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The Merger of Halliburton and Baker Hughes: A Risk Analysis
Evangelia Fragouli,
Kwaku Donkor
Issue:
Volume 2, Issue 2, May 2017
Pages:
45-56
Received:
12 September 2016
Accepted:
6 March 2017
Published:
21 March 2017
DOI:
10.11648/j.ijafrm.20170202.11
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Abstract: The aim of the present study is to explore the risks and benefits of mergers compared to those of strategic alliances and test the classic agency theory in relation to firm’s and shareholders interest. Using the case study methodology, the study examines the recent announced merger of Halliburton and Baker Hughes exploring the possible risks the merger itself may open up for the two firms, reviewing a possible alternative strategic alliance and the effects it may have. The paper applies a qualitative analysis based on empirical data of similar case studies projecting past experiences on future events. The study concludes that the merger was in the best interest of both companies, a merger though filled with the risk of specialisation within a shrinking market still poses the best rate of survival for firms in the gas and oil industry. The paper includes implications for strategic decision making and risk management policy in the oil & gas industry.
Abstract: The aim of the present study is to explore the risks and benefits of mergers compared to those of strategic alliances and test the classic agency theory in relation to firm’s and shareholders interest. Using the case study methodology, the study examines the recent announced merger of Halliburton and Baker Hughes exploring the possible risks the me...
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Income Tax of Foreign-Invested Business and Organization of Its Payment in DPRK
Pong-Nam Ri,
Hye-Gyong Sin
Issue:
Volume 2, Issue 2, May 2017
Pages:
57-61
Received:
19 August 2016
Accepted:
24 February 2017
Published:
8 May 2017
DOI:
10.11648/j.ijafrm.20170202.12
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Abstract: We have explained about income tax of foreign-invested businesses in DPRK, including types of enterprise incomes and others, the way of tax calculation and its payment, and exemption or reduction measures to them in DPRK. We set different kinds as incomes of a foreign-invested business, object of enterprise income tax, according different sectors. And more favorable tax rates and mode of its payment over other countries in DPRK are fixed in this paper.
Abstract: We have explained about income tax of foreign-invested businesses in DPRK, including types of enterprise incomes and others, the way of tax calculation and its payment, and exemption or reduction measures to them in DPRK. We set different kinds as incomes of a foreign-invested business, object of enterprise income tax, according different sectors. ...
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An Empirical Analysis Emphasizing on the Differences in Determinants of Capital Structure of Private Commercial and Private Islami Commercial Banks of Bangladesh
Rummanur Rahman,
Naheem Mahtab
Issue:
Volume 2, Issue 2, May 2017
Pages:
62-73
Received:
4 September 2016
Accepted:
17 March 2017
Published:
19 May 2017
DOI:
10.11648/j.ijafrm.20170202.13
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Abstract: The capital structure is the blend of obligation and value that an organization uses to fund its business (30). (61) recommended that, in a world without scrapping spot, there is no contrast amongst obligation and value financing with respect to the estimation of the organizations. Proof recommends this doesn't hold actually. Today, the capital structure is a standout amongst the most vital money related choices for any business. This choice is vital in light of the fact that the association needs to augment returns. The effect of the capital structure choice will help the firm define abilities to manage its aggressive surroundings. Besides, the capital structure of a firm is a blend of obligation and value that is utilized by a firm to upgrade its operation. In this manner, an association's particular system ought to manage the suitable blend of obligation and value to back the association's advantages.
Abstract: The capital structure is the blend of obligation and value that an organization uses to fund its business (30). (61) recommended that, in a world without scrapping spot, there is no contrast amongst obligation and value financing with respect to the estimation of the organizations. Proof recommends this doesn't hold actually. Today, the capital str...
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Content Analysis of Mission Statements - A Case of Pharmaceutical Sector Companies of Pakistan
Faizan Asad M. Pill,
Irfan Rana,
Bilal Shabbar,
Ahsan Ali
Issue:
Volume 2, Issue 2, May 2017
Pages:
74-79
Received:
8 March 2017
Accepted:
21 April 2017
Published:
19 May 2017
DOI:
10.11648/j.ijafrm.20170202.14
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Abstract: The objective of this study was to investigate the quality of mission statements of the pharmaceutical sector companies listed in Pakistan stock exchange. In order to achieve this purpose, mission statements have been analyzed using a Nine Point Scale model given by the Fred R. David. Moreover, number of words and sentences used in the statements were also counted. As per published information of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are listed within this sector. In this study all listed companies were selected to make analysis. Data needed to make comparative analysis of mission statement were collected from websites of these companies. The findings show that most of the pharmaceutical sector companies of Pakistan are making the average level of score and extreme to incorporate their concerns for customer, product, survival, philosophy and self-concept in their mission statements. But they are giving less focus to technology, market, public image and employees. The length of a mission statements are (Min. = 33 and Max. = 120) in words.
