Risk-bearing Capacity Research Articles

Challenges Experienced by Women in Accessing Loan from Women Development Fund in Arusha: A Case of Arusha District Council

Various economic empowerment programs and strategies have been introduced to improve the welfare of marginalized groups, particularly women. One such initiative is the Women Development Fund (WDF) in the Arusha District Council, Tanzania, which was established to provide financial support to women in the region. However, despite its aims, women often face significant challenges when trying to access loans from the fund. This study aims to explore the specific challenges women encounter when seeking loans from the WDF in Arusha District Council. A sample of 60 women beneficiaries was selected as respondents for this study. Data collection methods included household surveys, with community development officers serving as key informants through interviews. Both qualitative and quantitative data were gathered and analyzed, with findings presented in frequency tables and percentages. The results revealed that women beneficiaries faced multiple challenges in accessing loans. Loan delays were the most frequently reported issue, followed by other obstacles such as excessive bureaucracy, low risk-bearing capacity, sexual harassment, financial bribery, and erotic bribery. These barriers hinder women’s ability to secure the financial resources needed to improve their economic standing. Based on these findings, the study recommends that local government authorities, including the Arusha City Council, implement feedback mechanisms to address loan processing issues and support women beneficiaries more effectively. Additionally, women themselves are encouraged to improve their financial literacy and understanding of financial products and services, particularly those related to WDF loans, to increase their access to and success with such programs.

Disclosure and Dynamic Risk Sharing with a Large Shareholder

ABSTRACT We study the effects of disclosure in a dynamic market with imperfect competition. The supply of an asset is determined by a large shareholder with price impact, who trades slowly to diversify away from concentrated ownership. Small investors provide capital and thus risk-bearing capacity to the market. Although it is well known that disclosure impedes risk sharing by shifting risk before future trading opportunities, we show that disclosure, at the same time, can enhance risk sharing by promoting more trades. Resolving this tradeoff, an interior level of disclosure quality maximizes the small investors’ surplus as well as the total surplus, but minimizes the large shareholder’s surplus. Further, efficient disclosure policies feature increasing quality over time. JEL Classifications: D80; E21; G12; L13; M41.

Analysis of Tax Incentives, Risk Taking and R&D Investment: Evidence Based on Manufacturing

Although China is a big manufacturing country, its manufacturing industry is "big but not strong". In recent years, in order to encourage manufacturing enterprises to invest resources in innovation projects, preferential tax policies and government subsidies have become important regulatory means. However, due to the different risk bearing capacity of enterprises, enterprises also have different attitudes toward research and development (R&D) investment. In order to test the relationship between the four, this paper takes listed manufacturing companies in China from 2015 to 2020 as samples to empirically analyze the impact of tax incentives on R&D investment, as well as the mediating and moderating effects of risk bearing capacity and government subsidies between them. The results show that tax incentives can significantly promote R&D investment; The risk bearing capacity of enterprises plays a partial mediating role between tax incentives and R&D investment. Government subsidies play a positive regulating role between tax incentives and R&D investment.

Retirement satisfaction as a quantified outcome of superior financial literacy: An empirical investigation

The purpose of the study is to create a viable and customised retirement planning system with financial literacy as the driver to achieve retirement adequacy and retirement satisfaction, taking into account the increasing financial needs of retirees. Perception regarding retirement choices necessitates sufficient self-efficacy to implement retirement portfolio decisions. Despite transformation in the way retirement is looked at, planning for retirement has taken a backward stride as individuals concentrate on their present needs rather than a holistic approach to life. The study implemented an online self-administered questionnaire for 770 participants using convenience sampling from India’s two major IT hubs, Bangalore and Chennai. The data samples were analysed using Partial Least Squares Structural Equation Model (PLS-SEM). The study evidenced a strong association between superior financial literacy and retirement planning and identified five essential financial behaviours, such as savings attitude, borrowing pattern, investment decision, insurance allocation, and spending behaviour, that strongly influence individual retirement planning. These behaviours lay the foundation for retirement readiness, lowered debt anxiety, and greater risk-bearing capacity. The results further reveal that individual’s satisfaction levels are significantly influenced by retirement adequacy. Therefore, it is imperative to formulate a well-structured retirement plan to attain retirement adequacy and satisfaction.

