Hasil untuk "Capital. Capital investments"

Enrique Calderín-Ojeda, Yuyu Chen, Soon Wei Tan

Capital allocation is a procedure used to assess the risk contributions of individual risk components to the total risk of a portfolio. While the conditional tail expectation (CTE)-based capital allocation is arguably the most popular capital allocation method, its inability to reflect important tail behaviour of losses necessitates a more accurate approach. In this paper, we introduce a new capital allocation method based on the tail central moments (TCM), generalising the tail covariance allocation informed by the tail variance. We develop analytical expressions of the TCM as well as the TCM-based capital allocation for the class of normal mean-variance mixture distributions, which is widely used to model asymmetric and heavy-tailed data in finance and insurance. As demonstrated by a numerical analysis, the TCM-based capital allocation captures several significant patterns in the tail region of equity losses that remain undetected by the CTE, enhancing the understanding of the tail risk contributions of risk components.

Wing Fung Chong, Runhuan Feng, Kenneth Tsz Hin Ng

This article proposes a new class of risk-sharing rules by exploring the relationship between capital allocation and risk sharing. While the former is concerned with ex-ante allocating capitals to different lines of business within a corporation based on the relationship among the individual risks, often also through the aggregate risk, the latter is an arrangement which collects risks from and allocates them to, also ex-ante, a group of participants. Drawing on this analogy, we introduce a novel idea of inducing risk-sharing rules by randomizing existing capital allocation principles. Such an approach derives new risk-sharing rules complementing known results in the literature, which were largely based on economic principles and Pareto optimality.

Alexandru Țugui, Lucia Moroșan-Dănilă, Claudia-Elena Grigoraș-Ichim et al.

This paper aims to identify the financial and sustainability factors that determine the resilience of road freight transport firms and, to this end, proposes a hybrid econometricmachine learning (ML) framework for measurement and prediction. Thus, we analysed data from 1,500 Romanian firms over the period 2014-2023 to construct a resilience score using principal component analysis (components retained according to the standard criteria and weighted by the explained variance) and a sustainability score, for which robustness is tested through sensitivity analyses of the weights. The main results emphasise that resilience is associated with a more prudent financial structure and investments in human capital, and the environmental component becomes more important when nonlinearities and interactions with financial factors are allowed. Our analysis clearly shows that ML modelling improved the predictive performance of the models, providing managers with a theoretical and practical basis for prioritising sustainability investments and early diagnosis of operational vulnerabilities in logistics. In essence, the paper contributes to the definition of a resilience score using a replicable combined econometrics-ML methodology for explanation and prediction.

Eric Gilbert

This paper advances a theoretical argument about the role capital plays in structuring CHI research. We introduce the concept of technological capture to theorize the mechanism by which this happens. Using this concept, we decompose the effect on CHI into four broad forms: technological capture creates market-creating, market-expanding, market-aligned, and externality-reducing CHI research. We place different CHI subcommunities into these forms -- arguing that many of their values are inherited from capital underlying the field. Rather than a disciplinary- or conference-oriented conceptualization of the field, this work theorizes CHI as tightly-coupled with capital via technological capture. The paper concludes by discussing some implications for CHI.

Janette Larney, Arno Botha, Gerrit Lodewicus Grobler et al.

Loss Given Default (LGD) is a key risk parameter in determining a bank's regulatory capital. During LGD-estimation, realised recovery cash flows are to be discounted at an appropriate rate. Regulatory guidance mandates that this rate should allow for the time value of money, as well as include a risk premium that reflects the "undiversifiable risk" within these recoveries. Having extensively reviewed earlier methods of determining this rate, we propose a new approach that is inspired by the cost of capital approach from the Solvency II regulatory regime. Our method involves estimating a market-consistent price for a portfolio of defaulted loans, from which an associated discount rate may be inferred. We apply this method to mortgage and personal loans data from a large South African bank. The results reveal the main drivers of the discount rate to be the mean and variance of these recoveries, as well as the bank's cost of capital in excess of the risk-free rate. Our method therefore produces a discount rate that reflects both the undiversifiable risk of recovery recoveries and the time value of money, thereby satisfying regulatory requirements. This work can subsequently enhance the LGD-component within the modelling of both regulatory and economic capital.

