Capital Risk Research Articles

Credit Risks and Capital Risks and their impact on Banking Liquidity, Applied Research in al-Mansour Investment Bank and the Iraqi Investment Bank

The research aims to shed light on the variables of the study, credit risks and capital risks, and provide an introductory framework for them and the theoretical relationship with the dependent variable on banking liquidity, and then measure those risks on commercial banks (Al-Mansour Investment Bank and the Iraqi Investment Bank) and then find statistical relationships between the variables The independent and dependent variable and then using the statistical analysis program (SPSSv.26) to find the effect relationship of credit risk and capital risk on bank liquidity. One of the most important conclusions reached by the researchers is that there is a relationship between credit risks when they rise on bank liquidity, and this is explained by the value of the correlation between credit risks and bank liquidity in commercial banks, the study sample (.957**) at a significant level (0.01). There is a relationship. between capital risks when they rise on bank liquidity, as the value of the correlation between capital risks and bank liquidity in the study sample commercial banks was (-.873**) at a significant level (0.01).

RISK MANAGEMENT AND PROFITABILITY OF QUOTED BANKS IN NIGERIA

<p>The role of risk management in the performance of banks cannot be over-emphasized. This study, therefore, examines the effect of risk management on bank profitability in Nigeria by employing correlation analysis, pooled ordinary least square estimate, and fixed and random effect estimations between 2007 and 2020. Secondary data on return on asset (dependent variable), Liquidity risk, Credit Risk, Operational Risk, Market Risk, Capital Risk and Bank size are sourced from annual audited accounts of six deposit money banks listed on NSE. The result reveals that return on asset is negatively impacted by liquidity risk, capital risk and bank size while it significantly and positively impacted marketing risk but insignificantly and positively related to operational risk and credit risk. The study concludes that there is a slight tendency for liquidity risk and capital risk to reduce the return on asset. In Nigeria, credit risk continues to be the biggest threat to commercial banks, making precise measurement and credit risk management absolutely essential. Therefore, it is recommended that managements of listed commercial banks should support sound operational and credit risk management. This is paramount in order to engender a positive risk culture in line with best global practices that would prevent financial crisis and improve commercial banks' performance in Nigeria, among other countries.</p><p><strong>JEL:</strong> G21, G32</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0026/a.php" alt="Hit counter" /></p>

Risk-based human capital management in the ICT companies in Isfahan: A mixed-method approach

PURPOSE: This study aims to bridge the literature gap and provide a comprehensive and clear vision of managing Human Capital risk through an easy-to-apply risk management methodology. In addition, to provide an integrated process to manage Human Capital risks. METHODOLOGY: This paper conducted a mixed-method approach; risks were gathered by analyzing 14 semi-structured interviews with corporate leaders and HR expertise in 14 ICT companies in Isfahan. In the quantitative phase, variables were assessed by two methods; FMEA and Fuzzy analysis in 14 companies. FINDINGS: Results show that despite realizing the importance of human capital in achieving goals and competitiveness, companies are not ready to mitigate the Human Capital risks. Detected Risks are divided into behavioural and attitudinal risks. The Employees’ demotivation, Leaving work after receiving the required training, and Lack of commitment to the delivery time or quality are the most urgent risks that should be mitigated as prior in the ICT companies in Isfahan. ORIGINALITY: This paper is one of the few studies that holistically dealt with Human Capital risks by providing practical and managerial strategies and recommendations to mitigate the risk exposure. This paper is also one of the leading studies in introducing the FMEA method in measuring this type of risk.

Capital Risk, Fiscal Policy and the Distribution of Wealth

Capital Risk, Fiscal Policy and the Distribution of Wealth

EFFICIENCY OF DIGITAL MARKETING AND ITS IMPACT ON BUSINESS PROFITABILITY

This research examined whether the market efficiency of Digital Marketing contributes to the profitability of the business in Candelaria, Quezon. The study aims to determine the relationship between the Market Efficiency of Digital Marketing and business profitability. The study investigated the ability of Digital Marketing to generate a higher rate of profitability considering the company’s operating expenses, management, productivity growth, and capital risk through the use of a survey questionnaire. The researcher used a descriptive research design. Respondents were the service business owner in Candelaria, Quezon with 3 years to 10 years in the business. A total of 60 respondents answered the questionnaire. Results show a high degree of association between the Market Efficiency of Digital Marketing and business profitability. It is evident that the market efficiency of digital marketing has a favorable, considerable impact on the company’s profitability among service businesses in Candelaria, Quezon.

