Capital Investment Efficiency Research Articles

НОВАЦІЇ У ВІТЧИЗНЯНІЦЙ НОРМАТИВНІЙ БАЗІ З ПИТАНЬ БУДУВАННЯ АВТОМОБІЛЬНИХ ДОРІГ ІЗ ЦЕМЕНТОБЕТОННИМ ДОРОЖНІМ ПОКРИВОМ

Introduction. The article deals with the issues of expanding the regulatory and technical base of the road sector for the construction of roads with cement concrete pavement. The article covers the issues of improving the existing and developing new requirements for the construction of cement concrete pavements with pin-connected slabs, reinforced slabs with pin connection, with continuous reinforcement and using rolled cement concrete mixtures using modern technologies. Improvement of the national regulatory framework is carried out on the basis of the analysis of existing legal acts, regulatory documents, technical literature related to the objects of standardization and, of course, taking into account the requirements of safety and environmental protection and the factors and features established by the current martial law in Ukraine. The work concerns the developed national standards for the installation of cement concrete pavements, namely those innovations that have already been agreed upon and are planned to be submitted to the National Standardization Body for adoption in the near future. Problem statement. Implementation of a unified technical policy to ensure the reliability and durability of roads, increase the efficiency of capital investments, implementation of scientific and technical achievements of science and best domestic and international practices in the practice of construction of roads with cement concrete pavement, issues of saving material, labor, financial and energy resources, improving the quality of construction work, labor safety and health conditions, rational use of land and other types of natural resources. The fact of constant growth in the intensity of heavy vehicles traffic, which is associated with the transportation of heavy machinery, agricultural products, metallurgical products, etc., significantly affects the reduction of the service life of roads with non-rigid pavement. This necessitates the search for alternative solutions for the construction of more durable pavement structures, one of which is the improvement of existing and introduction of new technologies for the construction of cement concrete pavements.

Economic Effectiveness and Forecasting of Scientific Activity in Azerbaijan

In the conditions of increasing international competition, sustainable development of the economy is considered to be one of the priority areas of scientific activities in the country. Since science and high technologies are the fundamental basis of innovative development, the strengthening of scientific, technical, and innovative potential for countries is considered as the goal of economic policy. In this context, the ability to achieve achievements related to scientific activity and to implement the obtained results becomes one of the factors that ensure the competitiveness of both the economy and fields and subjects in the global competitive environment. The effectiveness of scientific activity directly depends on the funding of research and development. The comparison of costs and results is closely related to the consideration of different time intervals between financing and the achievement of commercial results. Therefore, investments related to the commercialization of science appear as investments in the future. Thus, the application of the results of scientific activity to production, being considered an important factor of production intensification, ensures the increase of labor productivity, the reduction of production costs, and the improvement of the efficiency of capital investments. These, in turn, are the main conditions for the effectiveness of the integration of science and production. In the research, the effectiveness of scientific activity, the factors affecting it, the possibilities of expanding the application of scientific activity to production, and the forecast indicators of the volume of scientific and technical works shortly are determined.

Do the relationship paths between capital structure and investment efficiency depend on information asymmetry? A comparison between emerging and developed countries

ABSTRACT This paper aims to analyze the moderating role of debt maturity and the mediating role of information asymmetry in the relationship between financial leverage and investment efficiency and to compare the results between firms domiciled in emerging and those headquartered in developed countries. Using two proxies for investment efficiency, the results showed that debt maturity moderates the association between financial leverage and investment efficiency at both levels of developed and emerging countries. This paper also confirmed that information asymmetry carries the influence of financial leverage to investment efficiency only for those enterprises headquartered in emerging countries.

