Rate Depreciation Research Articles

Research and improvement of fraud identification model of Chinese A-share listed companies based on M-score

Purpose The purpose of this paper is to start with the background of the construction of the M-score model, find the variables that can represent the fraud characteristics of Chinese companies, and use the data of Chinese A-share listed companies to modify the M-score model. Design/methodology/approach In this paper, the fraud behavior of Chinese enterprises that M-score cannot detect is summarized as the basis of adding variables. Then, based on the data of Chinese listed companies, a modified M-score model including nine variables is constructed by the logistic regression method based on Wald. Findings Based on the original 8 variables of M-score, this paper adds 10 new variables that can represent the fraud characteristics of Chinese listed companies, and finally, constructs a modified M-score model with 9 variables. Results indicated that indexes such as gross profit margin, fixed assets depreciation rate, equity concentration and audit opinion can characterize the financial fraud of Chinese listed companies. Practical implications The modified M-score model based on the characteristics of Chinese enterprises’ fraud is more suitable for Chinese market, which can help investors avoid fraud risks, protect their own rights and interests and reduce losses. Originality/value Starting from the background of the model, this paper looks for variables that can characterize the characteristics of fraud in Chinese listed companies. Then, subdivides the research samples into specific fiscal years in which fraud occurs, so that the modified M-score model can be more suitable for the Chinese market.

The economic depreciation of real estate: Cross-sectional variations and their return implications

This study analyzes how real estate depreciates in economic value as it ages. The economic depreciation of real estate affects investment decisions by decreasing appreciation returns and increasing income returns. The data show significant cross-sectional variation in depreciation rates for residential and commercial real estate for Japan and residential real estate for the U.S. The depreciation rate is larger if a property is commercial, newer, denser, located in a smaller city, more distant from the central business district, and in Japan. The depreciation rate of structures is approximately 6% for Japanese housing, 10% for Japanese commercial structures, and 1% for the U.S. housing. This study also proposes new methods to correct for survivorship biases. These results serve as essential inputs for the analysis of real estate investment, consumer choice of housing, sustainability, and the macroeconomy.

Value depreciation factors for new and remanufactured high-technology products: a case study on iPhones and iPads

Governmental regulations for expansion of e-waste and customers’ awareness of green goods drive remanufacturing practices in high-technology electronic products. Selling remanufactured high-technology products is a challenge because of the shorter residual life of usage and potential cannibalisation of new items. Smartphones and tablets, as hi-tech products, are replaced by new generation models quickly due to rapid development. Products belonging to earlier generations become less demanding. Customer’s acceptance for outmoded remanufactured items is even less. Learning how value depreciated is vital for the sellers to make a wise price decision for these new and remanufactured products belonging to various generations. This study leverages transaction data of iPhones and iPads from eBay, uses partial least square method to explore the factors that affect value depreciation rate and price differentiation between new and remanufactured products. Variables which are categorised as marketing elements, technology features, appearance design, and customer attention are hypothesised to be critical to value depreciation. The result differs in iPhones and iPads but shows some consistency that time since release, product thickness, camera resolution, and fans/hits ratio are highly correlated to the value depreciation rate. ApplePay slows down the rate for iPhones while cellular data function accelerates the rate for iPads.

Construction de séries de stocks de capital humain pour la Chine de 1949 à 2014

Notre problématique, partant du contraste entre rythme accéléré de la croissance économique de la Chine et modération de son évolution démographique, est centrée sur la qualification de la population. Une revue de la littérature sur le capital humain chinois est d’abord proposée afin de mettre en évidence ses avancées et limites. C’est ensuite notre propre méthodologie de construction de deux stocks de capital humain qui est présentée. Nous détaillons les processus de détermination des taux de dépréciation des stocks, puis les accroissements de ces derniers, et enfin des valeurs de stocks pour des années de référence. Nos séries de capital humain chinois de 1949 à 2014 sont finalement livrées aux lecteurs. Classification JEL : C8, I2, J1, N3, O4.