The effect of capital and liquidity risks on financial performance: An empirical examination on banking industry

The present study's primary goal is to examine selected financial risks and financial performance of commercial banks listed on the Bahrain Bourse from 2014 to 2021. However, as independent factors, chosen financial hazards include capital risk, liquidity, and bank size as a control variable, while financial performance as a dependent variable is assessed by return on equity. The panel regression analysis of data technique was used to attain the study goal. Whereas the statistics for the banks were gathered from their annual financial reports. A fascinating conclusion was the discovery of strong correlations between capital risks, bank size, and financial performance. The findings also revealed a negligible link between liquidity concerns and financial success. Due to the limitations of the present study, several ideas for future research may be suggested, such as performing research on other financial hazards, other financial institutions, and other financial performance metrics that are not included in the current research.

EFFICIENCY OF DIGITAL MARKETING AND ITS IMPACT ON BUSINESS PROFITABILITY

This research examined whether the market efficiency of Digital Marketing contributes to the profitability of the business in Candelaria, Quezon. The study aims to determine the relationship between the Market Efficiency of Digital Marketing and business profitability. The study investigated the ability of Digital Marketing to generate a higher rate of profitability considering the company’s operating expenses, management, productivity growth, and capital risk through the use of a survey questionnaire. The researcher used a descriptive research design. Respondents were the service business owner in Candelaria, Quezon with 3 years to 10 years in the business. A total of 60 respondents answered the questionnaire. Results show a high degree of association between the Market Efficiency of Digital Marketing and business profitability. It is evident that the market efficiency of digital marketing has a favorable, considerable impact on the company’s profitability among service businesses in Candelaria, Quezon.

Rising Entrepreneurs' Wealth and Its Implications for the Optimal Tax Policies: Interplay between Investment Risk and Human Capital Risk

Rising Entrepreneurs' Wealth and Its Implications for the Optimal Tax Policies: Interplay between Investment Risk and Human Capital Risk

Comparison Analysis of ASEAN Banking Financial Performance During the Pandemic

The arrival of the Covid-19 Pandemic outbreak has had an impact on the collapse of the local economy. The macroeconomics used in this theory explains the relationship between the current economic situation and how it affects banking financial performance with the RGEC indicators were used in this study to compare the financial performance of Indonesia's banking sector with other ASEAN countries, such as Brunei Darussalam, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. This research is a component of comparative research. The subject of the study is ASEAN banking institutions. Sampling with the purposive sampling method in 2019 and 2020 obtained 13 banks produced a complete sample. The parametric homogeneity test is used to test hypotheses in statistical models. The findings show that although there were differences in profit risk and risk profiles of ASEAN banks during the pandemic, there was no difference in capital risk.

Capitalization of reduced flood risk into housing values following a floodplain restoration investment

ABSTRACT Vast resources are allocated across the US and elsewhere for flood control in floodplains. Increasingly, these efforts involve restoring the function of natural floodplains to attenuate flood risk and provide a range of other ecosystem services. We investigated the capitalization of reduced flood risk from floodplain restoration into housing values in the city of Orting, Washington, USA. Our identification strategy exploits the occurrence of a major high-flow event directly following project construction, which demonstrated the ability of the widened floodplains to attenuate flooding. The prices of homes located within established 100-year or 500-year floodplains were discounted by 3%. Reduced flood risk associated with the floodplain restoration led to a 5% increase in the prices of homes in the 500-year floodplain on average. No evidence of reduced flood risk capitalization was found for homes the 100-year floodplain, where flood insurance rate maps and mandatory insurance requirements remained unchanged across the study period. The results suggest that reduced flood risk associated with floodplain restoration can capitalize into homes outside of designated high-risk zones.

Social capital, independent director connectedness, and stock price crash risk

This paper investigates the previously unexamined influence on stock price crash risk of independent directors' social capital, proxied by a measure of their social network centrality. Using a large sample of Chinese listed firms for the 2013–2019 period, we find that firms with independent directors possessing higher social capital tend to have lower stock price crash risk. This result is robust in instrumental variable regressions and propensity score matching regressions, and to alternative model specification and variable choices. Further analyses reveal that the negative impact of independent directors’ social capital on stock price crash risk is more prominent for non-state-owned enterprises, firms with strong external monitoring, and firms with high separation of ownership and control. Moreover, we observe that firms whose independent directors possess higher social capital have less financial opacity, less corporate fraud, and less board absenteeism. Our study suggests that social capital is an important variable when investigating the predictors of a stock price crash.

