Investment Efficiency Research Articles

FACTOR ANALYSIS AND COST CALCULATION OF SOLAR ENERGY IMPLEMENTATION IN AVIATION MAINTENANCE, REPAIR & OVERHAUL (MRO)

Background: The global imperative to address climate change has heightened awareness of sustainable practices across industries. Emissions from the aviation industry contribute significantly to global warming, with Maintenance, Repair, and Overhaul (MRO) activities contributing to aviation emissions. Hence, efforts are needed to reduce emissions by transitioning from fossil energy to renewable energy. Methods: Used pairwise comparisons among seven factors was conducted by collecting data using structured interview from 15 expert respondents, comprising staff, managers, senior managers, and directors from five major Aviation MRO facilities in Indonesia equipped with hangar facilities. The respondents were selected based on their expertise and experience in the Aviation MRO industry. Following the structured interview, life cycle cost calculations were performed to compare the use of electricity from the national grid (PLN), leased Solar PV, and purchased Solar PV. Results: Findings revealed positive acceptance across Technical Awareness, Economy, Environment, and Policy aspects in the first structured interview section. Then provided insights into respondents' priorities, with Cost, Lifecycle, Environmental Impact, Government Support, Capacity, Quality, and Payment Scheme ranked in order of importance in selecting electricity energy sources. Additionally, life cycle cost calculations demonstrate significant cost efficiency in both investment and leasing schemes for solar photovoltaic installation, highlighting the industry's potential contribution to emissions reduction. Conclusions: Integrating renewable solar energy into hangar operations presents an opportunity for the MRO industry to enhance business efficiency while advancing environmental sustainability. Government support and incentivization are essential to encourage broader adoption of renewable energy initiatives within the Aviation MRO sector.

The Impact of Platform Information Sharing on Manufacturer’s Choice of Online Distribution Mode and Green Investment

In this study, we consider a dual-channel supply chain structure where a manufacturer invests in green products and distributes them to green-conscious consumers through an offline retailer and an online platform. The manufacturer has the flexibility to choose sales via either a wholesale mode or an agency selling mode on the online platform channel. The platform can obtain private information and decide whether to share it with the manufacturer. This study investigates the strategic interaction between the green manufacturer’s decision to use an online sales mode and the online platform’s strategy for information sharing. Our analysis reveals that under the wholesale price mode, the platform is willing to share demand information only when the manufacturer exhibits high investment efficiency. In contrast, under the agency selling mode, the platform always shares demand information regardless of the level of investment efficiency. Nevertheless, the manufacturer is discouraged from opting for the agency selling mode due to the higher commission rate. Interestingly, we observe that when the value of information is sufficiently high, the manufacturer still tends to prefer the agency selling mode, despite the added cost of the higher commission fee. Additionally, the offline retailer always benefits from the information sharing conducted by the online platform. Finally, our extended model indicates that the timing of information-sharing decisions has a significant impact on the manufacturer’s choice of mode.

How business environment of countries along the Belt and Road impacts China’s OFDI efficiency: a stochastic frontier gravity model approach

The Belt and Road Initiative (BRI) provides a new opportunity for the continued deepening of economic and trade cooperation between China and countries along the BRI route. However, different business environments among countries have led to the problem of a low and uneven distribution of China’s overall trade and investment efficiency in the countries along the route. Using the stochastic frontier gravity model, this study evaluates the efficiency of China’s outward foreign direct investment (OFDI) based on the data of 47 countries along the Belt and Road route from 2013 to 2019. The empirical results indicate that the efficiency level of China’s OFDI in countries located along the Belt and Road route is 43.39%, which suggests a regional imbalance. In terms of business environment factors, regulatory governance, civic discourse, government accountability, and regulatory quality in host countries have a positive impact on China’s OFDI. The positive effects of the BRI have enabled Chinese enterprises to better face factors such as political instability, corruption and imperfections in the legal system when investing abroad. The findings and suggestions could help the governments and enterprises of the countries along the route improve the business environment in a more targeted manner, enhance the space for economic and trade cooperation, and promote the common development of the countries along the route.

