scholarly journals Innovative Investment Models with Frequent Payments of Tax on Income and of Interest on Debt

Mathematics ◽  
2021 ◽  
Vol 9 (13) ◽  
pp. 1491
Author(s):  
Peter Brusov ◽  
Tatiana Filatova ◽  
She-I Chang ◽  
George Lin
Keyword(s):  
Investment Project ◽  
Investment Strategy ◽  
Equity Capital ◽  
Investment Projects ◽  
Planning And Control ◽  
Debt Capital ◽  
Economic Practice ◽  
And Control ◽  
Investment Models

New modern investment models are created to be as close as possible to real investment conditions. We consider long-term as well as arbitrary duration models with payments of interest on debt and of tax on income a few times per year (semi-annually, quarterly and monthly), which could be applied in real economic practice. Their verification will lead to the creation of a comprehensive system of adequate and correct assessment of the effectiveness of the company’s investment program and its investment strategy. One of the most important elements of calculating the effectiveness of investment projects is the assessment of the discount rate, the calculation methods of which are generalized for the real conditions of the implementation of investment projects. We consider the effectiveness of the investment project from two points of view: the equity owners and the owners of equity and debt. NPV for each of these cases is calculated by two different methods: with the separation of credit and investment flows (and thus discounting the flows using two different rates) and without such separation (with discounting of both flows using the same rate, and WACC can be chosen as the rate). Numerical calculations, conducted for four investment models (without flow separation) show that: (1) in the case of considering the effectiveness of an investment project for owners of equity capital, the increase in the number of payments of tax on income and of interest on debt p leads to a decrease in NPV: this means that the effectiveness of an investment project decreases with p; (2) in the case of considering the effectiveness of an investment project for owners of equity and debt capital, the increase in the number of payments of tax on income and of interest on debt p leads to an increase in NPV: this means that the effectiveness of an investment project increases with p. In the former case, companies should pay tax on profit and interest on debt once per year, while in the latter case, more frequent payments are profitable for the effectiveness of investment. Eight innovative investment models created in this paper can assist decision-makers in the optimal design, planning and control of company investments and the development of a company’s investment strategy.

Intertemporal impulsivity can also arise from persistent failure of long-term plans

2017 ◽  
Vol 40 ◽  
Author(s):  
Nisheeth Srivastava ◽  
Narayanan Srinivasan
Keyword(s):  
Socioeconomic Status ◽  
Low Socioeconomic Status ◽  
Social Utility ◽  
Low Ses ◽  
Low Socioeconomic ◽  
Planning And Control ◽  
Intertemporal Discounting ◽  
And Control ◽  
Control Failures

AbstractWe suggest that steep intertemporal discounting in individuals of low socioeconomic status (SES) may arise as a rational metacognitive adaptation to experiencing planning and control failures in long-term plans. Low SES individuals' plans fail more frequently because they operate close to budgetary boundaries, in turn because they consistently operate with limited budgets of money, status, trust, or other forms of social utility.

Real Versus Sample-Based Differences in Comparative Family Business Research

2005 ◽  
Vol 18 (3) ◽  
pp. 229-246 ◽  
Author(s):  
Ann Jorissen ◽  
Eddy Laveren ◽  
Rudy Martens ◽  
Anne-Mie Reheul
Keyword(s):  
Management Training ◽  
Business Research ◽  
Planning And Control ◽  
Versus Sample ◽  
And Gender ◽  
Educational Degree ◽  
And Control ◽  
The Impact ◽  
Perceived Environmental Uncertainty

This article analyzes the impact of not controlling for “demographic sample” differences on research results in the area of comparative family/nonfamily business research. Using different statistical methods with and without control for “demographic sample” differences, the results show that controlling for these firm demographics in a bivariate as well as a multivariate framework is very important to discover “real” differences between family and nonfamily firms. We found “real” differences for export, budgeting, variable reward systems, profitability and gender, educational degree, and tenure of the CEO. Strategy, networking, long-term planning and control systems, perceived environmental uncertainty, growth, and management training, classified by prior empirical research as different between family and nonfamily firms, do not differ.

