Liability Costs Research Articles

The Effect of GCG, CSR Disclosure, and Investment Decisions on Firm Value

Investors' opinion of a company's competence in resource management is known as firm value. Demand and supply factors in the stock market determine the firm's value, reflected in its stock price. According to investor opinions, a company's high worth is represented in both its present success and its prospects for the future. In general, a number of elements, including the stock market price, net income per share, the cost of capital, and assets and liabilities, define a company's worth. This research proposes examining the impact of managerial ownership, audit committee size, corporate social responsibility disclosure, and investment decisions on firm value. This is a quantitative descriptive study made applying purposive sampling. A total of 171 observations of property and real estate firms listed on IDX during three observation periods of 2020-2022. The data was analyzed using multiple linear regression. The study found that managerial ownership contributes positively to firm value, whereas investment decisions, corporate social responsibility disclosure, and audit committee size does not influence on firm value. This study emphasizes the importance of management ownership in efforts to raise a company's value by giving empirical data to support the application of the theory of agency and the theory of signaling in this research. It will also be expected to serve as input for the companies under review.

Investigating the complexity of naloxone distribution: Which policies matter for pharmacies and potential recipients

Despite efforts to expand naloxone access, opioid-related overdoses remain a significant contributor to mortality. We study state efforts to expand naloxone distribution through pharmacies by reducing the non-monetary costs to prescribers, dispensers, and/or potential recipients of naloxone. We find that laws that only address liability costs have small and insignificant effects on the volume of naloxone dispensed through pharmacies. In contrast, we estimate large effects of laws removing the need for patients to obtain prescriptions from traditional prescribers (e.g., primary care physicians): laws authorizing non-patient-specific prescription distribution and laws granting pharmacists prescriptive authority. We test whether areas designated as primary care shortage areas—where it would be costlier to obtain a prescription—were disproportionately impacted. Shortage areas experienced sharper growth in pharmacy naloxone dispensing in states adopting prescriptive authority policies. These gains were primarily due to those facing low out-of-pocket costs, suggesting that price barriers also must be addressed to increase naloxone purchases.

Does "Low Cost" Urban Sanitation Exist? Lessons from a Global Data Set.

In this paper, we report results from, and demonstrate the value of, a global database for the collection and aggregation of reliable and comparable cost data for urban sanitation systems as they are built and operated on the ground (rather than the "as planned" costs that are often reported). We show that no particular "mode" of urban sanitation (for example "sewered sanitation" or "fecal sludge management") can be meaningfully described as "low cost" when compared to other modes. We show that economies of scale may operate for systems that transport waste from pits and sealed tanks by road as well as for sewerage. We use a case study example to show the value of being able to compare local costs to global benchmarks and identify that operational considerations such as low connection rates may be more significant in determining overall cost liabilities for urban sanitation than technical considerations such as population density, size, and degree of centralization/decentralization.

A critique of the national asset reconstruction company, India’s bad bank

PurposeThis study aims to provide a critique of the institutional framework of the National Asset Reconstruction Company Limited (NARCL), India’s “bad bank.”Design/methodology/approachThe approach followed is the development of an economic model of the gains to trade of an Asset Reconstruction Company.FindingsUsing an economic model, the paper shows that the rules of the game create an uneven playing field and are likely to lead to a systematic overpricing of nonperforming loans (NPLs). While this might increase the upfront cash received by the bank, it will come at the cost of higher liabilities for the government on account of the sovereign guarantee that is part of the proposed structure. The overpricing is also likely to act as an obstacle to efforts aimed at the revival of the distressed company. The NARCL could become a warehouse for NPLs subverting the objective of reconstruction.Practical implicationsSolutions to create a vibrant market for NPLs are proposed.Originality/valueThe Indian case is unique in the sense that a bad bank backed by the government has been introduced after almost two decades of the existence of similar entities in the private sector. To the best of the author’s knowledge, this paper is the first that addresses the design of such a market using economic modeling.

The effects of employers’ disability and unemployment insurance costs on benefit inflows

In Finland, large firms are partially liable for the costs of disability and unemployment benefits paid to their former workers. To estimate the effects of such cost liabilities, we exploit a reform that extended this cost-sharing to cover a new group of blue-collar workers. We show that experience rating in disability insurance reduces inflows to sickness and disability benefits and increases participation in vocational rehabilitation programs, whereas employers’ unemployment insurance costs reduce excess layoffs of older workers who can qualify for extended unemployment benefits until retirement age. We find no evidence of spillover effects: employers’ cost liabilities in one benefit type do not affect inflows to other types of the benefits.

