PLS ratios negotiability: A repeated game incentive mechanism approach

PLS contracts in Islamic finance are fair economic practices as they focus on sharing profits and loss between the project’s participants. Despite its ethical dimension, moral hazards and adverse selection are the paramount risks in this type of contracts. In this paper we seek reducing moral hazards in the form of the entrepreneur’s effort shirking and if a project optimum lifetime can be identified. To answer these questions, we use a game theory approach in one stage and in a repeated framework. Under each scenario, the participants either fix the capital contributions or negotiate over the sharing ratio or vice-versa. We found theoretical evidence that cooperation can be sustained over a one period game. Cooperation can be sustained in a repeated game only if an appropriate monetary incentive is introduced. However, this incentive can only be given for a specific period before the project’s NPV starts to drop. Indeed, we managed to find that period, called duration, for which the financier NPV is maximized. This duration can be proposed to be used as the optimum lifetime of the contract

Les déterminants de la gouvernance entrepreneuriale au milieu universitaire : Cas du Maroc

This article focuses on analyzing the main elements shaping entrepreneurial governance within Moroccan public universities, with particular emphasis on the Moroccan context. From this perspective, we will identify the factors influencing this form of governance, which aims to generate additional sources of revenue for Moroccan universities, complementing government funding. To achieve these objectives, the research adopted a qualitative methodology, based on semi-structured interviews with managers and stakeholders of Moroccan higher education institutions. The sample size was determined according to the principle of theoretical saturation. Indeed, the findings of this study highlight several key elements that play a central role in the implementation of entrepreneurial governance within Moroccan universities. These factors include the creation of time-based training courses, research projects, the commercial exploitation of infrastructure on university campuses, and the provision of consulting services to socio-economic players. These results contribute to a better understanding of this dynamic, which is essential to the performance and financial stability of these higher education establishments.   Keywords : Entrepreneurial governance, Determinants, University environment, Morocco. Classification JEL : O31 Paper type : Empirical ResearchCet article se concentre sur l'analyse des principaux éléments qui façonnent la gouvernance entrepreneuriale au sein des universités publiques marocaines, en mettant particulièrement l'accent sur le contexte marocain, dans cette perspective nous allons identifier les facteurs qui influencent cette forme de gouvernance, visant à générer des sources de revenus supplémentaires pour les universités marocaines, en complément des financements gouvernementaux. Pour parvenir à ces objectifs, la recherche a adopté une méthodologie qualitative, en se basant sur des entretiens semi-directifs menés auprès des responsables et des acteurs des établissements d'enseignement supérieur au Maroc. La taille de l'échantillon a été déterminée selon le principe de la saturation théorique. En effet, les conclusions de cette étude mettent en évidence plusieurs éléments clés qui jouent un rôle central dans la mise en œuvre de la gouvernance entrepreneuriale au sein des universités marocaines. Parmi ces facteurs, on peut citer la création de formations en temps aménagé, les projets de recherche, l'exploitation commerciale des infrastructures sur les campus universitaires, ainsi que la prestation de services de conseil aux acteurs socio-économiques. Ces résultats contribuent à une meilleure compréhension de cette dynamique essentielle pour la performance et la stabilité financière de ces établissements d'enseignement supérieur.   Mots clés : Gouvernance entrepreneuriale, Déterminants, Milieu universitaire, Maroc. JEL Classification : O31 Type du papier : Recherche empiriqu

A bargaining model for PLS entrepreneurial financing: A game theoretic model using agent-based simulation

This article aims to use a bargaining power model to reduce moral hazard—in the form of entrepreneurial effort shirking—and derive an optimum sharing ratio of a Profit and Loss Sharing (PLS) contract that involves a Venture Capitalist and an Entrepreneur. The model reveals the following interesting findings. First, under complete information—where the Venture Capitalist has a bargaining power ‐ Venture Capitalist offers the entrepreneur a profit sharing ratio that is less than her capital contribution ratio. Second, in an incomplete information setting, the entrepreneur demands a profit sharing ratio higher than her capital contribution ratio when the sum of the marginal cost (from exercising a higher effort) and private benefits (from exercising a low effort) is greater than the marginal return (from exercising a high effort). In addition, the model is used to derive a span of negotiation about the profit sharing ratio. Finally, an agent based simulation (Netlogo) platform is considered to implement the model, which allows a faster numerical calculations of the profit share and helps decide on the validity of the funding contract

Noninvasive predictors of presence and grade of esophageal varices in viral cirrhotic patients

Predicting the presence and the grade of varices by non-invasive methods is likely to predict the need for prophylactic beta blockers or endoscopicvariceal ligation. The factors related to the presence of varices are not  well-defined. Therefore, the present study has been undertaken to determine the appropriateness of the various factors in predicting the existence and also the grade of esophageal varices. Patients with  diagnosis of liver cirrhosis due to hepatitis C or B were included in a retrospective study between January 2001 and January 2010. All the  patients underwent detailed clinical evaluation, appropriate investigations, imaging studies (ultrasound with Doppler) and endoscopy at our center. Five variables considered relevant to the presence and grade of varices were tested using univariate and multivariate analysis (logistic regression). Three hundred and seventy two patients with viral liver cirrhosis were included, with 192 (51.6%) males. Platelet count and abundance of ascites were significantly associated with the presence of esophageal varices. However, abundance of ascites, prothrombin time, diameter of the spleen and portal vein were significantly associated with a large varice. In  multivariate analysis, platelet count inferior to 100000 was associated with presence of varices (p=0.04) and only abundance of ascites was associated with large varice. Low Platelet count (< or equal 100000) is associated with the presence of varices in viral cirrhotic patients and abundance of ascites is correlated with the presence of large varices

