Industrial Prices Research Articles

The ECB's Solution to the Inflation Caused by the Russia-Ukraine Conflict

Abstract: The Russian-Ukrainian War saw a major escalation on February 24, 2022, when Russia invaded Ukraine, sparking the biggest battle in Europe since World War II. In addition to negatively affecting international relations, this lengthy conflict has had a significant negative influence on world markets, especially those in the Eurozone. The ongoing conflict has intensified inflationary pressures, necessitating the implementation of strong fiscal and monetary measures by the European Central Bank (ECB). This study analyzes the inflationary effect of the Russia-Ukraine crisis on the economies of the Eurozone and assesses the ECB's policies using macroeconomic models, such as the IS-PC-MR model. It explores the complex economic fallout, which includes unstable energy supply, higher industrial prices, and a decline in consumer confidence. The economy has stabilized largely because of the ECB's initiatives, which have included coordinated fiscal policies, interest rate hikes and asset purchase adjustments. Despite these initiatives, problems still exist, such as controlling the growing public debt and striking a balance between inflation management and economic growth. In order to strengthen economic resilience, the conclusion highlights the need for ongoing adaptation and international cooperation. Investments in integrated fiscal measures, diverse supply chains, and renewable energy are suggested as being crucial for long-term stability. The purpose of this study is to provide insights for future economic crisis management and to contribute to policy-making conversations.

Evaluating Environmental Sustainability: The Role of Agriculture and Renewable Energy in South Korea

This study investigates the impacts of agriculture and renewable energy consumption on CO2 emissions in South Korea from 1980 to 2023, highlighting both challenges and opportunities for environmental sustainability. Utilizing bootstrap ARDL, FMOLS, and CCR methodologies, the analysis reveals that traditional agricultural practices significantly increase CO2 emissions, underscoring the urgent need for sustainable agricultural reforms. Conversely, renewable energy consumption effectively reduces CO2 emissions, thereby supporting the nation’s transition towards sustainable energy sources. Additionally, control variables such as industrial activity, urbanization, energy prices, and government environmental policies exhibit significant effects on CO2 emissions. Specifically, industrial activity and urbanization contribute to increased emissions, whereas higher energy prices and stringent environmental policies are associated with reduced emissions. These findings highlight the necessity for targeted agricultural and energy sector reforms to achieve a balance between economic growth and environmental preservation. Robustness tests confirm the stability of these relationships, providing a reliable foundation for policymakers to develop effective strategies for a sustainable future in South Korea.

Convertible Bond Pricing in Chinese Transportation Industry : A Comparison Methods Between Binomial Tree model and Black-Scholes Model

Convertible Bond Pricing in Chinese Transportation Industry : A Comparison Methods Between Binomial Tree model and Black-Scholes Model

Tobacco industry pricing strategies during recent tax adjustments in Mexico: evidence from sales data

IntroductionPrevious studies have identified pricing strategies that the tobacco industry employs to try to minimise the impact of tobacco taxation, but these studies are mostly about high-income countries. This research...

Applying the LightGBM model and SHAP interpretation to understand the urban land price index and its influencing factors in China

ABSTRACT Investigating the key factors affecting land prices is conducive to establishing targeted market-oriented reforms of the land market and promoting its healthy development. Traditional linear analysis cannot comprehensively compare the importance of feature variables and is unable to analyse the nonlinear influence process of feature variables. Therefore, based on the land transaction dataset from 2011 to 2020 in China, we used machine learning and the Shapley Additive exPlanations method to analyse the importance ranking of factors affecting land prices and analyse the nonlinear influence processes. The government fiscal, industrial development, and financial system indices are determined as the most important factors affecting residential, commercial, and industrial land price indices, respectively, and each exhibits different characteristics. The financial system index exerts the strongest impact on land price indices in large cities, whereas transportation and communication indices are the most dominant in small cities. Moreover, industrial development index is the most important influencing factor in industrial cities, whereas regional economic index exerts the greatest impact in small cities. By employing machine learning methods, we determined nonlinear effects that traditional linear models fail to obtain. Based on the results, we propose policy recommendations for market-oriented reforms on the land market, real-estate policies, and a stable monetary system.

