This article examines corporate debt values and capital structure in a unified analytical framework. It derives closed-form results for the value of long-term risky debt and yield spreads, and for optimal capital structure, when firm asset value follows a diffusion process with constant volatility. Debt values and optimal leverage are explicitly linked to firm risk, taxes, bankruptcy costs, risk-free interest rates, payout rates, and bond covenants. The results elucidate the different behavior of junk bonds versus investment-grade bonds, and aspects of asset substitution, debt repurchase, and debt renegotiation. Copyright 1994 by American Finance Association.
The aim of this article is to study the dynamics of development of both the global and national market of container transportation. One of the ways to increase the efficiency of transportation is the rational organization of the work of ships, taking into account the needs and requirements of the market, both of service consumers and of the carriers themselves. The increase in demand for container transportation of goods and the rapid growth of the container capacity of container ships led to a change in approaches to the organization of their work. Thus, the number of ports of call on main lines has begun to decrease. In addition, the movement patterns on them have become almost asymmetrical. Individual lines began to serve at their own container terminals in ports of call, or at terminals that have an agreement to serve only their vessels. Vessels with smaller container capacities were pushed onto feeder lines calling at hub ports located at the intersection of main services and regional ports. In addition, there are changes in the structure of cargo flows, the organization of lines, ports of call and cooperation between transportation participants, the division of the global transportation market into segments served by certain operators, changes in the role of hub ports in delivery schemes depending on the corresponding ports of call on the lines and container capacity vessels serving them. These changes occur under the influence of not only the construction of mega-sized ships, pandemics, piracy, military operations and affect not only the economy of a certain country, but also the global economy as a whole, political, social, geographical and transport, ecological and other spheres of human activity. Research of various factors on the changes taking place in the container transportation market will allow predicting and, possibly, leveling the consequences of their influence in the future. Prospects for further research in this direction are the identification of the main reference points at which significant changes in container transportation took place, the identification of factors that had an impact and the modeling of both individual situations and their interaction as a whole.
By combing the constitution of 7 private colleges and universities in Zhejiang Province, this paper summarizes the law of internal governance of private colleges and universities, analyzes the structure and characteristics of internal governance of private colleges and universities, and puts forward some thoughts.
Iveta Grigorova, Aleksandar Karamfilov, Radostin Merakov
et al.
In a rapidly evolving and often volatile crypto market, the ability to use historical data for simulations provides a more realistic assessment of how decentralized finance (DeFi) protocols might perform. This insight is crucial for participants, developers, and investors seeking to make informed decisions. This paper presents a comprehensive study evaluating the dynamic performance of a newly developed DeFi protocol—NOLUS. The main objective of this paper is to present and analyze the built realistic model of the platform. This model could be successfully used to analyze the stability of the platform under different environmental influences by performing various simulations and conducting experiments with different parameters that could not be realized with the real platform. In the article, the key components of the platform are presented in detail and the main dependencies between them are clarified, in addition to the ways of forming multiple variables, and the complex relations between them in the real protocol are explained. The main finding from the experimental part of the study is that the performance of the protocol representation accounts for the expected system behavior. Hence the system simulation could be successfully used to reveal essential protocol behaviors resulting from potential shifts in the crypto market environment and to optimize the protocol’s hyper parameters.
Sahar E-Vahdati, Wan Nordin Wan-Hussin, Mohd Shazwan Mohd Ariffin
This study examines the association between sustainability performance in terms of the overall environmental, social, and governance (ESG) score and compensation for the board of directors at companies in Japan and five member countries of the Association for Southeast Asian Nations (ASEAN-5). Then, we examine each of the individual ESG pillar scores and their association with board compensation. Drawing on agency and stakeholder theories, and using a sample of sustainability-friendly companies for the period 2015 to 2019, we find, first, that in both Japan and the ASEAN-5, ESG scores are positively associated with board compensation, and, second, that in the ASEAN-5, the social pillar score is positively linked with board compensation. However, at Japanese companies, the governance pillar score is positively related to board compensation. Our study contributes to the academic literature on sustainability performance and board compensation by providing new empirical evidence on the relationship between overall and disaggregated ESG performance and board compensation.