Prioritization of customers’ preferences in Islamic banking system: an artificial intelligence approach using Kano analysis

Purpose: There are variety of factors that influence a customer’s selection of a bank in general. However, there is a large gap in the literature that covers a customer decision to choose between an Islamic bank and a conventional one. To this end, we try to fill this gap by using a case study in Morocco to analyse factors contributing to a consumer’s bank selection. Methodology: The analysis presented in the paper is using a case in Morocco and applying an artificial intelligence method using KANO analysis. We apply it in three stages. First, customers preferences are identified and classified according to their impact on customer’s satisfaction. Second, a Satisfaction Increasing Index (SII) is formulated. Third a Dissatisfaction Decreasing Index (DII) is formulated. Findings: The analysis shows that Islamic banking attributes (Provision of profit-loss sharing financing , Operating on Islamic law and principles, Staff knowledge of Islamic banking, Provision of interest-free loans) are required by customers in selecting an Islamic bank as opposed to a conventional bank. However, these requirements do not necessarily contribute to increasing customers’ satisfaction. Significance: To the best of our knowledge, this is perhaps the first paper which uses a Kano analysis in the context of consumers selection of an Islamic or Conventional bank Research Limitations/Implications: This Paper has the main limitation of being conducted only in Morocco. It will be interesting to see how the results would change if the country context is changed. Practical and Social Implications: The findings using these techniques, should help financial institution, whether it be Islamic or conventional banks to tailor their offerings to match consumers requirements. KAUJIE Classification: L3, JEL Classification: D12, N3

A bargaining model for PLS entrepreneurial financing: A game theoretic model using agent-based simulation.

This article aims to use a bargaining power model to reduce moral hazard—in the form of entrepreneurial effort shirking—and derive an optimum sharing ratio of a Profit and Loss Sharing (PLS) contract that involves a Venture Capitalist and an Entrepreneur. The model reveals the following interesting findings. First, under complete information—where the Venture Capitalist has a bargaining power ‐ Venture Capitalist offers the entrepreneur a profit sharing ratio that is less than her capital contribution ratio. Second, in an incomplete information setting, the entrepreneur demands a profit sharing ratio higher than her capital contribution ratio when the sum of the marginal cost (from exercising a higher effort) and private benefits (from exercising a low effort) is greater than the marginal return (from exercising a high effort). In addition, the model is used to derive a span of negotiation about the profit sharing ratio. Finally, an agent based simulation (Netlogo) platform is considered to implement the model, which allows a faster numerical calculations of the profit share and helps decide on the validity of the funding contract

Can Real Options Reduce Moral Hazards in Profit and Loss Sharing Contracts?: A Behavioural Approach Using Game Theory and Agent Based Simulation

In this paper, we try reducing the moral hazard of profit misreporting in Profit and Loss Sharing Contract (PLS). In this kind of contracts , the corporate manager has a temptation to misreport profits which can lead to either project failing or to financiers receiving an unfair allocation of profits. To help in solving this problem we propose a new model that includes a real option that gives the corporate manager (agent) the right, but not the obligation, to gradually buy shares in the corporation from the financier/bank. We compare our results with the standard case of PLS without real options. We show, using a multi-agent simulation (Netlogo) that embedding real options in the PLS contract can reduce the profit misreporting case. The fact that PLS contracts are riskier compared to other forms of financing such as debt, provides an incentive for the creation of models that reduce their risk to capital providers. Given the results obtained from our real options model, the latter could prove to be of practical use to financial institutions willing to engage in PLS financing

An analysis of how a collaborative teaching intervention can impact student mental health in a blended learning environment

There is increasing evidence that students face i) mental health challenges, ii) these challenges have increased following the Covid-19 pandemic, and iii) isolation has had a negative impact on student mental health. However, few studies offer practical pedagogical solutions with strategies to enhance student mental wellbeing. In a blended learning environment, during the Covid pandemic, we develop a mental health teaching intervention that promotes collaborative learning (theory) and group cohesion to enhance student mental wellbeing. Using a mixed method approach, questionnaire data (85) provides empirical evidence that a collaborative learning mental health intervention has been successful in promoting student wellbeing. We also provide evidence that seeking help from professionals has an incrementally positive influence on student mental health. The results of this study can therefore be used to inform administrators and educators about student mental health care in normal times, as well as future disaster scenarios

Health risk behaviours amongst school adolescents: protocol for a mixed methods study

Abstract Background Determining risky behaviours of adolescents provides valuable information for designing appropriate intervention programmes for advancing adolescent’s health. However, these behaviours are not fully addressed by researchers in a comprehensive approach. We report the protocol of a mixed methods study designed to investigate the health risk behaviours of Moroccan adolescents with the goal of identifying suitable strategies to address their health concerns. Methods We used a sequential two-phase explanatory mixed method study design. The approach begins with the collection of quantitative data, followed by the collection of qualitative data to explain and enrich the quantitative findings. In the first phase, the global school-based student health survey (GSHS) was administered to 800 students who were between 14 and 19 years of age. The second phase engaged adolescents, parents and teachers in focus groups and assessed education documents to explore the level of coverage of health education in the programme learnt in the middle school. To obtain opinions about strategies to reduce Moroccan adolescents’ health risk behaviours, a nominal group technique will be used. Discussion The findings of this mixed methods sequential explanatory study provide insights into the risk behaviours that need to be considered if intervention programmes and preventive strategies are to be designed to promote adolescent’s health in the Moroccan school