Investment In Fixed Assets Research Articles

The Effect of Intellectual Capital Investment, Corporate Governance, and Barriers to Entry on the Intellectual Capital Performance of Banking Companies

Intellectual capital is an important element in determining the performance of banking companies. This study aimed to examine the effect of intellectual capital investment, good corporate governance (proxied by foreign ownership and institutional ownership), and barriers to entry on intellectual capital performance. This research was conducted on conventional banking companies listed on the Indonesia Stock Exchange from 2015 to 2019. The sample was selected using a purposive sampling method based on specific criteria. Eighty-nine banking companies met the criteria. Data analysis was performed using multiple linear regression analysis. The results of this study indicate that intellectual capital investment and barriers to entry have a negative effect on intellectual capital performance. On the other hand, foreign ownership and institutional ownership have no significant effect on intellectual capital performance. These findings recommend that banking companies pay attention to efficiency in investment in human resource development to improve bank performance. Inefficient investment in human resources can lead to a decrease in intellectual capital performance. Banking companies also need to continuously innovate service products to maintain their competitiveness and no longer rely on fixed asset investment as an element of a barrier to entry.

350 cities of China exhibited varying degrees of carbon decoupling and green innovation synergy

Understanding how CO2 emissions and economic growth can be decoupled and what drives this relationship is key to achieving green innovation synergy and long-term sustainable development of China. Current methods to quantitatively analyze emissions and growth usually follow an approach known as the Tapio decoupling model. This study used the panel data of emission and economic growth of 350 cities in 30 provinces of China from 2008 to 2019, and found that 8 different decoupling states existed. An empirical model was constructed by applying the Tapio decoupling model to analyze the influence of the gross domestic product proportion of secondary industry, local government competition, urban population density, city average temperature, and fixed asset investment on the regional and annual effects, thereby testing the coupling effects of urban green transformation and carbon decoupling. The following results were obtained: (1) The mean value of Tapio decoupling index was 0.408 among 2446 samples from 2008 to 2018, while the minimum value was 1, indicating that the overall decoupling process changed between samples in this period, but most cities were in the decoupling status. (2) The minimum value of green infrastructure was 0.693, the maximum value was 8.801, while the mean, median, and standard deviation were 4.719, 4.522, and 1.702, respectively, indicating certain gaps existed in the process of green transformation among cities, and that the overall distribution was more balanced. (3) The regression coefficient of carbon decoupling and the level of green innovation in the next period was significantly positive at the 1% statistical level, showing that carbon decoupling could promote green transformation among cities. (4) The regression coefficient of carbon decoupling and the level of green innovation in the previous period was significantly positive at the 1% statistical level, showing that green transformation was an important factor of carbon decoupling.

The Impact of Transmission and Distribution Price Reform on Economic Growth in Liberalized Electricity Markets: An Inter-Provincial Panel Data Analysis

This paper investigates and quantifies the extent of the Transmission and Distribution Price Reform (TDPR) on economic growth. Provincial-level data from 2010 to 2019 was used to estimate the impacts of the TDPR on economic growth using a progressive difference in differences method (DID). Findings showed that the reform had a positive impact on regional GDP and regional GDP per capita. Furthermore, to explore its mechanism of influence, the impacts of the TDPR on electricity prices, including the average sale prices and sale prices for industrial users, were analyzed, and the evidence suggests that the TDPR has significantly reduced the sale price. Additionally, the regression result suggests that the TDPR mainly affects electricity prices to reduce the energy cost of enterprises, and then promotes the innovation of industrial enterprises above designated size (IEADS) and fixed asset investment, which act on total factor productivity and promote regional economic growth. The regression results showed good robustness under various robustness tests.

