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Capital Expenditures (capital + expenditure)
Selected AbstractsFiscal Consolidation and Decentralisation: A Tale of Two Tiers,FISCAL STUDIES, Issue 2 2005Julia Darby Abstract This paper contributes to the established literature on fiscal consolidations by investigating the distinct behaviour of central and sub-central tiers of government during general government consolidation attempts. In the light of different degrees of decentralisation across OECD countries, and the different responsibilities devolved to sub-central tiers, we believe that this approach offers an illuminating insight into the analysis of fiscal consolidations and their success. We show that the involvement of the sub-central tiers of government is crucial to achieving cuts in expenditure, particularly in relation to the overall size of the government wage bill. In addition, central governments appear to exert a strong influence on the expenditure of sub-central tiers through their grant allocations, and control of these allocations appears to have a considerable impact upon the overall success of consolidation attempts. Finally, we demonstrate that there is a skewness in cuts towards sub-central capital expenditure both when central governments cut grant allocations and when sub-central governments engage in lone consolidation attempts. [source] Evaluating e-government: learning from the experiences of two UK local authoritiesINFORMATION SYSTEMS JOURNAL, Issue 1 2005Zahir Irani Abstract. Part of the remit of public sector management includes planning and reflecting on capital expenditure on new technology. With this in mind, the role that information systems play in supporting improvements in e-government service delivery to stakeholder groups continues to attract much attention. The authors of this paper seek to define the scope and role that information systems evaluation plays within the public sector. In particular, the authors assess whether public sector organizations might benefit from the use of established ex-ante evaluation techniques, when applied to analyse the impact of e-government information systems. Following a comprehensive review of the normative literature, an initial conceptual framework for public sector information systems evaluation is proposed, which is then empirically explored within two local government authorities. The conceptual framework is then revised by using the structured case approach, which is dependent on an iterative research cycle where triangulated data are elicited. This then supports the emergence of new concepts during each research cycle that leads to the view that information systems evaluation in the public sector is a process of experiential and subjective judgement, which is grounded in opinion and world views. This leads the authors to challenge the appropriateness of traditional modes of investment appraisal when applied in the public sector. The finalized framework embraces investment decisions, evaluation methods, culture and structure, as well as post hoc evaluation. It emphasizes the importance of situated, interpretive user assessments in evaluating e-government investments. [source] Changing Skill Intensity in Australian IndustryTHE AUSTRALIAN ECONOMIC REVIEW, Issue 1 2007Ross Kelly This article examines changes in industry skill scores for Australia for the period 1991 to 2001 using indices of cognitive skill for industry based on Census employment data. Changes in mean industry cognitive skill levels are analysed, as are the relative contributions of changes to the occupational structure within industry and changes to the industry structure of employment. The main findings are that the drivers of skill change differed substantially between the two Census periods. Prior to 1996 the majority of the change was due to shifts towards industries with a more highly skilled workforce. After 1996 changes in the economy-wide skill level were dominated by within-industry changes in occupational composition. This coincided with a sharp pickup in the rate of capital expenditure on information and communication technologies. The increasing use of part-time employment overall had a deskilling effect. [source] Robotic-assisted radical cystectomyTHE INTERNATIONAL JOURNAL OF MEDICAL ROBOTICS AND COMPUTER ASSISTED SURGERY, Issue 3 2008Mohammad Shamim Khan Abstract Objective To evaluate the emerging role of robotic-assisted radical cystectomy (RARC) in the management of bladder cancer. Methods Review of the published literature on robotic-assisted radical cystectomy, including data from our cystectomy series of 30 patients. Results Nearly 150 procedures have been performed worldwide. The benefits of robotic-assisted operations are similar to those of laparoscopically-performed procedures. RARC appears to be technically safe, oncologically and functionally equivalent to open (ORC) and laparoscopic radical cystectomy (LRC). However, RARC offers superior ergonomics and better vision. These benefits come at extra initial capital expenditure and subsequent higher maintenance costs. Conclusion With the rapid spread of robotics, it is likely that RARC will become the standard of care in units with access to the technology. Copyright © 2008 John Wiley & Sons, Ltd. [source] From Public To Private: Evidence From a Transitional Economy SettingAUSTRALIAN ACCOUNTING REVIEW, Issue 3 2009Tyrone M. Carlin The literature on public financial management reform has devoted comparatively little attention to the detail and effect of reform process implementation in developing economies. This study contributes to an understanding of this phenomenon by examining the impact of privatisation on a sample of previously state-owned enterprises in Vietnam. Using a detailed, financially focused methodology and drawing on data sourced from audited general purpose financial statements, our analysis suggests