Supply Of Capital Research Articles

Peer Influence and IT Career Choice

The productivity of the information technology (IT) industry depends on the supply of high-quality human capital, especially of managers who contribute to operational, finance, sales and marketing, and leadership roles. This study examines the influence of IT peers on the choice a management student makes to pursue a career in the IT industry. Analyzing student networks at a leading business school in India, we find that having peers who have worked in IT reduces the likelihood of receiving and accepting an offer in the IT industry. If a student has no IT experience, however, IT peers ameliorate this effect to a certain degree. Our study has important implications for the IT industry and for management schools. First, managers trying to exploit peer-to-peer learning as a way to train workers ought to be aware that negative messages could be transmitted along with positive ones, leading to productivity loss. Second, we highlight that peer influences are important when managers in emerging economies choose their occupations and industries. Managers seeking to attract more talent to the IT industry should keep this channel in mind while designing recruitment strategies.

The impact of private equity investment and renewable energy on environmental degradation: evidence from BRICS countries

PurposeLarge-scale industrialization, growth and development have come at the cost of severe environmental degradation, primarily measured in terms of carbon dioxide emissions. Apart from the several measures taken to reduce enviornmental degradation, provision of private capital is a necessity apart from the public capital. There is a debate on impact of carbon dioxide emissions with increase in affluence, technology, population and renewable energy. The purpose of the study is to look into the role of private equity investment on renewable energy and technological patents.Design/methodology/approachThe study extends the use of stochastic impact by regression on population, affluence and technology model to include another factor for investments and capital, i.e. private equity along with renewable energy, population, technology and GDP growth on carbon emissions for the BRICS countries. The time period for the study is from 2002 to 2021, and the relationship between the variables has been tested using pooled mean group/autoregressive distributed lag, fully modified ordinary least squares and panel quantile regression.FindingsFirst, the results depict a log-run relationship between the variables across the panel using cointegration. Private equity investments do not have a significant impact on carbon emissions. The study proposes important policy implications. There are two schools of thought on the impact of private equity on carbon emissions. For example, inherently private equity investments come with higher stakes and a shorter holding period because of which their primary focus remains on having higher returns instead of responsible investing. However, as private equity adds up to capital, which leads to an increase in productivity and eventually higher economic growth, this could affect carbon emissions. This study supports the first thought. Additionally, renewable energy also affects carbon emissions positively. The policymakers should look into the role and intent of the private equity investors in green investments and invest in technologies and patents that can lead to energy consumption.Originality/valueThe paper is the first of its kind, to the best of the authors’ knowledge, to look into the impact of private equity on renewable energy and technological patents.

Економічне оцінювання ефективності використання людського капіталу авіаремонтними підприємствами

The article examines the peculiarities of the economic evaluation of the effectiveness of the use of human capital on the example of the leading aircraft repair enterprises of Ukraine. Indicators for evaluating the economic efficiency of human capital of aircraft repair enterprises are proposed. Calculations of indicators of the effectiveness of the financial provision of human capital, indicators of the economic efficiency of the construction of the structure of human capital, and indicators of the effectiveness of financing the social development of human capital were carried out. Performance indicators of five leading Ukrainian aircraft repair companies specializing in the restoration and modernization of military aviation equipment were used for calculations. Conducting an economic evaluation of financial support for the social development of human capital of aircraft repair enterprises allowed to reveal positive changes in the amount of financial support (increase in 2021 by 9.12%), which the studied enterprises allocate per unit of human capital. It was also established that the values of the indicators of financial provision of human capital and the efficiency of social financing almost do not differ at existing aircraft repair enterprises, mainly responding to the financial results of activity. The conducted studies showed that indicators of the economic efficiency of financing the social development of human capital of aircraft repair enterprises have a tendency to change mainly under the influence of generalized factors of economic influence, which are complexly formed on the basis of factors of direct and indirect action in the activity of aircraft repair enterprises. It is proposed to divide the calculation results of each integral indicator into three ranges. This approach will make it possible to compare the efficiency of the researched aircraft repair enterprises in different years. The results of the study showed that the total inefficiency of human capital development occurs in 70.6%. It was established that aircraft repair enterprises pay little attention to financing the development of human capital, which became the reason for low efficiency.

