Financial Capital Research Articles

Socio-economic Impact of Foreign Employment and Remittance in Household Activities in Besishahar Municipality

Remittances from foreign employment have played an important role in the household economy in Nepal. This article aimed to explore the socio-economic impact of foreign employment and remittances on household activities in the Besishahar Municipality. Following the purposive sampling procedure, I selected 30 households for the cross-sectional survey and administered a questionnaire to collect data. In addition to this, 10 participants were selected for in-depth interviews to collect qualitative information. The findings of the study revealed that foreign employment has improved the socioeconomic condition of a family and brought changes in the source of income, children's education, settlement process, and prestige and status of family members in society. I have suggested using the remittance in productive activities such as self-employment, financial investment, etc. rather than investing in unproductive sectors like building a house or purchasing land in urban areas. The findings of the study may be useful in policy making at the local and federal levels in Nepal as a large number of young people migrate every day for foreign employment abroad. Policymakers should be aware of the management of safe labour migratory flows both to the countries of origin and destination. Its implication can be an effective strategy for adaptation as it generates financial and human capital that contributes to the sustainable alleviation of poverty.

Digital Transformation: Framework Development of Tourism Social Entrepreneurship (TSE)

Change that cannot be avoided by organizations or companies is digital transformation or digitization. Digital transformation also cannot be separated from tourism. Tourism Social Entrepreneurship (TSE) is a tourism development strategy that is centered on society/community. The Tourism Social Entrepreneurship (TSE) framework includes natural, building, financial, political, social, cultural and human capital. Digital transformation can effectively promote the sustainability of cultural integration, tourism. which can then be added as a TSE element. Existing research focuses on the role of digital transformation in community development, but not many have examined and incorporated digital transformation as part of change management, within the TSE framework. Considering the development of digitalization in the world of tourism, this study was carried out by integrating the TSE framework with digital transformation through a change management lens. This research uses a Systematic Literature Review (SLR) with the PRISMA method. It is hoped that the research results will be a scientific contribution to change management, especially in relation to digital transformation and Tourism Social Entrepreneurship.

NAVIGATING FINANCIAL DECISIONS: A COMPREHENSIVE REVIEW OF THEORIES, BEHAVIOURS, AND INNOVATIONS

This literature review synthesizes seminal and contemporary research on financial decision-making, emphasizing theoretical frameworks and empirical findings. Fama's (1970) Efficient Market Hypothesis sets the foundation for understanding market behavior, while Kahneman and Tversky's (1979) Prospect Theory introduces psychological influences, highlighting biases such as loss aversion (Tversky & Kahneman, 1991). Jensen and Meckling (1976) provide insights into agency theory, exploring the implications of managerial behavior on firm performance. The influence of gender on investment strategies is examined by Barber and Odean (2001), illustrating the role of overconfidence. Additionally, the impact of social interactions on financial choices is explored by Bursztyn et al. (2014). Financial literacy, addressed by Lusardi and Mitchell (2014), underscores the importance of informed decision-making in personal finance. The review also highlights the integration of behavioral insights in corporate finance, particularly in capital structure decisions (Myers, 1984) and risk management practices (Hull, 2012). Overall, the collected works illustrate a rich tapestry of factors influencing financial decisions, blending economic theory with behavioral insights, and emphasizing the necessity for ongoing research in this dynamic field. KEYWORDS: Financial Decision-Making, Behavioral Finance, Prospect Theory, Market Efficiency, Agency Theory, Overconfidence, Financial Literacy, Risk Management, Capital Structure and Social Interactions.

