Total Capital Research Articles

Analiza efikasnosti bankarskog sektora pomoću metode analize obavijenosti podataka - pre pandemijski period

During the last decade, the question of measuring efficiency became inevitable factor of successful management of banks. Therefore, the basic goal of this paper is to apply DEA - Data Envelopment Analysis in comparing unit efficiency of Serbian banking sector for three years period of time (2017, 2018 and 2019). DEA is a technique of mathematical programming which uses analysis and comparation of efficiency of different entities and it is suitable to solve problems of different number and nature of inputs and outputs. The presented paper employs an output-oriented data envelopment analysis with a constant return to scale assumption. The selected input variables are total assets and total capital, while net operating income and net profit were used as output variables. Results showed that the average efficiency of Serbian banking sector is about 50% in the observed years. Opportunity Bank achieved the maximal efficiency score in the entire time period while Mirabank had the lowest efficiency score.

Stable Goal-Based Management Strategy for Supply Chain Finance

The article is devoted to improving the methodology for managing the total working capital of the supply chain to reduce costs for given ranges of liquidity. The paper analyzes the current state of research on working capital management in supply chain finance and substantiates the multi-objective nature of managing joint working capital in the supply chain. The possibilities of individual financial instruments to reduce the cost of total working capital for given ranges of liquidity have been explored. The necessity of using the technique of dynamic goal programming in the problem of working capital management is substantiated. A model and algorithm of goal management have been developed, which is implemented on cases of real supply chains and has shown its effectiveness

The concept and types of network capital (example of aircraft industry)

The functioning of network forms of economic interaction leads to the formation and accumulation of special kind of capital — network capital — assets of a certain degree of specificity, capable of generating benefits only within the framework of these network structures. The article identifies the main types of network capital and the conditions for their formation. It is determined that the transition to increasingly close and dependent forms of network interactions is associated with the accumulation of a greater value and variety of network capital types. Depending on the availability of certain types of network capital, the amount of investment in specific assets, as well as the tightness of connections within the network, the main types of networks are identified — market, partner, dependent, clan and hierarchical networks. As an example, the main types of network capital formed in the global value chains of the aircraft industry are presented. It has been determined that the central agent of a network can simultaneously enter into network forms of cooperation with different companies, — different in terms of tightness and interdependence, while forming different types of total network capital. Neoclassical and institutional economic theories, theory of contracts, economic sociology were used as the methodological basis of the research.

Экономическая оценка человеческого капитала региона

Sustainable regional development should consider the state and improvement of the quality of regional human capital. To this end, the present study focuses on economic assessment of human capital. Additionally, the research analyses the definitions of the “human capital” category, as well as approaches to identifying its composition and structure. After examining various economic assessment techniques, a definition of regional human capital was proposed. The cost approach was chosen as the most suitable tool for the economic assessment of human capital at the regional level. For economic valuation, the study uses a method developed by Chigoryaev and co-authors, including a number of theoretical and methodological modifications that take into account regional specificities. According to the assessment results, the total human capital in Kamchatka krai exceeded 191 billion roubles, of which more than 104 billion accounted for the fixed human capital. The constant growth of human capital in the period 2011–2018 was noted. Simultaneously, the share of the fixed human capital in the overall structure has been steadily increasing. The values of the chain growth rate of the operating human capital ranged from 1.0 to 1.06, while the values of this rate of the fixed human capital ranged from 1.14 to 2.05. A comparative analysis of the ratio of the total human and physical capital showed the presence of an imbalance: the share of human capital was gradually increasing and reached 37.5 % in 2018. The obtained results can be used to create strategic and programme documents in the field of regional socio-economic development. The modified method of Chigoryaev and co-authors can be applied for the valuation of regional human capital in other studies.

Aнализ продуктивности земельных ресурсов отраслей растениеводства в системе требований устойчивого развития

Introduction. The article discusses issues related to the actualization of the problem of obtaining environmentally friendly products in the context of the requirements of sustainable development and the growing shortage of food. The basis for increasing the level of sustainability in agriculture should be the processes of gross savings of the productivity potential of land resources. From these positions, it is necessary to integrate environmental management indicators into the system of assessing the total capital of economic entities operating at the grassroots territorial level. Materials and methods of research. Through the use of balance generalizations, a specialized system of coefficients, cartographic surveys, the importance of strict compliance with the normative approach in assessing the parameters of productivity of land resources, both in terms of their artificial and organic support, is shown. Results. Using modeling procedures, variants of nutrient recovery in the soil are presented, which made it possible to form a block model of the forecast of agricultural nature management, focused on the need for capital increment and, above all, in terms of its land form. Conclusions. The use of such a model makes it possible to conclude that it is necessary to increase the integrating importance of territorial environmental protection bodies, which should be focused on an integrated system of monitoring the state of land resources, allowing to increase the synergetic role of information flows of grassroots economic and territorial entities.