Activity Situation Analysis for Production of Furniture Businesses

2017 ◽  
Vol 7 (1) ◽  
pp. 8
Author(s):  
Mehmet Çolak ◽  
Tahsin Çetin
Keyword(s):  
Production Planning ◽  
Feasibility Studies ◽  
Production Planning And Control ◽  
Time Analysis ◽  
Situation Analysis ◽  
Planning And Control ◽  
Professional Management ◽  
Construction Machine ◽  
And Control

One of the greatest problems of developing countries is that they have limited sources. What is hold should be optimally used as enrichment of sources and it requires a variety of long-term measures. Economic development of a country is merely possible with increase of production and income. With this study, production planning and control which is an irreplaceable function of production in businesses and of which requirement is felt more with time, analysis of activities and formation of substructure (field, construction, machine, personnel, market etc.) conditions for establishing a new furniture factory are enabled. Within this scope, feasibility studies should be conducted in detail for systematic functioning during establishment of the factory. 73% of said businesses state that they perform production planning, however it is of consideration that there are only a few utilizing professional management organization. It is inevitable that said businesses contribute to the sector in case of commencing mass production by overcoming financial deficiencies and adopting a way of increasing their capacities.

scholarly journals Time Horizon, Costs of Equity Capital, and Generic Investment Strategies of Firms

2007 ◽  
Vol 20 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Thomas Zellweger
Keyword(s):  
Default Risk ◽  
Time Horizon ◽  
Family Firms ◽  
Economic Value ◽  
Equity Capital ◽  
Investment Strategies ◽  
Cost Of Equity Capital ◽  
Short Term ◽  
Investment Projects

Recent literature (McNulty, Yeh, Schulze, & Lubatkin, 2002) states that the assumptions behind the capital asset pricing model, in particular the irrelevance of time horizon, do not correspond to the characteristics of firms that prefer long-term investment horizons. I show that family firms display a longer time horizon than most of their nonfamily counterparts, since (1) family firms display a longer CEO tenure, (2) this type of firm strives for long-term independence and succession within the family, and (3) due to the fact that family firms are overrepresented on western European stock markets in cyclical industries in which business cycles inhibit short-term success. As the annual default risk of an investment diminishes with increasing holding period (Hull, 2003), the risk-equivalent cost of equity capital of firms with longer planning horizons (e.g., family firms) can be lower as well. Based on the assumption that economic value to shareholders is created when firms invest in projects with returns above the associated cost of capital (Copeland, Koller, & Murrin, 2000), I argue that long-term-oriented firms can tackle unique investment projects represented by two generic investment strategies—the perseverance and the outpacing strategy. The first one, the perseverance strategy, represents investment strategies in which long-term-oriented firms invest in lower return but equal risk projects than their more short-term-oriented counterparts. The second one, the outpacing strategy, comprises investment projects with higher risk and equal return than the short-term competitors.

scholarly journals Activity situation analysis for production of furniture businesses

2019 ◽  
Vol 9 (1) ◽  
pp. 1-7
Author(s):  
Mehmet Colak ◽  
Tahsin Cetin
Keyword(s):  
Production Planning ◽  
Furniture Industry ◽  
Production Planning And Control ◽  
Time Analysis ◽  
Situation Analysis ◽  
Planning And Control ◽  
Professional Management ◽  
Construction Machine ◽  
And Control

One of the greatest problems of developing countries is that they have limited sources. What is hold should be optimally used as enrichment of sources and it requires a variety of long-term measures. Economic development of a country is merely possible with increase of production and income. In this study, production planning and control which is an irreplaceable function of production in businesses and of which requirement is felt more with time, analysis of activities and formation of substructure (field, construction, machine, personnel, market, etc.) conditions for establishing a new furniture factory are explained. Seventy-three percent of said businesses state that they perform production planning; however, it is of consideration that there are only a few utilising professional management organisations. It is inevitable that said businesses contribute to the sector in case of commencing mass production by overcoming financial deficiencies and adopting a way of increasing their capacities. Keywords: Furniture industry, production planning, SMES, production.

