Finance and Financial Management Commons^™

Surveying Cost Growth, Michael A. Greiner, Vince Sipple, Edward D. White

Faculty Publications

Cost growth that weapon systems incur throughout their acquisition life cycle concerns those who work in the acquisition environment. One way to reduce the amount of unexpected cost growth is to develop better cost estimates. In attaining better cost estimates though, it is often helpful to understand and account for potential cost drivers. Several cost studies, some of which specifically focus on the aircraft industry, have been performed documenting and investigating these growth factors. Overviews of these various cost growth studies are presented as other tools for the cost estimators and program managers.

Re-Examining Venture Capitalist Certification And Insider Selling Decisions During The 1990s., Nicholas S. Koshiw

University Avenue Undergraduate Journal of Economics

This paper addresses the validity of certification and insider selling hypotheses within the context of new issues. Comparisons of venture capital backed and non venture-backed issues with similar offering characteristics show that issuers with venture capital affiliation are more underpriced than non venture-backed IPOs and insider selling results in decreased underpricing. These results contradict the findings of previous venture capital certification studies {Barry (1990), Megginson and Weiss (1991), and Lin and Smith (1997)}, but are consistent with recent work that examines grandstanding {Lee and Wahal (2002)} and insider selling decisions during hot market periods {Ljungqvist and Wilhelm (2003)}.

Book Review. The Price Of Progress: Public Services, Taxation And The American Corporate State, 1877-1929 By R. Rudy Higgens-Evenson, Ajay K. Mehrotra

Articles by Maurer Faculty

No abstract provided.

Investor Skepticism V. Investor Confidence: Why The New Research Analyst Reforms Will Harm Investors, John L. Orcutt

Law Faculty Scholarship

Part I of this Article provides an overview of research analysts and their basic functions, including a discussion of sell-side analysts' role in the market's recent boom and bust. Part II examines the conflicts of interest that have plagued sell-side research, and Part III reviews the Regulatory Actions that are meant to address these conflicts. In Part IV, the author will make the case for encouraging, rather than lessening, investor skepticism in sell-side research and will explain why the Regulatory Actions are not likely to improve the performance of sell-side analysts. Finally, Part V will offer a simpler proposal to …

An Assessment Of Air Force Development Portfolio Management Practices, Michael A. Greiner, Kevin J. Dooley, Dan L. Shunk, Ross T. Mcnutt

Faculty Publications

Selecting and managing development project portfolios is a critical function within the Air Force’s weapon systems development process. Decision makers must weigh benefits, costs, and mission needs for a variety of proposed new initiatives and current weapon systems programs in order to develop an effective portfolio that provides the best value to the User. This research examines current Air Force development portfolio management practices as perceived by those involved with the decision making process. Research findings indicate several gaps between Air Force practices and those commercial best practices as found in the literature. A general approach for bridging the differences …

Proposal For A Centralized And Integrated Registry For Security Interests In Intellectual Property, William J. Murphy

Law Faculty Scholarship

As the world economy enters the twenty-first century, job and wealth creation is increasingly based on innovation and creativity that, in turn, can give rise to important intellectual property rights. For many companies and individuals these intellectual property rights may represent their most valuable assets, or in some cases, their only valuable assets. As a result, intellectual property rights increasingly play a critical the role in financing.

Unlocking the job and wealth creating potential of intellectual property assets requires putting these assets into use, and that often requires a capital investment. Unfortunately, many entrepreneurs and innovators lack the capital necessary …

Islamic Banking And Takaful : The Development And Future Challenges In Malaysia, Jalaludin Mohd Noor, Khairuddin Hanafiah

Student Works (2000-2009)

The establishment of the Mil Ghamr Local Savings Bank of Egypt in 1963 marked a new milestone in the development of Islamic banking system. The interest-free banking concepts introduced by Mil Ghamr signaled to the Muslim community that Islamic principles were applicable to modern day banking business. The government of Malaysia has been actively promoting Islamic banking with the view to have Islamic financial system operating side-by-side with the conventional interest-based system, Both are geared towards the nation's socio­economic development goals. The establishment of Bank Islam Malaysia Berhad in 1983 was the first step towards this vision. Ten years later, …

Daman Al-Mithl In The Contract Of Al-Ijarah And Al-Rahn : A Comparative Jurisprudential Study, Hossam Eldin Ibrahiem

Student Works (2000-2009)