Cultural Influences on Dynamic Pricing and Consumer Price Sensitivity in FMCG Industry

Cultural Influences on Dynamic Pricing and Consumer Price Sensitivity in FMCG Industry

Impacts of Different Epidemic Outbreaks on Broiler Industry Chain Price Fluctuations in China: Implications for Sustainable Food Development

Poultry products are crucial for meeting consumer needs and ensuring food sustainability. Unlike previous studies that examined the effect of only one animal disease on broiler prices, this study utilized a time-varying parametric vector auto-regressive (TVP-VAR) model to analyze the dynamic impacts of poultry and swine epidemics on price fluctuations in the upstream, midstream, and downstream sectors of the broiler industry. The findings revealed the following: (1) Both poultry and swine epidemics significantly affected price dynamics in China’s broiler industry, with varying effects over time. (2) The impact of these epidemics varied across different segments of the broiler industry, with chicken prices most affected, followed by live chicken prices, then broiler chick prices, and lastly, broiler feed prices. (3) Poultry epidemics generally exerted negative impacts on broiler industry prices, whereas swine epidemics predominantly had positive effects. (4) The influence of these epidemics on broiler industry prices gradually weakened over extended periods. (5) Poultry epidemics impact broiler industry prices rapidly but briefly, in contrast to the delayed and more sustained effects of swine epidemics. The results of this study will be an important guide for the prevention and control of animal diseases in developing countries and for the sustainable development of the broiler industry.

Calculation and optimization of China's power distortion under carbon peaking target

Based on Hahn & Metcalfe (2021), we deduced the theoretical framework and calculated China's power distortion index (PDI) using the city-level industrial and residential power consumption and price data. We further studied the relationship between PDI and carbon emissions, and optimized the PDI under the carbon peaking target through scenario analysis. We find that: (1) China's PDI showed an inverted “U” shape between 2006 and 2019. (2) On average, one-unit decrease in PDI could result in a decrease of 3.72 % in carbon emissions. (3) The scenario simulation indicates that to achieve the target PDI, the average industrial (residential) power price in 2030 needs to be reduced (increased) to 0.59 (0.58) yuan.

Occupational Hazards in Lead-acid Battery Factories in Bangladesh: Assessing Excess Heat, Noise, Chemical Exposures, and Health Impacts on Workers

BackgroundLead-acid battery (LAB) manufacturing is growing in Bangladesh because of the expanding automotive industry and low lead prices. Although these factories employ a big workforce, the working environment has led to concerns about the possible health risks for employees. This study aimed to address this issue by investigating workplace chemical and physical hazards in three LAB industries and evaluating health outcomes among workers. MethodsA cross-sectional study was conducted among 72 LAB factory workers, and participants were recruited by simple random sampling. A validated questionnaire was used to collect information on self-reported exposures to physical and chemical risks and related health effects. Data analysis was performed by using statistical software SPSS version 25. ResultsThe age and work experience (Mean ± SD) of the participants were 34.2 ± 7.7 and 10.0 ± 5.7 years, respectively. High workplace temperature and noise from machinery, chemical odors, and skin exposure to acid (H2SO4) were reported by 52.8%, 51.4%, and 20.8% of workers, respectively. Insomnia (25.0%), abdominal pain (18.1%), joint pain (38.9%), memory loss (19.4%), headache (15.3%), low back pain (47.2%), eyesight problem (19.4%), physical weakness (47.2%), and hypertension (19.4%) were all common symptoms among the workers. ConclusionOur study findings indicate that workers in LAB factories in Bangladesh are exposed to extreme temperatures, hazardous materials, and uncomfortable levels of noise, which can lead to serious health risks. To ensure the safety and well-being of employees, the LAB manufacturing sector in Bangladesh requires the immediate implementation of proper occupational health and safety standards.

