Level Of Capital Research Articles

The effects of stress testing on US banks' off‐balance sheet activities

AbstractThis paper investigates the effects of the new post‐financial crisis regulatory regime – risk‐based capital ratios (RBC) and stress tests – on banks' off‐balance sheet activities (OBS). We use a panel of US bank holding companies over the period 2001–2018 to examine the relationship between banks' capital levels and OBS activities. Our major finding is that banks significantly reduced their OBS exposure following the introduction of the new capital regulatory framework requirements. In particular, we show that tighter regulatory RBC resulted in a reduction of OBS activities in well‐capitalised banks. Conversely, we find that under‐capitalised banks increased their OBS activities, which suggests the possibility of regulatory arbitrage.

Disparity of Rural Income in Counties between Ecologically Functional Areas and Non-Ecologically Functional Areas from Social Capital Perspective

In China, income disparities between regions continue to widen, especially in rural areas where environmental policies are implemented, where regional development is more underdeveloped and inequality is high. This paper provides an explanation from the perspective of social capital. Based on the panel data of 2077 counties in 2001–2015, this paper finds that the difference in social capital between ecological and non-ecological functional areas is not only from the gap in the total amount but also from the gap in the income effects. Empirical evidence shows that, although there is a positive correlation between social capital and rural income, the difference between the income effects is further caused by the lower level of social capital in ecological functional areas than in non-ecological functional areas. It is proved that there is a gap between the income effects of social capital in ecological function areas and non-ecological function areas, especially among the low-income groups of the two sectors. The results of the further decomposition of the differences show that the total difference in rural income between ecological function areas and non-ecological function areas is about 40%, of which the contribution of social capital is greater than the contribution of the two sectors. Therefore, the national key ecological functional areas need to explore new models for poverty reduction through social capital.

Analysing the effect of foreign aid on industrialization: Evidence from Africa

The importance of industrialization as an engine of economic growth and structural transformation has been largely documented. Despite the benefits of industrialization, Africa has witnessed a de-industrialization in recent decades. This means that some important determinants of industrialization remain unidentified in Africa. This study fills this gap by analysing the effect of foreign aid on industrialization in 42 African countries over the period 1995–2021. Using the two-step system Generalized Method of Moments, the following results are established. First, on average, foreign aid hurts industrialization in Africa. Second, the effect of foreign aid depends on the nature of the aid since education and energy aid improve industrialization while health and humanitarian aid negatively affect it. Third, we find a U-shaped relationship between foreign aid and industrialization. Interestingly, democracy and human capital can mitigate the negative effect of foreign aid on industrialization. These results have strong economic policy implications for African countries, showing that they should put in more effort to strengthen their level of democracy and human capital in order to enjoy the positive effect of foreign aid on industrialization. Finally, this research contributes to the development of aid distribution plans that support African nations' industrialization.

Building strategic human capital resources: The effects of strategic entrepreneurship on employee recruitment and retention

ABSTRACT Although strategic entrepreneurship (SE) and strategic human capital are both crucial for competitive advantage, there is limited knowledge of how SE affects human capital levels within a firm. This study examines the relationship between SE and both employee recruitment and employee retention by drawing on an integrated framework of strategic human capital and incorporating a uniquely created direct construct for measuring SE’s complete domain. Results from survey data of 576 UK-based small- and medium-sized firms indicate that SE is positively related to both employee retention and recruitment. We document the moderating effects of corporate reputation and competitive intensity on those relations.

Return Migration and Entrepreneurship: Does Human Capital Matter?

Return migration is a topic of considerable interest in scholarly literature, with many studies suggesting that returning migrants can impact the economic development of their home country through capital accumulation and entrepreneurship. This study seeks to examine the entrepreneurial intentions of return migrants and the influence of formal education and training on their entrepreneurial tendencies. Utilizing data from the National Workforce Survey (Sakernas) in 2020 and employing logistic regression analysis, the study revealed that formal education tends to steer returning migrants towards the formal sector rather than entrepreneurship upon their return. Conversely, while training was found to potentially increase the likelihood of entrepreneurship, the effect was not statistically significant. Additionally, individual characteristics such as age, gender, and marital status were found to significantly influence entrepreneurial intentions, with older individuals, females, and married individuals exhibiting a higher propensity for entrepreneurship among return migrants. These findings contribute to the existing literature by highlighting that, on average, return migrants in Indonesia tend to have relatively low levels of education, and higher levels of human capital may diminish their interest in entrepreneurship.

