Level Of Capital Investment Research Articles

Economically Sustainable Growth of Perovskite Photovoltaics Manufacturing

Summary The significant capital expense of photovoltaics manufacturing has made it difficult for new cell and module technologies to enter the market. We present two technoeconomic models that analyze the sustainable growth of perovskite manufacturing for an R2R single-junction technology and a perovskite-silicon tandem module, focusing on the impacts of economies of scale and average selling price on profitability. We establish a cost range of $3.30/W to $0.53/W for flexible modules manufactured in factory sizes ranging from 0.3 MW/year to 1 GW/year. In addition, we model the cost to manufacture a tandem module consisting of a single-junction perovskite cell stacked in 4-terminal configuration onto a silicon cell and show how an existing manufacturer can grow at a faster rate by co-investing in tandems. Our analyses highlight potential routes to market for perovskite photovoltaics and the possibility to sustainably grow a photovoltaics manufacturing company even in markets with higher labor rates.

Insider Ownership and Investment Efficiency

Agency problems in firms are known to influence suboptimal capital investment decisions. Using panel data of publicly listed firms in India, we find evidence that increased insider ownership is associated with lower investment efficiency, i.e. as insider ownership increases, firms show tendency to make capital investments beyond the optimal level. However, we do not find evidence of increased insider ownership leading to underinvestment (below the optimal level of capital investment). A plausible explanation, consistent with theory, is that such insiders are making capital investments for private gain and empire-building rather than in the best interest of the firm. Additional analyses show that the presence of independent directors on the board of firms mitigates such value-destroying investments stemming from increased insider ownership.

Model of assessment of financial imbalances in regions of Ukraine

The article analyzes the model of financial imbalances in the regions, which allows assessing the effects of implementing various options of the financial regional policy aimed at reducing the depth of the crisis in regional systems, smoothing cyclical fluctuations, leveling the levels of socioeconomic development of the territories. The financial imbalances of regions of Ukraine are estimated on the basis such as indicators of gross regional product, gross regional product per capita, index of physical volume of gross regional product in comparative prices (in the prices of the previous year), economically active population by regions, population incomes, and level of capital investments by region. In the process of assessing the financial imbalances of the regions, a constant study of the structure of the fluctuations of the values of these indicators, was conducted determining the significance of each size in the overall structure and identifying the features of the system development in different ranges.Based on the assessment of financial imbalances in the development of regions, the causes and consequences of significant imbalances in the economic system were identified, and directions for increasing the efficiency of regional policy were proposed. In turn, the assessment of financial imbalances in the regions makes it possible to consider the influence of factors on the development of regions, because in some cases, the regional socioeconomic system perceives positively, in others – negatively. Therefore, it must have elements that contribute to the transformation of its parameters in the conditions of changing environment and, at the same time, ensuring the maintenance of regional stability.

Investicije i zaposlenost u turizmu u Republici Srbiji

Investments in tourism are crucial for the development of both tourism and other activities that are directly or indirectly related to it. Despite the immense potential of tourism, the insufficient development of infrastructure appears as one of the reasons that diminishes the role of tourism in Serbian economy. It is therefore of great importance to invest in infrastructure development in tourism. The subject of this paper is to compare Serbia with the countries in the region of Western Balkan and with several other European countries (Germany, France, Italy, Austria, and the Netherlands) in terms of the level of capital investments and employment in tourism. The insight into the amounts of investments will show the position and perspective of Serbia in relation to the countries in region and Europe. By adopting the measures of investment policy in tourism and associated incentives, Serbia will create the climate that will increase the amount of capital investments in tourism, which will have a multiplier effect on employment and also the entire economy.

