Capital Share Research Articles

Macroeconomic Impact of Foreign Remittances on Afghanistan's Agriculture Sector

The study delved into the shock of foreign remittances to Afghanistan's agricultural industry, which accounts for 37% of the fiscal year's budget. It utilizes a computable general equilibrium model and social accounting matrix to evaluate the short-term macroeconomic responses of 2018 foreign remittance changes using GAMS software. The research explores eight scenarios based on percentage changes in foreign remittance, comparing Afghanistan's actual foreign remittance values to a baseline scenario. The results investigated a correlation between domestic production in agriculture sub-sectors and foreign remittance variables. Scenario H depicts swelling percentages for domestic production of cereals, fruits, vegetables, livestock, and opium, whereas scenario D illustrates declining percentages. Contracted remittances decline prices, while scenarios with enhanced remittances upsurge the purchasing power of agricultural products, particularly cereals. Dropping foreign remittances leads to lower labor and capital share in all agriculture sectors; however, soaring remittances boost agricultural purchasing power. Household consumption drops in all agricultural sectors except cereals due to a fall in foreign remittances. The study recommends that the government boost investment in the agriculture sector, use skilled immigrants as scientific capital, and encourage migrant investors to invest in sustainable agriculture to promote sustainable consumption.

Do climate change policies affect labour market distortions? Empirical evidence from China's low-carbon city pilots

ABSTRACT To mitigate climate change while ensuring that the substantial benefits of a green economic transition are widely shared, the concept of a just transition has emerged as a pivotal element in climate strategies. Although the effectiveness of climate policies has been a subject of ongoing debate, the integration of just transition principles is often overlooked as a key component. This study employs China’s Low-Carbon City Pilot policy (LCCP) as a quasi-natural experiment and uses a time-varying difference-in-differences (DID) methodology to assess the impact of LCCP on wage distortions within firms. Using data from listed companies between 2006 and 2022, our analysis shows that the low-carbon policy itself may be a source of inequity, disproportionately benefiting capital at the expense of labour, thus exacerbating wage distortions and preventing labour from receiving fair compensation. This inequity undermines the principles of a just transition, as the allocation of policy resources tends to favour large firms, enhancing their pricing power and diminishing labour market flexibility. The economic outcomes of LCCP are mixed: while it accelerates the growth of capital share, it also leads to an unequal distribution between capital and labour. Furthermore, our exploration of the role of export trade in mitigating these distortions reveals that exports actually widen the disparity in wage distortions. Our study underscores the urgent need to prioritize equity in climate policies and improve labour allocation efficiency within climate action frameworks. We aim to provide decision-making support for the design and implementation of more equitable low-carbon policies in developing countries.

The Influence of Transformational Leadership and Organizational Justice on Innovative Work Behavior: the Mediating Role of Psychological Capital and Knowledge Sharing

Innovative work behavior is every Civil Servant (PNS) must have to encourage individuals to produce new thoughts, methods and work processes that can be used to increase organizational efficiency and effectiveness. Research on innovative work behavior for civil servants still needs to be widely researched, especially in developing countries. For this reason, this research aims to identify the influence of transformational leadership, organizational justice, psychological capital, and knowledge sharing on innovative work behavior. Data collection was carried out in a single cross-sectional using purposive sampling. The research sample was obtained from Civil Servants who work at State Institutions of Government in Indonesia. The data was processed using Structural Equation Modeling (SEM) with the Partial Least Square SEM (PLS-SEM) with 385 respondents. The results of this study prove a positive and significant relationship between transformational leadership, organizational justice, psychological capital, and knowledge sharing on innovative work behavior. In addition, empirical results show that psychological capital and knowledge sharing can partially mediate the relationship between transformational leadership and organizational justice on innovative work behavior. State Institutions of Government are expected to receive input and suggestions regarding the implementation of leadership and organizational policies so that employees have a positive psychology and a desire to share knowledge and skills so that they can create new ideas as organizational innovations.