Analysis of the Driving Factors of Carbon Emissions and Countermeasures for Carbon Emission Reduction in Hebei Province

In this paper, the quadratic polynomial and cubic polynomial functions were applied to analyze the environmental Kuznets curve (EKC) of carbon emissions in Hebei Province. The improved STIRPAT model was also applied to assess the driving factors and reduction paths for carbon emissions in Hebei Province. The results lead to three main conclusions. Firstly, carbon emissions and economic growth in Hebei Province are in a positive correlation stage which has not formed the EKC curve, and the “decoupling” stage between carbon emissions and economic growth has not arrived yet. Secondly, the industrial structure, per capita GDP, fixed assets investment, population size and urbanization rate account for the highest proportion of carbon emissions. Carbon emissions can be reduced greatly by changing the energy structure, in which the proportion of coal is decreased year by year. Environmental regulation also has an obvious effect on the reduction of carbon emissions. Thirdly, it is suggested that the reduction of carbon emissions in Hebei Province should focus on four tasks: controlling the development of heavy industry, avoiding overcapacity, optimizing the industrial structure and accelerating the development of clean energy.

Vulnerability assessment and impact factor analysis of marine economic system based on fuzzy comprehensive evaluation model

It is crucial to examine the vulnerability of the marine economy and analyze the main influencing factors to promote the sustainable development of marine economy. In this rearch, a vulnerability assessment index system of marine economic system was constructed from four aspects: stress, sensitivity, elasticity and response ability. Combined with the coefficient of variation method, 40 assessment indexes in the index system were objectively selected and reduced. Based on the assessment set obtained from the fuzzy comprehensive evaluation model, the weighted average method and weighted linear sum method were used to measure the vulnerability level type and evolution characteristics of the marine economic system. The key influencing factors were analyzed using a principal component analysis. We found that the vulnerability of Jiangsu's marine economic system in 2007–2016 was moderate and low, and it was significantly improved during 2012–2015, especially in 2015, it was mild vulnerable and below. The GDP of coastal areas, fixed asset investment of the whole society, value added of marine and related industries, coastal wind power generation capacity, per capita consumption expenditure of urban residents and list all were the key factors affecting the vulnerability of the marine economy. We analyzed the characteristics and influencing factors of vulnerability change and put forward targeted suggestions.

Countermeasures to Promote the Continuous Expansion of Fixed Investment Scale and the Continuous Optimization of Investment Structure Taking Anhui Province as an example

As one of the "troikas" driving economic growth, investment plays an important role in economic development. In order to promote the sustainable development of overall investment in Anhui Province and break through the bottleneck of public investment development, firstly, through a comprehensive exposition and analysis of the current situation of overall investment development, it is found that the investment in fixed assets in Anhui Province is growing steadily. The supporting role of infrastructure investment is prominent, the growth rate of real estate investment is obvious, investment in high-tech field has become a new growth point, investment in social field has continued to increase, funds in place have increased steadily, and the gap between fixed asset investment in various cities has been further narrowed. Secondly, exploring the factors restricting the overall investment development, it is found that the overall investment structure of Anhui Province is not perfect, the investment and financing is difficult and the investment efficiency is low. Finally, we put forward countermeasures and suggestions, that is, seeking progress in the stability of fixed asset investment and promoting the upgrading and optimization of investment structure; Broaden financing channels and release the potential of private investment; Strengthen investment supervision and improve investment efficiency.

Cash on the table? Imperfect take-up of tax incentives and firm investment behavior

We investigate whether investment incentives work in less developed countries by exploiting the introduction of accelerated depreciation (AD) for fixed asset investment in China as a natural experiment. In contrast to the large positive impact of similar tax incentives in the U.S. and U.K. found in recent studies, we document that AD was ineffective in stimulating Chinese firms’ investment. Further, using confidential corporate tax returns from a large province, we find that firms fail to claim the AD benefit on over 80% of eligible investments. Firms’ take-up is significantly influenced by their taxable positions and tax sophistication. Moreover, resources of local tax authorities help improve awareness of the policy. Our study contributes to the understanding of conditions under which tax incentives for investment can be effective.

