Najwan Jadallah and Feyza A. Bhatti

DOI: https://doi.org/10.6000/1929-7092.2019.08.105

Published: 23 December 2019

Abstract: Political instability have negative consequences on any country’s macroeconomic performance, deteriorating the investment environment and jeopardizing decisions of producers and consumers. Although there have been numerous studies that have focused on the economic costs of political instability, fewer studies have delved into the nuances of everyday challenges entrepreneurs face in Palestine. Utilizing semi-structured interviews with 35 entrepreneurs, study aims at exploring these challenges. The findings reveal that major challenges affects entrepreneurs are the restrictions on mobility of goods and services that impedes business operations, the shortages of cash and labour that limits businesses ability to operate efficiently, and the lack of planning and support from the government that leaves the local industries unprotected against the competition. Addressing the uncertainties emanating from occupation is challenging, but having an inclusive, realistic and implementable private sector strategy, development plan, and special programs to support and advance businesses in Palestine are crucial for the survival of the businesses.

Keywords: Political instability, Occupation, Threat to Businesses, Palestine, Oslo Accord, Paris Protocol.

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P.N. Brusov, T.V. Filatova, N.P. Orekhova and V.L. Kulik

DOI: https://doi.org/10.6000/1929-7092.2018.07.07

Published: 09 March 2018  

Abstract: A few years ago we have discovered the effect of the "golden age" of company (Brusov et al. 2015): it was shown for the first time that valuation of the weighted average cost of capital, WACC, in the Modigliani – Miller theory (Modigliani et al. 1958; 1963; 1966) is not minimal and valuation of the company capitalization is not maximal, as all financiers supposed up to this discovery: at some age of the company its WACC value turns out to be lower, than in Modigliani – Miller theory and company capitalization V turns out to be greater, than V in Modigliani – Miller theory. It was shown that, from the point of view of cost of attracting capital there are two types of dependences of weighted average cost of capital, WACC, on the company age n: monotonic descending with n and descending with passage through minimum, followed by a limited growth. In practice there are companies with both types of dependences of WACC on the company age n.

In this paper we investigate which companies have the "golden age", i.e. obey the latter type of dependence of WACC on n. With this aim we study the dependence of WACC on the age of company n at various leverage levels within wide spectrum of capital costs values as well as the dependence of WACC on leverage level L at fixed company age n. All calculations have been done within modern theory of capital cost and capital structure BFO by Brusov–Filatova–Orekhova (Brusov et al. 2011a,b,c,d,e; 2012 a,b; 2013 a,b,c; 2014 a,b; Filatova et al. 2008).

We have shown that existence of the "golden age" of company does not depend on the value of capital costs of the company, but depends on the difference between equity k₀ and debt k_d costs. The "golden age" of company exists at small enough difference between k₀ and k_d costs, while at high value of this difference the "golden age" of company is absent: curve WACC(n) monotonic descends with n. For the companies with the "golden age" curve WACC(L) for perpetuity companies lies between curves WACC(L) for company ages n=1 and n=3, while for the companies without the "golden age" curve WACC(L) for perpetuity companies is the lowest one.

In previous paper (Brusov et al. 2015) we have found also a third type of WACC(n) dependence: descending with passage through minimum, which lies below the perpetuity limit value, then going through maximum followed by a limited descending. We called this effect "Kulik effect". In this paper we have found a variety of "Kulik effect": descending with passage through minimum of WACC, which lies above the perpetuity limit value, then going through maximum followed by a limited descending. We call this company age, where WACC has a minimum, which lies above the perpetuity limit value, "a silver age" of the company.

Because the cost of attracting capital is used in rating methodologies as discounting rate under discounting of cash flows, study of WACC behavior is very important for rating procedures. The account of effects of the "golden (silver) age" could change the valuation of creditworthiness of issuers.

Remind that, since the "golden age" of company depends on the company's capital costs, by controlling them (for example, by modifying the value of dividend payments, that reflect the equity cost), company may extend the "golden age" of the company, when the cost to attract capital becomes a minimal (less than perpetuity limit), and capitalization of companies becomes maximal (above than perpetuity assessment) up to a specified time interval. We discuss the use of opened effects in developing economics.

Maria José Sousa, Vasco Santos, António Sacavém, Isabel Pinto dos Reis and Marta Correia Sampaio

DOI: https://doi.org/10.6000/1929-7092.2019.08.11

Published: 14 February 2019  

Abstract: This paper intends to analyses leadership skills in the hospitality sector in the era of 4.0 industry. The purpose is to explore the role of multi‐level forms of leadership and the profiles identified by the hospitality professionals. This is a quantitative study based on an online survey applied to two hotels, and the following research question have guided the present study: What are the 4.0 Leadership Skills in the hospitality sector? To answer the research question, the main technique to collect data was a questionnaire allowing to investigate the main issues related to 4.0 leadership skills. The results of the research are the identification of the leadership skills profiles, being this research significant for managers and leaders when developing organizational interactions from a multi‐level efficacy perspective. The conceptual contribution of the paper is a fresh macro‐analytical perspective concerning 4.0 leadership skills in the hospitality sector.

Keywords: Leadership, employees, 4.0 hospitality organizations, technology, emotional and relational skills.

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A Comparative Analysis on Subsidy Policies of China’s Public Housing Programmes: Evidence Based on Micro Surveys in Baoji
Pages 340-348
Nannan Yuan

DOI: http://dx.doi.org/10.6000/1929-7092.2014.03.25

Published: 23 September 2014

Abstract: To understand the effects of the public housing programme and measure the feasibility of subsidy policies, this study conducts a comparative analysis on the wealth effects of two of the main subsidy policies which are the sell-oriented policy¹ (SOP) and rent-oriented policy² (ROP), implemented in the city of Baoji, China. The data in this study come from a survey conducted in 2010 in Baoji. We apply a Cobb-Douglas utility function to measure the extra benefits for households that fall under the SOP and households that fall under the ROP. Our results indicate that the low-income SOP households have a stronger taste in terms of housing consumption, and although both policies offer benefits to households, ROP households benefit more than SOP households do. The main policy conclusions drawn from our findings are that the ROP should be adopted first, and restricting resale by the purchasers is the key to achieve policy efficiency.