Environmental Discourse and Firm Value: Evidence From Conference Calls

We examine environmental discourse in conference calls and the relation between this discourse and firm value. We measure the amount of environmental discourse as the frequency count of environmentally-related topics in the transcripts of conference calls. We argue that greater environmental discourse in conference calls indicates firms’ prioritization of environmental issues. Evidence indicates that greater amounts of environmental discourse are associated with lower share price and higher cost of capital, which we interpret as reflecting the relatively higher costs of environmentally responsible operations in excess of firm-specific benefits. Additional analysis examining general environmental, social, and governance (ESG), especially social and governance, discourse shows that it is associated with lower cost of capital and higher share price, suggesting that prioritization of social and governance issues does not imply higher operational costs and indeed may signal firm-specific value creation.

Foreign capital in neo-structuralism: The subordinate internationalisation of Latin America

This article analyses the subordinate internationalisation of Latin American economies based on the foreign capital understanding in the Latin American neo-structuralism. We discuss the theoretical foundations of this tradition to examine the economic consequences of foreign capital share in the productive structure of these countries after liberalisation. We also identify new forms of susceptibility of Latin American economies through foreign dominance in domestic economic activities. There is an ambiguity in the role of foreign capital, which requires control and coordination to flourish. The State intervention is important to i) enable a positive insertion into global value chains, ii) to foster industrialisation, iii) to mitigate adverse effects of financial flows, and iv) to encourage investments against exogenous cyclical effects.

Determining the leaders of Ukraine’s insurance market based on the adaptation of the DEA method

The escalating wartime risks in Ukraine has led to a rapid reduction in insurance coverage in life and non-life segments. The purpose of the study is to rank Ukraine’s insurance companies based on an adaptation of the DEA method to the insurance market conditions. The study utilized the Supervisory Statistics of the National Bank of Ukraine as data. The study also used ranking of insurance companies based on technical efficiency criteria. The output indicators include the profitability of total capital (Output1) and the occupied share of the insurance market (Output2). The input indicators comprise the volume of total assets of insurers (Input1), the share of equity capital in assets (Input2), the level of gross payments (Input3), and the level of payments to insurance reserves (Input4). The ranking of insurance companies is based on minimizing the distance of each from the bounds of technical efficiency by solving a set of optimization problems. Based on the modeling results, a list of market leaders (7 companies) was formed for the end of the third quarter of 2023. They served nearly 37% of the insurance market in Ukraine, accumulating 41.5% of the total assets of this financial market sector. So, the primary issue for insurance companies is the loss of solvency due to the absence of adequate levels of insurance reserves. Therefore, priority measures should include strengthening regulatory constraints in this financial market segment to facilitate its qualitative renewal.

Pretpostavke za povećanje osnovnog kapitala iz neto imovine (pretvaranjem neraspoređene dobiti ili rezervi u osnovni kapital) društva s ograničenom odgovornošću

The increase in the share capital from the funds of the limited liability company represents a nominal increase in the share capital, which is carried out by converting retained profit or dedicated reserves into share capital. The main economic purpose of increasing the basic capital from the company’s assets is to strengthen the company’s creditworthiness, which is achieved by fully or partially tying free accounting assets (retained profit or reserves) to the share capital. Before implementing this method of increasing the share capital, it is necessary to fulfil certain legal and accounting assumptions. The focus of the analysis in this paper refers to the fulfilment of the legal and accounting assumptions for converting retained profit and reserves into share capital and the limitations for implementing this way of increasing the share capital of a limited liability company. In addition to the above, we single out as particularly important considerations related to reserve assets, in relation to which there is a very modest regulation in the Serbian Law on Business Companies.