Accessing diagnosis and treatment: The experience of cancer as wrangling with the system

Long term cancer survival is increasingly prevalent, and the consequences are of sociological and clinical interest. In this paper we deploy the concept of wrangling to emphasise the everyday tussle of survivorship and processes of navigating pathways through what can be an unwelcoming environment. From 2020 to 2022 81 interviews were conducted with people, Māori and non-Māori, throughout Aotearoa New Zealand identified as exceptional cancer survivors, living with a diagnosis of cancer from four to 37 years. Categories of wrangling discussed by participants included wrangling with the public drug-buying agency in Aotearoa New Zealand, wrangling between private and public healthcare systems, subaltern wrangling and wrangling across regions. Wrangling could be driven by the person with the cancer diagnosis, undertaken on behalf of that person by others including family and health professionals, and undertaken by the community. We argue that for most people with long-term cancer survival wrangling is a social practice, but the capacity to succeed in that practice is dependent on a range of factors, including levels of economic, cultural, and social capital. The concept of wrangling provides a contrast to an overemphasis in the survivorship literature on cancer as an individual experience; one largely disconnected from the art and practice of managing (often unwieldy and flawed) systems of care.

Pengaruh Modal Sosial Terhadap Kinerja Peternak Kambing Di Desa Besowo, Kecamatan Kepung, Kabupaten Kediri

Social capital is an important factor for farmers because it can support the management of livestock businesses in Indonesia. Especially because Indonesian culture still relies heavily on group activities in society. Research on the influence of social capital on the performance of goat breeders in the Besowo Village area aims to describe the characteristics of social capital (Trust, Norm, Network, Reciprocity) by identifying the level of social capital of breeders in Besowo Village, Kepung subdistrict on the performance of the livestock. The research was carried out on 1-28 September 2023 using the Systematic Random Sampling method, namely determining the initial sample randomly using the Slovin formula to obtain 82 respondents in all hamlets in Besowo Village. The results of this research show that social capital has an important role in people's livestock by utilizing the existing social patterns of society.

Renewable energy and CO2 emissions: Does human capital matter?

Numerous investigations have extensively examined the effects of renewable energy on CO2 emissions. However, a majority of previous studies have overlooked the potential nonlinear effects that renewable energy may have on CO2 emissions. These nonlinear effects could be influenced by various factors, including human capital. Regrettably, the existing literature has not adequately explored the role of human capital in this context. Therefore, the objective of this study was to investigate the impacts of different levels of human capital on the relationship between renewable energy and CO2 emissions. To achieve this objective, the study employed a dynamic threshold panel data model encompassing 67 countries, both developed and developing, over the period from 1999 to 2019. The empirical findings revealed a negative impact of renewable energy on CO2 emissions. The study found that there is a threshold effect associated with the human capital index. For developed countries, the threshold value was 3.407, while for developing countries, it was 2.949. When the human capital index exceeded these thresholds, the impact of renewable energy on reducing CO2 emissions was significantly greater. In developed countries, the impact was 4.75 times more effective, and in developing countries, it was 5 times more effective when the human capital index surpassed the threshold. The results also show human capital had a direct negative effect on CO2 emissions. Additionally, the study found that lagged CO2 emissions, fossil fuel energy consumption, population density, GDP, and industrial activities all exerted positive effects on CO2 emissions.

Dynamical analysis of healthcare policy effects in an integrated economic-epidemiological model

We study the static and dynamical properties of a model that describes the interaction between the economic and epidemiological domains. The epidemiological sphere is represented by a susceptible–infected–susceptible model, while the economic domain consists of an overlapping generations model in which the workers correspond to the non-infected population of adults. The productivity of the firms and the propensity to save for retirement of the households are negatively affected by the disease spread. A capital tax is levied and the collected resources are used to curb the spread of the outbreak. We show that multiple endemic steady states can arise from the interaction between the two domains, and different stable endemic attractors can coexist with the stable disease free steady state. We study analytically and numerically the complex dynamics and the evolution of the basins of attraction in the case of multistability. We show that the effect of taxation can be beneficial from both the epidemiological and the economic points of view, as it can give rise to new steady states characterized by reduced shares of infected people and increased capital level, it can simplify the dynamical behaviors and reduce the size of the basins of attraction of those outcomes in which large shares of infected people and low capital levels are observed.

