Archive for: ‘December 2014’

A Study of Tobin’s Q on Indian Stock Exchange using Economic Profit Measurement Indicators

December 9, 2014 Posted by admin

Anupam Mitra
TeamLease Skills University
Tarsali, Vadodara – 390009, Gujarat, India

Abstract
Profit measurement indicators explored by researchers over a period of time like Created Shareholder Value (CSV), Shareholder Value Added (SVA), Economic Value Added (EVA), Market Value Added (MVA), Cash Value Added (CVA), Adjusted Economic Value Added (AEVA), Refined Economic Value Added (REVA), and Residual Income (RI) have been well
explored by many scholars for examining the profitability of different companies. Each of these indicators has its own way of presenting and reflecting the performance and values of the companies. However, there are two other performance metrics, namely Equity Economic Value Added (EEVA) and True Value Added (TVA), which have not yet been adequately investigated for the Indian capital market. The focus of this paper is on a study of Tobin’s q using two economic profit measurement indicators, namely: Equity Economic Value Added (EEVA) and True Value Added (TVA). Data was collected on Tobin’s q of 50 selected listed companies of National Stock Exchange (NSE), India, between 2003 to 2013. The analysis of the data was based on the belief that its sample size is large enough for the assumption of normality. The results of our data analysis shows that there is presence of significant association between EEVA,
TVA and Tobin’s q.

Keywords: EEVA, TVA, Tobin’s q, NSE, India

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An Inventory Model for Deteriorating Items with Stochastic Demand, Variable Lead Time and Shortages, Considering Inflation and Time Value of Money

December 9, 2014 Posted by admin

Gabriel O. Akanbi and Obafunmilola O. Fagade
Department of Industrial and Production Engineering, Faculty of Technology,
University of Ibadan, Nigeria

Abstract
The term inventory refers to idle resources that have economic values. Optimal control of inventory enhances competitiveness and profitability of a company. Mathematical models have been developed to describe various scenarios obtainable in the management of inventories. These models usually have the aim of minimizing inventory costs. In this work, we formulate an inventory model to determine optimal order quantity and re-order level for deteriorating items in an inflationary economy having stochastic demand and non-instantaneous replenishment. The solution of the model obtained determines the optimal replenishment schedule that minimizes total inventory costs. To evaluate the usefulness of the model, the procedure was applied to a real life inventory problem in a food processing company. The result obtained with the proposed policy was then compared with the present policy in the company.

Keywords: inventory model, deteriorating items, lead time, inflation.

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An Empirical Analysis of the Effects of Horizontal Mergers and Acquisitions on the Performance of Chinese Listed Companies – The Case of the 2008 Global Financial Crisis

December 9, 2014 Posted by admin

Hui Li, Lu-Ping Le and Qing Zhang
School of Economics and Management, Zhejiang Normal University, JinHua, Zhejiang 321004,
China

Abstract
As a result of economic globalization, mergers and acquisitions of Chinese listed companies have become increasingly common. In fact, the most effective way of expanding the scale of operation and reducing competition is horizontal mergers and acquisitions. Whether horizontal mergers and acquisitions can effectively improve the performance of listed companies has been the question entrepreneurs are most concerned about. It is also what academics are focusing on, especially in the situation of 2008 global finical crisis. This article studies the available 24 Chinese listed companies in 2008 and examines the financial indicators of their operation performances before and after merger and acquisition during the 2008 global financial crisist. The article applies discriminant analysis to build a discriminant function. Finally, the function is used to analyze the merger and acquisition performance of the 14 Chinese listed companies in 2009 to demonstrate that the short-term performance of horizontal mergers and acquisitions is not so obvious and that it (the short-term performance) unstable. The empirical analysis is evaluated and some suggestions are made. The article constructs a discriminant function by integrating some financial variables. The discriminant function assesses the possibility of performance improvement after merger. In each of the case, when the value of the discriminant function is larger than 1, we conclude that the merger has improved firm performance. Otherwise, we conclude that the merger is not very useful in improving firm performance.

