Increase In Capital Expenditures Research Articles

MODERN TOOLS FOR MANAGING LOCAL BUDGETS IN THE CONTEXT OF DECENTRALISATION

The crisis in Ukraine's economy requires the government to take significant transformation steps. The issue of decentralization of state powers in favor of local self-government as a basis for the transition to a new administrative-territorial system remains relevant. After all, the current assistance from partner countries to rebuild infrastructure and provide social guarantees does not cover the needs of local governments. Today, the budgets of hromadas, which are formed in accordance with the basic principles of the Concept of Reforming Local Self-Government and Territorial Organization of Power in Ukraine, demonstrate an increase in revenue sources, but these resources are not enough to restore the country's economy. The purpose of the article is to highlight the results of decentralisation in Ukraine; to identify the impact of structural changes in the national economy on the financial capacity of local self-government bodies. Methodology. To achieve this goal, the article uses the structural method, comparative analysis of empirical data, and abstract and logical generalisation. Results. The paper examines the current realities of filling the budgets of hromadas. It finds that, despite the hostilities and the consequences of the coronavirus crisis, some local budgets in 2022-2023 were executed with a surplus. However, one of the factors behind this situation is the increase in "military" income tax revenues, which has significantly strengthened local budgets, but at the same time led to the misuse of funds. At the same time, there was an increase in capital expenditure in local budgets. Subsidies for education and health care, basic, additional and other budgeted transfers were transferred from the state budget to the budgets of local governments. However, the study points out the imperfection of the current equalisation system, which requires the construction of an optimal calculation model. Practical implications. As a basis, it is proposed to use the practice of the leading countries of the world, which is to increase the interest of local authorities in independently searching for additional sources of budget revenues and to reduce the pressure from the government to withdraw funds. Value/originality. Increasing their own revenues, which do not depend on the government's policy on the distribution of national taxes and fees, will allow hromadas to plan expenditures on priority areas regardless of changes at the political level.

Commercial real estate and air pollution

AbstractWe analyze the causal effect of air pollution (acute fine particulate matter) exposure on the commercial real estate (CRE) market. We instrument for air pollution using changes in local wind direction to find that an increase in fine particulate matter exposure leads to a contemporaneous decrease in CRE market values and (net) income as well as an increase in capital expenditures. Heterogeneous treatment analysis within a building‐level fixed effects framework uncovers that the negative effect on market values is concentrated in the office sector, consistent with the notion that air pollution‐induced decreases in CRE values are driven by a reduction in CRE assets’ productive capacity. Additionally, we document that the negative impact on (net) income is concentrated in the apartment sector, which is consistent with a broad set of local disamenity mechanisms identified in previous residential real estate literature.

Firm productivity in the Energy-electricity sector over the last two decades with crisis: The role of cross-listing

Novel to the literature, this study examines how cross-listing impacts firms’ productivity in Energy sector. Annual data of firm cross-listing over the last two decades with crisis (2002-2022) is employed for our analyses. We find evidence of significant drop in productivity after Energy firms (including electricity firms) cross-list in the US market. Meanwhile, we do not find strong evidence of significant decreases in firm productivity from other sectors in our sample. We note one possible explanation for this finding is that after cross-listing, Energy firms appear to utilize their increased capital to heavily invest in infrastructure, equipment, and plants for expansion, which might eventually damage their productivity. To seek for more thorough explanations for such decreases in Energy firms' productivity after cross-listing, we identify the determinants of firm productivity in Energy sector. Our results provide strong evidence that the increases in capital expenditures after Energy firms cross-list appear to be associated with the decreases in firm productivity. Notably, we note that negative impacts of capital expenditures (after cross-listing) and state ownership on firm productivity become much stronger and more statistically significant in developed countries than in emerging countries. Last, corporate governance and firm liquidity are found to be two determinants that help improve firm productivity in both electricity firms and other energy firms.

