Government Financial Assistance Research Articles

Reforming Executive Compensation: Simplicity, Transparency and Committing to the Long-Term

This Article advances an executive compensation reform proposal that is specifically addressed to firms receiving government financial assistance and thought to pose a systemic risk, although we think that all firms should consider its adoption. Executive compensation reform should lead to policies that are simple, transparent, and focused on creating and sustaining long-term shareholder value. With these criteria in mind, we suggest that incentive compensation plans should consist only of restricted stock and restricted stock options, restricted in the sense that the shares cannot be sold nor the options exercised for a period of at least two to four years after an individual resignation or last day in office. We would permit a minor amount to be paid out to executives currently to address tax, liquidity, and premature turnover concerns that the proposal could induce. We believe that this approach will provide superior incentives for executives(and traders whose actions can substantially impact an organization) to manage firms in investors longer-term interest, and diminish their incentive to make public statements, manage earnings, or accept undue levels of risk, for the sake of short-term price appreciation. By reducing management incentive to take on unwarranted risk, our proposal would therefore also decrease the probability that public resources will be dissipated in bailouts of financial firms, particularly those deemed by public officials as “too big to fail.”

Utilization of public or private health care providers by febrile children after user fee removal in Uganda

BackgroundDespite investments in providing free government health services in Uganda, many caretakers still seek treatment from the drug shops/private clinics. The study aimed to assess determinants for use of government facilities or drug shops/private clinics for febrile illnesses in children under five.MethodsStructured questionnaires were administered to caretakers in 1078 randomly selected households in the Iganga – Mayuge Demographic Surveillance site. Those with children who had had fever in the previous two weeks and who had sought care from outside the home were interviewed on presenting symptoms and why they chose the provider they went to. Symptoms children presented with and reasons for seeking care from government facilities were compared with those of drug shops/private clinics.ResultsOf those who sought care outside the home, 62.7% (286/456) had first gone to drug shops/private clinics and 33.1% (151/456) first went to government facilities. Predictors of having gone to government facilities with a febrile child were child presenting with vomiting (OR 2.07; 95% CI 1.10 – 3.89) and perceiving that the health providers were qualified (OR 10.32; 95% CI 5.84 – 18.26) or experienced (OR 1.93; 95% CI 1.07 – 3.48). Those who took the febrile child to drug shops/private clinics did so because they were going there to get first aid (OR 0.20; 95% CI 0.08 – 0.52).ConclusionPrivate providers offer 'first aid' to caretakers with febrile children. Government financial assistance to health care providers should not stop at government facilities. Multi-faceted interventions in the private sector and implementation of community case management of febrile children through community medicine distributors could increase the proportion of children who access quality care promptly.

Economic Performance of Property Companies in Hong Kong

This paper examines the economic performance of 16 property companies in Hong Kong, and how well they do in comparison with Singapore property companies. The results show that Hong Kong property companies that diversified into other sectors appeared to perform better than those focused solely in real estate. Property companies in Hong Kong generally achieved higher rate of returns on their capital invested than Singapore property companies. Government financial assistance for private homeownership is believed to play an important role in the relatively better performance of Hong Kong's companies, particularly after 1997. Meanwhile, firms in Hong Kong are exposed to higher weighted average cost of capital due to higher business risks, in addition to higher interest rate stemmed from a linked exchange rate system. On the whole, property companies in both Singapore and Hong Kong do not perform well from an Economic Value‐Added (EVA) perspective, but this does not necessarily mean that they are poorly managed. The empirical results show that the performance of a company is influenced dramatically by profits generated from the sale of non‐property assets.

BIOSOCIAL CORRELATES OF STATURE IN A BRITISH NATIONAL COHORT

Analyses of height variation using the 1970 UK national cohort study (12,508 children at age 10 and 5470 at age 16) found clear evidence that children of higher socioeconomic status (as measured by social class, crowding, tenure, type of accommodation, income and receipt of government financial assistance) were on average taller than children of lower socioeconomic status but there was little or no difference in average stature between children living in urban or rural areas. Significant differences in height remained for most of the variables after removing the effects of father's social class suggesting that reliance on social class per se to explain height variation is inadvisable.

