Lack Of Diversification Research Articles

Labour Markets in Libya: Opportunities and Risks

The Libyan economy faces significant challenges due to its lack of diversification, with the public sector dominating the labour market. This dominance has led to high unemployment rates, job instability, skills shortages, and widespread informal employment. This research critically examines the current state of the Libyan labour market, identifying both opportunities and risks, and provides a comprehensive overview of Libya’s workforce. The analysis reveals that 67% of the Libyan population is under the age of 35, representing a substantial and expanding workforce. Libya’s strategic location in North Africa provides access to European and African markets, potentially fostering economic growth and job creation. However, a misalignment between workforce skills and private sector requirements impedes sustainable development. Additional challenges include a weak private sector, economic identity issues, and political instability. Reducing reliance on oil and gas, combating corruption, and enhancing the education system are essential for achieving economic resilience and social stability. The findings indicate that labour market programs and institutions have had minimal impact on outcomes, with notable disparities between capital owners and income earners. Women face significant barriers to economic empowerment, despite the presence of inclusive sectors such as hospitality and financial services. Barriers to inclusivity and productivity, including gender disparities, skills mismatches, education gaps, and issues within the informal labour market, persist. Policy interventions are crucial to capitalize on these opportunities and mitigate associated risks through comprehensive labour market strategies.

Portfolio resampling in the Brazilian stock market

Markowitz optimization plays a crucial role in modern portfolio theory. However, it is well known that Markowitz optimization is highly affected by estimation errors in the mean vector and covariance matrix, resulting in extreme and/or unrealistic portfolio weights, lack of diversification, and poor out-of-sample performance. In response to these challenges, Michaud and Michaud (1998) proposed a heuristic portfolio resampling approach aimed to deliver more diversified and better out-of-sample portfolio performance. This approach has received both criticism and praise among academics and practitioners, with the main critique being the unclear economic benefits of applying this method to empirical data. To contribute to this ongoing debate, our study assess the performance of the Michaud and Michaud (1998) portfolio resampling approach using data from the Brazilian stock market. Additionally, we evaluate whether a resampling approach based on factor structure can yield superior out-of-sample performance. Our findings indicate no evidence of superiority over Markowitz optimization, reinforcing criticisms of the portfolio resampling approach.

Energy Protectionism: Tren Meningkatnya Kebijakan Proteksionisme Energi di Uni Eropa

This research discusses the impact of EU energy protectionism in the face of global challenges such as the Covid-19 pandemic and the energy crisis due to the Russia-Ukraine conflict. Those two major events reveal the risks of over-dependence on foreign suppliers and the lack of diversification in the EU supply chain. As a solution, the EU has implemented various policies, including RePowerE, Carbon Border Adjustment Mechanism (CBAM), and Green Deal Industrial Plan (GDIP), to reduce dependence on energy imports and increase domestic renewable energy production. Through the analysis of neoliberalism and Game Theory approaches, particularly the Prisoner's Dilemma concept, this article explores the implications of protectionist policies on international trade stability. The analysis shows that while protectionist policies can strengthen the EU's energy independence and domestic security, they also have the potential to trigger international trade tensions and protectionist retaliation from other countries.

Culture and Tourism Integration Development Status, Problems and Policy Recommendations in Guangxi

From an industrial integration perspective, this paper provides a comprehensive analysis of the integration between culture and tourism in Guangxi. It concludes that the integration has already taken shape in Guangxi, resulting in the creation of a national industrial integration brand and the emergence of new forms of industrial integration. However, during the deep integration process, several challenges need to be addressed in order to promote the development of culture and tourism. There is a lack of innovative capacity in cultural and tourism integration. This hinders the creation of unique and novel experiences for tourists, limiting the potential for growth and expansion in the industry. The high degree of homogenization poses a significant challenge. The lack of diversification and differentiation among cultural and tourism offerings leads to a monotonous experience for visitors, ultimately affecting their satisfaction and willingness to return.The scale and structure of cultural and tourism integration are currently unreasonable. The imbalance in resource allocation and development across different regions within Guangxi impedes the overall progress of the industry. A more equitable and balanced approach is needed to ensure sustainable growth and maximize the potential of each area. Addressing these three types of problems is crucial to the promotion of the culture and tourism integration industry. By fostering innovation, encouraging diversification, and optimizing resource allocation, Guangxi can further enhance its position as a leading destination for cultural and tourism experiences.

