Redistribution Of Profits Research Articles

From market-based development to value chain transformation: What markets can (not) do for rural poverty alleviation?

Market reforms are considered as an important strategy to support poverty reduction amongst small-scale agrifood producers in developing and emerging economies. Most attention is commonly focused on voluntary initiatives that provide a guaranteed minimum price to farmers and improve services for rural communities, supplemented by good agricultural practices for higher productivity, environmental quality and to support living incomes. Whereas alternative trade movements have become ‘mainstream’ their market shares are stagnating. Since agrifood markets have changed substantially and trade networks are restructured, smallholders are increasingly controlled by midstream agents (traders and processors) and captured into contract farming arrangements. This article outlines a new discourse around value chain transformation that supports local processing for income and employment generation and favours better integrated supply chains based on circularity and trust. It identifies new alliances between producers and traders that change market governance beyond simple adjustments in exchange relationships. Combining public investments (market infrastructure) with civic-driven organization (cooperation and contracts) and private networks (for profit redistribution along the value chain) offers interesting opportunities for linking sustainable business practices with value-driven trade arrangements.

Transformation of integrated formations in industry

Modern realities are such that the priority in the activities of any company is its efficiency, and it does not matter in what area or sector of the economy it operates. Making a profit is the main goal for managers, and even more so for company owners, and any opportunity to minimize costs and thereby increase their assets will be used by business. One such way for large corporations to reduce costs is to move from the status of a holding structure to that of a group of companies. If necessary, companies that have chosen such an organizational and legal form can quickly respond to changes in the external environment and focus the necessary company resources in one direction to promptly decide on a strategic task and its immediate implementation. Such associations manifest themselves most clearly in extreme conditions, and where other companies go into the red, they show positive dynamics in revenue growth. The article presents the results of the author’s research on the above topic. For analysis, some aspects of the organizational activities of holding structures and groups of companies were selected, such as legal issues, the status of companies, the possibility of bankruptcy and mutual liability of organizations within the company, consolidation and redistribution of profits, finances, resources, means of production and logistics; image and business reputation; control system; risks; relationships with partners and employees; pricing policy and taxation. Groups of companies operating in agro-industrial complexes and agriculture have proven to be more mobile and adapt faster in unstable economic conditions due to the decentralization of legally free company members.

Courts, mining conflicts, and Adivasi rights: a case study from central India (2000–2022)

ABSTRACT Chhattisgarh, Jharkhand, and Odisha are home to 22 million Adivasis (indigenous peoples). In the neoliberal era, the Adivasis are being exploited due to an increased emphasis on resource extraction, compounded with weak institutional mechanisms to address Adivasi concerns. I examine the role of the higher courts in upholding Adivasis’ rights during mining conflicts, through analysis of 33 litigations resolved between 2000 and 2022. I find, with a 48.5% success rate, these litigations produce mixed results for the Adivasi communities. Despite a legislative shift sought from state sovereignty to shared sovereignty, there is a judicial inconsistency on claims against usurpation of Adivasi land without consent. During mining governance, the Adivasis are excluded from the decision-making process, but the courts do not encourage a polycentric approach to mining governance. Only at the stage of profit redistribution, where there are no competing claims, the courts ensure benefit-sharing of profits with the Adivasis.

Between Innovation and Resistance: The Role of Guilds in Early Modern Italian Ribbon Manufacturing.

The historiographical debate about the influence of guilds on economic development and innovation lacks consensus. Scholars are divided: some argue that guilds fostered a positive environment for technological innovation through privileges that ensured profits for inventors, while others underline the guilds' role in stifling innovation to protect their interests. This article undertakes a comparative analysis of ribbon manufacturing in early modern Italy, a sector known for its technology transfer across Europe. It finds that the nature of the guild and its specific privileges crucially determined technology transfer and innovation acceptance. In addition, the redistribution of profits within guilds was vital to the innovative process. The article concludes that the key to technology transfer and innovation lay in preserving the guilds' profit monopolies and internal stability.

