Financial Capital Research Articles

South Korea’s Megacorp and super app: Kakao’s paths to market dominance

This paper traces Kakao’s corporate strategies—with a focus on conglomeration and valuation—in order to trace how the company’s trajectory led to its current status as a near-monopoly. Starting as a chat app which now has 43 million active users in South Korea, Kakao became a conglomerate by expanding its operations across different business sectors such as transportation, entertainment, fintech, etc. Kakao’s diversification of businesses and conglomeration should be understood in relation to its corporate strategies and forms, not as the natural outcome of technological innovation. Aspiring to become an entertainment conglomerate, not just a platform company, Kakao has expanded the scope of its business by acquiring start-ups and competitors, spinning off in-house startups as subsidiaries, and making strategic mergers between subsidiaries. Kakao has also placed greater focus on boosting valuation rather than profitability, a crucial strategy for leveraging high valuations to consolidate its market dominance. Tracing Kakao’s affinities to chaebol, I further propose a framework for thinking about the relationship between the state, tech, and finance. Collusion between the state and tech has occurred through deregulation, which has allowed tech companies to become financial capital.

The potential of collaborative solutions to improve management of California (United States) wildlands

Across the western United States and elsewhere, the frequency and intensity of wildland fires are projected to increase, posing a challenge to natural‐resource management. While collaborative, multi‐benefit partnerships can provide opportunities to overcome barriers to effective management, in many cases these collaborations have been slow to form. To investigate this issue, we surveyed natural‐resource professionals in California to identify barriers to effective management and potential solutions in the form of collaborations. Analyzing our data using social network analysis, results show that limited financial and human capital were the most salient barriers in our sample, while lack of public support and data were less common concerns. Collaboration networks were dominated by land‐management and other public agencies, as they were the most frequently mentioned as collaborators. Tribes, universities, private‐sector organizations, and watershed‐service providers mentioned other actors as collaborators more often than they were mentioned as collaborators, while the opposite was true for land‐management and other public agencies. Universities, land managers, watershed‐service providers, and private‐sector organizations displayed a strong desire to establish new collaborations, while other public agencies and tribes displayed less of a desire to do so. Overall, this study highlights insufficient financial and human capital as barriers confronting natural‐resource management in California. It also shows that organizations with the capacity and capability to help mitigate these shortcomings, such as the private sector and universities, are among those most positive toward additional collaborations. Our findings suggest that initiatives to expand regional collaborative partnerships could increase the effectiveness of natural‐resource management in California.

Financialisation of Islamic finance: a Polanyian approach on the hegemony of market logic over Islamic Logic

ABSTRACT The significant rise of finance in emerging economies evidenced that financialisation is not limited to advanced economies. While financial capitalism spreads to every corner, financialisation appears in emerging economies in the form of variegated finance capital. Despite its theoretically counter-hegemonic construct, Islamic financial markets do not stand out of this permeation. This paper, hence, aims to explore the role of Islamic finance in making inroads into financialisation in the countries where Islamic finance has reached a significant presence. Based on Krippner’s approach to financialisation, this paper examines the financialisation of Islamic finance by concluding that the strength of finance capital resulted in variegating or grafting a morally backed financial system into the neoliberal logic. The discursive analysis supported by empirical analysis suggests that due to the observed dis-embeddedness of Islamic finance away from its genuine novelty, it has become a hybrid product of the neo-liberal agenda. This is evident in its debt-encouraging financial instruments, which worsens the gap between the real and financial economy. The contribution of this paper is evident in its contractual-level analysis, which focuses on the operational and working mechanism of Islamic banking and finance and how it has been led astray by the finance capital.

Analysis of the Development of Rural Aqueduct Organizations in the Central Zone of Colombia: A View from Sustainable Livelihoods

Within the framework of sustainability analysis regarding the processes developed by man, water resources in rural scenarios have been a priority due to the impact generated by population growth and climate changes in tropical regions. In Colombia, the shortage of drinking water from aqueducts has become a problem especially in rural areas, even though its administration has been set and led by local community organizations. In this sense, in this research, the aim was to understand the dynamics of sustainable livelihoods in rural areas and their relationship with water resources in Boyacá, Colombia. For this purpose, surveys were carried out in two rural aqueducts in the municipalities of Boyacá and Oicatá paying special attention to the variables that affect human, social, technical, physical, natural, and financial capital. According to the results, the water supplied by community organizations directly affects the daily activities of family units, as well as the agricultural production systems. In addition, significant relationships were identified between human and financial capital, as well as social and technical capital; however, population increment and the accentuation of dry seasons have become a threat in these regions in Colombia. In conclusion, the analysis of the work developed by the organizations of rural aqueducts allows us to understand that water plays a fundamental role in the construction of society.