SUSTAINABILITY ASPECT OF TOURISM DEVELOPMENT IN THE EAST AUKŠTAITIJA REGION, IN LITHUANIA

2019 ◽  
Vol 6 ◽  
pp. 420
Author(s):  
Ramutė Narkūnienė
Keyword(s):  
Development Strategy ◽  
Local Politics ◽  
Sustainable Tourism ◽  
Tourism Development ◽  
Development Planning ◽  
Regional Level ◽  
Sustainable Tourism Development ◽  
Planning And Control ◽  
And Control

The author of the paper discusses the tourism development from the sustainability aspect in the East Aukštaitija region, in Lithuania. The scientific problem - the tourism development trends have not been sufficiently studied at regional level in Lithuania and tourism in the regions developed without a clear long-term development strategy and consistent implementation of the programme. The aim of the research is to explore tourism development by sustainability aspect in the East Aukštaitija region, in Lithuania. Many scientists have analysed trends in sustainable tourism development. However, tourism development conditions at region level have not been researched, only sporadic research studies have been performed. The main problems of tourism development in the aspect of sustainability in the East Aukštaitija region are as follows: seasonality, lack of investment in sustainable tourism, lack of knowledge about the essence of sustainable tourism and the principles of local politics, undeveloped infrastructure. The most important activities for the development of sustainable tourism are the responsible tourist approach to the use of natural resources; investment in sustainable tourism development; tourism development, planning and control; legalization of sustainable tourism development in national strategic documents.

scholarly journals A Fast Integrated Planning and Control Framework for Autonomous Driving via Imitation Learning

2018 ◽  
Author(s):  
Liting Sun ◽  
Cheng Peng ◽  
Wei Zhan ◽  
Masayoshi Tomizuka
Keyword(s):  
Nonlinear Models ◽  
Autonomous Driving ◽  
Optimization Methods ◽  
Imitation Learning ◽  
Short Term ◽  
Model Based ◽  
Planning And Control ◽  
And Control ◽  
Optimal Driving

Safety and efficiency are two key elements for planning and control in autonomous driving. Theoretically, model-based optimization methods, such as Model Predictive Control (MPC), can provide such optimal driving policies. Their computational complexity, however, grows exponentially with horizon length and number of surrounding vehicles. This makes them impractical for real-time implementation, particularly when nonlinear models are considered. To enable a fast and approximately optimal driving policy, we propose a safe imitation framework, which contains two hierarchical layers. The first layer, defined as the policy layer, is represented by a neural network that imitates a long-term expert driving policy via imitation learning. The second layer, called the execution layer, is a short-term model-based optimal controller that tracks and further fine-tunes the reference trajectories proposed by the policy layer with guaranteed short-term collision avoidance. Moreover, to reduce the distribution mismatch between the training set and the real world, Dataset Aggregation is utilized so that the performance of the policy layer can be improved from iteration to iteration. Several highway driving scenarios are demonstrated in simulations, and the results show that the proposed framework can achieve similar performance as sophisticated long-term optimization approaches but with significantly improved computational efficiency.

Assessment of Wounding at Two Commercially Thinned Jack Pine Sites

1992 ◽  
Vol 9 (2) ◽  
pp. 43-46 ◽  
Author(s):  
John A. McLaughlin ◽  
Reino E. Pulkki
Keyword(s):  
Jack Pine ◽  
Term Effect ◽  
Diameter Growth ◽  
Skilled Workers ◽  
Planning And Control ◽  
Long Term Effect ◽  
Highly Skilled ◽  
Tree Length ◽  
And Control

