Dr. S. Senthilnathan | International Training Institute (original) (raw)

Papers by Dr. S. Senthilnathan

Social Science Research Network (SSRN), 2022

Dynamic Programming (DP) is a useful but complex process of solving a management-related optimisa... more Dynamic Programming (DP) is a useful but complex process of solving a management-related optimisation problem. Because of the complexity, especially in the Varying Input-Output Model (VIOM), many are very reluctant to teach and learn this topic, even at the tertiary education level. One of the main difficulties that existed in the VIOM is the determination of the minimum and maximum of the stages identified in a DP problem. Hence, considering the VIOM, this paper mainly aims to facilitate the determination of two aspects: (a) Determining the minimum and maximum output of a stage; and (b) Determining the potential initial independent inputs in a stage, provided the minimums and maximums of the stages concerned-particularly using the results of (a) underlined. Indicatively, this paper also suggests a conditional requirement to determine the initial potential independent input [for (b) above] at the current stage. This is highlighted as an extension and initiative effort of this paper in DP applications that are comparatively and rarely available in DP explanations in textbooks in particular. The paper strongly believes that the above is one of the major contributions in the literature and DP application that can support devising the algorithm for solving a basic VIOM problem in DP. The significance of this paper can also be valued to that extent. By presenting these conceptual formulations, this paper prefers to term it "Samsen Method of Preliminary Work" to solve a basic DP optimisation problem.

Social Science Research Network (SSRN), 2022

Dynamic Programming (DP) is a process of deriving an optimal solution to a mathematical problem t... more Dynamic Programming (DP) is a process of deriving an optimal solution to a mathematical problem that has an objective function and environmentally varying limitations. DP has some difficulties to set up structural equations as in other management science techniques. In this context, DP generally, at a basic level, deals with two types of problem-based models: (a) Route Determination Model (RDM) and (b) Varying Input-Output Model (VIOM). In this context, this paper has illustrated only the Route Determination Model (RDM) with a hypothetical exhibit. The solution of such an Exhibit has been derived with two (2) processes: (a) Forward Process and (b) Backward Process. The applications of both processes have been illustrated with stage segmentations of routes and tables to gradually improve the results towards optimality.

SSRN Electronic Journal, 2011

SSRN Electronic Journal, 2009

The Ohlson (1995) equity valuation and returns models are consistent with the mathematical formul... more The Ohlson (1995) equity valuation and returns models are consistent with the mathematical formulation. Since value relevance models that relate to Ohlson (1995) focus on information dynamics of accounting and other information for explaining equity value, an inconsistency between Ohlson’s (1995) simplified model for valuation and re-formulation of returns related model is observed where one model makes the other incomplete for information dynamics of variables in models, though mathematical formulations confirm the relationship of those models. Hence, the information dynamics of these mathematically formulated models make questioning whether Ohlson’s (1995) explanation is an example of the “Simpson’s paradox”.

For investing in profitable ventures, the firms intend to recover the investment made in them. Th... more For investing in profitable ventures, the firms intend to recover the investment made in them. Thus, the determination of the respective cost of capital of a venture can provide a base for making decisions on whether to accept the project profitably. In this context, this paper provides some basic explanations to facilitate the learners of the cost of capital with appropriate exhibits for their easy understanding. This paper primarily attempts to explain and illustrate how the determination of the cost of capital for the investment of equity and debt capitals can be made. Relatively, the use of dividend-price and earnings-price measures, Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), Weighted Marginal Cost of Capital (WMCC), and breaking points of financing sources are also explained meaningfully. Further, in determining the optimum capital budget considering various projects, the use of the investment opportunity curve (IOC) and WMCC is also explained and illustrated. Finally, some of the major problems in determining the cost of capital are presented in brief.

This MS Excel Workbook primarily attempts to provide the methods and exercises of determining the... more This MS Excel Workbook primarily attempts to provide the methods and exercises of determining the cost of capital for the investment of equity and debt capitals to be made. Relatively, the use of dividend–price and earnings–price measures, Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), Weighted Marginal Cost of Capital (WMCC), and breaking points of financing sources are also modelled with examples meaningfully. Further, in determining the optimum capital budget considering various projects, the use of the investment opportunity curve (IOC) and WMCC is also illustrated with examples.

