Level Of Capital Research Articles

University Admission: Is Achievement a Sufficient Criterion?

Abstract We analyse university admissions using a statistical discrimination model where students differ by ability and social group. In this university system, candidates are evaluated on the basis of their expected human capital, which includes both their innate abilities and the knowledge acquired during their schooling. Consequently, students determine their study effort based on the behaviour of universities. Interestingly, we find that students from a less advantaged group need a lower grade to gain admission to the best universities. If a university cannot discriminate between social groups, all students with the same grade will attend universities of the same quality, but with different levels of human capital.

Effect of Capital Structure on the Financial Performance of Ethiopian Commercial Banks

This study aimed to examine the effects of capital structure on the financial performance of Ethiopian commercial banks. The dependent variable, financial performance, is measured by Return on Assets (ROA), while factors such as loan-to-deposit ratio (LDR), asset-to-total equity ratio (ATER), total deposit-to-total asset ratio (TDTAR), capital adequacy ratio (CAD), and asset growth ratio (GA) were used as proxy independent variables to gauge capital structure. Using a quantitative approach and an explanatory research design, this study analyzes 6 years of audited financial reports from 14 commercial banks in Ethiopia. This investigation employs a random effect regression model and Stata 14 software package to explore the relationships among these variables. The result revealed that both the loan-to-deposit ratio and the total deposit-to-total asset ratio have a positive and significant impact on financial performance, while the asset growth ratio showed a negative effect. Based on these findings, this study recommends that bank authorities concentrate on bolstering their deposit base, managing asset growth efficiently, maintaining adequate capital levels, and optimizing leverage levels to improve financial performance and ensure long-term sustainability in the banking sector. Additionally, this research is anticipated to inform policymakers about regulatory frameworks for banks and assist banking managers in formulating effective capital financing strategies within the Ethiopian commercial banking sector, thus enriching the existing literature on the relationship between capital structure and financial performance.

“I ESTABLISHED A CASH WAQF FOR WHAT?”: EMPIRICAL ANALYSIS OF RELATIONSHIP BETWEEN SERVICES AND CAPITAL

This study investigates the effects of cash waqf-financed services on capital levels in Rumelia from a long-term perspective by employing quantitative information obtained from cash waqf deeds. Specifically, it explores the determinants of capital levels, including religious services, financing of public goods, poor support, and family support. Regression analysis generated the primary method of this study to achieve these goals. The findings reveal that religious services and family support are the predominant functions financed by cash waqfs, while financing public goods and assistance to the poor are less common. The quantitative analysis suggests that the coefficients for former services are positive and insignificant, although the effect of financing public goods is negative and insignificant. However, poor support had a positive and significant effect on capital levels. Overall, this study's findings challenge the widely accepted notion in the literature that financing public goods and assistance to the poor are prevalent in cash waqfs in Rumelia. Keywords: The Ottoman Empire, Rumelia, Cash Waqfs, Capital, Services JEL Classification: N2, N25, N85, N95

The impact of inflation on bank stability: evidence from the MENA banks

PurposeSerious concerns about the stability of the international financial systems have arisen recently, resulting from the mounting inflation rates and the accompanying procedures to control them. Consequently, this study aims at examining empirically the impact of inflationary pressures/shocks on the stability of banking sectors.Design/methodology/approachThe study adopts a dynamic GMM models and exploits a sample of 188 banks operating in 14 MENA economies, over the period 1999–2021.FindingsThis research finds that high inflation does indeed harm bank financial stability and deteriorates banks credit risk. Furthermore, the examination of the impact of interaction terms between inflation and bank-specific and institutional quality variables shows that better capitalisation levels, higher liquidity buffers, larger asset size, greater market power, foreign ownership and overall political stability, all can counterbalance the impact of inflationary pressures on MENA banks financial stability.Originality/valueIn addition to empirically revealing how inflationary shocks can deteriorate financial stability, the main novelty of this research is examining how the interactions between inflation on one hand, and bank-specific and institutional quality on the other, affect bank stability.