Internet development and the spatial optimization of regional productivity: Evidence from China

AbstractThe rapid development of the Internet had a profound influence on the spatial distribution of economic output activities. On the basis of theoretical analysis, this study takes China's regions as research samples and construct a spatial econometric model to empirically analyze the impact of Internet development on regional productivity. The analysis reveals that the distribution of regional productivity in China had significant spatial correlation; regional productivity had positive spatial externalities; Internet development had significant promotion effects and positive spatial spillover effects to regional productivity, but the effects are heterogeneous in different subregions. The subregion analysis shows that the optimization effect of the Internet on regional productivity exhibits heterogeneity in different subregions. The threshold effect analysis reveals the increasing marginal effect of Internet development on regional productivity, and economic development and human capital supply are important factors restricting this marginal effect. Altogether, this study provides useful references on the positive effects of the Internet on regional productivity in the spatial dimension, and suggests that the policy makers can optimize the spatial distribution of regional productivity by promoting Internet access in various regions and narrowing the digital divide among regions.

Higher Education and Local Innovation Systems: Lessons From Public Attitudes in Shenzhen, China

This article examines public attitudes on the local innovation system of Shenzhen with a focus on the role of the local government and higher education (HE). Based on data collected from an online platform, Zhihu, this article examines netizens’ perceptions of local government, institutional environment, HE and labour force development. Text analysis reveals that netizens hold relatively positive attitudes towards the local government and the future development of Shenzhen due to its fair institutional environment. Local HEIs needs to be further developed to support Shenzhen’s economic transformation but the close linkage with Hong Kong universities help to mitigate the challenges in human capital supply. This paper presents a novel way of examining public perceptions on local innovation systems and the case of Shenzhen also provides policy lessons to other cities aiming at developing innovation centres.

The phenomenon of traditional philanthropy through the voluntary sector in shaping community identity

The role of the state is needed to suppress illegal philanthropic practices, how the state can make Pancasila a "civic religion". Pancasila as the basis and pillar of society's civility as well as the "social glue" where sanctified spaces and symbols become markers of social identification that connect individuals in a common bond. The purpose of this research is to discuss the phenomenon of traditional philanthropy through the voluntary sector in shaping community identity. This research uses qualitative research methods, with the research design using a descriptive approach research design. In this study, the author conducts library research, then describes the phenomenon of traditional philanthropy through the voluntary sector in shaping community identity. The results show that philanthropy develops along with the development of human life itself. Voluntary sector refers to organizations whose primary goal is to create social impact rather than profit. This is often called the third sector, civil society or the nonprofit sector. The value of social justice and community welfare, especially in developing community identity empowerment, such as health services for poor families, economic empowerment, scholarships, job training, capital provision for middle to lower traders and others aimed at empowering community identity through philanthropy.

Digital finance and the low-carbon energy transition (LCET) from the perspective of capital-biased technical progress

Digital finance is a new driving force for the low-carbon energy transition (LCET). Using panel data on 283 cities in China, we analyze the impact of digital finance on LCET and decompose LCET into low-carbon energy efficiency transition and low-carbon energy structural transition. Digital finance improves carbon total factor productivity and the proportion of clean energy consumption in total energy consumption, which has a significant positive effect on LCET. This positive effect is attributed to the environmental benefits of capital-biased technical progress. Technological progress strengthens the scale effects and price effects of capital and replaces production factors such as energy, especially nonclean energy, thus promoting energy utilization efficiency and clean energy development. Currently, digital finance is more conducive to promoting the low-carbon energy efficiency transition compared with the low-carbon energy structure transition. Strengthening financial supervision and narrowing the digital usage divide optimizes capital supply and generates financial demands so that digital finance can support LCET. Improving the environmental preference of local governments can enhance the positive effect of digital finance on LCET. Digital finance support for LCET is mainly at the stage of broadening the coverage, with a relatively limited effect of deep cultivation. The application depth of digital finance in the field of energy transition should be further strengthened. This study provides a theoretical reference for the means to achieve effective cohesion between capital demand and financial resource supply in the energy transition stage and provides new enlightenment for the realization of the goals of carbon peaking and carbon neutrality.

