Earnings Capacity Research Articles

A note on using the workability index (WAI) to predict future earnings capacity losses in moderate to severe partial disability cases

Purpose Disability experts are often called upon to analyze the economic impact of an injury. Determining future economic loss in cases of disabilities is difficult, particularly when the disabilities are considered partial in nature, and the individuals have some capacity to mitigate their future income losses. This paper examines one possible approach for examining reduced future income capacity in cases of partial disabilities, the use of the Work Ability Index (WAI) and Work Ability Scale (WAS). Materials and Methods Empirical data from one-hundred six cases is analyzed using a censored tobit regression to determine the relationship between scores on the WAI/WAS and verified long-term income losses for individuals who suffered disabling events. Results The study found a high correlation between the scores obtained on both the WAI and WAS measures, and future economic loss. The results suggest that these scales may be very useful in analyzing reduced future income capacity in situations involving partial disabilities. Conclusions This study assists the rehabilitation and disability expert to better understand the implications of a moderate to severe disability on the future income capacity of an injured person. It also provides additional support for the validity of the WAI/WAS scales.

Job ladders and labour market assimilation of immigrants

Using Danish linked employer–employee data, this study examines the importance of access to higher-paying firms in the wage assimilation process among immigrants during their 25-year tenure in Denmark. Upon their arrival, immigrant workers in Denmark earn substantially lower wages than their native counterparts. However, this wage gap diminishes rapidly within the first 5–10 years, particularly among more disadvantaged immigrant groups (non-OECD and female immigrants). Immigrants who enter the labour market early have higher earnings capacity than those who enter later, but this trend reverses after 15 years. The transition to higher-paying firms constitutes a crucial factor in wage assimilation during the initial 5 years, yet it does not account for wage growth beyond this period. Additionally, this study offers suggestive evidence that Danish firms’ wage policies vary based on the duration since migration, and these differences significantly contribute to the wage assimilation process.

Workers' moral hazard and private insurer effort in disability insurance

AbstractWhile it is well known that supplementary private Disability Insurance (DI) has the potential to increase workers' moral hazard, the extra coverage may also increase incentives for private insurers to reduce caseloads by means of prevention and reintegration activities. With unique administrative data on DI contracts of firms in the Netherlands, this paper aims to disentangle these worker and insurer responses to increased coverage. Supplementary insurance increases the insurers' incentive to lower disability risks, but in our setting it also creates an incentive for the insurers to facilitate partial work resumption of disabled workers who have earnings capacity. Using firm‐ and time‐fixed effects models on the absence and employment rates, we find that insurer effort counteracts workers' moral hazard.

Role Of Fintech Adoption on Banking Sector Efficiency: A Survey Based Research Approach

Comparing financial technology businesses during the fourth industrial age to their counterparts, this study investigates the effects of these companies adhering to effective manufacturing practices. The objective is to offer actual proof of the operational effectiveness of FinTech companies and how business efficiency affects market performance. FinTech has to pass through different business models to attain the maturity as a successful pure player actor. This demonstrates that FinTech innovations improve banks' performance using several panel data estimators, including panel-corrected standard errors for linear regression, fixed effects, and random effects. Furthermore, it also show that the proportion of capital that is adequate, earnings capacity, total assets, and yearly GDP growth rate of banks also have a noteworthy beneficial influence on bank performance. By using a balanced scorecard to examine financial points of view, customer perspectives, business internal perspectives, education and growth perspectives, and competitive advantage in services growth and development, monetary advantage, and economic inclusion when implementing FinTech, this study seeks to understand the impact of these factors on banks' performance. A sample of 259 respondents was collected from people working in banking sector. The variables that identify the role of Fintech adoption on banking sector efficiency are Financial Inclusion, Data Analytics and Insights, Cost Reduction, and Improved Customer Experience.