Dinamika Pembangunan Sumber Daya Manusia (SDM) terhadap Perekonomian dengan Kontribusai Pendapatan Asli Daerah (PAD) sebagai Pemoderasi

The vulnerability of Bali's economy, which only depends on the tourism sector during the Covid-19 pandemic, has given rise to the idea of economic transformation to develop other sectors. In this effort, human development is a key factor as a major economic actor. Human Development Index (HDI) as an indicator of human resource quality is thought to have a positive influence on the economy as seen from Gross Regional Domestic Product (GRDP) at constant prices. Original Local Government Revenue (OLGR) as financial capital is considered capable of strengthening empowerment programs and policies that directly touch the community and downstream can strengthen the economy. The data used is secondary data for the 2013-2022 period obtained from Regencies and Cities in Bali Province (panel data). This research was tested using Econometric Views (Eviews) software (panel data regression). The analysis techniques used include descriptive statistics, panel data model analysis, classical assumption tests, interaction tests or Moderated Regression Analysis (MRA) and hypothesis testing with analysis of the coefficient of determination and t test. The aim of the research is to determine the effect of HDI on GRDP and to find out whether OLGR is able to moderate the influence of HDI on GRDP. The results show that HDI has a significant positive effect on GRDP. This means that increasing HDI will have a positive impact on increasing GDP. OLGR strengthens the positive influence of HDI on GRDP. This means that OLGR is able to strengthen and have an impact on human resource development and ultimately increase GDP growth which is an indicator of regional economic growth. Suggestions that can be given from the results of human resource investment research can be a priority so that regional communities can become the driving force of the regional economy. It is hoped that the use of OLGR for empowerment programs and policies that touch the community can be implemented more optimally so that it can improve the quality of human resources and have an impact on positive economic growth.

Measuring climate vulnerability of tourism-dependent livelihoods: The case of Lamgtang National Park

Climate change poses significant challenges to tourism-dependent communities in mountain regions, threatening their livelihoods and well-being. However, there is a lack of comprehensive assessments that consider the multidimensional nature of vulnerability and the specific socio-cultural contexts of these communities. This study assesses the livelihood vulnerability of tourism-dependent communities in Lamtang National Park exposed to climate change using the Livelihood Vulnerability Index (LVI) and the Livelihood Vulnerability Index -Intergovernmental Panel on Climate Change (LVI-IPCC) framework. A mixed-methods approach was employed, including household surveys (n=119), vulnerability index calculations, and analysis of weather data. The purposive stratified sampling based on ecological gradient and proximity to trekking trails ensured the representativeness of the sample. One hundred nineteen households were surveyed, with respondents from the Hill Janajati ethnic group. Results showed that the majority of households (63%) were tourism-dominant, followed by agriculture-dominant (17%) and mixed livelihood (13%). The LVI results revealed a moderate vulnerability (0.365), with financial and natural capitals being the most vulnerable. The LVI-IPCC analysis showed that the community's adaptive capacity (0.537) is slightly lower than its exposure (0.564), and sensitivity is comparatively low (0.296), resulting in a low LVI-IPCC index (0.01). Weather data analysis, including the Mann-Kendall trend test, Sen's slope analysis, and multi-model ensemble projections, indicated increasing precipitation trends and a warmer, wetter future for the region. The triangulation of LVI, LVI-IPCC, forecast data, and weather station data strengthens the findings and highlights the need for targeted interventions. The projected changes in temperature and precipitation patterns for Rasuwa district and vulnerability status of tourism-dependent communities highlight the urgency of implementing climate change adaptation measures, which may include diversifying livelihoods, improving access to education and training, strengthening social support systems, and promoting sustainable land and water management practices.

Human Capital Structure and Innovation Efficiency Under Technological Progress: Evidence from China

This paper innovatively defines the structure of human capital based on existing theories and use the heterogeneous stochastic frontier model to test the relationship between various types of human capital and innovation. It is found that with the progress of technology, the structure of human capital and the mechanism of promoting innovation have undergone profound changes. Together with commercial leasing human capital, financial human capital, and entrepreneurs, information human capital and transportation human capital participate in innovation activities and create a new collaborative space, which in turn helps to spread the value of innovation and influence the effectiveness of the entire innovation system. This study enriches the theoretical research on the mechanism of human capital promoting innovation in the information age and provides new insight to explain the imbalance between human capital input and innovation output. Based on the theory of innovation chain value and flow space, this study redefines the connotation of innovative human capital structure by distinguishing the nature of innovation activities. This study also reveals the difference in the influence of human capital structure on different types of innovation activities. This study partly explains the problem of increasing human capital input but decreasing innovation efficiency in developing countries. Therefore, from a macro perspective, our research provides guidance for understanding the transformation of innovation under the background of technological progress and formulating effective urban innovation strategies for managers.

