Hasil untuk "Capital. Capital investments"

Enkeleda Lulaj

Objective: to examine financial dynamics within the financial zeitgeist, focusing on capital calculation and cost-effectiveness for sustainable investment and operational growth. Methods: data from 200 stakeholders in Kosovar companies (2022–2023) Were analyzed using SPSS and AMOS, with exploratory and confirmatory factor analysis, reliability analysis, and structural equation modeling (SEM) to assess direct and indirect effects among cost and operational efficiency (CaOE), investment dynamics and industrial impact (IDaII), and operational capacity and development (OCaD). Results: CaOE had a positive effect on both IDaII and OCaD, with IDaII also positively impacting OCaD. CaOE’s indirect effect on OCaD via IDaII was significant. Key factors included maintenance costs for CaOE, competitive advantage for IDaII, and technological advancement for OCaD. Conclusions: the model showed excellent fit, confirming the proposed relationships. Firms should integrate investment strategies, operational efficiencies, and development capabilities for sustainable growth.

Halil D. Kaya, Engku N. Engkuchik

The 2008 Global Crisis had profound impacts on economies worldwide, prompting significant scrutiny of various institutional frameworks, including court systems. During this period, legal systems faced unprecedented challenges in addressing the ensuing turmoil. Courts were busy with cases related to foreclosures, bankruptcies, and financial misconduct. Due to the exposed weaknesses in regulatory oversight, reforms were made to improve accountability, transparency, and efficiency within judicial systems. Transition economies in Eastern Europe and Central Asia bore a significant brunt of the crisis and its subsequent reform endeavors. In this study, we evaluate the perspectives of Eastern European and Central Asian retailers on their court systems during and after the 2008 global crisis. We assess how many of them dealt with the legal system during and after the crisis, how quickly the cases moved through the court system, how fair and impartial the court was, and how successfully the court could enforce its rulings. To evaluate the impact of the global crisis on retailers’ views on the court system, we compare the crisis period to the post-crisis period. The World Bank’s BEEPSII and BEEPSIV surveys performed in Eastern Europe and Central Asia are used as our crisis and post-crisis samples. To compare the crisis period responses to the post-crisis ones, we use nonparametric tests (i.e. the Mann-Whitney-Wilcoxon and the Chi-square tests). Our results show that, after the crisis, fewer retailers went to court, when compared to the crisis period. This finding can be seen as positive. We also find that, after the crisis, retailers were more optimistic about judicial impartiality and case processing speed in their respective countries, compared to the crisis period. On the other hand, our results show that retailers’ assessments of the court’s ability to implement its rulings in these countries did not seem to change after the crisis. These findings have important policy implications. Policymakers can use these findings to take precautions before a global crisis hits. They will know that a global economic/financial crisis affects the volume of cases, courts’ fairness, and processing speed. Therefore, they can hire more employees to deal with the upcoming problems with the volume and the processing speed, and they can increase the scrutiny of the system to protect the system’s fairness.

Lin Ling, Hayat Khan, Liu Qianqian et al.

Considerable debate has arisen around the potential effects of increasing the minimum wage on employment. This study aims to analyze the impact of changes in China's minimum wage standard on employment. The research utilises the canonical model method and constructs a regression model based on standard labor economics theory. The analysis is conducted using sample data from Chinese industrial enterprises between 2000 and 2007. Regression analysis is performed by categorizing enterprises based on their level of human capital investment. The findings indicate that minimum wage increases have a non-linear impact on employment, when seen from the standpoint of human capital investment. When the level of human capital investment is low, an increase in the minimum wage standard leads to a decrease in employment; when the level of human capital investment is high, an increase in the minimum wage standard leads to an increase in employment. According to the findings, the reason for this is that, investments in human capital can improve business profitability, increase worker marginal productivity, and increase labor demand. Similarly, the employment effect of a change in the minimum wage is positive in regions with high levels of human capital investment due to the externality effect of human capital. Adjustments to the minimum wage have a negative impact on employment in areas of the country with low levels of human capital investment. This demonstrates that changing the minimum wage does not result in a simple increase or decrease in total employment. The level of investment in human capital within the organization and the region is an important factor in determining the type and magnitude of the impact.

