Global Business and Economics Review http://www.inderscience.com/browse/index.php?journalID=168&year=2012&vol=14&issue=1/2 Inderscience Publishers Ltd en-uk Global Business and Economics Review 1097-4954 1745-1329 © 2012 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/gber_scovergber.jpg http://www.inderscience.com/browse/index.php?journalID=168&year=2012&vol=14&issue=1/2 http://www.inderscience.com/link.php?id=44475 In a world where greenhouse gases (GHG) carry a price, organisations can create financial instruments that are tradable on the carbon market by investing in projects that reduce GHG emissions. The purpose of this study is to critically analyse an investment project from EcoSecurities to mitigate the emissions of methane from a coalmine located in China's Sichuan province. This project generates carbon credits that are later sold to governments and organisations under the Kyoto Protocol. In order to evaluate this investment, we conducted an analysis centred in its net present value, and we take into consideration a set of external variables and the financial and economic situation of EcoSecurities. This study concludes that EcoSecurities project investment, since project's net present value is positive, it has a relevant impact on EcoSecurities strategy and improves the company's financial situation as it increases revenues and improves assets using efficiency. Can sustainable investing generate carbon credits?
João Zambujal-Oliveira
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 5 - 29
In a world where greenhouse gases (GHG) carry a price, organisations can create financial instruments that are tradable on the carbon market by investing in projects that reduce GHG emissions. The purpose of this study is to critically analyse an investment project from EcoSecurities to mitigate the emissions of methane from a coalmine located in China's Sichuan province. This project generates carbon credits that are later sold to governments and organisations under the Kyoto Protocol. In order to evaluate this investment, we conducted an analysis centred in its net present value, and we take into consideration a set of external variables and the financial and economic situation of EcoSecurities. This study concludes that EcoSecurities project investment, since project's net present value is positive, it has a relevant impact on EcoSecurities strategy and improves the company's financial situation as it increases revenues and improves assets using efficiency.

]]> 10.1504/GBER.2012.044475 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 5 - 29 João Zambujal-Oliveira Centre for Management Studies (CEG-IST), Department of Engineering and Management (DEG), Instituto Superior Técnico (IST), Technical University of Lisbon (UTL), Av. Professor Cavaco Silva, 2780-990 Porto Salvo, Portugal investment analysis carbon credits carbon market net present value NPV greenhouse gases GHG carbon trading methane emissions CHina coal mining Kyoto Protocol. 2011-12-26T23:20:50-05:00 14 1/2 5 29 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44476 Domestic tax policies must provide needed revenues for public infrastructure and social programs and must be structured to promote sustainable, growing, vibrant economies where individual rights and living standards are preserved or improved. We propose a macro-financial model be included with traditional financial macroeconomic theory postulating that, among other things, economic activity results from net international trade, inter-country capital flows, aggregate effects of all domestic private and public saving and investment and consumption decisions. We modify Modigliani and Miller's capital structure propositions (Modigliani and Miller, 1958, 1963) by adding government as the third major financial stakeholder where government possesses a stake in the firm because of the potential, just as stockholders, to receive future cash flows. We posit a 'conservation of value' where capital structure and the domestic tax structure have no effect on total firm value; however, affect relative stakeholder values, discount rates, capital investment and flow of capital into and out of a country. Tax policy and macro-finance in a competitive global economy where government is considered as firms' third financial stakeholder
Ronald W. Spahr; Pankaj K. Jain; Fariz Huseynov; Bhavik Rajesh Parikh
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 30 - 66
Domestic tax policies must provide needed revenues for public infrastructure and social programs and must be structured to promote sustainable, growing, vibrant economies where individual rights and living standards are preserved or improved. We propose a macro-financial model be included with traditional financial macroeconomic theory postulating that, among other things, economic activity results from net international trade, inter-country capital flows, aggregate effects of all domestic private and public saving and investment and consumption decisions. We modify Modigliani and Miller's capital structure propositions (Modigliani and Miller, 1958, 1963) by adding government as the third major financial stakeholder where government possesses a stake in the firm because of the potential, just as stockholders, to receive future cash flows. We posit a 'conservation of value' where capital structure and the domestic tax structure have no effect on total firm value; however, affect relative stakeholder values, discount rates, capital investment and flow of capital into and out of a country.

