Capital Investment Efficiency Research Articles

A Study on the Convergence of Small and Medium-Sized Enterprises to Key Management Indicators by Manufacturing Industries

본 연구는 중소기업 제조업 부문에 대한 주요 경영 지표를 분석하여. 업종별로 균형 발전하는지를 분석하는 것을 목적으로 한다. 특히, 본 연구에서 경영 지표는 성장성, 생산성, 효율성으로 구분하다. 성장성 지표로는 매출액과 매출액 증가율을 활용하고, 생산성 지표로는 연구개발비 대비 매출액과 인건비 대비 매출액을 활용하며, 효율성 지표로는 부가가치율과 총자본투자효율을 활용한다. 이를 바탕으로 각 지표별로 중소기업의 업종을 상위, 중위, 하위 그룹으로 구분한다. 또한 본 연구가 관심을 두는 가설인 중위 그룹의 경영 지표는 상위 그룹의 경영 지표에 수렴하는지와 하위 그룹의 경영 지표는 중위 그룹의 경영 지표에 수렴하는지를 검정한다. 이러한 가설을 검정하기 위한 분석 방법으로는 추세 검정, 군집 분석, 클럽 수렴성 검정을 활용한다. 분석결과, 모든 지표에 대해 중위 그룹은 상위 그룹에 수렴하지 않는 것으로 나타났다. 또한 하위 그룹 역시 모든 지표에 대해 중위 그룹에 수렴하지 않는 것으로 나타났다. 이는 중소기업 역시 대기업과 마찬가지로 일부 상위 그룹에 포함되는 업종을 중심으로 발전하고 있다는 것을 의미한다.This study aims to analyze key management indicators for SMEs in the manufacturing sector. In particular, this study divides key management indicators into growth, productivity and efficiency. This paper use sales and sales growth as indicators for growth, sales to R&D(Research and Development) and sales to labor cost as indicators for productivity, and value-added rate and total capital investment efficiency as indicators for efficiency. Based on this, the sectors of SMEs are classified into upper, middle, and lower groups. In addition, the hypotheses that this study is interested in, are whether the upper group and the middle group converge and the middle group and the lower group converge. To test these hypotheses, this study carries out trend tests, cluster analysis, and club convergence tests. As a result of the analysis, for all indicators, the middle group does not converge on the upper group. In addition, lower group does not converge on the middle group for all indicators. This means that small and medium-sized enterprises are also developing mainly in the industries included in some upper groups.

Electrode segmentation in reverse electrodialysis: Improved power and energy efficiency

Reverse electrodialysis harvests energy from salinity gradients establishing a renewable energy source. High energy efficiencies are fundamental to up-scale the process and to minimize feedwater pre-treatment and pumping costs. The present work investigates electrode segmentation to strategically optimize the output power density and energy efficiency. Electrode segmentation allows the current density to be tuned per electrode segment. Segmentation experiments were performed with a dedicated electrode configuration in a cross-flow stack using a wide range of residence times. Moreover, an experimentally validated model was extended and used to further compare single and segmented electrode configurations. While operating the electrode segments, the highest efficiencies were obtained when considering the overall power, i.e. not maximized by segment. Results show that at a given net power density (0.92 W·m−2), electrode segmentation increases the net energy efficiency from 17% to 25%, which is a relative increase of 43%. Plus, at 40% net energy efficiency the net power output for a segmented electrode configuration (0.67 W·m−2) is 39% higher than in a single electrode configuration. Higher power density reduces capital investment and higher energy efficiency reduces operating costs. Electrode segmentation increases these parameters compared to a single electrode and can be potentially applied for up-scaling.

ECONOMIC EVALUATION OF THE EFFICIENCY OF UPGRADING THE STAND FOR ENGINE RUNNING-IN

Introduction. Existing stands for running-in of repaired engines require modernization, which will reduce its duration and save fuel and energy resources. The issue of determining the amount of profit from the implementation of this scientific development requires a detailed feasibility study due to the fact that the run-in is only one of the many operations for engine repair, and as a service is not provided separately. The purpose of this work is to calculate interrelated technical and economic indicators and determine the feasibility of investing in the modernization of the control device of the rolling stand. Methods. As research methods, general logical methods of cognition (analysis, synthesis), a calculation-constructive method are used. The information base of the study was the experimental data of the enterprise with an annual repair program for 737 tractor engines. The aim of the research is to calculate the interrelated technical and economic indicators (physical indicators, initial cost indicators, criteria for evaluating the effectiveness of investment in a project) and determine the feasibility of investments in upgrading the running-bench control device. Results. The obtained values of the criteria indicators of capital investment efficiency during the modernization of the control device for the rolling stand indicate the feasibility of implementing the project. Discussion. The proposed method can be used by repair companies when justifying decisions on upgrading stands for engine running-in. Since the factories are equipped with obsolete break-in stands that do not correspond to farm equipment, they require replacement. The absence of modern break-in-brake stands at repair facilities may cause a refusal to issue them a production license and product certification. In further studies, it is important to establish the dependence of changes in the costs of maintenance and repair during operation in production conditions of engines run-in on a modernized stand and on a non-modernized one. Keywords: economic assessment, modernization, bench running, engine, technical condition.