Based on Risk Indicator Analysis to Deal with Risk: A Case Study of Westpac Bank

Under APRA’s requirements, all Australian savings institutions need to develop risk appetite statements containing various risk indicators. This article will analyze Westpac’s various risk indicators based on Westpac’s annual report and risk appetite statement. There are six sections in this article. The first part is the background introduction. In the second part, by calculating and comparing the critical capital ratios of each quarter in 2020 and the preceding year, we analyze Westpac’s capital risk and the impact of CET1 on shareholders. The third part judges whether Westpac has achieved its credit risk target by comparing Westpac with the data of other banks in Australia. The fourth part is mainly about market risk. In this part, we analyze the most significant market risk Westpac faces. Westpac’s measurement and management methods of market risk and give Westpac improvement suggestions based on these data. The fifth part mainly studies the relationship between Bank’s Net Stable Funding Ratio, Liquidity Coverage Ratio and relevant risk appetite. In the last part, we summarize the article.

Risk path identification and factor analysis of project capital operation of small and medium-sized real estate enterprises based on the DEMATEL-ISM model

To investigate the risk path identification and factor analysis of project capital operation of small and medium-sized real estate enterprises, this paper compiles 18 risk indicators affecting engineering finance of small and medium-sized real estate enterprises in China based on literature research, and analyzes them based on the Decision-making Trial and Evaluation Laboratory (DEMATEL) method combined with the explanatory structural model (ISM) model, calculate the interrelationship and importance of each risk factor, and systematically stratify them according to their logical structure. The results show that the three indicators of "uncontrolled development progress, inadequate financing channels, and insufficient funds" have the greatest influence on the capital risk of small and medium-sized real estate enterprises, while the three indicators of "lack of an independent capital budgeting system, the imbalance between market supply and demand, and national macro policy restrictions" are the most influential factors. The three indicators of "lack of independent capital budgeting system, unbalanced market supply and demand, and national macro policy restrictions" are the underlying factors affecting the capital risk of small and medium-sized real estate enterprises. The analysis of risk transmission paths and underlying factors conducted in this paper has important warning implications for the project capital management of small and medium-sized real estate enterprises.

The Human Capital Risk Reporting of Listed South African Companies: Exploring a Reporting Framework to Support Corporate Governance

Despite the importance and requirement of integrated reporting on human capital (HC), research indicates a lack of reporting frameworks and adequate disclosure in organization reports. Thus, a unique research opportunity is created for researchers to determine what is being presented in reports and how it correlates with human resource management. This article investigates HC reporting practices and proposes a risk reporting framework in support of corporate governance. A qualitative method utilizing qualitative document analysis was followed to analyze a purposive sample (n = 39) of Johannesburg Stock Exchange top 40 listed companies’ annual integrated reports of 2020. Overall, companies followed a widely accepted risk management approach, with inconsistencies in the phases and methods of reporting the risk management phases directed at HC. The magnitude of the risk to the companies is also not understood. The most commonly reported HC risks were employee growth and development, diversity and inclusion, career paths, and employee turnover and turnover intention. Employee work-related well-being was largely neglected. An interesting finding is that the reported risks were metrics-deprived. Current HC practices are backward-looking instead of forward-looking, and they are fragmented. Therefore, an HC reporting framework is suggested for future research that addresses the gaps in integrated reports.

Risk Identification and Coping Strategy Analysis of Listed Companies' Capital Management Under the Centralized Management Mode

In order to improve their competitiveness in the market, listed companies have transformed from the original single production management to the centralized production management mode, and realized the optimization and integration of the internal resources of the enterprise. With the change of enterprise management mode, its capital risk has also changed. Listed companies adopt the same standard in capital management and use. This paper analyzes the capital management risk of listed companies under the centralized management mode, identifies the capital management risk from the perspectives of budget, allocation and settlement, and proposes a capital management risk prevention strategy according to the risk content.

Organizational capital and firm risk – Testing the outside option

We examine organizational capital risk on a micro level by identifying 120,017 quasi-voluntary inventor moves between firms over three decades. Consistent with survey results from Eisfeldt and Papanikolaou (2013), we find that a 10% increase in organizational capital results in a 1.8% greater annual exit of firm inventors. Exit risk is higher 1) where employees are more transferable between firms and 2) among financially constrained firms that cannot compensate valuable employees competitively. Valuations are lower for firms with greater levels of inventor turnover / outflows.