Price elasticity of demand and risk-bearing capacity in sovereign bond auctions

Abstract The paper uses bids submitted by primary dealer banks at auctions of sovereign bonds to quantify the price elasticity of demand. The price elasticity of demand correlates strongly with the volatility of returns of the same bonds traded in the secondary market but only weakly with their bid-ask spread. It predicts same-bond post-auction returns in the secondary market, even after controlling for pre-auction volatility. The evidence suggests that the price elasticity of demand is associated with the magnitude of price pressure in the secondary market around auction days and proxies for primary dealer risk-bearing capacity.

Directors' and Officers' Liability Insurance and the Digital Transformation of Enterprises: Based on the Empirical Evidence of Listed Companies in China from 2011 to 2021

Amidst the wave of the digital economy, numerous enterprises have commenced the process of digital transformation to address market challenges and fluctuations, as well as to pursue sustainable growth. Directors' and officers' liability insurance (D&O insurance), being an essential instrument of corporate governance, necessitates an empirical investigation to unravel its influence on enterprises' digital transformation. This study selects Shanghai-Shenzhen A-share listed companies from 2011 to 2021 as research subjects to examine the impact of D&O insurance procurement on enterprises' digital transformation and its underlying mechanisms. The findings reveal that the procurement of D&O insurance significantly fosters the progress of enterprise digital transformation, and this conclusion remains robust after employing a series of robustness tests, including the instrumental variable method and DIGT. The mechanism analysis indicates that by elevating the risk-bearing capacity of enterprise managers, the management efficiency of enterprises can be enhanced, thereby motivating supervisory executives to augment the quality of internal control and facilitate the digital transformation of enterprises. Further examination discloses that executive equity incentives and executive responsibility insurance possess complementary effects in promoting enterprise digital transformation, making the subscription of executive responsibility insurance a pivotal factor in enhancing the effectiveness of enterprise digital transformation and fostering high-quality economic development.

The Flight to Safety and International Risk Sharing

We study a business cycle model of the international monetary system featuring a time-varying demand for safe dollar bonds, greater risk-bearing capacity in the United States than the rest of the world, and nominal rigidities. A flight to safety generates a dollar appreciation and decline in global output. Dollar bonds thus command a negative risk premium, and the United States holds a levered portfolio of capital financed in dollars. We quantify the effects of safety shocks and heterogeneity in risk-bearing capacity for global macroeconomic volatility, US external adjustment, and policy transmission, as of dollar swap lines. (JEL E32, E43, E44, E52, F44, G11, G15)

The study of supply chain finance on enterprise risk bearing ability

In the context of the continuous development of the digital economy, studying the role of supply chain finance in mitigating supply chain risks and enhancing enterprise risk-bearing capacity is of great significance for promoting sustainable development. This study uses data from 2007 to 2019 as samples to empirically analyze the impact of supply chain finance on enterprise risk-bearing capacity. The research results show that supply chain finance plays a positive role in improving enterprise risk-bearing capacity. Mechanism tests reveal that supply chain finance functions through alleviating financing constraints and enhancing innovation capabilities in influencing enterprise risk-bearing. Further exploratory research finds that the influence of supply chain finance on enterprise risk-bearing is more pronounced in state-owned enterprises, while executive incentives do not show significant differences. These findings highlight the important role of supply chain finance in mitigating supply chain risks and enhancing enterprise risk-bearing capacity, providing valuable insights for sustainable development.

Rimagined upcycling

Learning outcomes Upon completion of the case study, the students will be able to apply business upscaling strategies to an upcycling social enterprise that is embracing a circular economy approach by using the Ansoff growth matrix; to analyze strategies for transition to circularity using the butterfly diagram tool for both business and personal use; to indulge in upcycling exercises for a used product of their choice, not only unleashing their creative potential but also contributing to an idea that might get them to win a contest; to analyze different operational problems and efficiency opportunities that arise when a company takes on social and environmental causes as a business opportunity; and to strategize how a social enterprise can be sustained and made for-profit by applying business strategies. Case overview/synopsis This case study covers the concepts of upcycling under the gamut of circular economy, a concept that has become more of a strategy to sustain and survive in today’s world. This case is about Rimagined, an upcycling company that could be a model for circular ideas and upcycling of stuff. This case study narrates the growth and the challenges faced in upcycling and encourages students to ideate a new design for any upcycling item of their choice. This case will also make students strategize the expansion plan for Rimagined. Shailaja Rangarajan is the protagonist of this case study who started this social enterprise to make a difference and do her bit. Sustaining a social enterprise requires business acumen and risk-bearing capacities like any other business. Rangarajan was facing the dilemma of expansion and was trying out several feasible options. Rimagined had been unable to attract investors because their expectations of quick returns could not be immediately fulfilled. Investors focused more on waste management as an industry and not on upcycling as a separate area of work. Complexity academic level This case study is suitable for students of MBA or executive MBA level. Specifically, this case study can be used in business strategies and circular economy courses. Supplementary materials Teaching notes are available for educators only. Subject code CSS 4: Environmental management.