New approach to determining the economic efficiency of investments in mineral resources deposits development

The purpose of the study is to develop methodological support for assessing the economic efficiency of investment when implementing projects for mineral deposits development, including investments in coal deposits development. Specific features of the content of these projects implementation process have been considered both in terms of investment result and its components, and in terms of composition and investment structure, which affect the methodology used and the corresponding methods of efficiency indicators calculation. The author’s approach and specific formulas for assessing the economic efficiency of investment when implementing projects for mineral deposits development have been outlined and substantiated. The projects are based on the use of newly created value indicator such as internal income of enterprises and organizations as a result of investment and investment activity. In its economic content it corresponds to the country’s internal national income indicator, which is the financial basis for the functioning and existence of the state. The formulas for calculating the indicators of economic efficiency of investments and capital investments in development and exploitation of mineral deposits of specific investors without considering the costs of production and social infrastructure have been given.

Corporate ESG performance and human capital investment efficiency

We discuss the mechanism of the influence of enterprise ESG performance on the efficiency of enterprise human capital investment. Through empirical model research, the paper finds a compelling correlation: the greater the ESG performance, the higher the efficiency of enterprise human capital investment. Furthermore, the study reveals that enterprise ESG performance not only enhances the efficiency of human capital investment but also bolsters the competitive advantage of enterprise products. Additionally, the study underscores that enterprise ESG performance serves as a catalyst for augmenting enterprise reputation, which in turn leads to improved efficiency in human capital investment.

Threat or opportunity? Unveiling the impact of population aging on corporate labor investment efficiency

This study examines the impact of population aging on labor investment efficiency in Chinese listed firms from 2009 to 2020. Our main findings reveal that aging can positively influence labor investment efficiency, particularly in firms with labor redundancies such as state-owned enterprises, those with labor unions, high labor costs, and financial constraints. The positive effect is lessened in regions with abundant human capital, within the manufacturing sector, and labor-intensive industries. The results show that improvements in labor efficiency are distinct from changes in capital investment efficiency, indicating no general rebalancing of resources due to demographic shifts. Firms with limited investment opportunities and under strict external monitoring benefit more from an aging workforce. Overall, our findings suggest that an aging population can offer opportunities for firms to enhance labor investment efficiency, challenging the conventional view of population aging as solely a threat.

Economic rationale for the development of small vertically diversified pork production enterprises in Ukraine

Implementing the vertical diversification strategy for pig-breeding enterprises in Ukraine is one of the factors in increasing their economic efficiency and competitiveness. Mastering the following interrelated links of production and sale in animal husbandry increases enterprises' financial stability and economic security. The article economically substantiates the expediency of capital investments in developing vertically diversified pork production enterprises in Ukraine. The need for investments for the formation of fixed and working capital for the implementation of the project has been determined. The main operating costs for the organization of pig breeding, slaughter, and the sale of meat through the direct sales channel in the amount of 200 tons per year have been calculated. Planning of workforce needs for project implementation has been carried out. The leading indicators of the economic efficiency of capital investments for the production and sale of pork in the newly established enterprise have been determined. According to the study results, the relatively high investment attractiveness of developing small vertically diversified pork production enterprises in Ukraine with an orientation to local markets is substantiated. It has been established that for the implementation of the proposed project, about 1.1 million euros of advanced capital is needed, which is expected to pay off in 3.5 years. The project's five-year net present value has been determined to reach 690,000 euros at a discount rate of 2%. Accordingly, the projected internal rate of return will exceed 26%. The average annual net profit during the project implementation period will be 268 thousand euros, with an average operating cost of 457 thousand euros, allowing us to achieve 65% profitability of production and 32% profitability of pork sales. The projected average net return on capital for the project implementation period is expected to be 35%. The development of vertical diversification in small pork production enterprises in Ukraine will increase the added value and productivity of the involved financial, labor, material, and technical resources.