Selected Problems of the Automotive Industry—Material and Economic Risk

This article is a synthetic, brief review of the literature, reports and references on the transformation of the automotive industry into zero-emission cars, in particular electric cars. It analyzes the technological and economic aspects of changes in the automotive industry regarding the transformation to zero-emission cars. Despite great de-emission parameters, the production of electric cars does not have a zero carbon footprint. The acquisition of critical elements, their production and the production of other components and materials needed for their construction have an environmental impact. The supply chains of materials for the construction of batteries for electric cars are characterized by significant risks related to, among others, a lack of diversification and limited flexibility. The dominant supplier of rare elements for batteries is China. The article analyzes the impact of prices on the demand for electric cars and compares them to internal combustion cars. Research shows that most electric cars are sold in China, the USA and Europe (about 95% of the supply). The costs of cars are of great importance, which, given the current reduction in the purchasing power of consumers, make the forecasts of the dynamic growth of electromobility very cautious, and even stagnation in the purchase of electric cars is expected in the second half of 2023.

The Impact of Derivatives Use on Systemic Risk of Africa’s Banking System

ABSTRACT This paper contributes to the debate about Africa’s financial stability by focusing on the prevalence of systemic risk in 40 listed derivatives user-banks over 2011–2017, employing the systemic risk index (SRI), and subsequently exploring how it links to the continent’s financial market development. The systemic risk buildup within the industry is mainly depicted as an unstable, diluted, and possibly depleting process. Gloomy predictions persist in the subsequent attempts to uncover plausible causes of systemic risk formation. Mainly, conventional defining factors for risk exhibit irrelevance toward systemic risk development, as threats to financial stability remain confined within the industry, supported by a lack of diversification in financial services. The investigated markets may be individually subject to internal vulnerabilities that could be exacerbated by financial shocks, feedback effects, and the likelihood of contagion and failure among financial institutions.

Impacts of the COVID-19 pandemic on export commodity trading

This study examines the impact of COVID-19 on the export commodity sector in North Kalimantan province, Indonesia. The sector’s heavy reliance on hydrocarbon, seafood, and agricultural products, and lack of diversification in the commodity market pose significant risks to its long-term sustainability and growth. Studies critically analysing the trading of this commodity and the pandemic’s impacts on this sector remain lacking. Using a content analysis approach on data and information sourced from government reports and statistics, this qualitative-based study provides insight into the impacts of the COVID-19 pandemic and its resultant government intervention measures on North Kalimantan’s export commodities. Findings show that export commodities handled by the province’s ports decreased by 7 percent from 2019 to 2020, but in 2021, export values almost doubled compared to pre-COVID levels. The province’s economic growth has been heavily dependent on hydrocarbon, seafood, and agricultural products before and during the pandemic. To create a more business-friendly environment and reverse the downward trend of export commodities, the study suggests diversifying the commodity market, enhancing human resource capacity, and forging stronger private-public partnerships. The study provides insight into the effects of the pandemic on North Kalimantan’s export commodity sector, highlighting the need for long-term sustainability strategies.

Heterogenous impact of monetary policy on the Philippine rural banking system

This paper shows the differential impact of monetary policy on the lending behavior of rural banks, with the bank lending channel being operational in small rural banks. While big rural banks are able to protect their lending portfolio from contractionary monetary policy by the size of their balance sheet, small rural banks with less diversified funding portfolio cannot. Moreover, highly capitalized rural banks are more inclined to protect their capital than expand their lending portfolio, following monetary tightening and higher capital requirement. The insignificance of gross domestic product (GDP) growth may reflect weakness in effective loan demand and lack of diversification that could have also impinged on the earning capacity of rural banks, as supported by initial estimates on the drivers of rural bank profitability. The finding on heterogeneous effects of monetary policy on rural banks has a secondary implication of lending credence to the principle of proportionality embodied in the BSP’s bank regulatory framework.

Sustainable Nutrition for Increased Food Security Related to Romanian Consumers' Behavior.