The Influence of Financial Performance and Capital Structure on Firm Value in Pharmaceutical Companies Registered on the IDX 2019 – 2023 with Company Size as Variable Moderation

The Influence of Financial Performance and Capital Structure on Firm Value in Pharmaceutical Companies Registered on the IDX 2019 – 2023 with Company Size as Variable Moderation

Self-fulfilling prophecy in livelihood sustainability: Rural tourism in Pingqian Village, China

This study proposes a conceptual model of villagers' risk perceptions of poverty recurrence. Integrating the sustainable livelihoods framework (SLF) with the concept of self-fulfilling prophecy, the study employed a mixed-method approach in the empirical analyses using data collected over four years in Pingqian Village, China. The study revealed that rural tourism empowered the villagers to improve their physical and financial capital by reducing dependence on cropland. However, interactive vulnerabilities can significantly impact their risk perceptions of poverty recurrence, thus shaping their behaviors in investment decisions and business operations in rural tourism. This raises concerns about potential overreliance on tourism in rural communalities that may undermine sustainability goals. In practical terms, the study presents a mechanism to monitor villagers’ risk perceptions of poverty recurrence at different risk levels. The conceptual and empirical results enrich the SLF and sustainability literature and practice by highlighting the bidirectional relationship between vulnerabilities and livelihood assets.

Navigating The E-Government Landscape in Zanzibar a Comprehensive Empirical Assessment

The study about Navigating e-government landscape in Zanzibar. This investigation emphasizes the interplay among human and financial resource capitals, governmental policies, and Information Communication Technology (ICT) infrastructure. Significantly, technological readiness is explored as a potential mediator, with digital literacy proposed as a moderating influence. Through an empirical lens, the study employs a comprehensive survey targeting diverse respondents, including public sector employees and citizens, capturing their e-government service interactions and perceptions. Employing a blend of statistical tools, the research unveils that human resource capital, aligned with digital knowledge, amplifies e-government efficacy. Strategic financial investments, especially in areas like training and ICT infrastructure, enhance service adoption. Furthermore, progressive government policies fostering transparency and inclusivity create a fertile ground for e-government growth. ICT, being central, further substantiates the call for robust digital infrastructures to support and expedite adoption. However, the mediating role of technological readiness underscores that simply possessing resources isn't sufficient; their strategic application is vital. Still, the study's scope, defined by its geographical focus on Zanzibar and potential inherent biases, necessitates caution when extrapolating results. In essence, this study provides a distilled perspective on e-government adoption in Zanzibar, offering insights potentially applicable to similar global contexts, urging stakeholders to rethink digital strategies.

Seguros para os pobres: ironias da financeirização da pobreza na África do Sul

This text makes a Bibliographical Critique of the book "Ironies of Solidarity: Insurance and Financialization of Kinship in South Africa", written by the Dutch anthropologist Erik Bähre and published in 2020. The book brings an original reflection on the processes of financialisation of everyday life and poverty in the so-called Global South. The sensitive ethnography, conducted in Cape Town, shifts assumptions and brings a relevant contribution to social studies of the economy and the relations between moralities and markets. More than that, it brings relevant insights and methodological propositions for an approach to global financial capitalism based on the contradictions and ironies produced in people's daily lives. The book draws attention to how insurance, especially in its form marketed by large financial institutions, is a type of solidarity distinct from the forms usually studied by anthropologists. Anthropological theory has devoted itself more thoroughly to the study of community forms of solidarity and usually apprehends "the market" or "neoliberalism" as a force that corrupts the spheres of intimacy and personal ties. The book allows us to develop more sophisticated strategies for understanding such social processes from an anthropological approach.