The Determinants of Early Investments in Urban School Systems in the United States

Abstract Growth in per-pupil education spending in the United States was mostly flat until 1918, after which it increased by almost 100 percent in a brief six-year period. This is the fastest documented increase in per-pupil education spending in U.S. history. Using newly digitized biennial data on 386 of the largest urban school systems in the United States from 1900 to 1930, I investigate the origins of this spending increase. I first document that there was significant expansion in all spending and revenue categories with particularly large increases in capital expenditures, which were likely financed through borrowing. My results suggest that state education policies were largely ineffective in increasing school resources, as laws increasing state aid to local districts crowded out local receipts while compulsory schooling and English-only laws were not accompanied by increases in receipts or expenditures per pupil. Rather, I find that substantial increases in educational spending per pupil were linked to women's suffrage. Providing women with the right to vote can explain about 20 percent of the increase in per pupil spending from 1900 to 1930.

What are firms borrowing for? The role of financial assets

Recent studies show that nonfinancial corporate debt is weakly correlated with aggregate demand, raising the question: Why is the nonfinancial corporate sector borrowing? We use flow of funds data for fifteen advanced economies since 1990 to econometrically show that nonfinancial corporate borrowing primarily finances financial asset accumulation. We show that an increase in borrowing of one percent of GDP is associated with an increase in capital expenditures of only 0.013 percent of GDP, but a 0.82 percent of GDP increase in the acquisition of financial assets net of non-debt liabilities. This rise in net financial asset acquisition is dominated by gross financial asset accumulation. Furthermore, corporate borrowing is primarily associated with non-cash financial assets, and is not associated with foreign direct investment. These results suggest that the nonfinancial corporate sector’s growing orientation toward accumulating financial assets underlies the weak relationship between their borrowing and aggregate demand.

Effect of Level of Education, Investment, Capital Expenditures and Economic Growth on Unemployment Rates in Palangka Raya City

This study aims to determine and analyze; the effect of formal education level, increase in investment, increase in capital expenditure and economic growth on the unemployment rate in Palangka Raya City. The research method used in this study is a statistical approach, multiple linear regression analysis. This research was carried out in the City of Palangka Raya and the location of this research was carried out in the City of Palangka Raya at the Education Office of the City of Palangka Raya, the Office of Investment and Integrated Services of the City of Palangka Raya, and the Central Bureau of Statistics of the City of Palangka Raya, Secondary data for 2005-2020 obtained by research library method. The results showed that of the four variables analyzed there were three that had a significant effect on reducing the unemployment rate, namely education, investment and economic growth. While the variable amount of capital expenditure has no significant effect and tends to be positive.

Pengaruh Capital Expenditure dan Cash Holding terhadap Perataaan Laba

This study aimed to determine the effect of capital expenditure and cash holding on earnings smoothing in manufacturing companies listed on the Indonesia Stock Exchange know 2016 to 2021. The data analysis method in this study uses multiple linear regression to predict the effect of independent variables. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2021. The sampling method in this study was the purposive sampling method. The results showed that capital expenditure affects earnings smoothing. This proves that adding fixed assets, as capital expenditure indicates, increases profits. Suppose the increase in capital expenditure will increase the profit level significantly. Cash holding affects earnings smoothing. This proves that the higher the cash holding or, the higher the cash in the company, the higher the earnings smoothing.

Відтворення основного капіталу лісового господарства в умовах цифровізації, євроінтеграції та децентралізації: еколого-економічні аспекти

It is substantiated that the main capital of forestry economy includes the technical-technological, production-economic and natural-resource components, which requires the formation of a modern model of ecological and economic regulation of its reproduction to prevent the processes of exhausting and unbalanced forest use. It is determined that at the present moment the decisive influence on the paces, proportions and scale of reproduction of the main capital of forestry economy is exercised by the processes of European integration, digitalization and decentralization, which to some extent is reflected in the State Strategy for Forest Management of Ukraine until 2035. Studies have shown that in 2013–2021 in the dynamics of most articles of capital expenditures for the purchase of production equipment, cars, devices, machinery and mechanisms, there is an upward trend, owing to both the real growth of capital investments and devaluation-inflationary processes. It is revealed that in 2013–2021 there is a reduction in total capital expenditures for the purchase of road construction equipment, which reduces the ability of permanent forest users to develop a network of forestry roads. It is substantiated that deepening the digital transformation of the forest management system and the movement of forest products requires an increase in capital expenditures in the acquisition of modern software and other information and digital technologies, which will lead to an increase in the share of intangible assets in the structure of main capital of forestry economy. It is found that in recent years certain institutional prerequisites have been formed for diversification of sources of financial and investment support for the reproduction of fixed capital of forestry economy due to an increase in the volume of bank lending and additional attraction of foreign investments. It is proved that a perspective institutional form of diversification of sources of financing for the reproduction of main capital are public-private partnership agreements, which will ensure the consolidation of resources of the public and corporate sectors to accelerate the processes of expanded reproduction and economic development of the forest resource potential of the country.