The influence of cost of debt, cost of equity and weighted average cost of capital on dividend policy decision: evidence from non-financial companies listed on the Frankfurt Stock Exchange

Non-financial companies listed on the Frankfurt Stock Exchange face considerable difficulties due to expensive funding and the need to make complex decisions about their capital structure. These problems impact their judgments about dividend policy, resulting in ambiguity and possible inefficiency. This study draws on the bird-in-hand theory to investigate the influence of the cost of capital on dividend policy decisions among non-financial firms listed on the Frankfurt Stock Exchange, focusing on 227 companies from 2005 to 2022. The data for this study were sourced from Thomson Reuters Datastream. Employing the common shock autoregressive distributed lag (CS-ARDL) and two-step generalized method of moments (GMM) estimations, findings reveal that the cost of debt consistently negatively impacts dividend payouts and coverage ratios. In contrast, the cost of equity has an insignificant effect. Conversely, the weighted average cost of capital positively influences dividend payouts and coverage ratios but negatively influences dividend yield. All the findings supported the bird-in-hand theory except for the negative impact of WACC on dividend yield. These insights highlight the importance of considering the cost of capital and market share dynamics in dividend policy formulation. Firms should prioritize efficient debt management to sustain dividend distributions, and aligning dividend policies with overall capital structure management is crucial in this regard, providing a sense of reassurance and confidence to the firms and their stakeholders. This study provides valuable guidance for financial decision-makers navigating dividend-related strategies within corporate environments.

Legal regime of a share in the charter capital of a limited liability company

Based on the analysis of Ukrainian legislation and legal doctrine, the article examines the legal regime of a share in the authorised capital of a limited liability company. The necessity of considering a share in the authorized capital in two senses is substantiated: economic and legal. According to the first meaning, such a share expresses a part of the value of the company’s property and gives a person the opportunity to dispose of the company's capital (assets). However, from a legal point of view, there is an insurmountable obstacle to this understanding – the status of a limited liability company as an independent participant in civil relations, which owns such property, and property separation is one of the features that characterises it. The opinion that a share in the authorised capital of a limited liability company does not coincide with the concepts of “corporate rights” or “property rights” is supported, it is an independent tradable object, but with a specific legal regime, in particular, it cannot be the object of other limited property rights, but it is such a share (and not corporate rights) that can be the object of property rights. It has been proved that: 1) the legal nature of a share should be characterised through the legal nature of the powers of a limited liability company participant; 2) such powers constitute a single and indivisible set of corporate rights which are recognised as a separate category of rights, along with obligatory and property rights; 3) the legal nature of corporate rights is of a comprehensive nature, which primarily consists of a combination of the principles of absoluteness and relativity; 4) the definition of a share only through the shareholder's rights is not justified, since the shareholder's rights are inextricably linked to his/her obligations; 5) a share as an object of civil rights is “other property”, not “property rights”.

Tourism-Driven Economies and Income Disparity: Insights From a Regression Discontinuity Design

This paper aims to answer two questions: (1) Does overtourism incline countries to favorise the capital asset holder instead of workers in income distribution? (2) Does income inequality come hand in hand with overtourism? Employing Kaldor's theory of income distribution, this study adapts its theoretical framework to assess countries with a specialization in tourism. The analysis encompasses data from 115 developed countries over the period of 2000 to 2019. A Regression Discontinuity Design (RDD) methodology is utilized for the empirical investigation, categorizing key variables based on the exposure of a country's unit to a tourism-focused developmental strategy. The study reveals that adopting overtourism as a developmental strategy has led to increased inequality, characterized by a rising capital share and a declining labor share over time. Evidence supporting these findings is presented through both parametric and non-parametric Regression Discontinuity Design (RDD) analyses. Robustness checks and placebo tests corroborate these results.