Impact of high-speed rail opening on the efficiency of enterprise human capital investment: Evidence from China

In the current context of China’s vigorous development of its high-speed rail (HSR) network to accelerate the realization of connectivity, which is the aim of the “Belt and Road” initiative, it is crucial to study how the specific opening of HSR enhances enterprise human capital investment efficiency. Using a multiple-time-point difference-in-differences (DID) regression model, we empirically study data from listed Chinese companies. An HSR opening can promote the efficiency of an enterprise’s human capital investment. We further explore the relationship between HSR and a company’s human capital investment, by considering the moderating effects of firm property rights and foreign shareholding. Our findings indicate that these factors can enhance the impact of HSR on the efficiency of firms’ investments in human capital. Finally, to ensure the reliability of our experimental findings, we employed a combination of propensity score matching and the DID methodology. The findings of this study offer empirical evidence that can inform enterprise management strategies and provide valuable insights for policymakers seeking to promote economic growth.

Оценка эффективности мероприятий по улучшению условий и охраны труда на бетонных заводах

More than 30 types of raw materials are used in the production of portland cement, which are divided into four main categories: calcium, silica, alumina, iron. Cement dust is toxic and can cause allergies, impaired lung function, pneumoconiosis, lung, stomach and colon cancer. In addition, in winter period, antifreeze additives consisting of various chemicals are added to the concrete mixture. Human exposure to these chemicals occurs through the direct contact of employees with a hazardous substance or indirect contact through the air. As a result, the skin, eyes and respiratory tract may be irritated or damaged. Long-term exposure may cause dermatitis or asthma. In this regard, a concrete plant automation system is considered, built on the basis of modern technical solutions, hardware technologies and software, which allows improving the working conditions of the concrete plant employees. Automation of the technological processes at a concrete plant helps to increase production efficiency and minimize the risks of negative impacts on human health by reducing the number of employees who have direct contact with the cement dust and other chemicals. Considering the parameters: cost savings, return on investment, labor productivity, costs, etc., the economic efficiency of production and measures to improve working conditions and safety was assessed. Efficiency calculation showed that labor productivity increases by 50 %. Automation of the processes allowed, without changingthe production volume, to reduce the number of employees at the site in question by 4 people, ease the work of operators by eliminating the manual control panel, and improve air quality through the installation of carbon filters. With a total one-time cost of 11 200 000 rubles for upgrading equipment, purchasing software and installing carbon filters, the payback period will be 3 years, which proves the high efficiency of capital investments in automating the production processes of a concrete plant.

Value Creation-Based Financial Performance, Factors Macroeconomics and its Influence on Stock Returns Agricultural Sector

The primary performance metric used by investors to evaluate the efficiency of capital investments is stock return. After the mining industry, the agricultural sector's stock price index volatility from 2015 to 2021 produced the second-lowest annualized return. Businesses can generate corporate value that is closely tied to stock returns by utilizing value creation-based performance analysis (EVA, MVA, Q-Tobin). Furthermore, stock returns may also be impacted by outside variables. The objectives of this study are to: (1) examine the financial performance of agricultural companies using Q-Tobin, MVA, and EVA; (2) examine the relationship between Q-Tobin, MVA, and EVA and macroeconomic factors (exchange rates and inflation) on stock returns in the agricultural sector; and (3) draw managerial conclusions from the analysis's findings. Eight companies in the agricultural sector that were listed on the Indonesia Stock Exchange prior to 2015 provided the data. In order to ascertain the impact of macroeconomic variables, EVA, MVA, Q-Tobi, and panel data on stock returns, this study used descriptive analysis to evaluate the EVA, MVA, and Q-Tobi of each firm. The majority of the enterprises had negative EVAs, according to the results. However, the MVA study reveals that most businesses achieve positive MVA. The majority of the companies produce a value of q<1, according to the Q-Tobin data. Only the MVARET and Q-Tobin RET variables significantly improve stock returns, according to the REM analysis. Exchange rates, inflation, EVARET, and fictitious crises don't significantly affect stock returns.