Al-daman (guarantee) is one of the legitimate means used to protect ownership and other financial rights. It is one of the means of security upon which people have been dependent for a long time. As people use it, it develops with the development of their economic and commercial dealings. Al-daman has, as such become an important means which plays a vital and basic role in the development of modem economies. Its role is so vital that it is not an exaggeration to say that al-daman  has become the basic pillar of the modem economies and all commercial dealings for banks, …

Pemikiran Abu Yusuf Mengenai Kewangan Islam : Kajian Dalam Kitab Al-Kharaj, Hanin Mahamud Azaki

Student Works (2000-2009)

This dissertation explains the contribution of Abu Yusuf in Islamic Finance based on his Kitab al-Kharaj in which he has been regarded as an outstanding Muslim thinker of Hanafi school of thought. In this work, Abu Yusuf highlighted the position of land taxation (al-kharaj) according to Islamic perspective. ln other words, it tries to view Islamic rulings concerning land tax, its procedures as well as its measurement. Hopefully it will assist in the implementation of land tax accordance with the spirit of Islam. Chapter one explains the background of Abu Yusuf, his teachers and writings. Chapter two mentions the theory …

Akad Al-Bay Bi Thaman Ajil Di Bank Rakyat Mengikut Perspektif Undang-Undang Kontrak Islam, Hamizan Mohd. Nor

Student Works (2000-2009)

Al-bay bi thaman ajil (BBA) is a financing contract according to Islamic principles. It is a well-known product and is offered by Islamic Banking System in Malaysia including Bank Rakyat itself. The product is an alternativies to the financing scheme of the conventional bank. Therefore, the dissertation studies the practice of SBA contract with attention given to the concept and nature of BBA contract in the Islamic transaction and its practise at Bank Rakyat. The study also discusses certain relevant concept such as debt, buy and selling (transaction), profits and usury in Islam all of which constitute some important aspects …

An Evaluation Of The Financial Sector Master Plan & The Capital Market Master Plan, Soo Yeong Ewe

Student Works (2000-2009)

The financial sector is poised to enter a new era of institutional development and maturity with the unveiling of both the Financial Sector Master Plan (FSMP) by Bank Negara Malaysia and the Capital Market Master Plan (CMP) by the Securities Commission in 2001. FSMP is a blueprint to chart the way forward for the country's banking, insurance and other financial sectors for the next decade from year 2001 to 20 I 0. It aims Lo develop a more resilient. competitive and dynamic financial system that will be able to meet the challenges of further liberalization and globalization. CMP is a …

Peranan Sekuriti Hutang Islam (Ids) Dalam Pasaran Modal Di Malaysia, Asmak Ab. Rahman

Student Works (2000-2009)

This research is a comparative study of debt securities in the capital market which play a vital role in economic development. The aim of the study is to highlight the roles of Islamic debt securities or lsamic bond in Malaysian capital market which could be operationalized as an alternative to the conventional debt securities. The former operates in accordance with legal principles of Islamic commercial law such as bay' af-murabahah and bay' al-dayn. The study concludes that Islamic debt securities have an Islamic task as an alternative in the development of capital market in Malaysia.

An Evaluation On Project Financing Under Islamic Banking, Sugunadevi Arjunan

Student Works (2000-2009)

Although Islamic banking has been in operation fo r more than a decade in Malaysia, it's market share and growth seem to be quite limited and fa ll far short of earlier projection. This study attempts to investigate one type of Islamic banking product, that is project financing. The objectives of the study are to assess the current level of Islamic project financing and its associated growth, to identify problems faced in the implementation of Islamic project financing under the Mudharabah and Musyarakah concepts and to demonstrate with a real life case study the costs of financing under Islamic banking …

A Comparative Analysis Of Conventional Banking System And Islamic Banking System In Malaysia In Relation To Loan Repayments, Baharin Salim @ Abdullah

Student Works (2000-2009)

The birth of Bank Islam Malaysia Berhad (81MB) in 1983 symbolized the Malaysian Government's initiative in establishing an Islamic banking system. After 17 years of operation in a market mainly dominated by conventional banks, BIMB has still unable to achieve its target of capturing a significant portion of this market. In this paper, the writer tries to observe the main differences between the conventional and Islamic banking system Malaysia in relation to loan repayments. Through this observation, strengths and weaknesses of the Islamic banking system can be identified. Recommendations can be made to help enhancing BIMB's performance in achieving the …

