MAPAMOND

 MANAGEMENT

 

pag. 240	Capital structure and firm value: an empirical analysis of abnormal returns Author: Faris Nasif AL-SHUBIRI
	Abstract This study investigates whether capital structure is value relevant for the equity investor. In this sense, the paper links empirical corporate finance issues with investment analysis. This study also integrates the Miller-Modigliani (MM) framework (1958) into an investment approach by estimating abnormal returns on leverage portfolios in the time-series for different risk classes. For most risk classes, abnormal returns decline in firm leverage. Descriptive statistics, simple and multiple regressions are used to test the hold indicator significance. The results reflect that the designed measures are the negative relationship between returns and leverage could also be due to the market's pricing of the firm's ability to raise funds if need be. Further avenues for research in this area include examining the stock return performance of companies based on the changes in leverage of the firms relative to their risk classes. It would be particularly noteworthy to examine the rate at which the information content of said changes is incorporated in the share prices of companies as well as in their long run returns This study encompasses all non-financial firms across the five sectors that cover all the various classes of risk. This study investigates neither the determinants of multiple capital structure choices nor changes in capital structures over time. Our main goal is to explore the effect of capital structure on cumulative abnormal returns. This study also examine a firm's cumulative average abnormal returns by measuring leverage at the firm level and at the average level for the firm's industry. And also examine other factors, such as size, price earnings, market-to-book and betas.. JEL Classification:G32, G34, G20 Keywords: capital structure; agency cost; firm value

 

pag. 254	Productivity measurement and growth in Nigeria: challenges and prospects Authors:   Richard INGWE, Chibueze C. IKEJI, Judith E. OUT
	Abstract Productivity (growth) measurements (describing the assessment of an economy's rate of change in the ratio of a volume measure of output to a volume measure of input use) and related analysis are regular undertakings by staff of economic development of most nations and development institutions such as the OECD. Although they strive to accomplish objectives related to studying efficiency or the achievement of maximum output physically achievable under the use of current technology and given inputs, accounting for the contribution of real costs savings; introduction of benchmarks for production processes and to highlight living standards obtaining at points in time, its emphasis has been at the expense of examination of issues related to society (institutions), history, innovation and productivity change, which are concerned with promoting growth beyond mere productivity accounting. This paper has attempted to address all these issues as they pertain to Nigeria's rather stagnant or declining economy. This slight modification was prompted by changes from philosophers concerned with the wider area of productivity measurement and change. The literature agrees that productivity measurement (growth accounting) only ''identified the significance of different proximate sources of growth'' but fails to employ institutional, historical case studies to investigate the underlying causes of the growth, innovation and productivity change. Details of deficiencies related to the foregoing issues are examined and policy recommendations drafted and presented to assist practitioners, policy and decision makers and other stakeholders. JEL Classification: O47, R11, R58, J24 Keywords: productivity; change; improvement; growth; labour; corruption

 

pag. 269	The effects of foreign direct investment on economic growth: evidence for Togo Author: Maman Tachiwou ABOUDOU
	Abstractt The objective of this paper is to examine the effect of foreign direct investment (FDI) on economic growth. I use data running over 33 years from 1975 to 2008. Generally, the results, obtained by using the ordinary least squares (OLS) methods show foreign direct investment (FDI), Trade volume, and Human capital to have a positive impact on economic growth. There is some evidence that inflation and Government consumption to found to have a negative impact on economic growth. The empirical analysis shows that FDI alone plays an ambiguous role in contributing to economic growth. JEL Classification: F21; F23; O40 Keywords: foreign direct investment; Togo; economic growth

 

pag.283	Rural development scheme of Islami Bank Bangladesh Limited -A study on its growth, effectiveness and prospect in Bangladesh Authors: Mohammad Saleh JAHUR , S. M. Nasrul QUADIR
	Abstract Most of the people of Bangladesh are living under poverty line. To alleviate poverty, thousands of NGOs and GOs have been working since the inception of the Bangladesh. But the success rate of these programs appears to be insignificant. Rural Development Scheme (RDS) being a shariah and teaching of Islam based technique has been introduced in order to graduate the rural poor from poverty trap by bringing them in the main stream of economy by providing micro-credit and teaching for value creation. The present study has been undertaken aiming at evaluating the effectiveness of the program and its prospect. It has collected both primary and secondary data, and analyzed these with the help of both financial and statistical techniques. The findings of the study are: the growth performance of RDS in important parameters are robust across study period, and RDS influence the income and income generating activities of borrowing members significantly. Finally the study has put forward some logical suggestions for enhancing the sustainability as well as robustness of the program. JEL Classification: G21, O18, R18 Keywords: Rural Development Scheme; investment; income; deposits; members and IBBL