Time Variation in the News–Returns Relationship

Abstract The speed of stock price reaction to news exhibits substantial time variation. Higher risk-bearing capacity of financial intermediaries, lower passive ownership of stocks, and more informative news increase price responses to contemporaneous news; surprisingly, these interaction variables also increase price responses to lagged news (underreaction). A simple model with limited attention and three investor types (institutional, noninstitutional, and passive) predicts the observed variation in news responses. A long–short trading strategy based on news sentiment earns high returns, which increase when conditioning on the interaction variables. The interactions we document are robust to the choice of news source.

NEXUS BETWEEN INVESTOR’S RISK BEARING CAPACITY AND INVESTORS' CHOICE OF PORTFOLIOS

An attempt is made through this study to identify the risk bearing capacity of retail investors and to evaluate how it affects the portfolio choices of those investors. In addition to examining the variations in investment avenues that investors choose to include in their portfolios due to their risk-bearing capacity, this study aims to investigate the influence of various demographic characteristics on risk bearing capacity. The current study was conducted among individual investors in Kerala by conducting a survey among 120 individual investors in Kerala using a structured questionnaire. The results of this study showed that an investors ability to take on risk depends on their gender, line of work, and monthly income. Further it was found that investors who are ready to take high risk invests more in real estate and shares compared to other risk categories. Investors who are moderate to high risk takers made their investment in mutual funds. All other investors made their investments in safe avenues like bank deposits, postal savings, provident fund, insurance, etc. KEYWORDS: Investors, investments, portfolio, risk, risk-bearing capacity

ADOPTION OF RECOMMENDED GUAVA PRODUCTION PRACTICES

Present research was conducted in Kaurihar block of Prayagraj district of U.P. The purpose of the study was to assist the socio-economic profile of the guava growers and the adoption regarding the recommended guava production practices. Kaurihar block was purposely selected because of the maximum production. From the block total 20 villages were randomly selected for the study, 6 respondents were selected from each village thus the total respondents 120. The results show that majority 61.67 per cent of the respondents belongs to medium level of progressiveness, 66.67 percent belongs to medium level of risk bearing capacity and 49.17 per cent of the respondent belongs to medium level of socio-economic status. The respondents were having medium level of adoption in improved varieties, propagation methods, row-row and plant-plant distance, NPK ration, irrigation, pruning of plant and packaging. And low level of adoption in bahar treatment, intercropping, high density planting, control measures of diseases, insecticides application, mulching, training of plant and post-harvest. Majority 56.67 per cent of the respondent has medium level of adoption. Association between socio-economic profile and adoption of guava cultivation source of information 0.95, annual income 0.87, social participation 0.86 and extension contact 0.81 shows strong and positive correlation.

The Knowledge of Improved Onion Production Practices of Farmers in Gaya, District in Bihar

A study was conducted in Gaya District of Bihar during the 2022-23 period to assess the level of knowledge among farmers regarding improved onion production practices. The study selected a total of 120 respondents from five villages within the Bodhgaya block, based on the high concentration of onion growers in the district. The data was collected through personnel interviews using a pre-structured interview schedule and subsequently analyzed using appropriate statistical methods. The findings revealed that the majority of respondents (62.5%) belonged to the middle age range, and 43.33% of them had marginal land holdings. Most respondents had a moderate level of extension contact, scientific orientation, risk orientation, and economic motivation. Additionally, 64.17% of the respondents exhibited a medium level of knowledge regarding onion production practices. The respondents displayed a good understanding of topics such as soil types, ploughing, farmyard manure (FYM) application, onion varieties, seed treatment, sowing time, nursery transplanting, seed rate, weeding and hoeing, and the suitable season for growing and harvesting onions. However, they had relatively less knowledge about seed treatment and nursery transplanting. Furthermore, factors such as age, educational qualifications, family size, housing patterns, land holdings, annual income, extension contact, source of information, scientific orientation, economic motivation, and risk-bearing capacity showed positive and significant correlations with the knowledge levels of onion growers. In summary, the study demonstrated that farmers in the Gaya District of Bihar had varying levels of knowledge regarding improved onion production practices. While they possessed a good understanding of certain aspects, there were areas where their knowledge could be further enhanced.

