Search results

The purpose of this paper is to establish the flow-to-equity method, the free cash flow (FCF) method, the adjusted present value method and the relationships between these methods when the FCF appears as an annuity. More specifically, we depart from the two most widely used evaluation settings. The first setting is that of Modigliani and Miller who based their analysis on a stationary FCF. The second setting is that of Miles and Ezzell who worked with an FCF that represents an autoregressive possess of first order.

Inspired by recent observations in the literature concerning cash flows, discount rates and values in discounted cash flow (DCF) methods, we mathematically derive DCF valuation formulas for annuities.

The following relationships are established: (a) the correct discount rate of the tax shield when the free cash flow takes the form of a first-order autoregressive annuity, (b) the direct valuation of the tax shield from the free cash flow for a first-order autoregressive annuity, (c) the correct translation from the required return on unlevered equity to the levered equity, when the free cash flow is a stationary annuity and (d) direct calculation of the unlevered and levered firm values and the value of the tax shield for a stationary annuity.

Until now the complete set of formulas for the valuation of stochastic annuities by different DCF methods has not been established in the literature. These formulas are developed here. These formulas are important for practitioners and academics when it comes to the valuation of cash flows of finite lifetime.

The primary purpose of this paper is to develop the translation formula between the required return on unlevered and levered equity for the specific case where cash flows have a finite lifetime and the flow to debt is prespecified. The secondary purpose of this paper is to underpin the importance of the type of stochasticity of cash flows for translation formulas. A general derivation of such formulas and the discount rate in the free cash flow approach is shown.

The paper starts with the same assumptions that have been applied by Modigliani and Miller (1963), Miles and Ezzell (1980) and other researchers. Then the paper develops the mathematical foundations to apply a deterministic backward-iterative scheme for valuing cash flows. After stating the valuation formulas for levered and unlevered equity, debt and tax shields, the authors mathematically derive the relationship between the unlevered return and levered return on equity.

Conventional translation formulas apply to very special cases. They can generally not be used for projects with nonconstant leverage and a finite lifetime. In general, translation formulas depend on continuing values, cash flows, leverage, taxation, risk-free rate, etc. In this paper, the translation depends on the structure of the debt in addition to the well-known parameters in conventional formulas. This paper formula contains the Modigliani-Miller translation formula as a special case.

The authors develop a novel formula for the translation of the required return on unlevered to levered equity. With this formula, the authors offer a solution for the consistent valuation of cash flows with a limited lifetime and given debt financing.

This paper sought to determine how a major sport event can become trapped in a winner's curse, in which the fierce competition to host the event forces organisers to spend more on acquiring and hosting it than what it is worth in economic terms.

This study used a combination of document analysis and 47 in-depth interviews with 51 individuals representing various private and public organisations involved in the implementation of the UCI 2017 Road Cycling World Championship. Snowball sampling and a semi-structured interview guide were used to ensure coverage of all relevant information.

The organiser and the host municipal lacked the necessary experience with events of this size and character. Information from previous championships events was not transferred, and the municipality administration did not utilise experiences from hosting previous events. Limited financial resources prevented the organiser from hiring enough employees with the necessary competence. Lack of communication between the stakeholders who contributed in hosting the event reduced the quality of planning and preparations. A dubious culture and lack of seriousness within the Norwegian Cycling Federation, which was the owner of organising company, seemed to have been transferred to organiser.

The research identifies some of the reasons why major sports events so often turns out to be more problematic than expected in economic terms, not only for the organiser but also for actors in the public sector in the host city. The novelty is that it goes into depth on the underlying reasons and the dynamic forces behind these problems.

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of material poses problems for the researcher in management studies — and, of course, for the librarian: uncovering what has been written in any one area is not an easy task. This volume aims to help the librarian and the researcher overcome some of the immediate problems of identification of material. It is an annotated bibliography of management, drawing on the wide variety of literature produced by MCB University Press. Over the last four years, MCB University Press has produced an extensive range of books and serial publications covering most of the established and many of the developing areas of management. This volume, in conjunction with Volume I, provides a guide to all the material published so far.