ANALYSIS OF BANK PERFORMANCE USING CAMEL MODEL -WITH SPECIAL REFERENCE TO FEDERAL BANK LTD - AN EMPIRICAL EVIDENCE

These days, having an account with the top bank in India is a need for everyone with money. People are also less likely to be without a bank account now that the government of India has implemented the Pradhan Mantri Jan Dhan Yojna, a programme to increase access to banking services. But are you familiar with the largest banks in India, or with public sector banks in particular? In that case, you need not be concerned; we will provide you with extensive information on some of the finest banks in India, including the top ten public and private banks in the country, as well as details about the banking products offered by each. Businesses in todays cutthroat global economy need to present themselves as models of social responsibility if they want to succeed. Companies want expansion via globalisation, and they get a competitive edge in achieving this aim when they actively participate in socially beneficial programmes. Companies with a global presence are generally compelled to have a substantial impact on social concerns in each country where they operate. Failing to do so may result in massive financial losses due to government rules, environmental limitations, labour exploitation, and other related issues. An essential tool for evaluating the performance of financial institutions and banks and suggesting improvements where needed is the CAMEL model. Based on their total assets, this research takes into account ten different types of Indian banks: five public and five private. The five-year span from 2017 to 2022 is included in this research. The current research looks at how well the chosen banks have done financially. Creditworthiness, Asset Quality, Management Effectiveness, Earnings Capacity, and Liquidity are the five CAMEL metrics used to evaluate the financial institutions. Kotak Mahindra outperformed all other banks and came out on top, while Punjab National Bank came in last, according to the survey. All things considered, private banks have done better than their public sector counterparts. The purpose of this paper is to use the CAMEL model to recognize the presentation of Federal Bank Ltd. KEYWORDS: Financial Performance, CAMEL Model, Federal Bank Ltd, Profitability.

Selective exercise of discretion in disability insurance awards

AbstractVariation in assessor stringency in awarding benefits leaves applicants exposed to uninsured risk that could be systematic if discretion were exercised selectively. Using administrative data on disability insurance (DI) applications in the Netherlands, we show that even in one of the most rule‐based DI programs, there is still between assessor variation in awards, and there is systematic variation in assessment across applicants. Discretion is exercised in favor of lower‐wage applicants relatively more than it is used to benefit higher‐wage applicants. This is evident indirectly from downward discontinuities in pre‐disability wages just above benefit entitlement thresholds and directly from wage‐related differences in the extent to which assessors intervene in the semi‐automated calculation of earnings capacity. While lower‐wage applicants benefit on average, they are exposed to greater risk from between assessor variation in the exercise of discretion. Rule‐based disability evaluation can reduce, but not eliminate, between‐applicant variation in awards.

Who are the Poor Farm households' in Nigeria and is this Population Changing Over Time?

ABSTRACT: Reducing poverty in developing economies is a major challenge faced by the development stakeholders. Although poverty is a worldwide phenomenon, it has been observed that Nigeria is one of the countries that is worst hit by the poverty with biting effects more on the rural dwellers where the bulk of the population lives. Using the nationally representative household survey panel data by the World Bank/National Bureau of Statistics, from the 2012 to 2016 period to provide answers to what are the household demographic, farm, and geospatial characteristics that drive the likelihood of farm households entering, exiting, and re-entering poverty using the costs of basic needs approach as a marker of poverty. Four poverty levels were used in analyzing the household survey data. The two waves of poverty mobility in Nigeria approximately revealed 51.2 percent of poor farm households' in wave 1, and 42 percent in wave 2 were at risk of spending their entire lives in poverty. The probability of existing and entering two-year poverty mobility which started at 25 percent rose to 45 percent for four-year poverty mobility indicating that over time more farm households, have experienced changes in the status of their consumption expenditure relative to the poverty line. Close to households who begin poor, those who moved out of poverty in any of the other years had better endowments in terms of land and livestock ownership, urban residence, and involvement in non-farm income portfolios. It is concluded that older heads, higher educational attainment, engagement in crop/livestock production, and non-farm livelihood activities, strongly reduce the likelihood of farm households' poverty entry. Therefore, policy strategies aimed at dealing with poverty mobility should be heterogeneous across the poor farm households. Also, as the chronically poor lack physical assets and earning endowments, policy efforts should focus on education or other forms of skills acquisition programs in order to raise their livelihood portfolios and boost their earning capacity.

Analysis of Financial Performance of Nepalese Commercial Banks using CAMEL Approach

Bank and financial institutions require a method for assessing performance, considering some crucial financial statistics, and identifying strengths and weaknesses. The "CAMEL" model is a effective tool for assessing the performance of bank and financial institution. This model studied Capital adequacy, Asset quality, Management quality, Earnings capacity, and Liquidity condition of sample banks. The study has made a modest attempt to use the CAMEL technique to examine the performance of three commercial banks in Nepal from 2011/12 to 2020/21. Rastriya Banijya Bank, a wholly government-owned, Nepal SBI Bank Limited (NSBIL) joint venture, and Prime Commercial Bank Limited (PCBL), privately owned, were considered as a sample banks for the analysis. The result explained that PCBL and NSBIL could keep their risk-weighted assets at more excellent Tier I and II capital levels, demonstrating their financial soundness. This also revealed that NSBIL could support a higher percentage of well-performing loans. RBBL, NSBIL, and PCBL, all BFIs maintained average returns on shareholder equity and returns on assets. It also found PCBL was first in terms of the ratio of liquid assets to total deposits, followed by NSBIL banks and RBBL. In light of this, this research will be tremendously instructive to academics, researchers, and bank management. They can utilize it to create a financial plan for the effectiveness of the bank performance as a whole.