Clawback adoptions, managerial compensation incentives, capital investment mix and efficiency

We present evidence that clawback adoptions, by dissuading accruals management, motivate managers to shift capital investment mix from R&D to capex to preserve earnings-based compensation, thereby lowering capital investment efficiency. These effects are more pronounced for firms prone to financial misreporting, which is consistent with board incentives to adopt clawbacks, and with managerial incentives to substitute real for accruals-based earnings management to preserve performance-based compensation. Path analyses lend support to performance-based compensation serving as a channel through which clawback adoptions influence capital investment mix and efficiency. These findings extend and reinterpret prior findings and are timely given the Security and Exchange Commission's newly issued Rule 10D-1 that makes clawback provision adoptions a condition for U.S. exchange listings and explicitly requested “comment on any effect the proposed requirements may have on efficiency, competition, and capital formation.”

Multiplication effects of investment in a publicly significant infrastructure project

The article features results of the assessment of the multiplier effects for the national economy from the implementation of construction project of the first stage of production facility of the Dniester HPP for the period 2010-2019. For this purpose, macroeconomic statistics were processes, on whose basis an information system of primary and calculated indicators was created using the data from the project documentation, which became the basis for calculations. A methodological approach was developed to assess multiplier effects at the macroeconomic level using the input-output balance, which is reflected in the symmetrical "input-output" table. The authors highlight the main indicators, through which the impact of the implementation of the construction project of the Dniester HPP on Ukraine’s economy is manifested, and which allow assessing its socio-economic significance: the multiplier of the output growth of the economic activity "Construction" at the expense of project investments, the GVA multiplier for all economic activities from project investments, and the GDP multiplier (public expenditure multiplier). According to the implemented approach, multiplier effects for the economy are calculated via additional output growth, additional value added growth, and GDP growth on project investments. Based on the obtained results, it is proved that: 1) the implementation of the construction project of the first stage of the production facility of the Dniester HPP had made it possible to accumulate a multiplier effect for Ukraine’s economy, confirming in practice the theory of multiplier effects and proving the efficiency of public capital investments; 2) to the greatest extent, the multiplier effect from the additional investment growth in this project is generated within the economic activity "Construction", which is explained by increased demand for domestically produced construction products.

Public Investments in Domestic Software as a Tool for Accelerating the Economic Development of Russia

Purpose of the study. The state policy aimed at stimulating national economic growth should necessarily be based on justified scientific conclusions and the results of empirical studies. In particular, a relatively new method for accelerating the country’s economic development is state investment in the digitalization of the economy. In this respect, the present study aims to roughly estimate the economic effect of additional public investments in the development of domestic software and databases and the increase in the share of IT specialists in the total employment structure.Materials and methods. The paper used regression analysis methods for panel data based on Rosstat statistics. In particular, the authors applied the econometric fixed effects model.Results. The study demonstrated the higher efficiency of investment in the development of software and databases as compared to the similar efficiency of capital investment in other types of fixed assets. The possible economic effect of additional budget financing for domestic software developers was estimated. The results of calculations clearly demonstrate that additional capital investments in Russian software and databases in the amount from 0.16 to 0.64% of the Russian Federation’s consolidated budget annually (in 2020 prices and in relation to its size for the same period) can accelerate GDP growth in Russia by 0.16-2.44 percentage points per year. At the same time, these calculations hardly make it possible to speak about a strong impact of additional government spending on the increase in the number of people employed in the IT sector. Consequently, it cannot be stated with certainty that it is advisable to further increase the number of state-funded places at Russian universities in IT areas. However, this conclusion is based on panel data, the time interval of which ends in 2020. Taking into account the recent years’ trends can question the relevance of the obtained conclusion.Conclusion. Thus, additional public investment in the digitalization of the national economy and automation of business processes at Russian enterprises is an important tool for accelerating Russia’s economic development. Currently, many domestic enterprises and organizations implement large-scale projects aimed at deepening automation (creating “smart factories”, transferring state-financed institutions’ document flow into an electronic form, introducing artificial intelligence, and many others). Besides, the reduction in the presence of some foreign software manufacturers in Russia makes it relevant to minimize losses associated with the termination of access to foreign software and databases. One of the options for solving this problem is the financial stimulation of developers of their domestic counterparts.