O. V. Kudryavtseva, S. V. Vasiliev

Objective: to identify and analyze the economic effectiveness of the main financial tools and financing mechanisms in the field of waste management in Russia.Methods: economic and statistical analysis, systematic approach, generalization, comparison, synthesis of data from Rosstat and reports of development institutes.Results: the search for effective financing solutions for waste management is becoming strategically important in the face of economic challenges and growing budgetary pressures. The key success factor is the harmonization of the interests of the state and business in mobilizing internal resources. The study analyzes the methods and mechanisms of financing projects in the field of waste management. The environmental agenda attracts great attention, which is proved by an increase in waste management costs and investments in fixed assets. The increase in subsidies in this area, as well as the growth of the ESG bond market, show the need to modernize the waste management sector and create appropriate infrastructure. The authors revealed the high efficiency of the reviewed projects, which is confirmed by the positive net present value, stable annual revenues and profitability of waste recycling. The study also notes the environmental, economic, and social effectiveness of the projects (reducing СО2 emissions, creating jobs, and replenishing budgets). The article identifies effective methods of attracting private investment: preferential loans, green bond issuance, project financing mechanisms, providing access to long-term capital and successful project implementation.Scientific novelty: the authors propose to supplement the tools for implementing investment projects with modern and relevant financial instruments. They developed and presented a model of the financial and credit mechanism for financing waste management enterprises, which reflects key aspects of the market participants’ interaction and relevant financing methods, including those proposed by the authors. They also propose to supplement the toolkit with consolidated subsidies and pension reserves for green bonds, taking into account risks (sanctions, liquidity). Another proposal is to direct investments to targeted support of startups implementing innovative approaches and scientific developments.Practical significance: the research results can be used to optimize strategies, develop effective financing mechanisms, and implement rational tools for project implementation.

Vasyl Shlonchak, Iryna Vakhovych

This study investigates the theoretical underpinnings and empirically validated effectiveness of combined investments in interdependent sectors – namely energy, digital technologies, and cryptoassets – within the context of heightened financial market volatility and structural transformations in the global economy. The principal objective is to substantiate the hypothesis that cross-sectoral investment strategies generate a multiplicative effect on return generation and risk mitigation, outperforming conventional portfolio models. The analysis confirms the existence of significant intersectoral linkages among the energy, IT, and crypto markets, as evidenced by synchronized index movements, correlated capital flows, and underlying technological complementarities. Empirical results demonstrate both short- and long-term causal and correlational relationships among these sectors, indicating the presence of a compensatory-multiplicative mechanism that enhances structural diversification and contributes to overall portfolio stability. A conceptual framework, denoted the “Investment Energy Asset” (IEA), is introduced as a synthetic construct integrating sector-specific strengths. Backtesting reveals the superior performance of portfolios containing IEAs: the crypto-energy combination yields an Investment Value Index (IVI) of 3.19x and a Value Retention Index (VRI) of 1.042x, surpassing traditional benchmarks such as the S&P 500. The IEA exhibits a balanced performance profile, with an IVI of 2.55x and a VRI of 1.027x. Regression analysis confirms the presence of a stable intersectoral transmission channel, with β coefficients of 1.05 for cryptoassets and 1.03 for the IEA. Combined investments in interdependent sectors are shown to provide strategic advantages through sectoral synergy, embedded structural flexibility, and effective risk compensation. The IEA framework enables investors to construct adaptive, high-performing portfolios capable of maintaining resilience in the face of extreme volatility, technological shifts, and macroeconomic disruptions.

Alireza Barati, Maryam Khalili Araghi

Embedded options are virtually new instruments identical to options in many aspects except their non-tradable nature. Testing the efficiency of the Variance Gamma and Black-Scholes-Merton model on these instruments would provide a vision of transitioning from the classical model with its deficiency to more intricate models. Considering the complicated nature of the Variance Gamma stochastic process to price options, the Fast Fourier Transform (FFT) method is used in conjunction with the Nelder-Mead Simplex method to calibrate models. This research uses the Fast Fourier Transform (FFT) to price four embedded options with the ticker symbols Hefars912, Heghadir912, Heksho208, and Hetrol911 under the two models. The result approves that the Variance Gamma process is more efficient than the Black-Scholes-Merton model in pricing embedded options. Consequently, the variance gamma process would generate fewer errors in pricing those options that can be used in a practical sense.