Key Factors Affecting Efficiency of Private and Public Sector Bank: Analytical Study

The foundation of every nation’s economic structure is made up of financial institutions. It consists financial institutions such as banks, credit societies, asset management companies, insurance firms and mortgage lenders. They assist the economy expand by giving their clients financial support and services. One of the key factors in the growth of the national economy is seen as being banks. The current study examines the financial results of the nation’s public and private sector banks in order to comprehend how well the bank makes financial decisions. Moreover, to identify the various factors that affect the bank’s financial stability. The research instrument used is capital adequacy, asset quality, management capability, earnings capacity and liquidity model and t-test. It can be concluded that public sector banks need to focus on strategic decisions for sustaining in the competition with private sector banks. They require to be more professional as like private players in the banking business.

Comparative Analysis of Capital Adequacy & Earnings Capacity of Select Public & Private Sector banks of India based on CAMEL Approach

The objective of this paper is to perform comparative analysis of the financial performance of 5 public and 5 private sector banks of India over a period of five years i.e. (2008-09 to 2012-13). For this purpose, CAMEL approach has been used. CAMEL is an acronym for measures Capital adequacy, Assets quality, Management soundness, Earnings, and Liquidity.
 Out of five, two measures are taken for analysis i.e. Capital Adequacy and Earnings Capacity. Ten commercial banks were selected purposively for the study. The ratios depicting the CAMEL parameters were calculated based on the publicly available information published at Reserve Bank of India, Indian Bankers’ Association, annual reports of respective banks and Moneycontrol.com.
 T Test has been applied to test four hypothesis and findings have been statistically counted.
 From the aforementioned, summarized findings, we can clearly note that private sector banks do well in terms of both indicators of financial performance.
 
 Private sector banks capital adequacy is more than public sector banks.
 Private sector banks earn more profit margin than public sector banks.
 
 It is found that public sector banks provide more net worth to the shareholders with compare to private sector banks.

Keeping up with the CSR Joneses: The impact of industry peers on focal firms’ CSR performance

Using US-listed firms from 2000 to 2015 as a sample, we report a strong enhancing effect of industry peers’ corporate social responsibility (CSR) performance on focal firms’ CSR performance. Firms improve their CSR performance by ~10.15% standard deviation when other peer firms in the same industry increase their CSR by one standard deviation. Moreover, this peer effect is more substantial when the peer firms are closer to focal firms, are included in SP500 index, and have a relatively larger size than focal firms. Focal firms are less likely to follow industry peers if they are industry leaders, have stronger earnings capacity, occupy foreign business and receive fewer analyst followings. Finally, firms following industry peers’ CSR policies achieve less product market shares and poorer performance, but a higher firm value. We suggest that executives should not blindly follow peer firms’ suit and strategically invest in CSR to achieve higher competitiveness.

Transforming a child's claim for loss of earning capacity

This article explores the possible constitutional transformation of a child's delictual claim for loss of earning capacity. As such, it is located at the intersection of the law of delict and child law. The current law on a child's claim for loss of earning capacity is explained first. It is shown that such a claim involves a concurrent violation of the constitutional rights to bodily integrity and property which common-law thinkers call a person's "personal immaterial property". A claim for loss of future earning capacity may be brought by or on behalf of a child in terms of the common law's rules for Aquilian liability. In this regard, it is noted that the assessment of future losses is a controversial legal issue because it necessarily involves speculation about future hypotheticals. While controversial, claims of this nature may be reasonably determined with reference to available evidence. In terms of the law, as it stands, factors that courts consider in quantifying a child's damages for loss of earning capacity include the average probable income, the child's schooling and familial context, wage statistics, and broad judicial discretion. It will be shown that these factors could be applied (and sometimes have been applied) in ways that perpetuate past patterns of exclusion and poverty that are often racially determined - ultimately resulting in some children's claims for loss of earning capacity being pitched below a liveable wage. Relying on the constitutional right to equality and the constitutional best interests of the child standard, it is argued that the common law ought to be developed in this regard to move our law of delict in the direction of distributive justice. In this regard, reference to "liveable wages" and "fairness" (as a consideration in exercising judicial discretion) may be appropriate guidelines used to quantify children's claims for loss of earning capacity in future.

