This thesis reports an exploratory, quantitative study into the implementation of strategic. decisions. Implementation was viewed as a discontinuous organisational activity involving strategic change. The organisational vehicle of change is seen as "the project" and the specific unit of analysis adopted is the capital investment project. Manufacturing organisations were studied because these were shown to most frequently undertake such projects. ' Adopting a theoretical perspective derived from systems theory and cybernetics a model of implementation was developed which recognises two dimensions of implementation success (modes of organisational change) to be contingent upon a dimension of project uncertainty and two dimensions of information. From this model ten hypotheses were developed. Data on 45 projects was collected from a diversity of manufacturing companies. This was obtained using a structured questionnaire instrument administered to a single informant during a retrospective personal interview. Initially the data was analysed using principal components factor analysis to determine the factorial compositions and reliabilities of scales measuring theoretical constructs. Subsequently, causal modelling and stepwise regression techniques were employed to test the hypotheses. Analysis demonstrated that the essentially structural approach to implementation taken in the study adequately explained many of the observed associations between constructs. Hypothesised associations between organisational structure and implementation success could not, generally, be supported. Finally, the theoretical model adopted was not able to account for a number of empirically observed associations. These associations were explicable in terms of a behavioural or social dimension. The wider implications of the study are also discussed. / Economic and Social Research Council

Capacity planning is an area in which engineers can affect business performance. The size of the expansions and the timing in which they take place are the most important variables in capacity planning. The Economic Investment Time (EIT) Model is a tool that enables planners to accurately determine the investment time in which profits resulting from the proposed expansion can be maximized. This thesis presents the results yielded by the EIT. Validation is performed using the utilization results yielded by the Newsboy Model. This paper explains the methodology used and the conclusions that can be drawn. / Master of Science

Jensen and Meckllng in "Theory of the Firm: Managerial Behavior and Capital Structure" [1976] introduced the concept that managers choose their ownership in the firm and leverage ratio to minimize agency costs. Easterbrook [1984] and Rozeff [1982] extended this notion with the hypothesis that dividends are paid to reduce equity agency costs. Myers [1977] explained debt agency costs as being a possible underinvestment problem with risky debt, and Jensen [1986] hypothesized that increases in debt could control the free cash flow agency problem. This dissertation will be a comprehensive test of Jensen and Meckling’s agency theory including extensions by Rozeff, Easterbrook, Myers and Jensen. To test agency theory a contemporaneous three equation model determining managerial ownership, leverage and dividends is specified. The exogenous variables include variables which are expected to impact upon agency costs, diversification measures, and variables registering non-agency explanations of leverage and dividends. This dissertation provides critically needed empirical evidence on the agency problem and a specific test of Jensen and Meckling. / Ph. D. / incomplete_metadata

This dissertation is based on the hypothesis that a third dimension, namely investment time horizon, can add value to the more conventional two-dimensional methodology of assessing the relative risk and return attributes of various assets and portfolios in order to enhance investment decisions. This study shows that time horizons should be considered in the investment decision making process and provides concrete evidence that a methodology that is not cognizant of investment time horizon is prone to extensive long-term opportunity cost risk. In addition to providing evidence of investment time horizon relevance, the study makes suggestions as to how time horizons could be incorporated into the risk return assessments of various asset classes and also presents a framework for the more holistic assessment of asset class properties while incorporating time horizons. / Business Management / Thesis (M. Com. (Business Management))

