Board composition, ownership structure and dividend policies in an emerging market: further evidence from CASE 50

Purpose – The purpose of this study is to examine dividend policies in an emerging capital market, in a country undergoing a transitional period. Design/methodology/approach – Using pooled cross-sectional observations from the top 50 listed Egyptian firms between 2003 and 2005, this study examines the effect of board of directors’ composition and ownership structure on dividend policies in Egypt. Findings – It is found that there is a significant positive association between institutional ownership and firm performance, and both dividend decision and payout ratio. The results confirm that firms with a higher return on equity and a higher institutional ownership distribute higher levels of dividend. No significant association was found between board composition and dividend decisions or ratios. Originality/value – This study provides additional evidence of the applicability of the signalling model in the emerging market of Egypt. It was found that despite the high institutional ownership and the closely held nature of the firms, which imply lower agency costs, the payment of higher dividend was considered necessary to attract capital during this transitional period.

Corporate restructuring: empirical evidence from the UK

Corporate restructuring is perceived as a challenge to research. Prior studies do not provide conclusive evidence regarding the effects of restructuring. Since there are discernible findings, this research attempts to examine the effects of restructuring events amongst the UK listed firms. The sample firms are listed in the LSE and London AIM stock exchange. Only completed restructuring transactions are included in the study. The time horizon extends from year 1999 to 2003. A three-year floating window is assigned to examine the sample firms. The key enquiry is to scrutinise the ex post effects of restructuring on performance and value measures of firms with contrast to a matched criteria non-restructured sample. A cross sectional study employing logit estimate is undertaken to examine firm characteristics of restructuring samples. Further, additional parameters, i.e. Conditional Volatility and Asymmetry are generated under the GJR-GARCH estimate and reiterated in logit models to capture time-varying heteroscedasticity of the samples. This research incorporates most forms of restructurings, while prior studies have examined certain forms of restructuring. Particularly, these studies have made limited attempts to examine different restructuring events simultaneously. In addition to logit analysis, an event study is adopted to evaluate the announcement effect of restructuring under both the OLS and GJR-GARCH estimate supplementing our prior results. By engaging a composite empirical framework, our estimation method validates a full appreciation of restructuring effect. The study provides evidence that restructurings indicate non-trivial significant positive effect. There are some evidences that the response differs because of the types of restructuring, particularly while event study is applied. The results establish that performance measures, i.e. Operating Profit Margin, Return on Equity, Return on Assets, Growth, Size, Profit Margin and Shareholders' Ownership indicate consistent and significant increase. However, Leverage and Asset Turn Over suggest reasonable influence on restructuring across the sample period. Similarly, value measures, i.e. Abnormal Returns, Return on Equity and Cash Flow Margin suggest sizeable improvement. A notable characteristic seen coherently throughout the analysis is the decreasing proportion of Systematic Risk. Consistent with these findings, Conditional Volatility and Asymmetry exhibit similar trend. The event study analysis suggests that on an average market perceives restructuring favourably and shareholders experience significant and systematic positive gain.

Board composition, ownership structure and dividend policies in an emerging market: further evidence from CASE 50

Purpose – The purpose of this study is to examine dividend policies in an emerging capital market, in a country undergoing a transitional period. Design/methodology/approach – Using pooled cross-sectional observations from the top 50 listed Egyptian firms between 2003 and 2005, this study examines the effect of board of directors’ composition and ownership structure on dividend policies in Egypt. Findings – It is found that there is a significant positive association between institutional ownership and firm performance, and both dividend decision and payout ratio. The results confirm that firms with a higher return on equity and a higher institutional ownership distribute higher levels of dividend. No significant association was found between board composition and dividend decisions or ratios. Originality/value – This study provides additional evidence of the applicability of the signalling model in the emerging market of Egypt. It was found that despite the high institutional ownership and the closely held nature of the firms, which imply lower agency costs, the payment of higher dividend was considered necessary to attract capital during this transitional period.

