Interaction between financial risk management and value of the firm among private equity firms in frontier markets : a theoretical perspective

Purpose: The study attempts to establish a theoretical basis for the interaction between financial risk management and value of the firm among private capital firms. Design and Methodology: The study was based on a theoretical review of the interaction between financial risk management and value of the firm focusing on the applicability of agency theory, trade-off theory and credit metrics model in anchoring capital management risk, liquidity risk and credit risk Findings: The study shows that although private equity firms are not publicly listed, they face financial risks associated with defaults on loans advanced, volatility of interest rates, liquidity management and capital management. The agency theory explains the role of capital management risk and liquidity risk by incurring agency costs to deter the management from engaging in activities hindering achievement of wealth maximization goal. Similarly, companies balance between threat of bankruptcy and tax benefits of debt by finding an understanding between the advantages and the disadvantages that come with debt as outlined in the trade-off theory while credit metrics model help firms to quantify credit risk on loans, fixed income instruments, commercial contracts. Practical Implications: Private equity firms must constantly be engaged in risk mitigation activities by extensively evaluating their financial, legal and business environments. The management of private equity companies must also always try to balance between the threat of bankruptcy and the tax benefits of debt in the formulation of capital structure by finding a compromise between the benefits and costs of raising debt. The management should also carefully consider credit risks during the credit appraisal and credit awarding process by using appropriate credit appraisal models such as credit metrics model. The Significance of the Study: The conclusions reached in this study significantly impacts the perspective of the management with regard to risk management particularly in the banking sector which is predominantly adversely affected by credit risk, liquidity risk and capital management risks. Consequently the management would be in a better position to manage their risks using appropriate models and improve organizational efficiency and performance.peer-reviewe

Striga parasitizes transgenic hairy roots of Zea mays and provides a tool for studying plant-plant interactions

Background Striga species are noxious root hemi-parasitic weeds that debilitate cereal production in sub-Saharan Africa (SSA). Control options for Striga are limited and developing Striga resistant crop germplasm is regarded as the best and most sustainable control measure. Efforts to improve germplasm for Striga resistance by a non-Genetic Modification (GM) approach, for example by exploiting natural resistance, or by a GM approach are constrained by limited information on the biological processes underpinning host-parasite associations. Additionaly, a GM approach is stymied by lack of availability of candidate resistance genes for introduction into hosts and robust transformation methods to validate gene functions. Indeed, a majority of Striga hosts, the world’s most cultivated cereals, are recalcitrant to genetic transformation. In maize, the existing protocols for transformation and regeneration are tedious, lengthy, and highly genotype-specific with low efficiency of transformation. Results We used Agrobacterium rhizogenes strain K599 carrying a reporter gene construct, Green Fluorescent Protein (GFP), to generate transgenic composite maize plants that were challenged with the parasitic plant Striga hermonthica. Eighty five percent of maize plants produced transgenic hairy roots expressing GFP. Consistent with most hairy roots produced in other species, transformed maize roots exhibited a hairy root phenotype, the hallmark of A. rhizogenes mediated transformation. Transgenic hairy roots resulting from A. rhizogenes transformation were readily infected by S. hermonthica. There were no significant differences in the number and size of S. hermonthica individuals recovered from either transgenic or wild type roots. Conclusions This rapid, high throughput, transformation technique will advance our understanding of gene function in parasitic plant-host interactions

A practical guide for collecting farmers socio-economic and agronomic data: an AfSIS Project field protocol

One of the aims of the AfSIS (Africa Soil Information Service) project is to document farmers’ characteristics and practices to determine their ability to engage in effective soil and crop management. This document outlines how agronomic surveys are integrated with knowledge of farmers’ condition, wealth, status, access to knowledge, and access to markets, using pre-designed questionnaires and field surveys, and including the use of Global Positioning System-based field surveys and Geographic Information Systems