Thomas Gottfried, Stefan Grosskinsky

It is a widely observed phenomenon that wealth is distributed significantly more unequal than wages. In this paper we study this phenomenon using a new extension of Pólyas urn, modelling wealth growth through wages and capital returns. We focus in particular on the role of increasing return rates on capital, which have been identified as a main driver of inequality, and labor share, the second main parameter of our model. We fit the parameters from real-world data in Germany, so that simulation results reproduce the empirical wealth distribution and recent dynamics in Germany quite accurately, and are essentially independent from initial conditions. Our model is simple enough to allow for a detailed mathematical analysis and provides interesting predictions for future developments and on the importance of wages and capital returns for wealth aggregation. We also provide an extensive discussion of the robustness of our results and the plausibility of the main assumptions used in our model.

Kuanysh Bakirov, Jamalbek Tussupov, Tamara Tultabayeva et al.

Urban vertical farming has emerged as a sustainable and innovative approach to addressing the increasing global demand for food in rapidly growing and densely populated cities, where traditional agriculture faces significant challenges due to space and resource constraints. A primary issue in these systems is the efficient management of critical resources, particularly water and energy, which are essential for maintaining high crop productivity and environmental sustainability. This study introduces, develops, and evaluates a mathematical model that integrates Internet of Things (IoT) technology to optimize water and energy usage in a hydroponic vertical farming setup. The model utilizes real-time environmental data collected from IoT sensors to dynamically adjust irrigation and energy consumption, ensuring minimal waste while sustaining optimal conditions for plant growth. Extensive simulations conducted using Python demonstrate substantial improvements in Water Use Efficiency (WUE) and significant energy savings, validating the model’s effectiveness. The study also presents practical case studies from regions like Singapore, Qatar, and Malaysia, showcasing how the integration of renewable energy sources, such as solar photovoltaic panels, with advanced smart irrigation technologies can lead to up to 50% growth rate improvements. Despite existing challenges, such as high initial capital investments, technical complexities, and the need for continuous maintenance, the findings indicate that modular and scalable system designs offer a promising path forward. Future research should aim to reduce overall costs and enhance system adaptability for various urban environments. Ultimately, this research provides a scalable and efficient framework for advancing urban agriculture, with the potential to contribute significantly to global food security and promote the sustainability of urban ecosystems.

Liliana De Simone

Joel Stillerman es profesor de Sociología en la Grand Valley State University. Autor de The Sociology of Consumption: A Global Approach (Polity, 2015) e Identity Investments: Middle-Class Responses to Precarious Privilege in Neoliberal Chile (Stanford University Press, 2023), por su último libro obtuvo el Consumers and Consumption Distinguished Scholarly Publication Award de la American Sociological Association (ASA). Su trabajo de investigación aborda las protestas laborales y de vendedores ambulantes, la cultura de consumo y el capital cultural en Chile. En esta entrevista, Stillerman habla de la identidad que se levanta a través de las elecciones de consumo en la ciudad, y cómo se articulan hoy las resistencias éticas de los consumidores frente a diversas situaciones relativas al mercado.

Emanuela Rosazza Gianin, Marco Zullino

In the context of risk measures, the capital allocation problem is widely studied in the literature where different approaches have been developed, also in connection with cooperative game theory and systemic risk. Although static capital allocation rules have been extensively studied in the recent years, only few works deal with dynamic capital allocations and its relation with BSDEs. Moreover, all those works only examine the case of an underneath risk measure satisfying cash-additivity and, moreover, a large part of them focuses on the specific case of the gradient allocation where Gateaux differentiability is assumed. The main goal of this paper is, instead, to study general dynamic capital allocations associated to cash-subadditive risk measures, generalizing the approaches already existing in the literature and motivated by the presence of (ambiguity on) interest rates. Starting from an axiomatic approach, we then focus on the case where the underlying risk measures are induced by BSDEs whose drivers depend also on the y-variable. In this setting, we surprisingly find that the corresponding capital allocation rules solve special kinds of Backward Stochastic Volterra Integral Equations (BSVIEs).