evidence of material variation in financial performance and position post-privatisation compared to the position observed immediately prior to privatisation. Specifically, our data suggest that after being privatised, firms generally exhibit reductions in profitability, some degree of improvement in working capital management, an increase in financial leverage accompanied by a higher degree of solvency risk and greater calls on cash resources for the purpose of funding capital expenditure. Our results assist with understanding the impact of privatisation as a reform technique in developing economies, and may help policymakers and managers better target areas of likely risk, during the process of transition from public to private ownership. [source] An analysis of capital expenses and performance trade-offs among IMS CSCF deployment optionsBELL LABS TECHNICAL JOURNAL, Issue 4 2008Anne Lee Service providers around the world are deploying or planning to deploy the IP Multimedia Subsystem (IMS) in their core networks. IMS allows the delivery of new multimedia applications that can enhance the user's experience and bring in new revenue for the operators. These operators are now faced with deciding how to best deploy the various IMS functional elements in their networks. In this paper, the authors provide a survey of the various options available to the operators and present an analysis of some of those deployment options. In particular, the paper addresses questions around the advantages and disadvantages of centralizing or distributing control functions such as the call session control function (CSCF) in terms of capital expenditure (CAPEX) costs and latency trade-offs. Without the proper deployment strategy, there can be major differences in the overall cost of the network and therefore it is important to perform such an analysis. Initial recommendations and general observations are given that can assist network planners and operators to more efficiently develop an IMS deployment strategy. Further analysis and study that includes operational expenditure (OPEX) costs should also be factored into the final decision. © 2008 Alcatel-Lucent. [source] Cost estimate for biosynfuel production via biosyncrude gasificationBIOFUELS, BIOPRODUCTS AND BIOREFINING, Issue 1 2009Edmund Henrich Abstract Production of synthetic fuels from lignocellulose like wood or straw involves complex technology. There-fore, a large BTL (biomass to liquid) plant for biosynfuel production is more economic than many small facilities. A reasonable BTL-plant capacity is ,1 Mt/a biosynfuel similar to the already existing commercial CTL and GTL (coal to liquid, gas to liquid) plants of SASOL and SHELL, corresponding to at least 10% of the capacity of a modern oil refinery. BTL-plant cost estimates are therefore based on reported experience with CTL and GTL plants. Direct supply of large BTL plants with low bulk density biomass by trucks is limited by high transport costs and intolerable local traffic density. Biomass densification by liquefaction in a fast pyrolysis process generates a compact bioslurry or biopaste, also denoted as biosyncrude as produced by the bioliq® process. The densified biosyncrude intermediate can now be cheaply transported from many local facilities in silo wagons by electric rail over long distances to a large and more economic central biosynfuel plant. In addition to the capital expenditure (capex) for the large and complex central biosynfuel plant, a comparable investment effort is required for the construction of several dozen regional pyrolysis plants with simpler technology. Investment costs estimated for fast pyrolysis plants reported in the literature have been complemented by own studies for plants with ca. 100 MWth biomass input. The breakdown of BTL synfuel manufacturing costs of ca. 1 , /kg in central EU shows that about half of the costs are caused by the biofeedstock, including transport. This helps to generate new income for farmers. The other half is caused by technical costs, which are about proportional to the total capital investment (TCI) for the pyrolysis and biosynfuel production plants. Labor is a minor contribution in the relatively large facilities. © 2009 Society of Chemical Industry and John Wiley & Sons, Ltd [source] Microreactor Technology: A Revolution for the Fine Chemical and Pharmaceutical Industries?CHEMICAL ENGINEERING & TECHNOLOGY (CET), Issue 3 2005D. M. Roberge Abstract 50,% of reactions in the fine chemical/pharmaceutical industry could benefit from a continuous process based mainly on microreactor technology. However, the frequent presence of a solid phase still hinders the widespread application of such a technology as a multi-purpose solution. For small scale and pilot productions, speed in process R&D, as well as the avoidance of scale-up issues, are the main drivers. On the other hand, for large scale productions, a gain in yield and safety are the main motivations for the use of micoreactor technology. The gain in yield must be significant in order to cope with the increase in capital expenditure associated with the development of a new technology. [source] Public capital formation and labor productivity growth in ChileCONTEMPORARY ECONOMIC POLICY, Issue 2 2000MD. Ramirez Following the lead of the endogenous growth literature, this article analyzes the impact on labor productivity growth of public and private investment spending in Chile. Using cointegration analysis, the results of the dynamic labor productivity function for the 1960,95 period show that (lagged) public and private investment spending, as well as the rate of growth in exports, has a positive and highly significant effect on the rate of labor productivity growth. The estimates also indicate that increases in government consumption spending have a negative effect on the rate of labor productivity growth, thus suggesting that the composition