Government Financial Assistance for Australian University Students

Governments in Australia play an important role in the provision of education at all levels. This paper reviews the assistance provided by governments to students in Australian universities. It first provides some background information on the history and structure of the Australian higher education sector and then discusses the two major forms of government financial assistance: assistance with fees and assistance through income support.

An enterprise-level economic analysis of losses and financial assistance for eastern Ontario maple syrup producers from the 1998 ice storm

This paper reports estimates of the costs of damage from the ice storm of 1998 for two producer size categories of maple syrup operation (1000 and 3000 tap) and three damage levels (light, moderate and severe) for eastern Ontario. These size categories represent approximately 500 and 1500 trees in production, respectively, given the general practice in the region of installing two taps per tree. Damage categories were defined on the basis of the proportion of average crown loss inflicted by the storm. Partial budget capital budgeting and stochastic simulation were used to generate interval estimates of damages. Sensitivity analysis was used to explore the robustness of the estimated damages. Estimated losses for 1000-tap operators with light, moderate and severe damage were $5385, $13 821 and $28 721, respectively. Losses for 3000-tap operators with light, moderate and severe damage were $14 160, $37 399 and $75 630, respectively. Average government financial assistance was found to be within 5–30% of the estimated losses.

Government Messages and Government Money: Santa Fe, Mitchell v. Helms, and the Arc of the Establishment Clause

This piece, part of a Symposium on Religion in the Public Square, focuses on what appears to be an ever-increasing divergence between the Supreme Court's treatment of government financial assistance to religious institutions and the Court's treatment of religious messages by government. The piece argues that, from the Founding until near the end of the 20th century, government money and not government speech was the center of gravity of Establishment Clause concerns, but that time and changed circumstances ? demographic, religious, political, and constitutional ? have produced an inversion of those concerns. Part I focuses on conditions at the time of the Framing. Part II analyzes the social and political changes of the past 200 years that have most influenced Establishment Clause controversies. Part III traces with particularity the effect of these changes on the law of non-Establishment over the last 50 years, with particular emphasis on last term's decisions in the Santa Fe case, involving publicly sponsored prayer before football games, and Mitchell v. Helms, involving federal provision of educational equipment to schools, including sectarian ones. Finally, the piece analyzes which issues remain on the cutting edge, and concludes that controversies about both government money and government messages will continue with some intensity in the immediate future, but that their respective trajectories have crossed and are unlike to recross in the foreseeable future.

The Contribution of the Christian Missions to British Colonial Education

The English have traditionally encouraged the establishment and maintenance of schools based on private initiative—the so-called voluntary principle. It was this tradition coupled to the philanthropic movement of the late eighteenth, early nineteenth centuries that saw Christian mission schooling firmly established throughout India and the British colonial empire by the 1920s.In 1854, in India, and in 1925, in Africa, Christian missions were given official recognition and made eligible for government financial assistance. The ensuing partnership proved to be a mixed blessing. The Colonial Office was supportive of mission schools as long as they conformed to broad educational principles, and Colcnial administrations saw their role, at least until 1945, as supplementing rather than replacing mission schools. There were, however, frequent tensions in the partnership over matters of control and accountability, especially at the local level where governors and bishops often eyed each other suspiciously. Perhaps even more significant were the ongoing conflicts between rival Protestant denominations and the almost universal distrust of Roman Catholic missions by their Protestant neighbours.It has been claimed that mission schools had a divisive effect on colonial society because they cut across caste, race, social class and gender and produced new elites. It is certainty true that they exerted an influence on national life far in excess of their numbers. Even now, it is still difficult to make an accurate assessment of their overall contribution to colonial education. The expedient nature of mission schooling as a means to an end needs to be balanced by the fact that the missions were the first to take an active interest in the welfare of native peoples. The missionaries have been criticised as agents of cultural imperialism but it is equally true that most of them were devout people who gave them lives to what they were convinced was a worthwhile course. Whatever their shortcomings, just as they had done in England in the early nineteenth century, they laid the basis for all the education systems in Britain's diverse andfarflung colonial empire.

