			Home About us Contact

Capital Projects (capital + project)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	83%

Selected Abstracts

Determinants of Pay-as-You-Go Financing of Capital Projects: Evidence from the States

PUBLIC BUDGETING AND FINANCE, Issue 4 2007
WEN WANG
Although states have long practiced pay-as-you-go in financing their capital projects as a supplement to debt, academia has paid scarce attention to pay-go financing. This study fills in the niche by providing empirical evidence on what determines the use of pay-go in financing capital projects. It develops a model that considers the preferences of both voters and politicians when they make capital financing decisions in a given institutional setting. The empirical results suggest that the use of pay-go is affected by a state's income level, its economic conditions, the presence of a divided government, as well as its budgetary institutions. [source]

Synthesis of a Model for Life-Cycle Project Management

COMPUTER-AIDED CIVIL AND INFRASTRUCTURE ENGINEERING, Issue 1 2000
Ali Jaafari
The focus of this article is on life-cycle objective,based project management models in general. The model has been designed (1) to facilitate employment of life-cycle objective,based project management approaches and (2) to support concurrent engineering and construction, thus promoting greater integration of total processes under which projects are proposed and implemented. In order to synthesize the functions designed in the model, we undertook a detailed case study of a large capital project. This case study has been documented in separate articles; only the results of the study will be presented in this article. While this field research shed light on the actual needs and requirements, the design of the functions was approached from first principles. They incorporate the basic shift from the traditional objectives of cost, time, and quality to life-cycle objective functions, such as return on investment, facility operability, and life-cycle integration. This article describes the fundamental philosophy and framework for the development of life-cycle project management in general and contrasts this with the traditional project management models. [source]

Capital budgeting: Problems and new approaches

JOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 1 2007
James S. Sagner
Capital budgeting techniques using discounted cash flow calculate the present value of future flows, compared to the cash outflows or the investment required to fund a capital project. But companies are reluctant to commit funds to capital projects these days,probably because of disappointing past returns. The author explains current capital budgeting practices and reviews new approaches that may offer some solutions. He also offers a handy quick checklist for capital budgeting decisions. © 2007 Wiley Periodicals, Inc. [source]

Enterprise Risk Management: Theory and Practice

JOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2006
Brian W. Nocco
The Chief Risk Officer of Nationwide Insurance teams up with a distinguished academic to discuss the benefits and challenges associated with the design and implementation of an enterprise risk management program. The authors begin by arguing that a carefully designed ERM program,one in which all material corporate risks are viewed and managed within a single framework,can be a source of long-run competitive advantage and value through its effects at both a "macro" or company-wide level and a "micro" or business-unit level. At the macro level, ERM enables senior management to identify, measure, and limit to acceptable levels the net exposures faced by the firm. By managing such exposures mainly with the idea of cushioning downside outcomes and protecting the firm's credit rating, ERM helps maintain the firm's access to capital and other resources necessary to implement its strategy and business plan. At the micro level, ERM adds value by ensuring that all material risks are "owned," and risk-return tradeoffs carefully evaluated, by operating managers and employees throughout the firm. To this end, business unit managers at Nationwide are required to provide information about major risks associated with all new capital projects,information that can then used by senior management to evaluate the marginal impact of the projects on the firm's total risk. And to encourage operating managers to focus on the risk-return tradeoffs in their own businesses, Nationwide's periodic performance evaluations of its business units attempt to refl ect their contributions to total risk by assigning risk-adjusted levels of "imputed" capital on which project managers are expected to earn adequate returns. The second, and by far the larger, part of the article provides an extensive guide to the process and major challenges that arise when implementing ERM, along with an account of Nationwide's approach to dealing with them. Among other issues, the authors discuss how a company should assess its risk "appetite," measure how much risk it is bearing, and decide which risks to retain and which to transfer to others. Consistent with the principle of comparative advantage it uses to guide such decisions, Nationwide attempts to limit "non-core" exposures, such as interest rate and equity risk, thereby enlarging the firm's capacity to bear the "information-intensive, insurance- specific" risks at the core of its business and competencies. [source]