ПРУЖНО-ПЛАСТИЧНЕ ДЕФОРМУВАННЯ ГРУНТОВОЇ ОСНОВИ ПЛИТНОГО ФУНДАМЕНТА ЗА МГЕ

Scientific and technical assistance to designers of structures in complex hydrogeological conditions of construction requires solving the problems of ensuring their operational reliability, maximizing the efficiency of capital investments, improving the methods of their calculation. This task is a topical issue in geotechnics. In order to design reliably, you need to know the actual load-bearing capacity of the foundation structure. The lack of this data causes the designer to enter in the calculations due to the measured strength reserves, which leads to unreasonable price increase of the projected structure. In the work on the numerical method of boundary elements (MGE) from the standpoint of mechanics of dispersed elastic-plastic medium, the presentation of the prediction of the bearing capacity of the base plate of a 16-storey residential building is presented.

Ways of helium development in Eastern Siberia

The Baikal natural gas deposits are ten times higher than the Orenburg oil and gas condensate field in terms of helium content. The Orenburg field is the raw material base of the Orenburg helium plant, which is part of Gazprom Dobycha Orenburg. Helium is characterized by increased ability to leak out. It is no coincidence that two deposits of Eastern Siberia geographically gravitate towards the deep Baikal fault. Hydrocarbon deposits in the north of the Krasnoyarsk Territory characterized by an increased fracturing system may have interconnections with deep faults. The study of such geological conditions in the development process is promising for increasing the raw material base of helium mining. Helium production technology is based on low-temperature gas condensation. The application of membrane gas separation technology is promising. Separation blocks can be incorporated into the infrastructure of compressor stations. This approach to the deployment of helium production capacities will increase the efficiency of capital investments. Relatively small volumes of productive helium can be transported without reference to pipeline systems. The proximity to the Yenisei and the Northern Sea Route makes the issue of the development of gas condensate production relevant. Placing production wells near the intersection of several fracturing faults is also effective in terms of high inflows. Of particular interest are wells drilled near discontinuous faults. Under these conditions, one can rely on helium inflows through microcrack systems from deep horizons.

Equity Market Fragmentation and Capital Investment Efficiency

This study examines how equity market fragmentation affects firms’ capital investment decisions. Recent empirical research finds that market fragmentation lowers trading costs and thus improves market quality. We examine whether this increase in market quality translates into greater revelatory price efficiency, where stock prices reveal with greater precision information to managers and/or creditors about firms’ investment opportunities. Consistent with this notion, our findings reveal that the association between capital investment and investment opportunities is increasing in market fragmentation. Additional findings suggest that (a) market fragmentation increases revelatory price efficiency at least in part by encouraging information acquisition by equity investors and (b) the more efficient stock prices inform both managers and creditors about firms’ investment opportunities. Inferences based on difference-in-differences and instrumental variable tests are consistent with those based on our primary findings.

Experience of providing quality standards in investment projects under uncertainty

Methods. The methodological basis of the study is comparative analysis – to compare global and domestic experience in ensuring product quality. Along with this, methods of generalization and systematization were used – to identify and justify the criteria for assessing risks that are used in the practical activities of enterprises when making decisions in investment activities. Results. The European and Ukrainian regulatory documents that regulate economic activity in the field of production of cosmetics are analyzed. The requirements for the quality of cosmetic products are characterized. Examples of the implementation of general requirements for quality standards are given both in Ukrainian industries and those that determine quality parameters based on the use of Japanese kaizen practice. The main criteria are analyzed when substantiating the adoption of effective decisions in the activities of enterprises whose functioning is associated with risk and uncertainty. Five stages of the life cycle of the investment project are highlighted and the need for them to be taken into account by the investor when choosing the best investment option and determining the capital investment efficiency ratio is demonstrated. Novelty. Attention is focused on the need to determine the presence of random and systematic causes of uncertainty and its risks in the practical economic activity of enterprises. A technique has been developed that allows one to determine the value of the analyzed indicators, which are formed due to various reasons of uncertainty and risks. Various methods have been identified for describing uncertainty and risks in practice. Practical value. The implementation of the relevant requirements for product quality and their synchronization with EU requirements are a particularly important stage in industrial development, which will increase the competitiveness of domestic enterprises in the European economic space.