The Quiet Revolution in Catholic Schooling in Australia

In the public policy discourse about vouchers, many Catholic school advocates have been aligned with the new conservative critics of public schools. A review of the Dayton, Ohio, area Catholic schools reveals that need-based student subsidies, which are a variation on vouchers, might reverse the declining urban enrollment in Catholic schools and continue their tradition of educating poor and disadvantaged students. This brief overview of changes in Catholic schooling in Australia over the past 30 years identifies four key factors””the smooth transition from religious to lay staff, the reintroduction of government financial assistance, the development of strong Catholic Education offices, and the steady increase in enrollments””to explain the robust state of Catholic schooling in Australia. However, the case suggests that choice schemes can alter the educational aims of schools in unexpected ways.

The role of governments in a market economy: Future strategies for the high-tech industry in America

Principal topic In the 20th century, we witnessed the struggle between governments who championed capitalism on the one hand and other governments that promoted centralism and control of economy. In 1992, the struggle came to an end with the demise of the Soviet Union, the leader of policies for central control and promotion of equality. Obviously, that system did not work. However, its demise does not conclude that the capitalistic system has triumphed. A long-range strategist will argue that now we are in that transitional phase in history in which each nation will need to define its role in the post-Cold War new economic order. The issue, therefore, is what is the role of governments vis-à-vis the industrial growth of the nation. Obviously, how to manage the high-tech industry has been the subject of considerable debate in recent years at all levels in the society. Should the government join forces with US industry to forge an economic partnership? This economic partnership would then jointly determine a specific, concise industrial policy for high technology, a partnership which is currently being practiced in Japan, in other Pacific Rim countries as well as in EC nations. Major findings Two conclusions became apparent. One was what leading businessmen felt could be done to improve the productivity and competitiveness of American companies. The second was the views of a select group of academicians and students themselves who will be the future managers. Selected university students and scholars were chosen because they have played a valuable role in the evolution and operation of US corporations throughout the history of America. The ones selected for this research were those who are taking or teaching Strategic Management/Policy Formulation and International Business Courses. Because these courses deal with the long-term prospects of American businesses and the ramification of international business competition, and the student and professor who take or teach them have developed an expertise on corporate management, they are very appropriate for viewing the question of government involvement in a key industry. The initial finding was the identification of the variables that corporate leaders indicated could be effective strategies to promote American industries. Three survey was conducted of : 1. (1) CEOs from Fortune 500 companies; 2. (2)Nearly 600 CEOs in all major segments of the Electronic Industry; and 3. (3)CEOs from a cross-section of Fortune 1000 companies. These surveys indicated that key variables could be divided into two major categories of government activity; one was for government policy changes and the other was for government financial assistance, with eight and seven specific recommendations, respectively. Using these variables, separate surveys were conducted of 141 university professors and 75 students identified as having a current or future impact on the high-tech industry. Results indicated that the two most important tasks for the United States government in the long run is to: 1. (1) upgrade the American educational system; and 2. (2) promote an intelligent and flexible work force, specifically trained in scientific and technical skills. Some other specific conclusions reached were that the government needs to assist in: 1. (1) increasing government-sponsored commercial R&D expenditures; 2. (2) attacking the barriers to free and open trade; 3. (3) providing financial incentives for Domestic R&D; 4. (4) providing financial incentives to encourage long-term capital investment by US business; and 5. (5) transferring technology from military to commercial R&D. Implications A major key proposal that has emerged from the research was that it is deemed crucial that an economic partnership among business, education, labor and government be established. The study conclusively reveals that corporate leaders, educators, and future business leaders agree that the US government must take responsibility for a more active role in promoting industrial financial incentives, trade policies, etc. In fact, the research shows that an industrial policy would be beneficial to the interests of the high-technology industry in America. However, while there appears to be agreement that the government needs to develop an industrial policy, there is no agreement on what that policy should be.

