Human Capital Based Six-Factor Asset Pricing Model in the Era of Covid-19

The paper reflects an analysis examining the human capital transformation among female scientists in STEM and NON-STEM sectors in the era of COVID-19 and digitalisation focusing on young scientists in Ukraine. The human capital of these young female scientists is categorised into three groups within Ukrainian science: Doctor of Sciences, PhD and scientists without a scientific degree. The research methodology includes the method of analysis and synthesis for the theoretical and statistical analysis of the sociological survey for the results. The main issues regarding the realisation of the potential of young female scientists in the era of COVID-19 and digitalisation are defined. Innovativeness is proven to be the key indicator in the context of digitalisation. The main limitation of the research is the COVID-19 restrictions present at the time of conducting the sociological survey.

This study examines technology in mediating human capital, customer capital, and organizational capital on SMEs' performance during Covid-19. To test the hypothesis, the PLS-SEM method was applied. Data collection was conducted by sharing questionnaiers to 150 owners of small industrial cluster in East Java, Indonesia.The empirical results show that human capital and technology usage directly affect significantly on SMEs' performance. Furthermore, technology usage has a significant influence in mediating human capital on firms' performance. We provide implications for using technology for practice and using a socio-technical approach by SMEs to face challenges related to their work organization in response to COVID-19 while maintaining their activities. We hope that our reflection will be a source of thought for scholars and practitioners to explore further using technology for SMEs to secure business continuity during COVID-19.JEL Classification: O2, O34, M21How to Cite:Faisol, Astuti, P., Winarko, S. P. (2021). The Role of Technology Usage in Mediating Intellectual Capital on SMEs Performance During the Covid-19 Era. Etikonomi, 20(2), xx – xx. https://doi.org/10.15408/etk.v20i2.20172.

Over the past decade, multifactor models have shown enhanced capability compared to single-factor models in explaining asset return variability. Given the com-mon assertion that higher risk tends to yield higher returns, this study empirically exam-ines the augmented human capital six-factor model’s performance on thirty-two portfoli-os of non-financial firms sorted by size, value, profitability, investment, and labor income growth in the Indian market over the period July 2010 to June 2023. Moreover, the current study extends the Fama and French five-factor model by incorporating human capital proxy by labor income growth as an additional factor, thereby proposing an augmented six-factor asset pricing model. The Fama and MacBeth (1973) two-step estimation meth-odology is employed for the empirical analysis. The results reveal that small-cap portfoli-os yield significantly higher returns than large-size portfolios. Moreover, all six factors significantly explain the time-series variation in excess portfolio returns. Findings reveal that the Indian stock market experienced heightened volatility during the COVID-19 pan-demic, leading to a decline in the six-factor model’s efficiency in explaining returns. Fur-thermore, Gibbons, Ross, and Shanken (GRS) test results reveal mispricing of portfolio re-turns during COVID-19, with a stronger rejection of portfolio efficiency across models. However, the HC6FM consistently shows lower pricing errors and better performance, specifically during and after the pandemic era. Overall, the results offer important insights for policymakers, investors, and portfolio managers in optimizing portfolio selection, par-ticularly during periods of heightened market uncertainty.

Over the past decade, multifactor models have shown enhanced capability compared to single-factor models in explaining asset return variability. Given the common assertion that higher risk tends to yield higher returns, this study empirically examines the augmented human capital six-factor model’s performance on thirty-two portfolios of non-financial firms sorted by size, value, profitability, investment, and labor income growth in the Indian market over the period July 2010 to June 2023. Moreover, the current study extends the Fama and French five-factor model by incorporating a human capital proxy by labor income growth as an additional factor thereby proposing an augmented six-factor asset pricing model (HC6FM). The Fama and MacBeth two-step estimation methodology is employed for the empirical analysis. The results reveal that small-cap portfolios yield significantly higher returns than large-cap portfolios. Moreover, all six factors significantly explain the time-series variation in excess portfolio returns. Our findings reveal that the Indian stock market experienced heightened volatility during the COVID-19 pandemic, leading to a decline in the six-factor model’s efficiency in explaining returns. Furthermore, Gibbons, Ross, and Shanken (GRS) test results reveal mispricing of portfolio returns during COVID-19, with a stronger rejection of portfolio efficiency across models. However, the HC6FM consistently shows lower pricing errors and better performance, specifically during and after the pandemic era. Overall, the results offer important insights for policymakers, investors, and portfolio managers in optimizing portfolio selection, particularly during periods of heightened market uncertainty.

The psychological studies of organizations, with regard to human capital, have shown that this factor increases to the extent that the environmental demands are intensified, but it is the intellectual trait that acquires the greatest value when considered as the main intangible asset of an organization. In this way, the objective of this paper was to expose the theoretical, conceptual and empirical frameworks related to human capital in order to establish discussion scenarios related to the value chain of an organization based on its intangible assets. A documentary study was carried out with a non-probabilistic selection of sources indexed to repositories such as Dialnet, Latindex and Redalyc, considering the year of publication and relationship between the concepts of organization and human capital. There are lines of research around empathy, trust, commitment, satisfaction and happiness as inherent factors of human capital as an intellectual asset of an organization.

