Transaction Cost Analysis of PPP Risk Share

PPP (Public Private Partnerships) is a new operation mode of infrastructure projects, which usually undergo long periods and have various kinds of risks in technology, market, politics, policy, finance, society, natural conditions and cooperation. So the government and the private agency should establish the risk-sharing mechanism to ensure the successful implementation of the project. As an important branch of the new institutional economics, transaction cost economics and its analysis method have been proved to be beneficial to the proper allocation of risks between the two parts in PPP projects and the improvement of operation efficiency of PPP risk-sharing mechanism. This paper analyzed the transaction cost of the projects risk-sharing method and the both risk carriers. It pointed out that the risk-sharing method of PPP projects not only reflected the spirit of cooperation between public sector and private agency, but also minimized the total transaction cost of the risk sharing mechanism itself. Meanwhile, the risk takers had to strike a balance between the beforehand cost and the afterwards cost so as to control the cost of risk management. The paper finally suggested three ways which might be useful to reduce the transaction cost: to choose appropriate type of contract of PPP risk-sharing mechanism, to prevent information asymmetry and to establish mutual trust between the two participants.

Violence Profiles on International TV News

Journalism has achieved a crucial importance as a social institution linked with the notion of the public interest. It is still doing so but is nevertheless increasingly challenged by getting networked with the interested publics. This becomes more apparent in times when the media repertoires and audiences as such are changing, when the public relies on more than one news source for the transmission and formulation of world events, but when the importance of TV news nevertheless remains relatively stable. Against this backdrop we may ask what publics contribute to or take away from the new plethora of images and stories saturating the media? This article gives an approximate answer by drawing on a comparative analysis of the present-day presentations of violence on British, German, and Russian television news. Violence in the media is not a new phenomenon, as age-old literary masterpieces like Homer’s Odyssey show, but it is still a very popular one, especially in the news. This article highlights trans-national and national elements in the reporting of violence in three different news cultures. At first glance, both the substantial cross-national violence news flow and the cross-national visual violence flow (key visuals) may be interpreted as distinctly trans-national elements. Event-related textual analysis, however, reveals how the historical rootedness of nations and their specific symbols of power are still very much manifested in respective television mediations of violence. In conclusion, this study recommends the pursuit of conscientious comparisons in journalist research and practice in order to understand what violence news convey in the different arenas of present-day newsmaking.

Metaheuristic approaches to the hybrid flow shop scheduling problem with a cost-related criterion

In the paper, the flow-shop scheduling problem with parallel machines at each stage (machine center) is studied. For each job its release and due date as well as a processing time for its each operation are given. The scheduling criterion consists of three parts: the total weighted earliness, the total weighted tardiness and the total weighted waiting time. The criterion takes into account the costs of storing semi-manufactured products in the course of production and ready-made products as well as penalties for not meeting the deadlines stated in the conditions of the contract with customer. To solve the problem, three constructive algorithms and three metaheuristics (based one Tabu Search and Simulated Annealing techniques) are developed and experimentally analyzed. All the proposed algorithms operate on the notion of so-called operation processing order, i.e. the order of operations on each machine. We show that the problem of schedule construction on the base of a given operation processing order can be reduced to the linear programming task. We also propose some approximation algorithm for schedule construction and show the conditions of its optimality.

Responding to sustainability challenge and cost implications in highway construction projects

Highway construction often requires a significant capital input; therefore it often causes serious financial implications for developers, owners and operators. The recent industry-wide focus on sustainability has added a new dimension to the evaluation of highway projects, particularly on the economical scale of ‘going green’. Comprehensive analysis of the whole-of-life highway development that responds to sustainability challenges is one of the primary concerns for stakeholders. Principles of engineering economics and life cycle costing have been used to determine the incremental capacity investments for highway projects. However, the consideration of costs and issues associated with sustainability is still very limited in current studies on highway projects. Previous studies have identified that highway project investments are primarily concerned with direct market costs that can be quantified through life cycle costing analysis (LCCA). But they tend to ignore costs that are difficult to calculate, as those related to environmental and social elements. On a more positive note, these studies proved that the inclusion of such costs is an essential part of the overall development investment and a primary concern for decision making by the stakeholders. This paper discusses a research attempt to identify and categorise sustainability cost elements for highway projects. Through questionnaire survey, a set of sustainability cost elements on highway projects has been proposed. These cost elements are incorporated into the extension of some of the existing Life Cycle Costing Analysis (LCCA) models in order to produce a holistic financial picture of the highway project. It is expected that a new LCCA model will be established to serve as a suitable tool for decision making for highway project stakeholders.