R. Anex, A. Aden, Feroz Kabir Kazi et al.

X. Pages

Y. Dorosh, O. Sakal, R. Kharytonenko et al.

The rationale is provided that to ensure investment attractiveness of land and implement capital investments, it is necessary to conduct a systematic analysis of the current state of land use, taking into account the consequences of the war and priorities for recovery. A review of publications containing research results on the issues of investment attractiveness of land, including agricultural land, has been conducted. The structure of land, water resources, and the agro-industrial complex of the Chornobaivka territorial community in the Zolotonosha district of the Cherkasy region has been analyzed. The structure of the soil cover of the territorial community is provided. Factors influencing the investment attractiveness of the research object have been systematized. These factors include investment objects, geographical location, natural resources, business infrastructure, community budget, land use regulation, and the profitability of agricultural production. To assess the investment attractiveness of land resources, financial analysis, risk analysis, strategic approach, comparative analysis, scenario analysis, ecological and social approach have been applied. Emphasizing that the intensity, duration, and prevalence of armed conflicts, as negative factors, can differently impact the investment attractiveness of an administrative-territorial unit. Considering the proposed approaches to assessing the investment attractiveness of land resources, the following forecasted changes have been taken into account, such as attracting investments, economic development, infrastructure improvement, increased tax revenues, and the impact of armed conflicts. In aggregate, this has allowed determining the level of investment attractiveness of the researched territory. Key words: investments, investment attractiveness, land investments, impact of armed conflicts, agricultural lands, industrial sectors, agricultural enterprises, industry structure, territorial communities, land use, rational land use, anthropogenic load, rural areas, green construction, balanced development, rural territorie.

karami Karami Ardali, Hussein Marzban, Ali Hussain Samadi et al.

Aim and Introduction  The development of financial markets is critical for economic growth. One of the most important financial markets is the capital and stock market, where the prosperity of the stock market and financing through the stock market can develop any country's economy. Capital market development requires the efficient performance of financial intermediaries, including mutual funds. Iran’s economy has always faced the problem of insufficient liquidity and financing for production sectors. As a financial tool, mutual funds can moderate this problem with their existing potential. Therefore, the study aims to investigate the probable effect of mutual funds on economic growth. Methodology In the previous studies that have been done in this field, the descriptive-analytical aspect of the subject has been discussed. But these studies didn't provide an appropriate framework for analyzing the effect of mutual funds on economic growth. For this purpose, in the present study, based on the theoretical literature, a general equilibrium model has been designed, and the output of this model is obtained according to the optimization of different sectors of the economy. Assume a closed economy where mutual funds are investors with information and allocate capital to high-productivity firms. The economy has a single period with two production components, a representative mutual fund, and a representative household.  We assume a high-productivity firm (H) and a low-productivity firm (L) with an equal number of producers. Both firms can obtain funds by issuing new stocks in the primary market. There is one representative mutual fund in the economy that can invest on behalf of the representative household. Therefore, the fund can invest as much as the fund flows (F) received from the household at the beginning of the period. We assume the mutual fund has sufficient access to information and production technology and can detect high-productivity firms. The household seeks to maximize utility, and the proposed utility function consists of only consumption. As utility and consumption are positively related, utility maximization is equivalent to consumption maximization. However, since the present study adopted a single-period economy, consumption equals income. Thus, maximum utility is represented by maximum income.  Initial capital (W) can be directly invested in the primary market or indirectly invested in the secondary market by the mutual fund. This framework is a new aspect and the main contribution of research in this field. The output of the model is estimated using the GMM method for the period 2010:2 to 2020:4. Findings According to Table 5, most coefficients are statistically significant. The first lag of GDP was expectedly found to have a positive, significant impact on the GDP level and, thus, economic growth. Mutual fund investment was observed to have a positive, significant impact on GDP; a 1% rise in fund investment, on average, leads to a 0.473% increase in GDP. This finding is consistent with our theoretical framework. We expect mutual funds’ investments in the primary market, positively impact GDP since mutual funds have an information advantage over individual investors. Thus, they can optimally allocate resources to high-productivity firms (i.e., mutual funds have a higher ability than individual investors to identify high-productivity firms in light of their information advantage). The household wealth coefficient was estimated to be 0.255, suggesting that a 1% increase in the household’s wealth raises GDP by 0.255% on average. This finding is consistent with economic theories. The interaction of wealth and fund investment was estimated to have a coefficient of 0.257, implying a significant relationship. This coefficient was expectedly found to be positive, consistent with modeling. The interaction of fund flows and fund investment significantly affects GDP with a coefficient of -0.174. This coefficient was expectedly found to be negative, consistent with modeling. Fund flows were estimated to have no significant impact on GDP. Although it was found to have the expected sign, it has an insignificant impact on GDP and thus cannot be interpreted. The coefficient of the secondary market return was found to be significant only at a confidence level of 90%. Discussion and Conclusion Overall, mutual funds have a positive impact on GDP. These funds may improve the performance of Iran’s financial markets if they acquire an appropriate position in the financial market. A large number of individual traders have begun to trade on Iran’s stock market without financial knowledge and suffered massive losses in 2020-2021. If the mutual fund sector is active in Iran, in addition to the optimal allocation of resources, it can also help people for investment in the stock market and prevent crises such as 2020-2021. Eventually, the policy recommendation is that policymakers pay more attention to the development of mutual funds in short- and long-term policies. Keywords: Mutual fund, Capital market, Economic growth, Primary market, GMM JEL Classification: G11, G23, G51

