Contract Expiration Research Articles

The Expiration of the Financial Lease Contract: A Comparative Study between Jordanian Legislation and Egyptian Legislation

Leasing activity has proved its importance as a competitive tool of financing, especially with the growing awareness of a lot of legislations of the benefits provided by leasing as a source of funding, as well as the increasing size of projects and their need for more flexible funding sources that are more liable to respond to the requirements of profitability required by these projects. Since the financial leasing contract is in progressive development just like any other aspect of the economy through which it grows, I preferred that the subject of this research shall be on the expiration of the financial leasing contact in the Jordanian Legislation compared with the Egyptian Legislation. It is clear that a financial lease contract is similar to any other contract in terms that ends on appointed date. However, and because of the particular nature of the financial leasing contract, It differs from what is provided in the General Provisions regarding the expiration of the leasing contract since it is distinguished by the fact that it gives the lessee at the end of the term three choices: The lessee buys the leased assets, or extends the leasing contract or returns the leased asset. A common reason for ending the financial leasing contract is the termination of the contract by revoking it. If any party breaches the obligations rendered on them, the second party may terminate the contract and will be free from any obligations since the financial leasing contract is a binding contract for both parties.

Perlakuan Akuntansi Akad Musyarakah Mutanaqisah (Studi Kasus : KPR iB Pada Bank Muamalat Cabang Darmo Surabaya)

Islamic bank is one of the services industry who offer products according to Shariah requirements. To meet the challenges and muamalah phenomena that exist in current business. Regulators, academics, practitioners, and Sharia Board are required to innovate the products that will be offered to customers. One such innovation is the emergence of hybrid contracts (multi-contract), where in the contract occurred several contract transacted. Application of the hybrid contract with the Bank Muamalah Indonesia is that using the KPR iB financing musharaka mutanaqisah contract (MMQ).Of these phenomena, this research intend to see out of the side of accounting applied in transactions using MMQ contract. This study aims to determine the accounting treatment on Musharaka mutanaqisah contract by Bank Muamalat Indonesia on KPR iB products and verify compliance whether the accounting treatment in accordance with PSAK No. 106 and DSN No. 73.The results of this research make findings that the accounting treatment was carried out by BMI for start-up capital is recognized as a capital MMQ cash. This is because the factors of positive law in force in Indonesia that have an impact on the next accounting treatment, installments process and when the end of the contract. In addition, the realization of the contract is not in harmony with the accounting treatment, so the accounting treatment can not describe what is going on in the contract because it can be obstruction by the positive law applicable. But overall accounting treatment has been carried out by BMI in accordance with PSAK No. 106 and DSN No. 73 on the MMQ installments process and when the contract expires.

The Role of Contract Expirations in Service Parts Management

The majority of after‐sales service providers manage their service parts inventory by focusing on the availability of service parts. This approach, combined with automatic replenishment systems, leads to reactive inventory control policies where base stock levels are adjusted only after a service contract expires. Consequently, service providers often face excess stock of critical service parts that are difficult to dispose due to their specificity. In this study, we address this problem by developing inventory control policies taking into account contract expirations. Our key idea is to reduce the base stock level of the one‐for‐one policy before obsolescence (a full or partial drop in demand rate) occurs and let demand take away excess stock. We refer to this policy as the single‐adjustment policy. We benchmark the single‐adjustment policy with the multiple‐adjustment policy (allowing multiple base stock adjustments) formulated as a dynamic program and verify that for a wide range of instances the single‐adjustment policy is an effective heuristic for the multiple‐adjustment policy. We also compare the single‐adjustment policy with the world‐dependent base stock policy offered by Song and Zipkin (1993) and identify the parameter combinations where both policies yield similar costs. We consider two special cases of the single‐adjustment policy where the base stock level is kept fixed or the base stock adjustment is postponed to the contract expiration time. We find that the initial demand rate, contract expiration time, and size of the drop in demand rate are the three key parameters driving the choice between the single‐adjustment policy and its special cases.

