Value In Term Research Articles

Ethical Dilemma of Earnings Management: Solution or Problem?

This study explores the ethical dilemmas surrounding earnings management, assessing whether earnings management serves as a beneficial strategy or a detrimental practice in the long run. The authors use qualitative methods to analyze literature that highlights both positive and negative aspects. The results show that earnings management can increase firm value in the short term but is contrary to ethical standards. This study emphasizes the importance of professional ethics as a guiding framework for accountants when facing pressure to engage in earnings management. The authors conclude that although earnings management may offer short-term benefits, its negative ethical implications and potential long-term risks outweigh the benefits.

Neoliberal urban segregation and property tax: A critical view of Santiago, Chile

Urban property taxes are primordial land value capture mechanisms that can potentially redistribute public income to underprivileged areas in a city. However, in Santiago, Chile, a city with considerable socio-spatial segregation correlated with significant disparities in municipal budgets, social welfare, and intergenerational reproduction of wealth, the property tax system is weak to address this issue effectively. This study analyses the potential redistributive capacity of property taxes in Greater Santiago, comparing the evolution of real estate surplus values with municipal budgets. These results show that a 2% increase in property taxes would suffice to equalize per capita municipal budgets, essential to redistribute social welfare. In Chiles’s neoliberal planning framework, we argue that weak property taxes are critical for the intergenerational reproduction of wealth and poverty in different municipalities. Property as capital is efficient for capturing unearned value in the long term and obtaining rental income, two mechanisms of inequality reproduction, as property accumulation is only feasible if it is not progressively taxed. In sum, this analysis of property taxes in Santiago contributes to the theoretical understanding of passive mechanisms of inequality reproduction in a neoliberal system and empirical support for a progressive increase of property taxes.

Corporate Sustainability and Financial Performance: Evidence from State-owned Enterprises in Indonesia

Corporate sustainability is a business approach to meet company needs and create stakeholders’ value in the long term. This is reflected in the company’s sustainable strategic planning and responsibility that is more inclusive and focuses on environmental, social, and corporate governance. This study aims to analyze whether corporate sustainability has an impact on the company’s financial performance. The sample studied consisted of 13 listed State-owned Enterprises (SOEs) in Indonesia for the period 2017–2021. To measure corporate sustainability, independent variables consist of the three pillars of environment, social, and governance or ESG (environment, social, governance). The environmental pillar consists of three categories, namely resource use, emissions, and innovation. While the social pillar consists of four categories, namely labor, human rights, community, and product responsibility. Finally, the governance pillar consists of management, shareholders, and social responsibility strategy. The company’s financial performance which is the dependent variable was measured using data on return on investment (ROI) and return on equity (ROE). Data analysis technique used is Automatic Linear Modeling using SPSS. The results of the study show a positive significant relationship between product responsibility (on the social pillar) with ROI and ROE. On the other hand, there is a negative significant relationship between management (on the governance pillar) to ROI and ROE. While other variables show no significant relationship to both ROI and ROE. The practical impact of this research will help academics, business entities, corporations, policymakers, regulatory authorities, and governments to better understand the relationship between sustainability and financial performance. It can also help companies to operate more effectively and efficiently in implementing corporate sustainability in state-owned enterprises in developing countries such as Indonesia. Keywords: corporate sustainability, ESG, financial performance

The Zomato dilemma: a realistic growth trajectory and share price fair valuation?

Learning outcomes This case study is related to start-up post-listing investment analysis. Through this case study, students will be able to perform the business analysis guided by the Venture Evaluation Metric tool, perform financial analysis using the discounted cash flow methods and perform investment analysis recommendation with justifications from the business and financial analysis performed above. Case overview/synopsis This case study sets out the study of a scalable start-up, Zomato, which is a successfully listed start-up firm in India. Despite the start-up development success in the pre-listing, the firm has exhibited a continuous unprofitable finance performance in the post-listing and has further experienced a volatile share price performance, both of which have puzzled existing and potential investors. In addition, some analysts are in the opinions that the firm share price valuation have been inflated with overvaluation since in the initial public offering stage and remain traded with overvaluation in the market. Notably, considering the negative indicators mentioned above, investors are concerned about long-term sustainability of the firm business and financial performance. In the context of post-listing investment, the following questions are material to investors: What is the realistic growth trajectory for Zomato in the medium term? What is Zomato’s share fair value in the medium term? Can one see opportunities or risks ahead of investing in Zomato’s shares? What will be the investment strategy for new investors? Complexity academic level This case study is suited to bachelor’s and master’s level in business schools studying entrepreneurial finance analysis. Supplementary material Teaching notes are available for educators only. Subject code CSS 1: Accounting and finance.