 

pag.300	Systematic framework and measures of economic policy in function of Serbian agriculture improvement requirements Authors:  Branko KATIÆ, Drago CVIJANOVIÆ, Lana IVANOVIÆ
	Abstract One of the most significant economic activities in Serbia is agriculture, which also represents the base for food industry and some other branches of processing industry. In this field Serbia finds its developmental opportunity in future period. Inclusion of the country in EU, as well as in the World Tourist Organization, implies appropriate preparation and qualification in this field, so there could be more successful deal with rising competitiveness of foreign goods, in conditions of increasing liberalization level of foreign trade. Therefore, domestic regulatory rules must be adjusted to EU regulatory rules, like as concrete measures regarding agriculture and rural development improvement must be adjusted to the measures in the Joint EU Agrarian Policy. Serbian agriculture is in quite bad condition, and financial possibilities of the state, to expedite its development by abundant assets, are still insufficient. In terms of recession, caused by world economic crisis, too, incentive assets reduce, while making business in this field become more and more aggravated. This paper points out, in short, to significance and condition of agriculture in Serbia, on regulatory rules and future plan documents important for this field, as well as on concrete measures, which have to be undertaken in order to improve this activity.. JEL Classification: Q15, R14, R52, R58 Keywords: agricultural production; legislature in the field of agriculture; developmental documents; rural development, incentive measures

 

pag. 321	Considerations regarding investments efficiency in agriculture Authors: Claudiu CICEA, Jonel SUBIC,  Corina PIRLOGEA
	Abstract In the present days, we consider that it will be very interesting and useful to do some research on the agricultural sector (distinct from the industrial and other sectors of economic activity), although the process of globalization in modern economies determine trends converged approach and integrated development of rural and urban areas. In this paper we will try do some considerations regarding the problems of agricultural production and some characteristic ways of addressing the economic efficiency of investments held within it. JEL Classification: Q10 Keywords: agriculture; efficiency; investments; effectiveness

 

pag. 332	Analysis of the solid waste management practices in Chinhoyi: bridging the missing link Author:  Ishumael SANGO
	Abstract Over the years, there has been noticeable and steady mismatch between urban population growth and capacity for managing the corresponding increases in solid wastes. The local community is greatly concerned because it is aware of the clear link between poorly managed waste and the potential for the spread of diseases. This study was carried out to examine the solid waste management practices in Chinhoyi urban area and assess the impacts on the environment and human health. The study combined quantitative and qualitative data collected through fieldwork, questionnaires, interviews and document reviews. The population of Chinhoyi stands at about 60 000 generating more than 100 tons of waste per day. Results of the study include high percentage of uncollected waste, high levels of health and safety related problems such as lacerations, contusions, strain/sprains, and illness as well as noticeable deterioration of facilities and the environment. Issues affecting the effective management of waste are discussed. Recommendations based on the sustainable principle of integrated solid waste management are suggested. Sustainability requires the system to be environmentally effective, economically affordable, and socially acceptable. JEL Classification: Q53, Q56, R58 Keywords: solid waste; integrated solid waste management; sustainability

 

pag. 348	Environmental impact of ICT and implications for e-waste management in Romania Authors:  Nadia CIOCOIU,  Stefan BURCEA,  Valentina TARTIU
	Abstract The development of Information and communications technology (ICT), as core of the digital economy, presents contradictory effects on the environment. The paper presents the main perspectives of environmental impact of ICT, especially in relation with waste electrical and electronic equipment (WEEE, e-waste), as they result from the approaches found in literature and the reports of official international and national bodies. The analysis of impact on environment and e-waste is done on two levels: the impact of ICT sectors and the impact of electronic applications (including the electronic commerce). The article ends with customizing the characteristics of the digital economy in Romania. Particular attention is paid to WEEE generated from the development of the digital economy and the significant challenges which the systems of collection, treatment and disposal must meet the environmental requirements JEL Classification: Q44, Q53 Keywords: information and communications technology (ICT); digital economy; environmental impact; waste electrical and electronic equipment (WEEE, e-waste)