Opportunistic Proposals by Union Shareholders

Corporate governance reformers hope that giving shareholders more voting rights will improve firm performance, but critics argue that some shareholders, such as labor unions and public pensions, will use their rights to advance private interests. This paper finds that labor unions use shareholder proposals opportunistically to influence contract negotiations. We show theoretically that shareholder proposals can be used as bargaining chips to extract side payments from management. Our empirical strategy is based on the observation that proposals have a higher than normal value for unions in contract expiration years, when a new contract must be negotiated. We find that during contract expiration years, unions increase their proposal rate by one-quarter (and by two-thirds during contentious negotiations); nonunion shareholders do not change their proposal rate in expiration years. Unions are much more likely than other shareholders to make proposals concerning executive compensation, especially during expiration years. Opportunistic union proposals are associated with better wage outcomes for union workers. Overall, the evidence suggests that sometimes having more rights can be costly for shareholders.

Pricing TARNs Using a Finite Difference Method

Target accumulation redemption notes (TARNs) are a popular product with Asian foreign exchange investors. They have a number of variations, but their main feature is that option-like payoffs occur on a set of future dates, depending on whether the underlying exchange rate is above or below a specified strike level. The total payout is capped and the contract expires when the cap is reached. The standard valuation technique for this path-dependent payoff is Monte Carlo simulation. In this article, Luo and Shevchenko develop an efficient finite-difference approximation that accommodates path dependence and even non-diffusive jumps in the exchange rate. In a comparison simulation against Monte Carlo, the new technique achieves much better accuracy in less execution time.

IMPLEMENTASI METODE MARKOV CHAIN MONTE CARLO DALAM PENENTUAN HARGA KONTRAK BERJANGKA KOMODITAS

The aim of the research is to implement Markov Chain Monte Carlo (MCMC) simulation method to price the futures contract of cocoa commodities. The result shows that MCMC is more flexible than Standard Monte Carlo (SMC) simulation method because MCMC method uses hit-and-run sampler algorithm to generate proposal movements that are subsequently accepted or rejected with a probability that depends on the distribution of the target that we want to be achieved. This research shows that MCMC method is suitable to be used to simulate the model of cocoa commodity price movement. The result of this research is a simulation of future contract prices for the next three months and future contract prices that must be paid at the time the contract expires. Pricing future contract by using MCMC method will produce the cheaper contract price if it compares to Standard Monte Carlo simulation.

The impact of equity index futures trading on the underlying index volatility: evidence for the ISE-30 stock index futures contracts

The issue that futures-trading activity may result in excessive equity volatility has attracted much attention, both academic and regulatory. Many academicians have claimed that the introduction of the futures contracts will lead to an increase in the spot market volatility and destabilize the equity prices. This has also been an important concern for regulators. Many others have argued the contrary and claimed that futures trading will have stabilizing effects on spot prices. There is no theoretical answer that will resolve this debate; proper empirical investigation will give insights on this effect. Many previous empirical studies deal with the developed markets, especially with the US. The number of studies employing emerging market data is quite limited and there are only a handful of studies dealing with the Turkish market. In this study we examine the effect of futures trading on index volatility using the data from an important emerging market: Turkey. Using the Istanbul Stock Exchange 30 (ISE 30) Index data between February 2005 and April 2015, we test the hypothesis that the variance of daily returns in the futures expiration period (9 days before the expiration of the futures contract) is greater than the variance of index returns in the pre-expiration period (10-50 days prior to futures expiration date). The results of the study show that expiration period variance is not greater than pre-expiration variance.

Decentralized matching: The role of commitment

The two-sided matching literature has focused on static and centralized games. However, in many markets, the matching is determined in decentralized fashion and continues to change. This paper considers infinitely-repeated matching games, where firms whose positions become vacant make offers to workers, who then decide which offers to accept and the game continues. We study how the stationary-equilibrium outcome depends on whether players commit to their employment relationships. We show that, without commitment from either side of the market (i.e., each contract expires in a period), the equilibrium matching is stable in all periods. With one-sided commitment (where firms offer tenured jobs) or two-sided commitment, the final matching may be unstable. With one-sided commitment, the final matching may be one where all workers are worse off and all firms are better off than in every stable matching, implying that the workers are made worse off by job protection.