The Impact of Artificial Intelligence Development on Urban Energy Efficiency—Based on the Perspective of Smart City Policy

China’s economy is stepping into a new stage of high-quality development. The shift not only marks the optimization and upgrading of the economic structure, but also reflects the in-depth implementation of the concept of sustainable development. In this context, the development of AI technology is playing an important role in balancing economic growth and ecological protection with its unique advantages. This paper empirically studied the impact of AI development on urban energy efficiency by constructing panel data for 282 prefecture-level cities from 2006 to 2019 and then using the super-efficiency SBM model based on non-expected outputs to evaluate the urban energy efficiency indicators of prefecture-level cities. It was discovered that the development of AI had a key influence on increasing urban energy efficiency and the optimization of the energy structure by speeding up green technology innovation and digital economy development, which in turn improved urban energy efficiency. In terms of heterogeneity analysis, AI development had a greater impact on urban energy efficiency in the eastern region, which has higher levels of human capital, financial independence, and government intervention. This study combined the smart city pilot policy with a multi-period DID model, based on the treatment of endogeneity issues, in order to perform a parallel trend test and investigate further the effects of policy implementation on the advancement of AI in the context of improving urban energy efficiency. Accordingly, to achieve green and sustainable urban development, the relevant government departments should increase funding for AI research and development, pay attention to the introduction and cultivation of professionals, establish a platform for international exchanges and cooperation between AI and energy management, and continue to advocate for the pilot development of smart cities to increase urban energy efficiency.

The internal mechanism and impact of digital economy on China's smog pollution: based on the perspective of industrial structure coordination

ABSTRACT This study adopts an industrial structure coordination perspective to elucidate the theoretical mechanism through which digital economy (DE) development influences smog pollution (SP), and employs panel data encompassing 214 cities at the prefecture level and above in China over the period 2010–2019 to empirically examine this relationship. The findings reveal the following: (1) Industrial structure rationalisation (ISR) and advancement (ISA) positively contribute to the nexus between DE and governance in SP. Nevertheless, ISR stands amenable for refinement. (2) Despite regional variations in economic development planning and competitive investment behaviours, DE consistently hampers the SP of adjacent cities, contingent on diverse geographical weights. (3) Augmentation in science and technology expenditure and human capital levels enhances the environmental governance effect of the DE.

Does birthplace affect intergenerational social mobility of migrants in urban escalators? Evidence from China

AbstractThere is a growing body of literature on the effects of escalator regions on intergenerational social mobility (ISM) of migrants. Nevertheless, the role of migrant origins in migration outcomes remain neglected. To address this gap, this study attempts to investigate whether migrants' birthplaces continue to have an impact after they move to escalator regions and the mechanism of this impact. Using data from the 2010, 2013, and 2015 Chinese General Social Survey, our findings suggest that the effect of escalator regions on migrants' ISM varies according to the size of their birthplace. Furthermore, the birthplace effect on migrants' ISM when relocating to escalator regions is partially mediated by the birthplace effect on education. Finally, it was found that this birthplace effect varies according to dynamic human capital; migrants with high levels of dynamic human capital can overcome the birthplace effect after relocating to escalator regions.

Understanding the Impact of Intellectual Capital on Financial Performance and Its Impact on Firm Value: A Literature Review

This research aims to find out whether intellectual capital can influence financial performance, thereby, impacting company value using the journal review method. Research journals containing the variables of intellectual capital, financial performance, and company value were used. The results of the research show that there is a relationship between intellectual capital and financial performance and its influence on company value through three components contained in intellectual capital: human capital efficiency (HCE), structural capital efficiency (SCE), and capital efficiency used (CEE), including physical and financial capital. The contribution of intellectual capital to company performance will vary from one industry to another. Industries that rely on creativity and innovation will require a higher level of intellectual capital. The results of this research conclude that the existence of intellectual capital within the company is an important company asset. Companies that can manage their intellectual capital effectively will have better financial performance and higher company value. Intellectual capital can influence financial performance and company value.
 Keywords: intellectual capital, financial performance, company value