The Impact Of The Packard Commission's Recommendations On Reducing Cost Overruns On Defense Acquisition Contracts, David S. Christensen, David A. Searle, Caisse Vickery

Faculty Publications

Using data from selected acquisition reports, Drezner et al. (1993) show that reform initiatives from 1960 to 1990 did not reduce cost growth on 197 defense programs. The average cost growth on these programs was 20 percent and did not change significantly for 30 years. Using data from the Defense Acquisition Executive Summary data base, we show a similar result. Initiatives based on the recommendations of the Packard Commission did not reduce the average cost overrun percent experienced on 269 completed defense acquisition contracts evaluated over an 8-year period (1988 through 1995). In fact, the cost performance experienced on development …

An Exploratory Study Of The Use Of Parametric Estimating In Department Of Defense Contracting, Patricia Blakely, Rudolph Haynesworth

Theses and Dissertations

An initiative to expand the use of parametric estimating in government contracting has enjoyed only marginal success. Some reasons for the slower pace of implementation are the lack of availability of historical data, training, acquisition rules, utility, and accuracy concerns. Those associated with the Parametric Cost Estimating Initiative (PCEI) have a higher perception of parametric utility and accuracy than those not associated with the initiative. The PCEI advocates using parametric techniques in any situation, not just the concept/development phases advocated by most literature. Parametric estimating is a catch all term for several different types of statistically based methodologies, ranging from …

Derivatives, Corporate Hedging, And Shareholder Wealth: Modigliani-Miller Forty Years Later, Kimberly D. Krawiec

Faculty Scholarship

No abstract provided.

Some Empirical Evidence On The Non-Normality Of Cost Variances On Defense Contracts, Robert J. Conley Iv

Theses and Dissertations

This study tested the hypothesis that defense cost variances reported on the Cost Performance Report are normally distributed. The DOD requires that all defense cost variances which breech a pre-specified threshold be investigated. The present variance investigation model has been criticized because it can prompt frivolous investigations. In theory, statistical models could reduce the number of frivolous investigations, but they are not used because they require too much information about the cost variance, including its distributional form. Often such models assume a normal distribution, but researchers have shown that the models do not work properly if the assumption is fallacious. …

Effect Of Regulation On Banking: California 1879-1929, Lynne Doti, Richard Runyon

Economics Faculty Articles and Research

California had a virtually unregulated banking environment until the first comprehensive banking regulations were passed in 1905. These regulations, and subsequent changes in 1909, required reserves and paid-up capital. Several tests of commonly accepted measures of safety, such as bank reserves, paid-up capital, bank failures, and real estate loans that resulted in foreclosure, are compared for selected years before and after the regulations. Results do not clearly demonstrate that regulation enhanced the safety of individual banks, but do support the conclusion that regulation enhanced the safety of the banking system as a whole.

Municipal Securities Market: Same Problems -- No Solutions, Ann Judith Gellis

Articles by Maurer Faculty

This article examines the existing regulations of the municipal securities market, focusing on what activities prompted the regulatory changes and analyzing the direction and efficacy of these regulations in terms of the deficiencies in the market. Part One gives a background sketch of the market and its participants from the time of the New York City fiscal crises to today. Part Two discusses whether the existing regulation is sufficient to produce disclosure, focusing on the Orange County crises. Part Three offers a critique of the current regulatory scheme and makes some suggestions for reform.

Encouraging Relational Investment And Controlling Portfolio Investment In Developing Countries In The Aftermath Of The Mexican Financial Crisis, Randall S. Thomas, Enrique Carrasco

Vanderbilt Law School Faculty Publications

Global financial markets trade about $1 trillion of securities each day. Investors in these markets seek the highest returns by shiffing huge amounts of capital from nation to nation, "playing global monopoly... and deciding which governments deserve to 'Pass Go' and collect $200 billion dollars and which should go directly to jail and be starved of the capital to raise living standards." International competition for capital gives global investors tremendous leverage over developing nations' economic policies.