published_or_final_version / Law / Master / Master of Philosophy

Dai Yi. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2003. / Includes bibliographical references (leaves 79-82). / Abstracts in English and Chinese. / ABSTRACT --- p.i / ACKNOWLEDGEMENT --- p.iii / TABLE OF CONTENTS --- p.iv / LIST OF TABLES --- p.vi / CHAPTER / Chapter ONE --- INTRODUCTION --- p.1 / Background / Purpose / Summary of hypotheses and results / Organization / Chapter TWO --- REVIEW OF THEORIES AND LITERATURE --- p.5 / The Literature on ownership structure / Theoretical explanations for capital structure / The Literature on investment-cash flow sensitivities / Chapter summary / Chapter THREE --- DATA COLLECTION --- p.15 / Sample selection / Ownership and control definition / Patterns of the East Asian Firm Ownership / Country characteristic variables / Chapter summary / Chapter FOUR --- THE RELATIONSHIP BETWEEN OWNERSHIP STRUCTURES AND FIRM LEVERAGE --- p.23 / Rationale for the study / Hypothesis / Description of regression variables / The Heteroscedasticity problem and solution / Regression results / Accounting for country effects / Chapter summary / Chapter FIVE --- THE RELATIONSHIP BETWEEN OWNERSHIP STRUCTURES AND INVESTMENT-CASH FLOW SENSITIVITY --- p.42 / Theoretical framework / Hypothesis / Regression specification / Summary statistics / Empirical findings / Country characteristic control / Chapter summary / Chapter SIX --- CONCLUSION --- p.52 / TABLES --- p.54 / BIBLIOGRAPHY --- p.79

This dissertation is based on the hypothesis that a third dimension, namely investment time horizon, can add value to the more conventional two-dimensional methodology of assessing the relative risk and return attributes of various assets and portfolios in order to enhance investment decisions. This study shows that time horizons should be considered in the investment decision making process and provides concrete evidence that a methodology that is not cognizant of investment time horizon is prone to extensive long-term opportunity cost risk. In addition to providing evidence of investment time horizon relevance, the study makes suggestions as to how time horizons could be incorporated into the risk return assessments of various asset classes and also presents a framework for the more holistic assessment of asset class properties while incorporating time horizons. / Business Management / Thesis (M. Com. (Business Management))

Thesis (MBA) -- Stellenbosch University, 2010. / As major corporate entities are investing into Sub-Saharan Africa and other African countries at a fast pace, percentages like the weighted average cost of capital (WACC) and the impairment discount rate, are becoming important measurements of assessing current investments for impairment and/or proposals of future capital investments. One of the important constituents of these percentages is the country/equity risk premium. The country risk premium can be defined as the price for taking risk for investing in that specific country. A widely used method to determine the country risk premium is to multiply the country bond default spread with an equity to bond market risk adjustment. Country bond default spreads are the spreads that investors charge for buying bonds issued by the country. These ratings measure default risk, rather than equity risk, but they are affected by many factors that drive equity risk, like the stability of a country’s currency, the budget and trade balances and the political stability. Analysis that uses spreads as a measure of country risk, usually adds them to both the cost of equity and debt of entities that trade in that country. There are several ways in determining the bond default spreads, but it is most often done in a random and unsystematic manner. Two of the major obstacles in determining these spreads for countries, especially countries of sub-Saharan Africa, are when countries do not issue bonds in another currency such as Euro or US dollar and/or do not have a sovereign credit rating. What could also be a measure of country risk, are the two major country risk polls conducted globally: 1) Euromoney Country Risk Poll; and 2) PRS (Political Risk Group) Composite Risk Ratings. Most of sub-Saharan African countries form part of these risk polls. The usefulness of the PRS scores as a measure of country risk has been previously examined to find that they are correlated with the cost of capital of emerging markets. The aim of the research is to overcome the obstacles in determining default spreads for countries such as sub-Saharan Africa where bond markets are inactive and/or sovereign credit ratings are not assigned, by deriving a predictive model. The predictive model is derived by analysing the relationship between the available estimated default spreads that are assigned to a specific country, depending on their Moody’s sovereign local currency rating and the countries’ respective country risk scores conducted by Euromoney and PRS respectively. The stability of the relationship is also analysed by comparing the prediction of the sub-Saharan’s Africa default spreads based on the 2010 predictive model to the analyses conducted on 2008 data sets. Other similar models have been developed, but this model is focused on the total risk score of a country and not only on the credit risk or related constituents. One of the definitions of country risk is that it relates to the likelihood that changes in the business environment will occur that reduce the profitability of doing business in a country, which can negatively affect operating profits as well as the value of assets. One can conclude that this derived model is a good reflection of prevailing political and economic stability of the countries and a useful measure of country risk that can be used in assessing the profitability of current investments in a specific country and for proposals of future capital investments. Key words: Country bond default spreads, Sovereign credit ratings, Euromoney risk scores, PRS composite ratings, sub-Saharan African countries.