Elson dos Santos Gomes Junior

This article presents an analysis of the type of education called Youth and Adults - EJA - from the conceptual perspective of necropolitics. Many works approach the theme from the criticism of the election of killable bodies, among which the black and poor population is often found. These works point to analytical possibilities of reflection about educational policies and educational practices where, in view of this situation, we will point out some questions about the treatment given to EJA and the main consequences for this educational modality and its subjects. The methodology used is of a bibliographic qualitative nature and included studies on the subject and also the analysis of some data that address the general framework of youth and adult education. As a result, we can see that, despite education having structural and historical problems in all modalities in Brazil, with regard to EJA, not only as a modality, but also the subjects in a daily way, are marked as belonging to an expendable collective. both in terms of human and capital investments.

Yulianto Arief, Widiyanto Widiyanto, Witiastuti Rini

Intra-industry sectors are producers of asymmetric information, which in turn has an impact on capital structure decisions. The purpose of this study was to determine (1) differences in debt-equity ratio, growth opportunities, firm age, and firm size as firm characteristics and (2) differences in the effect of growth opportunities, firm age, and firm size on the debt-equity ratio between manufacturing and nonmanufacturing firms. We collected 3,063 observation units consisting of 2,628 manufacturing sectors and 435 non-manufacturing sectors in the Indonesia Stock Exchange (IDX) and trimmed the data to eliminate the top and bottom 20%. Manufacturing firms are older and more stable, using their profitability to increase information disclosure. Although they produce lower asymmetric information, they do not prefer external financing as an effort to reduce intervention. In contrast, non-manufacturing firms have less tangible assets as a proportion of their total assets than manufacturing firms and therefore produce less asymmetric information of intrinsic value (tangible assets). As a result, manufacturing firms prefer debt issues over equity issues when financing new investments.