Modeling equity market integration using smooth transition analysis:a study of Eastern European stock markets

This paper assesses the extent to which the equity markets of Hungary, Poland the Czech Republic and Russia have become less segmented. Using a variety of tests it is shown there has been a consistent increase in the co-movement of some Eastern European markets and developed markets. Using the variance decompositions from a vector autoregressive representation of returns it is shown that for Poland and Hungary global factors are having an increasing influence on equity returns, suggestive of increased equity market integration. In this paper we model a system of bivariate equity market correlations as a smooth transition logistic trend model in order to establish how rapidly the countries of Eastern Europe are moving away from market segmentation. We find that Hungary is the country which is becoming integrated the most quickly. © 2005 ELsevier Ltd. All rights reserved.

Entry modes and performance of foreign direct investment in China

How does a firm choose a proper model of foreign direct investment (FDI) for entering a foreign market? Which mode of entry performs better? What are the performance implications of joint venture (JV) ownership structure? These important questions face a multinational enterprise (MNE) that decides to enter a foreign market. However, few studies have been conducted on such issues, and no consistent or conclusive findings are generated, especially with respect to China. It’s composed of five chapters, providing corresponding answers to the questions given above. Specifically, Chapter One is an overall introductory chapter. Chapter Two is about the choice of entry mode of FDI in China. Chapter Three examines the relationship between four main entry modes and performance. Chapter Four explores the performance implications of JV ownership structure. Chapter Five is an overall concluding chapter. These empirical studies are based on the most recent and richest data that has never been explored in previous studies. It contains information on 11,765 foreign-invested enterprises in China in seven manufacturing industries in 2000, 10,757 in 1999, and 10,666 in 1998. The four FDI entry modes examined include wholly-owned enterprises (WOEs), equity joint ventures (EJVs), contractual joint ventures (CJVs), and joint stock companies (JSCs). In Chapter Two, a multinominal logit model is established, and techniques of multiple linear regression analysis are employed in Chapter Three and Four. It was found that MNEs, under the conditions of a good investment environment, large capital commitment and small cultural distance, prefer the WOE strategy. If these conditions are not met, the EJV mode would be of greater use. The relative propensity to pursue the CJV mode increases with a good investment environment, small capital commitment, and small cultural distance. JSCs are not favoured by MNEs when the investment environment improves and when affiliates are located in the coastal areas. MNEs have been found to have a greater preference for an EJV as a mode of entry into the Chinese market in all industries. It is also found that in terms of return on assets (ROA) and asset turnover, WOEs perform the best, followed by EJVs, CJVs, and JSCs. Finally, minority-owned EJVs or JSCs are found to outperform their majority-owned counterparts in terms of ROA and asset turnover.

Imagined intergroup contact facilitates intercultural communication for college students on academic exchange programs

Imagined intergroup contact (Crisp & Turner, 2009) is a new cognitive intervention designed to improve intergroup relations. In two studies, we examined whether it could also facilitate intercultural communication among international students and host country natives engaged in a college exchange program. In Study 1, international students who had recently arrived in Italy and participated in an imagined contact session displayed increased self-disclosure toward, and improved evaluation of, host country natives. In Study 2, Italian students mentally simulated positive contact with an unknown native from the host country prior to leaving for the exchange. Results from an online questionnaire administered on their return (on average, more than 7 months after the imagery task) revealed that participants who imagined contact reported spending more time with natives during the stay and enhanced outgroup evaluation, via reduced intergroup anxiety. Implications for enhancing the quality and effectiveness of college student exchange programs are discussed.