  

pag. 361	Credit scoring for individuals Authors:  Maria DIMITRIU, Elena Alexandra AVRAMESCU, Rãzvan Constantin CARACOTA
	Abstract Lending money to different borrowers is profitable, but risky. The profits come from the interest rate and the fees earned on the loans. Banks do not want to make loans to borrowers who cannot repay them. Even if the banks do not intend to make bad loans, over time, some of them can become bad. For instance, as a result of the recent financial crisis, the capability of many borrowers to repay their loans were affected, many of them being on default. That's why is important for the bank to monitor the loans. The purpose of this paper is to focus on credit scoring main issues. As a consequence of this, we presented in this paper the scoring model of an important Romanian Bank. Based on this credit scoring model and taking into account the last lending requirements of the National Bank of Romania, we developed an assessment tool, in Excel, for retail loans which is presented in the case study.. JEL Classification: E51, G31, D81 Keywords: Credit scoring; credit risk; retail loans

 

pag. 378	Credit risk analysis at the level of an operative branch of the bank Authors:   Imola DRIGA, Dorina NITA, Codruta DURA
	Abstract Credit risk is most simply defined as the potential that a borrower/counter party will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maintain credit risk exposure within targeted limits so that the bank can maximize risk adjusted return. In such cases, the account of the customer inevitably becomes overdue, the granted loan turns into a non-performing credit and the lending bank registers a decline of its profit. In order to prevent such situations, commercial banks must take certain measures of reducing credit risk. In order to assess the exposure to credit risk, we can operate with a system of indicators based on information obtained from financial statements. The paper presents how the exposure to this type of risk can be evaluated at the level of an operative branch of the bank. JEL Classification: C02, D80, G21, G32 Keywords: risk management; financial risks; credit risk; overdue credit

 

pag. 391	Assessment methods for gaining efficiency within the financing process of Public-Private Partnerships Authors:  Ion VASILESCU, Virginia CIOBOTARU, Oana Catalina TAPURICA, Florin TACHE
	Abstract The paper aims to emphasize the role, as well as the importance and viability, of developing complex investment projects within Public - Private Partnerships, by analysing the previous experience of developed countries regarding this kind of associative structures. Assuming that some of the public - private partnerships are neither necessary, nor efficient, the paper presents an innovative methodology for assessing the efficiency of the investment projects, financed within Public - Private Partnerships, based upon a set of benchmarks, which are designed to provide objective and precise information about the subject in focus. Positioning each partnership in relation to specific benchmarks represents the main decision tool for building-up Public - Private Partnerships JEL Classification: L33, R53 Keywords: Public - Private Partnership; efficiency; benchmarks; Local Action Groups; Eco-Efficient Spin-Off.

 

pag. 407	Professional performance evaluation within the Romanian administrative system Author:   Cristina MANOLE
	Abstract The current economic crisis, manifested in the entire world, highlights the need for sustained involvement of the local and regional authorities in each country, in conceiving and implementing Community policies (which already exist at European level) having an essential role in implementing the economic plans achievement. This view was shared by all European Union Member States, of which Romania is part, since 2007. Therefore, the economic crisis which is reflected in the Romanian society today, requires prompt and sustained intervention by the authorities in the execution of the economic recovery plan, implying the community strategies, due to sharply budgetary expenses cut, which is found in all European countries. In order to achieve this major objective, the Romanian authorities should have qualified and properly motivated personnel through an adequate remuneration, according to the training, skills, responsibilities and especially individual performance obtained at each position, as it happens in most developed countries of the European Union. In this context, this study approaches the issues related to the performance evaluation of the public sector's employees. Considering the fact that strengthening and developing the human resources segment is a strategic goal of the Romanian administration for the period 2008 - 2013, which will lead to modernizing it and making it more efficient (at both central and local level), the personnel performance evaluation, at the organizational level represents a fundamental activity from the human resources' management perspective JEL Classification: H83, J31, K23. Keywords: performance evaluation; performance indicators' system; human resources management; Romanian administration

 

pag.427	The participation of population  at education by residence in Romania Author:  Cristina NECULAI
	Abstract The investment in education is one way in training and development of human capital, which together with investment in physical capital, forms vectors for sectors' modernization of Romanian economy and of the evolution of Romanian society. For the increase of the competitiveness on the global economic market, the Romanian society, in general, and the Romanian economy, in particular, must be modernized through the implementation of investments both in physical capital and human capital. Education can be a significant force for development of Romanian society through: the number of participants, the size and the competence of the training's personnel, the information's and distribution's materials, the providing knowledge and consultancy etc. The formal education with the non - formal education and the informal education can stimulate the economic and the social activities, by area of residence, and may be important factors to reduce  the competitiveness's gap of our country compared with EU countries. On this line, we believe that the education and the training, the achievement of the new knowledge,  skills and  competencies by the occupied population may become important factors of progress for Romania on the European and World market. We believe that,  in rural area,  the increasing of the population's participation, at all levels of formal education and the population's attending at the courses that allow the acquiring of  new knowledge and skills, in the non-formal's and the informal's learning system,  is a necessity for the development and the modernization of this area. JEL Classification: Q10, I21, R11 Keywords: secondary and vocational educational; higher educational; pupils/students enrolled per educational institution; graduates per educational institution; teachers per educational institution