An optimal advertising strategy in aesthetic medicine budgets with uncertain income

ABSTRACT Considering advertising efficiency capital investment and overall revenue efficiency, this study explores how to construct the most appropriate advertising distribution of medical cosmetology, which is viewed as the overall research focus. (1) This study explores how the aesthetic medicine industry determines its optimal resource allocation ratio of advertising investment that can create maximum output value under the condition that the advertising budget for subsidiaries is limited and that advertising efficiency is uncertain. (2) The model of this study is based on the concept of dynamic programming, which is used to solve problems in multistage decision-making. Under limited advertising investment by subsidiaries in new media and traditional media advertisements, we aim to increase the number of visitors and high-consumption customers. (3) The contribution of this research is to construct a practical model for the optimal allocation of advertising investment in the aesthetic medicine industry. The research results, including a mathematical model and practical application, can be used as a reference for the aesthetics medicine industry or general companies to determine the best allocation of advertisement cost inputs.

Increasing the efficiency of budget investment of entrepreneurial activity in Ukraine

Purpose. The aim of the article is identification of budget investment trends in Ukraine and development of recommendations for increasing the efficiency of capital investments as the main form of budget investments in the development of domestic entrepreneurship. Methodology of research. The results of the study are based on the use of abstract and logical analysis (to determine the essence of capital investments as the main form of budget investment in the development of domestic entrepreneurship in Ukraine) and statistical analysis (to study the dynamics of budget investment from state and local budgets). Theoretical and methodological basis of the study is the key provisions, principles and methods of modern economic theory, finance and economics. Findings. It is established that in order to increase the efficiency of capital investments as the main form of budget investments in the development of domestic entrepreneurship, there is a need to apply transparency of evaluation and competitive selection of investment projects and programs for the development of territories aimed at activating and stimulating entrepreneurial activity in priority areas. The use of step-by-step financing of budget investments from the budget of development of local budgets is substantiated, provided that medium-term and therefore strategic expenditure planning is implemented. It is proposed to reimburse interest rates on loans for entrepreneurs who implement priority development projects of the territories, creating new jobs in accordance with the strategy of modernization of the system of social support for the population, which will allow to increase the efficiency of budget investment at the level of all regions of our country. Originality. Recommendations for increasing the efficiency of capital investments as the main form of budget investment in the development of domestic entrepreneurship by establishing the lease of land as the difference between the actual rent and the amount of a single tax from the entrepreneurs of group IV are developed. Practical value. The results of the conducted study can be used by domestic enterprises and local governments to stimulate the development of entrepreneurial activity. This will increase the financial and economic efficiency of local budget revenues from agricultural land operations, either at the lower rent level or at the lower single tax rate. Key words: capital investments; budget investments; budget; financing; strategic planning; entrepreneurship.

Socio-Economic Development of Russia in 2018-2020: Recession Threatening Stagnation

The article presents the authors’ point of view on the results of the socio-economic development of Russia in 2018 and provides an analytical assessment of forecasts for 2019 and 2020 and estimates for the immediate prospects for the development of the country. The focus is on ensuring the implementation of the May (2018) Decree of the President of the Russian Federation.The authors analyzed the state and confirmed directions to overcome stagnation, first of all, by eliminating the lag in the technological level of production and ensuring the growth in labor productivity, enhancing business, investment and consumer activity, increasing the efficiency of capital investments as key factors affecting the growth in the real sector and the knowledge economy, including industrial production , agriculture, capital construction.The paper highlights the weak links in the current management system and proposes measures to overcome the existing structural crisis. There is a need for a socio-economic policy change that should be aimed at ensuring the health of a nation.The authors compared Russian and global trends in key development indicators, such as gross domestic product (GDP), industrial production, foreign trade.A comparative assessment of the 2020 and 2021 forecasts of the considered key macroeconomic indicators (including the real sector of the economy as a driver of socio-economic progress) is presented. The projected in 2019 and 2020 slowdown in the global economy, the expected fall in global trade and the expansion of trade wars and sanctions, as well as the existing import dependence may contribute to the growing negative trend in the Russian economy and lead to stagnation escalating into recession.