Networks revisited: Social media, inequality and network culture in the independent television production sector

This article revisits an earlier investigation of the impact of networking practices on social inequality and creative work in the British independent television production sector. The original study analysed the role of networking as a means of finding work and developing a career, as well as highlighting the exclusion of individuals without high levels of cultural and social capital. The present study updates the earlier research, exploring how the rise of social media platforms has transformed the nature of social interactions and the implications of this for the television industry. The analysis focuses on the experiences of six of the original cohort of interviewees and six people who have entered the industry since 2015. The article examines interviewees’ social class through social origin, utilising the NS-SEC 3 class classification system, to explore the role that social class plays in networking, and whether the largely middle-class and exclusive milieu of TV production culture in the mid-late 2000s has become more or less inclusive in recent years. Through qualitative analysis of interviews, the study explores differences between the two groups in their experiences of networking, the affective costs of labour intensification, their attitudes towards inequality, and their tactics for navigating a highly socially stratified labour market. The article aims to contribute to a better understanding of the complex relationship between social networks, the television industry and wider social inequalities. The study suggests that the rise of social media has been a catalyst for a transformation in how social networking takes place in the television labour market, potentially opening up the industry but also reinforcing existing inequalities.

Training and Development, Work Performance, and Social Capital Constructs of Library Personnel in the South Manila Educational Consortium

Libraries play a crucial role in promoting information access and intellectual growth. To ensure library personnel thrive and meet diverse client needs, it is essential to understand their professional development and performance. There is insufficient research in a library working environment that integrates training and development, work performance, and social capital among personnel into a unified paradigm. This study is being carried out in this context to assess all three variables from library personnel and the findings will serve as a basis for improving training and development programs, enhancing work performance, and fostering social capital among library personnel, thus leading to informed decision-making processes related to human resource development and organizational strategy for optimizing library personnel performance and promoting a conducive working environment. The study utilized descriptive quantitative methodology, collecting data through a structured survey questionnaire from the South Manila Educational Consortium Libraries. Sixty-one (61) questionnaires were completed and returned from the total population, and SPSS was used for analysis, interpretation, frequency distribution, percentages, and mean. The findings showed that seminars, conferences, and workshops were the most available and widely used interventions of the respondents. The study also found that inadequate funding hinders training and development, with library funding being a key strategy to enhance them. Furthermore, respondents demonstrated above-average task and contextual performance, excellent counterproductive work behavior, and high levels of structural, relational, and cognitive social capital. Based on the notable results, it becomes evident that the training and development interventions of respondents were not significantly available. Additionally, it was observed that most of the library personnel made full use of the available interventions. Also, the study discovered positive work performance and the presence of social capital in the examined population. Keywords: Academic Library, Training and Development, Work Performance, Social Capital, Library Personnel

Brand capital and debt choice

This paper investigates the effect of brand capital on firms' choices of debt structure. Using a sample of publicly listed U.S. firms between 2001 and 2019, we find that firms with higher levels of brand capital rely less on bank debt financing. This finding is robust to the use of alternative regression models and alternate measures of brand capital and bank debt financing. Employing an industry-level positive shock to brand capital as a quasi-natural experiment, we demonstrate that such a shock negatively affects firms' reliance on bank debt. Our cross-sectional analyses reveal that the effect of brand capital on bank debt is more pronounced for firms with high information asymmetry, weak corporate governance mechanisms, and poor financial conditions. We also find that brand capital-intensive firms raise funds from the public debt market and issue more (or less) unsecured (or secured) debt. Taken together, we show that brand capital has an important bearing on corporate financing decisions.

The Relationship between Perceived Social Support and Bullying Behavior in Nursing Education among Nursing Students: The Mediating Role of Positive Psychological Capital

Purpose. To examine the mediating role of positive psychological capital in the relationship between nursing students’ perceived social support and bullying behavior in nursing education. Design and Methods. In May 2021, a sample of 1196 nursing students majoring in nursing at a medical college was conveniently selected as the study population. A set of questionnaires, including a General Information Questionnaire, Perceived Social Support Scale (PSSS), Positive Psychological Capital Questionnaire (PPQ), and Bullying Behaviors in Nursing Education Scale (BBNE), were utilized to examine and analyze the relationships among the variables. Findings. The scores of nursing students’ PSSS, PPQ, and BBNE were 68.19 ± 11.90, 123.97 ± 18.74, and 13.31 ± 9.24, respectively. There was a negative correlation (r = −0.421, P<0.01) between perceived social support and bullying behaviors in nursing education among nursing students. Positive psychological capital partially mediated the relationship between perceived social support and bullying behaviors in nursing education, accounting for 19.88% of the total effect. Further analysis revealed that self-efficacy, resilience, optimism, and hope in positive psychological capital each played a partial mediating role in the impact of nursing students’ perceived social support on bullying behaviors in nursing education, with the ratio of indirect effect to total effect being 5.38%, 7.74%, 6.09%, and 5.34%, respectively. Practice Implications. The impact of perceived social support on bullying behaviors in nursing education is substantial among nursing students, and it can indirectly influence bullying behaviors through positive psychological capital. Nursing educators should pay attention to nursing students with lower levels of social support, and they can decrease the occurrence of bullying behaviors by enhancing social support and fostering higher levels of psychological capital.