Does accounting information identify bubbles for Fama? Evidence from accruals

Economists have long observed that stock price bubbles are associated with corporate overinvestment. We study the ex-ante identification of bubbles (i.e. stock price booms followed by busts) by examining industry-level investments in net operating asset (NOA) accruals and stock returns for 49 countries around the world. Consistent with overinvestment in operating assets being key to bubble formation, we document five findings: (1) NOA accruals positively forecast the eventual crash of an industry price run-up; (2) NOA accruals negatively forecast stock returns following a run-up; (3) NOA accruals are positively associated with investor sentiment; (4) higher NOA accruals forecast more disappointing earnings relative to analysts’ expectations for run-up industries; and (5) NOA accruals are sharply stronger predictors of crashes, returns and analyst forecast errors following run-ups compared to other periods. Our results provide the first evidence that accounting information identifies stock price bubbles and suggest that financial statements are important for detecting and anticipating industry- and market-level inefficiencies.

Monitoring of high-dimensional and high-frequency data streams: A nonparametric approach

ABSTRACT High-dimensional and high-frequency data streams (HHDS) have become widely available with the prevalence of data-acquisition technologies. Because HHDS have the characteristics of high dimensionality and temporal correlation, traditional statistical process control (SPC) techniques cannot be used directly to address the problem of monitoring HHDS. Most extant monitoring methods commonly assume that the process observations are independent or can be described by some parametric models and face the challenge posed by high-dimensional data. Little research has been conducted on the robust monitoring of HHDS that can simultaneously accommodate high dimensions and high frequencies. Therefore, in this paper, we propose a novel nonparametric approach for monitoring HHDS, based on data decorrelation, dimension reduction, and SPC. Specifically, process observations are first sequentially decorrelated and standardized using Cholesky decomposition, and then the k -nearest neighbors classification algorithm is applied to transform uncorrelated high-dimensional data into one-dimensional data. Finally, the traditional cumulative-sum procedure is used for online monitoring, based on an empirical log-likelihood ratio test. Numerical studies have shown that our monitoring scheme is sufficiently reliable and efficient for the online monitoring of HHDS. An illustrative example about the Dow Jones 30 industrial stock prices is presented to further validate the proposed approach.

Floating solar power plant planning based on electricity price fluctuations in Towuti, south Sulawesi

A company located in South Sulawesi, intends to mitigate emissions from the Power Plant by constructing an environmentally friendly alternative, namely the Floating Solar Power Plant (FSPP), in Towuti. The development plan involves a feasibility analysis for each configuration of the FSPP, considering technological, economic, and environmental criteria. The selection of the preferred configuration is determined using the Analytical Hierarchy Process (AHP) method, based on input from experts. According to this method, the chosen configuration is the on-grid non-battery Floating Solar Power Plant, with a Net Present Value of Rp. 1,431,159,245,752, an Internal Rate of Return of 9.46%, a Payback Period of 8.916 years, a Profitability Ind ex of 1.299, a system efficiency of 21.56%, a carbon footprint of 35,003 kg CO2, and an emission reduction of 9,136,808,273 kg CO2. Decision analysis, involving open and abandonment scenarios based on fluctuations in industrial electricity prices, was conducted using Monte Carlo simulation, yielding a volatility value of 31.2%. The real options analysis recommends abandonment in the twentieth year, with a decision success potential of 38%, based on the results.

How does the e-cigarette industry respond to tax adjustments? Evidence from China.

China enacted an excise tax on e-cigarettes in November 2022, which offers a distinctive opportunity to examine the industry's reactions to this fiscal adjustment. This study delves into the industry's pricing strategies following the introduction of the excise tax, facilitating a thorough assessment of the subsequent impact on market dynamics and the government's revenue streams. We developed a TaXSiM model specifically tailored for e-cigarettes in China by integrating the country's e-cigarette tax framework. Our approach involved leveraging market data obtained from a representative product, the RELX Phantom Series, to ensure the model's effectiveness and relevance. The excise implementation of 2022 significantly heightened the tax burden on e-cigarettes, marking an increase of approximately 150 RMB per device and 19 RMB per cartridge. Despite these financial pressures, electronic cigarette firms exemplified by RELX, strategically endeavored to sustain competitiveness. Their approach involved initially implementing a 'Razor blade model' and eventually a 'comprehensive under-shifting' strategy, which mitigated the health impact of the tax hike, resulting in a relatively minor decline in sales while amplifying the impact on tax revenue. However, this strategic pricing maneuver came at a cost, as it led to a substantial decrease in profits, and therefore expedited a reshuffling of the industry by compelling smaller brands to leave the market rapidly. To effectively curb the use of e-cigarettes through tax policies, it is advisable to relocate the imposition of excise taxes on electronic cigarettes to the retail stage. This shift aims to narrow the scope for industry-level pricing strategies. Furthermore, this approach should be coupled with the introduction of an additional specific tax, strategically crafted to accentuate the health-related benefits associated with the excise taxation on electronic cigarettes.

