurposeThe purpose of this study is to explain the adjustment rate toward the target capital structure of Chinese nonfinancial listed firms and to investigate the impacts of the split-share reforms (2005–2006) on the capital structure adjustment rate.Design/methodology/approachThe authors control for the unobserved heterogeneity and the fractional nature of the adjustment rate by applying an unbiased dynamic panel fractional estimator on the unbalanced panel data of 27,545 firm-year observations of Chinese nonfinancial firms listed during 1998–2015.FindingsThe authors find that Chinese firms adjust at an annual rate of 19–27% to reach their capital structure targets. The authors also find a positive impact of the split-share reforms on the adjustment rates of Chinese nonfinancial firms toward their target capital structure. Split-share reforms also helped Chinese firms to increase the use of equity financing in their capital structure.Practical implicationsThe authors argue that the government should strengthen capital markets to enable easy access to more financing options so that Chinese firms can acquire cheaper external financing.Originality/valueTo the best of authors' knowledge, this is the first study that applies an unbiased dynamic panel fractional estimator on an extended data set of 27,545 firm-year observations of Chinese nonfinancial firms listed during 1998–2015.

scholarly journals Optimal re-allocation of mooring areas for yachts

2019 ◽  
Vol 4 (1) ◽  
pp. 94-105
Author(s):  
Shuaian Wang ◽  
Ran Yan ◽  
Lingxiao Wu ◽  
Dong Yang
Keyword(s):  
Optimization Model ◽  
Numerical Experiments ◽  
Design Methodology ◽  
Mathematical Optimization ◽  
Content Type ◽  
Integer Programing ◽  
Proposed Model ◽  
Quantitative Manner ◽  
Mathematical Optimization Model ◽  
The Government

Purpose The purpose of this study is to propose a mathematical optimization model to solve the yacht mooring area re-allocation problem (YMARP). The objective of the problem is to allow the maximum number of yachts to be moored at their ideal mooring areas. Design/methodology/approach In this paper, the YMARP is introduced, formally defined and discussed. The authors develop a 0-1 integer programing optimization model for the problem, which can be solved efficiently using off-shelf solvers. The performance of the model is tested on extensive numerical experiments. Findings The results of the numerical experiments demonstrate that the proposed model can solve the YMARP very efficiently using off-shelf solvers like CPLEX. In particular, problems with up to 30,000 yachts and 400 mooring areas can be solved to optimum within 30 s. Originality/value This study is one of the preliminary studies to consider problems arising in yacht management in a quantitative manner. The proposed model has three main merits. First, it enables the government to better manage yachts and mooring areas. Second, with more yacht owners assigned with ideal mooring areas, the model helps reduce the traveling time of the yacht owners to yacht mooring areas. Third, by reducing the traveling time of the yacht owners, the model contributes to lessening the traffic burden in cities.

Developing waqf land through crowdfunding-waqf model (CWM): the case of Malaysia

2018 ◽  
Vol 9 (3) ◽  
pp. 448-456 ◽  
Author(s):  
Mohamed Asmy Bin Mohd Thas Thaker ◽  
Anwar Allah Pitchay
Keyword(s):  
State Government ◽  
Alternative Model ◽  
Viable Alternative ◽  
Educational Institutions ◽  
Alternative Source ◽  
Content Type ◽  
Proposed Model ◽  
Conceptual Paper ◽  
The Government ◽  
Practical Implications