Proposal of LED-based linear lighting systems with low power consumption and high light distribution for laying hens

The commercial production of eggs demands artificial illumination for reproductive stimulation of birds. The lighting systems currently used have limitations when applied in aviaries and need improvements to enable energy savings and production optimization. This study presents three original contributions: (i) the proposal of a low-power linear lighting system, developed for the commercial production of eggs, and methodology for sizing of linear lighting; (ii) comparative analysis of the same with the conventional LED lamps for energy efficiency, illuminance distribution, depreciation and temperature emission; and (iii) use of geostatistical method for analysis of the vertical light distribution in aviary. Based on the results, the linear lighting system in flexible LED strips reduced energy consumption by 32% compared to LED lamps and improved light distribution in cages. The LED strips showed low depreciation rate of the luminous flux (approximately 2% in 1080 h of use in the aviary). High surface temperatures were observed in the LED lamps (79.2 °C basal region of the LED lamp vs. 26.0 °C LED strip), which can contribute to the increase of energy consumption by the ventilation systems of the aviaries, and impair the conditions of comfort heat of the birds. Thus, the LED strips developed in the present study offer greater energy efficiency and can be a viable alternative technology for aviaries.

Estimating Housing Rent Depreciation for Inflation Adjustments

U.S. inflation measures, such as the Consumer Price Index, are adjusted for an aging-bias based on estimates of the average rent depreciation. This study analyzes the characteristics of rent depreciation using novel, market-based data on rental contracts in Las Vegas, NV. We find that the estimated annual depreciation rate for new properties is 0.9% for single-family residences and 1.5% for condominiums. The higher depreciation rate for condominiums is due to higher functional obsolescence instead of physical deterioration. Rent depreciation rates are lower for older and smaller structures and vary significantly across neighborhoods. Our results suggest that local inflation rates are biased downward where new and large units increased since the last update to the official rent depreciation estimates but upward where the housing stock became older. From an asset pricing perspective, failing to account for initially high depreciation results in an overvaluation of new properties and an undervaluation of old properties.

Hiện trạng khai thác và nhận thức về tác động của biến đổi khí hậu đến nghề lưới rê ven bờ tỉnh Bạc Liêu

Studying was performed through interviewing 40 fishermen. Results showed that boat power: 26.30±14.54 CV; gillnet length, height and mesh size are at 3,613.10±2,269.31 m, 3.59±1.86 m, and 2a=53.4±15.5 mm, respectively. Average labor 3.65±1.42 people/boat (51.42% from family); Average fishermen age: 40.08±11.13 years old; Fishing experience: 18.10±11.31 years; Educated rate: 75% for primary school. Ratio of operated boats: 60-87.5% per month; number of operated months: 9.3±3.11 months/year; fishing yield: 4.44±2.21 tons/year. Reasons for decreasing yield: overfishing (100%); climate change (47.5%); fishing gears (22.5%); polluted (20.0%). Total investment cost: 130.8±74.1 VND millions/boat. Depreciation rate: 3.2±2.3 VND millions/month. Variable cost: 1,014.8±392.9 VND thousands/day. Profit rate: 0.64±0.49 times. Having 45% fishermen used to hear about climate change; 62.5% fishermen showed some of climate change manifesting. 47.5% fishermen having temporary solutions.

The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

This paper examines the relationship between the real exchange rate and the foreign trade imbalance in both the Western Balkan (WB) and Central and Eastern European (CEE) countries. During the most recent global economic crisis, examining the impact of the exchange rate on the balance of trade took on a particular importance. Countries used a variety of monetary policy regimes and, depending on their choice, they had different economic instruments available to deal with the crisis. The aim of the research was whether exchange rate devaluation and/or depreciation are capable of effectively and fully eliminating the negative effects of the global economic crisis, as well as the consequent poor export performance and contracted economic activity. Our findings show that during an economic crisis those countries that use their own currency cannot substantially adjust their trade deficit by depreciating their currency. Moreover, it is suggested that during the global economic crisis, the balance of payments deficit is not impacted significantly by the exchange rate, any more. In such cases, other factors play a more significant role, like as government spending, followed by foreign demand and direct investments.

Human Capital Depreciation

Human capital can depreciate if skills are unused. But estimating human capital depreciation is challenging, as worker skills are difficult to measure and less productive workers are more likely to spend time in non-employment. We overcome these challenges with new administrative data on teachers’ assignments and their students’ outcomes, and quasi- random variation from the teacher assignment process in Greece. We find significant losses to output, as a one-year increase in time without formal employment lowers students’ test scores by 0.09 standard deviations. Using a simple production model, we estimate a skill depreciation rate of 4.3% and experience returns of 6.8%.