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Everyone, generally. would like to make good decisions, or receive the greatest benefit from a decision made. Companies are no different in this respect and the process of selecting an investment project portfolio has become an important activity. This is, further, complicated by the fact that companies have multiple, and often, conflicting objectives in a situation of capital rationing. This study project proposes a conceptual framework for project portfolio establishment, for application in an industrial manufacturing type environment, by integrating project evaluation and selection, a multi-criteria decision analysis technique and group decision-making. The project issues, the selection of a multi-criteria decision analysis technique and group decisionmaking are dealt with sequentially and then integrated to develop this conceptual framework. The explorative part of this study project deals with project evaluation and selection issues, and the concept of the triple bottom line is proposed to capture the multiple objectives of the company's decision context. Further, decision analysis concepts are reviewed and three categories of multi-criteria decision analysis methods identified. Selected methods in these categories are described, examined and the advantages and drawbacks of the different categories highlighted. The Analytic Hierarchy Process is proposed as the underlying multi-criteria decision analysis technique to support this conceptual framework. Group decision-making is investigated, and aggregation procedures and a method of consistency checking suggested. Finally, the framework is applied to a hypothetical case and the results presented. / AFRIKAANSE OPSOMMING: Oor die algemeen wil almal goeie besluite neem, of maksimum voordeel uit die besluite trek. Maatskappye het dieselfde motivering en die aktiwiteit om 'n kapitaalinvesteringsportfolio saam te stel word as van groot belang beskou. Hierdie aktiwiteit is ook deur die werklikheid van vele, dikwels teenstrydige doelwitte sowel as beperkte fondse bemoeilik. In hierdie werkstuk word 'n begripsraamwerk vir die daarstelling van 'n investeringsportfolio vir kapitaalprojekte in 'n nywerheidsomgewing, wat projekevaluering en - keuring, veelvoudige kriterium besluitnemingstegnieke en groepsbesluitneming insluit, voorgestel. Projekverwante faktore, die keuse van 'n veelvoudige kriterium besluitnemingstegniek en derdens groepsbesluitneming word apart bespreek en daarna in die bogenoemde raamwerk geintegreer. Die navorsingsgedeelte van hierdie werkstuk verwys na die evaluering en keuse van projekte. Die begrip van 'n drievoudige maatstaf ('triple bottom line') om die kompleksiteit van 'n maatskappy se besluitnemingsdoelwitte te illustreer, word ondersteun. Daarna word besluitnemingsbegrippe bespreek en drie kategoriee van tegnieke vir veelvoudige kriterium besluitnemings uitgelig. Onder hierdie kategoriee is verkose metodes beskryf en ondersoek, en voor- en nadele van die kategoriee uitgewys. Die Analitiese Hierargie proses word voorgestel as basis van die begripsraamwerk. Groepsbesluitneming word ondersoek en versamelingsmetodes met kontrole vir konsekwentheid word voorgestel. Laastens word die besluitnemingsraamwerk op 'n denkbeeldige geval toegepas en word die resultate bespreek.