Investor Behavior in Gold, US Dollars and Cryptocurrency during Global Pandemics

COVID-19 and SARS are epidemics which have influenced the largest global economic crisis in recent years. This research reveals that both SARS and COVID-19 have led to fluctuations in the prices of gold and the US dollar index; however, there is no direct causal relationship be-tween COVID-19 and the price of bitcoin. The USD index saw a significant increase during the SARS outbreak, while gold prices surged during the COVID-19 pandemic. The notion that cryptocurrency will surpass the value of gold or traditional currencies seems improbable, given the lack of evidence linking bitcoin prices to COVID-19. Gold is expected to maintain its value in the long term, offering lower risk compared to other currencies.

DeepLS: Local Search for Network Optimization Based on Lightweight Deep Reinforcement Learning

Deep Reinforcement Learning (DRL) is being investigated as a competitive alternative to traditional techniques for solving network optimization problems. A promising research direction lies in enhancing traditional optimization algorithms by offloading low-level decisions to a DRL agent. In this study, we consider how to effectively employ DRL to improve the performance of Local Search algorithms, i.e., algorithms that, starting from a candidate solution, explore the solution space by iteratively applying local changes (i.e., moves), yielding the best solution found in the process. We propose a Local Search algorithm based on lightweight Deep Reinforcement Learning (DeepLS) that, given a neighborhood, queries a DRL agent for choosing a move, with the goal of achieving the best objective value in the long term. Our DRL agent, based on permutation-equivariant neural networks, is composed by less than a hundred parameters, requiring only up to ten minutes of training and can evaluate problem instances of arbitrary size, generalizing to networks and traffic distributions unseen during training. We evaluate DeepLS on two illustrative NP-Hard network routing problems, namely OSPF Weight Setting and Routing and Wavelength Assignment, training on a single small network only and evaluating on instances 2x-10x larger than training. Experimental results show that DeepLS outperforms existing DRL-based approaches from literature and attains competitive results with state-of-the-art metaheuristics, with computing times up to 8x smaller than the strongest algorithmic baselines.

The Impact of Sustainable Practices on Creating Value for Banks in Emerging Countries

Objective: Analyze the impact of sustainable practices on the value of banks, located in 28 countries in emerging economies of Latin America, Caribbean, Africa, Asia, Europe and Middle East. Theoretical framework: The current lack of consensus on the impact of sustainable practices in the banking industry may be an indication of the existence of friction related to market efficiency, resulting from informational asymmetry, agency conflicts and lack of adequate signaling between different stakeholders. Methodology: Hypothesis H1 - Sustainable practices impact the value of the banks in the study is verified through a regression with pooled data and robustness tests. Results and conclusions: Banks consider that the adoption of sustainable practices does not add value in the short term. Research implications: A possible explanation for this fact is presented by the overinvestment hypothesis. According to it, the application of resources in sustainable activities causes banks to divert resources from their main objective of maximizing shareholder wealth to meet the demands of other stakeholders - which leads to a reduction in their value. Originality/value: Among the differences in this study is the analysis of banks located in emerging countries. The result obtained provides feedback to the financial market in its investment decisions in banks that adopt sustainable practices, especially in developing countries. Another aspect to be highlighted is the maintenance or change of policies adopted - by countries' regulatory entities - in terms of encouraging the adoption of sustainable practices by institutions.