 

pag.  437	The maintenance management  for lean organization Author: Daniel D. GEORGESCU
	Abstract The goal of lean maintenance approach is to maintain organization international competitiveness. In the spirit of continuously improvement, in the paper it is shown how by adjusting some Lean manufacturing specific techniques for Total Productive Maintenance (TPM) system, was born new maintenance system named Lean TPM. This is a systemic approach with three techniques, which don't exclude specific techniques of TPM pillars, but complete them: the 7Ss as a critical first step in any improvement program; instantaneous maintenance; improvement setup operations. In the spirit of Lean principle, Lean TPM adjusts overall equipment effectiveness concept for all supply-chain from supplier to customer. Maintaining equipment in its optimal state and continually improving its productivity is the whole strategy behind Lean TPM. JEL Classification: L10, L20, M10 Keywords: Kaizen;, management; maintenance; lean manufacturing

 

pag. 447	Using NLP meta, Milton, metaphor models, for improving the activity of the organization Author:  Cornel Marian IOSIF
	Abstract The objective of this paper is the improving of the three methods from the neuro- linguistic programming - metaphor, Milton model and the meta-model, so by using this in daily activities by an organization to improve the activities witch, are performed and to have a more efficient allocation of the available resources. JEL Classification: M10, M12 Keywords: neuro linguistic programming (NLP); metaphor; Milton model; meta-model

 

pag. 457	Qualitative factors in the healthcare services Authors:  Claudiu CICEA, Gheorghe ALEXANDRU, Sebastian Mãdãlin MUNTEANU
	Abstract It is known that the efficiency of medical services is a broad social and economic concept, influenced by both numerical-quantitative and non-numerical-qualitative factors. The dynamic nature of technical progress and the accelerated pace of scientific discoveries in the field of health, enhances the size and complexity of economic issues related to assessing the efficiency of these social activities JEL Classification: I10, I18 Keywords:  evaluation, efficiency, healthcare services

  

pag. 470	New medical trends and policies throughout Central and Eastern Europe Author:  Cristina Teodora NEAGU
	Abstract This paper presents some of the main medical trends and some specific policies in the field of human medicine produced in Central and Eastern Europe in the past decades. JEL Classification: I11, I18 Keywords: family medicine reform, general practitioners' list, capitation payment, gate-keeping principles, expectations of access, choice and convenience

 

pag. 478	The strategic development of the Manchester United football club Author:  Vlad ROSCA
	Abstract The entry in an informational society which is developing day by day has increased the importance of economics on the professional sports market. The ways of economy and sport have aways met, but they were never so interdependent as in our days. In order to resist on the market, but especially in order to be competitive and to obtain sporting succes, a modern football club must consider managerial practices which to permit a good economic development. Manchester United is one of the most diversified football clubs in the world, earning income from various markets, such as the gambling, clothing, hospitality and alimentation or entertainment markets. The research presents some of the diversification forms Manchester United has used in order to grow its financial incomes. JEL Classification: M21 Keywords: Manchester United, diversification, strategic alliances, cooperations, football management, development

  

pag. 485	Methodological issues concerning the development of sustainable industrial parks Authors:  Marian NASTASE, Catalina RADU (GHERASE), Oana - Catalina TAPURICA, Florin TACHE
	Abstract Nowadays, in order to make a sustainable economic growth possible, especially within manufacturing industries, with auspicious effects concerning the standard of living and the employment rates, the governments should develop and implement projects and strategies, aiming the transition towards knowledge-based economy. The entities that need investments the most are the countries which are crossing a development process, usually facing difficulties in developing a high-performance industrial sector. Under these circumstances, industrial parks prove to be important tools in order to ensure the competitiveness of the national industry. However, the more and more frequent relocation of industrial companies within industrial parks, as a consequence of amplifying the urban areas' environmental regulations, is due to generate uncontrollable pollution centers, placed just nearby towns and cities, with highly destructive impact upon the environment. This article aims to describe and recommend several strategic options for developing sustainable industrial parks, focused on protecting the environment and promoting the ''new economy's'' principles. Among the strategic options recommended, some of them are highly innovative, such as environmental benchmarking or environmental leadership. JEL Classification: O44, P48 Keywords: industrial parks, sustainable development, environment protection, environmental economics, environmental leaders, SME's development, pro-active environment strategies