Leadership development: the role of developmental readiness, personality dispositions, and individual values

Increased awareness of the crucial role of leadership as a competitive advantage for organisations (McCall, 1998; Petrick, Scherer, Brodzinski, Quinn, & Ainina, 1999) has led to billions spent on leadership development programmes and training (Avolio & Hannah, 2008). However, research reports confusing and contradictory evidence regarding return on investment and developmental outcomes, and a lot of variance has been observed across studies (Avolio, Reichard, Hannah, Walumbwa, & Chan, 2009). The purpose of this thesis is to understand the mechanisms underlying this variability in leadership development. Of the many factors at play in the process, such as programme design and delivery, organisational support, and perceptions of relevance (Mabey, 2002; Day, Harrison, & Halpin, 2009), individual differences and characteristics stand out. One way in which individuals differ is in their Developmental Readiness (DR), a concept recently introduced in the literature that may well explain this variance and which has been proposed to accelerate development (Avolio & Hannah, 2008, 2009). Building on previous work, DR is introduced and conceptualised somewhat differently. In this study, DR is construed of self-awareness, self-regulation, and self-motivation, proposed by Day (2000) to be the backbones of leadership development. DR is suggested to moderate the developmental process. Furthermore, personality dispositions and individual values are proposed to be precursors of DR. The empirical research conducted uses a pre-test post-test quasi-experimental design. Before conducting the study, though, both a measure of Developmental Readiness and a competency profiling measure are tested in two pilot studies. Results do not find evidence of a direct effect of leadership development programmes on development, but do support an interactive effect between DR and leadership development programmes. Personality dispositions Agreeableness, Conscientiousness, and Openness to Experience and value orientations Conservation, Open, and Closed Orientation are found to significantly predict DR. Finally, the theoretical and practical implications of findings are discussed.

A study in Britain and France of the development of cross-cultural in-house sales training using distance learning.

The thesis is concerned with cross-cultural distance learning in two countries: Great Britain and France. Taking the example of in-house sales training, it argues that it is possible to develop courses for use in two or more countries of differing culture and language. Two courses were developed by the researcher. Both were essentially print-based distance-learning courses designed to help salespeople achieve a better understanding of their customers. One used a quantitative, the other qualitative approach. One considered the concept of the return on investment and the other, for which a video support was also developed, considered the analysis of a customer's needs. Part 1 of the thesis considers differences in the training context between France and Britain followed by a review of the learning process with reference to distance learning. Part 2 looks at the choice of training medium course design and evaluation and sets out the methodology adopted, including problems encountered in this type of fieldwork. Part 3 analyses the data and draws conclusions from the findings, before offering a series of guidelines for those concerned with the development of cross-cultural in-house training courses. The results of the field tests on the two courses were analysed in relation to the socio-cultural, educational and experiential background of the learners as well as their preferred learning styles. The thesis argues that it is possible to develop effective in-house sales training courses to be used in two cultures and identifies key considerations which need to be taken into account when carrying out this type of work.

Impact of RFID in reverse logistics

This paper aims to discuss the recent literature on Radio Frequency Identification (RFID) and reverse logistics (RL). Particular attention is applied to the bullwhip effect and its increase as RL activities are integrated into the supply chain. RFID is investigated as a tool to assist with integrating reverse and forward logistics into a seamless supply chain and reduce the bullwhip effect. However, further research is required within this area and in particular the return on investment for RFID-enabled integrated systems.

Implementation challenges of application of radio frequency identification (RFID) in warehouse

Warehouse is an essential component in the supply chain, linking the chain partners and providing them with functions of product storage, inbound and outbound operations along with value-added processes. Allocation of warehouse resources should be efficient and effective to achieve optimum productivity and reduce operational costs. Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used by warehousing and logistic enterprises to achieve reduced shrinkage, improved material handling and tracking as well as increased accuracy of data collection. However, both academics and practitioners express concerns about challenges to RFID adoption in the supply chain. This paper provides a comprehensive analysis of the problems encountered in RFID implementation at warehouses, discussing the theoretical and practical adoption barriers and causes of not achieving full potential of the technology. Lack of foreseeable return on investment (ROI) and high costs are the most commonly reported obstacles. Variety of standards and radio wave frequencies are identified as source of concern for decision makers. Inaccurate performance of the RFID within the warehouse environment is examined. Description of integration challenges between warehouse management system and RFID technology is given. The paper discusses the existing solutions to technological, investment and performance RFID adoption barriers. Factors to consider when implementing the RFID technology are given to help alleviate implementation problems. By illustrating the challenges of RFID in the warehouse environment and discussing possible solutions the paper aims to help both academics and practitioners to focus on key areas constituting an obstacle to the technology growth. As more studies will address these challenges, the realisation of RFID benefits for warehouses and supply chain will become a reality.

