nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒05‒04
ten papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. What is Project Finance? By João Pinto
  2. Development of a participatory action research approach for four agricultural carbon projects in east Africa: By Shames, Seth; Bernier, Quinn; Masiga, Moses
  3. On the R&D giants' shoulders: Do FDI help to stand on them? By Antonio Vezzani; Sandro Montresor
  4. The gendered impacts of agricultural asset transfer projects: Lessons from the Manica Smallholder Dairy Development Program: By Johnson, Nancy; Njuki, Jemimah; Waithanji, Elizabeth; Nhambeto, Marinho; Rogers, Martha; Kruger, Elizabeth Hutchinson
  5. Transformation and Perception: How an Information System Project Can Be Carried out Successfully By Dorota Leszczynska; Laurence Saglietto
  6. The first phase of transformation of an information system project: an essential element of success ? By Dorota LESZCZYNSKA; Laurence SAGLIETTO
  7. Compétences de la main-d’oeuvre locale en Algérie et management de projets nationaux : Le cas de l’autoroute Est- Ouest By Dominique BONET FERNANDEZ; Joëlle MORANA; Fouzia BRAHIMI; Frédéric TEULON
  8. Aggregate Return on Investment for Investments under Uncertainty By Carlo Alberto Magni
  9. What is the Real Role of Corporate Venture Capital ? By Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
  10. Crowdfunding In France: A New Revolution? By Aurélie SANNAJUST; Fabien ROUX; Anissa CHAIBI

  1. By: João Pinto (Faculdade de Economia e Gestão - Universidade Católica Portuguesa, Porto)
    Abstract: Project finance is the process of financing a specific economic unit that the sponsors create, in which creditors share much of the venture’s business risk and funding is obtained strictly for the project itself. Project finance, often used for capital-intensive facilities and utilities, is commonly used to segregate the credit risk of the project from that of its sponsors so that lenders, investors, and other parties will appraise the project strictly on its own merits. Project finance creates value by reducing the costs of funding, maintaining the sponsors financial flexibility, increasing the leverage ratios, avoiding contamination risk, reducing corporate taxes, improving risk management, and reducing the costs associated with market imperfections. Besides describing the economic motivations for using project finance, this paper provides details on project finance characteristics and players, presents the recent trends of project finance market, and provides some statistics of project finance (PF) lending activity in Western Europe between 2000 and 2011.
    Keywords: project finance, structured finance
    JEL: G24 G32
    Date: 2014–04
  2. By: Shames, Seth; Bernier, Quinn; Masiga, Moses
    Keywords: Climate change, Agricultural development, agricultural carbon projects, action research, capacity building,
    Date: 2013
  3. By: Antonio Vezzani (JRC-IPTS); Sandro Montresor (University of Bologna)
    Abstract: The paper investigates the extent to which outward FDI affect the MNC's capacity of entering (and remaining in) the club of top R&D world investors, benefiting from performance gains in both financial and economic markets. By merging the European Industrial Research and Innovation Scoreboard with the fDi Markets dataset, we find supporting evidence. Increasing the number of FDI projects helps firms overcome the discontinuities that, in the distribution of R&D expenditures, separate the largest R&D investors from those below them. The same is true for the number of FDI projects in R&D, which are also more important than greater FDI portfolios in becoming a top R&D spender. Furthermore, unlike FDI in general, more FDI in R&D guarantee firms to remain in this top club of firms as it increases their capacity of competing among the top R&D spenders. Results at the extensive margin (i.e. the number of FDI projects) are confirmed with respect to the scale of FDI projects (i.e. at the intensive margin). However, increasing their size is not enough to become one of the highest ranking R&D firms. Policy implications about the support to R&D internationalisation are drawn accordingly.
    Keywords: Foreign Direct Investments (FDI), Multinational Corporations (MNC), Research & Development (R&D)
    JEL: O32 F23 O33
    Date: 2014–01
  4. By: Johnson, Nancy; Njuki, Jemimah; Waithanji, Elizabeth; Nhambeto, Marinho; Rogers, Martha; Kruger, Elizabeth Hutchinson
    Abstract: This paper looks at the gendered impacts of a development project that provided improved dairy cattle and training as part of a broader effort to develop a smallholder-friendly, market-oriented dairy value chain in Manica province, Mozambique. The project targeted households, registered cows in the name of the household head, and, initially, trained registered cow owners in various aspects of dairy production and marketing. Subsequently training was expanded to two members per household to increase the capacity within households to care for cows, a change which resulted in a significant number of women being trained.