Low-Cost vision-based AUV guidance system for reef navigation

Ensuring the long term viability of reef environments requires essential monitoring of many aspects of these ecosystems. However, the sheer size of these unstructured environments (for example Australia’s Great Barrier Reef pose a number of challenges for current monitoring platforms which are typically remote operated and required significant resources and infrastructure. Therefore, a primary objective of the CSIRO robotic reef monitoring project is to develop and deploy a large number of AUV teams to perform broadscale reef surveying. In order to achieve this, the platforms must be cheap, even possibly disposable. This paper presents the results of a preliminary investigation into the performance of a low-cost sensor suite and associated processing techniques for vision and inertial-based navigation within a highly unstructured reef environment.

Low-cost flight control system for a small autonomous helicopter

In this paper we describe a low-cost flight control system for a small (60 class) helicopter which is part of a larger project to develop an autonomous flying vehicle. Our approach differs from that of others in not using an expensive inertial/GPS sensing system. The primary sensors for vehicle stabilization are a low-cost inertial sensor and a pair of CMOS cameras. We describe the architecture of our flight control system, the inertial and visual sensing subsystems and present some flight control results.

Low moisture mud from solid bowl decanters

The high moisture content of mill mud (typically 75–80% for Australian factories) results in high transportation costs for the redistribution of mud onto cane farms. The high transportation cost relative to the nutrient value of the mill mud results in many milling companies subsidising the cost of this recycle to ensure a wide distribution across the cane supply area. An average mill would generate about 100 000 t of mud (at 75% moisture) in a crushing season. The development of mud processing facilities that will produce a low moisture mud that can be effectively incorporated into cane land with existing or modified spreading equipment will improve the cost efficiency of mud redistribution to farms; provide an economical fertiliser alternative to more farms in the supply area; and reduce the potential for adverse environmental impacts from farms. A research investigation assessing solid bowl decanter centrifuges to produce low moisture mud with low residual pol was undertaken and the results compared to the performance of existing rotary vacuum filters in factory trials. The decanters were operated on filter mud feed in parallel with the rotary vacuum filters to allow comparisons of performance. Samples of feed, mud product and filtrate were analysed to provide performance indicators. The decanter centrifuge could produce mud cakes with very low moistures and residual pol levels. Spreading trials in cane fields indicated that the dry cake could be spread easily by standard mud trucks and by trucks designed specifically to spread fertiliser.

Investigating international accounting standard setting : the black box of IFRS 6

This paper examines the role of powerful entities and coalitions in shaping international accounting standards. Specifically, the focus is on the process by which the International Accounting Standards Board (IASB) developed IFRS 6, Exploration for and Evaluation of Mineral Resources. In its Issues Paper, the IASB recommended that the successful efforts method be mandated for pre-production costs, eliminating the choice previously available between full cost and successful efforts methods. In spite of the endorsement of this view by a majority of the constituents who responded to the Issues Paper, the final outcome changed nothing, with choice being retained. A compelling explanation of this disparity between the visible inputs and outputs of the standard setting process is the existence of a “black box”, in which powerful extractive industries entities and coalitions covertly influenced the IASB to secure their own ends and ensure that the status quo was maintained

Compliance with international financial reporting standards (IFRS) and the value relevance of accounting information in emerging stock markets : evidence from Kuwait