Financial Strategy and Corporate Performance Growth of Selected Food and Beverages Manufacturing Companies in Nigeria

Aim/Objective: In the course of the study, the main objectives of the study was to determine the effect of financial strategy (strategy of investing in company assets, strategy of acquisition of capitals, strategy of redistribution of profit) on corporate performance growth (profitability, innovation, corporate culture attitude) of selected food and beverages manufacturing companies in Nigeria.
 Methodology: The four selected food and beverages manufacturing companies in Nigeria made up the study’s population. With a total number of 168 staffs, the study population involved both the middle and top management. The study adopted purposive sampling technique which is the deliberate choice of a researcher due to the qualities of information it possesses. Primary data was used for the purpose of this study. Regression analysis was also used for data analysis.
 Findings: The result of the analysis reveal that: (i) with the result of hypothesis one; the regression estimates results revealed that strategy of investing in company assets has significant effect on profitability (T-test = 1.922, p = 0.043). (ii) for hypotheses two, regression estimates results revealed that strategy of acquisition of capitals has significant effect on innovation (T-test = 2.973, p = 0.004). (iii) for hypotheses three, regression estimates results revealed that strategy of redistribution of profit has significant effect on corporate culture attitude (T-test = 1.447, p = 0.025).
 Research Limitations/Implications: Restrictions point to the limitations that analysts experience when conducting research. When analyzing the effect of financial strategy on corporate performance growth, the analyst experiences some limitations in this consideration, such as limited test measurement, etc.
 Originality/Value: No research was found regarding the financial strategy and corporate performance growth during the time period of 2023.
 Conclusion: The study concluded that there is a positive significant effect between financial strategy and corporate performance growth of selected food and beverages manufacturing companies in Nigeria.

The Accounting of the Result of the Financial Year and Its Components

Abstract The performance that companies achieve is valuable information for most users and is essential in a market economy, while the provision of this information on the results achieved by the company as a result of carrying out activities to accomplish the set objectives is based on the data and information presented in the company’s annual financial statements. The scientific approach aims to present the role and importance of the profit and loss account, as well as of the main elements that generate it, in accordance with current legal provisions and accounting standards. The main aim was to summarize the basic principles and the manner in which they are documented in the accounting records to calculate profit or loss and profit redistribution.

Energy price shocks, conflict inflation, and income distribution in a three-sector model

The paper presents a model of conflict inflation to investigate the distributional effects of energy price shocks. We argue that periods of high inflation are always periods of significant redistribution of income. We analyse how such redistribution occurs along two dimensions: between workers and firms and between sectors of the economy. To study the distributional outcomes of the recent inflationary episode, we build a three-sector model comprising a domestic energy sector which provides inputs for a goods and a services sector. The model is calibrated to US sectoral data with the Method of Simulated Moments. While energy prices are set internationally, non-energy prices and nominal wages are set by firms and workers, giving rise to conflicting claims over the distribution of income. We consider three shocks that trigger inflationary distributional conflict: an energy price shock combined with demand and supply shocks to the goods sector. We find that the recent inflationary episode constitutes a price-wage rather than a wage-price spiral. The combined shocks induce non-energy firms to raise prices, which undermines real wages, and redistributes income towards firms. The sectoral demand shift towards goods in combination with pandemic-related supply bottlenecks further raises mark-ups, accelerating inflation and leading to divergence in sectoral profit margins. We compare three anti-inflationary policies: redistributing windfall profits to workers, nominal wage restraint, and aggregate demand contraction through monetary or fiscal policy. The redistribution of profits via a windfall tax is most effective in reducing inflation without reinforcing reductions in employment and labour shares.

Models of the dynamics of maximal and optimal profits of a manufacturing enterprise implementing technological innovations

The published article presents new mathematical models that describe the dynamics of the development of manufacturing enterprises using innovative technologies. It is shown that the level of use of innovative technologies in an enterprise depends on dimensionless coefficients that describe the diffusion process of introducing technological innovations and affect the increase in output and cost reduction. The dependence of the enterprise's profit on the levels of production and transaction costs has been studied. It has been established that the formation of transaction costs arising from the search and processing of economic information, financing of negotiation procedures, conclusion of contracts with partners, protection of property rights and payment for the opportunistic behavior of employees and management of the enterprise, force the management of the enterprise to maximize not only the profit function, but also the target a transactional utility function that takes into account the redistribution of profits in the interests of the enterprise's management and for the implementation of socially-oriented programs. Dimensionless redistribution coefficients are calculated, which determine the size of the part of the profit that is used for non-production purposes. It is shown that in the presence of transaction costs, the limiting value of the enterprise's profit is not its maximum possible value, but its lower optimal value.