Manufacturing Company Debt and Its Moderation Effect on Capital Structure: The Case of Public Company in Indonesia

Debt is one of the important sources of fund for Indonesian companies. The previous research of manufacturing companies listed on Indonesia Stock Exchange (IDX) in 2015-2017 indicated debt to equity ratio is 111%. The debt could probably cause disadvantages. There are requirements from external parties when companies request sources of funds, especially when conducting Initial Public Offerings (IPOs). There should also be debt covenants between company and debtor. However, the proper debt management will have a positive effect on capital structure. Therefore, this research aims to explore the effect of long-term debt (LTD), fixed assets (FA), earnings per share (EPS) and net income (NI) on capital structure (CS), assuming that LTD will moderate the effect of FA, EPS, and NI on equity. The research sample is 32 of manufacturing companies that conducted IPOs on IDX in period of 2018-2020, which were purposively taken based on the criteria of publishing annual financial report and having complete data needed in this research. Fortunately, the research found 11 companies for 2018; 9 companies for 2019; and 12 companies for 2020. The multiple linear regressions with cross data section show NI, FA, and EPS affect CS significantly; while LTD does not influence CS. However, the LTD significantly quasi-moderates the effect of FA on CS. While the LTD significantly moderates purely the effect of NI on CS. Therefore, the companies should manage the NI for investment in FA and increase the effectiveness of LTD's management in optimizing capital structure.

Innovative coupling and coordination: Automobile and digital industries

• Coupling evaluation model and the entropy method have been applied to measure the degree of integration between China's automobile and digital industries. • Predictions of the future development trends of the two industries were attempted. • Conclusions of the research revealed that China's automobile and digital industries are coupled, and 2018 is the turning point, from uncoordinated to coordinated. • The analysis results suggested that the characteristic contribution of China's automobile and digital industries are on the contrary. The coupling and coordination of automobile and digital industries are crucial for developing these industries and to promote the high-quality development of the automobile industry. In this study, a coupling evaluation model and a backpropagation (BP) neural network model were used to construct the coupling evolution trend of the coordinated development of these industries. The results showed that China's automobile and digital industries are coupled. 2018 was the turning point from uncoordinated to coordinated. It is predicted that the coupling coordination development degree will increase from 0.572 in 2019 to 0.739 in 2022. The main contribution of growth came from research and development investment in the automobile industry and fixed asset investment in the digital industry, which is a factor of development potential. However, the characteristic contribution of the digital industry comprised development efficiency, development potential, development scale, and development structure in the decreasing order, whereas the characteristic contribution of the automobile industry comprised the aforementioned parameters in the increasing order. The research results allow the development of industrial policies for the coupling and coordination of these industries.

Public Goods Provision and Chinese Economic Development

The provision of more and better public goods is part of the Chinese efforts to emphasize the quality rather than the quantity of economic growth. Provision of public goods such as education, public health, elderly care, environmental preservation, protection, and restoration, basic research, infrastructure, social safety net, and alleviation of poverty has been vastly expanded in China since the establishment of the People’s Republic of China in 1949, with significant positive results in all these areas. The provision of public goods has also raised the potential GDP of the Chinese economy through its effects on increasing the aggregate demand for investment and consumption, the productivity of the labor force, and the rate of return on other fixed-asset investments. Public goods are by their very nature mostly “local”, and their provision is consistent with the Chinese “dual-circulation development strategy” with primary focus on domestic circulation. The provision of public goods also constitutes a form of redistribution in kind, e.g., clean air and water, which can be enjoyed by everyone, and hence also directly advances the goal of ”common prosperity”. Despite significant increase in the degree of income inequality in China since the mid-1980s, the welfare of all Chinese people has improved significantly. However, the provision of public goods frequently results in negative value-added at market prices, and therefore reduces, rather than enhances, the rate of growth of measured GDP. Finally, increasing the provision of public goods can be a significant source of growth of the domestic aggregate demand for both consumption and investment, over and above what increases in household income alone are able to provide. Maintaining an adequate growth of aggregate demand is essential for continued Chinese economic prosperity.