Mattia Iotti

Agricultural firms are characterized by significant investments, both in fixed capital and in working capital. To finance investments, in addition to equity capital, access to credit becomes essential. Concerning this topic, various researches have shown that agricultural firms have difficulty accessing credit, due to reduced average size of farms, often poor financial culture and difficulty in communicating with lenders. To facilitate relations between agricultural firms and lenders in Italy, various regulatory provisions, over time, have changed the regulatory framework of agricultural credit. The offer of credit lines is today wide, even if granting of credit favors larger and more structured firms, and credit is concentrated in a few Italian regions. Public intervention through guarantees, and the introduction of a non-possessory revolving pledge, have favored access to credit for agricultural firms in recent years. The business cases analyzed have highlighted how investments of firms in fixed capital for the purchase of plants, and working capital, for aging of productions, amplify financial needs of firms and make it necessary to evaluate financial sustainability of operations. Recent increase in loans for ESG investments, and consequent regulatory framework, can facilitate financing of agricultural firms, enhancing their social role also in favor of smaller firms, cooperatives and firms in disadvantaged areas.

Paola Nardone, Iacopo Odoardi, Assia Liberatore et al.

Promoting education is a priority for most of the world’s governments, but, in some cases, beneficial access to school curricula and student achievement is influenced by the socioeconomic background. We investigate the influence of many aspects of the Italian socioeconomic background on school achievement, specifically on mathematical capabilities, at two school levels (primary and secondary) by using regional data over the period 2013-2019. Italy is a country with a solid scholastic tradition that, especially in the past, had a strong imprint mainly of humanistic and social culture. Investments are currently being made in human capital (HC), particularly in the scientific, mathematical and computer fields; however, the results vary according to region. The results show that in the central-northern regions, a virtuous circle of HC enrichment can be triggered, while in the southern regions, economic support is necessary. In addition, we observe that a sort of family safety net (a form of social capital) could play a positive role in sustaining the students’ learning efforts in the southern area. It seems that the different support for school education that underlies the Italian “NorthSouth problem” is one of the causes of the gap in the local levels of HC development.

Ricardo Pereira, Neri dos Santos

<i>Background</i>: The Industry 5.0 emerges as a new paradigm for the industry by considering sustainability, human-centered approaches, organizational resilience, and interaction between humans and machines as its core values. This new trend for the future of the industry is referred to as neoindustrialization. Due to being a topic in development, there is still no precise consensus on its definition, which prompted the current study to comprehensively investigate and analyze the existing literature on Industry 5.0. <i>Methods</i>: The method employed was a scoping review, examining publications from various databases and academic journals, including those specific to the Brazilian context. <i>Results</i>: The results indicate a transition towards an industry that meets societal demands and respects planetary boundaries, aspects that were overlooked by Industry 4.0. <i>Conclusions</i>: In this new scenario, the industry reassumes its leadership by combining technology with new strategies and organizational models. Furthermore, it undergoes organizational changes to align its structure, operations, human resources, and new practices, aiming to meet the demands of society and all stakeholders involved. To achieve this, it is necessary to create an environment conducive to innovation and entrepreneurship, promoting the development of qualified human capital, investments in research and development, and strengthening partnerships between the public and private sectors. A successful neoindustrialization policy will generate high-quality jobs and foster economic growth. Industry 5.0 is the paradigm that will prevail in the 21st century. It is not a matter of speculation; it is an inseparable and inevitable reality. Otherwise, the industry will be relegated to a secondary role in the process of digital and social transformation.

David Haritone Shikumo

Purpose: A significant number of the non-financial firms listed at the Nairobi Securities Exchange (NSE) have been experiencing declining financial performance which deters investors from investing in such firms. The lenders are also not willing to lend to such firms. As such, the firms struggle to raise funds for their operations. Prudent financing decisions can lead to financial growth of the firm. The purpose of this study is to assess the effect of Share capital on financial growth of Non-financial firms listed at the Nairobi Securities Exchange. Financial firms were excluded because of their specific sector characteristics and stringent regulatory framework. The study is guided by Market Timing Theory and Theory of Growth of the Firm. Methodology: Explanatory research design was adopted. The target population of the study comprised of 45 non-financial firms listed at NSE for a period of ten years from 2008 to 2017. The study conducted both descriptive statistics analysis and panel data analysis. Findings: The result indicates that, share capital explains 32.73% and 11.62% of variations in financial growth as measure by growth in earnings per share and growth in market capitalization respectively. Share capital positively and significantly influences financial growth as measured by both growth in earnings per share and growth in market capitalization. Implications: The study recommends for the Non-financial firms to utilize equity financing as a way of raising capital for major expansions, asset growth or acquisitions which may require heavy funding. In this way, firms will be assured of improved performance as well as high financial growth. The study also recommends for substantial firm financing through equity. Value: Equity financing is important to any firm, if the proceeds are used to invest in projects which eventually bring growth to the firm.