Keywords: Horizontal mergers and acquisitions; Performance of merger and acquisition; Chinese listed companies

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A Multicriteria Model to Evaluate the Performance of Transport Companies: the Case of Tunisia

December 9, 2014 Posted by admin

Inaam Zaouali and Hachmi Khouaja
lHEC Institute of the high commercial Studies Carthage Presidence- Tunis 2016 Tunisia

Abstract
It is not enough to base the evaluation of the performance of transport companies on only economic criteria. Criteria for evaluating the performance of transport companies should include both quantitative and qualitative criteria that address the desires, expectations and the needs of all stakeholders (passengers, investors, the community, the government and the owners/authorities of transport companies). This paper develops a desegregated multi-criteria approach for evaluating performance of transport companies. The aim of the paper is to present an effective method or procedure that can be used by top managements of transport companies to evaluate the performance of their companies. The set of criteria developed in the paper covers different aspects of transportation service performance metrics such as quality, safety, operational performance – in terms of efficiency and effectiveness. A case study on 12 bus companies of a public transport system in Tunisia is conducted to illustrate the effectiveness of the approach .We presented and applied the ELECTRE TRI method to assign the different alternatives(transport companies) in predefined categories. In order to rank these alternatives the ELECTRE TRI method is adopted. Sensitivity analysis is conducted to test the validity of the results.

Keywords: multi-criteria decision aid, performance assessment, and public transport

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Design of Robust Replenishment Controls for Warehouses and Supply Chains under Demands With Trend Components

December 9, 2014 Posted by admin

Kannan Nilakantan
Institute of Management Technology-Nagpur603, Byramji Town, Nagpur 440013, India

Abstract
This paper takes up the problem of devising Robust Replenishment Control strategies for a supply chain under a demand pattern predominated by large trend components. The chain follows a responsiveness strategy, and has a distribution warehouse at the downstream end, which caters to the demand off-take. We study the effect of different types of replenishment policies followed in practice and in the literature, and compare their performances with one another in the warehouse system when subjected to a demand with large trend components, looking at how quickly they are able to respond to the demand disturbance. We find that many of the conventional policies perform poorly under such circumstances, and we propose modifications to enhance their performance. Some of the modified policies proposed herein are found to have superior performance characteristics and an enhanced level of robustness to more general types of demands as well, and as such, could hence be expected to be of use in very general applications. The control schemes discussed herein can easily be built into the control/management software of such systems, and could thereby enhance the automated decision capability of the system

Keywords: supply chain management, dynamic models, robust controls, ordering control policies,
trend components in demand

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Hospital Performance and Benchmarking in Spain

December 9, 2014 Posted by admin

Juan Carlos Martín and M. Isabel Ortega-Díaz
Universidad de Las Palmas de Gran Canaria
Faculty of Economics, Business and Tourism. D.2.13
Universidad de Jaén
35017 Las Palmas de Gran Canaria, Spain.
Faculty of Social Sciences and Law, Edif.D-3, Desp. 265
Campus Las Lagunillas, 23071 Jaén, Spain.

Abstract
The task of measuring and benchmarking hospital performance, focusing mainly on measures of productivity and efficiency, is one of attempting to collect and homogenize data that allow researchers applying models that avoid comparisons in a basis of ‘apples-to-oranges”. Based upon a refinement of data envelopment analysis (DEA) – the cross-efficiency method (X-DEA), the current paper ranks 756 hospitals in Spain. A detailed analysis is done according to the purpose of hospital, the Autonomous Region where hospitals are located, the type of property, the specialty and the type of agreement with the National Health System. A method is also proposed to determine the relative weight of each dimension for all the hospitals and for each category based on the specialty which can be used as a tool by hospital managers in order to establish a program of improving the ranking position of the hospital identifying the critical performance factors. Multivariate analyses of the X-DEA score are performed using recursive partitioning referred to as classification and regression tree (CART) analysis. We conclude big hospitals (>1022 beds) underperform small hospitals (<268 beds). The performance of intermediate size hospitals depend more on features like specialty and type of property. This issue is quite relevant these days in Spain as economic situation is obliging policy makers to cut costs in most of the activities of the public sector, being health system one of the main controversial sectors under scrutiny.

Keywords: Health care standards; DEA; cross-efficiency; hospital category; CART analysis, best practice

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  • Annals of Management Science (AMS)

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  • ISSN 2161-5012 (Print Version)
    ISSN 2161-5004 (Online Version)