Fallacies, Collapses, Crises. Now What?

The current crisis has been seen as the result of a “few bad apples”. The paper argues that the crisis is systemic and based on fallacies and misconceptions in the design and function of the economic – corporate system. Organizational and economic theories are based on hypotheses that lead to faulted decisions on how the system should be regulated and designed. The paper proposes that a new theory is needed. Disjoint approaches of the current situation are not suitable. Law, Organization theory, Economics, Finance and Accounting need to converge in order to formulate a theory that encompasses all factors and it is holistic. Introduction of corporate governance systems that are as dynamic as the organizational, ownership, product and capital market are, are necessary in order to create a stable and effective corporate environment

Fallacies, Collapses, Crises. Now What?

The current crisis has been seen as the result of a “few bad apples”. The paper argues that the crisis is systemic and based on fallacies and misconceptions in the design and function of the economic – corporate system. Organizational and economic theories are based on hypotheses that lead to faulted decisions on how the system should be regulated and designed. The paper proposes that a new theory is needed. Disjoint approaches of the current situation are not suitable. Law, Organization theory, Economics, Finance and Accounting need to converge in order to formulate a theory that encompasses all factors and it is holistic. Introduction of corporate governance systems that are as dynamic as the organizational, ownership, product and capital market are, are necessary in order to create a stable and effective corporate environment.Crisis, Fallacies, Corporate Collapses, Corporate Governance

The Cash Flow Model with Float: A New Approach to Deal with Valuation and Agency Problems.

In this paper we introduce a cash flow model with float to manage core issues in Corporate Finance. The float actually removes current hindrances pervading the standard cash flow model. To start with, we derive the float model and uncover its underlying financial engineering. After that, any investment decision is regarded as a synthetic portfolio made out of a revenue bond financing the investment, and a performance swap acting as a value driver. It is within the performance swap where the float lies and enhances value. Furthermore, extension to valuation is provided taking advantage of the former portfolio approach. Next, the float complex structure is displayed to proceed towards its sources and uses of cash flows. Last of all, we expand upon a normative model which makes the most of the float and spells out how an accountability precept should be functional in redressing agency problems.Cash Flow Float; Agency Problems; Arbitrage; Performance Swap; Revenue Bond

Design Review & Checking System (DrChecks)

The U.S. Army Construction Engineering Research Laboratories (CERL) has developed a prototype computer system that supports the capture and use of organizational experience in the context of the design review process. The world wide web provides the communications backbone of the Design Review and Checking System (DrChecks). Users access DrChecks using commercially developed, free web browser software

Jaipur Foot Camp Brings Renewed Hope to Landmine Victims in Kabul

A 23-year-old girl and resident of Kabul, Afghanistan, lost both of her legs in a landmine explosion. After the accident, she felt like a burden to her family. Through an advertisement on television, Faribo heard about the Jaipur Foot Camp and decided to see what it had to offer her. At the camp, she received a light and comfortable prosthesis

Crisis in the Irish Banking System

Ireland has had one of the most catastrophic experiences of financial crisis in the developed world, in the wake of the global financial crisis of 2008. Unlike the US or Britain though, Ireland’s enormous banking exposure was almost entirely related to property speculation and to the unchecked domestic housing bubble of the preceding ten years. This paper analyses the conditions that led to the crisis, taking account of patterns of corporate governance, regulatory institutions and practices, and the linkages between the banking sector and the political system.