A study of production outsourcing strategies of dual oligopoly manufacturers based on quality investments

Introduction: Self-production and outsourcing are two important production strategies for manufacturers, and the production capacity and investment capacity of manufacturers and suppliers play a decisive role in the quality of products. This study aims to analyze the manufacturer’s best production strategy and the drivers of outsourcing in the context of quality.Methods: This study constructs production outsourcing game models for duopoly manufacturers, examines the trade-offs between self-production and outsourcing when suppliers have the ability to invest in quality, explores the requirements and implications of outsourcing and compares the differences between “one-to-one” and “one-to-many” outsourcing structures.Results: First, outsourcing can reduce the level of product quality and that a necessary condition for manufacturers’ outsourcing is a strong advantage in the supplier’s production costs. Second, duopoly manufacturers may face a prisoner’s dilemma as a result of outsourcing. Finally, compared to two independent suppliers, outsourcing to a common supplier can increase the level of product quality by exploiting the centralization effect and increase the firm’s profits when the market’s competition intensity is low.Conclusion: First, the production strategy balance of duopoly manufacturers is closely related to the outsourcing structure, production efficiency and investment efficiency. Second, duopoly manufacturers choose outsourcing may fall into the prisoner’s dilemma, and outsourcing has the risk of quality reduction.

Managerial Compensation, R&D Investment, and Operating Efficiency in Taiwanese Listed Companies: The Moderating Effects of Firm Size and Corporate Risk

Our study explores how managerial compensations are associated with both R&D investment and operating efficiency, which are pillars of competitive advantage for Taiwanese listed companies. Additionally, it investigates how firm size and corporate risk moderate this relationship. Our study’s findings validate these two hypotheses, revealing a positive correlation between managerial compensation and both R&D investment and operating efficiency. Moreover, we observe that firm size enhances this connection, while corporate risk acts as a weakening factor. These results indicate that managerial compensation in Taiwanese companies is crafted with consideration for both immediate financial performance and enduring contributions to company development. The study contributes contemporary evidence on the interplay between factors fostering long-term competitive advantages and the structures of managerial compensation. JEL Codes: G32, M12

Foreign direct investment and ecological efficiency in Pakistan: a new perspective on the pollution haven hypothesis

Foreign direct investment and ecological efficiency in Pakistan: a new perspective on the pollution haven hypothesis

Does the firm's life cycle matter in the relationship between short‐term debt and investment efficiency?

AbstractIn this paper, we investigate the role of short‐term debt in investment efficiency, and we examine the impact of the firm's life cycle stages on this relationship. Using data from non‐financial companies in the United States from 1971 to 2021, we argue that the short‐term debt may reduce the information asymmetries and discipline the management decisions, thus improving the investment efficiency. We argue, however, that the relationship varies throughout different life cycle stages. We find that short‐term debt positively influences investment efficiency and over‐investment. Furthermore, the firm's life cycle significantly impacts investment efficiency, with the introduction and growth stages negatively associated with it. The life cycle also affects the relationship between short‐term debt and investment efficiency, particularly during the growth stage. These results emphasis the role of short‐term debt and the firm's life cycle in mitigating information asymmetries and shaping management behaviour.

ESG investment and bank efficiency: Evidence from China

Although environmental, social, and governance (ESG) investment is essential to achieving sustainable development, previous studies usually focused on the relation between ESG investment and non-financial firms but neglected its impact on bank efficiency. To fill this research gap, we use a stochastic frontier analysis (SFA) model to investigate the influence of ESG investment on banks' profit efficiency and to explore whether financial technology (fintech) can strengthen the relationship between them. Results show that increasing ESG investment is beneficial to bank efficiency. We also find structural differences in the influence of ESG investment on bank efficiency. Specifically, environmental (E) and governance (G) investments enhance bank efficiency, while social (S) variables reduce bank efficiency. In addition, fintech has a moderating effect. When the level of fintech is high, ESG investment rises, and the increase in bank efficiency is more significant. Finally, by conducting a time-varying analysis of bank efficiency, we find that banks with higher ESG investments are more efficient. Under the goal of sustainable development, strengthening ESG investment and focusing on the empowering role of fintech are essential ways for commercial banks to increase efficiency.

The Impact of Financing Constraints on the Efficiency of Investment and Construction: Evidence from Municipal Infrastructure in China

Imperfect external capital market and internal soft budget constraints are important reasons for the issue of enterprise financing constraints. This paper studies the impact of financing constraints and influencing factors of financing constraints in municipal infrastructure investment and construction for local governments by using the panel data from 2003 to 2018 in China. The results show that, first, there are great financing constraints in municipal infrastructure investment and construction for local government in China. Second, the increase of self-financing capacity and external financing capacity can reduce the level and uncertainty of financing constraints, thus improving the efficiency of municipal infrastructure investment and construction. Third, the expansion of the city scale may reduce the uncertainty of financing constraints, but improve the level of financing constraints thus reducing the efficiency of municipal infrastructure investment and construction.