The review of the financial strategies of Polish pulp and paper companies listed on the Warsaw Stock Exchange

The review of the financial strategies of Polish pulp and paper companies listed on the Warsaw Stock Exchange. The main purpose of this paper is to evaluate the financial strategy undertaken by the polish pulp and paper companies listed on Warsaw Stock Exchange in 2018 - 2020. In this paper three most frequently used indicators characterising company’s financing strategy were analysed, namely: equity capital share in total capital, equity capital share in fixed assets and long-term debt share in total debt. The calculations used data from publicly available quarterly financial statements of the analysed enterprises for the period from 1st quarter of 2018 to 3rd quarter of 2020. The calculations showed that Kompap has a more moderate policy of financing its activity. The second company, Arctic Paper, was characterized by a more risky approach to the financing strategy.

Is bank diversification a linking channel between regulatory capital and bank value?

This study investigates the interrelationship between bank regulatory capital and bank diversification. We argue that regulatory capital might act as a substitutive mechanism of diversification to alleviate a bank's default risk. As a result, regulatory capital is likely to discourage firms from excessive diversification, which might in turn indirectly improve bank value. Using a sample of listed banks in developed countries from 2011 to 2017, we find that total regulatory capital is inversely associated with bank diversification. Narrower regulatory capital ratios only have a significant association with income-based but not with asset-based diversification. Our results also reveal an indirect effect of regulatory capital on bank value mediated by bank diversification (i.e. indirect-only mediation). Overall, our study provides novel insights into the complementarity of the institutional and strategic domains so as to understand the far-reaching implications of regulation reforms for the strategic behaviour of banking companies.

Labor Productivity in Hotel Service: Empirical Evidence from Vietnam

Service industries in emerging economies are facing the problem of underrated labor productivity due to difficulties in precise measurement and effective management. Therefore, it is necessary to find solutions to such issues. This study concentrates on popular hotel services in Vietnam which are also encountering challenges in labor productivity management. The data is obtained from the General Statistics Office of Vietnam national census in 2018 on the performance of 1,400 enterprises operating in Vietnam hotel services and presents findings on the determinants of labor productivity. Specifically, labor cost, total capital, before-tax profit, number of rooms, number of room days, and accommodation revenue are among the most-affecting factors. These findings pave the way for further studies to represent a brand-new and more advance measurement for labor productivity, not only for hotel service but also for the service sector in general.

Analysis of Financial Independence of Regency/City Governments in Java Island Based on Comparison and High Local Original Revenue (PAD)

The independence of the Regional Government is very important because in Indonesia since 1999 regional autonomy has been applied. However, the achievement of good performance still cannot be fulfilled by all Cities/Regency. The purpose of this study was to determine the interrelationships and comparisons between various financial performance indicators in City/Regency Local Governments. All Cities/Regency on the island of Java are the population in this study. A sample of 113 Cities/Regency was taken based on predetermined criteria. A quantitative approach and descriptive analysis of all indicators were used to answer the research questions. The results of this study indicate that the comparison of PAD based on the type of region and regional potential in the five provinces on the island of Java is not evenly distributed. It was also found that the high PAD owned by the City/Regency became a factor supporting the high or increasing the value of other factors such as Total Assets and Total Capital Expenditure. This research is expected to reveal the performance of the City/Regency in terms of PAD and other related factors as an illustration of regional financial independence in the City/Regency.

ESG rating as input for a sustainability capital buffer

In this paper, we give a state of the art overview of what ESG ratings are, which different types of these ratings can be distinguished and how they could be used in banking regulation to adjust banks’ capital requirements with the goal to promote green finance and reduce climate-related risks within the investments of banks. Based on experience collected with other supporting factors within banking regulation, like the SME supporting factor, we show how a Green Supporting Factor or a Brown Penalty Factor could be implemented to promote green finance or punish brown finance, respectively, and include climate risk into Pillar I capital requirements. We also discuss an approach combining these two binary factors and conclude with a proposition to use ESG ratings to derive capital requirements add-ons. After all, ESG ratings take a broader perspective on sustainability and provide a more granular scale ranging from sustainable to non-sustainable rating classes. This approach ensures that green finance investments can be promoted via adjustments of capital requirements without a significant decrease of the total capital in the banking sector and, therefore, without the reduction of the stability of the financial market.