Food security is a matter of global concern, as the supply of food is one of the basic needs, ensuring the survival of the species. The trend of globalization and development of the global economy has shifted the responsible, local consumption patterns towards an increased homogeneity of diets, with food products being disconnected from their source, leading to two major results: (1) increased global consumption and (2) increased uncertainty in the supply chain. To determine what is the nutritional model of Romanians, we developed a questionnaire of 32 questions and distributed it using simple random sampling method. The questionnaire was issued both in physical and digital form and received 1053 responses. The survey was conducted during 2021 and 2022, both in urban and rural areas with the aim of investigating the consumption pattern of the population. The analysis of the questionnaire data reveals overconsumption of animal products, starchy vegetables and bread and pastry products. This nutritional pattern with a high intake in animal protein, correlated with a lack of diversification, is extremely unsustainable, having a negative impact on human health and environmental health.

Governing contingencies by proxy: a governmentality approach on social supports in Istanbul under mutual uncertainty

ABSTRACT Contingencies comprise immediate possibilities and aleatory interactions in the form of calculated responses to mutual uncertainties. While contingencies are critically important to governmental policies, yet they have been rarely considered in social analysis. The aim of this study is to analyze how the Covid-19 pandemic as a crisis has been governed both against and through contingencies by investigating the social support measures initiated by the Turkish government and the Istanbul Metropolitan Municipality (IMM). We gathered empirical data qualitatively from 12 in-depth interviews with the officers of local government and NGOs, supplemented by official documents. We found that contingencies are produced and become residual through configurational interdependencies, such as competition between the central and local government, unemployment, inadequate support, standardization, path dependency, and lack of diversification in need assessment. This study revealed that governmental practices are governed through contingent possibilities and interactions under mutual uncertainty and the politics of crisis management and conflict between local and central authority changed social support mechanisms.

A study of Silicon Valley firms' accounting losses

PurposeSmall firms, which represent much of the Silicon Valley region, tend to experience losses due to their small scale, small customer base and lack of diversification. The authors study the impact of accounting conservatism and losses on firm value and as such this study is an appropriate addition to this growing field of financial management.Design/methodology/approachThe authors use methodology developed in prior literature to examine Silicon Valley and non-Silicon Valley firms' and their behavior when facing losses and the factors, which might play a role in their valuation. The authors focus particularly on earnings and accounting conservatism. Accounting conservatism captures how fast firms record losses relative to gains. The faster losses are recognized than gains the more accounting conservatism is exhibited. The authors examine the seemingly unrelated estimation of differences in means for our independent variables of interest across the two samples of Silicon Valley and non-Silicon Valley firms, both earnings and accounting conservatism. The authors use matched sample analysis of these firms based on four digit SIC code, size and date. In robustness, the authors run a more in-depth propensity score matched sample analysis.FindingsThe authors document that market values of Silicon Valley firms with accounting losses are affected less by negative earnings than other firms with accounting losses in the United States outside of the Silicon Valley region, noting the “lose big, win bigger” sentiment of Silicon Valley. Additionally, the authors document that accounting conservatism does play a role in influencing valuations of companies with accounting losses both in Silicon Valley and the rest of the United States, marginally more for Silicon Valley firms.Originality/valueThis study would be of interest to fund managers who need to consider smaller firms for inclusion in their portfolios. A lot of small firms have experienced losses ever since going public, especially Silicon Valley start-up firms.

Natural resources, (Mis)governance, and the lack of diversification in mining regions: A reconsideration of the Dutch disease at a local level

This paper aims to refine the understanding of the resource movement effect of the Dutch disease at a local level by (1) broadening the focus to include access to natural resources and (2) considering the local role of institutions as a channel for this effect. We propose an expanded theoretical approach to evolutionary economic geography on interpath dynamics, considering the role of local institutions in access to scarce assets by integrating the conceptualization of governance structures provided by transaction cost economics. This proposed framework is applied to a case study of Calama, located within the hyper-arid Atacama Desert in the Antofagasta region of northern Chile. The case demonstrates how local inequities in access to freshwater increased permanently due to the Chilean 1981 Water Code in correlation with a temporal copper price super cycle. The results reveal how the mining sector and indigenous associations concentrated access to water rights originally inscribed in irrigation canals by small farmers through a market governance structure, constraining economic diversification through negative interpath dynamics. This research denotes the importance of considering institutional bottom-up approaches to overcome resource dependency.