Dynamic pricing and service customization strategy for IoT-based smart products

Digital technology has changed consumer behavior and expectations motivating firms to innovate customization strategies to meet the increasingly personalized needs of consumers. To explain this change, we first constructed a two-period game between a smart product manufacturer and a service customization platform. Second, we obtained optimal service customization strategies based on the impact of Internet of Things (IoT) technology. Finally, we implemented a case study of the smart product manufacturer ORVIBO and the Oppein MALL platform for whole-house customization to verify these optimal strategies. The results indicate that (i) firms should view the IoT's value in the long term, as their profits do not always increase as the IoT functionality level improves; (ii) the manufacturer's optimal strategy is to adopt service customization in both periods; (iii) service customization strategies can achieve Pareto optimality for the manufacturer and platform, resulting in a win-win state for consumers.

The impact of marine industrial structure rationalization on marine economic growth

As an important part of the world economy today, the marine economy is of great significance for promoting economic growth and sustainable development. To better promote the development of marine economy, the Augmented Dickey-Fuller (ADF) unit root test was first used to test the stationarity of marine economy related variables to ensure the reliability of the model. Then, the Vector Error Correction Model (VECM) is used to analyze the long-term stable relationship and short-term dynamic adjustment relationship between the marine industrial structure rationalization and the marine economic growth. These results reveal the mechanism of the influence of the rationalization of marine industrial structure on the growth of marine economy. It is found that among the eastern coastal provinces and cities, the rationalization level of marine industrial structure in Shanghai is up to 0.163 points, which is higher than other cities. The main reasons are the low specialization index of marine labor force, the comprehensive utilization amount of industrial waste in 10,000 yuan of gross marine product, the low environmental protection index, and the large gap between the benefits of each index. In addition, the study also found that the Granger causality test values of the delayed combination of variables Gross Ocean Product (GOP), ts, GOP, and ts were 5.531, 14.672, and 15.069, respectively. Finally, it is found that the upgrading of marine industrial structure and the output of marine economy will correct the deviation of industry rationalization below the equilibrium value in the short term at a rate of 0.1675. According to the above results, the study puts forward the following suggestions. First, it needs to strengthen the planning and layout of the marine industry, rationally guide the allocation of resources and industrial development. Second, it needs to increase support for scientific and technological innovation, and promote technological progress and industrial upgrading. The third is to strengthen the government's policy support and supervision to provide a stable policy environment and market environment for industrial development. The innovation lies in the systematic study of the relationship between the rationalization of marine industrial structure and the growth of marine economy.

DAMPAK KETERBUKAAN EKONOMI TERHADAP PENYERAPAN TENAGA KERJA DI INDONESIA TAHUN 1993-2022

Indonesia's population growth every year is increasing. Population growth certainly results in an increase in the number of labor force. However, this will become a problem in the world of work if the increasing number of labor force is not proportional to the amount of labor absorption. This problem is very important considering its relation to the level of social welfare. This study aims to determine the impact of economic openness on employment in Indonesia. This research is a quantitative study and uses time series data, namely Export, Exchange Rate, FDI and Labor data using the ECM model. The results of this study indicate that in the long run Exports, Exchange Rates and FDI have a positive and significant effect on Absorption of Labor in Indonesia. Whereas in the short term Exports, Exchange Rates and FDI have a positive and insignificant effect on the Absorption of Labor in Indonesia in 1993-2022. And the ECT value in the short term has a negative and insignificant effect which indicates that there is a short-term imbalance in the long term.

Corporate reputation and culture: the link between knowledge management and sustainability

