Firms can use financial derivatives to hedge risks and thereby decrease the probability of bankruptcy and increase total expected tax shields. Firms also can adjust their operational policies in response to fluctuations in prices, a strategy that is often referred to as "operational hedging". In this paper, I investigate the relationship between the optimal financial and operational hedging strategies for a firm, which are endogenously determined together with its capital structure. This allows me to examine how operational hedging affects debt capacity and total expected tax shields and to make quantitative predictions about the relationship between debt issues and hedging policies. I also model the effects of asymmetric information about firms' investment opportunities on their financing and hedging decisions. First, I examine the case in which both debt and hedging contracts are observable. Then, I study the case in which firms' hedging activities are not completely transparent. The models are tested using a data set compiled from the annual reports of North American gold mining companies. Supporting evidence is found for the key predictions of the model under asymmetric information.

The study was about the strategy development process at Walter Sisulu University from a complexity theory perspective as an underlying theoretical framework. The complexity theory was used to draw implications for strategy development from the perspective of this theory. The principal rationale for the study was to comprehend the process of strategy development and to unearth the underlying theoretical paradigms that inform the strategy formulation process at the university. The study was moreover intended to look at available or possible models for strategy implementation. The research approach used to conduct the study was from a qualitative paradigm. However, when it came to data collection techniques, elements of the qualitative and quantitative paradigms were combined. The sampling method used was the purposive sampling which is one of the non-probability sampling types.The study has found that in the main the approach the university used to develop its strategy is anchored on the traditional, positivist and modern approach to strategy. This is a progeny of the dominant theories of strategic management underpinned by classical and scientific management theories. There is however, awareness and consciousness in the university to the reality that the organisation operates in a turbulent and unpredictable world. This is premised from the understanding that today’s organisations evolve and co-evolve with their environments and as such there is need to create an internal environment for agility, flexibility and innovation as well as self-organisation. The study also found that there is no clear model for the implementation of complexity theory in organisations. The study recommends that more studies on approaches, guidelines and techniques for the application of complexity theory be encouraged as a model may be an anti-thesis to the fundamental meaning of the theory particularly given the reality that the theory is also a subject of itself. The above recommendation is premised from the fact that there are few cases on the applied side of complexity theory. There is also need to embed the complexity theory in the academic content of strategy in the academia. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2012.

This thesis is a theoretical analysis of optimal pricing by firms when consumer demands are uncertain. The purpose is to extend the familiar literature on single-product nonlinear pricing in two directions: to cases where the firm is regulated and to the case where the firm produces several products. Chapter 1 embeds these problems into the general setting of models of asymmetric information and, as well as covering existing work on the pricing decisions of firms facing adverse selection, discusses other areas including repeated contracts, auctions, signalling and the uses of what is known as the 'first-order approach'. Chapter 2 analyzes nonlinear pricing by a regulated single-product firm. As an alternative to requiring the firm to offer a given linear tariff two different types of regulation which allow nonlinear pricing are considered, namely, average revenue regulation and optional tariff regulation. Chapter 3 introduces the topic of multiproduct pricing when consumers have differing tastes for the various goods. The important simplifying assumption is that consumers wish to buy either one unit of a good or none at all. There are three main results: if consumers' taste parameters are continuously distributed then the firm will not offer all goods to all consumers; in the symmetric two-good case it is shown that (subject to a kind of 'hazard rate' condition) the firm will offer the bundle of two goods at a discount compared with the charge for the two goods separately; and the pricing strategy when the number of goods becomes large is solved approximately. Chapter 4 relaxes the assumption of unit demands and uses differential methods to analyze the multiproduct nonlinear pricing problem. In the symmetric case when taste parameters are continuously distributed the firm will choose to exclude some low-demand consumers from the market. It is shown that when parameters are independently distributed the firm will wish to introduce a degree of cross-dependence into its tariff. Sufficient conditions for a tariff to be optimal are derived and any tariff which satisfies these conditions necessarily will induce 'pure bundling', so that once a consumer decides to participate in the market at all she will choose to buy all goods. A class of cases is solved explicitly using these sufficient conditions. Since other solutions may be hard to solve analytically, a procedure for numerically generating solutions for the two-good case is described and two more solutions are described.

Thesis (doctoral)--Stockholm School of Economics, 1990. / Additional thesis statement in Swedish inserted. Includes bibliographical references (p. 397-412).