Abstract: The objective of this study was to investigate the quality of mission statements of the pharmaceutical sector companies listed in Pakistan stock exchange. In order to achieve this purpose, mission statements have been analyzed using a Nine Point Scale model given by the Fred R. David. Moreover, number of words and sentences used in the statements w...
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Revenue Forecasting Approach Towards Public Sector Wage Bill Management Dilemma in Kenya
Mogere Henry Nyakundi,
Justo Masinde Simiyu,
Nebat Mugenda Galo
Issue:
Volume 2, Issue 2, May 2017
Pages:
80-83
Received:
9 March 2017
Accepted:
21 April 2017
Published:
30 May 2017
DOI:
10.11648/j.ijafrm.20170202.15
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Abstract: The Kenyan government has been working towards achieving fiscal sustainability in wage bill expenditure since independence. Fiscal sustainability is key to achieving economic growth and progress as most resources would be channeled to development expenditure. The international recognized level of wage bill to revenue ratio is between 30%-40%. However, this key ratio is not being achieved in Kenya as the Salaries and Remuneration Commission and Parliamentary Budget Office of Kenya reports indicates that in the fiscal year 2012/13, it was 47%. The reports further indicate that the ratio has been within the range 47%-49% since the fiscal year 2009/2010 to 2012/13. Notable is that revenue forecasts essentially exist to help in budget formulation. Why then would the public wage bill management be a huge task to the government since independence? This study sought to establish whether revenue forecast has an effect on wage bill management in Kenya. Causal research design was used to establish the cause and effect relationship between the independent and dependent variable. Purposive sampling was employed in choosing 13 fiscal year budget data from the fiscal year 2000/01 to 2012/13.Simple linear regression model was employed in establishing the degree and magnitude of the relationship between the variables. A t-test and F-ratio were applied to test hypothesis and overall significance of the regression model at 5% significance level. Findings of this study indicates that revenue forecast within the 13 fiscal year period under study has significant effect on wage bill management in the context of wage bill to revenue ratio. This is an implication that revenue forecasts can help in managing the wage bill.
Abstract: The Kenyan government has been working towards achieving fiscal sustainability in wage bill expenditure since independence. Fiscal sustainability is key to achieving economic growth and progress as most resources would be channeled to development expenditure. The international recognized level of wage bill to revenue ratio is between 30%-40%. Howev...
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Constraints in Accessing Credit for SMEs to Acquire Capital from Microfinacial Institution’s -Tanzania
Ali Othman Abbas,
Ji Wei Li
Issue:
Volume 2, Issue 2, May 2017
Pages:
84-91
Received:
31 March 2017
Accepted:
25 April 2017
Published:
30 May 2017
DOI:
10.11648/j.ijafrm.20170202.16
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Abstract: The objective of this study was to illustrate, the constraints in accessing credit for SMEs to acquire capital from micro financial institutions as regards business capacity, default risk premium, and liquidity risk premium. The plan, which was engaged in this study, was descriptive assessment. The aim of adopting this method was to gather comprehensive, systematic and in-depth information about the restriction of SMEs to access credit from MFIs. The sample size of the study was 100 SME’s known as (clients) and 50 MFI’s operated in Tanzania. Data were collected through a questionnaire and interview. SPSS software was used for data analysis. There was a strong negative correlation between default risk premium and liquidity risk premium and positive correlation between business capacity and loan repayment. The study recommended that in order to reduce the burden of interest amount to be paid by their clients, MFIs should be reduced interest rate to cover its costs and obtain normal profits, also should train their clients about business knowledge, the importance of keeping business records and techniques of valuing business capacity to enable their clients to measure their business capacity and know the appropriate amount of loan to be applied for their businesses.
Abstract: The objective of this study was to illustrate, the constraints in accessing credit for SMEs to acquire capital from micro financial institutions as regards business capacity, default risk premium, and liquidity risk premium. The plan, which was engaged in this study, was descriptive assessment. The aim of adopting this method was to gather comprehe...
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