Determinants of stock prices in telecommunication industry: An application of fundamental analysis

The present study attempted to assess the impact of fundamental ratios on the share prices of selected telecommunication companies in India. India has dramatically expanded over the past ten years to become the second-biggest telecoms market worldwide, with 1.17 billion users. The Indian telecom industry has proliferated thanks in part to the government of India’s liberal and reformist policies and strong customer demand. It has become a lucrative investment sector for investors due to its recent and prospective growth. Data on 13 telecom firms indexed in the S&P BSE telecommunication index from 2013 to 2022 were taken from companies’ annual reports, the BSE website (Bombay Stock Exchange), and other secondary sources. Six firm-specific fundamental factors viz. Debt to Equity ratio (D/E), Current ratio (CR), Total Assets Turnover ratio (ATR), Earnings per share (EPS), Price to earnings ratio (P/E), Return on equity (ROE), and three country-specific fundamental factors viz. Gross Domestic Product, Inflation rate, and S&P BSE Sensex return were considered. Fixed effect panel regression through Generalized Least Square (GLS) model was performed to find inferences. Debt Equity ratio and Inflation rate were found to impact share price negatively. Conversely, the Total Assets Turnover ratio (ATR), Earnings per share (EPS), Price to Earnings ratio (P/E), and Return on Equity (ROE) positively impacted selected companies’ share prices. The study results will benefit individual & institutional investors in formulating their investment and portfolio diversification strategies for gaining a high effective rate of return on their investments.

Land price regulation and firms' global value chain position: Evidence from China

Exorbitant land prices have been a significant constraint on firm growth; however, few studies have explored their effect on firms' global value chain (GVC) positions. By treating the 2007 minimum price policy for industrial land as a quasi-natural experiment, this study estimates the impact of land price regulations on firms' GVC positions. Using a difference-in-differences method with continuous treatment intensity, we find that industrial land price regulation has a remarkably negative effect on firms' GVC positions. This effect is primarily observed in small- and medium-sized enterprises and private enterprises. The mechanism analysis suggests that industrial land price regulation has significantly increased the cost of land purchases by firms, squeezing their investment in innovation and reducing the quality of intermediate inputs, thereby degrading their position in GVCs.

Pengaruh Faktor – Faktor Fundamental Keuangan Terhadap Harga Saham Pada Industri Keuangan Sub Sektor Perbankan Bursa Efek Indonesia Tahun 2019 - 2020

Shares are considered to be an indicator of success in managing a banking company because share prices that have increased indicate that the company is in good condition. The closing price is the last price that appears on a company's shares before the stock exchange closes. The aim of this research is to find out how fundamental financial factors influence stock prices in the sub-banking financial industry of the Indonesian Stock Exchange. Secondary data from audited annual reports on the official IDX website, www.idx.co.id, served as the data source for this research. The research population consisted of financial industry companies in the banking sub-sector from 2019 to 2020. Sample selection was conducted using purposive sampling. Descriptive analytical methods with the SPSS version 25 program were employed for analysis, and hypothesis testing utilized the multiple linear regression method. The findings indicate that Price to Earnings Ratio (PER) and Earnings Per Share (EPS) have a significant influence on stock prices, whereas Return on Equity (ROE) and Net Profit Margin (NPM) do not. However, collectively, NPM, ROE, PER, and EPS as fundamental financial indicators have an impact on stock prices. Keywords: Stock Price, NPM, ROE, PER dan EPS

When do Airlines Price Match? A Review of Factors Affecting Parallel Pricing


 
 