Determinants of investment activity in the Russian fishing industry

Subject. We investigate determinants of fixed asset investment in the Russian fishery sector. Objectives. The purpose is to unveil meaningful patterns and primary drivers of investment activity in the Russian fishing industry. Methods. The study draws on methods of comparative analysis, statistical analysis, economic modeling, graphical interpretation, and logical generalization. The informational base of the study includes statistical data of the FAO, IMF, OECD, Rosstat, and the Federal Agency for Fishery. Results. We examined determinants and investment trends in the Russian fishery sector from the 1990s to 2020. The main factor, influencing the investment trends, proved to be the pre-tax profits in the sector. It explains over eighty percent of changes in the level of investment in fixed assets. Another important, however, less significant factor was a trend towards decline in rates on loans. Both factors had the greatest impact, with the lag of one year. Conclusions. Our analysis found no evidence for a significant impact of fishing quotas, which are a tool of the State policy, on fixed asset investment in the Russian fishery sector. The findings can be useful for evaluation of the public investment policy and for more effective investment decisions in the fishing industry.

Analysis on Spatial-Temporal Evolution of Ecological Carrying Capacity in Greater Bay Area Around Hangzhou Bay

The Great Bay Area around Hangzhou Bay is the intersection of multiple national strategies the coastal open zone, the Yangtze River Economic Belt, the Yangtze River Delta urban agglomeration and the Belt and Road Initiative. Ecological carrying capacity is the maximum capacity of an ecosystem to bear human activities on the premise of maintaining its normal operation, which can provide a reference for judging the degree of regional sustainable development and future planning and construction. In this study, the evaluation index system of ecological carrying capacity was constructed based on the PSR model. The spatio-temporal evolution of ecological carrying capacity in the Great Bay Area around Hangzhou from 2006 to 2019 was analyzed using the TOPSIS model, exponential smoothing method and GIS spatial analysis method. The results show that the pressure is carrying capacity generally decreases, and it is predicted to decrease from 2020 to 2022. the state bearing capacity tends to be ideal, and the development prospect is good; response bearing capacity and comprehensive bearing capacity are highly overlapped, reaching the minimum and maximum in 2012 and 2016, respectively; the ecological carrying capacity of cities in the northwest of Hangzhou and Shanghai is in good condition. After the unified planning, the ecological carrying capacity of Jiaxing and other cities has been significantly improved, and the ecological carrying capacity of cities in the bay area is more inclined to balanced development. Combined with the correlation analysis, it is concluded that the proportion of fixed assets investment in the construction of landscaping public facilities in GDP is the key factor restricting the comprehensive carrying capacity. The research results are of great significance to formulating policies for sustainable socio-economic development in the Bay Area.

Stringent environmental regulation and capital structure: The effect of NEPL on deleveraging the high polluting firms

This paper studies the impact of stringent environmental regulation on the financial behavior of firms. Using panel data of Chinese listed companies from 2009 to 2018, we take the implementation of the new environmental protection law (NEPL) in 2015 as a quasi-natural experiment and identify its impact on the deleveraging of high polluting firms. The possible reason is that the nationwide legal construction by NEPL will set the tone of environmental governance for a long time in the future. Considering the environmental legitimacy and sustainable development, firms change their strategies and reduce their short-sighted behaviors, which are reflected in the changes in investment and financing. On the one hand, banks cut down loans to high polluting firms with environmental risks and increase their financing costs, thereby reducing leverage. On the other hand, firms reduce fixed asset investment and increase R&D and environmental expenditures under the formal supervision of the government and unformal supervision of other stakeholders, realizing deleveraging and green transformation. Considering the heterogeneity of firms, NEPL has a greater effect on state-owned firms, small-scale firms, technology-intensive firms, firms without political connections, high financing constraints firms, and firms in the decline stage. This study identifies the effectiveness of environmental governance on the deleveraging of high polluting firms for lowering financial risks for the first time. Our empirical evidence strongly supports that China's new environmental protection law can realize a win-win situation of the environment and economy.

Spatial-temporal differentiation and influencing mechanism of green development efficiency in three major urban agglomerations in Zhejiang Province, China.