PRODUCTIVE ZAKAT TOWARDS ECONOMIC ARMALAH IMPROVEMENT OF MAKASSAR CITY COMMUNITY IN YATIM MANDIRI MAKASSAR

LAZNAS Yatim Mandiri Makassar distributes productive zakat to overcome economic disparities or poverty that occurs to the armalah (widow) of the Antang community, sub-district It is hoped that at Manggala, the underprivileged family will become more prosperous and able to be independent. This type of research is a case study with a qualitative approach, primary data sources are sourced from program staff and branch heads and admin and financial staff of LAZNAS Yatim Mandiri Makassar and armah as members of the BISA program (Bunda Mandiri Sejahtera). While secondary data sources are data sourced from institutions including annual reports on institutional profiles, institutional vision and mission, institutional programs, and journals used to support and complete primary data. The productive zakat management model of the Bunda BISA program has been proven to have the effect of increasing the economy of the community of Antang sub-district Manggala Makassar City and the gifts given are the provision of business capital, spiritual guidance, and providing knowledge related to managing a business properly and providing necessities to Armala every month, with this effort they can fulfill their life needs.

Impact of carbon trading policy on corporate capital structure: Empirical evidence from China

Introduction: The Chinese government has taken the lead in proposing a carbon trading market policy to address the negative impact of excessive carbon emissions on global climate change. Since this policy’s implementation in 2011, it has had a profound impact on economic development and the structure of the national economy. In this context, we aim to study how environmental regulation and transition risks associated with climate change affect corporate capital structure.Methods: Based on data provided by listed companies in China’s energy-intensive sector, this study uses a Difference-in-Difference (DID) model to examine the effect of the carbon trading policy on corporate capital structure.Results: According to our results, we predict that the carbon trading policy will significantly reduce the corporate debt ratio, which remains true even when an instrumental variables approach is used to account for endogeneity and after robustness tests are conducted. This study also shows that the negative effect of the carbon trading policy on corporate capital structure is mainly a product of internal capital demand and external capital supply. In addition, the reduction effect that the carbon trading policy has on the corporate debt ratio is more significant among firms with lower government subsidies and among nonstate-owned firms.Discussion: These findings imply that under the implementation of a carbon trading market policy, firms’ financial decision-making will change significantly in response to the policy-induced shocks of elevated corporate risk behaviour.

Land use policies and their effects on Brazilian farming production

For decades Brazil has faced a dilemma based on a perceived dichotomy between natural preservation and economic progress. Since 1988, more than 446,000 km2 of native land has been cleared by clearcutting in Brazilian Legal Amazon alone, an area comparable to Sweden. In addition to the biodiversity loss associated with this activity, it is a significant global warming source since more than 72% of gross CO2e emissions of Brazil come from land use, land-use change, forestry, and agriculture. As such, the national commitment to reduce greenhouse gas emissions by 37% by 2025 and 43% by 2030, with respect to 2005 levels, is likely to be at risk. Here, a simulation model has been created to provide decision-makers with knowledge about the future of Brazilian farming production in deforestation, neutral net land-use change, and reforestation scenarios. It has been found that farming demand and capital supply impact farming production significantly more than land availability. If reforestation policies to 2005 natural coverage levels were to be implemented, there would be no significant differences in Brazilian major farming crop production to a reference scenario of continuous deforestation. However, this would be at the expense of secondary crops usually earmarked for the domestic market. For Brazil to preserve its natural coverage, it must also inevitably improve crop productivity, especially in the Northeast region, while also being cognizant of the impact on domestic food prices. Lastly, Brazil needs to have incentives to foster intensive livestock farming. These results provide evidence that can support policies towards the profitable and sustainable scenarios described in the simulations.

The Effect of LDR, NPL, CAR on Return on Asset of Conventional National Commercial Bank in Indonesia

Loan distribution is measured by the Loan to Deposit Ratio (LDR) and effective credit management to maintain credit collectability is measured by Non-Performance Loans (NPL). Besides that, the adequacy of the minimum capital provision is measured by a good Capital Adequacy Ratio (CAR). The purpose of this study is to prove the effect of LDR, NPL and CAR on Return on Assets (ROA). Do LDR, NPL and CAR have an effect on ROA in the 2017 to 2021 research period. The population for this study takes conventional national commercial bank entities in Indonesia during the 2017-2021 period. By using purposive sampling, a representative sample is obtained with certain criteria. This study uses a linear regression technique to examine the effect of LDR, NPL and CAR variables. The results of the study show that the Loan to Deposit Ratio and Non-Performance Loans have a significant effect on Return on Assets while the Capital Adequacy Ratio has no effect.