Analisis Faktor Penghambat Ekonomi Keluarga Nelayan Wilayah Pesisir Desa Bagan Percut, Kecamatan Percut Sei Tuan, Kabupaten Deli Serdang, Sumatera Utara

The aim of this research is to analyze the economic inhibiting factors for fishing families in the coastal area of ​​Bagan Percut Village, Percut Sei Tuan District, Deli Serdang Regency, North Sumatra. This research uses data analysis methods. Research results show that access to financial capital is one of the main challenges for fishermen in this region. The majority of fishermen depend on a loan system from local middlemen or "toke", which often provides fish selling terms and prices that are less favorable for fishermen. This causes fishermen to be trapped in a cycle of poverty and prolonged economic difficulties. The low level of education among fishermen has a significant impact on their ability to manage fisheries efficiently and increase the added value of their catch. Lack of knowledge and skills in post-harvest handling, marketing, and the adoption of modern fishing technology and practices are major obstacles in efforts to increase fishermen's productivity and income. Unpredictable weather conditions, limited access to modern technology and equipment, competition with large fishing industries, unsustainable natural resource management, and inadequate infrastructure are also significant economic inhibiting factors for fishing families in the Coastal Area of ​​Bagan Percut Village.

Концепция и реализация альтернативной методики оценки национальной конкурентоспособности

The article presents the results of applying the author's methodology for assessing national competitiveness, based on an analysis of the effectiveness of macroeconomic systems in the operation of nine main growth factors in relation to ninety-one states in the period from 2003 to 2021. The obtained results demonstrate certain discrepancies with international ratings of national competitiveness; however, they reflect the author’s concept of its assessment, which implies the effectiveness of the marketization of natural, human and financial capital by macroeconomic systems, and not its infrastructural and institutional quality.

Measuring community disaster resilience for sustainable climate change adaptation: Lessons from time-series findings in rural Cambodia.

Donor-funded climate and disaster resilience programmes and projects aim to help build the capacities and resilience of communities. Measuring resilience is critical, therefore, in providing feedback, evidence, and accountability. This paper presents recent two-year time-series findings from an ongoing multi-partner academic and practical collaboration pertaining to a climate change adaption project with rural communities in Cambodia. To measure community resilience, the study used the Flood Resilience Measurement for Communities, which measures, using mixed methods, disaster resilience capacities across five key dimensions of resilience: human, social, physical, natural, and financial capitals. The study analysed and reported changes in these areas of resilience in the selected villages, generating insights into the strengths and weaknesses of flood resilience capacities in the region. This paper provides valuable guidance as to where investment can be most effective in different communities, confirming the usefulness of the tool in measuring resilience and assessing the effectiveness of the project concerned.

Do Community Capitals Influence Climate Adaptation? Critique of Financial, Physical, Human and Social Capital in the Adoption of Climate Smart Agriculture Technologies among Smallholder Farming Community in Lamu County, Kenya

Purpose: This study aimed to establish a framework for testing the community capitals theory and assessing the empirical significance of financial, physical, human, and social capital in the adoption of climate-smart agriculture technologies. Materials and Methods: Data was collected through semi-structured questionnaires administered to 256 randomly selected household heads. An ordinal logistic regression model was employed to analyze the significance of community capitals in climate-smart agriculture adoption. The data is presented in tables. Findings: The results revealed several important findings. Access to finance has a significant positive association with Climate-Smart Agriculture adoption (P<0.001, OR=3.23). Input subsidies are also significantly positively associated with Climate-Smart Agriculture adoption (P=0.001, OR=3.66). Training shows a significant positive association with Climate-Smart Agriculture adoption (P<0.007, OR=2.03). Labor has a highly significant and positive relationship with Climate-Smart Agriculture adoption (P=0.001, OR=8.97). Interaction positively and significantly correlates with higher levels of Climate-Smart Agriculture adoption (P=0.021, OR=4.04). Additionally, empowerment demonstrates a significant positive association with Climate-Smart Agriculture adoption (P=0.006, OR=2.96). Notably, the model challenged the conventional view of finance and labor as independent determinants for climate-smart agriculture adoption, instead positioning them within a social context. Implications to Theory, Practice and Policy: The study suggests that climate action programs should prioritize social ties over investments in financial, physical, or human interventions to enhance climate-smart agriculture adoption and promote resilience. Lastly, combining the Community Capital Framework with Social Capital Theory offers a more detailed understanding of the factors influencing Climate-Smart Agriculture adoption, emphasizing the interaction between various types of capital and social dynamics.