Menggali Potensi Kampung melalui Pemetaan Partisipatif: Pendekatan Komunitas dalam Pembangunan Berkelanjutan di Dupak Magersari Surabaya

Sustainable development is a timeless topic. Behind it are a myriad of aspirations for current and future generations, both from the economic, social and environmental aspects. The concept that is promoted is development that promotes the fulfillment of the needs of the present without involving the ability of the next generation to achieve 17 goals, which are often referred to as sustainable development goals (SDGs) or Sustainable Development Goals (SDGs). One of them is sustainable cities and communities. This should be realized in the village of Dupak Magersari RT 01 which is the study in this research. Researchers tried to explain the potential through participatory mapping by emphasizing the active involvement of many people such as communities and even stakeholders. The goal is to hold the community in maintaining and developing their village in a sustainable manner. The analysis is based on the Participatory Rural Appraisal (PRA) approach, which is a technique to stimulate community participation in various activities, starting from the social analysis stage, planning, implementation, evaluation to program expansion. The result is an alignment between the concept of sustainable development and the mapping practices studied. The community can make sustainable planning through the findings of five basic capitals, including natural, human, financial, physical and social capital.

Household resilience of women migrant worker sellers of Jamu Gendong

Background The selling of Jamu Gendong (an Indonesian traditional herbal medicine), is closely associated with the informal work of women who migrate to different regions. In Sukoharjo Regency and Wonogiri Regency, Central Java Province, the pressing need to meet household necessities in their places of origin compels women to assume the role of breadwinners. Therefore, this research aimed to identify the livelihood capital and resilience of migrant women selling jamu gendong. Methods The study was conducted in Ciamis Regency, West Java Province, Indonesia, in November 2022, using quantitative and qualitative methods. Primary data were collected through structured questionnaires and in-depth interviews. The sample comprised 51 women selected through snowball sampling and actively involved in selling Jamu Gendong, along with six key individuals from relevant agencies. Results The research findings indicate that the households of migrant women who sell jamu gendong can survive and adapt during their migration to prevent poverty by implementing diverse livelihood strategies. They are the only ones who move without their family members renting a place to live with them. This research has identified various capital sources, including productive age and skills in preparing jamu gendong; physical capital, including road infrastructure, markets, and access to health and education facilities; and natural, social, and financial capital. This research provides an in-depth understanding of women’s roles in family economic resilience, diversification of life strategies, the importance of social capital in migrant networks, economic empowerment through migration, and the influence of cultural values on livelihood strategies. Conclusions The findings contribute to a comprehensive understanding of the resilience demonstrated by migrant women selling jamu gendong. However, further research should be conducted in areas beyond the city center to obtain a holistic view of their resilience.

Influence of Livelihood Capitals on Landscape Service Cognition and Behavioral Intentions in Rural Heritage Sites

Farmers’ livelihoods are critical for global sustainable development and the conservation and transmission of rural heritage. However, neglecting farmers’ livelihoods increases the risks to living heritage conservation. Therefore, it is essential to explore the impact of livelihood capital on farmers’ landscape services cognition and their behavioral intentions. Based on the Sustainable Livelihoods Approach, this study examines the rural areas of Mulanbei irrigation district, which was recognized as a World Heritage Irrigation Structure in 2014, and uses a structural equation model to investigate the relationships between farmers’ livelihood capital, landscape services cognition and behavioral intentions. The study’s key findings include the following: (1) The levels of human capital (0.541), social capital (0.671), and cultural capital (0.645) are relatively high, while the levels of natural, physical, and financial capital are comparatively low. (2) There are significant differences in landscape service cognition and behavioral intentions among farmers of different livelihood strategies, with diversified livelihood farmers demonstrating the highest levels of both cognition and intentions, while subsidy-dependent farmers show the lowest levels. (3) Natural, cultural and financial capital play a crucial role in influencing farmers’ landscape services cognition and their behavioral intentions. Landscape service cognition mediates the relationship between livelihood capital and behavioral intentions. (4) To increase farmers’ willingness to protect and promote rural heritage, efforts should focus on enhancing natural, physical, and financial capital while fostering cultural capital to promote advocacy.