Composite expectile estimation in partial functional linear regression model

Recent research and substantive studies have shown growing interest in expectile regression (ER) procedures. Similar to quantile regression, ER with respect to different expectile levels can provide a comprehensive picture of the conditional distribution of a response variable given predictors. This study proposes three composite-type ER estimators to improve estimation accuracy. The proposed ER estimators include the composite estimator, which minimizes the composite expectile objective function across expectiles; the weighted expectile average estimator, which takes the weighted average of expectile-specific estimators; and the weighted composite estimator, which minimizes the weighted composite expectile objective function across expectiles. Under certain regularity conditions, we derive the convergence rate of the slope function, obtain the mean squared prediction error, and establish the asymptotic normality of the slope vector. Simulations are conducted to assess the empirical performances of various estimators. An application to the analysis of capital bike share data is presented. The numerical evidence endorses our theoretical results and confirm the superiority of the composite-type ER estimators to the conventional least squares and single ER estimators.

The Influence of Equity Incentive on Corporate Debt Default Risk

As researchers show more interest in debt default risk, work on influencing factors of this risk is put a particular emphasis. Because risk preference of management and corporate financial condition cannot be explained by their traits perfectly, this paper has argued association between equity and debt default risk. Selecting 323 listed enterprises as sample, the study uses descriptive analysis and multiple linear regression analysis to determine the relationship of these two indicators. According to the analysis results, large proportion of equity incentives to the total share capital has passive impact on financial condition. It brings heavy credit burden to companies while large proportion of managerial ownership can decrease debt default risk and promote the stability of financial system. This paper strengthens the idea that there is reasonable and significant association between equity incentive and debt default risk. It also proves that different measuring factors of equity incentive have different directions effects on corporate debt default risk.

Challenges in municipal solid waste management-A comparative case study between selected metropolitan areas Brazil and Portugal

This research was aimed at analysing the management of urban solid waste in Brazil and Portugal, with an emphasis on the metropolitan areas of Lisbon and Porto and the Recife/PE/Brazil Metropolitan Area. An exploratory research project was conducted with a survey of secondary data, technical visits to institutions and companies in the waste sector, and a comparative analysis of the situation in the areas studied. In Portugal, the management of municipal solid waste in the period before 1995 was predominantly municipal, which evolved into a consortium of municipalities with the entry of Portugal into the European Union in 1986. The country adapted its legislation to the EU Directives, and from 1997, the waste sector suffered a boost with the adoption of the first Strategic Plan for Urban Solid Waste, which was constituted by 40 public waste management companies that associated several municipalities, and some of them also had the state's share in their share capital. However, due to the lack of economic scale of some of these companies, there were mergers, and at the end of 2010, the total number of companies was 23, grouped into entities of a multi-municipal character (when the state enters into the composition of the share capital of the society) and inter-municipal (only constituted by municipalities), currently responsible for the management of waste in Portugal. In Brazil, the National Solid Waste Policy was approved by law in 2010, establishing lines and guidelines for integrated waste management with defined time targets. However, it is not yet fully implemented because about 45% of municipalities still dispose of waste at dumping sites. With regard to the municipalities of the Recife Metropolitan Area, the disposal of waste has already been environmentally appropriate since 2019. According to 2022 data from Brazilian Association of Public Cleaning and Special Waste Companies, the average rate of selective collection in the country is approximately 4%. The research results reveal that Brazil needs to increase selective collection, eliminate approximately 3,600 existing landfills and finally regulate urban solid waste services. While in Portugal, management is well organized as a result of the implementation of PERSU in 1995, there are still challenges to be overcome in order to meet the goals set in the New Legislative Framework, which have not yet been achieved. The specificities and the context are obviously different between the countries, drawing attention to the difference in effectiveness in the implementation of public policies edited by the legal diplomas of the two countries for solid waste management.

