Introduction: The environment in which social enterprises and voluntary organisations operate is slowly changing. There is a shift in the relationship between the public sector and the social economy from a grant aid culture towards a contract culture. Investors and funders are beginning to fund outcomes rather than just outputs. Good practice is slowly emerging as part of this culture 2 change.
One effect of this change is increased pressure on social enterprises and voluntary organisations to prove the added value they produce if they wish to secure contracts or acquire investment.This section looks at the forces driving change in the business environment. It ‘makes the case’ that there is an increased focus on the social added value that social enterprises and voluntary organisations produce. This, in turn, leads to a necessity to measure and prove those impacts. Keep reading…
Case Studies about Principles for Investors in Inclusive Finance
Inclusive finance focuses on expanding access to financial services and products to poor and vulnerable populations, micro- and small enterprises, and those otherwise excluded from affordable and responsible financial products and services. This encompasses a wide range of financial services including savings, credit, insurance, remittances and payments. Investors approach investment in inclusive finance with different motivations.
Some are engaged because they actively seek to alleviate poverty and see the provision of financial services as a tool to do so. Some seek to be a responsible investor because they recognise that issues such as over-indebtedness are material when assessing financial risks and returns. Whatever the motivation, there is a variety of approaches to being a responsible investor. Keep reading…
With equity markets running into rough weather, the resolve of even the most steadfast investors has been tested. And rightly so. When equity markets were surging northwards, not many would have foreseen such a drastic turnaround. Now, its rather commonplace to find investors in panic mode. We recently interacted with such an investor. His panic was the result of acting on half-baked information and poor execution of right ideas. Since the case entails some common investment mistakes, knowing more about the same can prove beneficial for investors across the board. Click here to read more…
This paper brings into focus the impact of employee buyouts on corporate governance in transition ten years after the large-scale privatization took place in Russia. The analysis shows that although privatization employee buyouts have helped to reduce unemployment and prevent major social conflicts, it otherwise had a negative effect on corporate governance and firms’ productivity. An excessively large labor force and the management’s tendency to preserve the old Soviet-style corporate governance hampered the long-term growth of privatized enterprises in Russia. Unlike in many other transition countries employees in Russia were obedient to the directors who ruled the enterprises in the absence of any meaningful system of checks and balances. Employee ownership still remains a popular idea in Russia, but subsequent attempts of the Russian government to isolate enterprises from outside investors in the form of people’s enterprises have proved to be a failure … click here to read ahead
A Study about Probabilistic Analysis to Value Power Generation Investments under Uncertainty
Abstract: This paper reviews the limits of the traditional ‘levelised cost’approach to properly take into account risks and uncertainties when valuing different power generation technologies. We introduce a probabilistic valuation model of investment in three base-load technologies, and demonstrate using three case studies how such a probabilistic approach provides investors with a much richer analytical framework to assess power investments in liberalised markets. We successively analyse the combined impact of multiple uncertainties on the value of alternative technologies.
Introduction: Before liberalization, the electricity industry was dominated by state-owned utilities in Europe and private utilities under cost-of-service regulation in the US. These two industry frameworks corresponded to different approaches to the financing of utilities. In the US, electricity rates were set by regulators using cost-of-service regulation.Electricity prices were determined so as to provide the utility with a revenue equal to the ‘revenue requirement’, which corresponded to the revenue required to compensate a utility for all expenditures associated with construction and operation of a power plant.
In the following article, we will analyze an industry that has been heavily criticized due to its inability to generate profits. The financial performance of the US airline industry has been somewhat of a roller-coaster over the past 20 years. It is an industry that has seen its structure change more than once, it has been regulated and deregulated yet it is still a challenging puzzle for many economists and capitalists all over the world. Many investors would agree that putting one’s money into the airline industry is risky business.
Analysis of the U.S. airline industry forces suggests that the airline industry in its entirety, and particularly the large traditional airlines, must focus on managing their cost structure and listening to the voice of the customer. Any investment or activity that does not add value for the customer must be eliminated from an airlines operating process.
Case Studies about Organisational Failures and Trust Repair
Introduction: Trust is a fundamental building block to any successful organisation. Yet trust is at a premium for many contemporary organisations. Surveys point to a persistent and debilitating scepticism among customers, investors and other stakeholders in the trustworthiness of the business world. The Edelman Trust Barometer, conducted on a global basis, found that trust in business plummeted across the globe after the 2007-08 financial crisis.
Building an organisation’s reputation for trustworthiness can take a long time and requires considerable effort and investment. But what happens when a crisis or scandal hits an organisation and its reputation for trustworthiness comes under sustained threat? Recent examples include BP, News International, Castlebeck Care Homes, several banks and Foxconn. The process of trust repair and the recovery of reputation can be arduous, but it is achievable.
Sectors catering to rural consumption demand, education, housing, infra and lending will benefit, given the FM’s mandate to facilitate growth in the hinterland. Here are the sectors, impact of Union Budget 2013 on them and their concerns along with the top trading picks for investors…
Financial Performance of Non Banking Finance Companies in India
Introduction: The financial system comprises of financial institutions, financial instruments and financial markets that provide an effective payment and credit system and thereby facilitate channelising of funds from savers to the investors of the economy. In India considerable growth has taken place in the Non-banking financial sector in last two decades. Over a period of time they are successful in rendering a wide range of services. Initially intended to cater to the needs of savers and investors, NBFCs later on developed into institutions that can provide services similar to banks. In India several factors have contributed to the growth of NBFCs.
Objectives of the Study: The classification of NBFCs have been changed over a period of time. The functioning of different categories of NBFCs are not governed by the homogeneous factors. Therefore financial implication can differ for different group of companies. The financial performance of 10 leasing companies has been examined by Seem Saggar at disaggragate level and compared with other groups of NBFCs for a period of 1985-90. Moreover, the performance of all NBFCs taken together in terms of cost of debt, operating margin, net profit margin, return on net worth, asset turn over ratio etc. The study by Seema Saggar does not reflect the overall performance of NBFCs as it is based on selected 10 companies.
Company: The Export-Import Bank of Malaysia Berhad (EXIM Bank) is a specialized, government-owned financial institution for Malaysian investors, manufacturers and exporters seeking to sell their products and services to overseas markets. The bank provides credit to finance and support exports and imports of goods, services and overseas projects, as well as export financing insurance, overseas investment insurance and guarantee facilities..