There is a renewed debate about whether multidivisional firms allocate resources efficiently across their divisions. This paper contributes to the literature on this debate by developing and testing a conceptual framework that links resource allocation efficiency to three forms of firm-level diversity: diversity in industry-specific knowledge, diversity in industryspecific investment opportunities, and diversity in operations. Regression analysis of a large sample of multidivisional firms shows that resource allocation efficiency tends to decrease as diversity in either industry-specific knowledge or industry-specific investment opportunities increases. Moreover, it appears that the negative relationship between the diversity in industry-specific investment opportunities and allocation efficiency weakens and may even turn positive when the diversity in industry-specific knowledge is low. On the other hand, the diversity in operations does not appear to affect allocation efficiency. These results are robust to the potential bias due to sample selection. Combined with related theory, the results suggest that firm diversity could have either a detrimental or a positive effect on a firm’s performance.
Askar Akaev, Alexander I. Zvyagintsev, Askar Sarygulov
et al.
The outburst of the COVID-19 pandemic and its rapid spread throughout the world in 2020 shed a new light on mathematic models describing the nature of epidemics. However, as the pandemic shocked economies to a much greater extent than earlier epidemics, the recovery potential of economies was emphasized and its inclusion in epidemic models is becoming more important. The present paper deals with the issues of modeling the recovery of economic systems that have undergone severe medical shocks, such as COVID-19. The proposed mathematical model considers the close relationship between the dynamics of pandemics and economic development. This distinguishes it from purely “medical” models, which are used exclusively to study the dynamics of the spread of the COVID-19 pandemic. Unlike standard SIR models, the present approach involves the introduction of the “vaccine” equation to the SIR model and introduces correction components that include the possibility of re-infection and other nuances such as the number of people at risk of infection (not sick with COVID but not vaccinated); sick with COVID; recovered; fully vaccinated (two doses) citizens; the rate of COVID infection; the rate of recovery of infected individuals; the vaccination coefficients, respectively, for those who have not been ill and recovered from COVID; the coefficient of revaccination; the COVID re-infection rate; and the population fluctuation coefficient, which takes into account the effect of population change as a result of births and deaths and due to the departure and return of citizens. The present model contains governance so that it not only generates scenario projections but also models specific governance measures as well to include the pandemic and restore economic growth. The model also adds management issues, so that it not only generates scenario forecasts but simultaneously models specific management measures as well, aiming to suppress the pandemic and restoring economic growth. The model was implemented on specific data on the dynamics of the spread of the COVID-19 pandemic in selected developing economies.
Muhammad Yusuf Shuaibu, Muhammad Mustapha Bagudo, Salami Suleiman
There has been a concern over absence of empirical works on value relevance of adoption of international accounting standard on agriculture. This paper examines the incremental value relevance of IAS 41 adoption on the value relevance of accounting information of listed agricultural firms in Nigeria. The study covered the period of sixteen years with eight years pre and eight years post adoption. The study also covered all the five listed agricultural firms in Nigeria. Using efficient market hypothesis as theory and OLS regression model as data analysis technique, the study found that the accounting numbers (BVPS, EPS and CASH) jointly explain the variation in SHP of listed agricultural companies in Nigeria for the period 2004 to 2019. However, the incremental coefficient of IAS 41 book value per share (BVP*DV) is statistically significant but it is negative which signifies there is decremental value relevance. Similarly, earnings per share (EPS*DV) is statistically significant and is positive which means that the adoption of IAS 41 had led to incremental value relevance. However, cash flow per share is not statistically significant signifying that it has no any incremental value relevance as a result of changes caused by the adoption of IFRS. The study recommends that there is the need for through examination of other proxies of accounting numbers, such as management of income and recognition of loss to understand more the impact of IAS 41 adoption.