ICT use has significantly increased over the years across the world, including Saudi Arabia. This study links ICT with economic growth (EG) in Saudi Arabia, controlling human capital (HC) and COVID-19. We employ time-series annual data from 1990 to 2021, a nonlinear Autoregressive Distributed Lag (NARDL) approach, and a cointegrating regression analysis to look at the asymmetric effects of ICT diffusion on EG. The NARDL assessment establishes a cointegrating relationship among variables; the effect of ICT negative shocks on EG is favorable and relatively larger. In contrast, the positive shocks of ICT generate a negative and somewhat less impact on EG with an overall positive impact. The findings imply that the ICT, during its expansion stage, cannot contribute positively to EG, perhaps because of a lack of required skilled human capital to administer and utilize the ICT instruments. The positive and insignificant coefficient of HC supports this conclusion. Despite Saudi Arabia’s generous efforts, physical and human capital have no significant impact on EG. COVID-19 has hindered the usual economic activities in the Kingdom and impaired EG. The cointegrating regressions authenticate the robustness of the NARDL findings. The outcomes suggest policymakers should appraise the existing ICT infrastructure and initiate raising the capability of HC through practical training and education to benefit from ICT diffusion and positively impact EG.

The health and economic crisis caused by the SARS CoV-2 coronavirus and the COVID-19 disease has accelerated the emergence of an informational economy focused on the use of electronic networks. The impact of this scenario on education led to the transition from the traditional classroom to the electronic whiteboard. The objective of the present work is to analyze the relationships between human, social, and intellectual capital. A model showing the prevalence of human capital creation—as indicated by data processing in the virtual class-room and self-management of knowledge—was established.

This Special Issue was conceived and developed following a series of international conferences held in Asia, with a particular focus on critically reflecting upon higher education development in the region from broader social and political economy perspectives. Some of the papers in this Special Issue were selected from presentations in the East Asia Social Policy (EASP) Research Network Conference successfully held in Taiwan in 2018, while others were chosen from international events held at Lingnan University in Hong Kong presenting critical reviews and reflections on internationalization, marketization and graduate employment of higher education in Asia. This introductory article puts the discussions of the selected papers in this issue in context, with critical reflections on the key issues being examined in these papers. The Special Issue is published when the world is still confronting the unprecedented global health crisis resulted from the outbreak of the COVID‐19 pandemic. This article discusses the higher education development trends in Asia through the massification, diversification and internationalisation processes in transforming the higher education system and examines how these development trends are affected by the COVID‐19 crisis.

The health and economic crisis caused by the SARS CoV-2 coronavirus and the Covid-19 disease has accelerated the emergence of an informational economy focused on the use of electronic networks. The impact of this scenario on education led to the transition from the traditional classroom to the electronic whiteboard. The objective of the present work was to analyze the relationships between human, social and intellectual capital. A model was established in which the prevalence of human capital formation indicated by data processing in the virtual classroom and self-management of knowledge is appreciated.

Purpose—In recent years, numerous asset pricing models have demonstrated superior performance over traditional approaches in explaining the variability of asset returns. In this study, we empirically evaluate the efficiency of the augmented human capital six-factor model in the South African stock market over the period from July 2010 to June 2023. Design/Methodology/Approach—This study constructs thirty-two portfolios using daily stock price data of non-financial firms. These portfolios are sorted based on size, value, profitability, investment, and labor income growth rate premium. Further, we employ Fama and Macbeth's (1973) time-series regression for the empirical analysis. Findings—Findings indicate that small-size portfolios considerably earn higher returns than big-size portfolios. Additionally, we report that market, size, value, profitability, investment, and human capital premium significantly explain the time-series variability in excess portfolio returns. Further, the analysis also highlights that the COVID-19 pandemic induced substantial volatility in the South African stock market, which notably reduced the efficiency of the six-factor model during the pandemic period. To further assess model efficiency, we employ a Gibbons, Ross, and Shanken (GRS) test as part of the sub-sample analysis. Practical Implications—The results provide valuable insights for policymakers, investors, and portfolio managers in constructing optimal portfolios for investment, particularly during the COVID-19 pandemic. Furthermore, the findings emphasize that investors should incorporate the human capital premium alongside other risk factors when valuing securities. Originality/Value—First, this study significantly contributes to the existing literature on asset pricing models. Second, this study is the first which extend the Fama and French five-factor model in the South African market. Third, this study examines the efficiency of the augmented six-factor model during the COVID-19 pandemic. Fourth, this study highlights the performance of the augmented six-factors model and provides helpful suggestions for improving investing strategies during turbulent times.