Cash shortfalls in IPO firms

We find that most IPO firms will run out of cash soon if they did not receive proceeds from IPOs. The cash shortfalls are not caused by increases in capital expenditure, R&D, M&A, or debt repayment and persist during the 5 years after IPO. Negative net cash flows help explain the persistent cash shortfalls. These results are consistent with the funding horizon theory. IPO firms with more initial cash shortfalls also have lower cash flows in the next 5 years, suggesting that initial cash shortfalls can be used to predict the future operating performance of IPO firms.

Effectiveness of Regional Government Expenditure in Reducing Unemployment and Poverty Rate

Poverty rate in Indonesia is currently relatively high that requires real action from the government to reduce it. The government efforts to reduce the poverty rate are reflected in the government expenditure. This research reveals the regional government expenditure effectiveness in reducing poverty and unemployment rate in South Sulawesi Province. Data used in the research are panel data, which is a combination of cross-section data of 24 regencies and city and time series data in 2009-2018. The data will be analyzed using econometric models with simultaneous equation system. The research finds that private investment has a significant influence in reducing poverty rate, whereas capital expenditure has a significant influence in increasing private investment. Moreover, investment has a significant influence in improving gross regional domestic product in industrial sector as well as other sectors. Population has a positive influence in improving poverty rate indicating that regional government should support the planned family policy. The result of policy simulation indicates that an increase in capital expenditure, total government expenditure, and goods and services expenditure by the regional government, brings positive impact on economic growth and poverty reduction.

Quality of Public Services in Local Governments in Indonesia : A Study of Capital Expenditures and Government Internal Control Systems

Regional autonomy is a policy the central government gives to local governments to regulate their regions. One of these authority policies is public service. Public services are a series of activities in the form of services following the law's mandate in the form of goods and services to fulfill general needs for the welfare of society. Public services for the community come from the realization of local government budgets with an internal control mechanism to regulate the fulfillment of public services. Increased budget realization can support regional infrastructure to provide better public services. Capital expenditure is not a service; if it is used as a service, it is necessary to have a supervisory mechanism such as an internal supervisor of the local government to support the fulfillment of better public services and improve the welfare of the community. The increase in capital expenditure, where the output is assets, is the most tangible thing that is felt by the community; it is necessary to have internal control within the local government, namely the maturity of the SPIP to run effectively and efficiently. This study examines the effect of capital expenditure and SPIP maturity on public services. The sample and population used in this study were 514 local governments with up to 1887 all local governments in Indonesia during 2016 – 2019. The results of this study are that capital expenditure variables have a positive effect on public services, and SPIP maturity has a positive effect on public services.

Effect of Education Level, Investment, Capital Expenditure and Economic Growth on Unemployment Rates in Palangka Raya City

This study aims to determine and analyze; the effect of formal education level, increase in investment, increase in capital expenditure and economic growth on the unemployment rate in Palangka Raya City. The research method used in this study is a statistical approach, multiple linear regression analysis. This research was carried out in the City of Palangka Raya and the location of this research was carried out in the City of Palangka Raya at the Education Office of the City of Palangka Raya, the Office of Investment and Integrated Services of the City of Palangka Raya, and the Central Bureau of Statistics of the City of Palangka Raya, Secondary data for 2005-2020 obtained by research library methodThe results showed that of the four variables analyzed there were three that had a significant effect on reducing the unemployment rate, namely education, investment and economic growth. While the variable amount of capital expenditure has no significant effect and tends to be positive