]]> 10.1504/GBER.2012.044476 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 30 - 66 Ronald W. Spahr; Pankaj K. Jain; Fariz Huseynov; Bhavik Rajesh Parikh Department of Finance, Insurance and Real Estate, Fogelman College of Business and Economics, University of Memphis, Memphis, TN 38152-3120, USA. ' Department of Finance, Insurance and Real Estate, Fogelman College of Business and Economics, University of Memphis, Memphis, TN 38152-3120, USA. ' Department of Accounting, Finance and Information Systems, College of Business, North Dakota State University, Dept. 2410, P.O. Box 6050, Fargo, ND 58108-6050, USA. ' Department of Finance, Insurance and Real Estate, Fogelman College of Business and Economics, University of Memphis, Memphis, TN 38152-3120, USA tax structure capital structure government financial stakeholders growth tax policy macrofinance macroeconomic theory stakeholder values discount rates capital investment capital flow. 2011-12-26T23:20:50-05:00 14 1/2 30 66 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44477 Sovereign wealth funds (SWFs) are not new in the global economy. They are funds that are set aside by wealthy nations for the purposes of cross border investments. These funds are primarily generated from traditional sources like the foreign exchange earnings on cash crops, and the tax revenue that accrued from managing the sales and the operation process of these commodities as well as other non-traditional sources such as pension funds and so on. This paper is set out to show the various types of SWF and analyses their purposes and desirability, the limitations and disadvantages of SWF while suggesting some guidelines and rules of engagements in the modus operandi. Indeed, this paper will benefit researchers and scholars of economics, international studies, government policy makers, and also, those who are involved in the management of sovereign wealth funds in various countries around the world. Understanding sovereign wealth funds in the global age
Timothy Adedapo Falade-Obalade; Jacinta Agbarachi Opara
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 67 - 76
Sovereign wealth funds (SWFs) are not new in the global economy. They are funds that are set aside by wealthy nations for the purposes of cross border investments. These funds are primarily generated from traditional sources like the foreign exchange earnings on cash crops, and the tax revenue that accrued from managing the sales and the operation process of these commodities as well as other non-traditional sources such as pension funds and so on. This paper is set out to show the various types of SWF and analyses their purposes and desirability, the limitations and disadvantages of SWF while suggesting some guidelines and rules of engagements in the modus operandi. Indeed, this paper will benefit researchers and scholars of economics, international studies, government policy makers, and also, those who are involved in the management of sovereign wealth funds in various countries around the world.

]]> 10.1504/GBER.2012.044477 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 67 - 76 Timothy Adedapo Falade-Obalade; Jacinta Agbarachi Opara Department of Management, New York Institute of Technology, P.O. Box 840878, Amman 11184, Jordan. ' Universidad Azteca, Chalco, Mexico globalisation sovereign wealth funds SWF assets government policy global economy. 2011-12-26T23:20:50-05:00 14 1/2 67 76 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44478 This paper addresses the problem of portfolio selection under a multifactor asset return model, using Bayesian analysis to deal with uncertainties in parameter estimation and model specification. These sources of error are ignored in the classical mean-variance method. We apply two approaches: the empirical Bayes method, and Bayesian model averaging. The previous literature on Bayesian portfolio selection has paid little attention to the researcher's choice of factors contributing to the asset return prediction. This paper uses a previously published criterion to quantify the predictive power of several candidate models and justify this choice. Using data from the US and Japanese stock markets, a comparative analysis is conducted between the two Bayesian methods and the classical mean-variance method. A major finding pertinent to investors is that the influence of each asset return factor varies with time, depending heavily on the state of the market. Both Bayesian methods perform better than the classical method, but the difference between them is not great. Bayesian portfolio selection under a multifactor asset return model with predictive model selection
Tomohiro Ando
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 77 - 101
This paper addresses the problem of portfolio selection under a multifactor asset return model, using Bayesian analysis to deal with uncertainties in parameter estimation and model specification. These sources of error are ignored in the classical mean-variance method. We apply two approaches: the empirical Bayes method, and Bayesian model averaging. The previous literature on Bayesian portfolio selection has paid little attention to the researcher's choice of factors contributing to the asset return prediction. This paper uses a previously published criterion to quantify the predictive power of several candidate models and justify this choice. Using data from the US and Japanese stock markets, a comparative analysis is conducted between the two Bayesian methods and the classical mean-variance method. A major finding pertinent to investors is that the influence of each asset return factor varies with time, depending heavily on the state of the market. Both Bayesian methods perform better than the classical method, but the difference between them is not great.

]]> 10.1504/GBER.2012.044478 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 77 - 101 Tomohiro Ando Graduate School of Business Administration, Keio University, 4-1-1 Hiyoshi, Kohoku-ku, Yokohama-shi, Kanagawa, 223-8526, Japan Bayesian model averaging empirical Bayes Markov chain Monte Carlo predictive model selection portfolio selection multifactor asset returns uncertainty USA United States Japan stock markets mean variance. 2011-12-26T23:20:50-05:00 14 1/2 77 101 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44479 This study examines the influence of investment fund performance presentation format on investor decisions. We perform an experiment in which participants are shown past performance information about two funds one with superior short-term results and the other with better long-term results and asked to choose their preferred option. Results indicate the fund with superior short-term results is chosen more often when short-term performance appears last and the fund with superior long-term performance is chosen more frequently when long-term performance is presented last. This recency effect, in which individuals over-emphasise the last piece of performance data presented to them, is insensitive to simulated market conditions, and disappears entirely when performance results are displayed vertically rather than horizontally. Implications for investors, fund managers and policy makers are discussed. Style matters: investment performance presentation effects on investor preferences
Eric Terry; Bettina West
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 102 - 114
This study examines the influence of investment fund performance presentation format on investor decisions. We perform an experiment in which participants are shown past performance information about two funds one with superior short-term results and the other with better long-term results and asked to choose their preferred option. Results indicate the fund with superior short-term results is chosen more often when short-term performance appears last and the fund with superior long-term performance is chosen more frequently when long-term performance is presented last. This recency effect, in which individuals over-emphasise the last piece of performance data presented to them, is insensitive to simulated market conditions, and disappears entirely when performance results are displayed vertically rather than horizontally. Implications for investors, fund managers and policy makers are discussed.