Industrial characteristics and air emissions: Long-term determinants in the UK manufacturing sector

Empirical assessments of the relationship between emissions from the industrial sector and the characteristics of the production process are surprisingly scarce in the literature for European countries, despite the industrial sector being one of the major air polluters. In our study, we assess long-term relationship between industrial process and air emissions by building on an existing empirical framework. Our work implies re-estimating published findings for the UK industrial sector on a bigger dataset, incorporating additional observed factors which can plausibly influence the level of emissions and taking into account, for the first time in the empirical literature, unobserved common factors through cross section dependence. In comparison to previous findings we conclude that production inputs, total factor productivity and economies of scale cannot be relied upon to reduce emissions from industrial sector. We provide evidence that reduction in emissions can be reliably delivered by reducing energy consumption, encouraging fuel substitution and by encouraging market competition so that one can counteract the increase in emissions related to higher level of capital investment. We observe considerable similarities in the relationship between market concentration on one side and industrial emissions and innovation on the other side. This is an interesting result in for the energy and environmental economic literature as the relationship between the level of emissions and market structure is a considerably under-researched area.

Assessment of financial and economic security of the region (based on the relevant statistics of the Donetsk region)

In the article, the indicators of financial and economic security of Donetsk region are analyzed. The task of setting statistical estimation of financial and economic security of the region in modern conditions is based on the official materials of the State Statistics Service. For the possibility of further econometric modeling and forecasting, only quantitative indicators are used. This approach limits the number of evaluated indicators, but is considered the most objective. The analysis of financial and economic security is carried out in the context of two spheres of regional development: economic and social. The conducted analysis of the dynamics of the main socio-economic indicators of development of the Donetsk region for the period 2012–2016 allowed to identify the main trends characterizing the development of the region’s economy; provide an assessment of the financial and economic security of the region and identify some “problematic” places of financial and economic security in Donetsk region. Some of the most acute problems were identified in the assessment of financial and economic security and the features of state-legal provision of financial and economic security in the present conditions, as well as the proposed algorithm for monitoring the financial and economic security of the region. The analysis allowed to identify some “bottlenecks” of financial and economic security in the Donetsk region and to demonstrate that close attention and monitoring are required by the level of capital investments, the level of unemployment and the share of households with incomes per month below the legal living wage. The study enables to minimize the risks to form effective directions in assessing the financial and economic security of the region and proposes to optimize on a legal basis the whole mechanism for ensuring the financial and economic security of the region. As a result, the research revealed the most acute problems in assessing the financial and economic security of the region and proposed an appropriate algorithm for monitoring its level.

Assessment of Financial and Economic Security of the Region (Based on the Relevant Statistics of the Donetsk Region)

In the article, the indicators of financial and economic security of Donetsk region are analyzed. The task of setting statistical estimation of financial and economic security of the region in modern conditions is based on the official materials of the State Statistics Service. For the possibility of further econometric modeling and forecasting, only quantitative indicators are used. This approach limits the number of evaluated indicators, but is considered the most objective. The analysis of financial and economic security is carried out in the context of two spheres of regional development: economic and social. The conducted analysis of the dynamics of the main socio-economic indicators of development of the Donetsk region for the period 2012–2016 allowed to identify the main trends characterizing the development of the region’s economy; provide an assessment of the financial and economic security of the region and identify some “problematic” places of financial and economic security in Donetsk region. Some of the most acute problems were identified in the assessment of financial and economic security and the features of state-legal provision of financial and economic security in the present conditions, as well as the proposed algorithm for monitoring the financial and economic security of the region. The analysis allowed to identify some “bottlenecks” of financial and economic security in the Donetsk region and to demonstrate that close attention and monitoring are required by the level of capital investments, the level of unemployment and the share of households with incomes per month below the legal living wage. The study enables to minimize the risks to form effective directions in assessing the financial and economic security of the region and proposes to optimize on a legal basis the whole mechanism for ensuring the financial and economic security of the region. As a result, the research revealed the most acute problems in assessing the financial and economic security of the region and proposed an appropriate algorithm for monitoring its level.