Quality and price competition in a duopoly under product liability and traceability

This study aims to explore how traceability affects quality and price competition in a duopoly. A theoretical model is developed in which both enterprises are liable to recall low-quality (defective) products identified by traceability and compensate consumers for the disutility caused by unidentified low-quality products. The equilibrium results are derived by determining the optimal product quality and sales price decisions. The key findings are highlighted below. (1) Traceability affects product quality primarily through the expected social cost (the sum of expected recall cost and expected consumer disutility), i.e., higher (lower) expected social cost induced by increased traceability of each enterprise leads to higher (lower) product quality for both enterprises, enhancing (reducing) quality competition. (2) If an enterprise’s improved (decreased) product quality is driven by its own increased traceability, it will result in lower (higher) consumer demand and profit, while it will result in higher (lower) consumer demand and profit if caused by its competitor’s increased traceability. (3) If an enterprise’s increased traceability results in higher expected social cost, the enterprise’s sales price falls while the competitor’s sales price rises; otherwise, both enterprises’ sales prices fall, leading to greater price competition. (4) Quality competition is unaffected by product liability but is improved by increased recall cost and consumer disutility, whereas price competition is intensified by increased consumer disutility but is reduced by increased product liability and recall cost. Managerial insights are also discussed.

Sustainable Compensation Strategies for Ship Owners Liability for Occupational Injury and Death Costs Affecting Seafarers in Nigeria

Sustainable Compensation Strategies for Ship Owners Liability for Occupational Injury and Death Costs Affecting Seafarers in Nigeria

DEFENSIVE MEDICINE AND MEDICAL MALPRACTICES IN INDIA: AN ECONOMIC ANALYSIS

Medical science claims to have developed several ways of controlling health risks, increasing safety standards and protocols related to medical practices and procedures but it cannot claim that it has eliminated all other kinds of risks associated with it. The recent spurt in the litigation against medical professionals for medical negligence and the claim for redressal or compensation has shaken the confidentiality and patient-doctor relationship to a new high level. The increasing cost of medical malpractice litigation has increased the practice of defensive medicine. It is a medical practice that can be said as an act of economic security against potential allegations of negligence. The present study on economic analysis of medical malpractices and practice of defensive medicine focuses on a pre-existing market relationship between medical negligence and the resultant defensive practices adversely affecting many aspects of human life. The present research is divided into five sections. The first section deals with the nature of the existing market and the economic analysis of the relationship between medical negligence liability and its potential impact on the practice of defensive medicine. The aforesaid market relationship is much more pronounced in the western countries. It is based on the understanding of cost of litigation, the expectation of liability in excess to actual damages and the benefits accruing out of practicing defensive medicine in response to the above situation. However, in the context of India the relationship is not that simple. Particularly, when medical malpractice litigations are not very common practice by the victims and the so-called existing healthcare industry is already running at kickbacks for referring patients, inflating bills and thereby promoting defensive medical practices. In order to promote efficient transactions, exchanges and economic efficiency in the above market, role of legal means cannot be denied. The second part of the study examines the role of the insurance industry in dealing with medical claims. In an inefficient insurance market, insured medical claims remain low and out-of-pocket medical expenditure remains very high. This unethical socio-economic malpractice is economically inefficient and thereby inducing loss of socio-economic welfare of the people. The third section delves upon the unintended socio-economic impacts of the medical malpractices and defensive practice. Particularly in a welfare state like India, it neither results in an activity reinforcing excellence in the medical profession nor helps in achieving the constitutional mandate of ‘Right to Health’. An individual’s sense of wellbeing is incomplete in the absence of his physical as well as mental wellbeing and both of them are responsible for country’s economic and social development. The fourth part examines the relationship of law with defensive medicine. The role of law in regulating the market and thereby reducing healthcare costs is very important. Although it is very difficult to have correct estimates of medical liability costs and various components of it, the growing concerns related to increasing practice of defensive medicine has to be adequately addressed by law. The fifth and the last section discusses the conclusions and recommendations. Today, when the entire world is going through a phase of health crisis, the concerted effort of citizens and government becomes indispensable. In a country like India accessibility and affordability of medical facilities and insurance has to be ensured. With the continuous increase in health care costs the very objective of fair distribution of available healthcare facilities has become a difficult and unachievable task. In order to deal with the above complex and perplexing problem we need greater involvement of economics, law and suitable public policies. India’s fragmented health infrastructure may result in economic inefficiency, reduction in social and economic welfare, wastage of scarce medical resources and high-cost treatment.