Religious transmission and cultural negotiation in first‐generation Muslim migrant parents in Italy: A qualitative study

AbstractThis study investigated the interplay between acculturation and religion in the religious transmission of first‐generation Islamic parents in Italy. Based on the model of the Big Four Religious Dimension (BFRD) the study took a multidimensional approach to religiosity to gain a detailed understanding of the different facets of religiosity and their contribution to the overall process of cultural adaptation and intergenerational transmission of religious values. Eleven first‐generation Muslim parents (nine women; mean age: 48 years) participated in a semi‐structured interview. Results showed that the tension between the desire to ‘raise good Muslims’ and for their successful integration in a non‐Muslim context challenges different facets of religiosity opening spaces for cultural negotiation which leads parents to reconsider how religious rules and identity are passed on to second generation and to develop a more conscious approach to religiosity in migration. The ability to connect religious values and identity with the context of life was greater when parents have developed a balance between the dynamics of integration in the Italian or cross‐cultural spaces of everyday life and the spaces reserved for Muslims and had a high level of cultural capital. Practical implications for implementing policies of cultural and religious pluralism are discussed. Please refer to the Supplementary Material section to find this article's Community and Social Impact Statement.

Bank Competition and Financial Stability in Nepal

This paper examines the casual relationship between bank competition and financial stability in Nepal. The relationship between competition and financial stability in banking system can be explain by two hypothesis: The "competition-fragility" theory holds that increased bank competition weakens profit margins, undermines market power, and lowers franchise value—the continuing concern or market worth of the banks above their book values and “competition-stability” view contends that financial institution stability may benefit from competition. The study used descriptive and causal research design. The random effect panel data of 6 commercial banks of Nepal over the period of 2014-2019. All the data are obtained from NRB monthly statistic and bank annual report. The HHI and n-bank concertration ratio are used as a measure of bank competition while Z-Index and non-performing loan ratio are the proxies of financial stability. The findings confirm the"Competition-frangility" theory by showing a negative association between bank competition and financial stability in Nepal. It states that bank tends to take excessive risks when the competition level increases. It is discovered that competition in the banking industry raises credit risk and reduces capital levels. Riskier policies enhance the likelihood of increased bank bankruptcies and non-performing loan ratios, which adds to fragility and financial instability. Thus, less concentrated banking systems are prone to experiences crisis.

Analysis of the Effect of Digital Financial Inclusion in Promoting Inclusive Growth: Mechanism and Statistical Verification

Abstract As the main goal of economic development, inclusive growth (IG) is an important strategic measure to achieve common prosperity. Whether digital inclusive finance can make use of the advantages of scientific and technological innovation to promote IG is of great significance to promote the fairness, effectiveness, and inclusiveness of global development. Based on the panel data of 30 provinces in China from 2011 to 2021 (excluding Tibet, Hong Kong, Macao and Taiwan), this article first measures the IG index of China from three dimensions: sustainable economic growth, income distribution, and social equity. Subsequently, the article uses a series of mathematical statistical models to verify the transmission path and mechanism of the influence of digital inclusive finance on IG. The findings are as follows: (1) The level of IG in China shows a decreasing trend from east to middle to west, while the average annual growth rate of IG in the eastern region is obviously lower than that in the central and western regions; (2) digital inclusive finance has a significant promotion effect on IG, and digital inclusive finance in the central and western regions has a more obvious promotion effect on IG; (3) digital inclusive finance can achieve IG by increasing innovation activity and improving the level of human capital. Finally, based on the research conclusions, the article puts forward relevant policy suggestions, which provide reference value for formulating high-quality national development strategies and promoting high-quality economic development.