Entrepreneurship: Analysis by Country Through Machine Learning Techniques

This research aims to analyze entrepreneurship worldwide through the dimensions and pillars of the entrepreneurship ecosystem of each country, identifying the contribution and patterns of behavior and correlation within the entrepreneurship ecosystem. This analysis intends to show the main actions that countries have carried out in support of entrepreneurship and entrepreneurs. The tool used to analyze is machine learning, where various algorithms are applied. The evidence shows that the most relevant pillars in the entrepreneurial ecosystem are I. Opportunity Startup, II. Technology Absorption, III. Risk Acceptance, IV. Risk Capital and V. Process Innovation. The pillars that best correlate are I. Competition and Opportunity Startup, II. Opportunity Startup, and Risk Acceptance, III. Opportunity Startup and Technology Absorption, IV. Cultural Support and Opportunity Startup, and V. Opportunity Startup and Risk Capital. The present work aims to provide knowledge to decision-makers in both the public and private sectors to channel public policies that support entrepreneurs in this time of crisis and promote the generation and strengthening of entrepreneurial activity. Although there are still no reliable GEI data for the years 2020 to 2022, the economic crisis generated by the stagnation in the development of the countries has reduced support for entrepreneurs, which in many cases can be a key factor for the rescue of the most disadvantaged countries.

Systemic evaluation of human resources risks in the public sector

AbstractThis study tries to design a model for assessing and prioritizing human resources risks, using systems thinking and relying on the experiences of Mashhad Municipality in Iran. Reviewing various sources, this study identifies risks in human resources and uncovers the cause and effect relationships between their dimensions and components. Then, using qualitative and quantitative methods, the proposed model is evaluated. Results show five main subsystems of human resources operational risks, personal risks, professional risks, human capital risks and contextual risks. The results also show that there is a dynamic relationship between the components of these subsystems. It is shown that human resources' operational risks have the highest probability of occurrence and intensity of impact and human capital risks have the lowest probability of occurrence and intensity of impact. The system diagrams of this study provide researchers and practitioners with a comprehensive perspective to consider human resources risks in public organizations.

Supply chain risk identification for improving sustainability of straw mushroom in Karawang Regency, Indonesia

Straw mushroom turns out to be the leading commodities in Karawang Regency in Indonesia. This district has been called as the highest production district/city in West Java besides West Bandung, Bogor, Subang and Cianjur. The demand for straw mushrooms is always increasing every year. However, still, there are some risks in mushroom supply chain. This study aims at identifying the actors involved and recognizing the types of risks in the straw mushroom supply chain. The respondents used in this study are experts consisting of government representatives, academic representatives, and practitioners involved in the mushroom supply chain. The research method used is descriptive method with survey research techniques. The data used are primary and secondary data. The sample was determined by purposive sampling with consideration of expertise. The analytical method used is Analytical Hierarchy Process (AHP) model; it is used to identify the types of risks in the straw mushroom supply chain. The results demonstrated that there were five actors involved in the six supply chain channel patterns covering farmers, dealers, wholesalers, retailers, and consumers. The AHP model indicates that production risk (16.3%) is the major risk and needs more attention, and then followed by price risk (14.4%), quality risk (12.3%), capital risk (10.3%) and market risk (10.1%).

Supply chain risk identification for improving sustainability of straw mushroom in Karawang Regency, Indonesia

Straw mushroom turns out to be the leading commodities in Karawang Regency in Indonesia. This district has been called as the highest production district/city in West Java besides West Bandung, Bogor, Subang and Cianjur. The demand for straw mushrooms is always increasing every year. However, still, there are some risks in mushroom supply chain. This study aims at identifying the actors involved and recognizing the types of risks in the straw mushroom supply chain. The respondents used in this study are experts consisting of government representatives, academic representatives, and practitioners involved in the mushroom supply chain. The research method used is descriptive method with survey research techniques. The data used are primary and secondary data. The sample was determined by purposive sampling with consideration of expertise. The analytical method used is Analytical Hierarchy Process (AHP) model; it is used to identify the types of risks in the straw mushroom supply chain. The results demonstrated that there were five actors involved in the six supply chain channel patterns covering farmers, dealers, wholesalers, retailers, and consumers. The AHP model indicates that production risk (16.3%) is the major risk and needs more attention, and then followed by price risk (14.4%), quality risk (12.3%), capital risk (10.3%) and market risk (10.1%).