Benefit evaluation of sloping land conversion program in the upper reaches of the Yellow River

This study used forestry statistical data and field survey data from 2000 to 2018 to analyze the ecological restoration effect of the returning farmland to forest project in the upper reaches of the Yellow River, considering four perspectives, namely, project construction goals, ecosystem quality, ecosystem service functions, and ecological restoration driving factors. One-way ANOVA and logit regression analysis methods were used for comparison. The results show that the implementation of the Grain for Green Project has reduced the carrying capacity of rural land, effectively curbed the continuous deterioration of the ecological environment, and protected and benefited the forest ecosystem. (1) Initiatives of the return farmland to forest project have achieved the expected goals, and the forest coverage rate has increased significantly from 5.26 % (in 2000) to 15.63 % (in 2019); the proportion of primary, secondary, and tertiary industries related to forestry has reached a reasonable level, and the economic benefits thereof continue to improve. (2) Indicators such as total forest and grass vegetation coverage, vegetation net primary productivity, and forest and grass health index reflect that the functional quality of the regional forest and grass ecosystem is gradually improving. (3) The ecosystem service function of the project region has improved considerably, and the ecological benefits are significant. (4) In terms of the contribution value of the driving forces for this ecological restoration project, they can be ranked as follows: government investment > reducing land carrying capacity > policy of returning farmland to forest > government management > hydrological factors > meteorological factors. (5) After the implementation of the Grain for Green Project, farmers' income has increased significantly, but the changes in livelihood capital income are not synchronized. As the ecological environment in the Grain for Green project areas gradually improved from deterioration, the natural capital and social capital of farmers' livelihood capital decreased significantly, while the physical capital and financial capital increased significantly, with no significant change in human capital. Farmers' satisfaction with the Grain for Green Project is as follows: natural capital has a significant negative impact, while financial capital and social capital have significant positive impacts, and there are no significant changes in physical capital and human capital. Finally, the consistency test results show that the fit is as high as 95 %, and the accuracy exceeds 90 %. Notably, the implementation of the Grain for Green Project has played a pivotal role in ecological restoration and contributed greatly to ecological benefits. These achievements provide a scientific basis and theoretical support for the country to formulate relevant policies for forestry projects, which holds great significance for the country in addressing the contradiction between economic and social development and ecological protection.

Effect of financial deepening and institutional factors on industrial value added: Evidence from Sub-Saharan Africa

This research evaluates the effect of financial deepening and institutional factors on industrial value. Africa, rich in natural resources, stands poised for resource-based industrialization, yet many nations continue to export raw materials with minimal processing. According to World Bank data, Sub-Saharan African countries have seen a decrease in industrial value added over the years. This decline is partly due to insufficient integration between agriculture and manufacturing. The primary factors in converting raw materials into finished products are labor and capital. While Africa is abundant in intellectual capital, it faces challenges with financial capital. Despite the critical role of financial development in enhancing industrial sectors, institutional factors also play a significant role. This study, which involved 38 Sub-Saharan African nations, analyzes the impact of financial development and institutional factors on industrial value added using multiple linear regression. The findings reveal that both financial development and institutional quality positively influence industrial value added, particularly highlighting the importance of bank capital adequacy, ATM availability, regulatory quality, corruption control, and governance. On the other hand, exchange rates, foreign direct investment, trade openness, and inflation all have a negative impact on industrial value added.

Research on the Relationship Between Financial Flexibility and Capital Structure Taking Chinese Listed Companies as Example

The acceleration of global economic integration has led to an increasingly uncertain external environment for Chinese enterprises, which are therefore required to master financial flexibility and capital structure. These are two of the basic elements in the corporate financial decision-making field, and their mastery will enable enterprises to survive and develop in this environment. The objective of this paper is to examine the relationship between financial flexibility and capital structure and to explore the potential applications of this relationship in the context of Chinese listed companies. A sample of Chinese listed companies across various industries, spanning the period from 2011 to 2021, has been obtained from the CSMAR database and used to conduct a series of statistical analysis. The software Stata has been employed to perform benchmark regression analysis, heterogeneity testing, and robustness testing on endogenous variables associated with capital structure and financial flexibility in order to gain insight into their respective influences. The results of the charts demonstrate a significant impact of financial flexibility on capital structure. In particular, there is a significant positive impact on debt structure, while growth opportunities have a negative impact. This paper indicates that firms should utilise their debt structures in a rational and strategic manner, and adjust their growth opportunities to enhance their competitive edge.