Enrollment, Expenditures, and Utilization After CHIP Expansion: Evidence From Alabama

ObjectiveIn October 2009, Alabama expanded eligibility in its Children's Health Insurance Program (CHIP), known as ALL Kids, from 200% to 300% of the federal poverty level (FPL). We examined the expenditures, utilization, and enrollment behavior of expansion enrollees relative to traditional enrollees (100–200% FPL) and assessed the impact of expansion on total program expenditures. MethodsWe compared unadjusted mean person-month-level expenditures and utilization of expansion enrollees and various categories of existing enrollees and used a 2-part modeling strategy to examine differences after controlling for enrollee characteristics. We used probit models to examine adjusted differences in reenrollment behavior by eligibility category. ResultsExpansion enrollees had higher total monthly expenditures ($10.33, P < .05) than traditional ALL Kids enrollees, including higher outpatient ($5.35, P < .001) and dental ($0.85, P < .01) expenditures but lower emergency department (−$1.34, P < .001) expenditures. Expansion enrollees had marginally lower utilization of emergency department services for low-severity conditions and higher utilization of physician outpatient visits. Expansion enrollees were 4.47 percentage points (P < .001) more likely to reenroll before their contract expiration date than traditional ALL Kids enrollees. As of October 2012, expansion enrollees accounted for approximately 20% of ALL Kids enrollment and expenditures. ConclusionsThe expansion population was characterized by moderately higher health expenditures and utilization, and more persistent enrollment relative to fee group enrollees who are subject to the same levels of cost sharing and annual premiums. Although states are prohibited from changing program eligibility until 2019, the costs associated with the expansion population will be important to future policy decisions.

A Contracting Theory for Predicting and Managing Cost Behavior

The traditional concept of variable and fixed cost behavior is not accepted by all authorities in cost and management accounting (e.g., Anderson, Banker, and Janakiraman 2003; Kaplan and Witkowski 2014). This paper proposes a nexus of cost contracts theory in which costs are fixed and variable with respect to individual contracts for inputs, and contracts expire at different times within a single planning period. Resulting total cost functions may or may not appear to have variable and fixed costs, or to be symmetric. The theory provides interesting insights regarding the relationship between budgeting and outsourcing, the importance of negotiating skill to managing costs, the role of predicting contract parameter usage, risks and opportunities related to cost contract expirations, cost information system requirements, cost allocation, and asymmetric cost behavior.

An agent-based model for energy service companies

The residential housing sector is a major consumer of energy accounting for approximately one third of carbon emissions in the United Kingdom. Achieving a sustainable, low-carbon infrastructure necessitates a reduced and more efficient use of domestic energy supplies. Energy service companies offer an alternative to traditional providers, which supply a single utility product to satisfy the unconstrained demand of end users, and have been identified as a potentially important actor in sustainable future economies. An agent-based model is developed to examine the potential of energy service companies to contribute to the large scale upgrading of household energy efficiency, which would ultimately lead to a more sustainable and secure energy infrastructure. The migration of households towards energy service companies is described by an attractiveness array, through which potential customers can evaluate the future benefits, in terms of household energy costs, of changing provider. It is shown that self-financing is a limiting factor to the widespread upgrading of residential energy efficiency. Greater reductions in household energy costs could be achieved by committing to longer term contracts, allowing upgrade costs to be distributed over greater time intervals. A steadily increasing cost of future energy usage lends an element of stability to the market, with energy service companies displaying the ability to retain customers on contract expiration. The model highlights how a greater focus on the provision of energy services, as opposed to consumable products, presents a viable approach to reducing future energy costs and usage.