Green Financial Management, Firm Size, and Capital Structure: Practical Implications for Financial Performance of Companies in the SRI-KEHATI Index

The company's efforts to improve financial performance through maximizing profits are not accompanied by the company's concern for the impacts caused, so there are regulations that require companies to commit to carrying out sustainable business practices and care about environmental issues by implementing green financial management. The indepen dent variables in this study are green financial management, firm size, and capital structure, while the dependent variable in this study is financial performance. This study aimed to test and analyze the effect of 1) green financial management on financial performance, 2) firm size on financial performance, and 3) capital structure on financial performance. The population in this study are all companies incorporated in the SRI-KEHATI index for 2017-2022. Sampling was carried out using the purposive sampling method. The data analysis method is a multiple linear regression analysis process using SPSS 26 software. The results showed that partially green financial management and capital structure significantly positively affect financial performance. Firm size has an insignificant effect on financial performance.

Developing the methodological provisions for assessing the sustainable development of an organization

Subject. This article focuses on the issues of improving the practical aspects of assessing the sustainable development of an organization, taking into account the relationship between external and internal factors and their compliance with the criteria of long-term sustainability. Objectives. The article aims to develop methodological approaches to assessing the sustainable development of an organization on the basis of identifying the relationship between internal and external factors of stability of an economic entity to determine key indicators affecting the types of capital. Methods. For the study, we used generalization, comparison, analysis and synthesis, a systems approach, and questionnaire. Results. The article describes the relationship between the factors of the business environment and the elements of financial, human and natural capitals of an economic entity, which is the basis for the identification of priority assessment indicators in the context of managing the sustainable development of an organization. It proposes to improve the methodology for assessing the level of sustainability of the projects being implemented by an economic entity based on the calculation of a complex indicator demonstrating the expected contribution of each project to the financial, human and natural capitals of the organization. Conclusions and Relevance. The proposed methodology for evaluating the projects being implemented from the standpoint of their contribution to financial, human and natural capitals on the basis of the calculation of a complex indicator establishes the impact of projects on the change in the level of stability of the organization. The information obtained at the stage of assessing the sustainability of the projects being implemented contributes to the development of mechanisms for managing the level of development of an economic entity. The results of the study can serve as a substantiation of organizational recommendations for managing the sustainable development of an economic entity.

Not Just Survive, But Thrive: Examining Livelihood Capital, Poverty Reduction, and Sustainable Development in Ethnic Tourism Destinations

Understanding the roles of tourism development in poverty reduction and livelihood capital through a microlens is essential to rural ethnic areas’ sustainable development. However, few assessment methods are available to unravel the complex relationships between these three facets, and gaps remain in measuring residents’ livelihood. Based on the sustainable livelihood approach, this paper first selected core components of the sustainable livelihood framework to construct an evaluation index system and then provided specific indicators and evaluative criteria. Taking villages in China’s Longji Rice Terraces as a sample case, this study employed objective approaches (e.g., the entropy weight method and gray relational analysis) to assess residents’ livelihood capital. The aim was to showcase the sustainability of this area’s livelihood through a microlens. Findings offer several important contributions. First, this study presents a reliable measurement development method and a set of evaluation criteria for sustainable livelihood in tourism contexts, including five forms of capital and 21 indicators. Second, local inhabitants were found to benefit from tourism development; their livelihood options were diversified, especially in terms of growing financial capital. Yet these benefits were not evenly distributed, with notable differences observed across communities. Third, farmers’ livelihood capability did not improve uniformly over time. These findings offer valuable insights for tourism and hospitality stakeholders and can help steer rural regions toward a path of prosperity and growth. Strategies for inspiring entrepreneurship should especially be considered. In closing, theoretical implications are discussed, and suggestions for future work are provided.