RFID adoption issues in the warehouse

In recent years the increased interest in introducing radio frequency technology (RFID) in warehousing was observed. First adopters of RFID reported numerous benefits, which included: reduced shrinkage, real-time tracking and better accuracy of data collection. Along with the academic and industrial discussion on benefits which can be achieved in RFID enabled warehouses there are reports on issues related to adoption of RFID technology in warehousing. This paper reviews results of scientific reports of RFID implementation in warehouses and discusses the adoption barriers and causes of not achieving full potential of the technology. Following adoption barriers are identified and set in warehousing context: lack of forseeable return on investment (ROI), unreliable performance of RFID systems, standarisation, integration with legacy systems and privacy/security concerns. As more studies will address these challenges, the realisation of RFID benefits for warehouses will become reality.

Sustainable energy from paper industry wastes

Secondary fibre paper mills are significant users of both heat and electricity which is mainly derived from the combustion of fossil fuels. The cost of producing this energy is increasing year upon year. These mills are also significant producers of fibrous sludge and reject waste material which can contain high amounts of useful energy. Currently the majority of these waste fractions are disposed of by landfill, land-spread or incineration using natural gas. These disposal methods not only present environmental problems but are also very costly. The focus of this work was to utilise the waste fractions produced at secondary fibre paper mills for the on-site production of combined heat and power (CHP) using advanced thermal conversion methods (gasification and pyrolysis), well suited to relatively small scales of throughput. The heat and power can either be used on-site or exported. The first stage of the work was the development of methods to condition selected paper industry wastes to enable thermal conversion. This stage required detailed characterisation of the waste streams in terms of proximate and ultimate analysis and heat content. Suitable methods to dry and condition the wastes in preparation for thermal conversion were also explored. Through trials at pilot scale with both fixed bed downdraft gasification and intermediate pyrolysis systems, the energy recovered from selected wastes and waste blends in the form of product gas and pyrolysis products was quantified. The optimal process routes were selected based on the experimental results, and implementation studies were carried out at the selected candidate mills. The studies consider the pre-processing of the wastes, thermal conversion, and full integration of the energy products. The final stage of work was an economic analysis to quantify economic gain, return on investment and environmental benefits from the proposed processes.

Managing projects in fast track:a case of public sector organisation in India

Completing projects faster than the normal duration is always a challenge to the management of any project, as it often demands many paradigm shifts. Opportunities of globalization, competition from private sectors and multinationals force the management of public sector organizations in the Indian petroleum sector to take various aggressive strategies to maintain their profitability. Constructing infrastructure for handling petroleum products is one of them. Moreover, these projects are required to be completed in faster duration compared to normal schedules to remain competitive, to get faster return on investment, and to give longer project life. However, using conventional tools and techniques of project management, it is impossible to handle the problem of reducing the project duration from a normal period. This study proposes the use of concurrent engineering in managing projects for radically reducing project duration. The phases of the project are accomplished concurrently/simultaneously instead of in a series. The complexities that arise in managing projects are tackled through restructuring project organization, improving management commitment, strengthening project-planning activities, ensuring project quality, managing project risk objectively and integrating project activities through management information systems. These would not only ensure completion of projects in fast track, but also improve project effectiveness in terms of quality, cost effectiveness, team building, etc. and in turn overall productivity of the project organization would improve.

Project management system for a concurrent engineering framework

Completing projects faster than normal is always a challenge as it often demands many paradigm shifts. Globalization opportunities and competition from private sectors and multinationals are forcing the management of public sector organizations in India's petroleum industry to take various aggressive strategies to maintain profitability. These projects are required to be completed sooner than with a typical schedule to remain competitive, get faster return on investment and give longer project life.