Time-Bound Anonymous Authentication for Roaming Networks

We propose an anonymous authentication protocol that supports time-bound credentials for an efficient revocation. It is especially suitable for large-scale network in roaming scenario. With our newly designed group signature scheme as a building block, a timestamp can be embedded to user secret key. No expired key can be used to authenticate, and hence naturally revoked users (e.g., due to contract expiration) are not required to be put into the revocation list. This makes our protocol much faster than previous roaming protocols in terms of revocation checking, which is a main part in verification.

Happiness of economists

We study the importance of economists’ professional situation towards their life satisfaction based on a unique survey of mostly academic economists. On average, economists report to be highly happy with life. Satisfaction is positively related to spending more time on doing research. The lack of a tenured position decreases satisfaction. However, the extent to which the uncertainty created by the tenure system affects satisfaction varies with the contract terms. The effect is stronger if the contract expires in the near future or cannot be extended. Publication success has no effect if it is controlled for academic rank and the contract duration. The finding suggests that publications are rather a means to an end, for example, to acquire a tenured position. While the perceived level of external pressure also has no impact, the perceived change of pressure in recent years is positively related to economists’ life satisfaction. An explanation is that economists have accepted a high level of pressure when entering academia but are not willing to cope with the recent increase.

End‐of‐Life Inventory Problem with Phaseout Returns

We consider the service parts end‐of‐life inventory problem of a capital goods manufacturer in the final phase of its life cycle. The final phase starts as soon as the production of parts terminates and continues until the last service contract expires. Final order quantities are considered a popular tactic to sustain service fulfillment obligations and to mitigate the effect of obsolescence. In addition to the final order quantity, other sources to obtain serviceable parts are repairing returned defective items and retrieving parts from phaseout returns. Phaseout returns happen when a customer replaces an old system platform with a next‐generation one and returns the old product to the original equipment manufacturer (OEM). These returns can well serve the demand for service parts of other customers still using the old generation of the product. In this study, we study the decision‐making complications as well as cost‐saving opportunities stemming from phaseout occurrence. We use a finite‐horizon Markov decision process to characterize the structure of the optimal inventory control policy. We show that the optimal policy consists of a time‐varying threshold level for item repair. Furthermore, we study the value of phaseout information by extending the results to cases with an uncertain phaseout quantity or an uncertain schedule. Numerical analysis sheds light on the advantages of the optimal policy compared to some heuristic policies.

Explaining the contract terms of energy performance contracting in China: The importance of effective financing

Energy service company (“ESCO”) uses Energy Performance Contracting (“EPC”) to provide energy-saving services to its clients. Under an EPC, both ESCO and the client invest in the energy efficiency measures, according to a negotiated share of investment. Within the length of the contract, the ESCO and its client divide up the saved energy bill according to a negotiated share. Once the contract expires, the client claims all of the saved energy bills if the energy efficiency measures still last. Different EPC projects have different contract terms, including total investment, share of investment and length of contract. These contract terms directly determine the resulted energy savings. Thus it is essential and important to look at how these contract terms are formed and what are the major influencing factors. This paper first builds a theoretical bargain model between ESCO and its client to find out the structural relationship among these contract terms. Then, using the information of about 140 EPC contracts in China in 2010 and 2011, the paper empirically estimates the impacts of various factors on the contract terms and the resulted energy savings. We find that cost of capitals for ESCOs and the clients, especially for ESCOs, is a major factor influencing contract terms and the resulted energy savings. Thus providing effective financing is critical for the development of EPC in China.

An intervention analysis on the Tokyo Grain Exchange non-genetically modified and conventional soybean futures markets

AbstractThis paper examines how efficiently the price premium for non-genetically modified (non-GM) soybeans at the Tokyo Grain Exchange (TGE) reacts to an announcement to change the contract unit, suppliers, and expiration date on the conventional soybean futures contract. An intervention analysis is used for this purpose. The results reveal that the price premium for non-GM soybeans increases after the change and this effect did not disappear immediately. This implies that the two soybean futures markets did not respond quickly to the announcement and there was an informational inefficiency after the announcement. The TGE non-GM soybean futures market is one of the first segregated markets for a non-GM commodity. An intervention of clearing houses on such newly opened markets can often lead to market inefficiency so a further study is necessary in order to understand what causes such inefficiency and to find out how clearing houses can minimize the effects of intervention.