SIGNIFICANCE OF THE METALLURGICAL INDUSTRY OF AZERBAIJAN IN THE NON-OIL SECTOR, THE ROLE OF AZERGOLD CJSC IN THE ECONOMY OF THE REPUBLIC

Geological surveys carried out by the Closed Joint Stock Company (CJSC) AzerGold for the exploration of new deposits and expansion of production areas are giving positive results. For an effective assessment of reserves at the fields, AzerGold CJSC conducts intensive exploration work and drills deep wells in these fields. Since 2017, AzerGold CJSC has been mining Chovdar, Agyokhush, Tulallar, Marakh, Filizchay etc others and Jayirchay gold, as well as it carries out various works on fine metal deposits. The latest financial indicators of AzerGold CJSC give reason to say that it is a stable company. It is expected that AzerGold CJSC will react faster to the growth rates in the world markets due to the work carried out at new gold deposits and efficient use of resources. The net profit of a Closed Joint Stock Company has been growing at a higher rate over the years. AzerGold CJSC produces ingots and coins from Azerbaijani gold and silver in various historical designs. Bars and coins are currently sold in stores owned by Italdizain Group, Levata Group and SI Luxury World, which have a long history of selling premium goods. AzerGold CJSC will soon become better known in the local and international markets as a gold producer of the country. AzerGold CJSC issues bonds, increases the company's technological capabilities for gold production and strengthens production in order to bring more gold to the world market. Recent financial indicators of AzerGold CJSC give grounds to say that it is a stable company. The company's revenue, net profit and total capital of the company in 2019 increased several times compared to 2018. Keywords: AzerGold CJSC, geological exploration works, drilling works, production works, efficiency.

Effect of Capital Structure on Profitability of Securities Companies: Empirical Research in Vietnam

Capital structure is understood as the proportion of each source of capital in the total capital that the business, or the combination of debt and equity that the company uses for business operations. The decision on capital structure is one of the important financial decisions for any business, reducing capital costs and eliminate unwanted risks. In other words, a reasonable structure is the balance between risk and profit, from which enterprises can implement their business strategies. In fact, the capital structure of each enterprise depends on many factors such as the macro conditions of each country, each industry in which the enterprise operates, or the individual characteristics of each enterprise, etc., so there is no single structure common to all businesses. Therefore, the study of capital structure is a topic that is always interested by scientists at different stages, as well as business managers to make effective selection decisions.

Thermo-economic analysis of integrated gasification combined cycle co-generation system with carbon capture and integrated with absorption refrigeration system

Greenhouse gas emissions have become a major issue during power generation from coal due to global warming effects. Integrated gasification combined cycle (IGCC) power system has been acknowledged as a rare existing opportunity to utilize low-quality solid fuels with reduced emissions and co-generation of power, fuels and chemicals. Country like, Pakistan, where huge reserves of low-quality coal are present can benefit from this technology. In this work, the steady-state thermodynamic and economic evaluation of IGCC co-generation system has been performed for methane and ammonia production along with power generation. Gasification of coal has been simulated using entrained flow Shell gasifier under thermochemical equilibrium with the Gibbs free energy approach using local Thar lignite in Aspen Plus® V.11. The designs simulated include, IGCC 100% power with and without carbon capture, and IGCC co-generation system with carbon capture with varied production of methane, ammonia and electricity. Thermal efficiency, cost of electricity and CO2 avoided costs have been evaluated for 100% power design. Total capital in the form of total overnight cost and operating cost (fixed and variable) has been evaluated to account annualized expenditure for co-generation designs. Absorption refrigeration system (ARS) has been integrated with IGCC designs to meet the partial chilling requirement of lean solvent in Selexol process, which caused the reduction in CO2 emission because of reduced auxiliary power consumption. The net electrical efficiency of 100% power (design-2) is 32.33%, and the improved efficiency after ARS integration is 32.61%. The performance of co-generation designs is evaluated by estimating annualized revenue and annualized expenditures. One of the co-generation cases (design-4) with high methane, low ammonia and medium electricity generation, showed better performance with respect to reduced GHG emissions at almost same revenue to expenditure ratio as compared to design-2.

