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On the continued emphasis on the knowledge transfer process and not just whether it leads to value creation but how it occurs following a merger and how it leads to value creation. In addition, it was believed there is a need to focus more on the emergent nature of value creation following an acquisition and how individuals and communities of practice factor into this process. Optimal portfolio can be characterized as resulting in a controversy between skeptical economic and enthusiastic financial research, earning of firms in the decline after consolidation.
In contrast, financial researchers claim that acquiring firms do not lose and earnings do not decline in the years following integration. This performance disparity reflects the different methods and perspective of economic and financial merger and acquisition research that seems to bias the respective findings. However, continuing the controversy of whether optimal portfolio is good or bad in general is of very limited practical use. A more practical approach is to instead look at what the factors are that determine high versus low merger and acquisition performance.
The same logic holds for investors who buy foreign securities or undertake direct investment abroad. They expose themselves to the risk that the value of these assets in terms of domestic currency will drop when the price of foreign exchange drops. They can protect themselves by hedging, selling the foreign currency forward. But they may have to pay an exchange risk premium to do so. There is some reason to believe that such exchange risk premiums are relatively small.
Much of exchange risk is diversifiable: the domestic importer who wishes to buy foreign exchange forward will, through the intermediation of the market, find a natural partner in the foreign importer who wishes to buy domestic exchange forward. Similarly, the investor who wishes to sell foreign exchange forward will find a ready partner in the foreign investor who wishes to buy foreign exchange forward, the market-clearing equilibrium forward price at which all parties end up trading may not be far off from the expected future spot price that would prevail in the absence of uncertainty.
Few investors’ holding actually reflect global capitalization weights; most portfolios have disproportionately large domestic exposure. This tendency to concentrate assts domestically referred to as home bias influences the currency hedging policy because fewer underlying assets are invested abroad. Is there an underlying economic rationale for home bias, are there rules of thumb to help determine a suitable home bias level and how does the home bias affect the currency hedging policy. Fixed income home bias affects the Sharpe ratio.
It compares the expected excess return, volatility and Sharpe ratio for the global capitalization weighted portfolios with global equity investments and domestic-only fixed income holdings. Familiarize the policies, procedures and method in your organization that govern the way projects are done, it doesn’t mean that executive office give you their support means you are on your own alone, you are still working to this company and all the major decision must be approved by the higher office.
Edit the charter with your boss until you both agree on its procedure and possible outcome is cleared to both of you. This project must be pursued to be able to have a systematic networking of all the data bases from the main office to its branches. A central program will be developed in the main office and will be networked in all branches; all data must correlate to the main program. Optimal Portfolio Distribution: Rather than choosing sides between economic accounting and financial stock-market performance measures and their respective biases.
There are optimal portfolio had received a vast criticism. For distribution will be the favored services and the provider of the customer financing from other firm, at the same time as the second firm will be the preferred provider of their respective people only. A staffing plan, the people required in this project must need to implement the project, They must personally select the key people in your team you must be able to identify their interest and ask for their dedication to functioning efficiently and effectively on the project team.
They should also agree to accept and give their assurance in reaching the team goals, because these key team members are involved in the procedures from the start till the end of the project. companies should be contracted as early as possible to assist in evaluating the issues and minimizing the dissemination of potentially damaging information among non-privileged persons.
Management need to determine whether to publicly disclosed the violations a/or repay any overpayments or, if warranted, explain to the investigators why violations have not occurred. Internal control is a process affected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories, reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations.
This definition emphasis the fact that internal control is a function of the board management and other personnel within the organization, the responsibility for internal control rests squarely on management shoulders. Optimal distribution will present the charter to the executive offices as well as to the major stockholders, he will present the propose plan to them and ask for their approval.
Once the proposed plan is being approved the next step is to present the project to the unit managers, this unit managers are the one responsible for the essential defining of the new process so the project manager together with his team will elucidate these unit managers, they have to convince them for they do not comprehend the knowledge owned by the lower-level staff members who are responsible in the daily activities of the company.
The stakeholders are those who has vested interest in the success of the project, they also give their expectations for the better understood throughout the project procedures identified a critical stage of their sales outcome, and with the help of the propose project which will organize all the data from all branch office plus the fact of the easy access of all the requirements or data needed the company will have a better system in serving their patriot clients. With the propose project they can aim to have grow in their growth which is attainable by targeting new markets, expanding their network globally and be able to produce several new products.