Since the 1960s, the value relevance of accounting information has been an important topic in accounting research. The value relevance research provides evidence as to whether accounting numbers relate to corporate value in a predicted manner (Beaver, 2002). Such research is not only important for investors but also provides useful insights into accounting reporting effectiveness for standard setters and other users. Both the quality of accounting standards used and the effectiveness associated with implementing these standards are fundamental prerequisites for high value relevance (Hellstrom, 2006). However, while the literature comprehensively documents the value relevance of accounting information in developed markets, little attention has been given to emerging markets where the quality of accounting standards and their enforcement are questionable. Moreover, there is currently no known research that explores the association between level of compliance with International Financial Reporting Standards (IFRS) and the value relevance of accounting information. Motivated by the lack of research on the value relevance of accounting information in emerging markets and the unique institutional setting in Kuwait, this study has three objectives. First, it investigates the extent of compliance with IFRS with respect to firms listed on the Kuwait Stock Exchange (KSE). Second, it examines the value relevance of accounting information produced by KSE-listed firms over the 1995 to 2006 period. The third objective links the first two and explores the association between the level of compliance with IFRS and the value relevance of accounting information to market participants. Since it is among the first countries to adopt IFRS, Kuwait provides an ideal setting in which to explore these objectives. In addition, the Kuwaiti accounting environment provides an interesting regulatory context in which each KSE-listed firm is required to appoint at least two external auditors from separate auditing firms. Based on the research objectives, five research questions (RQs) are addressed. RQ1 and RQ2 aim to determine the extent to which KSE-listed firms comply with IFRS and factors contributing to variations in compliance levels. These factors include firm attributes (firm age, leverage, size, profitability, liquidity), the number of brand name (Big-4) auditing firms auditing a firm’s financial statements, and industry categorization. RQ3 and RQ4 address the value relevance of IFRS-based financial statements to investors. RQ5 addresses whether the level of compliance with IFRS contributes to the value relevance of accounting information provided to investors. Based on the potential improvement in value relevance from adopting and complying with IFRS, it is predicted that the higher the level of compliance with IFRS, the greater the value relevance of book values and earnings. The research design of the study consists of two parts. First, in accordance with prior disclosure research, the level of compliance with mandatory IFRS is examined using a disclosure index. Second, the value relevance of financial statement information, specifically, earnings and book value, is examined empirically using two valuation models: price and returns models. The combined empirical evidence that results from the application of both models provides comprehensive insights into value relevance of accounting information in an emerging market setting. Consistent with expectations, the results show the average level of compliance with IFRS mandatory disclosures for all KSE-listed firms in 2006 was 72.6 percent; thus, indicating KSE-listed firms generally did not fully comply with all requirements. Significant variations in the extent of compliance are observed among firms and across accounting standards. As predicted, older, highly leveraged, larger, and profitable KSE-listed firms are more likely to comply with IFRS required disclosures. Interestingly, significant differences in the level of compliance are observed across the three possible auditor combinations of two Big-4, two non-Big 4, and mixed audit firm types. The results for the price and returns models provide evidence that earnings and book values are significant factors in the valuation of KSE-listed firms during the 1995 to 2006 period. However, the results show that the value relevance of earnings and book values decreased significantly during that period, suggesting that investors rely less on financial statements, possibly due to the increase in the available non-financial statement sources. Notwithstanding this decline, a significant association is observed between the level of compliance with IFRS and the value relevance of earnings and book value to KSE investors. The findings make several important contributions. First, they raise concerns about the effectiveness of the regulatory body that oversees compliance with IFRS in Kuwait. Second, they challenge the effectiveness of the two-auditor requirement in promoting compliance with regulations as well as the associated cost-benefit of this requirement for firms. Third, they provide the first known empirical evidence linking the level of IFRS compliance with the value relevance of financial statement information. Finally, the findings are relevant for standard setters and for their current review of KSE regulations. In particular, they highlight the importance of establishing and maintaining adequate monitoring and enforcement mechanisms to ensure compliance with accounting standards. In addition, the finding that stricter compliance with IFRS improves the value relevance of accounting information highlights the importance of full compliance with IFRS and not just mere adoption.

The importance of environmental issues and costs in Life Cycle Cost Analysis (LCCA) for highway projects

Sustainability has been increasingly recognised as an integral part of highway infrastructure development. In practice however, the fact that financial return is still a project’s top priority for many, environmental aspects tend to be overlooked or considered as a burden, as they add to project costs. Sustainability and its implications have a far-reaching effect on each project over time. Therefore, with highway infrastructure’s long-term life span and huge capital demand, the consideration of environmental cost/ benefit issues is more crucial in life-cycle cost analysis (LCCA). To date, there is little in existing literature studies on viable estimation methods for environmental costs. This situation presents the potential for focused studies on environmental costs and issues in the context of life-cycle cost analysis. This paper discusses a research project which aims to integrate the environmental cost elements and issues into a conceptual framework for life cycle costing analysis for highway projects. Cost elements and issues concerning the environment were first identified through literature. Through questionnaires, these environmental cost elements will be validated by practitioners before their consolidation into the extension of existing and worked models of life-cycle costing analysis (LCCA). A holistic decision support framework is being developed to assist highway infrastructure stakeholders to evaluate their investment decision. This will generate financial returns while maximising environmental benefits and sustainability outcome.

