October 2008


Abstract

E-government or electronic government were defined as web-based service to the delivery of national or local government information and services through the internet or any digital means to citizens or businesses or other governmental agencies. Recently, The underlying goal of e-government is to integrate all government agencies to create a “digital nervous system” where communication and the exchange of information take place at very high speed, facilitates relevant government information in electronic form to the citizen, create better service delivery, empowering people through openness access to information without bureaucracy, improved productivity and cost savings in doing business with suppliers and customers of government; and participation in public policy decision-making.

Idea

Internet or Web application for supporting government mission is being widely used nowadays and having important implication to ensure success of interaction between government agency and outside constituencies. The outside constituencies could be citizen, businesses, or other governmental agencies itself. To perform all the activities efficiently and effectively, government should implement information and internet technology in the good manner. As the internet users is growth significantly in every region (more than 60% /year according to internetworldstat  source), then the used of internet application will have important effect to promote good governance.

According to Sheridan and Riley (2006), e-government have different focus with e-governance, where the e-government more emphasizes to the development and usage of online service while e-governance mostly dealing with application of ICT’s in general.

The future and development of internet application to support e-government goals (networking with constituencies and stakeholder outside of organization) can be described as follow:

1.       G2C (government to citizen)

Activities where the government provides one stop, on-line access to information and services to citizens that would enable citizen to get information, pay taxes, renew driver license, pay traffic ticket, change address, and watching traffic situation, etc. Government may provide downloadable form online, provide tourism and recreation information, provide advice about health and safety issues.

 

2.       G2B (government to business)

Government deals with business that used internet and other’s ICT’s tools. It is includes two way interaction and transactions: government to business (G2B) and business to government (B2G). B2G refers to businesses selling product and services to government                                                                while G2B such as

E-procurement and tendering.

3.       G2G (government to government)

It deals with creating network between different government organization or agencies                in order to be more efficient and effective in their operations, such as interlink network to bridge the information between different units in  agency.

4.       Government to constituents (E-democracy)

It is refers to online activities of governments, elected representatives, political parties and citizen for democratic process. Nowadays, most of political member have their own information websites and portals and using email to text the message to potential voters.

 

Paper output

I’m still thinking how it gonna be, probably by emphasizing more on the importance of internet application to support government mission through e-government policy in order to link with external constituencies regarding information. Moreover, probably i could get to identify the risk of internet application to e-government which i hope can give more inside for future better development of ICT in general.

well, how is ur idea friends?

 

 

 

 

 

 

References;

Rexed, Knut. “The strategic importance of e-government to good governance”. OECD research paper.

Cordella, Antonio.” E-government: towards the e-bureaucratic form?”. Journal of Information Technology. 2007.

 

Webber, Allan. “From E-Gov to I-Govt. What next for the leading edge government in the digital edge”. Forrester research publication. 2006

Shailendra , Jain Palvia, , Sushil S. Sharma. “E-Government and E-Governance: Definitions/Domain Framework and Status around the World”.  International conference on e-governance proceeding. Hiderabad , India, 2007.

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what do you think?

The paper was discussing about whether capital asset pricing model (CAPM) is the best way to predict cost of equity for lodging analysis and finding how another methods can be improved to in order to provide more reliable way in estimating cost of equity.  The result revealed that Price-forward- earnings (PFE) methods with implied cost of equity (ICE) approach is better estimating the result and having reliable result compared to CAPM.

The question that were raised is whether implied cost of equity (ICE) is belong to unsystematic risk or not, since there are two big classification of risk, which is systematic risk (Relates to the variability in the returns due to interest rate changes, inflationary changes, recessions and natural disaster, etc) and unsystematic risk (Relates to the variability in the returns from loss of a key manager, patents, strikes).  

Since the central principal of the CAPM is that systematic risk, as measured by beta, is the only factor affecting the level of return, so I assumed the author considered not only systematic risk, as they mentioned based on their literature studies on Botosan (1997); that revealed there are another factor that influence expected return, therefore Botosan used implied cost of equity (ICE).  It makes me concluded that PFE is belongs to unsystematic risk.

CAPM formula:

ERj = Rf + bj (ERm – Rf)

ERj   = the rate of return that investors require on security j

Rf     = the return on a risk-free asset

bj      = expected return on the overall market

ERm = the Beta coefficient for security j          

So, base on above formula, it is obviously mentioned that CAPM consider beta which is symbol for systematic risk

Another reason that explained during the discussion was the effectiveness of new method implemented in. As CAPM is  device for explaining how markets price capital assets and also explain how an efficient capital market sets a price on individual securities by taking into account their respective risks and the expected returns from holding them, but still the result from CAPM still considered not really significant. Therefore the author developed price to forward earning to make it more reliable.

 

 

 

 

 

 

 

                                               

Picture. Security market line

According to presenter, PFE methods can make the result more close to the security market line compare to CAPM result. This  were cited from the paper’s result.

Moreover, another question was whether price to forward earning (PFE) method also suitable for private companies instead of lodging industries. The presenter said it does be implemented in another industry, but they didn’t mention further. According to the literature, cost of equity can be estimated by using another method also, such as weighted –average cost of capital (WACC). The company’s WACC will be the discount rate that will be used to discount the expected future cash flows from their investments.

My comment is it was too complicated to use many methods in estimating cost of equity. The author mentioned 6 level of methods and all of them having different result. I was wondering if such particular methods were used to non-lodging industry, were it be produce different result also? Let say, the PFE is the best methods to estimate cost of equity for lodging industry, but were the result would be the same if I use non-lodging industry, and PFE is still considered as the best methods also?  

Topic : The effect of cash flow and size on the investment decisions of ICT firms : a dynamic approach

The paper was discussing about sensitivity of firm investment to set their financial investment using flexible adjustment dynamic model. Author set up  the method by examining the degree to which firm’s liquidity  influences firm investment and also investigated whether  firm size and firm specialization having additional effects to firm investment. The result show that all the firm having sensitivity to the availability of internal funds, investment intensity will decrease along with firm size and leverage having negative effect on ICT firm’s investment.

 

The paper entitled “ being emotional during decision making- Good or Bad? An empirical investigation”, written by dennis page, Myeong-Seo and Lisa Feldman Barret were investigated the role of emotions in stock trading via simulation involving 101 traders recruited from investment clubs and paid $100 to $1000 based on performance during simulation. They conclude that:

  1. traders who experience more intense emotions while trading tend to outperform
  2. traders who keep their emotions from affecting trading decision tend to outperform.
  3. Traders who are better able to identify the intensity of their current negative emotions tend to outperform based on superior ability to control the possible biases induced by these emotions. Those are less able to identify their specific feeling at the moment decision underperform due to the influence of emotions they ignore or do not understand

During the discussion there several question were asked such as the influence of another factor instead of internal factor coming from the traders.

I also post the question about how we can prevent from being knocked off track by our negative emotions during trading. I found the answer that we should try to enhance of our degree of self conscious, we should try to make choices not only based on what the stock market telling us and what other people were doing, but also we have to put big attention on basis of rules that we are putting in advance.

Another question were should we discard our first impulses altogether since I assume in every starting of transaction we will be influenced by a lot of factor that might be come together in the same time, for instance we look for something we like and then we want to buy it and in the same time other people didn’t like it and they sell it. It means we have to involve our emotions to make our decision in the same time to face with external factor that have high possibilities to influence our decision. I conclude that we have to make policy and try to limit and under control of our self therefore it will help to decide right decision.