PurposeThis paper aims to attempt to offer a viable alternative model of source of financing to develop waqf land, which is known as crowdfunding-waqf model (CWM). Design/methodology/approachThe extant literature on the financing constraints faced by waqf institution in developing waqf land, and crowdfunding have been reviewed critically and used in the attempt of proposing an alternative model. FindingsThe paper has developed CWM as a source of financing for waqf institution in Malaysia. This model is expected to provide waqf institution in Malaysia to meet their liquidity constraint in developing waqf land. It also involves an involvement of crowdfunding platform. Research limitations/implicationsThe paper is based on conceptual explorations of literature in the area of waqf and crowdfunding. This is a conceptual paper, so it did not use any empirical analysis. Practical implicationsThe findings of this paper will provide waqf institution with an alternative source of financing to develop waqf land. The present study also has implications for government and policymakers. By involving crowdfunding, it helps the government to reduce its expenses for the development of waqf land in Malaysia. Originality/valueThis paper offers an additional literature on waqf and crowdfunding especially from the Malaysian context. The paper proposes a viable alternative model for waqf institution as a source of financing by using crowdfunding, to develop waqf land. This model incorporates donation-based crowdfunding model and reward-based crowdfunding model. This model is different with the existing way of raising Cash waqf, which is conducted also via online basis by financial institutions and state government agencies. Later, the collected Cash waqf fund is transformed into illiquid assets such as building of hospitals, educational institutions and purchasing machinery and assets. However, the nature of proposed model in this study is to assist waqf institution to develop waqf land. Crowdfunding model is used to raise fund to develop waqf land in Malaysia. The fund collected via crowdfunding model is based on donation and reward based, not based on the nature of Cash waqf.

Forecasting smog in Beijing using a novel time-lag GM(1,N) model based on interval grey number sequences

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jia Shi ◽  
Pingping Xiong ◽  
Yingjie Yang ◽  
Beichen Quan
Keyword(s):  
Time Lag ◽  
Upper And Lower Bounds ◽  
Simulation Accuracy ◽  
Content Type ◽  
Model Based ◽  
Proposed Model ◽  
Lag Effect ◽  
Number Sequences ◽  
The Government ◽  
Grey Number

PurposeSmog seriously affects the ecological environment and poses a threat to public health. Therefore, smog control has become a key task in China, which requires reliable prediction.Design/methodology/approachThis paper establishes a novel time-lag GM(1,N) model based on interval grey number sequences. Firstly, calculating kernel and degree of greyness of the interval grey number sequence respectively. Then, establishing the time-lag GM(1,N) model of kernel and degree of greyness sequences respectively to obtain their values after determining the time-lag parameters of two models. Finally, the upper and lower bounds of interval grey number sequences are obtained by restoring the values of kernel and degree of greyness.FindingsIn order to verify the validity and practicability of the model, the monthly concentrations of PM2.5, SO2 and NO2 in Beijing during August 2017 to September 2018 are selected to establish the time-lag GM(1,3) model for kernel and degree of greyness sequences respectively. Compared with three existing models, the proposed model in this paper has better simulation accuracy. Therefore, the novel model is applied to forecast monthly PM2.5 concentration for October to December 2018 in Beijing and provides a reference basis for the government to formulate smog control policies.Practical implicationsThe proposed model can simulate and forecast system characteristic data with the time-lag effect more accurately, which shows that the time-lag GM(1,N) model proposed in this paper is practical and effective.Originality/valueBased on interval grey number sequences, the traditional GM(1,N) model neglects the time-lag effect of driving terms, hence this paper introduces the time-lag parameters into driving terms of the traditional GM(1,N) model and proposes a novel time-lag GM(1,N) model.

scholarly journals E-banking in Colombia: factors favouring its acceptance, online trust and government support

2018 ◽  
Vol 36 (1) ◽  
pp. 170-183 ◽  
Author(s):  
Javier A. Sánchez-Torres ◽  
Francisco-Javier Arroyo Canada ◽  
Alexander Varon Sandoval ◽  
James-Ariel Sánchez Alzate
Keyword(s):  
Positive Impact ◽  
Government Support ◽  
Consumer Trust ◽  
Electronic Banking ◽  
Content Type ◽  
Proposed Model ◽  
Private Banks ◽  
Online Behaviour ◽  
The Government ◽  
The Impact