Improving the green development efficiency of the three major urban agglomerations in Zhejiang is an important way to faster build the pilot demonstration area of beautiful China. Based on county panel data from 2000 to 2019 of 41 counties (cities) included in the three major urban agglomerations, we combined the super-efficiency SBM model with window analysis to evaluate the efficiency, and used spatial econometric analysis method to study the spatial distribution and the differences in regional difference. Furthermore, the fixed panel fixed effect model was used to explore the differential influencing mechanism. The results showed that green development efficiency of the three major urban agglomerations increased gradually with fluctuations during the study period. The distribution of efficiency values gradually shifted from a situation of 'high in the north and low in the south' to a 'relatively common and coordinated' development in the various regions. There was a significant spatial agglomeration effect in green development efficiency of the three major urban agglomerations, but it presented fluctuating phenomenon among cities which were at the similar level. The average green development efficiency of central Zhejiang urban agglomeration was the highest. The development within the three major urban agglomerations was relatively stable. The annulus Hangzhou Bay urban agglomeration came next, with stable development. The Wenzhou-Taizhou coastal urban agglomeration was the lowest, but the efficiency enhancement was the largest. The increases in population density, along with the proportion of added value of tertiary industry in GDP, per capita industrial added value, local fiscal expenditures, education expenditures and per capita actual use of foreign capital could improve the efficiency of green development. However, the increases in industrial electricity consumption and fixed asset investment in kennels would inhibit the improvement of green development efficiency. The impacts of per capita industrial added value, local fiscal expenditure, education expenditure and per capita actual use of foreign capital on urban agglomerations were heterogeneous among different cities.

Evaluation research on the regional green development——take Liuzhou, Guangxi Zhuang autonomous region as an example

The Green Economy Development is an inevitable way for cities to develop with high quality. Based on the theoretical connotation of green development and the actual development of Liuzhou in Guangxi Zhuang Autonomous Region, this paper constructed a regional green development level evaluation index system from three aspects: economic development, sustainability and green development capabilities. Criteria Importance Through Inter-criteria Correlation (CRITIC) method was applied to measure and analyze the level of green development of Liuzhou City. From 2011 to 2018, the total level of green development of Liuzhou showed a fluctuated upward trend. Among them, the total level from 2011 to 2012 showed an upward trend, and it fell back from 2012 to 2013, then the total level increased greatly from 2013 to 2017 and decreased slightly from 2017 to 2018, and the peak of 0.572 appeared in 2017. The following suggestions were put forward based on the analysis. First, Liuzhou should promote the high-quality development of the tertiary industry, accelerate the transformation of the industrial structure, and set the appropriate fixed asset investment target. Second, Liuzhou should promote energy conservation and emission reduction, increase environmental protection, and focus on the concentration of atmospheric particulate matter and the comprehensive utilization rate of industrial solid waste. Finally, Liuzhou should increase funding for scientific and technological research and pay attention to talent introduction and training.

The role of economic development on the effectiveness of industrial pollution reduction policy in Chinese cities

The societal impact of industrial pollution produced by economic activities is a global concern. This paper presents a causal analytic framework to evaluate the effectiveness of government policy on the reduction of industrial pollutants in 284 Chinese cities between 2005 and 2016. This study reports on the interaction between industrial pollution reduction and the level of regional economic development from four dimensions by using analysis of variance (ANOVA),multivariate analysis of variance (MANOVA) and a bootstrap autoregressive-distributed lag (ARDL) test. The results indicate that city government policies, economic power, the influence of megacities, and the geographical region of the cities have significant effects on industrial pollution, in particular, sulfur dioxide (SO2) emission reduction and dust reduction. After taking account of the interaction effect of city government policies and the other three factors, it was found that economic power is the only factor to have a significant interaction with city government policies on industrial pollution reduction. The ARDL test found long-term causality among industrial pollution reduction, fixed assets investment, and GDP per-capita in city, urban agglomeration, and regional levels. This study sheds new light on the relationship between regional economic development and the development of sustainable societies.