Simulation-Based Business Valuation: Methodical Implementation in the Valuation Practice

The simulation-based company valuation values a company on the basis of the risks actually present in the company without having to derive them from the capital market data. The simulation-based company valuation takes into account the market imperfections, such as the probability of insolvency or the lack of diversification, and fulfils the legal requirements and auditing standards for a company valuation. The simulation-based company valuation is an alternative to the CAPM-based company valuation, which, under the assumption of perfect capital markets, derives the risks through capital market comparisons. A simulation-based business valuation has many advantages and is particularly suitable for valuing medium-sized companies, start-ups, companies in a crisis, and for integrating country-specific risks into business valuations. Due to the internationally widespread use of the CAPM, a simulation-based company valuation is still rarely used in practice. This article shows which valuation formulas are necessary for the application of a simulation-based company valuation. These are used for both the certainty equivalent method and for the risk premium method. In a concrete and valuation example, the simulation-based business planning and company valuation is carried out, and the derived valuation formulas are applied in a way that allows a transfer to concrete valuation cases in practice. It is shown that the certainty equivalent method and the risk premium method lead to identical company values.

ДИВЕРСИФІКАЦІЯ ВИРОБНИЧОЇ ДІЯЛЬНОСТІ АГРАРНИХ ПІДПРИЄМСТВ РОСЛИННИЦЬКОГО НАПРЯМУ В УКРАЇНІ

In this article, the authors determine the productivity factors of crop production and outline the range of problems associated with the lack of diversification. The importance of national agricultural production for the economy of Ukraine as a whole is emphasized. It is indicated that the intensification of production and cultivation of mainly highly profitable crops led to the narrowing of crop rotations. According to the results of the research, it was established that the existing business model in crop production is based on the scenario of a consistently high yield of agricultural crops. Taking into account dependence on weather factors, the a priori uncertainty of the results of agricultural production worsens due to climate change. It is substantiated that risk reduction in crop production can be achieved by diversification of production. The conceptual basis for the diversification of production activities in crop production is determined, which consists in the redistribution of available resources for the product supply in accordance with the requirements of market demand, and taking into account the influence of institutional mechanisms to achieve a higher level of sustainability. The business entity's incentives for diversification are divided into internal, which consist in the possibility of obtaining economic benefits, and external, caused by the action of institutional mechanisms. Opportunities for each type of product should be evaluated based on the parameters of income from production and the risk of loss of profit. Appropriate efforts are recommended to be directed to more complete use of working capital and creation of added value based on the implementation of innovations. Based on the calculated average indicators of crop production, an analysis of fluctuations in the level of land yield during 2016–2020 was carried out. The dynamics of the degree of management risk as a deviation of the level of profitability of the production of agricultural crops compared to the level of operational profitability of agricultural enterprises were studied. It is substantiated that production diversification is a powerful tool for effectively smoothing out price fluctuations when achieving the forecasted harvest volume and compensating for production losses. It was emphasized that the decision to grow additional agricultural crops should be evaluated in terms of production capability and economic feasibility.

Key investors and their strategies in the expansion of European student housing investment

ABSTRACT The aim of this paper is to understand the expansion process of investment into Purpose Built Student Accommodation (PBSA) in Europe by examining transformations in student housing investment landscapes and uncovering the profiles and strategies of key investors between 2010 and 2020. Using data from Real Capital Analytics, trends in capital structures and profiles of PBSA investors are identified. Investors driving these trends are scrutinised in terms of their investment timelines, locations, hold periods and strategies of portfolio diversification. Furthermore, in-depth interviews with property analysts, PBSA investors, and developers substantiate the quantitative analysis. The empirical results show that Private Equity entered the European PBSA market, starting with the UK, when the yield premium post-GFC justified the perceived risk. Equity funds typically hold their portfolios for around five years and trade counter-cyclically with institutions such as pension funds. PBSA specialists, mainly REITs, have accumulated substantial portfolios, and the REIT structure is well-suited to the steady income which student rents should provide, but their lack of diversification leaves them vulnerable to changes in student demographics and accommodation requirements.

Funding Sustainable Online News: Sources of Revenue in Digital-Native and Traditional Media in Spain

Digital news publishers strive to balance revenue streams in their business models: as standard advertising declines, alternatives for sustaining digital journalism arise in the forms of sponsored content, user donations and payments—one-off purchases, subscriptions or memberships, public or private grants, electronic commerce, events and consulting. An exhaustive study found 2874 active online news publications in Spain, and it observed the adoption of such models in early 2021. Advertising remains the most popular source of income for digital news operations (85.8%) and most sites rely on just one or two revenue streams (74.5%). We compare the cases in our census by their origin (digital-native or non-native), geography (local/regional or national/global) and topic scope (generalist or specialized). We find that traditional, national and specialized online media have a broader and more innovative revenue mix than digital-native, regional or local and general-interest news outlets. The comprehensiveness of this pioneering study sheds light for the first time on the risk that the lack of diversification and innovation in funding sources may imperil the financial sustainability of some online news operations in Spain, mostly those with a smaller scope and no backing from a traditional business, according to the results we present here.