Impact of Social Media Use on the Life Satisfaction of Adolescents in South Korea Through Social Support and Social Capital

This study investigated how social media use among South Korean adolescents influences life satisfaction, using two-wave panel survey data. Specifically, this study examined the mediating mechanism by which adolescents’ social media use is associated with their life satisfaction through social support and social capital. The results demonstrated that social support and social capital mediate the relationship between social media use and life satisfaction. Social media use is positively related to social support, and social support has a positive relationship with a higher level of social capital which, in turn, is related to a higher level of life satisfaction. This study improves our understanding of the relationship between social media use and adolescents’ life satisfaction and presents significant implications for those attempting to help such individuals promote their life satisfaction and mental health.

Community Social Capital in Community Forest Management in Poso Pesisir District

In Indonesia, commercial management of community forests began several hundred years ago. This research aims to measure the level of social capital in community forest management, and analyze its influence on community forest performance. The research was carried out using a survey method. Two villages in one district were chosen purposively. Respondents were 60 people that randomly selected from each village. The results of the research reveal that the level of social capital of the two communities in community forest management is classified as different. High social capital has facilitated the revival of good community forest performance, which is characterized by high levels of community forest productivity, as well as continuing sustainable management of community forests, the benefits of regulations. fair management and cost efficiency of community forest management. Strong social capital drives better performance. This research concludes that community social capital in managing community forests in Toini Village is relatively high, while in Betania Village it is low. Considering the differences in social capital that exist in society, the author suggests the need to increase parties, especially the government, to support forest management through increasing roles, facilitating the expansion of social networks, and strengthening the implementation of rules to the community.

Cash Waqf Formation in Sarajevo, 1526-1921: A Temporal Analysis

This study conducts a quantitative investigation of the temporal fluctuations in cash waqf formation within the Ottoman context, employing a long-term perspective. By examining the cash waqf deeds (waqfiyya) of Sarajevo, this study reveals a decline in the real capital levels of cash waqfs over time. The results further indicate that titled individuals and males were more inclined to participate in cash waqf formation than commoners and females were. In terms of services financed by cash waqfs, religious services held a larger share than the other services. Education and support for the poor were notable components of services financed by Sarajevo cash waqfs, whereas commercial facilities and infrastructure investments had lower shares of all services. The study also contributes to the ongoing debate on the emergence of family waqfs, revealing that although family waqfs were present within the institutional framework, their capital levels were relatively lower than those of non-family waqfs.

ANALYSIS OF THE INTEGRAL INDEX OF BANK CAPITALIZATION

Adequate capitalization is crucial for ensuring a bank’s financial stability and, by extension, the financial security of the entire country. This importance is especially evident in terms of both the quantity and quality of capital that a bank holds to cushion potential losses. Various indicators and ratios are employed to assess the level of bank capitalization, often subject to regulatory oversight. However, there is currently no standardized methodology for calculating and analyzing this indicator. This article aims to analyze the comprehensive index of bank capitalization levels. The calculation is based on statistical reports from 34 European countries spanning the years 2010 to 2020. The author explores the main direct and indirect factors influencing the level of bank capitalization. Direct indicators include return on equity, capital to assets ratio, and the ratio of regulatory capital to risk-weighted assets. Indirect factors include return on assets, the level of non-performing loans, the number of bank branches, the ratio of expenses to income of banks, and the ratio of bank deposits to GDP.

The Influencing Factors of Exports of Sichuan under the Belt and Road Initiative: An Empirical Study Based on the Extended Trade Gravity Model

This study investigates the influencing factors of exports in Sichuan Province in the context of the Belt and Road Initiative. Based on the panel data of Sichuan's exports to fifty-three countries along the Belt and Road from 2011 to 2022, this study tests eleven potential influencing factors using an expanded trade gravity model. And the results show that the economic development level of both Sichuan and the Belt and Road member countries have significant positive correlation with the export volume; while the distance, foreign merchant participation in Sichuan, exchange rate of RMB and human capital level of Sichuan are significantly negative. Moreover, the trade potential coefficient of each Belt and Road member country is calculated to decide the trade type. Lastly, the c onclusions and strategical suggestions are put up to further explore the trade potential with Belt and Road countries and expand Sichuans export volume.