Earnings Management Behavior of Firms with Financial Constraints: Focusing on Firms that Issue Redeemable Convertible Preferred Stocks

Purpose: T his study aim s to e xplore t he e ffect of f inancial c onstraints o n earnings m anagement by f ocusing on firms that issue redeemable convertible preferred stocks (RCPS). RCPS are considered a financing option primarily used by firms that have investment opportunities but face difficulties in raising funds with a low cost of capital. Therefore, the issuance of RCPS can be an effective indicator to identify firms with financial constraints. Design/methodology/approach: This study employs a sample of 12,406 firm-year observations of listed companies in the Korean stock market from 2011 to 2018. The study conducts multiple regression analyses to investigate the level of earnings management of RCPS-issuing firms with respect to that of non-issuing firms. In this analysis, the earnings management is proxied by discretionary accruals and real operational activities. Findings: This study shows that RCPS-issuing firms have a higher level of discretionary accruals than non-issuing firms. Meanwhile, there is no significant difference in the level of real activities management between RCPS-issuing and non-issuing firms. These findings imply that firms with financial constraints engage in aggressive earnings management through discretionary accruals rather than real operational activities. Research limitations/implications: This study provides compelling evidence that financially constrained firms strategically use discretionary accruals to signal positive prospects for external capital suppliers, allowing them to raise the capital necessary for investment. It is also confirmed that financially constrained firms do not depend on real activities management, which sacrifices cash flows and firm value in the long run. Originality/value: T his is t he f irst s tudy t o test t he l ink between f inancial c onstraints a nd e arnings m anagement by analyzing RCPS-issuing firms that conform to the definition of financial constraints. This approach can alleviate the risk of errors in the classification of firms and the endogeneity problems accompanied by estimating financially constrained firms with firm characteristics, such as dividend payout ratio, cash flows, size, age, or a combined index of these variables.

"Dark under the lamp": ecological equity of urban agglomeration from the perspective of natural capital in China.

Although equity is an important aspect of sustainable development, equity research has mainly focused on income and economics while paying insufficient attention to ecological equity. Therefore, aiming to improve our understanding of equity and promote environmental protection, this study introduced natural capital to measure regional ecological equity and analyze its driving factors. Based on ecological footprint (EF) and ecosystem service value (ESV), we constructed evaluation indexes and drew an "ecological Lorentz curve bundle" to analyze ecological equity in the Jing-Jin-Ji urban agglomeration (JUA) from 2009 to 2020. The results showed that economic development in JUA resulted in the severe depletion of natural capital, especially biological and energy resources, and the supply and demand of natural capital was in a low-level equilibrium state. Based on JUA's population base, natural capital utilization in the region had exceeded ecological equity, and the Gini coefficient of EF based on population was close to the international warning value of 0.4. Although economic development in JUA has promoted economic equity, it has also led to environmental inequity. Large cities such as Beijing and Tianjin, as well as industrial cities such as Tangshan and Handan, have had the greatest effects on ecological equity. Moreover, the excessive consumption of natural capital stock and energy-dependent industrial structures threaten ecological equity.

Can Fintech Alleviate the Financing Constraints of Enterprises?—Evidence from the Chinese Securities Market

Whether Fintech enabled by big data technology can improve the efficiency of credit allocation and how it would do has always been the focus in the capital market, especially the intermediary mechanism, which has not yet been convincingly explained. This paper empirically tests the logical relationship and micro mechanism between Fintech and the corporate financing constraint dilemma by using the data of China’s A-share non-financial listed companies from 2011 to 2018. The research found that Fintech has a significant mitigation effect on corporate financing constraints, and the coverage capability of Fintech has a stronger mitigation effect compared to the depth of use. Mechanism research shows that the “technology enabling” role of Fintech can alleviate the financing constraints of enterprises by reducing the degree of information asymmetry between capital supply and demand sides and reducing financing costs. Heterogeneity research shows that the mitigation effect of Fintech on corporate financing constraints is more significant in enterprises with private property, non-main board listing, senior executives with high financial literacy, and enterprises with strong competitive positions in the industry. Further research shows that, in order to identify the impact of Fintech on corporate financing types under an environment without internal control defects, Fintech enables enterprises facing financing constraints to obtain more commercial credit and bank loans; at a time when it is difficult to obtain bank loans, commercial credit has become an alternative financing method of bank loans, promoting the transfer of credit resources from traditional mortgage guarantees to enterprise commercial credit. This study provides a perspective for the research on how Fintech alleviates corporate financing constraints, and it reveals the characteristics of digital empowerment in the development of China’s capital market, providing a theoretical basis and evidence supporting the formulation of relevant policies.