Nazanin Ghasemdokht, Hamideh Razavi

Overdue claims resulting from the lending process can pose a significant credit risk to financial institutions. To mitigate this risk, institutions often acquire guarantees. However, borrowers may encounter challenges when providing adequate and valid guarantees, particularly guarantees with lower risk. The present research focused on loan credit risk, borrower utility, and liquidity risk of guarantees within a private fund. First, data mining and classification methods were applied to a dataset of loans. The random forest algorithm, with a prediction accuracy of 0.986, was found to be optimal for constructing a guarantees composition model. The guarantees composition involves using multiple types of guarantees to secure a loan. Two models were established to generate guarantee compositions with a maximum default rate of 10%. In testing scenarios, the average risk of total default for acceptable combinations stands at 3.94%, a significant improvement compared to the fund loans’ overall default rate of 6.3%. Furthermore, the proposed model increases borrower utility from 4.22 to 4.6, not only reducing the default rate but also enhancing borrower utility.IntroductionWhen providing loans to customers, banks require guarantees due to insufficient knowledge of customers and the default risk. Obtaining guarantees from borrowers is recognized as a solution to reduce default risk in banks, but its impact on risk reduction depends on various factors. The combination and type of guarantees are among these factors, which have received less attention in the literature.The current state of overdue bank claims in Iran is unfavorable, and if conditions persist, it will lead to significant monetary and financial crises with negative effects on various sectors of the economy. In recent years, the ratio of non-performing loans to total disbursed facilities in Iran has been consistently higher, averaging around 5% to 10% higher than the global average. Reduction of the default risk in loans can decrease the ratio of non-performing loans to total disbursed facilities.The present study first intended to create various combinations of guarantees for each loan, followed by predicting the probability of default for each combination. In line with their priorities, borrowers can then select their desired guarantee composition from a list of acceptable combinations.MethodologyTo address the research problem, the study identified common classification methods in data mining by relying on published articles in the field of credit risk. Then, a sample dataset of loans from a financial institution was examined, and the data mining process based on classification methods was applied to the dataset. The random forest method, with a prediction accuracy of 0.986, was ultimately chosen as the approach for constructing the guarantee composition model. Using the previous guarantee compositions, the study developed two models by relying on machine learning techniques. These compositions take into account the perspectives of both the financial institution and the borrower.Final ResultThe two models generate guarantee compositions with a maximum acceptable default rate of 10%. Considering their own priorities circumstances, borrowers can select their desired guarantee composition from the available combinations, which contributes to a reduction in the default rate in the financial institution.

Heli Wang, Jinyu He, Joseph T. Mahoney

The resource-based view of the firm emphasizes the role of firm-specific resources, especially firm-specific knowledge resources, for enabling a firm to gain and sustain competitive advantage. However, since the deployment of firm-specific knowledge frequently requires key employees to make specialized human capital investments that are not easily transferable to other settings, employees with foresight may be reluctant to make these specialized investments. This paper explores both economic- and relationship-based governance mechanisms that potentially mitigate this under-investment problem. The appropriate use of these governance mechanisms enables firms to obtain greater performance from their efforts to deploy firm-specific knowledge resources. Empirical results further support these arguments.

Nicoleta MIHĂILĂ

There are theoretical and empirical studies that highlight a variety of determinants of economic growth, including investments, physical capital accumulation, human capital, innovation, political and legal institutions, macroeconomic conditions etc. The purpose of our paper is to determine the extent to which the evolution of the minimum wage has influenced the economic growth in Romania in the period 2007-2021, the objectives pursued being the definition of economic growth and the method of measuring it, the evolution of the minimum wage in the period mentioned above, as well as determining the effects the minimum wage on some economic indicators (consumption, GDP/capita). In this sense, we use an empirical and descriptive methodology, by referring to statistical data and bibliographic references from national and international literature.

A. Jahromi, R. Piercy, S. Cress et al.

Dankevych Vitalii Ye. , Zakharina Oksana V., Zolotnytska Yuliia V.

Theoretic aspects of the formation and development of public-private partnership (PPP) are studied. By using a systemic approach, it is determined that the most important factor in improving the efficiency of public-private partnership is its institutional support. It is substantiated that globally, the PPP is mostly initiated by public authorities, which can be explained by a number of reasons. Firstly, public authorities are responsible for the country's strategic development. Secondly, public authorities formulate "rules of the game" for businesses and individuals, plan capital investments, and select PPP entities that are a priority in terms of public interest. In fact, it is the state that undertakes to address objectives facing society. Therefore, nowadays the importance of creating a favorable institutional environment to develop PPPs is recognized at all the levels of economic management and is emphasized in the scientific community. It is proved that the interests of public authorities, private businesses and the community are reconciled through the complementation of political, legal, and socio-economic norms and rules of conduct. The functions of public authorities at the national and regional levels of government are systematized.