of government spending may also play an important role in determining the rate of labor productivity growth. The findings call into question the politically expedient policy in many Latin American countries of disproportionately reducing public capital expenditures to meet targeted reductions in the fiscal deficit as a proportion of GDP. [source] Stock Liquidity and Investment Opportunities: Evidence from Index AdditionsFINANCIAL MANAGEMENT, Issue 3 2006John R. Becker-Blease We examine the relation between stock liquidity and investment opportunities in a sample of firms experiencing an exogenous liquidity shock. We find a positive relation between changes in capital expenditures and changes in stock liquidity, indicating that stock liquidity influences corporate investment decisions. This relation is robust to alternative measures of growth opportunities, and is consistent with a liquidity premium in equity returns. That is, an increase in liquidity effectively expands the set of positive NPV projects because it reduces the cost of capital. The results suggest that liquidity-enhancing events benefit shareholders by increasing the pool of viable growth opportunities. [source] Rational Pricing of Internet Companies RevisitedFINANCIAL REVIEW, Issue 4 2001Eduardo S. Schwartz G12 Abstract In this article we expand and improve the Internet company valuation model of Schwartz and Moon (2000) in numerous ways. By using techniques from real options theory and modern capital budgeting, the earlier paper demonstrated that uncertainty about key variables plays a major role in the valuation of high growth Internet companies. Presently, we make the model more realistic by providing for stochastic costs and future financing, and also by including capital expenditures and depreciation in the analysis. Perhaps more importantly, we offer insights into the practical implementation the model. An important challenge to implementing the original model was estimating the various parameters of the model. Here, we improve the procedure by setting the speed of adjustment parameters equal to one another, by tying the implied half-life of the revenue growth process to analyst forecasts, and by inferring the risk-adjustment parameter from the observed beta of the company's stock price. We illustrate these extensions in a valuation of the company eBay. [source] Fiscal Policy, Business Cycles and Economic Stabilisation: Evidence from Industrialised and Developing Countries,FISCAL STUDIES, Issue 4 2007Young Lee This paper empirically investigates the responsiveness of fiscal policy to business cycles and the effectiveness of fiscal policy in reducing economic fluctuations. From regressions on the responsiveness of fiscal policy to business cycles, we find that the government's current expenditures and subsidies & transfers move counter-cyclically, whereas taxes and capital expenditures move pro-cyclically. Using economic fluctuations in neighbouring countries as an instrumental variable, we show that ordinary least squares (OLS) estimates understate the responsiveness of fiscal policy to economic fluctuations. We also find that fiscal policy responds asymmetrically over economic fluctuations. In investigating the effectiveness of fiscal policy in reducing economic fluctuations, we mitigate omitted variable bias by adding four important factors - military expenditures, oil production, economic fluctuations in neighbouring countries and fiscal policy responsiveness to business cycles. The results of effectiveness regressions are consistent with the responsiveness regressions, highlighting the importance of current expenditures, especially subsidies and transfers, in responding to business cycles and stabilising the economy. [source] EVIDENCE THAT GREATER DISCLOSURE LOWERS THE COST OF EQUITY CAPITALJOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2000Christine A. Botosan The effect of corporate disclosure on the cost of equity capital is a matter of considerable interest and importance to both corporations and the investment community. However, the relationship between disclosure level and cost of capital is not well established and has proved difficult for researchers to quantify. As described in this article, the author's 1997 study (published in The Accounting Review) was the first to measure and detect a direct relationship between disclosure and cost of capital. After examining the annual reports of 122 manufacturing companies, the author concluded that companies providing more extensive disclosure had a lower (forward-looking) cost of equity capital (measured using Value Line forecasts with an EBO valuation formula that derives from the dividend discount model). For companies with extensive analyst coverage, differences in disclosure do not appear to affect cost of capital. But for companies with small analyst followings, differences in disclosure do appear to matter. Among this group of companies, the firms judged to have the highest level of disclosure had a cost of equity capital that was nine-percentage points lower than otherwise similar firms with a minimal level of disclosure. Closer analysis of some of the specific disclosure practices also suggests that, for small firms with limited analyst coverage, there are benefits to providing more forward-looking information, such as forecasts of sales, profits, and capital expenditures, and enhanced disclosure of key non-financial statistics, such as order backlogs, market share, and growth in units sold. In closing, the article also discusses an interesting new study (by Lang and Lundholm) that suggests there is an important distinction between effective corporate disclosure and "hyping the stock." The findings of this study show that while higher levels of disclosures are associated with higher stock prices, sudden increases in the frequency of disclosure are viewed with skepticism. [source] A Guide to