JIBMR - Journal of International Business Management & Research

Volume: 2, Issue: 5

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• OPTIMIZING A FINANCIAL PERFORMANCE METRIC IN DEVELOPING A PETROLEUM RESERVOIR
  Author(s): Frank Moseley
  

OPTIMIZING A FINANCIAL PERFORMANCE METRIC IN DEVELOPING A PETROLEUM RESERVOIR

Author(s): Frank Moseley

this paper analyzes a petroleum reservoir management optimization problem. After management receives new information about a petroleum reservoir, it would like to act optimally to increase the value of the proved developed reserves. The problem structure is characteristic of a number of similar natural resource investment problems where the control policy influences the rate of production and depletion of a reserve. This paper develops the base case model on which a number of future optimal decisions and models could be developed and resolved. For example an earlier paper, based on this base case methodology, was developed to model how management decisions makers would optimally produce the reserves when it was discovered, after several years of production, that the reserves were significantly higher than previously estimated. This base case paper models what would be an optimal depletion path that proved developed and the value of undeveloped oil reserves should follow while minimizing cost (effort). The optimal control solution will be a function of the reserve itself and is known in the literature as a closed-loop solution. The feedback solution is obtained by using a format known as the linear-quadratic problem. The format received its name by the use of linear state equations and a quadratic objective function, which will be minimized. There are numerous advantages of closed loop optimal control. In a closed loop control model the input is determined on a continuing basis by the behavior of the system itself, as expressed by the behavior of the outputs. The feedback format gives management control rules to implement without having to reformulate the new optimal path should there be changes in the reserve status. The base case model results are compared to production data from the Rodessa oilfield in Louisiana. The case is compared to the response of the reserve depletion path as if it were modeled as an open loop optimal control problem. The conclusions indicate a production tilting toward the present by increasing drilling intensity even when using a zero discount rate. This tilting is consistent with the natural resource literature. The class of problem introduced in this paper appears to offer an attractive format for modeling a diversity of natural resource problems.

Keywords: Optimization, Optimal Control, Feedback, Reserves, Depletion.



• ASSESSING THE BENEFITS OF U.S. MICRO-CAP HOLDINGS AND INTERNATIONAL SMALL-CAP STOCKS WITHIN A CORE-SATELLITE INVESTMENT STRATEGY
  Author(s): A. Seddik Meziani
  

ASSESSING THE BENEFITS OF U.S. MICRO-CAP HOLDINGS AND INTERNATIONAL SMALL-CAP STOCKS WITHIN A CORE-SATELLITE INVESTMENT STRATEGY

Author(s): A. Seddik Meziani

This paper analyzes the risk-return properties of a selected set of indices within an overall core-satellite investment strategy. These indices are first separated by market capitalization and geographic location. The small cap segment of the market is divided into small- and micro-cap indices to determine whether the smaller of the small firms are distinct enough to merit a category of their own. The findings associated with this particular market category should be considered as bridging an important void left open by the academic literature as it has showed little interest into this segment of the market due to its relative newness. Second, we rank the study's indices according to their risk adjusted returns, their ability to reduce systematic risk, the diversification benefits they contribute to the portfolio, as well as their potential to generate alpha. Compared to the other indices, the micro-cap and international small-cap categories exhibit the greater potential returns while contribution more effectively to a reduction in systematic risk.

Keywords: Core-Satellite Investment Strategy, Market Capitalization, Micro-Cap, International Small-Cap, Systematic Risk, Alpha, Diversification.



• INTERNET TECHNOLOGY: A SOURCE OF COMMUNICATION, MARKETING, AND REVENUE FOR MINORITY-OWNED BUSINESSES IN THE UNITED STATES
  Author(s): Millicent Lownes-Jackson and Retta Guy
  

INTERNET TECHNOLOGY: A SOURCE OF COMMUNICATION, MARKETING, AND REVENUE FOR MINORITY-OWNED BUSINESSES IN THE UNITED STATES

Author(s): Millicent Lownes-Jackson and Retta Guy

This study conducts a review of Internet usage among minority-owned businesses in the United States. The National Directory of Minority-Owned Business Firms was used to develop a national sampling frame in which 483 businesses were selected to participate in this study. An online survey containing a mixture of Likert scale, multiple-choice, and yes/no questions was deployed on September 30, 2009 thru November 25, 2009. The findings indicate that a large percentage of the minority-owned businesses are using the Internet for economic opportunities which include marketing, advertising, and selling products and services, and disseminating company information.

Keywords: Internet Use, Minority-Owned Business, Brick-and-Mortar Business, Internet-Based Company Website.



• THE INTERACTIVE EFFECTS OF BIG FIVE PERSONALITY AND PERCEIVED ORGANIZATIONAL JUSTICE ON TURNOVER INTENSIONS IN PAKISTAN
  Author(s): Saima Naseer
  

THE INTERACTIVE EFFECTS OF BIG FIVE PERSONALITY AND PERCEIVED ORGANIZATIONAL JUSTICE ON TURNOVER INTENSIONS IN PAKISTAN

Author(s): Saima Naseer

The basic premise of this research paper is to examine the moderating effects of Big Five personality between perceived organizational justice and Turnover Intensions in the Pakistani context. Specifically, it is proposed that High Extraversion, Agreeableness, Conscientiousness and Openness to experience whereas low Neuroticism was hypothesized to be strongly moderating the effects of justice on turnover intensions. Data was collected from 250 employees by administering self-reported questionnaires in various organizations of Pakistan. The results of the moderation regression analysis reveal support for many hypotheses suggesting that the Big Five interacted with the three justice types to predict turnover intensions.

Keywords: Distributive, Procedural, Interactional Justice, Big Five Personality, Turnover Intensions.



• THE INTERPRETATION OF "IN CONTEXT" VERBAL PROBABILITY EXPRESSIONS USED IN INTERNATIONAL ACCOUNTING STANDARDS: A COMPARISON OF STUDENTS STUDYING AT UNITED KINGDOM UNIVERSITIES BY DEMOGRAPHIC FACTORS
  Author(s): Safrul Izani Mohd Salleh, John C. Gardner, Zunaidah SulonG and Carl B. McGowan Jr.
  

THE INTERPRETATION OF "IN CONTEXT" VERBAL PROBABILITY EXPRESSIONS USED IN INTERNATIONAL ACCOUNTING STANDARDS: A COMPARISON OF STUDENTS STUDYING AT UNITED KINGDOM UNIVERSITIES BY DEMOGRAPHIC FACTORS

Author(s): Safrul Izani Mohd Salleh, John C. Gardner, Zunaidah SulonG and Carl B. McGowan Jr.

This study examines the differences in the interpretation of ten "in context" verbal probability expressions used in international accounting standards by the demographic factors of individual students studying at United Kingdom universities. The study assesses the degree of consensus of students on the numerical interpretation of the probability expressions. The study found that demographic factors impact the students' interpretation of "in context" verbal probability expressions. Significant factors including, year of study, applicability of IASs to modules, preferred professional qualification, and gender were all found to help explain the differences in interpretations of the verbal probability expressions.

Keywords: IASs; "In Context" Verbal Probability; Numerical Interpretation; Demographic Factors; Accounting Students.