Striving for a new normal after the Covid-19 pandemic: taking small businesses at Bangsaen Beach as an example

ABSTRACT The Covid-19 pandemic interrupted Bangsaen Beach activities and disturbed livelihoods of small business operators. Before the pandemic, Bangsaen tourism experienced issues of beach quality degradation due to overcrowding, competitive vending, and lack of diversification. After the pandemic, the municipality imposed new regulations, reset zones to safeguard the public health, and jump-started the economy. The changing regulations created conflicts with vendors on zoning rearrangements and reduced sales. The author conducted a survey to investigate the beach activities, the local small business operations, and the local authority’s regulation changes. The survey results indicated that Bangsaen needs alternative attractions to complement its beach activities and to help cope with traffic congestion. The results also find out the social disparity in the demography of the vendors, which calls for attention to gender aspects and inclusive facets in the social infrastructure development strategy. This study suggests that vendors collaborate collectively with the local government to challenge the appropriation of beach spaces and to create innovative tactics. In addition, destination management organizations need to strive for better collaboration with small business operators to help them adapt to the change and enter the formal economy.

Rainbow trout (Oncorhynchus mykiss): Potential food products derived from the main aquaculture resource in high Andean regions

Trout was introduced in our country in 1928 and managed to adapt to the freshwater ecosystems of the Peruvian highlands. It currently represents the economic livelihood of many micro and small-scale fish farmers, together with medium and large companies in regions such as Puno, Pasco, Huancavelica and Junín, whose growth in recent years has been considerable. The 71.98% of this resource was destined for consumption in its fresh state and only 28.02% was processed as frozen, which shows the lack of diversification of value-added products in the production chain of this sweet aquaculture species, together with a shortage of research. Therefore, the purpose of this research was to compile the latest studies, carried out in different countries, related to the processing of this species because it is an excellent raw material due to its nutritional value and techno-functional characteristics. The research work collected covered the use of traditional methods and technologies such as marinating, salting, drying, and smoking, as well as innovative restructuring processes applied to trout minced muscle and filleting by-products. These investigations found that the different food products were differentiated by their physical and sensory attributes, techno-functional properties, shelf life and/or preparation. With this review, we hope to contribute to the triple helix model focused on this resource, from and for the Andes, to promote its sustained production, productive chain, and food security for the inhabitants of the Andean regions.

The athlete talent development environment in the best ranked football academy in Norwegian football: The case of the U16 team in Stabæk football club

We used the holistic ecological approach to examine the talent development of Stabæk football club. Specifically, the male under-16 team. The environment was categorised as successful based on their history of developing senior elite players and being the highest ranked football academy in Norway. The study design was an explorative, integrative, and qualitative study considering an extreme case. Data collection included interviews, observations, and document analysis. The results showed that the environment shared features with other successful environments and deviated on other features. Our findings were consistent with research highlighting the importance of long-term development focus, supportive training groups, and support from the wider environment. However, we also found that the contrary to former research, success was not underpinned by a coherent organisational culture. Instead, there were several examples of ambiguity (e.g., between espoused values and actual behaviours). There was also a lack of integration of efforts, no support for developing psychosocial skills, lack of diversification, and a lack of proximal role models. Instead the club practiced early recruitment and specialisation, employed failure-focused coaching, and kept youth players away from role models. Our findings show that the club environment could be described as a successful, and yet, success does not necessarily equal all previously suggested successful features.

Bond portfolio management under Solvency II regulation

We develop a novel approach to the bond portfolio optimization for insurance companies that are subject to the new Solvency II regulation. The regulatory efficient portfolios are determined using the Non-dominated Sorting Genetic Algorithm II (NSGA-II). The characteristics of the estimated efficient portfolios are examined in different market regimes. Our findings suggest low cardinality of all estimated efficient portfolios despite explicit regulatory penalties for highly concentrated portfolios. The efficient portfolios are dominated by short term and BBB rated bonds. The lack of diversification and over-exposure to bonds with higher credit risk in different market regimes represents a weakness of the Solvency II regulation with unintended consequences for management of insurance companies.