Examining supply chain financing: A comparative and coordination analysis under a buyback contract

This paper focuses on financing schemes for a supply chain with high salvage values of unsold products. Combining the buyback contract with a partial credit guarantee (PCG) contract and trade credit (TC) contract, we propose two financing schemes, PCG-Buyback and TC-Buyback, to provide flexible financing services for a capital-constrained retailer and obtain equilibrium strategies of each supply chain member. Furthermore, for PCGBuyback, this paper obtains a Pareto coordination frontier consisting of the credit guarantee coefficient and the buyback price at different initial capital levels, which is more flexible to achieve supply chain coordination. Finally, we analyze the manufacturer’s strategic choices of PCG-Buyback and TC-Buyback in terms of credit guarantee coefficient, buyback price, and financing rate. Our results show that PCG-Buyback is the optimal financing scheme for the manufacturer when both the credit guarantee coefficient and buyback price (or financing rate) are low; otherwise, TC-Buyback is the dominant strategy. This study explores how the risk-sharing mechanism combination of PCG and buyback contracts can provide a more flexible approach to supply chain coordination. Additionally, it highlights the significance of the manufacturer selecting a better financing scheme based on its individual characteristics.

Spatiotemporal distribution of carbon monoxide dynamics and probabilistic health risk assessment: A comprehensive sensitivity analysis across India's state capitals

Carbon monoxide (CO) is a harmful trace gas produced from the incomplete combustion of fossil fuels. Carbon monoxide (CO) poses a substantial threat to human health. The objectives of this study were to investigate carbon monoxide (CO) annual and seasonal variations with meteorological factors, study the marginal effects of weather factors on CO, analyze the impact of independent variables (meteorological factors) importance on CO distribution, time series trend analysis (Mann-Kendall and Sen's slope, additive decomposition model, and linear trend model), study the spatial distribution of CO in the capital cities and non-carcinogenic health risk in India from 2019 to 2022. The study showed that CO concentrations varied, notably across different years (from 2019 to 2022), months, and seasons. The maximum annual CO (0.91 ± 0.17 mg/m3) concentration was recorded in 2019, while the lowest was (0.67 ± 0.12 mg/m3) in 2022. Seasonally, the winter season had the highest load of CO (ranging from 0.17 to 2.17 mg/m3) in the ambient atmosphere compared to the monsoon (0.08 to 1.38 mg/m3) and summer (0.10 to 1.50 mg/m3) seasons. The analysis of the importance of the independent variables (meteorological factors) on CO indicated that temperature had the most substantial impact on CO variation, followed by wind direction, relative humidity, and wind speed. The trend analysis using different models showed a declining trend in CO concentrations over the study period. The non-carcinogenic health risk HQ values were less than 1, suggesting no notable risk. The Monte Carlo simulation revealed that the 5th and 95th percentile range of HQ risk was 0.02 to 0.07 and the sensitivity analysis of non-carcinogenic risk at the state capital level was conducted, and revealed that Delhi was at a higher risk than Chandigarh, Patna, Gandhinagar, Bengaluru, Mumbai, and others, respectively. The results of this study on CO emissions will be beneficial in creating focused plans and policies to reduce CO pollution in seasonal influences and its effects on ambient air quality and public health in the capital cities of Indian states.

Patent Protection Policy and Firms’ Green Technology Innovation: Mediating Roles of Open Innovation and Human Capital

Green innovations such as renewable energy technologies and cleaner process modifications are important technical routes and critical directions for reducing carbon emissions from industrial production processes. This study examines the impact of intellectual property protection on green technology innovation, constructing a progressive difference-in-differences model using 849 listed manufacturing firms panel data from 2007 to 2019 and taking the Chinese Intellectual Property Rights model cities as a quasi-natural experiment. Our study finds that the pilot policy significantly enhances corporate green innovation. When considering heterogeneity, the policy treatment effect is more remarkable for large firms, state-owned enterprises, and industries where technology can be easily imitated. Moreover, the mediating effect shows that the policy promotes green innovation by encouraging firms’ research and development cooperation and increasing human capital levels. This study proposes that policymakers should reinforce intellectual property protection, encourage companies to be better and bigger, and emphasize the intermediary function of open innovation and human capital in green technology innovation.