Effects of nitrogenous substances on heat transfer fouling using model thin stillage fluids

Fouling is unwanted deposition of materials on surfaces of processing equipment, which leads to additional capital investment and lower processing efficiency. During fuel ethanol production, fouling occurs when thin stillage is concentrated into condensed distillers solubles. Investigations of protein impact on fouling are limited despite high protein concentration in thin stillage (17–33%db). Protein contributions to fouling have been verified in the dairy industry. Whey proteins and calcium phosphate interact with each other or other proteins and form aggregates on heated surfaces. Due to the complex biological composition of thin stillage, it is difficult to study a single effect on fouling without interference from other factors. The objective was to investigate fouling properties of nitrogenous substances (urea and yeast) using model fluids; effects of protease addition on fouling properties of model and commercial thin stillage fluids. Urea addition did not lead to fouling while glucose-yeast model fluids displayed fouling tendencies. Protease from pineapple stem (bromelain) incubation increased fouling in model and commercial fluids, which were indicative that hydrolyzed molecules such as peptides, amino acids or protease can be involved in deposit formation.

City: economic growth and social attractiveness issues

Background/Objectives: the city has always been seen as a place for productive forces. Therefore, it attracts investments and skilled personnel. The concentration of various enterprises on a relatively small area helps reducing costs, which, in its turn, increases the interest of the business towards product development. At the same time, city growth causes a variety of acute social problems. The article presents the main concepts of city development and considers methods of evaluating its social and economic evolution. Methods: The article defines the concept of “sustainable city development”, identifies the leading indicators of the city attractiveness and economic growth, and suggests an integrated attractiveness index of life in a city. The main steps of the analysis of the city development dynamics are considered. An econometric model is built, which reflects the dynamics of the gross municipal product, and relation is studied between the growth of the gross regional product and the leading social and economic indicators. Methods of correlation and regression analysis were used to rank the main factors of sustainable development. Findings: It is established that the most significant and decisive factor influencing the gross municipal product is not an economic but a social one with the capital investment efficiency being a minimum of three years. Applications/Improvements: To ensure the growth of the gross municipal product there should be a correlation between social and economic interests of the residents and regional enterprises, which is expressed first of all in the public socioeconomic policy. Areas of interaction between the main structural components of the city system have been identified.

Does Short Selling Inform or Manipulate Capital Investment?

Recent theoretical work suggests that short sellers can manipulate firms into making suboptimal investment decisions. In this study, I empirically test whether short sellers improve or harm the efficiency of firms' capital investment. Overall, I show that short selling improves the efficiency of firms' capital budgeting. However, I also demonstrate that following the full repeal of the uptick rule in 2007, short selling now has a deleterious effect on investment efficiency. Furthermore, in subsample analyses, I find support for manipulative short selling taking place in firms with high levels of short-term leverage, stock market liquidity, and informed trading..

Organizational Structure, Voluntary Disclosure, and Investment Efficiency

An important role of corporate disclosure is to improve the efficiency of capital allocation, and a key part of this process is firms’ internal allocation of capital across their multiple projects. This paper examines the effect of internal capital allocation on firms’ disclosure incentives and how these incentives affect internal capital allocation and investment efficiency. I identify conditions under which the multi-project firm that can perform internal capital allocation withholds more information than a group of stand-alone firms. Under these conditions, I show that the investment efficiency of the multi-project firm is higher than that of a group of stand-alone firms. The results suggest that corporate disclosure and internal capital allocation are substitutes in improving investment efficiency. This provides one explanation for why a multi-divisional structure may be preferred, although the structure appears inefficient.

Оценка эффективности инвестиций в человеческий капитал в современных условиях (Evaluation of the Effectiveness of Investments in Human Capital in Modern Conditions)