Pension Fund Calculation Using Traditional and Projected Unit Credit Methods for Total Actuarial Liability and Normal Cost Cases

The DSH Meat Kiosk is a kiosk that sells one of the foodstuffs, namely Beef. This DSH Meat Kiosk has been around for more than 20 years. However, as long as this kiosk is established, the manager still finds it difficult to analyze the profit from the sale. Therefore, this Profit and Loss Financial Statement is intended to assist traders in managing the profits generated. In this report a financial analysis is made in November 2021 and February 2022. The method used in making this report is to use primary data by collecting data in the form of interviews with kiosk owners relating to things needed in making profit and loss statements such as assets that owned, total revenue, operating costs and others. The results of this report show that sales in February 2022 decreased by 17.88% compared to November 2021. With this report, it is hoped that this report will help and make it easier to manage the profits generated and make decisions to generate the best profits.The discussion of the selected questions will look for what actuarial obligations are and what normal costs are based on the data provided. The purpose of this discussion is to know, understand, and be able to perform actuarial calculations regarding the unit credit method used. The unit credit method used is the traditional unit credit and the projected unit credit. The formula used for each question is as follows. andThe result of solving the first problem shows that the total actuarial liability on 1/1/95 is IDR 405,339.095. While the results of the second question show that the normal cost for 2021 on 1/1/2021 was IDR 1,071.43. From these results, users can find out how much actuarial obligations are and what normal costs are based on the data that has been provided.

Does Public Health Insurance Expansion Influence Medical Liability Insurance Prices? The Case of the ACA’s Optional Medicaid Expansion

Medical liability insurance covers physicians’ liability, and its price could affect physicians’ practice. In this article, we use a unique county-level dataset to study how medical liability insurance prices of three specialties, internal medicine, general surgery, and obstetrics–gynecology (OB-GYN), changed after the Affordable Care Act (ACA) elective Medicaid expansion provision. The Medicaid expansion has largely increased the demand for health care services and potentially exposed physicians to higher medical liability risks. With higher expected losses, insurers could react by increasing medical malpractice insurance prices. We first study all counties in states that elected to expand Medicaid and compare them to counties in nonexpansion states. Then we narrow our analysis to consider differential effects in bordering counties with different Medicaid expansion statuses over the period 2010–2018. In both samples, we find significantly higher medical liability insurance prices 2 years after the expansion (on average) in expansion states in comparison to nonexpansion states, and the difference is larger for physicians practicing internal medicine (6–8% at 2 years after expansion) and general surgery (12–16% at 2 years after expansion) but less so for OB-GYN. Our OB-GYN results are likely because significant numbers of births were already covered under Medicaid and were not affected by the expansion. Our finding suggests that the expansion of health insurance increases liability costs to medical practitioners.

Legal assessment of BIMCO’s infectious or contagious diseases (IOCD) clauses for voyage and time charter parties

The impact of the Covid-19 pandemic on the shipping industry is still severe, ranging from vessels being denied entrance to ports to crews on board ships being trapped for many months. To counter and regulate those emerging issues, the shipping industry presently incorporated into the charter parties the BIMCO’s Disease Clause originated from the 2015 Ebola outbreak, the so-called BIMCO’s Infectious or Contagious Diseases (IOCD) Clauses. While proved successful during the Ebola outbreak, those Clauses were inadequate to regulate a global pandemic such as Covid-19 effectively. Specifically, the IOCD Clauses, while they successfully establish the concepts of ‘Disease’ and ‘Affected Area’, fail with the allocation of liability, especially when the crew on board is affected by Covid-19 and the ship needs to deviate from course to change the crew. In that instance, the shipowner, provided that he exercised due diligence in proactively avoiding the infection of his crew, is excluded from liability. In contrast, it is deemed that the liability between shipowner and charterer should be at least shared. For voyage charter parties BIMCO’s Infectious or Contagious Diseases Clause 2015, applied both to the Ebola and the Covid-19 outbreak, allocates the right of termination and the liability for deviations and excessive costs strictly to charterers. In contrast, for the time charter parties, BIMCO has imposed the ‘BIMCO Infectious or Contagious Diseases Clause for Time Charter Parties 2022′ amended presently. According to those regulations, the liability can and should be shared between charterers and ship owners. As a result, the shipowner is forced to exercise due diligence more effectively, especially when he is initially liable for the excessive costs.

