Tax Incentives Policy, Firm Investment, Firm exports, and Gross Output: Panel Econometric Modelling

A panel econometric model consisting of 118,380 firms, spanning 2014 to 2019 was used to determine the impact of tax incentive policy on firm investment, firm gross output, and exports. A two-stage modelling approach was used, first the decision to invest or export was modelled using a binary logit model. In the second phase, the impact of the tax incentives policy was estimated. The decisions to export and invest are marginally driven by tax incentive policy. A shilling given as tax expenditure increases the probability of investing and exporting by 0.018% and 0.48% respectively. The results from the study imply that export and investment-related tax incentives are either redundant or have a negligible impact on their respective target variables.

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

This paper develops a model for the assessment of the maturity of the compliance function of investment firms. The model indicates a path of evolution wherein the compliance function matures from being reactive and inconsistent to becoming a proactive and integrated part of a firm’s business practices. A preliminary case study approach is used to test the practical application of the model in a Norwegian investment firm. The findings generally illustrate the ways in which the effectiveness of the compliance function can be evaluated using a maturity model. When it was used in the assessment of the compliance function within the case firm, the suggested model proved to be compatible with practice. The model represents an improvement framework that can help practitioners identify the status of the compliance function and provide guidance on its future improvement.

Fintech Predictive Modeling and Performance of Investment Firms in Kenya

Predictive analytics is concerned with the prediction of future trends and outcomes. The approaches used to conduct predictive analytics can be classified into machine learning techniques and regression techniques. This study dteremined the influence of fintech predictive modeling on performance of investment firms in Kenya. The study population was 57 investment firms. The study employed mixed method research design by incorporating descriptive and explanatory research designs. Data was collected using questionnaires and an in-depth interview guide. Coefficient of fintech predictive modeling has a positive and significant effect on performance of investment firms. The study concluded that fintech predictive modeling allows investment firms to forecast business growth and customer behaviour chnages. It is important for an investment firm to be able to understand business growth by accurately forecasting future growth and survival. Moreover, it is of vital necessity to understand changes in customer buying/consumption behavior so as to develop products and services that suit their needs and preferences. As a result, predictive modeling is required to project future business growth and changes in customer consumption pattern.

Mind the rent gap: Blackstone, housing investment and the reordering of urban rent surfaces

Recent years have seen a burst of new writing on the opening and closing of urban rent gaps. Such studies generally consider individual cases. Rarely does the opportunity arise to readily compare and contrast rent gaps across multiple cities and territories, least of all within the context of a single developer or investor portfolio. Such an opportunity has arisen in the past decade, however, as the US investment firm Blackstone has pursued a multi-territory housing-investment strategy specifically of identifying and closing rent gaps, which it styles ‘buy it, fix it, sell it’. This article examines that strategy and the varying nature of its implementation in Danish, German, Swedish and US cities. It argues that the rent gap is a paradoxical phenomenon: vast gaps, promising vast profits, frequently open up and frequently remain open for long periods before being closed – if they are closed at all. A primary reason is that successful and profitable closure requires not just favourable local political-economic conditions but a singularly well-funded, determined and aggressive investor – an investor, that is, such as Blackstone.

Investing in the Ugandan dairy sector

Learning outcomes Industry analysis and market attractiveness: Understand how to analyse an industry, using the dairy sector in Uganda as an example and what makes a market attractive for incumbents or future entrants. Value disciplines: Understand and apply the different value disciplines companies can choose from to achieve market-leading positions. Business integration: Understand some of the key benefits of vertical integration and when it may or may not make sense to integrate. Doing business in Africa: Understand the specific generic challenges of doing business in Africa, particularly in the agricultural and manufacturing sectors. Generalisability of frameworks: Realise that the same frameworks that are used to analyse large firms and mature markets can be applied to smaller firms in less developed markets. Case overview/synopsis The case is set in the early months of 2020, as Bernd Schanzenbächer, founder and managing partner of EBG Capital (a Swiss investment firm that manages a multimillion global portfolio of agricultural investments), and his team are deciding whether to invest in a dairy farm in Uganda. The opportunity looks quite interesting and the EBG Capital team believes there is a good fit between the farm owners’ needs, its management team’s objectives and EBG Capital’s strengths and interests. However, the dairy market in Uganda faces many challenges and, while the market-demand fundamentals appear promising, the team wonders if it is the right time to invest. The issue for EBG Capital is to understand what makes the Ugandan dairy industry so challenging and to determine how to fix or mitigate some of the industry’s most pressing problems – given that it will be the firm’s first investment in the country – as well as for deciding where it makes sense to play in the broad value chain (i.e. only in milk production or also in milk processing). Complexity academic level Masters in Business Administration and Executive Education courses. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

INFLUENCE OF LIQUIDITY ON FIRM PROFITABILITY, A CASE OF INVESTMENT FIRMS LISTED IN NAIROBI SECURITIES EXCHANGE (NSE), KENYA

ABSTRACT Liquidity and firm profitability are the critical indicators of the performance of firms in any given sector. Liquidity ratios such as current ratio, cash ratio and quick acid test ratio are used to measure the ability of a firm and meet its short-term maturing obligations. Margin of safety is determined by the level of the ratio. Profitability ratio are concerned with the relative profit and efficiency of utilization of service resources of a business. This study was guided by three specific objectives; the correlation between the current ratio and profitability of investment firms listed in (NSE),Kenya, the correlation between the quick acid test ratio and profitability of investment firms listed in (NSE),Kenya and the correlation between the cash ratio on profitability of investment firm listed in NSE Kenya .Return on Assets (ROA) and Return on Investment (ROI) were used as measures of the performance of listed investment firms in (NSE),Kenya. The study adopted a descriptive research design. The population of the study consisted all the investment firms listed in (NSE).The sampling technique was non-probability sampling technique for the all the investment firms listed in (NSE).The secondary data in the form of the annual reports and Accounts for the years 2014-2018 were be used. Simple correlation analysis was used to test the hypothesis at 10% level of significance. Analysis of data was tabulated and presented using frequency tables' percentages and explanations. A multi linear regression model was used to establish the relationship between independent and Dependent variables. The overall findings of the study indicated that: There is no significant positive correlation .between cash ratio and profitability; there was no definite significant correlation between acid-test ratio and profitability; there was a significant positive correlation between current ratio and profitability. The researcher recommends that corporate entities should not pursue extreme liquidity policies at the expense of their profitability, that is, they should strike a balance between Liquidity and profitability. Key Words: Liquidity, Profitability, Performance, Margin of Safety, ROA, ROI

Forest certification in developing countries: current status and hindrances to its adoption within a macro-framework

Forest certification has been widely hailed for its positive impacts on implementing sustainable forest management. Despite various adjustments to promote its adoption, most of the world's certified forests are in developed countries, with about 87% in Europe and North America. To analyse the reasons for the slow certification uptake in the developing world, two rounds of literature searches were conducted, and the hindrances identified were then discussed under six themes: forest quality, socioeconomic interactions, governance capacity, certification investment, firm expectations and market responses, and risk aversion and the attitude-behaviour gap. Among them, conventional institutions and governance are the most restrictive constraints. Certification, while a non-state form of governance, may not exercise its regulatory power freely through the market without being impeded by the unfavourable contexts in which it takes hold. Finally, recommendations were proposed from the perspectives of politics, legislation, market, and certification schemes to resolve the hindrances in achieving certification.