Human Capital Depreciation

Human capital can depreciate if skills are unused. But estimating human capital depreciation is challenging, as worker skills are difficult to measure and less productive workers are more likely to spend time in non-employment. We overcome these challenges with new administrative data on teachers’ assignments and their students’ outcomes, and quasi- random variation from the teacher assignment process in Greece. We find significant losses to output, as a one-year increase in time without formal employment lowers students’ test scores by 0.09 standard deviations. Using a simple production model, we estimate a skill depreciation rate of 4.3% and experience returns of 6.8%.

Dynamical analysis of Kaldor business cycle model with variable depreciation rate of capital stock

In this paper, the Kaldor business cycle model with variable depreciation rate of the capital stock are investigate the existence, uniqueness and stability of the positive equilibrium point, and the existence of the periodic solution and Hopf bifurcation respectively. Finally, we analyze the dynamic behaviors of the specific system and perform numerical simulations.

Social Capital, Endogenous Labor Supply, and Economic Development

Social capital has been increasingly recognized as an important determinant of economic growth in the literature of economic growth. Nevertheless, there are only a few rigorous dynamic growth models which explicitly deal with dynamic interdependence between social capital, physical capital, and economic structure. The purpose of this study is to incorporate social capital in a neoclassical economic growth theory. We propose a dynamic model with interdependence between economic structural change, wealth accumulation, and social capital accumulation. Social capital positively affects total factor productivities and is accumulated through investment, leisure activities, and production. We simulate the model. The study focuses on effects of changes in some parameters on the equilibrium and transitional processes of the economic dynamics. We get some insights through including social capital in economic growth modelling. For instance, if society has lower trust (possibly if we interpret social capital as guanxi in Chinese societies) which results in a rise in depreciation rate of social capital, the economy suffers from falling social capital, productivities, national capital, and national output; consumers have lower income, wealth, and consumption; they also have to spend more time on investing in social capital.

Technical Accelerator and Integrated Assessment of Technical and Economic State of Fixed Assets: a Mathematical Model

The article identifies the flaws of indicators for assessing the state of fixed assets in terms of reflecting the relationship between the dynamics of technical characteristics and economic indicators of operation, the associated limitations of managerial activity in the field of investments and forecasting cash flows. It indicates the problem of the deficit and surplus of the depreciation fund. It substantiates the necessity of developing an integrated indicator of the fixed assets state expressing the relationship of their technical parameters with economic indicators of operation. Based on the essence of production, it offers an indicator of a technical accelerator and discloses its essence. The article substantiates mathematical models of the technical parameters dynamics for fixed assets and the dependence of economic indicators of operation on technical parameters. It gives an economic interpretation of the elements of regression equations. It determines the range of technical accelerator values. It develops an integral indicator of the technical and economic state of fixed assets, determines its essence and relationship with the depreciation rate, identifies the criteria of correspondence of physical wear time with depreciation time of fixed assets.

Consumer preferences for battery electric vehicles: A choice experimental survey in China

To accelerate the diffusion of battery electric vehicles (BEVs), consumer preferences for different products and policy attributes must be determined. Although previous studies have investigated consumer preferences for some product attributes, including purchase price, operation cost, driving range, and charging time, limited studies have discussed the broader aspects of product attributes, such as battery warranty and depreciation rate. Moreover, market-oriented incentives, including the personal carbon trading (PCT) scheme and the tradable driving credits (TDC) scheme, can theoretically be effective alternatives to expensive purchase subsidies. However, there is a lack of empirical evidence that confirms the influence of these two schemes on BEV adoption. To fill these gaps, we conducted a stated preference choice experimental survey in China and investigated the effect of product attributes, existing policy incentives, and two emerging market-oriented incentives on BEV adoption. Our results reveal that along with the main product attributes, battery warranty has a significant positive effect on inducing mainstream consumers to adopt BEVs while no preference difference occurs among existing policy incentives after purchase subsidies are abolished. For young consumers, almost all incentives that reduce the operation cost (e.g., PCT) or increase convenience (e.g., TDC) can increase their adoption of BEVs. These findings can provide important implications for the government with regard to designing novel incentives and promoting BEV adoption.

Is heterogeneous capital depreciation important for estimating firm-level productivity? Evidence from Chinese manufacturing firms

This paper contributes to the existing literature on estimating firm-level production functions. Using Chinese manufacturing survey data, we employ the firm-level heterogeneous capital depreciation rate to measure firms’ investment and assess its role using Olley and Pakes (1996) (OP) production function estimation technique. Although there is some ongoing debate on the econometric soundness of the OP technique, we argue quantitatively that the heterogeneous depreciation rate muffles the measurement error associated with the key input demand investment. In our sample, it significantly narrows the gap of total factor productivity (TFP) estimates between the OP technique and a state-of-the-art estimation method that works without investment. We further reveal that the improved performance primarily originates from the dynamic evolution in the distribution of the capital depreciation rate.