Nested Bilevel Energy Hub Bidding and Pricing With Price-Responsive Demand

The increasing interdependence among different energy systems has led to the development of the integrated energy system (IES), where the energy hub (EH) is a primary market player in the distribution-level energy market. In an EH, subsystems such as electric, natural gas, and heating systems coexist and are interdependent. This paper proposes an innovative bilevel strategic decision-making framework of an EH that maximizes profit in the energy market and simultaneously reallocates profit among EH subsystems through a dynamic pricing mechanism. In the upper level, the EH acts as a price maker in the day-ahead distribution electricity market for profit maximization. In the lower level, Nash-Bargaining-based profit redistribution is realized through bilateral pricing between energy subsystems in the EH, where the fairness and interests of individual subsystems are respected. The price-responsive load couples the profit maximization and profit reallocation problems. Case studies demonstrate that the proposed framework can effectively solve the bidding and pricing problem of an EH in a day-ahead market, and the cooperation within energy subsystems contributes to higher overall profit and better fairness for the EH subsystems.

Antecedents and consequences of islamic bank performance based on the maqashid sharia index

This study aims to obtain empirical evidence regarding the antecedents and consequences of performance based on the maqashid sharia index in Islamic banks in Indonesia. The maqashid sharia index in the literature and previous empirical research is limited to its use in the aspect of performance measurement only. This study seeks new insights into the antecedents and consequences of Islamic bank performance based on the Islamic maqashid index. The antecedent studied is the characteristics of the sharia supervisory board, while the consequences studied are Islamic social reporting. This study examines the effect of the sharia supervisory board on the maqashid sharia index in Islamic banks in Indonesia. In addition, this study also examines the effect of the maqashid sharia index on Islamic social reporting. The research sample is 11 Islamic banks in Indonesia within four years (2015-2018). This study found that the characteristics of the sharia supervisory board had a significant effect on the maqashid sharia index. The better the characteristics of the sharia supervisory board the higher the maqashid sharia index is. In addition, the maqashid sharia index has a significant effect on Islamic social reporting, meaning that the higher the maqashid sharia index, the better Islamic social reporting. The first implication is that it requires Islamic banks to pay attention to fair returns, avoid prohibited products and services, and eliminate harmful elements that result in injustice. The second implication is that it requires Islamic banks to seek to increase their profitability, redistribution of profits and welfare, and investment in the real sector.

Why do coffee farmers stay poor?

During more than five decades, different initiatives have been launched to improve the livelihoods of smallholder coffee farmers. While knowledge of the constraints for raising smallholder income is widely available, limited results have been reached by structurally strengthening the competitive position of smallholders in international commodity markets. This article provides an overview of current insights on the role of smallholders in coffee production, the organization of coffee transactions, and the distribution of value-added throughout coffee supply chains. Whereas major efforts have been made to increase prices, yields and investments with strategies focusing on certification and/or living incomes, these initiatives largely failed to lift coffee farmers out of poverty. Cash transfers funded by tax revenues and profit redistribution offer direct payment opportunities for raising coffee farmer expenditures and strengthening their livelihoods. This also requires a fundamental transformation in pre-harvest and post-harvest governance arrangements that shape farmer risk behavior and trust attitudes.