 

pag. 495	Project cost analysis under risk Authors:  Florica LUBAN, Daniela HINCU
	Abstract In this paper, an integrated approach based on Monte Carlo simulation and Six Sigma methodology is used to analyze the risk associated with a project's total cost. Monte Carlo simulation is applied to understand the variability in total cost caused by the probabilistic cost items. By Six Sigma methodology the range of variation of the project cost can be reduced by operating on the input factors with the greatest impact on total cost to cover the variation of 6s between the limits that were established in the design phase of Six Sigma. JEL Classification: C63, D24, D81 Keywords:  Project cost risk; Six Sigma; Monte Carlo simulation

  

pag. 504	Benchmarking and performance management Authors:  Adrian TANTAU, Laurentiu FRATILA, Cosmin GRIGORE
	Abstract The relevance of the chosen topic is explained by the meaning of the firm efficiency concept - the firm efficiency means the revealed performance (how well the firm performs in the actual market environment) given the basic characteristics of the firms and their markets that are expected to drive their profitability (firm size, market power etc.). This complex and relative performance could be due to such things as product innovation, management quality, work organization, some other factors can be a cause even if they are not directly observed by the researcher. The critical need for the management individuals/group to continuously improve their firm/company's efficiency and effectiveness, the need for the managers to know which are the success factors and the competitiveness determinants determine consequently, what performance measures are most critical in determining their firm's overall success. Benchmarking, when done properly, can accurately identify both successful companies and the underlying reasons for their success. Innovation and benchmarking firm level performance are critical interdependent activities. Firm level variables, used to infer performance, are often interdependent due to operational reasons. Hence, the managers need to take the dependencies among these variables into account when forecasting and benchmarking performance. This paper studies firm level performance using financial ratio and other type of profitability measures. It uses econometric models to describe and then propose a method to forecast and benchmark performance. JEL Classification: O30, O47, M10 Keywords:: benchmarking, competitiveness, innovation, indicators

 

pag. 512	The intersections between TRIZ and forecasting methodology Authors:  Georgeta BARBULESCU, Gabriela IONESCU
	Abstract The authors' intention is to correlate the basic knowledge in using the TRIZ methodology (Theory of Inventive Problem Solving or in Russian: Teoriya Resheniya Izobretatelskikh Zadatch) as a problem solving tools meant to help the decision makers to perform more significant forecasting exercises. The idea is to identify the TRIZ features and instruments (40 inventive principles, i.e.) for putting in evidence the noise and signal problem, for trend identification (qualitative and quantitative tendencies) and support tools in technological forecasting, to make the decision-makers able to refine and to increase the level of confidence in the forecasting results. The interest in connecting TRIZ to forecasting methodology, nowadays, relates to the massive application of TRIZ methods and techniques for engineering system development world-wide and in growing application of TRIZ's concepts and paradigms for improvements of non-engineering systems (including the business and economic applications). JEL Classification: C18, C53 Keywords::  forecasting, TRIZ, methodology, problem solving

  

pag. 521	The composite indicators used in assessing innovation at national level Authors:  Daniela HINCU,  Laurentiu Catalin FRATILA Robert SOVA
	Abstract The purpose of present paper is to present some recent developments in constructing composite innovation (or even, science and technology S&T) indicators on a national level. Measuring innovation at the national level is crucial in developing appropriate long term strategies for economic growth, because it is widely believed technological innovation is one of the main drivers of sustained economic-social welfare, if not the single most important driver of economic growth. Our purpose is to present a mapping exercise of metrics - based on composite indicators - found in the STI literature, pointing out those used in practice, with a view to corresponding values in the case of Romania. It has become standard practice to combine several indicators for science, technology, and innovation to form composite numbers. Composite indicators are increasingly being used to make cross-national comparisons of country performance in specified areas such as competitiveness, globalisation, innovation, etc. JEL Classification::O31, O32, C54 Keywords:: Innovation, innovation metrics, Science and Technology indicators, composite indicators, National Innovation Systems, Scoreboards