 Parallel pricing refers to the practice of firms making independent pricing decisions to match each other’ prices. This paper provides plausible economic intuitions about the market characteristics that affect the emergence and persistence of airline parallel pricing behavior by reviewing and synthesizing the relevant factors identified in the industrial organization literature as influencing cooperative outcomes or tacit collusion. One of the key findings of this paper is that the combination of high price transparency, quick price response, and repeated interactions among competing airlines can make parallel pricing as a self-evident outcome, even in the presence of information asymmetries, cost discrepancies, variations in capacity and service quality, as well as fierce market competition. Another finding is that as personalized pricing becomes more prevalent, the likelihood of success of parallel pricing may decrease. It remains unclear what other forms of cooperative outcomes will emerge as the industry continues to adapt to changing technological and market landscapes. With these findings, this paper contributes to the groundwork for developing a comprehensive model of parallel pricing in the airline industry.
 
 

Financial Performance, Dividend Policy, and Firm Value in Indonesian Consumer Goods Sector: 2019-2021 Study

This study investigates the nexus between return on assets (ROA), return on equity (ROE), dividend payout ratio (DPR), and firm value, represented by stock prices, within the consumer goods industry sector on the Indonesia Stock Exchange from 2019 to 2021. Utilizing a sample of 26 companies, employing Partial Least Square (PLS) analysis, the research reveals that neither ROA nor ROE significantly influences stock prices, and ROE exhibits no impact on DPR. Moreover, DPR fails to influence stock prices, and it cannot serve as an intervening variable between ROA or ROE and stock prices. These findings suggest a decoupling between financial performance metrics and market valuation within the consumer goods sector, urging a reconsideration of conventional wisdom regarding the determinants of stock prices in this industry Highlights : Limited Influence of ROA and ROE: The study reveals that return on assets (ROA) and return on equity (ROE) do not significantly impact stock prices in the consumer goods sector. Mediation Role of DPR: Dividend payout ratio (DPR) fails to mediate the relationship between ROA or ROE and stock prices, indicating its limited influence on market valuation within the sector. Implications for Market Valuation: The findings challenge traditional assumptions about the determinants of stock prices in the consumer goods industry, prompting a reevaluation of financial performance metrics' relevance in market valuation. Keywords: Consumer Goods Sector, Stock Prices, ROA, ROE, DPR

Pengaruh Transfer pricing dan Sales Growth Terhadap Tax avoidance Pada Perusahaan di Bidang Teknologi (Data IDX 2021-2023)

The global technology sector has experienced significant growth, leading to increased scrutiny of tax practices within companies. Transfer pricing, the practice of setting prices for transactions between affiliated entities, has been a focus of regulatory bodies and academics. The relationship between Sales Growth and Tax Avoidance is an important aspect that has not been explored in the context of technology companies. This research aims to examine the relationship between Transfer pricing, Sales Growth, and Tax Avoidance in the technology industry by utilizing data from the Indonesia Stock Exchange (BEI) from 2021 to 2023. This research uses quantitative methodology, specifically utilizing IDX financial data. for technology companies. Transfer pricing practices will be assessed through financial indicators, while Sales Growth will be measured as a percentage increase in revenue during the research period. Tax Avoidance will be operationalized using predetermined metrics such as effective tax rates. Statistical methods, such as regression analysis, will be used to identify patterns and correlations between variables. Research findings show that there is no relationship between Transfer Pricing and Sales Growth and Tax Avoidance in companies operating in the Technology Sector.

Can the Difference of the Transfer Trice of Industrial Land "Bidding, Auctions and Listings" Promote the Transformation and Upgrading of Regional Industries?

The purpose of this study is to explore the impact of the difference in the transfer price of industrial land on the regional industrial transformation and upgrading under the "bid and auction" system. Research methods: panel data fixed effect model. Research results: Improving the differentiation of industrial land transfer price is conducive to regional industrial transformation and upgrading, and this conclusion has passed a variety of robustness tests. Research conclusions: First, formulate and improve the promotion of industrial land transfer price differentiation strategy. The second is to establish and improve the enterprise entry and exit mechanism to improve the efficiency of industrial land resource allocation. The third is to further improve the secondary market trading system of industrial land, and actively explore the circulation mechanism of stock industrial land to ensure the reasonable flow and efficient use of industrial land resources.