Estimating the causal effect of liability to disease on healthcare costs using Mendelian Randomization

Accurate measurement of the effects of disease status on healthcare costs is important in the pragmatic evaluation of interventions but is complicated by endogeneity bias. Mendelian Randomization, the use of random perturbations in germline genetic variation as instrumental variables, can avoid these limitations. We used a novel Mendelian Randomization analysis to model the causal impact on inpatient hospital costs of liability to six prevalent diseases and health conditions: asthma, eczema, migraine, coronary heart disease, Type 2 diabetes, and depression. We identified genetic variants from replicated genome-wide associations studies and estimated their association with inpatient hospital costs on over 300,000 individuals. There was concordance of findings across varieties of sensitivity analyses, including stratification by sex and methods robust to violations of the exclusion restriction. Results overall were imprecise and we could not rule out large effects of liability to disease on healthcare costs. In particular, genetic liability to coronary heart disease had substantial impacts on costs.

Towards a 100% hydrogen domestic gas network: Regulatory and commercial barriers to the first demonstrator project in the United Kingdom

In the debate on the decarbonisation of heat, renewable electricity tends to play a much more dominant role than green gases, despite the potential advantages of gas in terms of utilising existing transportation networks and end-use appliances. Informed comparisons are hampered by information asymmetry; the renewable electricity has seen a huge grid level deployment whereas low-carbon hydrogen or bio-methane have been limited to some small, stand-alone trials. This paper explores the regulatory and commercial challenges of implementing the first UK neighbourhood level 100% low-carbon hydrogen demonstration project. We draw on existing literature and action research to identify the key practical barriers currently hindering the ability of strategically important actors to accelerate the substitution of natural gas with low carbon hydrogen in local gas networks. This paper adds much needed contextual depth to existing generic and theoretical understandings of low-carbon hydrogen for heat transition feasibility. The learnings from pilot projects, about the exclusion of hydrogen calorific value from the Local Distribution Zone calorific value calculation, Special Purpose Vehicle companies, holding of liability and future costs to consumers, need to be quickly transferred into resilient operational practice, or gas repurposing projects will continue to be less desirable than electrification using existing regulations, and with more rapid delivery.

Liability Cost of Government Guarantees in Highway Concession Projects: Case of the Salvador–Itaparica Bridge

Liability Cost of Government Guarantees in Highway Concession Projects: Case of the Salvador–Itaparica Bridge

Third-Party Risk in the Availability Payment: The Palapa Ring Western Package

The Palapa Ring Western Package is the first Public Private Partnership infrastructure project in Indonesia implementing Availability Payment (AP). Prevailing regulations allow the Government Contracting Agency (GCA) and Implementing Business Entity (IBE) to determine the system of incentives and penalties of AP in their project contract. This research explores two main issues: (1) whether the IBE has obligation for contingent cost liabilities outside of the contractually determined AP amount in the occurrence of damage caused by a third party which interrupts or disrupts infrastructure service availability and (2) whether the GCA has the right to penalize AP amount to the IBE in the occurrence of damage by a third party which interrupts or disrupts service availability. By applying normative legal research using the statute approach, this research concludes that in this project, the IBE has obligation for contingent cost liabilities outside of contractually determined AP amount in the occurrence of damage by a third party and the GCA has the right to penalize AP amount if the IBE fails to maintain service availability. The contractual allocation of operational and maintenance risk to the IBE creates obligation to bear costs during the project lifetime including those due to third-party risk. Further, the use of formula to calculate AP to IBE is solely based on performance data in maintaining service availability according to contractually agreed standards. Thus, the use of AP in the Palapa Ring Western Package may be a point to reference for future Public Private Partnership infrastructure projects.

Drug repurposing for SARS-CoV-2: a high-throughput molecular docking, molecular dynamics, machine learning, and DFT study.

A micro-molecule of dimension 125 nm has caused around 479 million human infections (80 M for the USA) and 6.1 million human deaths (977,000 for the USA) worldwide and slashed the global economy by US$ 8.5 Trillion over two years period. The only other events in recent history that caused comparative human life loss through direct usage (either by human or nature, respectively) of structure-property relations of 'nano-structures' (either human-made or nature, respectively) were nuclear bomb attacks during World War II and 1918 Flu Pandemic. This molecule is called SARS-CoV-2, which causes a disease known as COVID-19. The high liability cost of the pandemic had incentivized various private, government, and academic entities to work towards finding a cure for this and emerging diseases. As an outcome, multiple vaccine candidates are discovered to avoid the infection in the first place. But so far, there has been no success in finding fully effective therapeutic candidates. In this paper, we attempted to provide multiple therapy candidates based upon a sophisticated multi-scale in-silico framework, which increases the probability of the candidates surviving an in-vivo trial. We have selected a group of ligands from the ZINC database based upon previously partially successful candidates, i.e., Hydroxychloroquine, Lopinavir, Remdesivir, Ritonavir. We have used the following robust framework to screen the ligands; Step-I: high throughput molecular docking, Step-II: molecular dynamics analysis, Step-III: density functional theory analysis. In total, we have analyzed 242,000(ligands)*9(proteins) = 2.178 million unique protein binding site/ligand combinations. The proteins were selected based on recent experimental studies evaluating potential inhibitor binding sites. Step-I had filtered that number down to 10 ligands/protein based on molecular docking binding energy, further screening down to 2 ligands/protein based on drug-likeness analysis. Additionally, these two ligands per protein were analyzed in Step-II with a molecular dynamic modeling-based RMSD filter of less than 1Å. It finally suggested three ligands (ZINC001176619532, ZINC000517580540, ZINC000952855827) attacking different binding sites of the same protein(7BV2), which were further analyzed in Step-III to find the rationale behind comparatively higher ligand efficacy.Supplementary InformationThe online version contains supplementary material available at 10.1007/s10853-022-07195-8.