Purpose The purpose of this paper is to examine the adoption of e-banking in Colombia, including a comprehensive analysis of consumer trust in this type of transaction and of the impact of the current government policy to promote e-commerce. Design/methodology/approach An empirical investigation based on the UTAUT2 model collected data from throughout the country to develop 600 online questionnaires. Findings The proposed model was validated in that the factors hypothesised to build trust in the use of electronic banking were shown to be significant: trust, performance expectancy and effort expectancy had a positive impact on the use of financial websites in Colombia, while government support did not have a significant impact. Research limitations/implications The study explains the antecedents to trust, as well as the government support variable, and concludes by producing a model that is highly successful in predicting financial customers’ online behaviour. Practical implications The results can help Colombia’s Government and private banks to further develop trust and other conditions necessary for e-banking. Social implications Studies on the adoption of electronic banking provide users of these services solutions for their needs. Government policies to support the development of e-banking are not viewed favourably by Colombians. Originality/value This study is one of the first to present empirical findings on the acceptance of e-banking in Latin America; it further presents a model that integrates the most important variables needed for an analysis of the acceptance of e-banking.

scholarly journals A Conceptual Model for a Safety-Based Theory of Lean Construction

Buildings ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 23 ◽  
Author(s):  
Soheila Moaveni ◽  
Seyed Banihashemi ◽  
Mohammad Mojtahedi
Keyword(s):  
Conceptual Model ◽  
Construction Projects ◽  
Project Managers ◽  
Lean Construction ◽  
Project Delivery ◽  
New Approach ◽  
Factors Affecting ◽  
Work Related ◽  
Proposed Model ◽  
Optimal Value

The construction industry is one of the most fatal industries, so it is important to pay more attention to safety solutions. Even though work-related accidents are known as a major waste in construction projects, little attention has been paid so far to incorporating safety into the lean construction framework. In this research, lean construction theory is reviewed through the lens of safety. That being so, the identified challenges in previous research on improving safety in construction projects are categorized, and those related to the concept of lean project delivery are introduced. Then, the principles of the lean construction framework are explained, and the relevant changes for incorporating safety into the framework are introduced and discussed. The proposed model includes a new approach to the Transformation-Flow-Value framework, in order to pay particular attention to safety in construction projects as one of the factors affecting the success of projects, and achieving optimal value for stakeholders. It is expected that this hybrid model would further enrich the lean construction framework. The careful attention of project executives to this model may improve the safety situation in construction projects. The conceptual model presented in this study can be used in the decision making process for project managers as well as research into optimization of safety costs, and eliminating waste (including models for optimizing the movement of machinery, controlling and reducing rework, and designing the site layout).

A multi-agent-based online opinion dissemination model for China’s crisis information release policy during hazardous chemical leakage emergencies into rivers

2017 ◽  
Vol 41 (4) ◽  
pp. 537-557 ◽  
Author(s):  
Lean Yu ◽  
Ling Li ◽  
Ling Tang ◽  
Wei Dai ◽  
Chihab Hanachi
Keyword(s):  
Policy Implications ◽  
Content Type ◽  
Agent Based ◽  
Information Release ◽  
Hazardous Chemical ◽  
Release Policy ◽  
Proposed Model ◽  
Multi Agent ◽  
The Government ◽  
False News

Purpose The purpose of this paper is to develop a multi-agent-based simulation model for the online opinion dissemination during hazardous chemical leakage emergencies into rivers in China, to explore an appropriate crisis information release policy of China’s government for controlling public panic. Design/methodology/approach In the proposed model, two fundamental attributes of crisis information, i.e., truthfulness (for true or false news) and attitude (for positive, neutral or negative opinion), are considered. Four major agents in the online community system, i.e., citizens, the government, media and opinion leaders, are included. Using four typical accidents of hazardous chemical leakage into rivers in China as case studies, insightful policy implications can be obtained for crisis management and panic control. Findings The news about the terrible potential damages from such a type of accidents will instantly arise wide-ranging public panic; therefore, the corresponding crisis information release policy should be carefully designed. It is strongly advised against publishing false news to temporarily conceal the accidents, which will seriously hurt the government’s reputation and agitate much larger-scale public panic in terms of degree and duration. To mitigate public panic, the true news especially about treatment measurements should be published immediately. If the government does nothing and releases no crisis information, the public panic will go out of control. Research limitations/implications This paper only focuses on the crisis information release policies from the perspectives of the government. Furthermore, this study especially focuses on the cases in China, and extending the proposed model study for general contexts is an important direction to improve this study. Finally, the proposed model should be extended to other types of emergencies to further justify its generalization and universality, especially various natural catastrophes like storms, floods, tsunamis, etc. Originality/value This paper develops a multi-agent-based model for online public opinion dissemination in emergency to explore an appropriate crisis information release policy for controlling public panic stemming from hazardous chemicals leakage accidents into rivers. The proposed model makes major contributions to the literature from two perspectives. First, the crisis information about emergency accidents are divided into true and false news based on the truthfulness attribute, and into neutral, positive and negative emotions based on the attitude attribute. Second, the proposed model covers the main agents in the online virtual community.