The transformation from value determination to value realization: the logical dilemma of the Okishio theorem

PurposeDifferent from Marx's analysis of the dialectical relationship between the production and realization of surplus value, the Okishio theorem only shows one aspect of the contradictory movement of the total social capital, that is, the reverse effect of the realization of surplus value on the production of surplus value.Design/methodology/approachThe production of surplus value and the realization of surplus value are simplified into one process. This simplification eliminates the contradiction between the production and realization of surplus value, and the antagonistic contradiction between accumulation and consumption and the antagonistic production-distribution relationship in capitalist society are naturally covered up.FindingsTherefore, it cannot explain the actual expansion way of the falling general rate of profit as the historical development law of capitalism. Nevertheless, it should be noted that the Okishio theorem places the analysis of the general rate of profit back into the social reproduction model with department equilibrium, which points out the significance of wage income to the realization of surplus value and outlines the macro mechanism of the realization of surplus value reacting to the production of surplus value. It also strongly promotes the research progress of the law that the profit rate tends to decline.Originality/valueThe mistake of the Okishio theorem is that the exchange process in the labor market forms the real wage rate. It determines the production price of wage goods, which thereby determines that the production price of capital goods and general rate of profit, the production of surplus value and realization of surplus value are simplified into the same process, and only the value that can be realized is the real value.

The effect of the spatial heterogeneity of human capital structure on regional green total factor productivity

China’s rapid economic growth has resulted in resource consumption and environmental degradation. Only by improving green total factor productivity (GTFP) can China’s economic growth become stable and sustainable. Existing studies have demonstrated that total human capital can improve GTFP, but such studies have ignored the heterogeneous influence of human capital structure, and there is a lack research on how human capital structure affects GTFP spatially. Therefore, based on China’s provincial panel data from 2000 to 2018, this paper uses the Super-SBM-ML model to evaluate GTFP. The human capital is divided into that having academic education and that having only non-academic education, and then the spatial Dubin model is used to estimate the relationship between GTFP, academic education and non-academic education human capital. The empirical results show that different levels of human capital have different effects on GTFP. Some types of human capital (such as tertiary-level educational human capital) promote local GTFP, while other types (such as primary-level educational human capital) inhibit it. This indicates that local governments should optimize the human capital structure in order to promote green development. In addition, although there are effects of human capital on the spatial spillover of GTFP, those effects are not significant for some types of human capital, indicating that local circulation channels for human capital are not smooth, so it is necessary to improve local talent policies and strengthen regional cooperation and development so that human capital can promote the rapid development of a green economy. Finally, this paper proves that educational human capital can alter the impact on GTFP of technological progress, knowledge spillover, industrial upgrading and environmental regulation.

The review of the financial strategies of Polish wood-industry companies listed on the Warsaw Stock Exchange

The review of the financial strategies of Polish wood-industry companies listed on the Warsaw Stock Exchange. The paper focuses on the analysis of the financing strategies of wood industry enterprises listed on Warsaw Stock Exchange in 2018 - 2020. This paper examines three main values characterising company's financing strategy: equity capital share in total capital, equity capital share in fixed assets and long-term debt share in total debt. The data for calculations was taken from publicly available quarterly financial statements of analysed entities from 1st quarter of 2018 to 3rd quarter of 2020. The analysis showed that moderate financing strategy was used by Biofactory and KLON companies and an aggressive strategy was used by Standrew. KPPD financing strategy was not possible to clearly define due to the high volatility of values of examined ratios and depend on the considered period. The highest variability in the structure of foreign capital was observed in KLON - in this company the highest level of long-term debt was observed (above 70% of total debt).

Using biogas from municipal solid waste for energy production: Comparison between anaerobic digestion and sanitary landfilling

The objective of this work is to compare anaerobic digestion of the organic fraction of municipal solid waste (OFMSW) and sanitary landfilling for combined heat and power (CHP) production, using biogas. The comparison aims to select the most appropriate method using economic, environmental, technological and legal criteria. In the first scenario considered, the total amount of 50,000 Mg/y (SI unit Mg = metric ton = tonne) commingled MSW is disposed of in a sanitary landfill. In the second scenario, 40% of OFMSW from 50,000 Mg/y of commingled MSW is source-separated and subject to dry, thermophilic, anaerobic digestion. The remainder MSW and the digestate are disposed of in a sanitary landfill. A sensitivity analysis for 100,000 and 200,000 Mg MSW/y was also conducted. For both methods, the appropriate CHP engines were selected, the amounts of produced biogas, energy, GHGs, NOx to the atmosphere, leachate production and the total capital and operation costs were calculated. Regression equations for total cost, net present value and gate fee were developed and used for economic assessment. Based on energy, environmental and legal criteria, CHP production from anaerobic digestion is favored, compared to sanitary landfilling. Based on economic criteria, anaerobic digestion is selected for MSW productions exceeding 210,000 Mg/y and 150,000 Mg/y, for the cases the investment is implemented with own funds or draws 55% from public funds, respectively. For smaller MSW productions, sanitary landfilling is favored, respectively. Although the results are based on Greek economic conditions, the comparison methodology can be applied to other countries.