Optimal chance-constrained pension fund management through dynamic stochastic control

We apply a dynamic stochastic control (DSC) approach based on an open-loop linear feedback policy to a classical asset-liability management problem as the one faced by a defined-benefit pension fund (PF) manager. We assume a PF manager seeking an optimal investment policy under random market returns and liability costs as well as stochastic PF members’ survival rates. The objective function is formulated as a risk-reward trade-off function resulting in a quadratic programming problem. The proposed methodology combines a stochastic control approach, due to Primbs and Sung (IEEE Trans Autom Control 54(2):221–230, 2009), with a chance constraint on the PF funding ratio (FR) and it is applied for the first time to this class of long-term financial planning problems characterized by stochastic asset and liabilities. Thanks to the DSC formulation, we preserve the underlying risk factors continuous distributions and avoid any state space discretization as is typically the case in multistage stochastic programs (MSP). By distinguishing between a long-term PF liability projection horizon and a shorter investment horizon for the FR control, we avoid the curse-of-dimensionality, in-sample instability and approximation errors that typically characterize MSP formulations. Through an extended computational study, we present in- and out-of-sample results which allows us to validate the proposed methodology. The collected evidences confirm the potential of this approach when applied to a stylized but sufficiently realistic long-term PF problem.

As PCNs grow, managing cost liability is crucial

Good people doing good work is essential to any network.

Medicaid expansion, tort reforms, and medical liability costs

AbstractThis paper examines the impacts of the Affordable Care Act (ACA)'s Medicaid expansion and tort reforms on the medical liability system. Medicaid expansion increased the demand for medical services, but in doing so it may also increase physicians' medical liability. By studying malpractice costs to insurers, medical practitioners, and hospitals in the United States in 2010–2018, we find insurers in Medicaid expansion states experienced higher medical liability costs than those in nonexpansion states. Medical practitioners paid higher premiums in expansion states but the premium increase was not enough to fully offset rising costs. In addition, we do not find that tort reforms mitigated ACA‐induced malpractice liability costs. We show this is because Medicaid expansion increased malpractice costs mainly by increasing claim frequency while tort reforms generally reduce claim severity. We also find little evidence that hospitals paid higher malpractice insurance premiums to insurers or self‐insurance programs, or incurred higher out‐of‐pocket medical liability losses after Medicaid expansion.

Pengaruh Aktiva Tetap, Persediaan, Hutang dan Beban Penjualan terhadap Laba Bersih pada Perusahaan Perdagangan Besar Yang Terdaftar di Bursa Efek Indonesia Periode 2016-2019

The present study is a quantitative one aimed at determining the effect of fixed asset, inventory, liability and sale cost on net profit of large trading companies. The population includes 62 large trading companies listed on Indonesia Stock Exchange within period of 2016-2019. The sampling method used a purposive sampling method with certain criteria by which there were 15 companies obtained so that there were 60 emittent for 4 years. The data is secondary data obtained from www.idx.co.id. The collected data were then analyzed by using a multiple linear regression analysis. The result of the study shown that fixed assets, inventories, liabilities and selling expenses simultaneously have a significant effect on net income. It is indicated by F-Count (27.256) > F- table (2.38) and sig-p (0,000) < 0,05. Fixed asset partially has a significant effect on net income. Inventory partially has a significant effect on net income. Liability partially does not have a significant effect on net income. Selling expenses partially has a significant effect on net income. It is suggested to the trading companies to pay more attention to aspects that affect good profit so that Net Profits can be further increased.
 Keywords : Fixed Asset, Inventory, Liability and Sale Cost.