The impact of non-tariff barriers on maize and beef trade in East Africa

On March 2, 2004, the East African Community (EAC) member states signed the protocol for the establishment of the East African Community Customs Union, which commits them, among others, to eliminate non-tariff barriers (NTBs) to increase intraregional trade. However, several NTBs are still applied by member states, raising concerns among policy makers and the business community. There is, however, no information about the magnitude of the impact of these NTBs. This study identifies the existing NTBs on maize and beef trade in East Africa and quantifies their impact on trade and the welfare of EAC citizens using a Spatial Equilibrium Model (SEM). Data on NTBs were collected from traders and transporters of maize and beef cattle in East Africa. In addition, the study found that the main types of NTBs within the three founding members of the EAC (Kenya, Tanzania and Uganda) are similar. They include administrative requirements (mainly licenses, municipal and council permits), taxes/duties (mainly excise and cess duty), roadblocks, customs barriers, weighbridges, licensing, corruption (e.g., through bribes) and transiting. The results of the welfare analysis vary across the three countries, but the net monetary gains are positive in all cases. A complete abolishment or a reduction of the existing NTBs in maize and beef trade increases intra-EAC maize and beef trade flows, with Kenya importing more maize from both Uganda and Tanzania, while Uganda’s beef exports to Kenya and Tanzania increase. As a result, positive net welfare gains are attained for the entire EAC maize and beef sub-sectors. In all cases, those who gain from the proposed reductions in NTBs can potentially compensate the losers, leading to potential improvements in welfare. These findings give compelling evidence in support of the elimination of NTBs within the EAC customs union. The study recommends taking a regional approach to eliminating the existing NTBs since they are similar across the member countries and across commodities so as to exploit economies of scale. Other policy recommendations include streamlining of administrative procedures at border points to improve efficiency, and speeding up the implementation of procedures at point of origin and at the border points. Finally, the study recommends the need to design and implement monitoring systems to provide feedback to the relevant authorities on the implementation of measures to remove unnecessary barriers to trade within the EAC region

Ocular rhinosporidiosis mimicking conjunctival squamous papilloma in Kenya - a case report.

BACKGROUND: Ocular rhinosporidiosis is a chronic granulomatous infection caused by a newly classified organism that is neither a fungus nor bacterium. It often presents as a benign conjunctival tumour but may mimic other ocular conditions. It is most often described in India. In Africa cases have been reported from South Africa, Kenya, Tanzania, Malawi, Uganda, Congo and Ivory Coast. CASE PRESENTATION: A 54 year old man was seen in Kenya with a lesion that resembled a conjunctival papilloma. We report resemblance to conjunctival papilloma and the result of vital staining with 0.05% Toluidine Blue. CONCLUSION: Ocular rhinosporidiosis occurs in East Africa. It may resemble conjunctival squamous papilloma. Vital staining with 0.05% Toluidine blue dye did not distinguish the two lesions well

A Critical Evaluation of the Textbook Programme in Public Primary Schools and Implications for Laptop Classrooms in Kenya

Social development gravitates around the quality of learning experiences and skills acquired in the school. The utilization of effective teaching and learning strategies as well as the integration of technology are key drivers of Kenya’s Vision 2030 and social transformation. Importantly teaching and learning resources such as textbooks are essential but perhaps insufficient to facilitate learning. This paper reports the findings of an evaluation study of the textbook programme in a selected rural district in Kenya and analyses the implication for laptop classrooms within the Kenyan context. Keywords: Instructional effectiveness; textbook programme; public primary schools; learning achievement; laptop classroom

Predictors of failed attendances in a multi-specialty outpatient centre using electronic databases.

BACKGROUND: Failure to keep outpatient medical appointments results in inefficiencies and costs. The objective of this study is to show the factors in an existing electronic database that affect failed appointments and to develop a predictive probability model to increase the effectiveness of interventions. METHODS: A retrospective study was conducted on outpatient clinic attendances at Tan Tock Seng Hospital, Singapore from 2000 to 2004. 22864 patients were randomly sampled for analysis. The outcome measure was failed outpatient appointments according to each patient's latest appointment. RESULTS: Failures comprised of 21% of all appointments and 39% when using the patients' latest appointment. Using odds ratios from the mutliple logistic regression analysis, age group (0.75 to 0.84 for groups above 40 years compared to below 20 years), race (1.48 for Malays, 1.61 for Indians compared to Chinese), days from scheduling to appointment (2.38 for more than 21 days compared to less than 7 days), previous failed appointments (1.79 for more than 60% failures and 4.38 for no previous appointments, compared with less than 20% failures), provision of cell phone number (0.10 for providing numbers compared to otherwise) and distance from hospital (1.14 for more than 14 km compared to less than 6 km) were significantly associated with failed appointments. The predicted probability model's diagnostic accuracy to predict failures is more than 80%. CONCLUSION: A few key variables have shown to adequately account for and predict failed appointments using existing electronic databases. These can be used to develop integrative technological solutions in the outpatient clinic