This study is aimed at investigating the effect of mergers and acquisitions on the share prices and dividends involving South African companies in the food and beverage industry. A sample of 79 mergers from 1999 to 2005 was used. The data was analysed using the event study methodology and descriptive statistics. In addition, the paired t-test was also conducted to test the significance of the results. The results were presented using graphs, tables and charts. The results showed that target companies obtained negative abnormal returns during the announcement of mergers while acquiring companies on the other hand received positive abnormal returns. The results imply that it can no longer be generalized that target companies always win and acquiring companies lose during the merger activity. On the other hand, the dividends for target companies increased significantly after the merger, while the dividends for acquiring companies remained insignificantly negative after the merger. / Graduate School of Business Leadership / MBL

Thesis (MTech (Entrepreneurship))--Cape Peninsula University of Technology, [2016]. / The purpose of this study is to develop a business framework for enterprise development and venture creation in Libreville, Gabon. The question that guides this research is: How are hotels and restaurants created and developed in Libreville, Gabon? The level of poverty and the unemployment rate have pushed many people to become creative in finding a way to generate income. The resultant entrepreneurial activity is a key element in the potential economic growth of the country. The Gabonese Government took the initiative to promote SMEs by providing the necessary economic environment. However, from a financial perspective it appears that the majority of entrepreneurs are using their own capital to finance their business during the start-up and developing phases. The limited access to finance remains a major issue for entrepreneurs in both developed and developing countries. It is an ongoing challenge for them to acquire financial support from the available financial institutions. In order to make this study effective, a quantitative approach was followed. A selfadministered survey questionnaire was distributed to seventy owners and managers of hotels and restaurants. The findings show that the key elements which lead to the failure of SMMEs are; the limited access to finance to start up a new business, the lack of funds to maintain operating expenses during the start-up stage, the low return on investment and the mismanagement and poor understanding of the financial cycle of a start-up. Therefore this study proposes a business framework for venture creation and development so that entrepreneurs in Libreville will become educated in the correct procedures to successfully manage and grow their businesses, which will have a positive effect on the economy as more businesses become self-sustainable. SMMEs are regarded as an important means of addressing unemployment and poverty and boosting the economy of the country.

This thesis examines the different areas of agency theory including managerial discretion, corporate governance compliance, voluntary disclosure policies and regulation. The institutional setting for these studies will be the Alternative Investments Market (AIM) as this market provides a unique regulatory environment and distinctive corporate governance features that makes it suitable for analysis. Specifically, AIM, unlike its FCA-regulated main market counterpart, operates under a self-regulated environment, where application of the FCA rules and combined codes are voluntary. This allows great discretion in a firms operation leading to potential agency problems as mandatory disclosure is limited to price-sensitive information, allowing for the presence of information asymmetry. As well as agency theory, one of the main arcs of this thesis explores the role of Nomads. As principle regulator, these firms are charged with ensuring the compliance of their clients with the AIM rules, as well as ensuring the continued success of AIM itself. The first investigation creates a Nomad reputation index to test how the market responds when companies change to more reputable Nomads. To do this, event study methodology is utilised to examine the abnormal returns earned around Nomads switches. The key findings indicate that when managers switch-up to a more reputable Nomad, a proxy for managerial bonding, the market responds favourably, in spite of the costs associated with hiring a more reputable Nomad. Similarly, when managers make the unnecessary decision to switch to a Nomad of equal rank, the market responds negatively. As there is no intuitive advantage to switching to a Nomad of equal rank, it might therefore be seen as a costly and unnecessary move that will not improve the value of the firm. Therefore, the market reacts negatively, indicating the presence of market discipline as investors are punishing managers for making a decision perceived as unnecessary. The final analysis introduces the concept of ‘strict’ Nomads who are perceived to follow the AIM rules more closely than other Nomads. The reporting lag is used as a proxy and finds a positive relation with switches to a strict Nomad over a lenient one. The second study examines the determinant of corporate governance compliance with a focus on the effect of regulation. The findings document that regulation has not influenced the level of compliance, but rather there has been a convergence in governance standards over time given the increased awareness and demand for governance attributes. The findings also extend the Nomad reputation analysis with regards to governance and find a significant positive relation indicating Nomads influence governance standards as part of their monitoring role. The final study examines how the extent of voluntary disclosure is influenced by the company’s corporate governance attributes and the reputation of the Nomad. This study finds a positive relation between the level of voluntary disclosure, board independence and the presence of a nomination committee. Furthermore, this study reveals that voluntary earnings disclosure is a signal for bad news as the LS regression documents a negative relation between abnormal returns and the level of voluntary disclosure. This is corroborated in the event study where the announcement of a notification of results and the subsequent earnings announcement are associated with negative abnormal returns being earned.

