A good and efficient road network forms the primary infrastructure that propels the development process in a country. There has been a rapid increase in the demand for highway infrastructure in India as freight traffic increased 180 times and passenger traffic increased 132 times between 1951 and 2000, whereas the total length of the road has just gone up by 8 times for the same period. Further to this, with the conventional way of depending on Government fiscal budgets for development of highway infrastructure having become impractical, Private Sector Participation (PSP) is the only effective solution to meet the rising infrastructure demands. Private sector participation in highway infrastructure projects in India has been observed presently under two major formats: BOT – Toll based and BOT – Annuity based models. BOT – Toll based model has been seen to be a failure in terms of expected returns to the concessionaire whereas the relatively newer Annuity model has been found to be attractive to the private sector. However, there exists an ambiguity whith respect to their suitability in a given case and in decision‐making. Using System Dynamics approach a framework is developed that would enable the decision maker to decide particular type of prievate sector participation (PSP) m odel for a given highway project. It is observed that the concessionaire’s desired rate of return and the traffic growth projections are the key parameters in selection of PSP model.

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Capital structure decisions (CSDs) have become complicated in this exceeding competitive business environment. Theories and models of 1950s are unable to incorporate the demands faced by the decision maker. New models are needed to incorporate multiple objectives and constraints. Stakeholders are awfully demanding. Practitioners attempt to innovatively build the capital structures to meet the needs of all stakeholders. Off and on balance sheet exposure contributes to financial commitments. In the light of this background, the present study investigates the Indian corporates for their capital structure choices and builds a goal programming model for CSDs. Capital structure practices in India are studied through a sample of top 500 companies classified in 19 industries over 10 year period (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007). Accounting ratios (67) are used to define the multiple considerations before a decision maker. The study has also explored the relationship of leverage ratio with market capitalization and earnings per share (EPS). Using a questionnaire approach, the premise of multiple objectives for CSD is evaluated. Chief financial officers (CFOs) as respondents are investigated for their goals, priorities, motivations, constraints, and capital structure practices. The study has attempted to develop a goal programming (GP) model for providing satisficing solutions to multiple goals simultaneously by minimizing the deviation from the objective function after assuming that the decision maker is an optimist and does not attempt to satisfy all objectives fully. GP model has been developed and illustrated for CSDs through agriculture-based firm having multiple objectives that are proxied using accounting variables. Downloaded from Variables Abbreviations Capital earnings in forex CEFX Capital expenses in forex CEXFX Book value (unit currency) BV Market capitalization MC Cash earnings per share (annualized; unit currency) CEPS Earnings per share (annualized; unit currency) EPS Dividend (annualized %) DIV Payout (%) PO Cash flow from operating activities CFFO Cash flow from investing activities CFFI Cash flow from financing activities CFFF ROG-net worth (%) ROGNET ROG-capital employed (%) ROGCE ROG-gross block (%) ROGGB ROG-gross sales (%) ROGGS ROG-net sales (%)ROGNS ROG-cost of production (%) ROGCOP ROG-total assets (%) ROGTA ROG-profit before interest, depreciation, and taxes (%) ROGPBIDT ROG-profit before depreciation and taxes (%) ROGPBDT ROG-profit before interest and taxes (%) ROGPBIT ROG-profit before taxes (%) ROGPBT ROG-profit after tax (%) ROGPAT ROG-cash profit (%) ROGCP ROG-revenue earnings in forex (%) ROGREFX ROG-revenue expenses in forex (%) ROGREXFX ROG-market capitalization (%)

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