Relationship between Earnings Capacity and Liquidity: A study of Selected Private and Public Sector banks of India

Economic development of a country depends significantly on banking services. Banks play a crucial role in the capital formation of an economy. Hence, an evaluation of financial performance of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. The performance of banking sector is perceived as the replica of economic activities of the economy. The development of the banking industry is considered as a good reflection of the development of the economy. In this paper I have made an earnest attempt to evaluate the performance of selected public and private sector banks using CAMEL approach and including its two parameters calls for earning and liquidity. The data required for the study are mainly secondary in nature. The data relating to the period of 2010-15 have been collected for the purpose. For this purpose, researcher has collected secondary data of SBI, Dena Bank, BOB, Punjab national Bank, Union bank of India from public sector banks and Axis bank, Federal Bank, ICICI Bank, Yes Bank, HDFC Bank from private sector banks.

HOUSEHOLD COMPOSITION AND THE RESILIENCE OF OLDER ADULTS AGING IN COMMUNITY DURING COVID-19

Abstract Household composition impacts older adults’ financial needs, earnings capacity, and benefits eligibility. It is also related to formal and informal LTSS access and may be associated with disparities between racial and ethnic groups since Black and Hispanic older adults are more likely than white older adults to live in multigenerational homes. The relationship between household composition and community-based aging is highly salient as multigenerational households and older people living alone are expected to increase in both number and share in coming years. This research framed the pandemic period as a stress-test to detect differences in resilience, defined as financial and LTSS stability and number of hardships, associated with older adults living alone, with partner, or with family or unrelated coresidents. Using the state-identified Health and Retirement Study (HRS), researchers developed a pre-pandemic profile of financial resources and public benefit utilization, informal and professional LTSS, and a vector of wellbeing measures by household composition type. Researchers then conducted two analyses to identify different pandemic experiences by composition type. First, wave over wave variation was regressed by household composition, noting any increased rates of instability in the 2020 wave. Researchers then used the HRS COVID-19 supplemental survey to describe pandemic hardships by household composition. About a third of HRS respondents lived in each household type. Findings, which offer a profile of resources by housing composition type and two analyses of resilience associated with composition, suggest complex relationships between household composition and resilience, but overall, residents living alone appear more vulnerable to instability.

The Effect of Good Corporate Governance on Profit Management (Case Study: Transportation Companies Listed on the IDX)

Financial statements have the objective of presenting information related to financial condition and position, performance and changes in financial position that provide benefits to a large number of users of financial information, particularly profits that have been obtained. Finance is information that shows the company's achievement in generating profits. Earnings information is a part / component of the company's financial statements that aims to inform management performance, helping to estimate representative earnings capacity in the long term. This study aims to determine the effect of Independent Commissioners, Audit Committee, Institutional Ownership, Auditor Quality and Profitability on earnings management in transportation companies listed on the Indonesia Stock Exchange. This type of research is a causal quantitative research located on the Indonesia Stock Exchange (IDX) which is accessed through www.idx.co.id with a sample size of 5 companies during the 2015-2019 period using panel data linear regression analysis. The results showed that through the Chow and Hausman tests the fixed effects model (FEM) was used. The results of the t test show that partially the Independent Commissioner, Audit Committee, Institutional Ownership, Auditor Quality have an effect on Earning Management. Simultaneously the Independent Commissioner, Audit Committee, Institutional Ownership, Auditor Quality have an effect on Earnings Management.
 