Abstract The long-term effect of thinning on extent of aboveground wounding and effect of wounding on dbhob growth at two commercially thinned jack pine sites near Chapleau, Ontario, was studied. Conventional shortwood logging was used to strip-thin the Nimitz site in 1970. The Dupuis site was strip-thinned in 1973 with a Timberjack RW-30 tree-length harvester. The proportions of trees with wounds were significantly higher (P < 0.01) in the thinned areas: Nimitz thinned, 13.9%; Nimitz unthinned, 3.6%; Dupuis thinned, 18 7%; and Dupuis unthinned, 7.5%. The logging system employed did not appear to affect overall wounding; however, there were significantly (P < 0.05) more deep wounds in the conventional shortwood thinned area. The differences between dbhob of wounded and nonwounded trees in thinned and unthinned areas at the Nimitz and Dupuis sites were contradictory and statistically insignificant. Wounding may be more important as an infection court for fungi than for its effect on overall diameter growth. The extent of wounding emphasizes the need for good planning and control, and the use of highly skilled workers. North. J. Appl. For. 9(2):43-46.

scholarly journals Effectiveness of Capital Structure on Profitability- IT Companies Perspective

2019 ◽  
Vol 9 (1) ◽  
pp. 726-728
Keyword(s):  
Capital Structure ◽  
Vital Role ◽  
Equity Capital ◽  
Debt Capital ◽  
Debt Finance ◽  
Pros And Cons ◽  
Integral Element ◽  
Day To Day Operations ◽  
Retained Earnings

Every company needs money or capital not only for its establishment but also for day to day operations. In order to acquire the money or capital a company will have its own variety sources that can be elucidated by capital structure. There are two ways or sources for financing a firm i.e. debt finance and equity finance also known as debt and equity capital. Debt Capital comes from bonds, debentures, long term notes payable etc. whereas equity capital comes from stock/shares may be equity or preference, retained earnings etc. Working capital is also a part of capital structure. Each category has its own pros and cons. Decisions related to finance is the integral element of any company. In this connection, the finance manager plays a vital role in arriving at a decision. He is always in dilemma that which proportion of capital leads to optimum utilization of funds. The widely accepted solution is a combination of equity capital and debt capital. Generally capital structure is formulated as per the interest of equity share holders. Hence rather than collecting funds totally from share holders, it is better to have a long term loan also, even though it is an expense to the company, this method is followed by many companies. This research paper primarily focuses on effectiveness of capital structure on profitability of Information Technology (IT) firms in India.

scholarly journals Planning, Accounting and Control as Risk Management Tools for Small Business Investment Projects

2021 ◽  
Vol 5 (5) ◽  
pp. 650-666
Author(s):  
Svitlana Bondarenko ◽  
Natalya Shlafman ◽  
Nataliia Kuprina ◽  
Olga Kalaman ◽  
Olena Moravska ◽  
...  
Keyword(s):  
Risk Management ◽  
Early Warning ◽  
Small Businesses ◽  
Negative Impact ◽  
Warning System ◽  
Investment Project ◽  
Investment Projects ◽  
Management Actions ◽  
Methodological Approaches ◽  
And Control

The purpose of this study is to develop scientifically sound proposals and recommendations for the implementation of planning, accounting and control tools in risk management of investment projects of small businesses. The relevance of this study is due to the need to provide small businesses with effective methods of risk management of the investment project, which can significantly reduce the negative impact of risk factors and achieve a significant effect from the investment. To achieve the goal of the study, methodological approaches were used to assess the risk sustainability of the enterprise, based on the assessment of the resource potential of the enterprise. A system of indicators is proposed to assess the quality of enterprise resources. Theoretical and methodological approaches to the formation of an early warning system in risk management have been developed. The proposed concept of indicative management includes tools for indicative control of investment projects in relation to the risk sustainability of the enterprise from the standpoint of its resource provision. Risks in this case become key indicators to which management actions should be directed. The introduction of a risk passport is proposed as a tool for early warning of crisis phenomena in small enterprises. The authors proved that the risk prevention system should be integrated into the overall organizational structure and become part of the enterprise management system. Indicative management is proposed as a tool for implementing functional strategies to prevent or eliminate threats and maximize their strengths and capabilities. Doi: 10.28991/esj-2021-01302 Full Text: PDF

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