The Effect of Taxes and Capital Expenditures on Economic Growth The Effects of the COVID-19 Pandemic in Indonesia

This study aims to determine tax revenues and capital expenditures before and during the COVID-19 pandemic on Indonesia's economic growth. The secondary data from 1980 to 2019 was collected through Badan Pusat Statistik (BPS). This study uses a descriptive quantitative approach. The analysis used in this study is to use the ARDL (Autoregressive Distributed Lag) method. The survey results indicate that tax revenues and capital expenditures in the short and long term have a positive and significant effect on economic growth in Indonesia, which follows the hypothesis of this study. Even tax revenues and capital expenditures have a significant positive impact on fiscal policy to help overcome the pandemic's economic impact. The resulting coefficient value is 0.6705. So that in the long term, an increase in tax revenue of 1 percent will increase economic growth by 0.6705 percent. Furthermore, the long-term capital expenditure variable also has a positive and statistically significant effect, with the resulting coefficient of 0.1743. an increase in capital expenditure of 1 percent will increase economic growth by 0.1743 percent.

Effects of Tax Revenue and Capital Expenditure on Economic Growth : A Case Study of the Union Territory of Puducherry, India

The growth effects of the government’s own tax revenue and capital expenditure were estimated for the Union Territory of Puducherry using the ordinary least squares multivariate regression model for 2005–2018. The results suggested that both government’s own tax revenue and capital expenditure had significant positive effects on the economic growth of the Union Territory. For example, one unit increase in capital expenditure could boost economic growth (NSDP) by 13%. Similarly, one unit change in the government’s own tax revenue collection could potentially change the NSDP of the Union Territory by 30%. Therefore, the Puducherry government can focus on increasing its capital expenditure to enhance its economic growth. Similarly, it can increase its own tax revenue (the taxes under its jurisdiction) by broadening its tax base. These may help the government boost its growth and thus correct its internal fiscal imbalance.

Optimization of 5G/6G Telecommunication Infrastructure through an NFV-Based Element Management System

Network Function Virtualization (NFV) is an enabling technology that brings together automated network service management and corresponding virtualized network functions that use an NFV Infrastructure (NFVI) framework. The Virtual Network Function Manager (VNFM) placement in a large-scale distributed NFV deployment is therefore a challenging task due to the potential negative impact on performance and operating expense cost. The VNFM assigns Virtual Network Functions (VNFs) and operates efficiently based on network demands with resilient performance through efficient placement techniques. The degradation in performance and a tremendous increase in capital expenditure and operating expenses indicated this chaotic problem. This article proposed a method for VNFM placement using information on the resources of each nodes’ Element Manager (EM), which is an efficient method to assign VNFs to each node of element management systems. In addition, this paper proposed an Optimized Element Manager (OEM) method for looking at appropriate EMs for the placement of VNF through periodic information on available resources. It also overcomes challenges such as delays and variations in VNFs workload for edge computing and distributed cloud regions. The performance is measured based on computations performed on various optimization algorithms such as linear programming and tabu search algorithms. The advent of the new service provisioning model of BGP-EVPN for VXLAN is materialized by integrating VTS with OpenStack. The numerical analysis shows that the proposed OEM algorithm gives an optimal solution with an average gap of 8%.

Methodology for Assessing Financial Results of Implementation of Energy Innovations Depending on their Progressiveness

The purpose of this article is to develop a methodology that can be used for an objective assessment of financial results and to support managerial decision-making regarding the implementation of energy innovations. The methodology is developed using an interdisciplinary approach and is based on the fuzzy logic theory and method, which allows converting expert judgments and qualitative assessments into final quantitative indicators with some degree of confidence. The methodology includes five input variables that form a fuzzy set "progressivity versus regressivity of energy innovations". The article considers the main criteria based on which an energy innovation can be classified as technologically progressive or regressive. The article demonstrates the efficiency of the developed methodology drawing on the example of two projects for the implementation of energy innovations. The data obtained have shown that one of the innovations can be considered conditionally technologically progressive only by 46%, while the second is certainly technologically progressive by 92%. The conducted correction of the basic financial results allows demonstrating that the implementation project of a conditionally technologically progressive innovation is not cost-effective and requires an increase in capital expenditures or a reduction in expected revenues since it requires a balanced assessment of the feasibility of implementing innovation.