Institutional Ownership and Concentration of Capital in Pharmaceutical Companies: Evidence from Iran

Background: Institutional owners influence the direction of policy and the performance of owned companies. This research was motivated by the presence of pharmaceutical companies in the Tehran Stock Exchange and the uncertainty surrounding the extent and influence of institutional owners on the policy direction and performance of the companies. Methods: This was a descriptive-analytical and cross-sectional study. The descriptive phase of the study involved measuring sales figures, market value, and market share of pharmaceutical companies listed on the stock exchange. In the analytical phase, the network of shareholders' relationships was analyzed with Gephi version 0.1 and Microsoft Excel version 2016, followed by the calculation of the capital concentration index and market share. Results: Estimates indicated that approximately 45% of the pharmaceutical companies in Iran were publicly traded in stock exchange. In 2020, the total value of these companies in the Iranian capital market reached 9.79 billion USD. Out of this amount, 45% (equivalent to 4.4 billion USD) was offered in Tehran Stock Exchange. The concentration of final shareholders, with a Herfindahl–Hirschman index(HHI) index of 0.036, signified a monopolistic competition market. On the other hand, the pharmaceutical capital market could be classified as an oligopoly market (with a value of 58.3) when analyzing only the direct shareholders at level 2. Additionally, the six main holding companies at this level collectively possess 67% of the pharmaceutical capital market. Conclusion: Based on the results, the importance of institutional owners, such as the Social Security Organization (SSO), in the decision-making process regarding the Iranian pharmaceutical market can be acknowledged. The decisions about integration and supply chains which aimed at improving the productivity of the pharmaceutical market, need to be thoroughly examined by the institutions mentioned in this research.

The evolution of the Wellcome Trust and market-based philanthropy in the UK

In the late nineteenth and early twentieth century the industrial wealth of super-rich entrepreneurs in the United States produced a systematised philanthropy, seeking to address the fundamental causes of societal problems. These entrepreneurs created a new institution, the philanthropic foundation, to achieve their objectives, and influence and change social structures. Building on explanations of these philanthropic ventures as manifestations of entrepreneurial philanthropy, this paper examines the emergence and evolution of the Wellcome Trust. Created in 1936, the Wellcome Trust was funded from the profits of a pharmaceutical multinational, in which the Trustees held the entire share capital. Based on archival research, we examine the development of a market-based philanthropy, whereby successive generations of trustees managed the competing priorities of a multinational enterprise and a philanthropic organisation. In so doing this research offers a new understanding of entrepreneurial philanthropy’s scope: focused on the activities of trustees, rather than the founding entrepreneur.

«Без божества, без вдохновенья», или как РАПП нашел себе работу в ФОСП

The history of the Federation of Organizations of Soviet Writers (FOSP) has so far only been studied through periodicals. Archival documents could explain the context, the driving forces, and the true motives of the actors of the literary process. The theoretical framework of the institutional approach seems to be the most suitable for considering the history of FOSP, which is inseparable from the history of the struggle of VAPP/RAPP (All-Russian Association of Proletarian Writers / Russian Association of Proletarian Writers) for its share in the symbolic capital of the new Soviet culture. After the defeat of the Proletkult, the main financial and power resources were concentrated with fellow travelers. FOSP was needed to achieve VAPP’s hegemony on the literary front. VAPP used the communist faction of FOSP to manipulate the Press Section of the Central Committee. VAPP created a mass writer and a mass consumer of proletarian literature, provided conditions for the destruction of “groupism” in FOSP, ensuring the only suitable environment for the formation of a nationwide, homogeneous, mass writers’ union – the Union of Soviet Writers, controlled directly by the Politburo.

Countercyclical Income Risk and Portfolio Choices: Evidence from Sweden

ABSTRACTUsing Swedish administrative panel data, we document that workers facing higher left‐tail income risk when equity markets perform poorly have lower portfolio equity share. In line with theory, the relationship between cyclical skewness and stock holdings increases with the share of human capital in a worker's total wealth and vanishes as workers get closer to retirement. Cyclical skewness also predicts portfolio differences within pairs of identical twins. Our findings show that households hedge against correlated tail risks, an important mechanism in asset pricing and portfolio choice models.