O. E. Astafieva, A. V. Kozlovsky, N. A. Moiseenko

The article discusses the main problems associated with the development and implementation of investment projects at enterprises of the real sector of the economy for sustainable development. The current situation in the investment and construction sector of the economy has been evaluated and the ways of solving the main problems of investment activity in the construction industry are outlined. The issues of formation mechanism of the investment attractiveness of industries and individual organizations, production and investment activities have been consistently considered. Traditional indicators and criteria of investment efficiency have been analysed. The expediency of using indicators of the return on capital or assets of the organization necessary for the implementation of the project has been substantiated. It has been noted that in the process of developing an organization’s sustainable development strategy, it is necessary to take into account its digital transformation, within the framework of the possibility of functioning in a single digital environment in order to increase competitiveness. The applying a comprehensive assessment of the effectiveness of attracting investments for the implementation of investment programs based on the selected criteria, taking into account their functioning in the digital environment, – has been recommended.

Jack Mintz, Philip Bazel

Canada is already at a disadvantage with lagging growth and productivity even before the massive economic destruction caused by the COVID-19 pandemic. Before the pandemic hit, Canada’s corporate tax system was already becoming uncompetitive in attracting highly profitable investments relative to other developed countries. Canada’s general corporate tax rate, averaging 26.1 per cent, is within spitting distance of the highest rates in the OECD. While some industries may benefit from special preferences, the corporate tax has become increasingly inefficient and complex with targeted measures, and in some cases impeding the allocation of capital to growth industries like communications and services. This was having a serious effect on Canada’s economic health before COVID-19. Business investment in Canada has lagged that of many countries since 2015, well before the pandemic. Productivity has been weak and wages for workers have been depressed, particularly for unskilled labour. Additionally, the corporate tax system currently distorts the allocation of capital in the economy, favouring some sectors over others. In fact, some of the sectors least-favoured by the tax system — including retail and tourism, which face an eight-point tax disadvantage compared to the government- favoured manufacturing sector — are the very ones that had the roughest time during the pandemic and face a more difficult road to recovery. If Canada is going to “build back better,” as some politicians claim to want, it will need investors willing to build things. That will require governments focusing on policies that stimulate economic growth, including tax reform. While it is politically popular for some parties to push for higher corporate tax rates, that won’t solve our investment problem. Some limited benefit can be realized by reducing tax rates and broadening the corporate base elsewhere but Canada’s unwieldy corporate income tax has become too serious for those measures to sufficiently address the problem. A broader approach to corporate tax reform will be required to ensure that Canada is able to recover to good economic health after the COVID-19 pandemic.

A. Wadhwa, S. Kotha

Shankha Chakraborty

P. Lakshmi, M. Thenmozhi, Nikhil Varaiya

This article explores the financial accounts of the United States to analyze the synchronicity in bank and nonbank credit flows with the fund flow patterns of U.S. nonfinancial corporate and noncorporate sector. We differ from prior studies and examine the long-term behavior from 1952 to 2015 in relation to peaks and troughs in business cycle, sector-specific factors, and macroeconomic variations. We find that the nonbank credit flows have evolved as a significant source of credit for corporate and noncorporate sector and exhibit higher levels of synchronicity during the period after 1980. The high synchronicity of nonbank credit flows necessitates sufficient resilience in the business cycle upsurge through countercyclical actions, specifically in the noncorporate sector. Multivariate regression results reveal that noncorporate sector relies more on nonbank credit for short-term cash and working capital requirements, whereas corporate sector opts nonbank credit for long-term investments. We also find evidence of relatively higher inter-sectoral impact of business cycle shocks between corporate and noncorporate sector from 1980 to 2015.