Equity Market Fragmentation and Capital Investment Efficiency

This study examines how equity market fragmentation affects firms’ capital investment decisions. Recent empirical research finds that market fragmentation lowers trading costs and thus improves market quality. We examine whether this increase in market quality translates into greater revelatory price efficiency, where stock prices reveal with greater precision information to managers and/or creditors about firms’ investment opportunities. Consistent with this notion, our findings reveal that the association between capital investment and investment opportunities is increasing in market fragmentation. Additional evidence suggests that (a) market fragmentation increases revelatory price efficiency at least in part by encouraging information acquisition and informed trade by equity investors and (b) the more efficient stock prices inform both managers and creditors about firms’ investment opportunities. Inferences based on difference-in-differences and instrumental variable tests are consistent with those based on our primary findings. This paper was accepted by Suraj Srinivasan, accounting. Funding: The authors are grateful to the Kenan-Flagler Business School, Cox School of Business, Smeal School of Business, and David Eccles School of Business for funding our research. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4905 .

Preliminary evaluation methodology for payback infrastructure projects in private-public partnership

The authors of the article present the results of scientific and practical research on the development of methods of primary assessment of the efficiency of payback infrastructure projects public-private partnerships achieved through the monitoring and analysis of the state company’s investment activities and project portfolio management. The purpose of this study is to develop methodology for preliminary evaluation of payback infrastructure projects, that is able to be used to evaluate efficiency of capital investment at the stage of initial project appraisal and planning and to range perspective projects in accordance with their efficiency. The subject of the article: efficiency of payback investment projects in the infrastructure industry. The relevance of the study is determined by absence of a generally accepted methodology for initial evaluation of investment projects, that allows for into consideration the legal and economic specifics of federal projects approval and implementation in the regions of Russia. The methodology formed on the basis of an interdisciplinary approach implemented in the course of approval and evaluation practice of investment projects appraisal within the framework of the activities of a state-owned company. The instrumentation reviewed in this paper is based on data from financial modeling of infrastructure projects, with preliminary geographical modeling of traffic flow intensity. It includes the following modified indicators based on discounted cash flows: consolidated coverage ratio, ratio of operating income to capital investment, share of extrabudgetary funding in the life cycle of a project, internal rate of return. These indicators are unified into a single integral indicator, which allows to rank and manage future projects in a company’s portfolio. The applicability of the proposed methodology has been verified by the results of implementation of the public-private partnership projects. Based on the results of the study a financial model for initial assessment of project efficiency has been prepared, which can be used as the initial stage of project justification.

Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India

Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India

К вопросу об оценке эффективности исполнения федеральных целевых программ как формы государственных расходов

The subject of the study conducted by the authors is the evaluation of the effectiveness of the federal targeted programs. The paper discusses approaches to evaluating the effectiveness of the implementation of state pro-grams depending on the goal-setting of spending budgetary funds and reveals their inherent features and shortcomings. An analysis of the fulfillment of the expenditure obligations of the Russian Federation related to the implementation of federal targeted programs is conducted. The priorities for correcting the methods for the evaluation of the effectiveness of federal targeted programs are determined, and the necessity of taking into account the activity of the program curator and the state customer is substantiated. The authors offer a method-ology for evaluating the effectiveness of the implementation of the federal targeted programs when carrying out budget investments in capital construction objects. The results of the study can be used in the current activi-ties of state customers, which will allow them to identify problems in the construction process and make deci-sions aimed at increasing the efficiency of capital investments.