An Empirical Analysis on the Influencing Factors of Economic Growth in Anhui Province

This paper selects the per capita consumption expenditure, the whole society's fixed asset investment, fiscal expenditure and the turnover of technology contracts from 2000 to 2019 as the explanatory variables and GDP as the explanatory variables, and uses the regression analysis method to make a quantitative analysis on the factors of economic growth in Anhui Province. The results show that the GDP of Anhui Province is greatly affected by per capita consumption expenditure and technology contract turnover on the premise of excluding the autocorrelation between variables. Finally, it puts forward some targeted policy suggestions for the high-quality economic development of Anhui Province.

Fixed asset changes with carbon regulation: The cases of China

Carbon regulation might threaten corporate competitiveness and thus guide their production and investment behaviours. Using the difference-in-differences (DID) model, we analyze the impact of China's carbon emission trading (CET) pilots on the fixed asset and its investment. The main findings are as follows: (1) CET reduces the fixed assets value and investment of regulated companies. (2) The decline in the fixed asset and its investment represents more significantly in the economically developed areas, pilots with grandfathering allocation, energy and manufacturing industries, and state-owned enterprises. (3) Potential influence channel estimation indicates that the fixed-asset investment decreases through investment diversion, rather than operation transfer. (4) CET reduces the over-investment in the fixed assets of regulated companies and improves their fixed-asset investment efficiency. This study supplements the literature on carbon regulation and corporate behaviours, potentially contributing to the next stage of climate governance and global decarbonization.

Land Use Change in the Cross-Boundary Regions of a Metropolitan Area: A Case Study of Tongzhou-Wuqing-Langfang

Since the 1980s, metropolitan areas have increased worldwide due to urbanization and regionalization. While the spatial integration of the labor and housing markets has benefitted the development of cities within metropolitan areas, they have also brought great challenges for land governance; this is particularly evident in cross-boundary regions due to the complex relations between the markets and the regulations and between governments at different levels. Extensive research has been conducted on the city-level analysis of socioeconomic integration, land use development, and urban governance within metropolitan areas; yet, it is insufficient for understanding the intricate interplay between the various forces in such regions. This study aims to reveal the dynamics of land use change from 1990–2020 and its driving forces in the recent decade in the Tongzhou-Wuqing-Langfang (TWL) region—a typical cross-boundary area between Beijing, Tianjin, and the Hebei Metropolitan Area—using Landsat imagery. We employed the land-use dynamic degree, kernel density analysis, principal component analysis, and multiple linear regression to explore the spatiotemporal patterns of land use change and its driving factors at the district/county level. The results show that the general land use changes from cultivated and forest land to urban and rural construction land across the region. The speed of the trend varies considerably over time between different areas as the land use policies and regulations of each local government change. The population growth and the tertiary and secondary industry growth are the main driving factors for the change in construction land across the whole TWL region, while the urbanization rate and fixed asset investment have different impacts across the cross-boundary region. The results suggest that expanding the integration of land use policies and regulations in the cross-boundary region is urgently required.

Nexus among air pollution, enterprise development and regional industrial structure upgrading: A China's country panel analysis based on satellite retrieved data

China's development model of relying on heavy industry has brought huge environmental costs. Serious haze pollution has posed a threat to high-quality economic development and people's healthy life. Exploring the relationship between air pollution and industrial development and promoting the coordinated governance of economy and environment has become an important task in China's new era. Based on the satellite inversion PM2.5 concentrate data and micro industrial enterprise data in China's county-level areas, this paper uses the instrumental variable and two-stage least square (2SLS) method to test the impact of regional air pollution (RAP) on the regional industrial structure upgrading (RISU), and further reveals its impact mechanism. The results show that: (1) RAP has a negative impact on the RISU, and the introduction of instrumental variable and 2SLS method can overcome the endogenous problem of regression. (2) on average, for every 1% increase in PM2.5 concentration, the regional industrial structure height will decrease by 2%. (3) RAP hinders the RISU by affecting enterprises' fixed assets investment and innovation activities. And the sensitivity of innovation activities of state-owned enterprises to RAP is lower than that of other ownership enterprises. According to the research of this paper, some pertinent policies and suggestions are proposed to provide new decision-making basis for national policymakers.