Optimization-Based Proposed Solution for Water Shortage Problems: A Case Study in the Ismailia Canal, East Nile Delta, Egypt

Water conflicts in transboundary watersheds are significantly exacerbated by insufficient freshwater sources and high water demands. Due to its increasing population and various development projects, as well as current and potential water shortages, Egypt is one of the most populated and impacted countries in Africa and the Middle East in terms of water scarcity. With good future planning, modeling will help to solve water scarcity problems in the Ismailia canal, which is one of the most significant branches of the Nile River. Many previous studies of the Nile river basin depended on quality modeling and hydro-economic models which had policy or system control constraints. To overcome this deficit position and number, the East Nile Delta area was investigated using LINDO (linear interactive, and discrete optimizer) software; a mathematical model with physical constraints (mass balances); and ArcGIS software for canals and water demands from the agriculture sector, which is expected to face a water shortage. Using the total capital (Ismailia canal, groundwater, and water reuse) and total demand for water from different industries, the software measures the shortage area and redistributes the water according to demand node preferences (irrigation, domestic, and industrial water demands). At the irrigation network’s end, a water deficit of 789.81 MCM/year was estimated at Al-Salhiya, Ismailia, El Qantara West, Fayed, and Port Said. The model was then run through three scenarios: (1) the Ismailia Canal Lining’s effect, (2) surface water’s impact, and (3) groundwater’s impact. Water scarcity was proportional to lining four sections at a length of 61.0 km, which is considered to be optimal—based on the simulation which predicts that the Ismailia canal head flow will rise by 15%, according to scenarios—and the most effective way to reduce water scarcity in the face of climate change and limited resources as a result of the increasing population and built-in industrial projects in Egypt.

Social Capital and Self-Perceived Quality of Life-Interrelated Predictors of Mediterranean Diet Adherence in Older Adults.

Living a healthy life in a supporting environment are key elements towards higher diet quality in older age. The Mediterranean Diet in Older Adults (MINOA) study collected cross-sectional data from adults ≥65 years old (n = 436) from April 2014 to November 2015 in rural Crete, aiming to understand the interrelations between Mediterranean Diet adherence, Social Capital and Health-Related Quality of Life (HRQL). Multivariate linear regression, carried out using SPSS 20.0, revealed that both Social Capital and HRQL has a positive impact on Mediterranean Diet adherence after adjustment for confounders and independently of each other. Total Social Capital as well as its Value of Life/Social Agency component (β = 0.04 and β = 0.1, p < 0.05, respectively) had a positive relationship with Mediterranean Diet adherence. As far as HRQL is concerned, only the Physical Health components were found to have a positive association with Mediterranean Diet adherence (β = 0.09, p < 0.001). At the same time Total Social Capital was also seen to have a positive relationship with perceived Physical and Mental Health (β = 0.21 and β = 0.28, p < 0.001, respectively). In a population of older adults Social Capital, HRQL and Mediterranean Diet adherence seem to share intricate interrelations that impact both diet quality and quality of life overall.

The Natural Resource Boom and The Uneven Fall of The Labor Share

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares. The theory suggests that the response of factor shares to exogenous changes in commodity prices depends on the relative intensity in which factors are used in the tradable and natural resource sectors. We construct estimates of income shares accruing to raw labor, human capital, physical capital, and natural resources, and quantify the effect of the resource boom on factor shares. For identification, we use a two-way fixed effects strategy and a differential exposure design to instrument commodity prices. We find that a natural resource boom negatively impacts the total labor, human capital, and physical capital shares, while the raw labor share remains unchanged. Our estimates suggest that the natural resource boom explains nearly 25.7 percent of the global decline of the total labor share during the 2000s. We also find a redistribution effect within labor income that indicates that the fall of the labor share was unevenly distributed against human capital.