Search results

It is a well known problem the interactions between the market value of cash flows and the discount rate (usually the weighted average cost of capital, WACC) to calculate that value. This is mentioned in almost all text books in corporate finance. However, the solution adopted by most authors is to assume a constant leverage D%, and hence assume that the leverage gives raise to an optimal capital structure and the discount rate is constant. On the other hand, most authors use the definition of the Ke, the cost of leveraged equity for perpetuities even if the planning horizon is finite. Among these authors we find the work of Wood and Leitch W&L 2004. In this article we wish to analyse the claim made by W&L 2004 in the sense to have found an iterative solution to the problem of circularity that results in a “near” matching with the Adjusted Present Value APV, proposed by Myers, 1974. They use as the basic principle the fact that there is a “near” constant relation between Ke the cost of equity and Kd the cost of debt. They consider as well that the cost of debt Kd is not constant and changes proportionately with the leverage D%. We propose a very simple and precise approach to solve the above mentioned circularity problem.

Proposed projects whose financing will cause capital structure to change across time cannot be accurately evaluated by the ordinary Weighted Average Cost of Capital‐Net Present Value technique. The required rate of return on a new project depends on the firm’s capital structure through the effect of capital structure on the required rates of debt and equity suppliers. But the capital structure depends on these required rates, which are themselves functions of capital structure. There is no general analytical solution to this circularity, so the ordinary weighted average cost of capital cannot capture the effects of changing capital structure on the cost of capital, and the computed NPV is not correct: the wealth of the shareholders will change by a different amount, and may have a different sign as well.

According to Woolcock, social capital can be defined as the “norms and networks facilitating collective action for mutual benefit”. Furthermore, Gabbay and Leenders suggest that social capital offers some potential for integrating the proliferation of network research that has been developed over the last 30 years. Examines an innovatory partnership between Manchester Metropolitan University Business School (MMUBS) and a number of agencies including the Prince's Trust to provide skills to entrepreneurs from socially disadvantaged backgrounds. The New Entrepreneur Scholarship Scheme (NESS) was the result of an initiative by the Chancellor Gordon Brown to encourage higher education institutes to make a larger contribution to the UK's entrepreneurial culture. MMUBS piloted the first NESS programme for 18 nascent entrepreneurs. It was decided to adopt an “action‐learning” approach concentrating on the development of a realistic business idea as well as creating a supportive environment within the group. This intervention has aided NESS participants by building and strengthening networks that become the basis of their social capital.

There has been a significant reawakening of interest in the applicability of action learning as a paradigm for management development, particularly as a pedagogical device in both classroom and executive development contexts. This development has occurred against a background of a wider re‐examination of the theory and practice of management education and development. Fundamentally, this re‐examination has been stimulated by criticism of the static, content‐oriented approach as inappropriate to the changing environment of the 1990s. In particular, there is a shift required for effective management: business schools will have to focus on the day‐to‐day realities of the business world, develop communication and leadership skills and emphasise continuous attention to the links between theory and practice. The implications are twofold: first, the range of teaching techniques must be extended to include process‐oriented approaches; second, and more fundamentally, there is a need for an expanded definition of the learning arena itself, and of the role of management schools within that. Renewed interest in and attention to the concept of the learning company, and to processes of both individual and organisational learning, redefines the context within which these changes are taking place. Reviews a number of key developments in this understanding of contemporary management education and development, and presents a summary of a new programme built as an action‐ and implementation‐oriented approach to entrepreneurial senior executive development. This programme aims to support the development of leadership in both large and smaller, growth‐oriented, companies, in a partnership which breaches the conventional separation both between the encapsulated learning arenas of the university and the organisation and between management and entrepreneurship education and development. This partnership emphasises the impact of intra‐group and interorganisational learning on both the participants and on the context of their organisations.

Corporate co‐branding is analysed within the context of a case study of the sponsorship relationship between adidas and the New Zealand Rugby Union. The study indicates that corporate brands may develop co‐branding relationships in order to redefine brand identity, discursively reposition the brand and build brand equity. Corporate co‐branding is established at a fundamental brand values level that, in turn, influences the type of marketing communication campaign that may be undertaken. Discourse theory provides insights into the importance of an articulation campaign in order to increase the equity of corporate brands. Co‐branding offers corporate brands access to the brand strategy of the co‐brand partner, the alignment of brand values, the marketing communication association and brand reach and network of relationships.

Attribution bias can be costly to firms because it hinders decision makers’ ability to infer the real cause of prior events and take corrective action to improve future performance. This study extends prior research by examining whether and how the presence of variance reporting from accounting systems affects firm profitability through a labor cost management decision that is highly susceptible to attribution bias. Our results support the prediction that the presence of variance reporting (process feedback) increases the likelihood of belief revision and corrective action related to the systematic error, and thus increases overall profitability for the firm. The findings of our study propose a solution to attribution and learning problems observed when decision makers are responsible for both cost management and bids as documented in prior literature.

Addressing a gap in entrepreneurial training programs, the main objective of this study was to introduce a hybrid training model that provides training to entrepreneurs after they have started their operations and before they become large and/or well established. The presented model consist of a full entrepreneurship training program suited to serve entrepreneurs who have been operating for no less than 2 years, have 1–14 employees, and need basic training to further achieve their operational goals. This format allows for progressive learning while encouraging networking among participants. Using a case study, 5 years of data are presented describing this program and its value for its participants including urban entrepreneurs.

Entrepreneurship is one of the fastest growing disciplines at colleges and universities today. Programs span campuses offering traditional coursework and a variety of experiential learning options for students from all majors. While most agree that as much learning, if not more, occurs outside of the classroom, there has not been a model for integrating curricular and cocurricular components in entrepreneurship programs. Moreover, there has not been clear agreement on how to assess value from these programs.

To resolve this, we used a five-phase competency development process to create a customized learning model that engages the learner, the educator, and the community volunteer in the learning and assessment process at both the individual and program levels. This chapter presents a case study in a private, metropolitan university of 8200 students. The case study presents the problem and rationale, a history and overview of the application of competency-based education, and a five-stage process used to develop the model and apply the model to achieve a customized learning path for students in entrepreneurship.

The five-stage model of competency-based education can be applied to develop a customized learning approach and assessment path for students who study entrepreneurship. The use of a technology support platform can extend and simplify the use of this model and allow for the integration of curricular and cocurricular components of an experiential education.

This is a unique approach to integrating curricular and cocurricular education to provide a holistic experiential education for learners. The value of this program extends to faculty who assess learning and volunteers who participate in the learning experience. Specific attention is given to the challenges and process for curriculum mapping and the use of this model for assessment.

Purpose: To ascertain small business (SB) managers’ perspectives on their educational and support needs for their managerial tool box. Design/Methodology/Approach: Semi‐structured face‐to‐face interviews were conducted in New Zealand, with 19 SB managers to ascertain their perspectives about business learning opportunities. Data analysis was conducted using thematic analysis. Findings: Four skills for small business learning were identified: basic (day‐to‐day management skills), coping (time management and priority setting skills), psychological (emotional/social skills) and networking skills. Value of the paper: A model with three phases and three parallel streams of learning was developed that has potential to enhance survival rates of SBs. Further, the psychological aspects of being a SB manager are highlighted. Research limitations/implications: Feelings and emotions may be more significant than capabilities. Practical implications: The pedagogic practices should be accepting, affirming and confirming, to provide social/emotional and psychological support to SB managers.