 

Impact of Literacy and Education on Earning Capacity of Tribal People with Special Reference to Kodaikanal District – Tamil Nadu

Tribal communities face unique challenges due to their heterogeneous population and their isolation from mainstream of the society. Tribal peoples are dispersed over the nation. Prior to gaining independence, not much was done to improve their living conditions. The objective aims to measure the impacts of literacy and education on earning capacity of tribal people in Kodaikanal district. Empirical research seeks, in a casual setting, to get accurate information regarding the study aim. It is possible that insightful data regarding the subject of research might be gleaned via formal interactions with the target respondents. Most researchers depend on prior works to identify research variables, however due to differences in economic and geographical contexts, this might lead to inaccuracies. The study is done in the area of Kodaikanal district which has significant presence of primitive tribal group in comparison to other areas of Tamil Nadu. The data will be collected based on the interview method which will help to find the reality in the study area. The sample size of the study is fixed to be 190 which is determined based on tribal presence in the area. The sample is selected based on the simple random sampling which is based on the finite population base in the study area. The collected data will be analysed using the SPSS -20. The statistical tools of ANOVA and factor analysis will be used for the study. The literacy of the tribal people has improved with the various tribal welfare programme and it’s revealed by the tribal opinions. The earning capacity and economic status of the tribal people can be enhanced with the imparting of education to the tribal people.

Data on the Population of Reduced Earnings Capacity-Pensioners in Germany, 2001–2020

Abstract Pensions for reduced earnings capacity (REC) have yearly made up about 20% of all pensions granted by the German Pension Insurance in the past 25 years. The dataset described in this article is a time series of cross-sectional observations for the retirement cohorts 2001–2020. It enables researchers to have a detailed insight into the population of REC-pensioners and allows observing trends and effects of reforms over time. The article provides general information on the data, first descriptive analyses, examples on possible matching with other data of the FDZ-RV and information on how to access the data.

Household specialization and the child penalty in the Netherlands

Women in the Netherlands face an earnings penalty of 47% after the birth of their first child, which is in line with previous studies. We construct several measures of relative within-household earnings potential to assess the importance of household specialization based on comparative advantage. The Netherlands offers a particularly interesting setting for studying household specialization since employees basically face no restrictions if they want to reduce their working hours. We find that women with a higher earnings capacity than their partner face lower earnings losses after childbirth and reduce their labor supply less than women with a low relative earnings potential. Yet, men’s labor market trajectories are largely unaffected by parenthood irrespective of their relative earnings potential in the household. There is thus no evidence that households divide market work and child care based on comparative advantage or bargaining power. We provide some evidence that women with high earnings potential rely more on formal child care.

Enterprise Risk Management, Risk Committee, and Earning Capacity of African Banks: A Comparative Approach

This study did a comparative analysis on the effect of enterprise risk management (ERM), risk committee, on earning capacity of African banks. The study covered a study period of ten (10) years spanning from 2009 to 2018. The study covered Nigeria, Ghana, and South Africa. Data for the study were gotten from the fiscal reports of the banks under investigation. The study was analyzed using the panel data methodology. The study found that both ERM and risk committee efficiency have the greatest effect on the earning capacity of Nigerian firms (R2 = 60%) than the rest two countries. More so, our model has shown that South Africa has performed on a closer chase to Nigeria, in generating returns to the shareholders using the regressors mentioned above (R2 = 56%). Finally, Ghana has performed the least so to say as the same variables generated or made the least input to ROE (R2 = 24%). Hence, we conclude ERM and risk committee are instrumental to improved earnings capacity of selected African banks. As such, the study recommends that regulators in African countries should enforce strict compliance and ensure that the ERM policies are implemented across banks in Africa. Lastly, corporate board should engage men that are knowledgeable in risk management.

Interest Rate Channel of Monetary Policy Transmission Mechanism and Commercial Banks Earnings in Nigeria

This study examined the interest rates channel of the monetary policy transmission mechanism and the earnings of commercial banks in Nigeria. The objective was to investigate the extent to which the interest rates channel of the monetary policy transmission mechanism affects the earnings capacity of the quoted commercial banks. Time series data were sourced from annual financial reports of the commercial banks and the Central Bank of Nigeria statistical bulletin’s various issues. Earnings measures such as earnings per share and earnings before interest and tax were modeled as the function of Monetary Policy Rate, Prime Lending Rate, Short-term Savings Rate, Long-term Saving Rate and Maximum Lending Rate. The Ordinary Least Square method of Regression Analysis was used to estimate the relationship between the dependent and the independent variables. Augmented Dickey Fuller Test, Johansen Cointegration Test, Granger Causality Test and Vector Error Correction Test were used to determine the dynamic relationship among the variables. Findings showed that short-term and long-term savings rates have negative effects while monetary policy rate, maximum lending rate and prime lending rate have positive effects on the earnings capacity of Nigerian commercial banks. Therefore, we recommend that interest rate policies should be integrated with the earning objectives of the commercial banks.