The Effect of Risk Disclosure on Investment Efficiency: An Applied Study

The purpose of the research: This study aims to investigate the effect of corporate risk disclosure (RD) on investment efficiency in the Egyptian environment. Data and materials and methodology: The researcher conducts an applied study using a sample of 376 firm-year observation from Egyptian firms listed on EGX100 after excluding the banking sector and insurance companies due to their special accounting nature in the time period 2017-2022 in order to avoid the negative effects of inflation in the Egyptian market. The researcher uses content analysis to calculate a risk disclosure index (RDI) from annual reports and studies how it impacts the efficiency of investment in companies. Results: The results demonstrated a significant positive effect of RD on investment efficiency, where RD decreases the underinvestment and increases the overinvestment which leads in sum to more investment efficiency. These results are consistent with some of the theories and previous studies that confirmed the role of RD in enhancing investment efficiency. Keywords: Risk disclosure- Investment Efficiency- Overinvestment- Underinvestment.

Pengungkapan Emisi Karbon dan Pengungkapan ESG terhadap Efisiensi Investasi dengan Fleksibilitas Keuangan sebagai Variabel Moderasi

This research refers to the current issue related to investment efficiency carried out by major energy and infrastructure companies, which can certainly be influenced by various factors even though sustainable accounting is applied by the company. With this problem, the author raises several variables to obtain knowledge related to the relationship of the influence given by the Carbon Emission Disclosure and ESG Disclosure variables on Investment Efficiency with the Financial Flexibility moderation variable. The analysis method used in this study is a panel data model with purposive sampling technique. In this study, the data used uses secondary data taken from annual reports and sustainability reports on major energy and infrastructure sector companies listed on the Indonesia Stock Exchange from 2020 to 2022. From the results of the research that has been conducted, it can be concluded that the Carbon Emission Disclosure variable has a positive influence on Investment Efficiency, another positive influence is given by ESG Disclosure on Investment Efficiency, and Financial Flexibility moderates or strengthens the influence of Carbon Emission Disclosure on Investment Efficiency, but Financial Flexibility cannot strengthen the influence of ESG Disclosure on Investment Efficiency.

Compliance management and investment efficiency in state-owned enterprises: Evidence from China

Drawing on the implementation of the compliance management guidelines issued by China’s SASACs, we construct a quasi-natural experiment to examine the impact of the implementation of these guidelines on the investment efficiency of SOEs. The investment efficiency of SOEs is significantly improved after the implementation of the guidelines. The impact is more pronounced on SOEs with significant financing constraints, high financing requirements and intense competition in the product market. We also find that the guidelines improve efficiency investment by reducing management’s risk appetite, mitigating the Type I agency problems and enhancing the level of internal control. The conclusions indicate that compliance management is an important strategy for enhancing the investment efficiency of SOEs.

Institutional attention and investment efficiency

AbstractThis study investigates how institutional investors' attention on the earnings announcement day affects corporate investment decisions. I find that the investment of firms receiving abnormal institutional attention is approximately 1.8 times more sensitive to their stock price than that of others. This effect is more pronounced when institutional investors have greater incentives to produce information and when corporate managers have greater incentives and capability to employ the incremental information contained in the stock price. These findings suggest that attention encourages institutional investors to incorporate private information into stock prices, which provides a useful guide for managers' investment decisions.

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

Towards carbon neutrality: The role of innovation and resources efficiency in China's economic transformation

This study investigates the necessary paradigm shift in redefining productivity. It achieves this by examining the complex interplay between technological innovation, efficiency in natural resource utilization, and the pursuit of green economic recovery as a path towards carbon neutrality. The research employs the Autoregressive Distributed Lag (ARDL) model to analyze the dynamics across these domains, focusing specifically on China for the period 2010–2022. Through comprehensive analysis, the study reveals significant results that illuminate potential pathways for achieving sustainable development. The findings highlight the crucial role of promoting technological innovation and optimizing natural resource use efficiency in driving green economic recovery and mitigating carbon emissions. These results emphasize the importance for policymakers to prioritize investments in innovation, resource efficiency, and green initiatives. This prioritization facilitate the transition towards carbon neutrality and foster long-term environmental sustainability and economic resilience.