Are Disasters a Risk to Regional Fiscal Balance? Evidence from Indonesia

Indonesia is an archipelago country and is fairly vulnerable to disasters. While disasters generally affect government revenue and expenditure, their effects likely vary by country. This study examines the effect of disasters on the fiscal balance, revenue, and expenditure of local governments. We used panel data and fixed effects methods to estimate the degree to which disaster severity influences budgetary solvency at the district and provincial levels in Indonesia between 2010 and 2018. This study revealed that disasters can strain fiscal balance at the district and provincial levels due to a decrease in own-source revenue and an increase in social assistance expenditure, capital expenditure, consumption expenditure, and unexpected expenditure. The district expenditure most threatened by disasters is consumption expenditure, while the provincial expenditure most threatened is unexpected expenditure. We also found that an increase in capital expenditure can lead to financial burden due to delays of planned projects or post-disaster reconstruction. Based on these findings, it is clear that some forms of insurance or other financing schemes are necessary to mitigate the adverse impacts of disasters on regional fiscal balance.

PENSION REFORM - GOALS AND ESTIMATED RESULTS

PENSION REFORM - GOALS AND ESTIMATED RESULTS

БЮДЖЕТНЕ ІНВЕСТУВАННЯ НА МІСЦЕВОМУ РІВНІ

The article investigates the structure and dynamics of capital expenditures and capital investments at the expense of local budgets during 2010-2019. It has been established that since 2015 in Ukraine there has been an increase in capital expenditures of local budgets, both in the total amount of expenditures of local budgets, and in GDP as well. This is due to the growth of the local budgets resource base in connection with the decentralization reform. Also, a positive trend of growth in the percentage of capital expenditures of local budgets is revealed. This fact reflects the budgetary investment intensification at the local level. It was found that the growth of capital expenditures from local budgets occurs in the direction of the growth of capital transfers to enterprises (up to 40% in the total amount of capital expenditures). This may be due to the replenishment of the registered capital of utilities, a significant part of which is formed because of a medical reform. Major maintenance, reconstruction and restoration traditionally remain at a high level in the structure of local budgets capital expenditures. The significance for local budgets and procedures for obtaining various types of financial support for regional development from the state budget is also studied. It has been established that the investment potential of local budgets is formed by their own revenues to the development budget, as well as by funding from the state budget in the form of subventions to local budgets for the formation of the united territorial communities infrastructure (0.3-0.4% in the revenues of local budgets); subventions for the implementation of measures for the certain territories socio-economic development (0.2-1.2%) and financing of investment projects at the expense of the State Fund for Regional Development (0.7-1.03%). It was found that the growth of capital investments from local budgets to a small extent depends on financial support from the state budget. It was also clarified that the use of funds for the regional development financial support at the expense of the state budget does not quite correspond to the goals defined by legal acts. The problems of the efficiency of financing investment projects at the expense of the SFRD funds and subventions of socio-economic development have been identified. Recommendations are given for eliminating the identified problems of the effectiveness of financing investment projects for regional development.

Long-run Performance of Debt Renegotiations: Large-Sample Evidence

We examine the long-run performance of over 17,000 debt renegotiations. We find that, compared with non-renegotiating firms matched on size, book-to-market, profitability, and investment, renegotiating firms, on average, deliver 11 (19) percent higher stock returns over the three (five) years after the renegotiation. This renegotiation effect occurs regardless of the market’s initial reaction, is strongest for lender consents/waivers, decreases with the borrower’s bargaining power, and is causal. Renegotiations lead to immediate increases in capital expenditures and working capital but lagged improvements in earnings and cash flow from operations. Renegotiations followed by larger improvements in accounting fundamentals have better long-run stock returns.