The Impact of Management Training and Development on Small and Medium-sized Enterprises

NEILL MARSHALL IS LECTURER, NEIL Alderman senior research associate, and Alfred Thwaites deputy director, in the Centre for Urban and Regional Development Studies at the University of Newcastle upon Tyne, England. Cecillia Wong is lecturer in the department of planning and landscape at the University of Manchester, England. This paper examines the impact on firms of the management training and development provided as part of the Business Growth Training Option 3, a programme of United Kingdom government financial assistance to help small and medium-sized enterprises in Britain to employ consultants to train and develop their management staff. The study compares changes in a cohort of firms undergoing management training and development in Option 3, with a matched sample of firms not in receipt of assistance. The research demonstrates the effectiveness of management training in small and medium enterprises. It shows that Option 3 assistance led to improvements in management, organisation and business performance in participant firms.

Government Financial Assistance and Manufacturing Investment in Northern Ireland∗

SHEEHAN M. (1993) Government financial assistance and manufacturing investment in Northern Ireland, Reg. Studies 27, 527–540. This paper analyses the influence of government grants on the investment decision making process in the Northern Ireland manufacturing sector. The paper is based on detailed interviews with Northern Ireland manufacturing firms and focuses on two time periods: 1985–88 and 1989–92. Findings are presented on the impact of grant schemes on the level, timing and quality of investment expenditure. During the period 1985–88 two types of grant schemes were available for capital investment in Northern Ireland: Standard Capital Grants (SCGs) which were automatic grants and Selective Financial Assistance (SFA). The Standard Capital Grant scheme was eliminated in 1988. The findings indicate that SCGs had more effect on companies' investment programmes than SFA due to the certainty of payment. Since 1988, SFA has become more important to companies and appears to be offsetting, to a certain extent, the impact of the UK recession by assisting companies to maintain investment levels. The findings also indicate that grants help to offset some of the problems that companies experience due to Northern Ireland's peripheral location. SHEEHAN M. (1993) Les aides financières d'état et l'investissement dans les industries de fabrication en Irlande du Nord, Reg. Studies 27, 527–540. Cet article cherche à analyser l'impact des primes d'Etat sur la prise de décision relative à l'investissement dans les industries de fabrication en Irlande du Nord. L'article résulte des interviews détaillées avec des entreprises industrielles en Irlande du Nord et porte sur deux périodes: de 1985 à 1988 et de 1989 à 1992. On présente les résultats quant à l'impact des primes sur le niveau, le calendrier et la qualité des dépenses d'investissement. Sur la période allant de 1985 à 1988 deux catégories de primes étaient disponibles en Irlande du Nord visant l'investissement de capitaux: une subvention en capital automatique (Standard Capital Grant; SCG) et de l'aide financière sélective (Selective Financial Assistance; SFA). La SCG était supprimée en 1988. Les résultats laissent voir que la SCG avait plus d'impact sur les programmes d'investissement des entreprises que ne l'avait la SFA gr[acaron]ce à son affectation automatique. Depuis 1988, la SFA est devenue plus importante pour les entreprises et dans une certaine mesure il semble qu'elle compense l'impact de la récession au Royaume-Uni en aidant les entreprises à maintenir leur niveau d'investissement. Les résultats démontrent aussi que les primes aident à compenser quelques-uns des problèmes dont souffrent les entreprises en vue de leur localisation périphérique. SHEEHAN M. (1993) Staatliche Finanzbeihilfe und Industrieinvestierungen in Nordirland, Reg. Studies 27, 527–540. Dieser Aufsatz analysiert den Einfluß, den staatliche Zuschüsse auf den Vorgang des Beschlüssefassens bezüglich Investierungen im Bereich der Industrie Nordirlands ausüben. Der Aufsatz fußt auf ins Einzelne gehenden Interviews mit Herstellerfirmen in Nordirland, wobei das Augenmerk besonders zwei Zeitabschnitten gilt: 1985–1988 und 1989–1992. Die Befunde befassen sich mit der Auswirkung von Beihilfeprogrammen auf Höhe, Zeitpunkt und Qualität von Investierungsausgaben. Dem Zeitraum 1985–1988 standen zwei Typen von Beihilfeprogrammen für Kapitalinvestierungen in Nordirland zur Verfügung: automatische Standardkapitalbeihilfen (SCG) und selektive Finanzbeihilfen (SFA). Erstere wurden im Jahre 1988 eingestellt. Die Befunde weisen darauf hin, daß sie, dank der Gewißheit der Zahlungseinläufe, eine größere Auswirkung auf die Investierungsprogramme der Gesellschaften hatten als die selektiven Finanzbeihilfen. Seit 1988 haben letztere für Gesellschaften an Bedeutung gewonnen, und scheinen in gewissem Ausmaße die Auswirkung des Konjunkturrückgangs im Vereinigten Königreich auszugleichen, indem sie Gesellschaften helfen, die Höhe der Investierungen beizubehalten. Die Befunde weisen auch darauf hin, daß Beihilfen dazu beitragen, manchen Problemen zu begegnen, denen Gesellschaften der Randlage Nordirlands wegen ausgesetzt sind.

