I study the optimal choice of investment projects in a continuous time moral hazard model with multitasking. While in the first best, projects are invariably chosen by the net present value (NPV) criterion, moral hazard introduces a cutoff for project selection which depends on both a project’s NPV as well as its signal to noise ratio (SN). The cutoff shifts dynamically depending on the past hi...

Previous research (cf. B. M. Staw, Academy of Management Review, 1981, 6, 577-587) has found that when managers are given negative feedback on an initial individual investment decision, they allocate more additional funds to that investment if they, rather than another member of their organization, made the initial allocation decision. Justification is thought to underlie this phenomenon. This ...

Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...

Scholars working in the ‘law and finance’ field have investigated empirically the links between various types of law and the incidence of venture capital finance. However, no study to date has systematically investigated the relationship between insolvency law— both personal and corporate—and venture capital finance. This paper argues that a nation’s personal insolvency law may have an importan...

The classical Rough Set Theory (RST) always generates too many rules, making it difficult for decision makers to choose a suitable rule. In this study, we use two processes (pre process and post process) to select suitable rules and to explore the relationship among attributes. In pre process, we propose a pruning process to select suitable rules by setting up a threshold on the support object ...

The paper investigates the role of trust in fund managers’ investment process. Three types of trust personal trust, organizational trust and system trust have been identified in Chinese fund managers’ investment practice. The impacts of different types of trust on mutual funds’ performance are then examined empirically. Through an in-depth investigation of 96 actively managed Chinese mutual fun...

Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...

Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...

Several countries around the globe have established mandatory pension systems based on personal savings accounts. In contrast to the pay-as-you-go (PAYG) financed pensions that these new systems have partly replaced, retirement benefits are the outcome of an investment process. As a result, the choice of investment instruments and the timing of those decisions are crucial determinants of pensio...

This research addresses the problem: How do cross-cultural influences affect interorganisational formation and maintenance international business networks? In particular, the two concepts of stages of network development and psychic distance in partner selection are explored. A partnership between educational institutions and small and medium enterprises in developing trade relationships in the...