Saeed Nosratabadi, Nesrine Khazami, Marwa Ben Abdallah et al.

Social capital creates a synergy that benefits all members of a community. This review examines how social capital contributes to the food security of communities. A systematic literature review, based on Prisma, is designed to provide a state-of-the-art review on capacity social capital in this realm. The output of this method led to finding 39 related articles. Studying these articles illustrates that social capital improves food security through two mechanisms of knowledge sharing and product sharing (i.e., sharing food products). It reveals that social capital through improving the food security pillars (i.e., food availability, food accessibility, food utilization, and food system stability) affects food security. In other words, the interaction among the community members results in sharing food products and information among community members, which facilitates food availability and access to food. There are many shreds of evidence in the literature that sharing food and food products among the community member decreases household food security and provides healthy nutrition to vulnerable families and improves the food utilization pillar of food security. It is also disclosed that belonging to the social networks increases the community members' resilience and decreases the community's vulnerability that subsequently strengthens the stability of a food system. This study contributes to the common literature on food security and social capital by providing a conceptual model based on the literature. In addition to researchers, policymakers can use this study's findings to provide solutions to address food insecurity problems.

Ashkan Bashardoust, Hannah C. Beilinson, Sorelle A. Friedler et al.

Social network position confers power and social capital. In the setting of online social networks that have massive reach, creating mathematical representations of social capital is an important step towards understanding how network position can differentially confer advantage to different groups and how network position can itself be a source of advantage. In this paper, we use well established models for information flow on networks as a base to propose a formal descriptor of the network position of a node as represented by its information access. Combining these descriptors allows a full representation of social capital across the network. Using real-world networks, we demonstrate that this representation allows the identification of differences between groups based on network specific measures of inequality of access.

Kuznetsova Yu.

The article deals with the venture entrepreneurship as a phenomenon and explains the nature of venture investment. The author pays attention to an issue of attracting venture capital to finance newborn projects in the modern world and defines the stages which can appear in the process of venture capital investing. Current state of startup ecosystem, its constraints and incentives are described in the research. The key facts and important differences about the startups are outlined in the paper. Fact which is of a current concern is that the ecosystem is getting more competitive and the investors are getting more cautious about choosing the project to invest in, that is why the conditions are stricter year by year. The paper summarizes the types and forms of venture investment and justifies the benefits of their use in building up and developing an enterprise. The features of attracting venture investments are identified and the specifics of the venture investor-consumer are determined in the context of innovation development. The mechanism of venture funds and their types are analyzed. The main factors influencing the formation of ecosystem of startups in Ukraine are studied and legal aspects problems are explained. The paper names the most famous startups exchanges platforms and reveals investors algorithm to use such platforms nowadays. The research also considers the influence of coronavirus epidemy to attract money and figures out some possible consequences for venture investment trends, as a result - the key future threats of the market are named. Finally, the crucial importance of venture investments to cultivate innovation has been explained and proven by this research.