SSRN Electronic Journal

This paper provides contextual explanations on the related aspects of Working Capital (WC) manage... more This paper provides contextual explanations on the related aspects of Working Capital (WC) management. The objective of the paper is to illustrate related variables and cash management models in the WC management, especially from an accounting learning point of view. Initially, WC has been defined; and subsequently, WC policy and determination, some useful related ratios, liquidity management in relation to operating cycle and cash conversion cycle of a business, and optimal cash balance and cash management models are explained. All these contextual explanations are supported with some specific examples as exhibits at the end of this paper, especially with the determination of the WC requirement on a cash-cost basis as an operational approach. Further, the use of simple economic order quantity (EOQ) model for determining the required outflow of cash to buy initial production material in a continuous production process has also been explained.

SSRN Electronic Journal

This paper highlights the variables and their relationships in a social science framework, since ... more This paper highlights the variables and their relationships in a social science framework, since most of the social science studies focus on investigating relations and causal impacts between/among the variables. As a main focus, this paper illustrates identification of variables in direct causal relationship, indirect causal relationship (refers to moderating variable), and direct and indirect causal relationship (refers to mediating variable) with their relative identical linear models and hypotheses to be investigated. Further, this paper emphasizes that a social science study should consider alternative hypothesis as the direction of its investigation.

In an equilibrium, quantity demanded equals quantity supplied at a particular price for the produ... more In an equilibrium, quantity demanded equals quantity supplied at a particular price for the product. When the tax is imposed by the government in the market, it is obvious that the tax imposed has an impact on the equilibrium and tends to establish a new equilibrium with changes in price and quantity. This explanation provides a basis of how the slopes of the simple (straight linear) demand and supply curves can be used to determine the new equilibrium price, in particular. Simple linear equations of the demand and supply curves are the limitation of this paper.

This paper demonstrates that using share returns as the dependent variable is a preferable approa... more This paper demonstrates that using share returns as the dependent variable is a preferable approach for testing value relevance of accounting information to overcome spurious regression results due to equity prices following a non-stationary, persistent process as indicated in Senthilnathan (2009). In this context, this study utilizes the Ohlson (1995) model to examine whether the level or the presence of positive goodwill amortisation helps to explain subsequent returns, where prior year goodwill amortisation and its positive presence are considered for their forward looking earnings related information. The results indicate the irrelevance of the level of prior year goodwill amortisation for explaining monthly returns. The presence of positive goodwill amortisation does, however, have a positive significant relationship with monthly returns. This implies that investors might consider the presence of positive goodwill amortisation as representing a wealth creating element in firms, since goodwill amortisation is a non-cash accounting item that results from acquisition activity, and the intended purpose of the acquisition activity would presumably be to create wealth. The results indicate that firms with positive goodwill amortisation provide higher returns.

Ssrn Electronic Journal, Mar 5, 2013

This study considers that in Sri Lanka share market, the accounting variables would significantly... more This study considers that in Sri Lanka share market, the accounting variables would significantly explain the contemporaneous price, provided that Ohlson (1995) model implicate market efficiency. The study also attempts to explore the benchmarking role of net assets in assessing the value relevance of earnings and dividends. The results indicate positive significant relevance of net assets, earnings and dividends for explaining the price, independently. Pooled and fixed-year effect results of the model imply incremental relevance of accounting variables. However, this is not consistent with year-wise analysis, thus implying that Sri Lankan share market might be of weak-form efficiency. The findings are repeatedly confirmed with the fixed-sector results, which are almost similar to fixed-year effect results. The benchmarking role of net assets in exploring the incremental relevance of earnings becomes meaningful only with the pooled analysis. Differently, the relevance of dividends is explored with the proxy role for future earnings, beyond current earnings.ABSTRACT

International Journal of Innovative Research and Practices, 2013

ABSTRACT The concept of elasticity in economics is taught mostly in secondary education. Student... more ABSTRACT
The concept of elasticity in economics is taught mostly in secondary education. Students generally mix up the slope and elasticity even though many textbooks explain the difference between them. This note is to substantiate explanations by Round and McIver (2006) in view of exploring possible reasons why students might have confused elasticity and slope from initial knowledge of elasticity. This note indicates some misunderstandings that arise from elasticity illustrations and also provides possible and alternative ways of understanding elasticity. As indicated by Round and McIver (2006), precise use of terms in textbooks is necessary to understand the difference between the elasticity and slope of a demand curve in third-degree price discrimination, given the assumptions in which the theory has been established in relation to elasticity.