Public infrastructure and trade in a dynamic two‐country model

AbstractWe develop a two‐country dynamic trade model with public infrastructure having an “unpaid‐factor”‐type positive externality on private sectors’ productivity. With welfare‐maximizing national governments making infrastructure investment, we show that a country with a smaller labor endowment, a lower depreciation rate of infrastructure, and/or a lower time preference rate will become an exporter of a good that is more dependent on infrastructure and will gain from trade, whereas its trading partner may lose from trade. We consider both the nonstrategic governments case and the case of strategic governments that recognize the effect on the terms of trade.

Are two better than one? Modelling the complementarity between patents and trademarks across industries

ABSTRACTIntellectual property (IP) rights are a major component of firms’ strategies to appropriate the benefits of their innovations. This paper aims at assessing the interactions between two types of IP rights, namely patents and trademarks. We first model the effect of these two types of IP rights on the returns of innovations for firms. Based on a supermodularity analysis, we then show that the complementarity between trademarks and patents varies according to the characteristics of the market. Depending on the levels of advertising’s spillovers and depreciation rate, trademarks are found to be complementary or not to patents. Finally, based on a data set encompassing the IP activity of a sample of publicly traded firms among the top corporate R&D investors worldwide, we find that patents and trademarks are complementary in chemical and pharmaceutical sectors, but not in Information and Communication Technologies (ICT) sectors.

Knowledge Obsolescence and Women’s Occupational Sorting: New Evidence from Citation Data

Abstract Occupational sorting now is one of the main drivers of the gender wage gap. Differential rates of human capital depreciation, or knowledge obsolescence, have been put forward as one potential explanation. This paper provides new evidence on this relationship using a dataset on academic citations constructed by the authors. The dataset covers numerous fields and decades, making it a more recent and comprehensive measure of human capital depreciation. Using data on occupations from the ACS we find that higher rates of knowledge obsolescence are associated with reductions in women’s presence in a field. We also find that knowledge obsolescence reduces female presence in college majors at the undergraduate level.

Modeling the process of attracting foreign investment in the Russian economy

In the paper, on the basis of an assessment of the development of the Russian economy, the sectors most in need of an investment are identified, taking into account the depreciation rate of basic production assets. Depreciation of fixed assets reflects the demand for investment in order to modernize and reconstruct production. Based on the data of the Federal State Statistics Service of Russia, a rating of economic sectors in terms of the degree of depreciation of fixed assets at the end of the year by type of economic activity for 2013-2018 is built. In addition, the paper presents a model for predicting the inflow of foreign direct investment in Russia, developed using the classical approach to estimating linear regression criteria, which is based on the least squares method (OLS). In compiling this regression model, the applied software package for econometric modeling GRETL (GNU Regression, Econometrics and Time-series Library) was used to predict the inflow of foreign investment. Forecasting the inflow of foreign investment in the Russian Federation is aimed at solving the following tasks: to determine the most competent direction of investment policy and activity using forecast estimates, as well as to assess the country’s investment attractiveness. However, a significant role in predicting this indicator is played by the determination of factors that have an impact on the future volume of foreign investment. In addition, the analysis of foreign investments, depending on the influence of various factors, can tell about those or other motives that guide foreign investors when investing their own capital.

Alternative Land‐Price Indexes for Commercial Properties in Tokyo

The System of National Accounts (SNA) requires separate estimates for the land and structure components of a commercial property. Using transactions data for the sales of office buildings in Tokyo, a hedonic regression model (the “builder’s model”) was estimated and this model generated an overall property price index as well as subindexes for the land and structure components of the office buildings. The builder’s model was also estimated using appraisal data on office building real estate investment trusts (REITs) for Tokyo. These hedonic regression models also generated estimates for net depreciation rates, which can be compared. Finally, the Japanese government constructs annual official land prices for commercial properties based on appraised values. The paper compares these official land prices with the land prices generated by the hedonic regression models based on transactions data and on REIT data. The results reveal that commercial property indexes based on appraisal and assessment prices lag behind the indexes based on transaction prices.