Abel Monfort

Autor: Haskel, Jonathan and Westlake, Stian Princeton University Press, 2018 Jonathan Haskel and Stian Weslake published Capitalism without Capital at the end of 2018. Haskel is a well-known professor at the Imperial College Business School, who has written dozens of articles on intangibles, technology, and produc- tivity. Weslake is also known for advising the UK Ministry of Science and Innovation and for being a consultant and researcher on issues related to innovation and technological change. The book, while technical, approaches the rea- der in a way that is enjoyable and accessible to anyone with a basic knowledge of the economy and society. Over eleven chapters they make a detailed review of the economy of the intangibles. They emphasize the conceptualization, measurement, management, and impact of intangible assets in the economy and society. Although it highlights aspects such as R&D and software, the book is highly recommended for experts in branding, commu- nication, CSR or corporate reputation. El autor del libro no es otro que Jorn Lyseggen, un emprendedor de éxito que en 2001 fundó la conocida Meltwater con el objetivo de recolectar información para mejorar la toma decisiones empresariales. Tal y como reza su identidad corporativa, Meltwater es una compañía que monitoriza los medios y las redes sociales para el crecimiento de negocio y la construcción de marca. Este noruego, nacido en Corea, comenzó su carrea como investigador en inteligencia artificial en el Norwegian Computing Center. Abandonó este trabajo para crear sus primeras start-ups y le fue bien. Hace apenas 4 años los datos de su empresa arrojaban unos ingresos de más de 200 millones de dólares, más de 50 oficinas por todo le mundo y más de 1000 empleados. Es decir, que sabe de lo que habla al plantear una obra como esta. The example of the power of intangibles is simple: a car manufacturer has to invest a lot of money in the development of its first prototype. After its initial construction, the first productions can be expensive until perfection is achieved in the design of the model. Thereafter, no matter whether it is the 100th car or the 1 millionth, there comes a time when the cost of production is maintained successively. However, under the economy of intangibles, a company like Apple can spend a lot of money in the development of an application, but all those downloaded after- ward are practically free to produce. Thus, Haskel and Weslake begin with a clear and simple definition of what intangibles are: «something you can’t touch». Later, they show that intangibles have gone unnoticed by the eco- nomy of countries and a large part of business ma- nagement. While these actors and their institutions focused on physical, tangible realities, a tsunami of digital transformation has revealed the importance of business intangibles such as software, R&D, pa- tents, branding, and communication. The truly interesting thing, and the common thread of the work, is the set of characteristics of the intangibles that are shown in its pages. In particular, the authors highlight four aspects that make the intangibles behave differently from what the economy has traditionally evaluated: More scalable than a traditional asset. Intan- gible assets can be used repeatedly and any where without the need for new investments. In this way, the more the intangible asset is used, the more valuable it is. The possibility of spillovers. With the eco- nomy of intangibles, it is very easy for other companies to use and take advantage of the investments of others. Partly because there is no clear regulation at the international le- vel that clarifies to what extent one can use other people’s ideas to implement in his/her own business. A sunk cost. While a tangible asset can be sold at any time in case of need, intangible assets usually lose their value. This feature means that intangibles are more difficult to fund. Likewise, a bubble of intangibles could be catastrophic. Synergies with other intangible assets. Alt- hough the danger of spillover is clear, one of the great benefits of intangibles is that they usually encourage the sharing of knowledge and that there is an advance in several areas because of open innovation. One of the strengths of the work is that at no time do the authors want to sell the idea of intan- gibles. They simply try to argue that it is important to consider the transition from classical models. Therefore, measuring, focusing and managing aspects such as software, brand, corporate culture, patents, etc. are fundamental in current society. The reader becomes uneasy because he or she observes that it is important to push for change at all levels. Regulations should be more dynamic in terms of intangibles (registration of patents, trademarks, etc.), the wealth of nations should be adjusted more precisely to the measurements related to investments in intangibles; and, arguab- ly, tax aspects should also be revised to adapt to a world based on the «you can’t touch» aspects. On the other hand, a similar reflection that emerges in the reader is that, along with the change of paradigm in the area of economy, there is a powerful social impact in terms of inequality. Thus, the economy of intangibles can be an im- portant cause of the growth of inequality. Firstly, because those who can use spillovers and syner- gies are usually part of a small circle of companies and entrepreneurs. Secondly, the skills of mana- gers of intangibles are becoming so important that hiring these people is not affordable for any com- pany. Finally, the proper management of intangi- bles requires a powerful training and educatio- nal level that not everyone can afford. This book is essential for those involved in branding, reputation, corporate social responsi- bility, and other intangible assets. Although it focuses on the importance of software, it men- tions that marketing and communication efforts are a fundamental value for organizations under this new paradigm of intangibles. Despite the fact that a priori, the book might seem to be very technical, I believe that it provides the necessary support to value the work that brand and repu- tation professionals and scholars do every day. Somehow, this «something that you can’t touch» is reinforced and acquires personality thanks to managers and experts in the discipline who know how to give identity and positioning to each of the technological developments that follow us every day.