Measuring Chinese Marine Environmental Efficiency: A Spatiotemporal Pattern Analysis

Environmental efficiency standards are often used to evaluate the costs of oceanic economic development. A variety of statistical analyses were applied in this study to quantify the marine environmental efficiency of 11 Chinese coastal provinces and municipalities between 2000 and 2014. Results initially reveal that environmental efficiency measures that incorporate undesirable outputs are more consistent with real production conditions and thus the use of marine economic and environmental efficiencies supplement and complement one another. Second, overall marine environmental efficiency across China tends to be low and can be spatially characterized by a transformation such that the inefficiencies noted in 2000 have subsequently been transformed to comprise a three-tiered structure that encompasses northern, central, and southern cores. Third, variation in absolute and relative marine environmental efficiency differences for the coastal regions of China have been consistent over time; values initially decreased before increasing again in a fluctuating manner over the time period of this analysis. Fourth, data show that the Pearl River Delta area has experienced the highest rate of change in marine environmental efficiency over time when economic zones are used as basic research units, although values have nevertheless fluctuated significantly. Fifth, values for total factor productivity as well as technical efficiency and change across the Chinese marine economy all fluctuated over time but increased. Data show that changes in marine environmental efficiency across China can primarily be attributed to progress in marine science and technology. Finally, levels of capital investment and marine industrial pollution intensity are not significantly correlated with marine environmental efficiency. Indeed, both marine industrial structural levels and environmental protection technologies have had a positive effect on environmental efficiency while levels of investment in marine scientific research as well as the scale of economic development, the marine economy, and the degree of external openness have all exerted negative effects on this key variable.

Swing for the Fences When the Economy is Slumping: Capital Investments in the Macro-Economic Context

Environment plays a powerful role in the strategic decisions of the firm, and a fundamental strategic decision faced by the firm in this environmental context is determining the amount of capital resources to invest in the business each year. Factors affecting the decision may include an assessment of how executives choose to invest capital among the different opportunities available to them, the geographic location where capital investments are made, and why the level of capital investment fits the current industry environment. But the decision of when to invest, an important strategic phenomenon identified by executives and in the business press, has been generally overlooked by scholars. Our empirical analysis indicates that most firms typically invest more capital when the state of the macro-economy is expanding and less during a downturn. In spite of this common investment pattern, we theorize and then find a consistent profit advantage for firms that invest more capital when the macro-economic cycle...

Does CSR Contribute to the Development of Rural Young People in Cultural Tourism of Sub-Saharan Africa? Evidence from the Niger Delta in Nigeria

Handicrafts are key cultural products consumed in the Nigeria’s tourism industry. Owing to low entry barriers, as handicrafts require a low level of capital investment, there is potential to develop viable linkages between tourism and local handicrafts sectors that create economic opportunities for local artisans. Thus, we assess the impact of a new corporate social responsibility (CSR) model of multinational oil companies on the development of rural young people (RYP) in cultural tourism in the Niger Delta of Nigeria. Six hundred RYP were sampled across the rural Niger Delta region. Using the logit model, results indicate that RYP have remained widely excluded from the General Memorandum of Understandings (GMoUs) interventions in cultural tourism projects due to the traditional beliefs that cultural affairs are prerogatives of elders, a caveat to the youths. This implies that if the traditions of the communities continue to hinder direct participation of the RYP from the GMoUs cultural tourism project interventions, achieving equality and cultural change would be limited in the region. The findings suggest that since handicrafts are key cultural products consumed in the tourism industry, GMoUs can play a role in helping to create an appropriate intervention structure that will be targeted towards youth empowerment in the area of traditional handicraft. This can be achieved if the Cluster Development Boards (CDBs) would focus on integrating rural young artisans into local tourism value chains and ensuring that they benefit economically from the sector. The CDBs should aim at creating space for the views of rural young indigenous people’s handicrafts; emphasizing the value of indigenous knowledge, particularly on arts and crafts for tourists and expatriate in multinational corporations in Nigeria.

Female franchisees; a lost opportunity for franchising sector growth?