A Study on the Knowledge about Improved Sugarcane Production Technology in Basti District of Uttar Pradesh, India

This study was undertaken to assess the knowledge of farmers towards improved Sugarcane production technology in Basti district of Utter Pradesh, India. The data were collected through pre-tested interview schedule form for 120 respondents who were selected randomly.. Statistical analysis was conducted after preliminary data cleaning. The study revealed that a) most respondents were middle aged with 56.66 percent , b) 38.38 percent respondents had marginal land holding, c)The maximum number of respondents having medium level scientific orientation, mass media exposure, extension contact and d) 45.00 percent of the respondents had medium level of knowledge about sugarcane production technology. Respondents had knowledge about field preparation, varieties, time of sowing and harvesting. However, and they had less knowledge about seed treatment, yield of sugarcane par ha etc. Other attributes such as age, education, caste, annual income, source of information, scientific orientation, mass media exposure, risk bearing capacity and extension contact were positively and significantly correlated with knowledge of sugarcane production technology.

Sustainable Innovation and Firm Performance Driven by FinTech Policies: Moderating Effect of Capital Adequacy Ratio

This study empirically investigated the role played by government policy in the financial industry in promoting sustainable innovation, business performance, and risk management. An original dataset, comprising data from the Taiwan Economic Journal (TEJ), Taiwan Patent Search System, and company annual reports from the period 2015–2019 was used to analyze the effects of government policy on the financial industry in Taiwan. The research results showed that a firm’s sustainable commitment is conducive to its business growth and does not increase its risk in the financial industry. The financial industry can report on FinTech news that highlights business growth, while companies with high capital adequacy rates are better equipped to manage the risks associated with innovation commitment. Financial companies are suggested to engage in sustainable innovation and thus improve their profitability. In addition, policymakers should mandate that financial companies increase their capital adequacy ratios, improve their risk-bearing capacity, and maintain financial market stability.

Pricing the Pandemic: Evidence from the Bond Market in China

ABSTRACT This study investigates whether and how the pandemic is priced in the bond market in China. Using the city-level COVID-19 cases on a daily basis, we find a significant positive relationship between the pandemic outbreak and corporate credit spreads, implying that investor risk perception on pandemic exposure attracts a premium. Consistent with the default risk channel, corporate financial resilience alleviates pandemic pricing. Information asymmetry and tail risk can amplify the pricing effect because of reduced investor risk-bearing capacity. These findings are robust in addressing endogeneity concerns. We contribute to the emerging literature on the pandemic effect on credit markets.

The Overnight Drift

Abstract This paper documents that U.S. equity returns are large and positive during the opening hours of European markets. These returns are pervasive and highly economically and statistically significant. Consistent with models of inventory risk, we demonstrate a strong relationship with order imbalances at the close of the preceding U.S. trading day. Rationalizing unconditionally positive “overnight drift” returns, we uncover an asymmetric reaction to demand shocks: market sell-offs generate robust positive overnight reversals, while reversals following market rallies are much more modest. We argue that demand shock asymmetry can arise in inventory management models with time-varying market maker risk-bearing capacity. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Risk bearing capacity of farmers and their coverage under insurance - A study of national agriculture insurance scheme

Risk bearing capacity of farmers and their coverage under insurance - A study of national agriculture insurance scheme

The Perfect Storm: Bank of Israel's Forex Interventions, Global Banks' Limited Risk-Bearing Capacity, Deviations from Covered Interest Parity, and the Impact on the USD/ILS Options Market

The Perfect Storm: Bank of Israel's Forex Interventions, Global Banks' Limited Risk-Bearing Capacity, Deviations from Covered Interest Parity, and the Impact on the USD/ILS Options Market

Optimal order execution under price impact: a hybrid model

In this paper we explore optimal liquidation in a market populated by a number of heterogeneous market makers that have limited inventory-carrying and risk-bearing capacity. We derive a reduced form model for the dynamics of their aggregated inventory considering a proper scaling limit. The resulting price impact profile is shown to depend on the characteristics and relative importance of their inventories. The model is flexible enough to reproduce the empirically documented power law behavior of the price impact function. For any choice of the market makers characteristics, optimal execution within this modeling approach can be recast as a linear-quadratic stochastic control problem. The value function and the associated optimal trading rate can be obtained semi-explicitly subject to solving a differential matrix Riccati equation. Numerical simulations are conducted to illustrate the performance of the resulting optimal liquidation strategy in relation to standard benchmarks. Remarkably, they show that the increase in performance is determined by a substantial reduction of higher order moment risk.