International students in Australian universities : gap between student expectations and realities

Australian Universities are very successful in attracting large number of international students. A large proportion of University revenue comes from the full fee paying international students. However, there have been many reports that international students face numerous problems when they arrive in Australia. The common management practice is to provide support staff services to deal with the orientation and welfare of international students. Such service units act as intermediaries between the students and the teaching and learning community of the university. However, the actual experience of international students may be difficult for support staff, counsellors, advisers and academic staff to anticipate. There is little information on the actual experience of students relative to their expectations. This study aimed at securing a deeper understanding of the contextually relevant issues facing by international students in Australian universities in order to develop management strategies aimed at improved teaching and learning outcomes for international students. Using a highly reliable survey questionnaire, a questionnaire survey was conducted among the international students at Queensland University of Technology (QUT), Brisbane, Australia. About 180 engineering students responded in the survey resulting in a response rate of 81%. Results indicate that international students face many difficulties including understanding colloquial language, Australian accent, cost of tuition, feelin isolation, safety, security, health services, accommodation and part time jobs. They also face difficulty in coping with learning methods in Australia, particularly in research report writing. However, they are happy with their lecturers and find them very helpful. Many of the students lacked the information regarding various community groups, recreational and sports facilities in Australia before arriving. Findings of the study show that there is a significant gap between the expectation of the students before coming to Australia and actual experience they experience here. Importantly, there is a lack of coordination between international students, international student services (ISS) and university management and as a consequence there have been little improvement in conditions. There is no direct link between student experience and University management. Many important suggestions arisen from this study and most important suggestion is that the student information system should be integrated with the University enterprise resource planning (ERP) to reduce the huge gap between international student expectation and actual experiences.

International review of computer usage and applications by construction project managers

As computer applications become more available—both technically and economically—construction project managers are increasingly able to access advanced computer tools capable of transforming the role that project managers have typically performed. Competence at using these tools requires a dual commitment in training—from the individual and the firm. Improving the computer skills of project managers can provide construction firms with a competitive advantage to differentiate from others in an increasingly competitive international market. Yet, few published studies have quantified what existing level of competence construction project managers have. Identification of project managers’ existing computer application skills is a necessary first step to developing more directed training to better capture the benefits of computer applications. This paper discusses the yet to be released results of a series of surveys undertaken in Malaysia, Singapore, Indonesia, Australia and the United States through QUT’s School of Construction Management and Property and the M.E. Rinker, Sr. School of Building Construction at the University of Florida. This international survey reviews the use and reported competence in using a series of commercially-available computer applications by construction project managers. The five different country locations of the survey allow cross-national comparisons to be made between project managers undertaking continuing professional development programs. The results highlight a shortfall in the ability of construction project managers to capture potential benefits provided by advanced computer applications and provide directions for targeted industry training programs. This international survey also provides a unique insight to the cross-national usage of advanced computer applications and forms an important step in this ongoing joint review of technology and the construction project manager.

Information sharing with key suppliers : a transaction cost theory perspective

Purpose: The purpose of this paper is to explain variations in discretionary information shared between buyers and key suppliers. The paper also aims to examine how the extent of information shared affects buyers’ performance in terms of resource usage, output, and flexibility. ----- ----- Design/methodology/approach: The data for the paper comprise 221 Finnish and Swedish non-service companies obtained through a mail survey. The hypothesized relationships were tested using partial least squares modelling with reflective and formative constructs.----- ----- Findings: The results of the study suggest that (environmental and demand) uncertainty and interdependency can to some degree explain the extent of information shared between a buyer and key supplier. Furthermore, information sharing improves buyers’ performance with respect to resource usage, output, and flexibility.----- ----- Research limitations/implications: A limitation to the paper relates to the data, which only included buyers.Abetter approach would have been to collect data from both, buyers and key suppliers. Practical implications – Companies face a wide range of supply chain solutions that enable and encourage collaboration across organizations. This paper suggests a more selective and balanced approach toward adopting the solutions offered as the benefits are contingent on a number of factors such as uncertainty. Also, the risks of information sharing are far too high for a one size fits all approach.----- ----- Originality/value: The paper illustrates the applicability of transaction cost theory to the contemporary era of e-commerce. With this finding, transaction cost economics can provide a valuable lens with which to view and interpret interorganizational information sharing, a topic that has received much attention in the recent years.