Housing stock management issues in the kingdom of Saudi Arabia

Abstract The impressive growth in housing stock which the Kingdom of Saudi Arabia has experienced during the past two decades is influenced by massive government financial assistance and other housing programmes in the public and private sectors, growth in the real income of the households, demographic changes, and rapid rate of urbanisation. The severe housing shortage experienced during the early phase of economic development prompted the government to formulate an aggressive supply‐oriented housing strategy during the Second and Third Plans, creating a housing surplus during the Fourth Plan period. The existing high rate of housing vacancy directed the government to play an indirect and co‐ordinating role during the Fifth Plan. Future trends in housing need, however, demand a balanced strategy in housing development, emphasising both quantitative and qualitative aspects of housing, within the framework of national urban land development policy and building regulations.

Grants Commission Assessment of Local Government Debt Servicing and Capital Expenditures

Abstracts The Commonwealth Government provides funds to local government via the States. Each State is required (via the State Grants Commission) to distribute those funds in compliance with the provisions of the Local Government (Financial Assistance) Act. In essence, the Act requires the State Commissions to estimate the relative needs of each local government authority (LGA) based upon revenue-raising capacity and differences in the cost of providing public services. It is this latter aspect that is the focus of this paper. At present most State Grants Commissions consider costs differentials associated with ail major expenditures except debt servicing (with only Victoria and Western Australia making some allowance). No State Commission makes allowance for capital expenditures financed out of current budgets. Debt servicing is a particularly important cost for many LGA s and the potential exists for quite substantial differences in the cost .of debt incurred. These differences may depend upon the timing of the debt (and therefore the interest rate). the primary cost of expenditures to which the debt relates and an unequal distribution of the burden of shortfall between the funds provided by the Commonwealth and the effort-neutral budget deficit of LGAs. This paper demonstrates the case for both a debt servicing and capital expenditure cost component in Grants Commission assessment, and shows that in practice, taking account of the differences in these costs between LGAs can be relatively simple. The inclusion of these costs ensures a comprehensive assessment of the relative needs of local government.