The purpose of this study is to investigate why female franchisees are under-represented in franchise ownership. A qualitative approach was adopted using a collective, instrumental case study of 30 female franchisees. A number of different types of influences were identified in the literature and then elucidated and assessed. It was found that push and pull factors, work–family life balance, franchising sector characteristics and external influences act as variable incentives and disincentives among female franchisees’ selection of the franchise business model with different levels of risk-taking propensity. The marketing efforts of franchises would be more effective if the way in which the identified influences that impinge on the selection of the franchise business model informed the prospecting of potential female franchisees. A further need is identified for franchises to adjust their recruitment programmes to reflect the variable effect of incentives and disincentives at different levels of capital investment. Limited research specifically examines the selection of the franchise business model by female franchisees with various levels of risk-taking propensity and identifies the nature of influences that act as incentives and/or disincentives on that selection decision.

The Impact of 9/11 on the Self-Employment Outcomes of Arab and Muslim Immigrants

This paper examines the effects of 9/11 on the self-employment outcomes of Arab and Muslim immigrants. Using CPS Data 2000–2005 and a difference-in-differences approach, I analyze the changes in their self-employment entry/exit decisions and earnings after 9/11 using native whites as the main comparison group. I find that the Arab and Muslim immigrants are less likely to enter self-employment after 9/11, especially into industries that require higher levels of capital investment. However, there is no evidence that 9/11 has negative impacts on their exit decisions or earnings. The paper further documents a shift of Arab and Muslim immigrants’ businesses toward industries such as construction, finance/real estate/insurance services, and professional services after 9/11, areas in which they have performed well.

A Fuzzy-AHP Method for Selection Best Apparel Item to Start-Up with New Garment Factory: A Case Study in Bangladesh

The readymade garments industry is rapidly growing and now it is the single highest export earner for Bangladesh. This business sector becomes an attractive investment destination to the country’s new young entrepreneurs upcoming due to its cheaper labor cost, lower investment cost, availability of resources, governments support, etc. than the other sectors. However, many other factors are often needed to consider in investing in this garments sectors. Again, in garments sectors, there is a wide range of apparel items like shirts, trousers, jackets, sweaters, etc. options that are available to invest. Different types of apparel items demand different types of resource requirements, diverse level of capital investment, operator’s skills, and it is also related to the many other factors. Again, all the investors are not in same stand points according to their business handling capabilities, capitals in hand, business locations and so many other aspects. This paper proposes a methodology for selection best apparel item among different alternatives that will provide a decision support to the investors in opening a new garment factory. The proposed methodology is based on Analytical Hierarchy Process (AHP) under fuzzy environment. The approaches allow the decision maker to use expert’s judgment in the form of linguistic expression in the evaluation process. In the application of proposed methodology, the best apparel item is selected for opening a garment factory in Bangladesh at present conditions.

Competitiveness Of Advanced Technologies For Production Of Electricity And Alternative Liquid Fuels

Technical and economic aspects of synthetic liquid fuel and electric power combined production within one energy-technology installation (ETI) are considered. The range of prices for alternative liquid fuel (ALF) produced by the installations, depending on the cost of consumed fuel, price of supplied electric power and level of capital investments, has been ascertained. The studies made suggest the conclusion that combined production of dimethyl ether is more efficient from the energy and economic viewpoints than methanol production. Besides, a certain level of oil prices was identified, its excess implying that production of ALF, i.e. dimethyl ether, will be more economically efficient than production of motor fuel from oil.