Effect of aligning conductive particles on the piezoresistivity of composites

Sensor Review ◽  
2015 ◽  
Vol 35 (1) ◽  
pp. 43-50 ◽  
Author(s):  
Huigang Xiao ◽  
Min Liu ◽  
Jinbao Jiang
Keyword(s):  
Theoretical Model ◽  
Design Methodology ◽  
Strain Sensor ◽  
Conductive Network ◽  
New Approach ◽  
Content Type ◽  
The People ◽  
Proposed Model ◽  
Conductive Particles ◽  
External Strain

Purpose – The purpose of this paper is to study the effect of alignment of conductive particles on the piezoresistivity of composite based on a theoretical model. The piezoresistivity of composite is associated with the characteristics of conductive network formed by the conductive particles distributed in the composite, which can be changed through aligning the conductive particles. Design/methodology/approach – The orientations of the tunnel resistors formed by each two adjacent conductive particles are dependent on the aligned level of the conductive particles, and different orientations induce different deformations for a tunnel resistor under external strain, which determines the piezoresistivity of the composites. To investigate the resistance behavior of composites with various characteristics of conductive networks, a piezoresistivity model is developed in this paper by considering the aligned level of conductive particles. Findings – The results obtained from the proposed piezoresistivity model indicate that the sensitivity and stability of composites can be enhanced through aligning the conductive particles. Also, the piezoresistivity of composites filled with randomly distributed conductive particles is isotropic, and it turns to be anisotropic when the conductive particles are aligned. Originality/value – The change and its mechanism of the piezoresistivity upon the aligned level of conductive particles have been pointed out in this paper based on the proposed model. The achievement of this paper will help the people understand, predict and optimize the piezoresistivity of composites, and provide a new approach to design a strain sensor based on the piezoresistivity.

Public guarantees for mitigating interest rate risk in PPP projects

2019 ◽  
Vol 9 (2) ◽  
pp. 248-261 ◽  
Author(s):  
Roberta Pellegrino ◽  
Nunzia Carbonara ◽  
Nicola Costantino
Keyword(s):  
Interest Rate ◽  
Real Option ◽  
Interest Rate Risk ◽  
Quantitative Model ◽  
Negotiation Process ◽  
Content Type ◽  
Toll Road ◽  
Optimal Value ◽  
The Government ◽  
The Interest Rate

Purpose The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap, namely the maximum interest rate above which the private investor will obtain reimbursement from the government, which balances the interests of the parties involved in the project. Design/methodology/approach The mechanism underlying the MIRG is modeled through real options. Monte Carlo simulation is employed as the option-pricing method. The resulting real option-based model is applied to the case of the “Camionale di Bari” toll road (Southern Italy). Findings The application provides some insights for the policy maker called to define the proper forms of guarantees. Furthermore, the results support the negotiation process, allowing the different actors to structure the guarantee in a way that satisfies all the parties and fairly allocates risks between them according to different operational and financial conditions. Originality/value The novelty of the contribution is triple. First, the authors advance the state of the art on government supports by focusing on the interest rate guarantee. Second, the authors enrich the existing studies on MIRG by proposing a quantitative model to set the guarantee in compliance with the public–private win-win principle. The developed real option-based model supports the decision maker in finding the optimal value of the interest rate cap, which is able to satisfy the interests of the parties involved in the project. Third, the authors consider not only the private sponsor and the government, as traditionally made by the models developed for other guarantees, but also the lender.

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