Thesis (MBA)--Stellenbosch University, 1992. / ENGLISH ABSTRACT: According to AC201 of the Institute of Chartered Accountants additional depreciation should be calculated. To date only a few listed industrial RSA companies have published such amounts. Such additional depreciation amounts therefore had to be estimated. Since 1980 the Graduate School of Business of the University of Stellenbosch has estimated the average age of fixed assets by using the following formula: Accumulated depreciation: Depreciation as per most recent income statement. The above formula resulted in incorrect estimates of the average ages of fixed assets. It was thus decided to follow another method. In this study project (one of three), additional depreciation of fixed assets will no longer be estimated by means of an average age (or average acquisition date). It was decided to calculate an investment profile for fixed assets. Annually the cost price of fixed assets was divided into different year-layers which were obtained from the cash flow statements. The replacement cost for each year-layer was annually determined by means of the Production Price Index. The sum of the different year- layers resulted in the total replacement cost. Additional depreciation now becomes the difference between replacement cost and original cost, divided by the life of the fixed asset. Only a handful of listed South African industrial companies calculate depreciation on land and buildings. To enable comparison with other companies, this study project concentrated on fixed assets other than land and buildings. Depreciation of fixed assets and new fixed assets acquired, are seldomly split between land and buildings on the one hand, and other fixed assets on the other hand. As a result various amounts had to be split between the above two components. A number of practical problems emerged. Especially revaluation of fixed assets and subsidiaries bought and subsidiaries sold, created many problems. The amount of revaluation of fixed assets is normally given as a net amount, whereas the revaluation of the debit was required. Not enough information on specific assets when a subsidiary is bought or sold was supplied in the cash flow statement (and its forerunner the Statement of Source and Application of Funds). If information on fixed assets acquired was given, such information normally indicated book values, whereas cost prices were required. These three study projects resulted in an expansion of the original project. A much more detailed study had to be undertaken on revaluation. Furthermore, a complete reconciliation of both the accumulated depreciation and cost prices of other fixed assets must be done. / AFRIKAANSE OPSOMMING: Addisionele waardevermindering behoort volgens RE201 van die Instituut van Geoktrooieerde Rekenmeesters bereken te word. Slegs 'n aantal industriële maatskappye in die RSA het hieraan gehoor gegee. Gevolglik moes die syfer vir die res van die industriële maatskappye beraam word. Sedert 1980 is die gemiddelde ouderdom van vaste bates deur die Nagraadse Bestuurskool van die Universiteit van Stellenbosch beraam aan die hand van die formule: Geakkumuleerde waardevermindering: Waardevermindering van die mees onlangse inkomstestaat. Die gebruik van hierdie formule het gelei tot foutiewe skattings van die gemiddelde ouderdom van vaste bates. Gevolglik is besluit om 'n ander metode te gebruik. In hierdie werkstuk (wat een van drie uitmaak) word addisionele waardevermindering van vaste bates nie meer bereken aan die hand van 'n gemiddelde ouderdom (of gemiddelde aanskafdatum) nie en 'n investeringsprofiel van vaste bates word daargestel. Die kosprys van vaste bates word dan jaarliks in verskillende jaarlae verdeel wat elk uit die kontantvloeistaat verkry is. Vir elke jaar word die jaarlaag se vervangingswaarde aan die hand van die Produksieprysindeks bereken . Die totaal van al die verskillende jaarlae word gesommeer om by die totale vervangingswaarde uit te kom. Addisionele waardevermindering raak dan die verskil tussen vervangingswaarde en oorspronklike kosprys, gedeel deur die leeftyd van die vaste bates. Aangesien slegs 'n klein persentasie van Suid-Afrikaanse genoteerde industriële maatskappye waardevermindering op grand en geboue afskryf, is slegs aandag geskenk aan ander vaste bates as grond en geboue ten einde onderlinge vergelykings tussen maatskappye te vergemaklik. Aangesien syfers vir waardevermindering van vaste bates en nuwe vaste bates gekoop heel dikwels nie onderskeid tref tussen grond en geboue aan die een kant, en ander vaste bates aan die ander kant nie, moes heelwat bedrae tussen die twee genoemde komponente geallokeer word. Heelwat praktiese probleme is ervaar. Veral herwaardasies van vaste bates en filiale gekoop en filiale verkoop het baie probleme veroorsaak. Die omvang van herwaardasies is gewoonlik 'n netto syfer terwyI die herwaardasie van die debiet benodig was. Verder was die inligting soos verskaf in die kontantvloeistaat (en voor dit die Staat van Bron en Aanwending van Fondse) dikwels onvolledig as dit kom by die verskaffing van besonderhede van watter items by die kosprys of verkoopprys van die filiaal ingesluit is. Waar inligting weI verskaf is ten opsigte van vaste bates, was dit gewoonlik slegs ten opsigte van boekwaardes, terwyl die kosprys van vaste bates verkry, inderdaad nodig was. Hierdie drie werkstukke het daartoe gelei dat die aanvanklike projek aansienlik uitgebrei moes word . Nie aIleen moet daar 'n baie meer omvattende ondersoek na herwaardasies gedoen word nie, maar ook 'n volledige rekonsiliasie van die jaarlikse geakkumuleerde waardevermindering. Hierbenewens moet die rekonsiliasie van die kosprys van vaste bates oak onderneem word.