Networks, ownership and productivity does firm age play a moderating role?

Purpose The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.Design/methodology/approachWe first estimate the total factor productivity (TFP) of a large sample of Italian firms observed over the period 2010–2018 and then apply a Poisson random effects model.FindingsTFP is, on average, higher for non-family firms (non-FFs) than for FF. Furthermore, inter-organizational cooperation and firm age mitigate the negative effect of family ownership. In detail, it is found that belonging to a network acts as a moderator in different ways according to firm age. Indeed, young FFs underperform non-FF peers, although the TFP gap decreases with age. In contrast, the benefits of a formal network are high for older FFs, suggesting that an age-related learning process is at work.Practical implicationsThe study provides evidence that FFs can outperform non-FFs when they move away from Socio-Emotional Wealth-centered reference points and exploit knowledge flows arising from high levels of social capital. In the case of mature FFs, networking is a driver of TFP, allowing them to acquire external resources. Since FFs often do not have sufficient in-house knowledge and resources, they must be aware of the value of business cooperation. While preserving the familiar identity of small companies, networks grant FFs the competitive and scale advantages of being large.Originality/valueDespite the wide but ambiguous body of research on the performance gap between FFs and non-FFs, little is known about the role of FFs’ heterogeneity. This study has proven successful in detecting age as a factor in heterogeneity, specifically to explain the network effect on the link between ownership and TFP. Based on a representative sample, the study provides a solid framework for FFs, policymakers and academic research on family-owned companies.

Robots in action

AbstractThis empirical study delves into the intricate factors that shape firms' choices regarding the adoption of robots within the Spanish context. Using a dataset encompassing a diverse set of industries, we employ an empirical analysis to uncover the determinants of robot adoption and investigate the associated outcomes on market variables. Our findings reveal several key factors that significantly influence a firm's likelihood of adopting robots. We find that firm profitability, exporter status, the control variables including share of R&D, and capital intensity exhibit strong positive relationships with robot adoption. Conversely, the impact of the level of human capital on adoption decisions is less pronounced. Furthermore, our study explores the impact of robot adoption on firm performance. We observe that firms embracing robotisation experience notable improvements in the output, exporting activities, and reduction in labour cost share. This study incorporates a gradient boosting‐based machine‐learning model, specifically XGBoost, along with instrumental variable regression models, to conduct rigorous robustness analyses and validate the obtained results. These findings contribute to the understanding of the dynamics and implications of robot adoption in the manufacturing sector, explaining the factors that drive firms' decisions and the subsequent market effects.

Evaluating bank technical efficiency in SADC region

Efficiency is generally defined as the capacity to deliver desirable results with little effort or input. A bank cannot afford to allocate limited resources at random in a competitive market. Only once the efficiency factors have been identified can resources be allocated in a conscious and effective manner. The study investigates the determinants of technical efficiency of banks in the SADC region. The study is significant in the SADC region as the block is trying to create a robust and stable banking system. This is driven by the desire to stay away from the current global financial system volatility and the region is working to develop an integrated banking system. The results show that the banks are relatively inefficient with the level of inefficiency around 40 percent. The efficiency of the banks is determined by the level of capitalisation, size of the bank, research costs and automation of the banks. The results of the study imply that that there is great scope for the banks in the SADC region to increase their efficiency. Improved efficiency will ensure banks provide services at a lower cost to clients. The study recommends adequately capitalizing banks, increasing the asset base of the banks, investing in research and the automation of the banking systems.

Regional differences and dynamic evolution of high-quality development in service industry: A case study of the Chengdu-Chongqing economic circle.

The high-quality development of service industry has become an important engine for promoting sustainable economic development. This paper first constructed the evaluation index system of high-quality development of service industry, based on panel data from 2005 to 2020. Second, Kernel density, Markov chain and Dagum Gini coefficient were used to represent the regional differences and dynamic evolution of service industry, and the Koo method was used to explore the characteristics of spatial agglomeration. Finally, social network analysis was used to identify core indicators. The study found that: (1) From 2005 to 2020, the overall level of service industry first decreases and then increases, with Chengdu and Chongqing leading other cities. (2) The development of service industry in the CCEC has large spatial differences, mainly due to inter-regional differences. (3) The level of spatial agglomeration is less variable, with high agglomeration mainly in Chengdu. (4) Indicators such as the level of human capital are the core factors of its high-quality development. This study is of great theoretical and practical significance for the optimization and upgrading of service industry in the CCEC and the synergetic development of the region.