International Journal of Innovative Research and Practices, 2013

Relevance of earnings for explaining equity prices is investigated by many value relevance studie... more Relevance of earnings for explaining equity prices is investigated by many value relevance studies. This study investigates whether fiscal year-end earnings as a proxy for next period’s earnings have additional information, beyond the information incorporated in contemporaneous equity price, for explaining the next fiscal period’s end equity price. Results show that earnings have statistically significant additional information for explaining the next fiscal year-end equity price, even though the explanatory power of earnings is very low as not considerably supported for model utility. As Ohlson (1995) explores informativeness of fiscal year-end earnings as a proxy for next period’s earnings, two alternative models are suggested, where the next fiscal year-end equity price and price change are considered as the dependent variable and fiscal year-end (current) equity price is accommodated as an additional explanatory variable. However, using stationary price change as the dependent variable would be much useful in value relevance studies for econometric reasons. In this context, fiscal year-end equity price provides a benchmark to assess additional informativeness of earnings and facilitate the estimated coefficients of earnings to capture and represent the information incorporated in the earnings data.

The IUP Journal of Marketing Management, 2012

This study empirically examines the relationship between Brand Equity (BE) as the independent var... more This study empirically examines the relationship between Brand Equity (BE) as the independent variable and Purchase Intention (PI) as the dependent variable in relation to branded baby soaps selectively. While both the variables individually have high-level attributes of the customers, Pearson’s correlation analysis explores a positively significant linear relationship between BE and PI. This implies that the PI of a customer for purchasing branded baby soap can be predicted by the customer’s nature of BE. The correlation coefficient between the BE and PI indicates that the BE of a customer is useful to explain the variation in PI of a customer. Further analysis of the regression model with intercept indicates that it needs additional suitable variables to predict the unexplained variation of 68% of the PI. However, the model without intercept indicates that BE alone can predict the PI by explaining its more than 99% variation.

SSRN Electronic Journal, 2000

The main objective of this paper is to provide an introduction to the Network, particularly in r... more The main objective of this paper is to provide an introduction to the Network,
particularly in relation to the basic aspects of drawing a network diagram. This
paper provides insights about drawing a network diagram. In addition, it is also
useful to know and understand the birth and meaning of network analysis, its
importance, applications, limitations, rules and traditions in drawing a network
diagram, and the terminologies used in relation to the network.

This paper is organized with Introduction, Network Analysis – Definition,
Applications of Network Analysis, Advantages and limitations of Network Analysis,
Terminologies of Network Analysis, Rules for Drawing a Network, and Traditions
of Drawing Network Diagram, together with examples, self-review questions and
terminology.

SSRN Electronic Journal, 2000

This paper reviews the main contributions of organisational innovation in the literature toward b... more This paper reviews the main contributions of organisational innovation in the literature toward bringing a sustainable organisation and development. The review basically illustrates four main interrelated concepts: organisational innovation, organisational performance, sustainable organisation and sustainable development, with their relationships among them. This paper also demonstrates that based on social, economical and environmental performance, the relationship between organisational innovation and organisational sustainability involves some important aspects concerning organisational innovation and its diverse components and outcomes; and the integration of every organisational innovation with the triple bottom line approach leads to develop a sustainable organisational innovation framework. This review also suggests that an organisation must transform its organizational innovation into a sustainable state (known as sustain-centric-innovation) to reflect the sustainable organisational performance that will help it become a sustainable organisation and then finally lead to achieving its sustainable development. Using the framework established from the existing literature, this paper recommends how diverse empirical studies can model and investigate the relationships among the variables: organisational innovation, sustainable organisation and sustainable development.