The output gap measured as the percentage deviation of actual output from its potential level is an indicator of an economy’s achievement. Output gap has been an important concept used for forming of policies. In this study, we estimated the potential output and output gap, established some of its macro-economic determinants for the Ethiopian economy. By using yearly data spanning from 1990 to 2018, the study estimated the potential output and output gap using HP filtering, and production function approaches. Accordingly, both approaches indicated that the output gap has been fluctuating over the study period—indicating the actual output inconsistently and frequently deviating from its potential level. Mainly, in 1996 and 2003, the actual output showed the highest positive and negative deviations from its potential, respectively. The study also examined the effect of some macro-economic indicators on the output gap using the ARDL framework. Accordingly, inflation, trade openness, lending rate, and FDI are found to be having a significant effect on the output gap. Lending rate and trade openness have positive and significant effect, whereas inflation and FDI have a negative significant effect on the output gap. This study suggests; augmenting domestic production and utilization capacity, avoiding unrestricted importation and, export diversification, lowering lending rate and increasing FDI inflow; helps to reduce output gap. Besides, understanding the trend of potential and output gap would be helpful in dealing with inflation.
Objetivo: La investigación describió las características de los principales enfoques del principio de subsidiariedad económica del Estado en los últimos veinticinco años. Método: Se analizaron artículos publicados en revistas científicas indexadas con un método descriptivo, utilizando criterios de inclusión y exclusión. Resultados: Se obtuvo como resultado diecinueve artículos cuyos principales enfoques son: vertical/horizontal y positivo/ negativo. Conclusiones: Se concluyó que, si bien la regla de oro debe ser la libre iniciativa privada o la libertad económica, el rol subsidiario del Estado en la economía, se basa en que los agentes que intercambian en los mercados se apoyan en reglas insuficientes para lograr el bienestar.
The article presents the study results of the world trade stagnation issues associated with the WTO systemic crisis. The aim of the article is to summarize the main reasons for the world trade system disintegration and to identify feasible directions for the world economic order transformation. The G20 trade-restricting measures were analyzed based on the statistical databases of the WTO and the non-governmental organization Global Trade Alert (GTA). The views of leading domestic and foreign experts on the consequences of liberalization of the world trade in goods and services were summarized. The author systematized the reasons for the world trade system disintegration, including: the US anti-globalization policy aimed at containing the PRC; counteracting unipolar globalization by the Southeast Asian nations; developed countries’ rejecting the growing participation of developing countries in redistributing global resources; inefficiency of international organizations in solving problems of global imbalances, inequality and instability of the global financial system. Structuring disintegration processes revealed its main trends: protectionism, regionalism, trans-regionalism. There were shown mechanisms to keep the US in the European Union due to companies providing professional services to European business. The author evaluated Russia and China’s competitive advantages in the production chains of the new technological structure. The areas of cooperation between Russia and the BRICS countries for realizing export potential in agriculture, aviation and nuclear industries were determined. The prospects for trade and economic relations in Eurasia are discussed in terms of changing the economic paradigm and shifting the regulation of the global economy problems to the regional level.
Celem artykułu jest identyfikacja rodzaju praktyk rachunkowości zarządczej stosowanych w badanych podmiotach
gospodarczych w Polsce oraz rozpoznanie kierunku i czynników zmian metod i zadań rachunkowości zarządczej
w ciągu prawie trzech dekad dynamicznie rozwijającej się gospodarki rynkowej, po zmianie ustroju społecznopolitycznego na przełomie lat 80. i 90. XX wieku. Autorka odpowiada na kilka pytań badawczych na podstawie
przeglądu literatury przedmiotowej oraz danych uzyskanych z trzech badań ankietowych przeprowadzonych w roku 1999, 2005 i 2016. Badania te potwierdziły, że liczba firm w Polsce, które mają działy wykonujące zadania w obszarze rachunkowości zarządczej/controlingu, stale się zwiększa. Badania wskazują, że operacyjne metody rachunkowości zarządczej dominowały w przedsiębiorstwach w latach 2010–2015, podobnie jak w latach
2000–2005 oraz w latach 90. XX w., a nie więcej niż 10% średnich i dużych przedsiębiorstw, które wzięły udział w badaniu w 2016 roku, stosuje metody strategicznej rachunkowości zarządczej. W pierwszym okresie rozwoju
gospodarki rynkowej w Polsce, tj. do 2004 roku, wiele różnych czynników ekonomicznych i instytucjonalnych wpłynęło na wprowadzenie i zmianę praktyk rachunkowości zarządczej, a w następnym okresie respondenci wskazywali na czynniki ekonomiczne jako na ważniejsze. Artykuł stanowi wkład w literaturę dotyczącą rozwoju
rachunkowości zarządczej w krajach Europy Środkowej i Wschodniej na przykładzie Polski.