Coordination and Optimization of Supply Chain Considering the Double Fresh-keeping Effort of Supplier and 3PL

This paper takes a three-echelon supply chain consisting of a domestic supplier, an overseas retailer, and an overseas warehouse as the research object, and studies the decision-making and coordination problems of a single-channel three-echelon supply chain dominated by a cross-border e-commerce platform based on the dual preservation effort level of the supplier and the overseas warehouse, and also analyzes and compares the optimal decisions and profits of each member of the supply chain under the decentralized decision-making model and the centralized decision-making model. After exploring the infeasibility of wholesale price contract and wholesale price + cost-sharing contract, a wholesale price + cost sharing + revenue sharing hybrid contract is designed to optimize the coordination of the supply chain and finally examined and verified through arithmetic analysis. It is found that it is difficult to judge the overall utility of consumers under centralized decision-making, and the decisions made under decentralized decision-making are not optimal. Under the decentralized decision-making model, the wholesale price contract, and the wholesale price + cost-sharing contract can achieve supply chain coordination, but the contract will not be accepted because the former hurts the members' interests, and the latter reduces the overall profit. Therefore, a hybrid "wholesale price + cost sharing + revenue sharing" contract is designed to introduce profit redistribution and is shown to achieve perfect supply chain coordination.

Tehnološki razvoj i univerzalni osnovni prihod - od utopije do realnosti

This paper analyzes the idea of universal basic income, which implies a periodic monetary payment received by all members of the society, with no prerequisites. Most former viewpoints contained numerous utopian elements. Therefore, the main aim of this paper is to point to the reality of this idea and answer the question whether it is yet another in a series of utopias, or there are actual foundations for its realization today. Modern technological development opens the space for increasing production by excluding human labour from it and by increasing profits of production organizers, whereas an increasing number of workers face temporary periods of unemployment during their working lives. All of the above make the idea of universal mandatory income up-to-date. The text explains the attitude that technological development, through mechanisms of profit redistribution, opens the space for this idea to overgrow its utopian character and become reality. The prerequisite is that the surplus of wealth that goes to production organizers should be redirected to the rest of the population.

Study on Global Equity and Asteroid Mining

In this paper, we study the relationship between asteroid mining and global equity. Firstly, a comprehensive evaluation model of equity (CEME) is established. The entropy weight method is used to determine the weights of the seven indicators, and the tospsis algorithm is used to obtain the development indicators. In addition, the impact of changing the profit distribution conditions of asteroid mining on global fairness is discussed. Finally, in order to promote global fairness, we proposed the profit redistribution model (PRM).

CENTRAL BANKS DIGITAL CURRENCIES AND PROSPECTS FOR THE UKRAINIAN ECONOMY

The article is devoted to the study of the main directions of research on the introduction of digital money of the world's leading central banks. The paper analyze the experience of the central banks of Saudi Arabia and the United Arab Emirates in implementing a single digital dual-issue currency and cross-border payment system (Aber project). Also we found the Helvetia project, a joint experiment of the BIS Innovation Hub, SIX Group AG and the Swiss National Bank. The project provided issuance of a new wholesale digital currency by the central bank and can be classified as a private permissioned peer-to-peer network with hierarchical access to the ledger. Interesting for our study was the experience of creating a CBDC in Uruguay (E-Peso), where CBDC have been issued in form of unique digital banknotes of several denominations. The article considers the main prospects for the implementation of CBDC in Ukraine. The paper studies the use and legal status of electronic digital signatures in Ukraine. Today, only reporting to regulatory authorities and document flow between users is carried out using electronic digital signatures. CBDC and blockchain network can provide secure storage of information by data centers of regulatory authorities and a common operational space in the financial information channels. The blockchain network should be token-based, and service providers could use an account-based retail payment system. The article defines the main characteristics of token-based and account-based distributed ledgers. Attention is also paid to the anonymity of transactions in payment systems, protection of personal data and the cultural component of cash circulation. Most likely the introduction of CBDC will reduce the total amount of bank financing and banks need to consider how to respond to potential loss of deposit funding. The most likely changes associated with CBDC is the redistribution of profits that banks receive from cheap liabilities in favor of customers. This applies to the owners of operating accounts, on which banks usually charge symbolic interest and which users keep in a liquid form for making payments.