THE ROLE OF PSYCHOLOGICAL CAPITAL IN THE EFFECT OF EMOTIONAL LABOR ON BURNOUT

In this study, it was aimed to understand the emotional labor behaviors of health professionals working in dialysis units and to determine the relationship between emotional labor and burnout. Research on burnout shows that health professionals have high levels of burnout. Working conditions have become even more difficult, especially during the pandemic period. There are few studies on healthcare professionals working in dialysis units. This is a cross-sectional survey involving 215 healthcare professionals working in dialysis units. The sample of the study consisted of physicians, nurses and dialysis technicians working in dialysis units in different provinces of Turkey. In the research findings, it was determined that health professionals working in the dialysis unit had low levels of surface acting, moderate levels of deep acting, and high levels of natural feelings, burnout levels were low in all sub-dimensions and high level of psychological capital. A statistically significant relationship was found between emotional labor, burnout and psychological capital. This research shows that health workers with strong psychological capital can perform better emotional labor regulation and experience less burnout.

Capital Regulation Reforms and Bank Risk-Taking in China

ABSTRACT Bank capital stands at the heart of banking regulation aimed at curbing bank risk-taking. This paper examines the impact of the Chinese version of Basel III capital regulation on bank risk-taking in China, by applying panel regressions to a large sample of Chinese commercial banks. Our findings indicate that more Tier 2 contingent convertible (CoCo) bonds as capital instruments in the capital composition may paradoxically increase, rather than decrease, bank risk-taking. This effect is robust to instrumental variable estimation. A channel analysis reveals that this unintended effect primarily arises from a leverage effect. This is due to the strong debt attributes of Chinese Tier 2 CoCo bonds, leading to lower core capital levels. Conversely, no evidence is found for the franchise value effect as a significant driver. Lastly, we confirm that capital constraints influence banks’ capital adjustments and asset risk allocation aligning with regulatory aims. Our paper has significant policy implications for financial regulation, shedding light on the efficacy of Basel III capital regulation while highlighting the limitations of Tier 2 CoCo bonds as capital instruments in China.

Gender features of human capital development in the Republic of Kazakhstan

The basis of this study was the analysis of the human capital reproductive processes in the Republic of Kazakhstan, considering the gender component. The object was the human capital of Kazakhstan’s regions, and the subject was the gender aspect of human capital development. Mincer’s supplemented human capital assessment model was the primary model for calculating human capital. Factors influencing the effective use of human capital in the regions, considering the gender component, were identified, and their indices were calculated. The analysis showed a persistent gender gap in life expectancy, education level, income, and labour market. Based on the results, leader and outsider regions in terms of the accumulated human capital level were identified. The analysis indicates the responsible attitude of the government of the Republic of Kazakhstan towards developing gender equality. Over the past ten years, Kazakhstan has advanced significantly in its efforts to empower women in the socio-political sphere. The Republic of Kazakhstan has assumed obligations under several international agreements, adopted many laws, and developed government measures critical for increasing women’s participation in government activities.

The Impact of COVID‐19 on Education in Latin America: Long‐Run Implications for Poverty and Inequality

AbstractThe shock of the COVID‐19 pandemic affected the human capital formation of children and youths. As a consequence of this disruption, the pandemic is likely to imply permanent lower levels of human capital. This paper provides new evidence on the impact of COVID‐19 and school closures on education in Latin America by exploiting harmonized microdata from a large set of national household surveys carried out in 2020, during the pandemic. In addition, the paper uses microsimulations to assess the potential effect of changes in human capital due to the COVID‐19 crisis on future income distributions. The findings show that the pandemic is likely to have significant long‐run consequences in terms of incomes and poverty if strong compensatory measures are not taken soon.