Small states are challenged with lower levels of influence than larger states and require special strategies to overcome these challenges. Multilateral organisations (“MLOs”) are often dominated by larger members who have traditionally been leaders of these organisations. Soft power strategies, through attraction and co-option, are viable alternatives for small states to gain influence within MLOs. The aim of this research was to formulate a typology of soft power strategies and a framework which small states can use to gain influence within MLOs. A qualitative and exploratory study was conducted, which involved semi-structured interviews with six respondents. A multiple case study approach that analysed four countries within four MLOs was used. The findings were that the greater the number of soft power sources possessed by a party, the greater the strength of such party’s soft power. It was inconclusive that open markets and open communication is better suited to using soft power. The common interest principle was found to be a necessary condition for the effective use of soft power. The overall finding was that soft power strategies are dependent on the strength of the soft power source and the type of context within which it is exercised. A framework was formulated for the use of soft power. / Dissertation (MBA)--University of Pretoria, 2013. / ccgibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The research problem addressed in this study was to provide a planning guideline for Small, Medium and Micro Enterprises (SMME’s) to assist them to plan more effectively and be sustainable in their businesses. A guideline for planning is needed, as planning is one of the most difficult activities a business owner needs to undertake. Yet it is essential to do because, before taking action, you must know where you are going and how to get there. Well-developed plans can assist the business owner to interest banks and/or investors to invest in the business, guide the owner in operating the business, give direction to and motivate employees, and provide an environment to attract customers and prospective employees. To become an effective business owner, one must look ahead. Planning, which is the process of setting objectives and devising actions to achieve those objectives are imperative to be sustainable in business. The findings of the literature survey clearly highlights the reasons why a business owner needs to plan and provide a guideline how to plan. It was found in the empirical study that Standard Bank rate the SMME market as a very valuable part of their business. The SMME market has a benefit to various departments within the bank, not only the SMME business market. The empirical study also found that not every entrepreneur that holds a business plan is successful. Many reasons for this exist. One aspect that was identified, is that the wrong idea was implemented. The empirical study revealed that in all respondents agreed that planning forms an integral part of the entrepreneurs business. The empirical study found that a business plan will assist the entrepreneur to be sustainable in their business, only if a thorough feasibility study was conducted. The respondents agreed that the feasibility study, will either support or contradict the assumptions made in the business plan, this will assist the entrepreneur to decide to either continue or end the business activity. It was found that the entrepreneur, with especially a financial expert should be involved when a business planning is undertaken. Other experts in the various business arenas should also be requested to assist with the setting up of the business plan.

Small, medium and micro enterprises (SMMEs) are an important sector of any construction economy. The need for efficient SMMEs is well documented and cannot be over-emphasised. SMMEs are vital in their contribution to employment creation and value reorientation. However, their in process operations are not well understood and have rarely been addressed. The aim of this research was therefore to establish a base level of understanding of the operational core-face of SMMEs in Malawi. The methodology used included an extensive literature review and field survey conducted on 52 SMMEs. The field survey used the questionnaire instrument and random sampling. The critical findings from the literature were that there are binding constraints in the operations of SMMEs. The field survey confirmed the issues raised in the literature and posited the operational challenges as lack of finance, training and business skills; limited skills in Construction Information Technology (IT), and prevalence of unethical conduct amongst some of the stakeholders. The findings make an invaluable contribution to the search for solutions to the problems faced by construction SMMEs in Malawi and provide insight for further research in institutional weaknesses and policy issues regarding in this part of the world. The implications of the findings are that unless the limitations named above are resolved, SMMEs in Malawi will continue to experience poor growth and competitiveness. The recommendations include the developing of training programmes in business management, introduction of sector specific financing programmes and the provision of an appropriate regulatory and legislative framework. By establishing the core issues affecting the operations of SMMEs in the Malawian construction industry, the research has contributed to the enhancement of the understanding of this elusive subject.