Sayyed Abdulmajid Jalaee, Hedyeh Mir, Akbar Rahimipour
One of the most important financial instruments of money and capital markets in the capitalist economy is bonds. Financing companies, reducing budget deficit of ministries and municipalities in their national projects and construction management plans and conducting monetary policy through open market operations, make a portion of the application of this tool. Nevertheless, the usury based nature of this market created a big challenge for Islamic countries' money and capital markets. In the absence of bonds, Islamic scholars were led to devise new financial instruments like participation bonds by referring to Islamic sources.
Given the full functionality of this instrument due to its on account profits and Islamic nature, this study sought to answer the question of how participation bonds' rate of return would affect the value added.
Since in Iranian economy, participation bonds' rate of return are determined on the average higher than the international standards, the results show that this has had a meaningfully negative effect on Iran's value added. Therefore, this study concludes that, without undermining the importance of the bonds, participation bonds' rate of return must have the necessary proportion to the economic value added.
En Colombia, el trabajo infantil es un problema social creciente que preocupa a la sociedad. El trabajo infantil se asocia con las actividades desempeñadas por menores, tales como los trabajos de cualquier clase remunerados o no, ocupaciones de tiempo completo, quehaceres que interfieren con la asistencia escolar, tareas de explotación o perjudiciales, labores que violan las leyes nacionales o internacionales sobre trabajo infanto-juvenil. En Bucaramanga, ciudad colombiana, también se ha visto un aumento en el trabajo infantil.
El trabajo infanto-juvenil tiene consecuencias negativas en la salud de los menores y, a futuro, en la población adulta. Además, obstaculiza la educación y aumenta las brechas de pobreza. Los resultados arrojados por una encuesta realizada directamente a los niños trabajadores señalan que la mayoría de los niños se desempeñan en el sector comercio y muchos indicaron que el trabajo sólo lo realizaban por la temporada. El 47% no vive con sus dos padres y el 13% no vive con ninguno de los dos. A pesar de estar trabajando, la mayoría sigue asistiendo a la escuela. El 64% trabaja para un miembro de su familia que este dentro de su núcleo familiar o es un pariente cercano. Sólo el 54% recibe pago por su trabajo. En promedio reciben $425.000
The subject of this paper is research of an impact of accrual based investment ratios on the determination of accounting manipulations in the financial statements of the listed companies in the Federation of Bosnia and Herzegovina (FBiH). The main objective of this research is to identify the accrual based investment ratios that contribute to the determination of accounting manipulations and to create a model of an impact of accrual based investment ratios on determination of accounting manipulations in financial statements of the companies. Methodological approach to research determination of accounting manipulations is based on accrual based financial ratios - the investment indicators. Researchers have used the technique of analysing the content of auditing and financial statements to collect research data for the period from 2010 to 2014 on a sample of the listed companies from the capital market in FBiH. In the researc h, inferential statistics has been applied as a fundamental form of the scientific-cognitive process. The obtained results have been presented by graphs and tabular views. The research results revealed that the accrual based investment ratios contribute to the determination of accounting manipulations in the financial statements of the listed companies in FBiH. Furthermore, a model of impact has been obtained, which indicates that accrual based investment ratio Earnings Per Share (EPS) has a significant impact on the determination of the accounting manipulations in the financial statements. Finally, the research revealed that accrual based investment ratios are a useful tool in determining the accounting manipulations in the financial statements of the companies.
Economic theory. Demography, Business records management