Purpose This study aims to analyze how sustainability, through an efficient knowledge management (KM) system, can serve as a driving force with respect to corporate culture and reputation. The research questions that guided this study are mainly the following: Are KM and sustainability related? Can culture strengthen the link between KM and sustainability? Can the link between KM and sustainability be affected by reputation? Design/methodology/approach The methodological approach adopted corresponds to qualitative research of analysis on the reference literature in the international field, also supported by empirical analysis. Findings In this study, the authors show that there is no explicit correlation between sustainability and KM. This relationship, in fact, is not underlined in nonfinancial reporting because it is absent or because it is not considered relevant. Too often sustainability is reduced to a mere relational and reputational tool, ignoring the fact it must be considered a consequence and not the main goal to improve companies’ culture. Research limitations/implications The sample studied by the authors refers to the top 40 companies listed on the Italian market, not allowing to generalize the findings across the international context. Practical implications The practical implications that could result from making explicit the relationship between sustainability and KM are multiple: the substantial benefits of the reputational aspect, an increase in the economic value related to sustainability; to ensure the going concern of the company and implement its ability to produce and share value in the long term. Social implications The social benefits of a stronger relationship between sustainability and KM are related to the possibility to improve the wealth of all the stakeholders. Originality/value This paper analyzes the links between sustainability and KM to understand the influence of these factors on corporate culture and reputation.

Hypernatremia: Epidemiology and Predictive Role in Emerging and Established Acute Kidney Injury.

Hypernatremia (plasma sodium > 145 mmol/L) reflects impaired water balance, and affected patients can suffer from severe neurologic symptoms. Hyponatremia, on the other hand, is the most frequent electrolyte disorder in hospitals. It may be diagnosed in acute kidney injury (AKI), but hyponatremia prior to the diagnosis of AKI has also predictive or prognostic value in the short term. Aim of the article was to summarize data on both, epidemiology and outcomes of in-hospital acquired hypernatremia ("In-hospital acquired" refers to the diagnosis of either hypo- or hypernatremia in patients, who did not exhibit any of these electrolyte imbalances upon admission to the hospital). It also aimed to discuss its predictive role in patients with emerging or established AKI. Five databases were searched for references: PubMed, Medline, Google Scholar, Scopus, and Cochrane Library. Studies published between 2000 and 2023 were screened. The following keywords were used: "hypernatremia", "mortality", "pathophysiology", "acute kidney injury", "AKI", "risk prediction", "kidney replacement therapy", "KRT", "renal replacement therapy", "RRT", "hyponatremia", and "heart failure". A total of 16 studies were deemed eligible for inclusion. Among these, 13 studies had a retrospective design, two investigations were published as secondary analyses from prospective trial cohorts, and one study was prospective in nature. Out of the 16 studies, 11 focused on the epidemiology and outcomes of hypernatremia, while five investigations were related to AKI and/or AKI-associated endpoints. The prevalence of hypernatremia diagnosed during hospitalization varied from 1.9% to 6.8%, with one exception where it was 30.8%. All studies demonstrated associations between hypernatremia and mortality, even over extended periods after discharge. In AKI patients, hypernatremia shows potential for predicting in-hospital death. In conclusion, hypernatremic individuals are at higher risk of death during in-hospital therapy. Also, the electrolyte disorder potentially qualifies as a future biomarker for AKI onset and AKI-associated mortality.

Managing the Nigerian Economy through Fiscal Deficit

This study examined how fiscal deficit, exchange rate, and inflation rate impacted the economic growth of the Nigerian economy from 1980 to 2019. The cointegration connection in the study was discovered using the autoregressive distributed lag (ARDL) bound test. The analysis found that, while inflation and the exchange rate have a positive and significant relationship with the Nigerian economy, the fiscal deficit has a negative but relatively insignificant effect on the country's GDP. The Nigerian government should stabilise the currency's external value and prevent it from falling in value in the short term. Such policies should be developed to encourage people to pay taxes while providing incentives to those who abide. The government should lower lender interest rates to boost small domestic investors to make investments and create jobs while increasing government revenue. Government agencies should reduce luxuries and wasteful spending to avoid a fiscal deficit.