Techno-economic assessment of natural gas displacement potential of biomethane: A case study on domestic energy supply in the UK

Mathematical modelling and optimisation at both household and energy supply network levels were developed to study the transformation of the natural gas-based domestic energy supply system with the introduction of biomethane generation, processing and utilisation based on a range of feedstock and conversion technologies. Biomethane processing includes, among other options considered, the conceptual development of a novel approach for upgrading biogas which utilises existing onshore natural gas processing capacity. Four different objective functions were considered for optimisation, representing different economic and environmental propositions, to identify the best path for introducing biomethane with multiple types of feedstock. Applying these objective functions to UK’s domestic energy supply, and assuming a range of subsidies available, it was established that a technically significant displacement of natural gas could be achieved, with displacement capabilities of 48%–72%, and greenhouse gas (GHG) reductions between 64% and 80%. Economically, these ranges of achievement would correspond to various levels of capital investment and economic viability, depending on the objective functions. Those cases leading to a positive net present value (NPV) appeared to heavily rely on subsidies and could run into a significant loss if subsidies were removed in the operational phase. In contrast, optimisation not assuming any subsidies in the first place could lead to a fundamentally economically viable system, but at the cost of a significantly lower level of biomethane penetration compared to the cases assuming subsidies. Overall, the results have indicated the importance of carefully selecting optimisation objectives, and revealed the potential consequences of adopting financial subsidies in developing the biomethane infrastructure.

The Effect of IFRS on Investment Decisions: European Evidence during Crisis and Non Crisis Economic Conditions

This study investigates the effect of a change in financial reporting regulation, the adoption of International Financial Reporting Standards (IFRS), on investment decisions in Europe. It further investigates whether capital investment decisions were influenced by the adverse macroeconomic conditions that took place during the crisis period in the Eurozone in years 2008-2010. Moreover, we control for the fact that the impact of the IFRS adoption may differ depending on a) the timing of the adoption i.e. voluntary versus mandatory adopters and b) the legal enforcement and corruption levels. We provide evidence that financial reporting practices of mandatory versus voluntary adopters cause significant differences in (a) the cost of equity capital, (b) the level of capital investments and (c) the return on invested capital. Our evidence suggest that mandatory adopters improved the level of capital investments and the return on invested capital in the post IFRS period and that the cost of equity capital was reduced. These evidence are more pronounced under the strong legal enforcement environment. For the group of voluntary adopters, we verify also a significant reduction in the cost of equity capital in the post IFRS adoption period. Regarding their investment practices, we document higher level of capital investment relative to mandatory adopters in both the pre and post IFRS period and even after controlling for the legal enforcement environment. We provide evidence that during the crisis period the cost of equity capital was increased for both groups. Nevertheless, our results suggest that both groups keep their investment policy unchanged by not reducing the level of capital investments.

Predicting land use change on a broad area: Dyna-CLUE model application to the Litorale Domizio-Agro Aversano (Campania, South Italy)

The long-standing awareness of the environmental impact of land-use change (LUC) has led scientific community to develop tools able to predict their amount and to evaluate their effect on environment, with the aim supporting policy makers in their planning activities. This paper proposes an implementation of the Dyna-CLUE (Dynamic Conversion of Land Use and its Effects) model applied to the Litorale Domizio-Agro Aversano, an area of Campania region, which needs interventions for environmental remediation. Future land use changes were simulated in two different scenarios developed under alternative strategies of land management: scenario 1 is a simple projection of the recent LUC trend, while scenario 2 hypothesises the introduction of no-food crops, such as poplar (Populus nigra L.) and giant reed (Arundo donax L.), in addition to a less impactful urban sprawl, which is one of the main issues in the study area. The overall duration of simulations was 13 years, subdivided into yearly time steps. CORINE land cover map of 2006 was used as baseline for land use change detection in the study area. Competition between different land use types is taken into account by setting the conversion elasticity, a parameter ranging from 0 to 1, according to their capital investment level. Location suitability for each land use type is based on logit model. Since no actual land use already exists for the alternative crops investigated in scenario 2, a suitability map realised through a spatial multicriteria decision analysis was used as a proxy for its land use pattern. The comparison of the land use in 2012 and scenario 1, evaluated through the application of Kappa statistics, showed a general tendency to expansion of built-up areas, with an increase of about 2400 ha (1.5% of the total surface), at the expense of agricultural land and those covered by natural vegetation. The comparison of the land use in 2012 and scenario 2 showed a less significant spread of built-up areas, affecting approximately 750 ha (0.5% of the total surface). Moreover, the introduction of alternative crops on about 10,000 ha, that is 6.8% of the total surface, would result in a significant decrease of arable land and a lower decrease of permanent crops, respectively equal to 6800 ha and 2900 ha. This work highlighted the importance and the potential of predicting land-use change models as valid tools supporting decisions, especially in those regions needing interventions aimed to environmental remediation, as in the case study examined in this paper.