Digital Financial Inclusion, Capital Mismatch and High-Quality Development of the Real Economy

Based on the analysis of the mechanism of digital inclusive finance affecting the high-quality development of the real economy, this study empirically examines the direct effect and spatial spillover effect of digital inclusive finance on the quality of real economic development using the spatial Durbin model with the provincial data from 2011-2022 and examines the mediating effect of capital mismatch. The study finds that: digital inclusive finance has a positive driving effect on the quality of real economic development, with positive total and direct effects, but negative spatial spillover effects; capital mismatch is an important mechanism for digital inclusive finance to promote the high-quality development of the real economy. Therefore, it is recommended that the government create a digital inclusive financial ecosystem, deepen financial market reform, and promote the high-quality development of the regional real economy.

An abundance of caution for a ‘stagnation nation’? Financial services policy development in post-growth Britain

This commentary discusses the relationship between the UK Labour Party and the financial services sector in the context of an approach to economic policy and growth. It highlights the historical scepticism of the Labour Party towards financial services, rooted in ideology and practical experience alongside a recognition of the need to engage with the sector to promote economic growth and investment. The Labour Party’s evolving stance towards financial services is outlined, which has oscillated between support in the 1990s and early 2000s, to a more critical view in the 2010s, with a more recent return to advocacy. The commentary draws attention to a tension in the party’s encouragement of an industry that can provide economic growth at home, while at the same time being wary of developing policies designed to provide necessary growth in other areas, such as in green technologies, but that might incur the disapproval of global financial investors. Labour’s dilemmas are illustrative of the contemporary problems of policy formation in a relatively small but open economy, where options to promote growth and green investment are constrained in the face of the disciplinary power of global financial capital.

Egyptian Expatriates’ Engagement: Analysis of the Role of the State (2015-2023)

The question of expatriate engagement has been gaining momentous importance on the agenda of the Egyptian state since 2014. In an attempt to design a national strategy in engaging with its expatriates, the Egyptian government has been keen on developing certain policies and initiatives, starting with the re-establishment of the Egyptian Ministry of Emigration (Samra, 2018). This has been followed by several initiatives that aimed at providing public services to the expatriates, fostering their investment rates, and consolidating their national identity and sense of belonging (Samra, 2018). Hence, it would be interesting to further analyse the national policies and initiatives for expatriate engagement while addressing the following research question: “In light of A. Gamlen’s typology of diaspora engagement policies, to what extent can the Egyptian emigrants’ engagement policies and initiatives be considered comprehensive?”. This paper argues that due to the increasing potential value that the expatriates represent to their homeland in terms of financial and human capital, and based on Gamlen’s typology of diaspora engagement policy, the Egyptian public approach to expatriate engagement can be considered comprehensive as it encompasses efforts for institution-building, and symbolic nation-building. It also directs attention to political integration, and social services while attempting to enhance the remittances’ rates and expatriates’ knowledge transfers through offering different sets of incentives. To address the research question and prove the argument, the paper is divided into six sections which include a thorough conceptual framework, an analysis of the value that the Egyptian emigrants represent to their homeland, and an examination of the mounting political will and interest in engaging the Egyptian expatriates. Based on this political will, the paper analyses the policies of capacity-building, and the initiatives that aim at extending rights and extracting obligations in terms of remittances, investments, and knowledge transfer. Keywords: Egyptian expatriates, Gamlen’s typology, Institution-building, symbolic nation-building, extension of rights, extraction of obligations, remittances, knowledge transfer.