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Interviews in South Korea, Taiwan, Singapore, and India indicate net present value (NPV) is not widely employed in making capital investment decisions in these newly industrialized and developing countries. It is not from lack of knowledge about net present value: rather, it is due to (1) widespread violation of the assumptions underlying NPV, (2) the high risk/high return nature of the capital investments, and (3) the decision‐making process employed in making capital investment decisions. These same three conditions exist for many capital investment decisions made by firms in developed countries. Only by abandoning the static NPV approach, building in real options, and understanding and building in the decision‐making process will further advances be made in capital budgeting decision‐making. One of the key paradigms in finance is net present value (NPV). In order to maximize value, managers should accept all positive NPV investment projects, and reject all negative NPV projects. The issue becomes more complex when uncertainty is introduced, or, as in recent years, when real options to defer, abandon, expand, etc. are incorporated into the decision‐making process [e.g., Dixit and Pindyck (1994) and Trigeorgis (1995 and 1996)]. However, with these exceptions, the state of the art in capital investment decision‐making revolves around the simple statement—take all positive NPV projects. In practice, evidence from surveys and discussions with corporate executives indicates the message taught for the last 30 years in business schools has been heard and, to a large extent, acted upon by larger U.S., Canadian, and British‐based firms. While larger firms in North America, and to a lesser extent Western Europe, generally employ the static, or traditional, NPV framework for making, or assisting in making, capital investment decisions, less is known about the decision‐making process employed by firms in other parts of the world. The question addressed in this study is: “Do firms in other parts of the world, especially in newly industrialized or developing countries in the Asia Pacific region, employ NPV for making capital investment decisions?” The purposes of this study are threefold: (1) to report the results of a series of open‐ended interviews conducted in South Korea, Taiwan, Singapore, and India about the capital investment decision‐making process employed; (2) to understand why NPV is not widely employed in making capital investment decisions in these newly industrialized and developing countries; and, most important, (3) to indicate that NPV and the capital budgeting decision‐making process need rethinking and refocusing to make them more effective—in all countries, whether developed, newly industrialized, or developing. The paper proceeds in the following manner. Section I provides an introduction to the study. In Section II the results of the interviews are presented. In Section III patterns that emerged during the interview process are presented, along with a number of specific examples of the types of capital investment decisions being considered. In Section IV the assumptions underlying NPV are examined, and then risk/return and the decision‐making process are considered. Section V contains the discussion and conclusions.

Strategy is ultimately aimed at creating shareholder value. We examine the relationship among intrinsic (DCF) value, market value, and the value of growth options using a “perfect foresight” model. Our findings suggest that Kester's (1984) initial assessment of growth option values may not hold under alternative valuation models. We highlight important issues in the valuation of growth options related to market expectations, modeling assumptions and estimation methods. The findings suggest that the firm's growth option value depends on three factors, each of which impacts investor expectations: (1) the macroeconomic environment; (2) the industry in which the firm participates; and (3) firm specific factors.

Diane Crone‐Grant and Trudi Grant describe an evidence‐based programme designed to promote mental health through developing physical wellbeing.

With strong evidence to show that most of us feel mentally better if we take exercise, there's clearly a positive relationship between physical activity and mental health ‐ but what's responsible for it? In this article, Diane Crone summarises the theories that have been developed by researchers to explain how it works. She then reviews the research that has asked exercisers for their own opinions about what makes the difference for them and concludes with some practical advice for people using or providing exercise opportunities.

Despite touting the value of green practices, many firms struggle to respond appropriately to the diverse environmental issues. The purpose of this paper is to investigate how the external and internal pressures interplay to influence top management championship, which, in turn, fosters the company’s green culture and the adoption of green practices. It thus helps to explain Chinese firms’ diversity with respect to the adoption of green practices.

A conceptual model is developed that summarizes the interplay of external and internal pressures, top management championship, green culture and the adoption of green practices. Data from 148 Chinese manufacturing firms were collected and a structural equation model was used for statistical analysis.

Government policy that provides incentives to adopt green practices and overseas customers’ green demand has significant positive influences on top management championship, while resources pressure has a significant negative effect. Government command and control policy, domestic customers’ green demand and organizational inertia do not impact top management championship. Furthermore, top management championship is positively correlated to both green culture and green practices, and green culture contributes to implementing green practices.

The findings help us understand which external and internal factors inspire or force top management to adopt green practices, and how they do so. Moreover, managers must also be aware of the bridging role of green culture. The findings will be valuable to policy makers in forming and enforcing “stick” or “carrot” environmental policies.

Leveraging a multi-theoretic approach, the authors’ research builds on insights from the institutional theory, natural resource-based view (NRBV) and upper echelons perspective, so as to increase the authors’ understanding on how firms adopt green practices to respond to environmental sustainability pressures. The institutional theory and the NRBV are leveraged in this study to recognize that firms perceive not only external institutional pressure for environmental management but also the internal pressure from resource constraints and capability to change. Upper echelons perspective is integrated into this study to explain the leadership role that top management serves in the management of the organization’s response to dynamic changes in the institutional environment and cultivate green culture within organization.

State building in pre-colonial sub-Saharan Africa is a much-neglected subject in historical sociology. This paper, which begins to close that gap accounts for state building and transformation in pre-colonial Yorubaland and highlights slavery, slave-taking, and other distinctive features of the Yoruba states. The paper argues that slavery and slave-taking affected warfare in the Yoruba states with remarkable consequences for the Yoruba state system. Furthermore, the paper applied some aspects of existing analytical approaches in historical sociology and comparative politics to elucidate our understanding of the role and limitations of warfare, slave-taking, and slavery in state development in pre-colonial Yorubaland.

Wonders whether, owing to severely restricted access, China’s government policy towards digital communications will remain in a constant state of flux – or will it gain economic benefits without a social penalty? Concludes that China has to link the forces of change to channel and deflect domestic resistance.

Viewing the last dying embers of 1984, the Orwel‐lian year of Big Brother and some of its not‐so‐far off the mark predictions, the unemployment which one cannot help feeling is more apparent than real, it is hardly surprising that the subject of Poverty or the so‐called Poverty arise. The real poverty of undernourished children, soup kitchens, children suffering at Christmas, hungry children ravenously consuming free school meals has not, even now, returned.

For generations, Britain has had a household delivery of fresh milk; from the days before the Great War when it was delivered by a horse‐drawn milk float, with the roundsman often bringing the housewife to the door with his cries of “Milk‐O!”. The float had a churn and milk was delivered in a small can, served out by a dipper. This was the start of the distributive trade, organised between the Wars, from which the present industry has emerged. The trade gave universal acceptance to the glass bottle, returnable for household delivery, only the method of sealing has changed. There have been many demands for its abandonment in favour of the carton, of which recent years has seen a rise in its use in the increasing sales of milk by supermarkets and stores. Despite the problems with returnable vessels, the glass bottle has a number of advantages. The milk, including the cream line, is clearly visible, and short measure is most unlikely, which is a growing problem with carton‐filled milk. The number of prosecutions for short measure with cartons must be causing concern to trading standards departments. There is nothing to indicate the offence until the carton is opened.