SSRN Electronic Journal, 2015

This paper considers Blasco-Fontecilla et al. (2013) and the reasons causing suicides and shows a... more This paper considers Blasco-Fontecilla et al. (2013) and the reasons causing suicides and shows a hypothetical framework for a person’s induced suicidal behaviour. This paper argues that it is society’s responsibility to provide sufficient information and solution to protect against suicidal attempts, due to the existing structural networks and arrangements with multiple and complex socio, economic, cultural, technological and political aspects. Hence, this study suggests that the social elements should have an encouraging commitment for a change to bring down the problem of suicides, since the society’s existing structure with its social facts sometimes and/or unfairly fails to prevent suicides. In this context, this paper suspiciously questions “whether a suicide is a killing by a society?”. To substantiate this question, it is indicated the intoxication of a society with many lethargic social processes, and how a person’s genuine act of being a good citizen in the society/nation becomes suspicious as punishable and nullified.

SSRN Electronic Journal, 2013

The study mainly focuses on assessing (a) the level of job satisfaction and (b) whether the group... more The study mainly focuses on assessing (a) the level of job satisfaction and (b) whether the groups of a demographic factor have a mean difference between them. The main objective of this study is to provide a basic idea of using the T-test and ANOVA test. However, the survey results show that overall job satisfaction is at a high level of attribute and little diluted with the working environment. However, the results also show that demographic variables age and qualification have no mean differences between the groups of each of them, except the gender, which implies that there is significant gender-based difference in job satisfaction of teachers in the Eastern University, Sri Lanka.

SSRN Electronic Journal, 2014

Social Science Research Network, 2021

The cash flow estimation is important to evaluate projects in view of adding values to the owners... more The cash flow estimation is important to evaluate projects in view of adding values to the owners' equity of a firm. Cash flow estimation is a primary requirement for capital budgeting and using project evaluation techniques. Hence, this paper provides cash flow estimation methods from an accounting perspective to facilitate a reader understand the basics and bases of cash flows estimation with suitable exhibits from an accounting point of view. This paper provides explanations on basic principles of project cash flow estimation, the meaning of incremental cash flow, a trade-off between the equity and debt capitals used in projects, the reason for excluding the cost of financing a project, tax concern, opportunity cost consideration, and the process and methods of estimating cash flows.

Social Science Research Network (SSRN), 2022

SSRN Electronic Journal, 2011

SSRN Electronic Journal, 2009

SSRN Electronic Journal

Ssrn Electronic Journal, Mar 5, 2013

International Journal of Innovative Research and Practices, 2013

The IUP Journal of Marketing Management, 2012

SSRN Electronic Journal, 2000

SSRN Electronic Journal, 2015

SSRN Electronic Journal, 2013

SSRN Electronic Journal, 2014

Social Science Research Network, 2021

Publications as at 2022-04-06, 2022

Network Analysis Part 1 An Introductory Note, 2013

The main objective of this paper is to provide an introduction about the Network, particularly in... more The main objective of this paper is to provide an introduction about the Network, particularly in relation to the basic aspects of drawing a network diagram. This paper provides insights about drawing a network diagram. In addition, it is also useful to know and understand the birth and meaning of a network analysis, its importance, applications, limitations, rules and traditions in drawing a network diagram, and the terminologies used in the network.

This presentation is organized with an Introduction, Network Analysis – Definition, Applications of Network Analysis, Advantages and limitations of Network Analysis, Terminologies of Network Analysis, Rules for Drawing a Network, and Traditions of Drawing Network Diagram, together with examples, self-review questions and terminology.

This paper provides some special cases that need to be addressed in using transportation techniqu... more This paper provides some special cases that need to be addressed in using transportation technique for a possible and quick improvement towards optimal solution. The paper deals with three special cases in particular. The first is no allocation to a particular cell (destination) in a transportation table and other two cases are related to loop formation with penalty cost and stones to improve the existing feasible solution.

This paper explores how the basic (initial) allocations should be made out in transportation tabl... more This paper explores how the basic (initial) allocations should be made out in transportation tables to facilitate in obtaining optimum solution as consistent with solution condition. There are seven (7) initial allocation methods and they are explained with row-wise allocation, column-wise allocation, matrix-based allocation, northwest corner rule, southwest corner rule, Vogel's approximation method (VAM) and arbitrary allocation.

This paper provides a basic idea of how transportation technique is useful to firms in arranging ... more This paper provides a basic idea of how transportation technique is useful to firms in arranging transportation network. The paper consists of basic assumptions, general mathematical format, demand-supply condition and basic notations of transportation technique. All these are presented with introduction and basic transportation notations in solution tables.