Knowledge access and satisfaction of pregnant women on the use of the National Health Insurance Scheme in accessing health care in the Bia East District of Ghana

IntroductionIn Ghana, access to health care is impeded mostly by financial capital. The National Health Insurance (NHIS) rolled out in 2003 was an attempt to remove cost as a barrier and help bridge this gap in health access. Despite the benefits, enrolment and use have been low. Hence a need to assess the knowledge, access and satisfaction of pregnant women on the use of NHIS to access healthcare.Materials and methodsThe study employed a facility-based descriptive cross-sectional study. A structured questionnaire was used to collect data from a total of 387 pregnant women using a simple random sampling technique. Data was collected to gain an insight into the knowledge, accessibility and satisfaction level of pregnant women on the usage of NHIS. Data was analyzed using Stata version 17.0 and results were presented in frequency tables.ResultsOverall, most of the pregnant women had a good knowledge of 228 (67.5%) and a high accessibility of 279 (82.5%) to using NHIS use it in accessing healthcare. Whilst for satisfaction, 311 (92.01%) said they were satisfied with the services and would prefer the use of NHIS to out-of-pocket payment.ConclusionIn the current study the level of knowledge, accessibility, and satisfaction of NHIS is high. However, to sustain this gain, a multidimensional approach to community education should be intensified.

Economic Dynamics of Financial Capitalism: Labour Market Reforms, Welfare State Reduction, and the Impact of Technological Changes

Economic Dynamics of Financial Capitalism: Labour Market Reforms, Welfare State Reduction, and the Impact of Technological Changes

Examining the Role of Local Government’s Financial Performance and Capital Expenditure in Increasing Economic Growth in Banten Province, Indonesia (2018–2022)

This study aims to analyse how financial ratios such as the independence ratio, effectiveness ratio, efficiency ratio, fiscal decentralisation ratio, dependency ratio, and compatibility ratio affect economic growth, directly or indirectly, through capital expenditure as a mediating factor. This research used a quantitative approach; purposive sampling was conducted, and path analysis was applied to explore the relationships between variables. The results show that self-reliance, effectiveness, efficiency, fiscal decentralisation, dependency, and capital expenditure significantly affect economic growth. The independence and effectiveness ratios have a positive impact, indicating that improvements in these variables directly foster economic growth. However, the efficiency and fiscal decentralisation ratios have a negative effect, suggesting that increases in these variables may reduce economic growth. Indirectly, through capital expenditure, the independence, effectiveness, dependency, and compatibility ratios significantly affect economic growth, with the independence ratio being the most dominant. Conversely, the fiscal decentralisation and efficiency ratios did not show significant indirect effects, indicating that capital expenditure is not an effective mediator for these variables. These findings provide insights into how local financial management strategies can influence regional development, offering key policy recommendations for Banten’s local government.

Characteristics of financial capital flow circulation and the risk transmission effect in China

Financial capital is an important force driving China's economic modernisation. Examining the characteristics of financial capital flow circulation across sectors and risk transmission laws is crucial in guiding financial market operations and deepening financial system reforms. This study establishes a 2011–2020 China matrix that includes capital fund flow statements for non-financial corporations, financial institutions, the general government, households, and foreign sources and examines changes in capital flow circulation by developing a financial flow multiplier system model to measure the direct and indirect transmission effects of capital flows between sectors from the perspective of liabilities. Results show that China's overall scale of financial capital flows has increased, but fluctuations have emerged in the last decade. The sectors' financing structure has changed significantly, with financial institutions remaining the primary capital inflow and outflow sectors of the financial market; however, the proportion of liability and investment in the household sector has increased, resulting in increased risk transmission. Moreover, the sectoral fund surpluses and shortages are highly volatile and uncertain, with non-financial enterprises serving as the primary drivers of real-economy investment. The capital flow from financial services to the real economy shows a fluctuating growth trend, primarily flowing to non-financial corporations; however, the proportion exhibits a downwards trend. Finally, we find that the flow transmission relationship between different sectors and financial transactions in the financial market is complex, with both direct and indirect risk transmission effects between sectors. Changes of financial institutions' liabilities significantly affect the liabilities and investments of other sectors.

Systemic entrepreneurship in the digital era: Tesla's vision and social transformation

This paper investigates the phenomenon of systemic entrepreneurship in the digital age, using Tesla, Inc., and its leader Elon Musk as a case study. Systemic entrepreneurship is explored as a multifaceted concept that extends beyond traditional business management, encompassing the integration of digital technologies and the capacity to instigate significant social change. The study reveals that systemic entrepreneurship involves a strategic amalgamation of financial, social, and human capital, utilized effectively to drive transformative shifts in societal norms and practices. Elon Musk's role as a systemic entrepreneur is dissected, highlighting his unique capabilities in networking, resource utilization, and social influence. His leadership in introducing disruptive innovations and altering market landscapes exemplifies the profound impact of systemic entrepreneurship on societal evolution. This study not only enriches academic understanding of systemic entrepreneurship in the context of digital transformation but also highlights its critical importance in driving sustainable and progressive societal transformations thanks to technology.