The capital supply channel in peer effects: The case of SEOs

We document a capital supply channel in peer effects, for the case of SEOs. Firms accelerate their SEOs – they have higher SEO hazards – when more of their peers conducted an SEO within the prior six months. The effect is stronger among older yet constrained firms than among younger yet unconstrained firms. It is also stronger after Russell index shocks that likely reduce indexer demand for a firm's equity. We document evidence of a potential underlying mechanism; information conveyed by underwriters that recently marketed SEOs of peers, thus reducing asymmetric information costs.

Conformity of Capital Provisions for Foreign Investors in the Regulations of the Investment Coordinating Board of the Republic of Indonesia

Foreign investors tend to be disadvantaged by the existence of new regulations which are derivatives of the work copyright law, so a study will be carried out and compiled to analyze the Conformity of Capital Provisions for Foreign Investors in Regulation of the Investment Coordinating Board of the Republic of Indonesia No. 4 of 2021 with laws and regulations regarding investment. The results of the research show that Law Number 11 of 2020 concerning Job Creation and Law Number 25 of 2007 do not regulate capital in setting capital requirements for foreign investment. So that legal uncertainty arises because the minimum investment value is equated with the minimum paid-up capital, while the paid-up capital is only 25% of the capital which implies that PMA must have capital of Rp. 40,000,000,000,000.00 because the paid-up capital is at least Rp. in Presidential Regulation Number 10 of 2021, the investment value is also IDR 10,000,000,000,000.00. In UUPM, PMA must be in the form of a Limited Liability Company, so based on UUPT, the issued capital must be 25%, so the law should strictly regulate capital requirements in foreign investment to create legal certainty.

Impact of Graduate Student Expansion and Innovative Human Capital on Green Total Factor Productivity

Using data from 30 provinces and cities in China from 2005–2018, panel regression models, mediation models, quantile regressions and threshold regressions were used to examine the relationship between graduate student size expansion, innovative human capital and green total factor productivity (GTFP) and analyze the influence mechanisms and heterogeneity among them. The results of the study are as follows: First, graduate student expansion and innovative human capital are the driving force for GTFP growth in China, and graduate student size expansion indirectly boosts GTFP by promoting the supply of innovative human capital, with a 73% mediating effect. Second, the effects of graduate student expansion and innovative human capital on GTFP show a trend of diminishing marginal benefits, and the estimated coefficient of the effect of graduate student scale share on GTFP has an inverted U-shaped relationship. Third, there is a significant threshold feature of industrial structure upgrading in the influence of graduate student scale expansion on GTFP. The study makes suggestions in terms of expanding of the graduate students, rationalizing the enrollment structure of universities, optimizing the regional industrial structure and creating a social innovation environment.

Mutual Fund Flows and the Supply of Capital in Municipal Financing

Mutual Fund Flows and the Supply of Capital in Municipal Financing

Mutual Fund Flows and the Supply of Capital in Municipal Financing

Mutual Fund Flows and the Supply of Capital in Municipal Financing

The impact of transparency on funding construction companies in Russia

The article is devoted to the study of the impact of transparency on the formation of funding sources, by the example of a construction industry enterprise. The literature review covers studies revealing the concept of transparency as an initial condition for creating an environment in which there is complete, reliable and open information for taking various decisions. The issue of creating a trusted environment is particularly sharp when taking funding decisions, since, for the funding party, information transparency is a risk factor influencing efficiency of funding. Generalization of the available studies has shown a special significance of such studies for subjects of the construction industry, which have distinctive funding source choice industry features. The study was conducted on a selection of construction companies of Russia. The results of the study showed that transparency has a significant impact on the ability to attract funding, especially on a long-term basis. Achieving optimal transparency allows not only increasing debt sources of financing, but also optimizing their structure due to high confidence on the part of capital suppliers. Besides, a dependence of transparency and resistance of a company to external factors is revealed, i.e., financial stability of financially transparent companies is maintained in the long-term perspective.