]]> 10.1504/GBER.2012.044479 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 102 - 114 Eric Terry; Bettina West Ted Rogers School of Business Management, Ryerson University, 350 Victoria St., Toronto, ON, M5B 2K3, Canada ' Ted Rogers School of Business Management, Ryerson University, 350 Victoria St., Toronto, ON, M5B 2K3, Canada behavioural finance performance reporting recency effects serial order effects information presentation investment performance investor preferences investment funds. 2011-12-26T23:20:50-05:00 14 1/2 102 114 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44480 More and more, in order to achieve global competitiveness, firms need to develop and apply unique and dynamic competitiveness models. With this paper, we propose an index that measures firm competitiveness by taking into consideration some tangible and intangible assets. This index demonstrates the fact that a firm is highly competitive as long as its managers are able to mix the tangible and intangible assets in the most effective and efficient manner; therefore, a firm can get the same score of competitiveness by using different combinations of assets and by giving different importance coefficients to the tangible and intangible assets. Leveraging tangible and intangible assets by using a possible firm competitiveness index
Mihaela Herciu; Claudia Ogrean; Lucian Belascu
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 115 - 124
More and more, in order to achieve global competitiveness, firms need to develop and apply unique and dynamic competitiveness models. With this paper, we propose an index that measures firm competitiveness by taking into consideration some tangible and intangible assets. This index demonstrates the fact that a firm is highly competitive as long as its managers are able to mix the tangible and intangible assets in the most effective and efficient manner; therefore, a firm can get the same score of competitiveness by using different combinations of assets and by giving different importance coefficients to the tangible and intangible assets.

]]> 10.1504/GBER.2012.044480 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 115 - 124 Mihaela Herciu; Claudia Ogrean; Lucian Belascu Faculty of Economic Sciences, Lucian Blaga University of Sibiu, Dumbravii Street, 17, Sibiu, 550324, Romania. ' Faculty of Economic Sciences, Lucian Blaga University of Sibiu, Dumbravii Street, 17, Sibiu, 550324, Romania. ' Faculty of Economic Sciences, Lucian Blaga University of Sibiu, Dumbravii Street, 17, Sibiu, 550324, Romania tangible assets intangible assets firm competitiveness index FCI. 2011-12-26T23:20:50-05:00 14 1/2 115 124 2011-12-26T23:20:50-05:00 http://www.inderscience.com/link.php?id=44481 This paper examines annual reports of the Caixa Geral de Aposentações (CGA) that administers the Portuguese pension program for civil servants (retirement, survivor and other minor special pensions). Our results suggest that constant changes in laws and regulations distort the real purpose of the CGA to the extent that the continued survival of the Portuguese pension programme is threatened. The CGA has implemented new questionable strategies for the maintenance of the programme to prevent its failure despite the existence of several limitations and social, economic and political constraints. Thus, future social responsibility and prudent policy are required to ensure the collective welfare of current and future generations. Caixa Geral de Aposentações: why social responsibility is needed?
Rute Abreu; Fátima David
Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 125 - 138
This paper examines annual reports of the Caixa Geral de Aposentações (CGA) that administers the Portuguese pension program for civil servants (retirement, survivor and other minor special pensions). Our results suggest that constant changes in laws and regulations distort the real purpose of the CGA to the extent that the continued survival of the Portuguese pension programme is threatened. The CGA has implemented new questionable strategies for the maintenance of the programme to prevent its failure despite the existence of several limitations and social, economic and political constraints. Thus, future social responsibility and prudent policy are required to ensure the collective welfare of current and future generations.

]]> 10.1504/GBER.2012.044481 Global Business and Economics Review, Vol. 14, No. 1/2 (2012) pp. 125 - 138 Rute Abreu; Fátima David Polytechnic Institute of Guarda, Av. Dr. Francisco Sá Carneiro, 50, Gab. 50-ESTG; 6300-559 Guarda, Portugal. ' Polytechnic Institute of Guarda, Av. Dr. Francisco Sá Carneiro, 50, Gab. 50-ESTG; 6300-559 Guarda, Portugal pension schemes financial information sustainability accountability Portugal sustainable development civil servants Portugal social responsibility annual reports. 2011-12-26T23:20:50-05:00 14 1/2 125 138 2011-12-26T23:20:50-05:00