The impact of government data accessibility on cross-regional venture capital investments

This study examines the association between government data accessibility and venture capital (VC)'s cross-regional investments. Exploiting the staggered establishment of government data open platforms (GDOPs) across different cities in China as a positive shock to government data accessibility, we find that this policy significantly increases cross-regional VC investments in treatment cities relative to others. Furthermore, the positive impact is achieved through the reduction of information asymmetry, as the establishment of GDOPs attracts VC investments from greater geographical distances. Additionally, we find a more pronounced positive effect of GDOPs on promoting cross-regional VC investments in regions with higher terrain ruggedness and lower fiscal transparency. Overall, this study demonstrates that the government's informatization and transparency initiatives can positively influence financial markets by enhancing the cross-regional flow of financial capital.

Difference between Global South cities: Mexico City, Freetown and the global division of urban informal labour

This work pursues a new explanatory framework for understanding some of the variance and homogeneity of informal work between cities in the Global South. Rooted in a materialist approach to informality, it seeks to explain the dynamics of informal work in different urban contexts via a novel application of the global division of labour, termed the global division of urban informal labour. Through a comparative analysis of the urban labour regimes of Freetown, Sierra Leone, and Mexico City, Mexico, the work argues that each city’s respective location within the global capitalist system largely determines the nature of their informal economies. It posits that a city’s informal labour regime is shaped by whether a city’s economy is predominantly defined by financial, industrial or extractive capital, and explores the ramifications of the financialised economy of Mexico City and the extractivist economy of Freetown for shaping informal work in each city. Such an approach attempts not only to explain urban and labour regime variance but also to highlight the essential and foundational nature of informal work in global capitalism today. It also seeks to aid in the task of recentring capitalism and class considerations into understandings of the internal and external dynamics of Global South cities in general.

Sustainable land management and implications on incomes, food self-sufficiency and women

The adoption of Sustainable Land Management (SLM) practices among smallholder farmers remains low, particularly among women farmers. Understanding the relationship between assets, gender, and SLM adoption and how their interaction impinges on household food self-sufficiency and livelihoods is essential for developing gender-responsive SLM programmes that effectively promote sustainable livelihoods and address household food insecurity. This study examines the effects of asset type on SLM practices adoption, women farmers, and their implications on household incomes and food self-sufficiency. Data was collected through a cross-sectional survey of 761 households selected from 11 chiefdoms across six districts in Eastern Zambia. Analysis involved Structural Equation System framework and Propensity Score Matching techniques to examine relationships between SLM adoption, food self-sufficiency, and household incomes, considering various socio-economic factors. Results showed marital status and household size as significant demographics, with education positively correlating with household income and SLM participation (p < 0.05). Gender disparities persisted, with male-headed households having higher incomes. Labour allocation analysis revealed women’s involvement in labour-intensive tasks, while smaller farms showed higher income probabilities, supporting sustainable agricultural intensification. Social capital significantly influenced SLM participation, and access to financial capital. Livestock assets, land size, and crop diversity predicted food security, while male decision-making influenced food security and income. Incomes were higher for women participating in SLM projects. This study underscores the importance of SLM practices in influencing household incomes and food security, especially for women. Addressing gender disparities and promoting women’s empowerment in agriculture are crucial for achieving equitable and sustainable rural development. Policymakers can foster sustainable livelihoods in rural communities by prioritizing SLM and empowering women.

Financial Surplus and Capital Structure Dynamics: Evidence from Indian Firms

Financial Surplus and Capital Structure Dynamics: Evidence from Indian Firms

Factors Affecting the Adoption of Crowdfunding as a Source of Funding Among SMEs in Colombo Region in Sri Lanka

Small and medium enterprises (SMEs) are regarded as the backbone of economies, whether it is just for a single state or country or if considered for the globe as a whole. There are many challenges that SMEs face one of which is the financial aspect such as insufficient access to financial resources and investment capital can be a significant barrier to the growth of these SMEs. There is a suitable new way funding for this problem that is emerging in the modern world known as crowd-funding. This method mostly involves using the internet to collect money in small and medium amounts from several individuals thereby collecting the needed capital. Therefore, this study focuses on the factors affecting adoption of crowdfunding as a source of funding among SMEs in Colombo region.