Improvement of organizational and technological tools for assessing the effectiveness of construction and investment projects

The main principles and approaches to construction planning and production organization are taking into account the dependencies between the terms of project implementation and its cost. The basis of this methodology for determining the effectiveness of the implementation of construction projects is the methods and methods by which the participants of the construction and investment process determine the duration and cost of construction during tenders at various stages of organizational and technological development.
 The effectiveness of improving these methods essentially depends on how fully they take into account the specific features of the management-control, organizational-technological, and financial situations in which the construction will be carried out.
 A very wide and diverse list of factors can affect the structure and indicators of construction projects. Among them, for example, the relative remoteness of the main suppliers of resources from construction sites, the underdevelopment of the construction industry in some regions of the country, the influence of climatic factors on the productivity of labor, other powerful influence of elements of the external environment and the impact on project results in existing models and methods. As a result, we have a real duration of construction higher than the proposed one.
 This is especially relevant in conditions where improving the efficiency of capital investments in construction projects requires finding organizational and management tools to increase the level of economic relations in construction, strengthen contractual discipline, and increase the economic responsibility of builders and customers for the final results of construction projects.
 Implementation of construction projects is associated with high costs. In order to effectively use existing methods of construction planning and production organization in the established economic conditions, to have a positive impact on the acceleration and efficiency of construction, it is necessary to add methods that take into account the existing specific features of the construction industry. The need to create a certain toolkit for solving tasks related to increasing the efficiency of construction projects, minimizing the duration of projects and maximizing profit, taking into account organizational, technological, economic factors and elements of the external environment, determines the relevance of this scientific research.

Financial Flexibility and Investment Efficiency

In recent years, the external financing environment of enterprises has deteriorated, especially since the impact of the COVID-19 epidemic, which has further limited external financing opportunities for enterprises. Therefore, it is imperative to adopt effective financial strategies to promote enterprise growth. This paper examines the influence mechanism of financial flexibility on the investment efficiency of new generation listed companies in the information technology industry from 2017 to 2020. Using the adjustment path analysis method, the paper constructs and verifies the role path of "financial flexibility → investment efficiency" to explore the impact of financial flexibility on investment efficiency and its effect on enterprise growth. The status quo of financial flexibility and investment efficiency of listed companies in the new generation of information technology industry is analyzed descriptively using stata16.0 statistical software. The paper proposes a hypothesis and constructs a multiple linear regression model to examine the influence of financial flexibility on investment efficiency. The empirical results show that the new generation of IT enterprises face challenges such as low capital flexibility and investment efficiency, particularly insufficient investment. Financial flexibility can help enterprises cope with capital demands under uncertain circumstances and improve the efficiency of enterprise investment. Therefore, in the market environment, enterprises should retain financial flexibility while strengthening internal control to improve investment efficiency and meet the needs of enterprise growth. The government and financial sector should promote supply-side structural reform in the financial sector, raise the level of regional financial development, and provide a favorable environment for external financing of strategic emerging industries such as the next-generation information technology industry.

Мультиплікаційні ефекти від інвестування в суспільно значущий інфраструктурний проєкт

The article features results of the assessment of the multiplier effects for the national economy from the implementation of construction project of the first stage of production facility of the Dniester HPP for the period 2010-2019. For this purpose, macroeconomic statistics were processes, on whose basis an information system of primary and calculated indicators was created using the data from the project documentation, which became the basis for calculations. A methodological approach was developed to assess multiplier effects at the macroeconomic level using the input-output balance, which is reflected in the symmetrical "input-output" table. The authors highlight the main indicators, through which the impact of the implementation of the construction project of the Dniester HPP on Ukraine’s economy is manifested, and which allow assessing its socio-economic significance: the multiplier of the output growth of the economic activity "Construction" at the expense of project investments, the GVA multiplier for all economic activities from project investments, and the GDP multiplier (public expenditure multiplier). According to the implemented approach, multiplier effects for the economy are calculated via additional output growth, additional value added growth, and GDP growth on project investments. Based on the obtained results, it is proved that: 1) the implementation of the construction project of the first stage of the production facility of the Dniester HPP had made it possible to accumulate a multiplier effect for Ukraine’s economy, confirming in practice the theory of multiplier effects and proving the efficiency of public capital investments; 2) to the greatest extent, the multiplier effect from the additional investment growth in this project is generated within the economic activity "Construction", which is explained by increased demand for domestically produced construction products.