Trajectories of Value Generation and Capturing by Public–Private Hybrids: Mechanisms of multi-level governance in healthcare

Our paper unpacks the multi-level process through which hybrids generate value in the long term. By combining interviews, archival and survey data, we examine the longitudinal trajectories of value generation of public–private hybrids (PPHs) established in the regionalized Italian healthcare system (1992–2018). We identify three ideal-type trajectories: (a) long-term value generation by stable PPHs; (b) long-term value generation by transient PPHs; and (c) interrupted value generation by terminated PPHs. We uncover how these trajectories are shaped by the interplay between regional governance arrangements – i.e. institutionally embedded norms regarding who is entitled to generate value for the field, the scope for organizational value capturing and the institutional monitoring system – and organizational governance mechanisms – i.e. the strategic orientation of individual PPHs and their internal monitoring functions. Our paper contributes to theory by conceptualizing the mechanism of ‘double filter’, which we define as the set of field- and organizational-level governance compensatory mechanisms that, together, allow long-term value generation by hybrids. We also problematize the relationship between hybrids’ value-generation capacities and the persistence of hybrid organizational forms, and ultimately trace it to different field governance arrangements. In so doing, we conceptualize ‘transient hybrids’ as a distinctive organizational form for long-term value generation.

Capital Structure and Firm Value. The Role of Contextual Variables in this Relationship

This study aims to identify the role of contextual variables, especially the interest rate, in affecting the relationship between a firm’s capital structure and firm value. This study investigates the capital structure of Pakistani-listed firms in light of rising interest rates, declining “Domestic credit to the private sector” and emerging Islamic banking in the country. The study uses GMM (Two-Step) to examine the linear, and dynamic Panel threshold model to examine the quadratic relationship between leverage firm value and how other contextual variables affect this relationship. The study found that there is a negative relationship between leverage and firm value in the presence of the majority of contextual variables. Except for tax, depreciation, and free cash flow, leverage shows a negative relationship with firm value in presence of all other contextual variables. Further results show that there is a quadratic relationship present between leverage and firm value. Also, the interest rate and inflation has a negative effect on firm value in long term, while in short term this relationship is positive. The study supports the pecking order & Trade-off theory but does not support the agency theory. The study is using new methodologies, just as the panel threshold model which is never used before for Pakistani industries. The panel threshold model is using some variables for the first time in research. Previously only size and debt were used in panel threshold models, this time we used debt, firm value, profitability, tax, and tangibility, which will be a significant contribution to the literature.

Inflation Targeting As a Tool for Maintaining Price Stability of The National Bank of Ukraine

Introduction. Inflation targeting is a tool for ensuring price stability in the economy and therefore requires harmonious coordination and communication among government institutions. At the same time, the central bank must adhere to a certain policy instrument, the established legal rules, which are fixed in its mandate, or act at its discretion. Nowadays, the most common rule of monetary policy is inflation targeting.
 Aim and tasks. The purpose of the article is to explain the expediency of using the inflation targeting regime to keep inflation at a certain target level, which is determined by the central bank taking into account the current state of the economy.
 Results. The theoretical model of Taylor is considered, which is based on inflation assessment in the form of a simple interest rate rule based on monetary policy instruments that ensure convergence of the inflation forecast to the target value in the medium term. The obtained results reflect the volatility of the indicators of the objective function in the data range of 2015 Q3–2021 Q2 and confirm the weight of the gap of variable values that are estimated to be insignificant (95%). Using the GMM method, the relationship between the indicators of the objective function and their impact on the inflation rate through the use of the inflation targeting regime was verified. In particular, the volatility of variables such as the inflation gap, short-term interest rate, output gap, and exchange rate gap and their impact on the target inflation rate was revealed on the time horizon of monetary policy. Smoothing out gaps in variables is one of the goals of the central bank's reaction function under the inflation targeting regime. The use of the GMM method confirms the validity of the application of Taylor's rule regarding the feasibility of choosing an objective function with predetermined variable parameters at different sampling intervals.
 Conclusions. The increase in the volatility of variable parameters in the objective function of central banks under the inflation targeting regime is explained by global crises and the sensitivity of macroeconomic indicators to fluctuations in the economic situation. This is the main reason why central banks strictly follow the rules of monetary policy, which allow the timely smoothing of exogenous shocks in the economy.