Sociologists of crime and deviance have devoted considerable time and effort, in recent years, to the study of deviants' accounts of their activities. There are good reasons why students of deviance in particular should be interested in what can be learned from their subjects' explanations of their social practices. Actors are normally called to account for or to explain their activities precisely when these actions are seen by significant others to be in some sense “unreasonable”. Moreover, accounts are central to the processes of law. The purpose of legal judgements is to attribute or withold responsibility. In order to assess an individual's guilt, where criminal activities are concerned, lawyers, judges, and juries pose such questions as: “Did the defendant perform an illegal act?”; “if so, can he or she explain his or her actions in reasonable terms?”; “Was the act in question pre‐meditated?” (that is, “motivated”); and, perhaps most important of all “What is the relationship between the accused's account of his or her involvement in an act, and their real involvement?”

This chapter examines the emergence of India as a site for surrogacy, which has led intended parents from all over the world to contract with Indian gestational surrogates to carry “their” babies for them. Through participant observation in a surrogacy workshop, interviews with American intended parents, and interviews with Indian surrogates, I show how ideologies of normative, nuclear families built around genetically similar children, drives American consumers' desires to seek fertility intervention, and, finally, surrogacy. In India, gender ideologies shape the contours of an inexpensive, compliant labor force of surrogate mothers.

This paper aims to explore the role of management controls in managing heterogeneous interests during extreme situations.

Through interviews and observations, the authors analyse the Swedish Migration Agency’s management controls and study routines during the peak of the European Migrant Crisis.

Prior to the crisis, the strategy used by the employees was to mediate between two interests (labelled legal security and empathy) to create a workable compromise. During the crisis, however, the authors observed filtering in the form of the previous hierarchical ordering of interests was further strengthened as the employees increasingly relied on just a single interest (the interest which they previously had deemed to be the most important) at the expense of the other interest. The findings suggest that behavioural and social controls helped such filtering; social controls helped certain employees to filter the empathy interest as more important during extreme situations and behavioural controls helped other employees to filter the legal security interest as more important. This help us explain why the authors observe less mediation between the two heterogeneous interests and rather a stricter dominance of one of the interests. The authors also illustrate how especially behavioural controls may become unsupportive of the operations during extreme situations as it consisted of rule-based standards, built to cope with “normal” situations. The heterogeneous interests affected the probability of actors, at times, ignoring behavioural controls when such controls were unsupportive. Actors whose day-to-day operations were mainly guided by the legal security interest remained tightly coupled to behavioural controls even when they felt that these controls were no longer useful. On the other hand, actors who were mainly guided by the empathy interest ignored behavioural controls when they felt that they were unsupportive.

The authors acknowledge that bias might arise from the reliance on retrospective views of past processes and events, which the authors primarily gathered through interviews.

The authors highlight an important relationship between heterogeneous interests (i.e. legal security and empathy) and management controls during the crisis and how this relationship can lead actors to fundamentally different actions.

The two bodies of study on the role of management controls in managing heterogeneous interests and the role of management controls during the crisis have been largely unconnected and it is in this intersection that this study contributes.

Purpose – UK urban state schools have recently experienced increased pressure to improve pupil performance levels and punitive policies appear to be one way of dealing with “problematic” young people. While some are permanently excluded for serious acts, others, who are by comparison less problematic, are unofficially “excluded” and referred to off-site educational provision (OSEP) where they receive reduced timetables and unchallenging courses. This research study set out to examine why 20 young people were “unofficially” excluded from school and their progress in OSEP.

Methodology – The study made use of ethnographic methods with 20 excluded young people in one south London borough in the UK. The research was undertaken from March 2009 to August 2009.

Findings – This chapter shows how “unofficial” exclusionary processes, to which these urban young people are exposed, have implications for their identity, self-worth and lifestyles, and makes them increasingly vulnerable to crime and victimization. The chapter makes use of labeling perspectives to understand the significance of the social reaction to deviant labels young people receive in school (Becker, 1953) and how they respond as a consequence (Lemert, 1972).