Russian Abstract: В работе построены количественные оценки частной, бюджетной и общественной эффективности инвестиций в человеческий капитал для различных уровней и профилей образования в современных российских условиях. Оценка эффективности и рисков инвестиций в высшее (включая аспирантуру) и среднее профессиональное образование осуществлена с использованием регрессионного анализа данных Российского мониторинга экономического положения и здоровья населения и финансовых моделей, позволивших сопоставить издержки, выгоды и риски инвестиций в человеческий капитал для различных субъектов. Для оценки влияния человеческого капитала на экономическое развитие на макроуровне проведен регрессионный анализ панельных данных Росстата, позволивший выявить влияние человеческого капитала на динамику экономического роста российских регионов. Сформулированы рекомендации по совершенствованию механизма инвестирования в человеческий капитал на уровнях среднего профессионального и высшего образования с особым акцентом на программы подготовки научно-педагогических кадров высшей квалификации. English Abstract: The study measures the efficiency of human capital investment at the individual, public, and social levels for different levels of educational attainment and specialist fields in the present-day Russia. The efficiency and risk evaluation of investment in the higher education (including postgraduate studies) and vocational education and training (VET) was based on the regression analysis of the data provided by the Russian Longitudinal Monitoring Survey as well as on financial models, which allowed us to compare costs, benefits, and risks of human capital investment for different stakeholders. To evaluate the impact of human capital on economic growth at the macroeconomic level, we conducted regression analysis of the panel data provided by Rosstat, which was used to assess the effect of human capital development on the growth dynamics of the Russian regions. The present research enabled us to formulate policy recommendations aimed at improving the mechanism of investment in human capital at the level of VET and higher education, with a specific emphasis on the training of academic and teaching staff.

Post-Project Appraisals to improve capital investment performance of Chinese State-Owned Enterprises

Under current Chinese Government reforms, Chinese State-Owned Enterprises (SOEs) will be under closer scrutiny on asset management, capital investment efficiency and competitiveness. The use of post-project appraisals to understand project performance and root causes of outcomes is not new to Chinese SOEs; however, effectively harnessing the benefits of post-project appraisals has been challenging for these enterprises. The objective of this paper is to discuss the obstacles Chinese SOEs face, which stem mainly from organisational and cultural factors. Most of the challenges identified can be addressed if there is a strong commitment from the senior executive team to use project appraisals as a basis for continued improvement.

The Effect of Short Selling on the Efficiency of Capital Investment

The Effect of Short Selling on the Efficiency of Capital Investment

Assessment of the efficiency of investing activities of organizations

Investments are the key to the systematic improvement of the economic situation within the country, both at the stage of economic enterprises and in the social environment. The main factor in the enlargement of economy within agriculture sector is increasing the proficiency of investing activities, strengthening the role of the state in the regulation of agricultural activities while maintaining the level of optimal interaction with the free market; reducing production costs; formation and development of marketing strategy; enhancing environmental safety and estimate in the agriculture; and overcome the variation of prices for agricultural and industrial goods. The foundation of investing activities is the timely receipt of an accurate and reliable information about the magnitude of resources’ investment by objects of agricultural practices. Key performance indicators are the basis of a balanced system that determines the methods of formation of these indicators. The object of the research consists in theoretical justification and developing the calculation method characterizing enterprise investing activities. Abstract-logical, monographical, statistical and economical, and examining methods were used while conducting the present research. The materials of domestic and foreign scholars addressed to the problems of developing balanced system of values served as methodological and theoretical background. The key performance indices are the basis of the balanced system of values, hence they should be formed by using the methods of the indicated system. It is recommended in the article that the assessment of investing activities should involve calculating the data characterizing the social activity of an enterprise. Besides, according to the article, the assessment of investing activities in relation to “Personnel and systems” area should be accomplished by using the data concerning the efficiency of human capital investments, the index of expected expertise, and the business reputation of human capital. The assessment of investing activities conducted in respect of “Finance” area should include calculation of the means allocated by enterprise for construction of disposal facilities, the amounts to be invested into environment protection facilities, investments into community, the funds allocated to support cultural and historical units as well as housing and public service facilities, and the funds used in order to support the events of social importance.

Aging of agricultural labor, agricultural capital investment and land use efficiency: Based on a longitudinal survey of farmers in Shandong, Henan and Anhui

Aging of agricultural labor, agricultural capital investment and land use efficiency: Based on a longitudinal survey of farmers in Shandong, Henan and Anhui

COMPARATIVE ANALYSIS OF EVALUATION MODELS EFFECTIVENESS OF INVESTMENTS IN INNOVATION PROJECTS (PART 1)

The article describes the main models and methodological tools for evaluating the effectiveness of investment and innovation measures and mechanisms that have been developed and applied in the economic environment since the mid-twentieth century. The article discusses two directions in the assessment of investments: the direction of market evaluation of the introduction of innovation / investment and the direction of the assessment of the effectiveness of capital investment (investment) in the development of new technology (innovation), which was used in the conditions of non-market (planned) economic system. The article has characteristics about the advantages and disadvantages of both areas. The direction of further development of investment efficiency assessment models is outlined. Keywords: net present value, discounting, economic efficiency of capital investments, reduced costs, indicator of the speed of specific increment in value.