    Keywords: Gender, Women, assets, Dairy, Property rights, Livestock, Smallholders, mixed methods,
    Date: 2013
  5. By: Dorota Leszczynska; Laurence Saglietto
    Abstract: Perception is not taken into account at its true value by the research work on organisational transformation.The aim of this publication is to put forward an analysis of the critical first stage of organizational transformation (first phase). We think there is a link between the first stage of transformation, its perception by the actors, and the success of the implementation of the project. We therefore put forward a conceptual model, which we shall illustrate with two case- studies in information systems and a discussion.
    Keywords: Organizational Transformation (first phase), Organizational Perception, Success, Information System
    Date: 2014–04–29
  6. By: Dorota LESZCZYNSKA; Laurence SAGLIETTO
    Abstract: If perception is a concept which is necessarily intuitive in the analysis of transformations in information systems, it is not to be taken into account at its fair value in existing theoretical models. These models are mainly interested in the following triptych: Intelligence (formulation of the problem) - Design (design of alternatives) - Choice (choice of a solution) (Simon 1976). However, the development of systems adapted to each phase of the decision-making process, represents today a major challenge in information systems (Kivijärvi, 1997, Markus & Tanis, 2000. We will therefore focus on the first phase of a transformation: its perception. Very little mentioned in theoretical inputs, this phase is yet fundamentally linked to future organizational impacts of a project (Rowe and Besson, 2001: p.5).
    Date: 2014–04–29
  7. By: Dominique BONET FERNANDEZ; Joëlle MORANA; Fouzia BRAHIMI; Frédéric TEULON
    Abstract: This paper aims to examine the perception of skills of local workers in Algeria. Our exploratory research is based on a series of interviews with a panel in connection with the construction of the East-West highway. The results show that Algeria lacks of critical skills and keeps an outdated infrastructure in all vital sectors of the economy. It follows then a mass departure of executives and researchers in other countries and, in turn, calls for foreign expertise on major projects. In doing so, several solutions are recommended. Among these, knowledge management and definition of skills expected in each sector, to better identify this demand precisely and allow declining the missing profiles, skills to acquire and the necessary training and recruitment to perform.
    Keywords: Skills, Algeria, Labor, Foreign expertise
    Date: 2014–04–28
  8. By: Carlo Alberto Magni
    Abstract: This paper deals with with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI), obtained as the ratio of total (undiscounted) cash flow to total invested capital and show that it is a genuine rate of return which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. The AROI exists and is unique and, for two mutually exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two unequal-risk projects can be correctly compared. Iterating the incremental procedure, we show that the AROI approach correctly ranks any bundle of different-risk competing projects.
    Keywords: Return On Investment, ranking, uncertainty, net present value, rate
    JEL: G11 G12 G31
    Date: 2014–02–14
  9. By: Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
    Abstract: Technological innovation is not exclusive to great industrial groups. Sometimes, innovative and dynamic companies emerge in high-tech sectors and constitute a serious threat for some industry giants. However, the high reactivity of these small companies is generally impaired by problems of financing. Larger firms which want to achieve financial profits and control the most recent innovations often have recourse to corporate venture capital (CVC) as strategic mode of financing. The advantages it brings to every stage of the project (launch, refinancing and project output) compared to financing by venture capital funds will be key factors for future development. In order to gain a better understanding of the role of CVC in the financing of innovating firms, we propose in this article to analyze the various types of CVC on the basis of former studies as well as concrete examples, then to assess what boosts value creation for CVC projects.
    Keywords: Venture capital; CVC; Capital structure; Start-up; Entrepreneurship; Performance
    JEL: G24 G32
    Date: 2014–04–29
  10. By: Aurélie SANNAJUST; Fabien ROUX; Anissa CHAIBI
    Abstract: In the last few years, small firms have had difficulties to finance their projects via the traditional bank system. A new type of financing has recently appeared in Europe and in particular in France: the crowdfunding. It is a method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals via Internet. Our paper contributes to the literature by introducing this financial innovation and building a theoretical framework to explain its success. We also discuss some more practical issues to enhance crowdfunding in France.
    Keywords: financial innovation, crowdfunding, SMEs, France.
    JEL: G24 G34
    Date: 2014–04–22

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