Investors will shift capital into developing countries that adopt macroeconomic policies to ensure stable, high rates of effective return. However, if returns drop, or …

Cost Overrun Optimism: Fact Or Fiction, David D. Christensen

Faculty Publications

Program managers are advocates by necessity, When taken to the extreme, program advocacy can result in the suppression of adverse information about the status of a program gram. Such was the case in the Navy's A-12 Program. In A-12 Administrative inquiry, Beach (1990) speculates that such abiding cultural problems were not unique to the Navy. To test that assertion, this paper examines cost overrun data on 64 completed acquisition contracts extracted from the Defense Acquisition Executive Summary database. Cost overruns at various contract completion points are compared with projected final cost overruns estimated by contractor and government personnel. 17 comparison …

Development Of Standardized S Curves For The Evaluation Of Major Department Of Defense Purchases, Richard E. Knepp, Michael E. Stroble

Theses and Dissertations

The increasing cost of Department of Defense acquisitions combined with the shrinking Defense budget puts a premium on continuing the funding of only those programs that are practical and affordable. This emphasizes a need for good methods of monitoring the progress of programs. Current methods of controlling and evaluating cost performance are limited. It is our belief that the generation of S-curves using current Cost and Schedule Control Systems Criteria (C/SCSC) data will provide a mathematical and/or graphical approach to assist in the control of program costs. This thesis attempted to plot the percentage of time for a contract's completion …

The Davis-Bacon Act: Cost Impact On The Air Force, Raymond Carpenter

Theses and Dissertations

This study was performed to determine what cost impact, if any, the Davis-Bacon Act has on the cost of Air Force construction contracts. The Davis- Bacon Act is a federal labor statute requiring the payment of pre-established wages to workers employed under Federally funded construction projects. The research found that contract award prices could be approximately 22% lower if the payment of these wages were not required. This estimate was made based on the results of a survey of bidders competing for award of construction contracts issued by bases within the former Strategic Air Command. Additional findings and survey response …

An Analysis Of Contract Cost Overruns And Their Impacts, Brian D. Wilson

Theses and Dissertations

This study examines the tendency of major program DoD contracts, once in an overrun status, to remain in that status and in many cases, further deteriorate. In these times of budgetary constraints, it is important that government program managers and other key decision makers understand the ramifications of contract overruns especially early in a program's life. The overruns on the A-12 program, for instance, could have possibly been predicted much earlier and the program cancellation avoided if only the program manager had understood the implications of significant cost overruns early in the life of the program.

Estimate-At-Completion Research - A Review And Evaluation, John W. Mckinney

Theses and Dissertations

This research derives from the Performance Measurement discipline and consists of a comprehensive analysis of Estimate-At-Completion (EAC) studies published since 1973. The EAC studies consisted of models, comparison studies, and computer analysis programs. Each study was categorized by formula type and described in terms of methodology and conclusions. Each study was evaluated based on clarity, documentation, methodology, and source. After reviewing the studies some areas were found to be weak. The AFSC formula that uses weighted percentages of .2 SPI and .8 CPI, is not supported by a critical review of the literature. In the area of comparisons studies, different …

Establishment Of A Registry To Record Charges Against Fishing Licences When Used As Security For Loans., P. Rogers

Fisheries Management Papers

This report outlines the Committee's final advice to the Minister for Fisheries on the need for a public commercial fishing licence register which has a mechanism for the recording of financial security interest in fishing licences. The Committee was greatly assisted by legislation introduced within the Victorian State Parliament during 1989, which by amendment to the Fisheries Act, provides for the registration of prescribed financial interests in fishing licences (See Appendix 1).

The Future For Recreational Fishing Forum Proceedings Saturday, 20 October 1990., Recreational Fishing Advisory Committee

Fisheries Management Papers

Australia's first recreational fishing forum was held at the West Australian Cricket Association Ground, in Perth WA on Saturday, 20 October 1990. It was clearly recognised by government, fishers and fisheries managers alike that the 1990's was the decade of decision for recreational fishing in WA. At the end of the day, the 12 speakers had covered an impressive range of topics, from the principles of resource sharing to community education and the question of funding the management of recreational fishing.

Te'o I. J. Fairbairn's Review Of Michael T. Skully's Financial Institutions And Markets In The South Pacific, Te'o I. J. Fairbairn

Pacific Studies

No abstract provided.

Corporate Audit Committees And Director’S Liability, Thomas M. Bentler

LLM Theses and Essays

This thesis covers the creation and function of audit committees and its increasing utilization by companies that consequently increase their dependence on outside directors and the subsequent liability of non-committee board members. The first part of this article gives a general overview of the audit committee with a focus on the scope of its duties, its composition, its way of working, and the possible benefits and hazards for the corporation resulting from the establishment of such a committee. The second part will examine the impact of an audit committee on director’s liability under the federal securities law and state corporation …