Auto Finance Will Be Open to Foreign Companies

"Policy of People’s Bank of China is veryenlightened. Conditions for foreign capitalentering into are very relaxed. After the FordCompany received the soliciting opiniondraft of Measures, we quickly translated itinto English and sent it by fax to theHeadquarters of Ford Auto Finance Co. forresearch. We are very excided for theenlightenment of the people’s Bank ofChina." Mr. Xu Guozheng, Vice Presidentof Ford Auto(China) Co. Ltd. Answeredquestions from the reporter with pleasure onOctober 10, 2002.

Capital Budgeting： Methods, Aspects, and Issues

This paper furthers the understanding of capital budgeting （CB） processes. It emphasizes the assumed disposition of the forecast cash benefits from projects. The two reasons for CB are discussed. First, which projects are and are not acceptable from a financial prospective？ Second, of financially acceptable projects, CB methods can rank or order projects relative to desirability. Under conditions of certainty, the paper describes and contrasts three primary methods： pay back （PB）, net present value （NPV）, and internal rate of return （IRR） and three secondary methods： profitability index （PI）, terminal value （TV）, and modified internal rate of return （MIRR）. The presentation lists the strengths and weaknesses of each method in order to direct attention to some of the many aspects of CB decisions that firm managers should consider. Next, approaches for taking risk into consideration are discussed. The discussion raises the important issues of what to do with the net cash benefits from various projects when and if they are received. Finally, the paper provides flexible tools and example problems for teaching CB in a variety of contexts, such as professional corporate training or academic coursework.

Discussion on the Particularity and Countermeasures of the Nongovernmental Aviation Companies＇ Financing Environment

On March 11th 2005, the first flight of nongovernmental aviation company means the situation that state capital controls the whole Chinese civil aviation industry has been broken. The nongovernmental aviation companies must face financing problem during their growing process unavoidably. Moreover, compared with other aviation companies in the world, the financing environment of nongovernmental aviation companies in China is very special. This paper has discussed the particularity of nongovernmental aviation companies＇ financing environment in China, and brought out some advice from the angles of government and nongovernmental aviation companies.

The Role of Institutional Investors in the Evolutionary Dynamics of Agro-food Enterprises

The research topic is the one of public finance company whose core business is focused to support investment projects to overcome enterprises technological and structural gap. The research question is： If and how a public finance company is able to create and favor value creation processes sustainability for agro-food enterprises, highlighting the positive emerging externalities for different categories of stakeholders. They have results with particular evidences allow comparisons between the private investments and the support of institutional public investors. In such perspective, the mode of disbursement of soft loans and investment operations made by a public financing company will be examined. The methodological approach used, following a deductive-inductive perspective, is based on the ease study. Such technique able to formulate theories about a little known phenomena in their context, allows the study of recent events on which the researcher has little control. To this, a qualitative analysis on both primary and secondary data adds. From data analysis, it resulted that the Institute of Agribusiness Development （ISA） initiatives facilitated, just for example, the technological innovation of production department and consequent production capacity, the acquisition of production assets for row material processing and optimization of internal logistics, through an innovative automated warehouse. As a result, the case study finds sustainability at multiple levels reached by the activities promoted by ISA and the subsequent co-creation of value for stakeholders involved, small agro-food businesses innovation, and/or internationalization processes. As long as practical implications are concerned, such highlight the importance and the need for public and private institutions in their effort to continue to invest in projects to support the economy of the country. The originality of the paper lies in the proposed interpretation of more integrative paradigms （viable system approach, sustainability, and, value creation）, analyzing a financial institution for the development of the Italian food industry. At the same time, authors stress the research limit that is the analysis of the input of only one organization and consequent limited data in quantity and time span.

The Impact of Capital Requirements on Companies＇ External Financing

The new prudential standards implemented by the Basel Committee treat banks＇ capital as a foundation for safety. The appropriate level of bank＇s capital helps to manage all kinds of risks with the special attendance on credit risk. The adequate capital base enables absorbing losses and maintaining bank＇s stability. The necessity to fulfill the capital requirements influences banks＇ credit policy and, as a result, the access to companies＇ external financing. The main purpose of the paper is to present the impact of the capital requirements implemented by Basel Committee （Basel III requirements） on companies＇ access to external finance. The paper discusses the changes in credit standards, the companies＇ external financing and formulates the prerequisites for the further development of companies＇ external financing. The paper contains the empirical data for largest European euro area countries regarding the GDP.