This MS Excel Workbook provides a facilitation to learn the Project Cash Flow Estimates from an A... more This MS Excel Workbook provides a facilitation to learn the Project Cash Flow Estimates from an Accounting Perspective. This workbook provides the basic explanations of cash flow estimates in consideration of project investment, expenses, depreciation, scrap value, and time value of money for project evaluation. In this context, some exhibits are illustrated with an aim of making the learners to practice with their own, but other suitable figures.

Capital Budgeting, 2020

This workbook of Excel is presented for helping the teachers and learners of Capital Budgeting Te... more This workbook of Excel is presented for helping the teachers and learners of Capital Budgeting Techniques (CBTs). Hence, this workbook consists of the basic methodology of learning the project evaluation tools. To make use of this workbook successfully, you are allowed to input your (own) data, you can work out the problem to resolve it and you can compare the outcomes in the worksheet for comparing your workings. However, this workbook has certain limitations, like the number of project years and some possible programming errors to derive the answers.

I have developed this from my available knowledge and skills in the application of MS Excel. I am very much happy, if I have contributed something for the learning and teaching community of the CBTs. This MS Excel workbook is related to:
https://www.academia.edu/45177482/CAPITAL_BUDGETING_THE_TOOLS_FOR_PROJECT_EVALUATION

Please feel free to communicate, if you come across an issue of handling the application.

Good luck and Thank you.

This is a database to maintain the attendance of students and their assessment marks for a partic... more This is a database to maintain the attendance of students and their assessment marks for a particular subject at a tertiary education level. This document is presented for learning purpose of using MS Excel.

Gantt Chart Application in MS Excel for Project Network Analysis, 2020

This is an Excel Application to derive the Gantt Chart of a project to be managed. This is presen... more This is an Excel Application to derive the Gantt Chart of a project to be managed. This is presented for the learning purpose only, NOT for professional application. This has the intention of motivating learners of project management, Network Analysis and Excel users. This application is presented with certain limitations, thus possibly having possible errors in determining the final duration in the Gantt Chart, since a month and a year are considered 30 and 365.25 days, respectively.

Amount in WORDS - An MS Excel Application

Amount in WORDS 2018-07-17b This is an Excel Workbook application designed to convert the Numeric... more Amount in WORDS 2018-07-17b
This is an Excel Workbook application designed to convert the Numerical Figures into WORDS. Especially, it is to word a figure in currency form. There are two ways of indicating the words of currency based figures. You can use one of them as per your requirement.

Only, the YELLOW shaded area can be used to enter the data (Country Code and Amount). The Password to enter the data is: Amount and you may download this file to get your figures into words.

Once you entered your Country Code and Figure, related wordings will appear in the cells D13 and D14 of the Excel sheet. Having your Excel worksheet, if you use equalised programming appropriately within the required fields, then you can get the wordings of the figure in your worksheet. You may write to me, if you have any question.

This is an Excel Workbook application in drafting a common letter for different clients. In this ... more This is an Excel Workbook application in drafting a common letter for different clients. In this book, every new entry with the current date can be set out to get PDF of the letter and printouts accordingly, one by one, while maintaining the database for issued persons. The reference number for the letter will be automatically generated. The Excel programming is made accordingly and this is presented for your knowledge of logical presentation of Excel programming application.

Please give your comments, if you find it worth for your learning in Excel.

A request for having a common document in Excel format, while maintaining the database, can be approached.

Social Science Research Network, 2019

The measure of correlation coefficient (r or R) provides information on closeness of two variable... more The measure of correlation coefficient (r or R) provides information on closeness of two variables. Irrespective of non-linear correlation, this paper mainly considers the linear correlation analysis, as it is most likely applied in social science studies. Explicitly, the purpose of carrying out correlation analysis is almost the same in quantitative analytical studies, thus becoming useful to explore the association between independent and dependent variables. This paper, as an extension, attempts additionally to explain the usefulness of linear correlation coefficient between two variables in the context of identifying the level of multicollinearity and mediating/moderating status of independent variables in a model. This paper also demonstrates how the level of multicollinearity can be explored by using correlation coefficient of two independent variables in a regression model.