The exploitation of colour physics technology in the textile industry‐A study in technology transfer

Whilst the technology is available for computer colour matching and quality control of the dyed shade, it is often difficult for the small textile dyeing company to assess the potential for this technology in its own operation. This paper describes a project, carried out with UK government financial assistance, in which a number of small dyeing firms have been assisted in evaluating this technology. Financial and technical benefits have been identified in all of the participant companies and a number of them have transferred the available technology into their production plants.

Employment Prospects in a Commercially Viable Newfoundland Fishery: An Application of 'An Econometric Model of the Newfoundland Groundfishery'

An econometric model is utilized to simulate the effects of a policy change in which government financial assistance to a major Canadian marine fishery is withdrawn and the industry is placed on a commercially viable basis. Under near-ideal conditions of marketing and harvesting, harvesting employment would fall drastically, from approximately thirty thousand fishermen under the current regime to approximately six thousand. There would be a concomitant fall in seasonal fish plant employment, and a severe fall in those federal transfer payments (e.g., unemployment insurance) which are currently generated by extensive seasonal employment in both harvesting and processing sectors of the fishery. The policy analysis consists of simulations with a prototype econometric model which integrates the demand, processing, and harvesting sectors of the fishery. The essential components of the 1,000-equation model are described.

Effects of Increased Precipitation and Grazing Management on Northeastern Montana Rangelands

Effects of Increased Precipitation and Grazing Management on Northeastern Montana Rangelands

Genesis and Operation of the Bengal State Aid to Industries Act, 19311

The Bengal State Aid to Industries Act was passed in 1931 to enable state aid to be given mainly for the purpose of encouraging cottage industries on a small scale. The Act was the outcome of a recommendation made by the Indian Industrial Commission in 1918 which stated that "assistance... be given to small and cottage industries by the local Departments of Industries in the shape of small Government loans or by financing the purchase of plant on the hire-purchase system". This recommendation the Indian Industrial Commission made in view of the lack of financial facilities which stood in the way of extension of small and cottage industries and of those industries which were new to the economy of India. Moreover, it was felt that government financial assistance would also create a favourable environment for investors who till now were unwilling to invest money in undeveloped industries with uncertain prospects until government associated itself with those. In this paper an attempt has been made to examine certain aspects of the Bengal State Aid to Industries Act, 1931. This has been done in three parts. Part I deals with the course of events leading to the passing of the Act. Part II is a critical study of its working while Part III evaluates its performance in Bengal till 1947. The various moves made to amend the Act and the Rules enacted thereunder are also discussed in Part III.

Adolescent Pregnancy—Where Is the Unwed Teenage Father?

As discussed by McAnarney et al (Pediatrics 61:199, February 1978), a comnprehensive teenage maternity program can have an effect on reducing the psychosocial risk of repeat pregnancy. School attendamice figures and reliance on government financial assistance, however, did not differ between the groups they studied. Perhaps the missing key to reducing the psychosocial risks of teenage pregnancy may be found by including the girl's partner in the activities offered by maternity programs. Since the work of Pannor et al1 in 1969, there has been a paucity of literature addressing the subject of the unmarried teenage father, and health care providers show little interest in encouraging these teenage boys to share in the responsibility of the pregnancy.

An Investigation of Selection Criteria for Admission to an Ontario University

The study investigated the effectiveness of five methods of university admission criteria in relation to academic results achieved after one year of university study. The admission criteria used were open admission, interview, teacher recommendations, Grade 13 academic achievement and SACU test scores. In addition these procedures were compared with a traditional method of admission at the university where the study was carried out. The characteristics of the admission groups were not significantly related to geographical distribution, sex distribution, government financial assistance, and attitude and personality questionnaire data. These characteristics were no different for these groups than the traditional method of selection and there was no significant difference between groups as to final first year grade point average or academic penalty i.e., probations and rustications. The open admissions group compared favourably on these latter variables with other admissions groups and particularly with the university's traditional method of admission.