The research aims to analyze human capital performance in the agricultural sector during the Covid-19 pandemic. This study uses secondary data, mainly from BPS, the data is analyzed using simple statistics and descriptive analysis with literature studies. The results show that agricultural development still relies on labor and capital. The Covid-19 impact on various economic sectors is varied, the agricultural sector is the least affected compared to other sectors. In the period of August 2019, BPS data shows that the agricultural sector absorbs 27.53%, over the last five years (2015-2019) has tended to decrease, however, in August 2020 data, it increased to 29.7%, there was an increase of 2.17% points. This condition presents a new additional workforce in rural. While agricultural labor absorption decreases, policies are needed to empower workers affected by Covid-19. Young workers perspective who want to work in the agricultural sector to participate in agricultural technology development. The modern agricultural development transformation lies in its human capital quality and affects the comparative advantage of being competitive. Therefore, how to apply human capital to be more productive, effective, and efficient in the agricultural sector.

This longitudinal evaluation of gender inequalities and economic growth addresses key questions in the evolving debate over the character of gender differentiation and the goals of womens empowerment. These questions include: 1) whether the impact of strategies of economic growth served to enhance or undermine the status of women; 2) whether changes in the status of women were accompanied by significant changes in gender inequality; and 3) the implications for existing debates. Section I reviews several sets of literature pertinent to the questions using three general approaches: modernization-neoclassical women in development and gender and development. Section II presents the data and methods used in the evaluation. The research assessed the contending interpretations reviewed in the first section by combining another set of cross-sectional and longitudinal data on womens status and inequalities between men and women with other existing indicators. Section III discusses the results in the following order: 1) cross-sectional patterns in womens status; 2) trends in womens status; 3) cross-sectional patterns in inequality between men and women; 4) trends in inequality between men and women; and 5) conclusion. Finally section IV presents an overall discussion of the findings of the whole longitudinal evaluation.

The Global Outlook

Since its dawn, the COVID-19 pandemic has posed new challenges in the Arab world, and across the world that have adversely inflicted unforeseen types of damage upon the traditional notion of globalization. This has, inherently, resulted in the initiation of several new pathways for research and innovation by local government agencies in various Arab nations. Spillovers from government and industry-specific research and investment to combat COVID-19 may yet prove to be beneficial to several of the sectors involved. In view of such opportunities and growing demand, research and innovation systems in the Arab world may need to rethink and reorient research priorities to align them with imminent needs. Furthermore, the Arab world is facing daunting challenges in research and innovation due to the deep scarcity in the human capital and material resources needed to shore up economic prosperity. It is therefore imperative that Arab countries start to recognize and appreciate all genuine efforts tallied by researchers in the ways of advancing the wellbeing of the communities, and along the way help the underlying economies move in progressive pursuits. To help the various sectors of the economy go about the various activities suggested in this chapter, one can readily surmise that an all-out effort would require some concerted activities involving the concerned government agencies, participating academic institutions, first-tier researchers, various components of the industrial sector, together with funding agencies that would take up much of the expenses involved in the process of research and innovation so as to keep pace with the rest of the knowledge-based societies around the world. Indeed, this would necessitate that the various sectors (medical and health, agricultural, industrial, information and communications technology, and the educational sectors) leverage existing infrastructures and embark upon new capital investments that are ready to shoulder the responsibility of effectively moving the Arab world into the post-COVID era rapidly and successfully.To do that, we must be able to identify sectors and institutions that can be potential partakers in the various activities of the processes involved. This would readily lead us to identify a few national organizations, which would offer access to their infrastructures to researchers and the various participating industries involved. Furthermore, the process must occur in piecemeal fashion, starting with the vital segments of the economy and transcending gradually to other segments, while observing health-directed practices in all phases, until the economic lifecycle would kick into a normal setting. The effects of the pandemic on these sectors and industries, as well as natural market forces and regulations are discussed in this chapter. These effects must be identified for policymakers to be guided toward more evidence-based planning to address the challenges that are inherently associated with them. This chapter also addresses ways and efforts of helping the various sectors go about the recommended research priorities in preparation for an era of reconstruction to build resilient national economies that are readily amenable for pan Arab integration in the post COVID-19. We finally recommend avenues and policies whereby the Arab world could levy some of the great benefits that have accrued because of the COVID-induced drawbacks in restricting global trade and economic integration.KeywordsCOVID-19 coronavirusEconomic resilienceMedical and healthAgricultureIndustryITEducationArab region

This paper seeks to establish the interlinkage, that exists between FP and IC of commercial banks in Saudi Arabia. The study identified ten commercial banks, using the convenience sampling method, covering a six-year span, that included the COVID-19 era. Four regression analyses were conducted, to examine the impact of IC components on the banks’ FP. The descriptive analysis revealed that IC, as indicated by VAICTM, and FP, constituted by ROE along with ROA, demonstrated an increasing trend. Regression findings established that the overall IC, as indicated by VAICTM, exerted positive and significant influence, by a 1% significance level, on FP. A scrutiny of IC and financial performance indicators revealed that Capital Employed Efficiency correlated positively and significantly with all the FP indicators, at the 1% noteworthy level but both Structural Capital Efficiency and the Human Capital Efficiency did not report any obvious linkage with the FP indicators. Regarding the size of the firm, it reported no significant relationship with ROA while it established pragmatic linkage with ROE. Further, the Covid-19 impact on FP was significant at 1% level of significance.