Characteristics and comparative analysis of methods for calculating lease payments

In modern conditions of development of commodity production, leasing is one of the most promising and simple ways to upgrade fixed assets. However, in the implementation of leasing operations, both the specific features of a particular production and modern models of leasing relations should be taken into account. The main way to increase the efficiency of investments in leasing is to optimize lease payments, taking into account the specifics of production. The success and quality of these operations largely depend on the use of methodological tools based on the use of relevant accounting and analytical support in the conditions of functioning of modern models of interaction of all participants in operations. Based on this, the authors devote this article to the characteristics and comparative analysis of the main methods for calculating lease payments.

Efficiency of public investment in education in Peru, 2016-2022: A comparative analysis by region

The study analyzes the level of technical efficiency of public investment in Education at the primary and secondary level in Peru, 2016 to 2022. Data envelopment analysis – DEA was used and for the association between the provision of resources and educational quality. the panel data fixed effects model. The results indicate that there are relative differences in efficiency between the regions, registering an average score of 49% for the primary level and 38% for the secondary level, with the most efficient being Moquegua, Tacna, Arequipa and Ica, and the least efficient being Loreto, Huánuco, Ucayali, and San Martín. From the input-output association, classroom size, infrastructure in good condition and public investment have a direct relationship, while students per teacher and per computer, the relationship is inverse with respect to educational achievement in communication and mathematics at the primary and secondary level. This suggests that inefficient regions should increase educational attainment at the primary and secondary levels by an average of 51% and 62%, respectively, while maintaining the same level of spending. Therefore, to improve their efficiency within the framework of public policies, they can adopt the management implemented by regions such as Moquegua and Tacna.

Assessment in the efficiency of investments in human capital in the conditions of digital transformation of the economy

The article considers the concept of “investment in human capital”, presents a theoretical and instrumental interpretation of the main components of human capital. The current assessment methods and indicators that characterize the effectiveness of investments in human capital are summarized. Also, a comprehensive and critical analysis of the current methodological aspects for assessing the effectiveness of investments in human capital was made. Education is considered as a property in the form of professional features and self-growing value on the basis of increasing labour productivity of an employee, which is correspondingly distinguished by the growth of wages. Creation of the methodology for assessing the economic efficiency of investments in education at the macroeconomic level is based on the comparison of public investments in education and average wages in the country. The average wage is considered as a productive indicator of the effectiveness of investments in education. The money that is spent on the education of the younger generation, in the foreseeable future will establish the degree of education of the population of the state and, in turn, its competitive advantage in the global community. The proposed model for assessing the effectiveness of investment in education is simple and convenient, it is able to link the efficiency of the firm's activities and the cost of human capital. The article shows the results of the assessment of investment efficiency of the implementation of the State Programme of Education and Science Development of RK for 2020–2025. The analysis of statistical data for Kazakhstan also shows the existence of a close relationship between the remuneration of employees and the volume of investment in education. The article has both theoretical and practical relevance, as it is related to the State Programme “Digital Kazakhstan” with the direction “Human Capital Development” and the topic is in relevant.

Financial reporting quality and investment efficiency in manufacturing firms: The role of firm characteristics in an emerging market

Financial reporting quality and investment efficiency in manufacturing firms: The role of firm characteristics in an emerging market

SENIOR MANAGERS’ PERCEPTIONS OF ENERGY EFFICIENCY INVESTMENT: EVIDENCE FROM MALAYSIAN SMEs

Energy efficiency is undeniably an important contributor to energy sustainability. It mirrors the ‘low hanging fruit’ in which energy efficiency is one of the easiest ways to reduce energy demand. Small and medium-sized enterprises (SMEs) can make a major positive contribution to energy sustainability and community well-being, given the extent of their involvement in the economy. This research attempts to explore SMEs’ perceptions towards energy efficiency investment. Specifically, this research examines the effects of senior managers’ perceived benefits, perceived costs and personal norms on their support for energy efficiency investment. A survey was conducted to collect data and empirically test the research model. The estimated results suggest senior managers’ perceived benefits and costs significantly affect their support for energy efficiency investment. In addition, the results show that personal norms are an important mediator variable in influencing energy efficiency investment by SMEs. Several notable implications can be drawn from this research. The findings demonstrate the undeniable significant effects of perceived benefits and costs on firm investment decision-making and do not neglect the importance of personal norms.