Determination of Term Life Insurance Premiums with Varying Interest Rates Following The CIR Model and Varying Benefits Value

Term life insurance is an insurance that provides protection for a certain period that has been agreed upon in the policy. The policy is an agreement that contains the participant's obligation to pay premiums contributions to the insurance company and the insurance company's obligation to pay benefits in the event of a risk to the insurance participant as agreed in the policy. Interest rates will influence the calculation of premium value and benefits in the long term. So we need a model of interest rates that will change by time. One of the models that can be used is the CIR model. This research purposes to simulate the CIR model that will be carried out to determine interest rates for calculating term life insurance premiums for five years, with premiums paid at the beginning of the 1/m interval or monthly premium payments and benefits paid at the end of the 1/m interval when the participant dies. The case that will be discussed is when the benefit various. The results of this study are the CIR model can be applied to calculate the term life insurance premiums for five years and the premium calculation results show that the amount of the premium increase every year with varying benefits.

The Value of Organizational Purpose

Broadening the organizational purpose of a firm beyond narrow short-term profit maximization may enhance long-term shareholder value. This result obtains when firms generate unpriced externalities and face difficulties in achieving ex ante incentive alignment with stakeholders through contract or have the ex post possibility of altering stakeholders’ perceptions through virtue signaling (i.e., cheap talk or greenwash). As each of these conditions is ubiquitous in practice, discussion of organizational purpose (beyond narrow short-term profit maximization to encompass stakeholder’s harmonious pursuit of a common higher goal or meaning) should shift from why management might pursue it to how managers obtain and maintain it as well as the value creation and distribution implications of doing so. Drawing on a value-based stakeholder theory of strategic management, I argue that attentiveness to the most salient issues of a firm’s most powerful stakeholders related to the attainment of this higher goal more closely aligns stakeholder and shareholder value in the long term, thereby building and sustaining relational contracts with stakeholders. A firm with strong relational contracts across its nexus of stakeholder relationships increases the likelihood of harmony among its stakeholders, including shareholders. An important challenge to realizing this outcome is that of measurement. As a result, research on organizational purpose should turn its attention from legal and moral foundations to empirical research on externalities, stakeholder opinions, and managers’ self-representations of their organization’s purpose. The availability of such data lowers the transaction costs associated with a nexus of relational contracts and enhances societal welfare.History: This paper has been accepted for the Strategy Science Special Issue on Corporate Purpose.

Analysis of Implementation Indonesia-Japan Economic Partnership Agreement (IJEPA) Toward Export Value Growth in Indonesia

This study aims to analyze the impact of the Indonesia-Japan Economic Partnership Agreement (IJEPA) bilateral trade agreement on Indonesia's export value in the long term. The secondary data time series used for the research is from 2005Q1 to 2019Q4, and the research method employed is the VECM (Vector Error Correction Model). The results of the VECM analysis show that the IJEP bilateral agreement has a significant negative effect, the inflation variable has a significant positive effect, and the FDI and exchange rate variables have a negative but not significant effect on the value of Indonesia's exports to Japan. Implementation of the recommended policies to increase export value and economic growth, namely compliance with product standardization, especially for destination countries, actively and openly providing information related to the IJEPA tariff scheme and utilizing capacity building.

Penerapan Penyajian Laporan Keuangan Berdasarkan PSAK 1 Dan Tata Kelola Yang Baik Pada Perusahaan Ades

Presentation of financial statements is an accounting standard that will explain the components of a financial report, fair presentation, as well as the fundamental accounting concepts, disclosure policies, as well as the structure and content of financial reports. The characteristics in the presentation of financial statements are fair presentation and compliance with PSAK, maintaining business, accrual basis, materiality and aggregation, offsetting, frequency of reporting, comparative information, and presentation consistency. There are several components of the financial statements presented, namely the statement of financial position, income statement, cash flow statement, statement of changes in equity, and notes to the financial statements. Corporate governance is a company's internal control system whose main objective is to manage significant risks to fulfil its business objectives through safeguarding company assets and increasing shareholder investment value in the long term. A company must also apply the principles of corporate governance, there are five principles that must be applied, namely the principle of transparency, the principle of accountability, the principle of responsibility, the principle of independence, and the principle of fairness.