The Contract Year Phenomenon in the Corner Office: An Analysis of Firm Behavior During CEO Contract Renewals

This paper investigates how executive employment contracts influence corporate financial policies during the final year of the contract term, using a new, hand-collected data set of CEO employment agreements. On the one hand, the impending expiration of fixed-term employment contracts creates incentives for CEOs to engage in strategic window-dressing activities. We find that, compared to normal periods, CEOs manage earnings more aggressively when they are in the process of contract renegotiations. Correspondingly, during CEO contract renewal times, firms are more likely to report earnings that meet or narrowly beat analyst consensus forecasts. Moreover, CEOs also reduce the amount of negative firm news released during their contract negotiation years. On the other hand, we find that merger and acquisition deals announced during the contract renegotiation year yield higher announcement returns than deals announced during other periods, suggesting that the upcoming contract expiration and renewal can also have disciplinary effects on potential value-destroying behaviors of CEOs. In addition, we show that firms whose CEOs are not subject to contract renewal pressure do not experience such corporate policy changes and that CEOs who engage in manipulation during contract renewal obtain better employment terms in their new contracts, in terms of contract length, severance payment, and salary and bonus. Overall, our results indicate that job uncertainty created by expiring employment contracts induces changes in managerial behaviors that have significant impacts on firm financial activities and outcomes.

Revocable hierarchical identity-based encryption

In practice, revocation functionality is indispensable to the public key cryptosystems since there are threats of leaking a secret key by hacking or legal situation of expiration of contract for using system. In the public key infrastructure setting, numerous solutions have been proposed, and in the Identity Based Encryption (IBE) setting, a recent series of papers proposed revocable IBE schemes. Delegation of key generation is also an important functionality in cryptography from a practical standpoint since it allows reduction of excessive workload for a single key generation authority. Although efficient solutions for either revocation or delegation of key generation in IBE systems have been proposed, an important open problem is efficiently delegating both the key generation and revocation functionalities in IBE systems. Even if the goal is very natural, there are some obstacles to achieve both functionalities at the same time. Libert and Vergnaud, for instance, left this as an open problem in their CT-RSA 2009 paper. In this paper, we propose the first efficient solution for this problem. We prove the selective-ID security of our proposal under the Decisional Bilinear Diffie–Hellman assumption in the standard model.

From My Perspective: Thriving in the New Audiology Frontier

From My Perspective: Thriving in the New Audiology Frontier

Key account relationships: An exploratory inquiry of customer-based evaluations

The management and retention of key accounts is imperative in facilitating a firm's long-term viability. Previous examinations of key account relationships have revealed valuable insights into the factors facilitating key account management and driving relationship strength. However, account managers often fail to recognize weaknesses within their existing key accounts and the sources of their relationship vulnerabilities. Utilizing an exploratory inquiry of in-depth interviews with 99 executive decision makers across 52 key accounts cases, the authors assess customer relationship evaluations prior to contract expirations for account retention opportunities valued at over $1.3billion. Unique positive and negative drivers of key account relationship evaluations are identified in a thematic categorization, along with a subsequent content analysis highlighting their patterned associations with positive and negative relationship evaluations, future business intentions, and business referral behaviors. These patterned associations reveal that positive and negative perceptions of relational drivers often affect outcomes in a differential manner, resulting in a classification of conventional constructs, prevention constructs, and promotion constructs. The results indicate that the desire of a supplier to maximize positive relational outcomes or minimize negative relational outcomes is driven by distinct underlying associations and allow for insights into resource allocation strategies within key account relationships.