Cooperation between Sea Ports and Carriers in the Logistics Chain

In a modern economy, international trade is an important factor in the development of various regions. Shipping is one of the most important elements of the global supply chain. However, after the economic crisis of 2008, global shipping revenues plummeted. One way to restore profitability is the consolidation of shipping routes and the globalization of shipping lines. As container transport lines move to larger ships, the structure of the delivery route becomes a structure with intermediate points. This trend put forward higher demands on the port infrastructure, which aggravated the competition between regional ports, as well as ports that could degrade into a large cargo consolidation port. The economic advantage is enhanced by cooperation between shipping lines and ports. Thus, ports and shipping lines in the same supply chain can be mutually beneficial partners. The study analyses the effectiveness of horizontal and vertical cooperation between ports and carriers. As a source of information, a review of the literature on this issue, expert opinions, and statistical data is taken. Next, a mathematical model is built on the basis of cooperative game theory, and numerical analysis is carried out. The results show that the strategy of cooperation of shipping lines strongly depends on the situation with the supply and demand of vessels. A port that interacts with shipping lines will significantly reduce port charges, which creates the advantage of receiving more port requests. However, cooperation may lead to losses for the port, so a redistribution of profits is necessary to maintain the coalition.

Land, sheep, and market: how dependency on global commodity chains changed relations between pastoralists and nature

Land, sheep, and market: how dependency on global commodity chains changed relations between pastoralists and nature

The Capital Structure of Co-operative Firms: An International Comparative Study

Anecdotal evidence describes how co-operatives are facing a financial crunch, particularly since the economic crash of 2008. Co-operatives are considered to be at greater risk and less profitable than other companies because of the constraints on redistribution of profits and the choice to employ the most vulnerable workers. Moreover, in most countries, there are no specific policies or regulatory frameworks. Thus, the access public funds is hindered. Business, social and governance dimensions affects (mainly negatively) their access to external finance. The role of external financing becomes pivotal for initial success and further development of the co-operative. However, these firms may be able to count on internal sources, including capital from the social base and from management. Unlike other firms, the use of internal sources is not related to the redistribution of profits to owners. The balance between internal and external sources is a focal discussion point. This paper aims to analyse the composition of the capital of co-operatives. In particular, it focusses on the share of internal and external financing and tries to understand the similarities and differences among various typologies of co-operatives established in different countries and operating in different industries.

Predicting the dynamics of the maximum and optimal profits of innovative enterprises

This article proposes new economic and mathematical models of the dynamics of the development of industrial enterprises that introduce innovative technologies. The level of attraction of innovative technologies by the enterprise is set by dimensionless coefficients of innovations, which depend on time and affect the increase in output and decrease in costs. The influence of not only production costs, but also transaction costs on the size of the enterprise’s profit was investigated, the sources of which are the forced costs of searching and processing economic information, financing negotiation procedures, developing and concluding contracts with partners, organizing the protection of property rights, paying for the opportunistic behavior of employees and enterprise managers, etc. It is found, that transaction costs force to maximize not only the profit function of the enterprise, but also the target transaction utility function, which takes into account the redistribution of profits in the interests of the enterprise management and for the implementation of socially oriented programs. The size of the part of the profit spent in the interests of the enterprise management and for the implementation of socially oriented programs is set by dimensionless redistribution coefficients. It is shown, that in the presence of transaction costs, the enterprise, instead of the maximum value of profit, achieves a lower optimal value of profit.

A comparison study on trading behavior and profit distribution in local energy transaction games

With the increasing integration of distributed energy resources, localized peer-to-peer energy transactions are receiving more attention since they could absorb more distributed renewables locally and stabilize the power grid. To better study the trading behavior and provide guidance for a viable local market design, different game-theoretical frameworks including cooperative and non-cooperative games are established and compared in this study. For the cooperative grand coalition, the maximum social welfare is guaranteed, the Shapley value and bargaining based approaches are implemented for further profit redistribution. It is shown that the asymmetrical bargaining power can be critical in the final payment clearing and it is equivalent to the Shapley value allocation if prosumers bargain based on their marginal contributions. Non-cooperative trading is formulated by using a Stackelberg bilevel model in which the upper level has the privilege in internal price setting. However, system optimum is not obtained due to competition, and the selfish leader could take away 89% of the collective benefit by price-gap based arbitraging. Aiming for a long-lasting trading market, a virtual benevolent leader and a uniform price structure in which purchase price equals selling price are tested. Experimental results indicate that maximum social welfare and a fairer profit allocation can be achieved with a uniform price structure, regardless of the selfish or benevolent attitude.