The main approaches to valuation of the equity capital of oil and gas companies

Subject. This article analyzes the generally accepted approaches to assessing the value of companies on the basis of financial statements data of ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, BP, TOTAL, Eni, Equinor (Statoil), PetroChina, Sinopec, CNOOC, Petrobras, PJSC Gazprom, PJSC NK Rosneft and PJSC LUKOIL for 1999–2018. Objectives. The article aims to determine the specifics of using the methods of cost, income and comparative approaches in assessing the value of share capital of oil and gas companies. Methods. For the study, I used the methods of comparative, and financial and economic analyses, and financial reporting data summarizing. Results. The article finds that the cost approach is quite time-consuming, and it does not take into account the current market situation and future expectations of investors, but is based on financial information. Leading oil and gas corporations have a rather complex vertical and horizontal structure, so the cost approach is acceptable for assessing the minimum cost of small companies in the industry. The income approach takes into account the interests of investors, but its application complicates the reliability of medium-term forecasts for oil prices, which is caused by fluctuations in oil prices inherent in the industry. And the amount of net income and free cash flow in the industry largely depends on oil prices. The comparative approach does not take into account the future interests of investors, but it helps quickly determine the range of possible value of the corporation based on data on transactions and the current market situation. Thus, the analogue company method helps evaluate the cost of equity capital, and the transaction method provides insight into the level of premium for control characteristic of the industry. Conclusions and Relevance. Each of the standard approaches has its own characteristic advantages and disadvantages when assessing the value of oil and gas companies. The findings can be used to appraise the value of oil and gas assets.

FPOs as a Sustainable Business: Factors impacting performance of Agriculture Collectives in India

In recent years, the government’s focus on promoting FPOs has led to an increase in FPOs multifold. However, with the fast growth of FPOs, it is important to identify what impacts the performance of FPOs. This study raised the question, “What impacts the performance of FPOs? This study attempts to identify the measures for the performance of the FPOs. The Delphi round was conducted with 26 experts identified from agriculture. The performance measures were identified and linked with the literature. In the second round of Delphi, the experts were provided with eleven measures for performance and were asked to rank them. Based on the weightage of each criterion the most important criteria were decided. The mean ranks and deviations of the performance measures were analyzed. The hypothesis test and Kendall’s coefficient of concordance have been further used to validate the performance measures. It has been observed that governance of the farmer-producer organization, financial support, and professional management are the core measures for farmer producer organizations. Measures like Management Information Systems, Business Plan Preparation, Share capital, Turnover, Infrastructure, Market Linkages, Technical Support, and Age of FPO play an important role in the performance of the FPOs. This study will be helpful for all the stakeholders, including FPOs themselves, funding agencies, skill-building organizations, etc.

Merger & Acquisition - A Win-win Situation or a Paradox

This quote would definitely now have two schools of thought. With the world witnessing such a variety of mergers and acquisitions, this dissertation is aimed at showcasing different types of mergers and acquisitions, their synergies, and what led to their success or led them into a deeper mess. The chapters would be containing detailed case studies that show how a few factors play a major role in the success or failure of mergers and acquisitions. A merger is defined as the combination of two or more companies into a single company where one survives and the other loses its corporate existence. The survivor acquires the assets as well as liabilities of the merged company or companies. Whereas, Acquisition/ Takeover refers to purchase of majority stake (controlling interest) in the share capital of an existing company by another company. It may be noted that in the case of takeover although there is change in management, both the companies retain their separate legal identity. A merger occurs when two separate entities combine forces to create a new, joint organization. Meanwhile, an acquisition refers to the takeover of one entity by another. Considering the above background, the present study is watchfully carried out to appraise the significance of how a merger and acquisition could either do wonders or lead to the very end of the company. In this report I’ll be covering the Basics of Mergers and Acquisition right from the meaning to the various types of Mergers and Acquisition available in the market. The need for Mergers and Acquisition, the aftermath and the case studies of a variety of Mergers and Acquisition.