Hedging and hedging effectiveness under required disclosures: a study of the impact of derivatives use on capital investment

The purpose of this paper is to study the impact of derivatives use on corporate capital expenditures by utilizing reporting changes under the disclosure requirements of the Statement of Financial Accounting Standards 133 (SFAS 133). The standard requires firms to recognize and report the use of derivatives in their financial statements, including its purpose and its hedging effectiveness. This greater transparency is expected to incentivize firms toward demonstrating greater effectiveness in their derivatives use for hedging purposes. The literature on the real consequences of derivatives use is limited, probably due to the difficulty of ascertaining its hedging effectiveness in addition to its purpose, which is made possible under SFAS 133. Since effective hedging reduces risk exposure, lowers the costs of financial distress, and mitigates underinvestment, it can have a real effect in the form of raising the level of capital investment. The research in this paper distinguishes itself from earlier studies in linking derivatives use to hedging and hedging effectiveness in its study of the impact of derivatives use on capital investment. I find evidence supporting a positive effect of derivatives use on capital investment. Additionally, a lower risk exposure that can be linked to hedging effectiveness, as it is under SFAS 133, is shown to have a positive impact on capital investment. From a policy standpoint, the results suggest that required disclosures may have a real impact if they provide affected firms with an incentive to change their behavior while meeting the disclosure requirements.

Technical Efficiency and Its Determinants of Rice Production in Cambodia

The present study aims to measure the technical efficiency and establish core factors affecting rice production in Cambodia. A four‐year dataset generated from the central government document “Profile on Economics and Social” of 25 entire provinces between 2012 and 2015 and the stochastic production frontier model (SFA) was applied. The results indicated that the level of output (quantity) of Cambodian rice production varied according to the different level of capital investment in agricultural machineries, total rice actual harvested area, and technical fertilizer application within provinces. Furthermore, evidence revealed that the overall mean efficiency of rice production is 78.4%, which implies that there is still room to further improve technical efficiency given the same level of inputs and technology. More importantly, the findings revealed that irrigation, production techniques and amount of agricultural supporting staff are the most important influencing factors of rice production’s technical efficiency in Cambodia. In conclusion, the present study strongly recommends the development of irrigation systems and good water management practices to be considered and bring about more effective actions by the central government as well as related agencies for improving rice production in Cambodia in addition to capital investment and improving technical skills of supporting staff and rural farmers.

Why are researchers paid bonuses? On technology spillovers and market rivalry

A temporary change in pay to employed inventors around the time of patent application has been documented. A theoretical model is here developed to provide an explanation to said findings based on the idea that inventors may be able to use the knowledge previously generated while working in a firm, in a rival company. The model features firms who hire workers in R&D functions to make product innovations. The innovation process consists of distinct phases each with different access to information about the innovation value for firms. Firms compete to attract workers, and workers can transfer part of the generated new knowledge to a new employer. Results suggest that the capital intensity of R&D investments, and the type and size of knowledge spillovers, may affect the probability to observe bonus pay at the time of a patent application.Different tax incentives and subsidies are then studied as a means to correct for possible under-investment of capital. We study the effect of a patent box, a subsidy to R&D capital investments, and a subsidy to bonus pay. When market rivalry prevails over positive knowledge externalities, a bonus pay incentive was found to obtain the social first-best while a patent box or a subsidy to capital investment would cause overinvestment. When positive knowledge externalities prevail, either a patent box or a subsidy to capital investment obtain the social optimal level of capital investments.