Measuring College CostsNEW DIRECTIONS FOR INSTITUTIONAL RESEARCH, Issue 106 2000Gordon C. Winston Accurate measurement of college costs must consider new ways of looking at the factors that contribute to that cost, especially in the areas of financial aid and capital expenditures. [source] The Flypaper Effect: Evidence from IndiaPUBLIC BUDGETING AND FINANCE, Issue 3 2002Mala Lalvani The flypaper effect refers to the phenomenon whereby expenditure stimulus from unconditional grants exceeds that from an equivalent increase in income. The flypaper effect has been described as "money sticks where it hits." The present study empirically tests the flypaper effect for the Indian economy. The study also tests the asymmetry hypothesis that looks at the impact of retrenchment in grants. Results obtained in the present study show the flypaper effect to be vindicated. We find that both capital and revenue expenditures receive a greater stimulus from grants than would an increase in income. Results show that in the prereform period both revenue and capital expenditures are maintained during periods of grant cuts. However, in the postreform period it is only expenditures on revenue accounts that are maintained in periods of grant reduction. We also find that during periods of grant reduction, state governments maintain their expenditure programs by raising their own tax revenue. This suggests that grants from the center have had a disincentive effect and could be a reason that state governments have not exploited their tax potential to the fullest. By bringing to the fore the disincentive effect of grants we wish to emphasize the urgency of taking a closer look at restructuring and redesigning our system of intergovernmental transfers. [source] Is It Inefficient Investment that Causes the Diversification Discount?THE JOURNAL OF FINANCE, Issue 5 2001Toni M. Whited Diversified conglomerates are valued less than matched portfolios of pure-play firms. Recent studies find that this diversification discount results from conglomerates' inefficient allocation of capital expenditures across divisions. Much of this work uses Tobin's q as a proxy for investment opportunities, therefore hypothesizing that q is a good proxy. This paper treats measurement error in q. Using a measurement-error consistent estimator on the sorts regressions in the literature, I find no evidence of inefficient allocation of investment. The results in the literature appear to be artifacts of measurement error and of the correlation between investment opportunities and liquidity. [source] Privatization in Canada: Operating and Stock Price Performance with International ComparisonsCANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 2 2002Anthony E. Boardman This paper analyzes the operating and stock price performance of the major Canadian share-issue privatizations, including Air Canada, Canadian National Railway, Petro-Canada, and six provincial privatizations. First, using time-series accounting data, we examine changes in operating and financial performance before and after privatization. Second, we compare the Canadian performance experience to privatizations in other countries. Third, we examine the long-run effect of privatization on shareholder returns. The evidence indicates that privatization significantly improved the operating and financial performance of Canadian companies. Net income, profitability, efficiency, and dividend payments were significantly higher following privatization than before privatization. Employment and debt were significantly lower following privatization. Relative to privatizations in other industrialized countries, Canadian corporations did not grow as fast and had more layoffs. However, they experienced greater increases in profit and profitability, and larger reductions in debt. The increases in productivity, capital expenditures, and dividend payments were similar to firms in other countries. In the five years following privatization, shareholders of Canadian companies enjoyed significant, positive, market-adjusted buy-and-hold returns. This suggests that the operating performance improvements were larger than was expected at the time of privatization. Résumé Cette étude analyse les performances économiques et financières des sociétés d'État canadiennes qui ont été privatisées. En utilisant des données temporelles avant et après la privatisation, nous analysons trois entreprises privatisées par le gouvernement fédéral canadien (Air Canada, Pétro-Canada, et le Canadien National) ainsi que six autres entreprises privatisées par les gouvernements provinciaux. Nous comparons l'expérience canadienne aux autres privatisations majeures qui ont eu lieu à travers le monde. Finalement, nous étudions les rendements que ces entreprises ont procurés à leurs actionnaires. Les résultats tendent à démontrer qu'au Canada, la privatisation a eu un effet positif sur la performance. La rentabilité, la productivité, et les paiements de dividendes des entreprises canadiennes privatisées ont augmenté significativement suite à la privatisation. Le nombre d'employés et les niveaux d'endettement ont diminué de façon marquée. Comparativement aux privatisations mondiales, les privatisations canadiennes n'ont pas obtenu une croissance aussi grande et ont procédé à plus de mises à pied. Toutefois, on note une plus grande amélioration de la rentabilité et une plus grande réduction de l'endettement. Durant les cinq années qui ont suivi la privatisation, les actionnaires d'entreprises canadiennes privatisées ont bénéficié de rendements boursiers supérieurs à ceux procurés par l'ensemble du marché canadien de même que supérieurs à ceux procurés par les entreprises privatisées à travers le monde. Ce résultat tend à démontrer que l'amélioration de la performance des entreprises canadiennes privatisées a dépassé les attentes des investisseurs. [source] | ||||||||||||||||||||||||||||