Search results

1 – 10 of 50
To view the access options for this content please click here
Article
Publication date: 6 August 2018

Ajid ur Rehman

This study aims to apply unit root test to investigate the behavior of Chinese firms toward their leverage policy. The study is based on two influential and competing…

Abstract

Purpose

This study aims to apply unit root test to investigate the behavior of Chinese firms toward their leverage policy. The study is based on two influential and competing theories of capital structure.

Design/methodology/approach

This study applies unit root test to investigate the behavior of Chinese firms toward their leverage policy. The study is based on two influential and competing theories of capital structure. Trade off theory advocates that firms have a target level of leverage ratio and that firms try to achieve that optimal leverage ratio, whereas pecking order theory argues that firms have no target level of leverage and that they follow a specific pattern of leverage. For this purpose, this study applies a Fisher type unit root test to 12,808 firm level observations. The data are unbalanced and cover a period from 1991 to 2014.

Findings

The results reveal the presence of a stationary behavior across short-term, long-term and total leverage policies. For short-term leverage policy, 21 per cent firms show stationary behavior, while for long-term, 20 per cent show a targeting behavior; for the total leverage policy 17 per cent of firms are found to follow a tradeoff model. To make the findings more interesting sample was further classified into profit and loss making firms. The study finds that loss making firms do not follow a target level of leverage in China. Furthermore, unit root is applied to all firms before and after crises-2008. It is revealed that stationary behavior is more prevalent before crises-2008.

Originality/value

This study is highly important from the point of view that it quantifies firms into distinct categories of following specific model of capital structure. To the best of the author’s knowledge, the findings of this study add to current research knowledge about Chinese firms with respect to adjustment behavior toward a target capital structure.

Details

Journal of Asia Business Studies, vol. 12 no. 3
Type: Research Article
ISSN: 1558-7894

Keywords

To view the access options for this content please click here
Book part
Publication date: 4 July 2019

Tatiana N. Litvinova

The purpose of the work is to study the essence of conflict as an economic category through the prism of the existing conceptual issues.

Abstract

Purpose

The purpose of the work is to study the essence of conflict as an economic category through the prism of the existing conceptual issues.

Methodology

The authors use the systemic approach for comprehensive, structured, and dynamic study of socio-economic systems. Within this approach, the method of classification is used, with the help of which the existing conceptual approaches to treatment of the essence of conflict as an economic category are determined and limited, and the method of comparative analysis, with the help of which the distinguished approaches are compared to each other. The information and analytical basis of the research is materials of the works of international authors on the issues of conceptual study of the essence of conflict as an economic category.

Conclusions

As a result of the research, it is determined that conflict – as an economic category – is described in detail by the concepts of the modern economic theory (e.g., the concept of state regulation of economy, the concept of innovations, and the concept of economic cycles) and is the object of a lot of research. At the same time, conflict – as an economic category – is studied fragmentarily within three alternative approaches – inter-subject, adaptive, and crisis, each of which focuses on a certain manifestation of conflict in economy: contradiction of interests of economic subjects with their interaction, lack of desire of economic subjects to adapt to changes, and failure in the socio-economic system. Within each of the above conceptual approaches to treatment of the essence of conflict as an economic category, reasons and consequences of conflicts are given, and specific managerial tools are offered.

Originality/value

Systemic study of conflict as an economic category, which unified all distinguished approaches, allowed determining conflict as a negative reaction of the economic system or its economic subjects to changes in economic reality, which is expressed at all levels of this system and is subject to management. The offered definition allows specifying the essence of the conflict of economic category and ensuring its systemic research.

Details

“Conflict-Free” Socio-Economic Systems
Type: Book
ISBN: 978-1-78769-994-6

Keywords

To view the access options for this content please click here
Book part
Publication date: 4 July 2019

Tatiana N. Litvinova and Irina A. Morozova

The purpose of the work is to specify the fundamental treatment of causal connections between conflicts in socio-economic systems.

Abstract

Purpose

The purpose of the work is to specify the fundamental treatment of causal connections between conflicts in socio-economic systems.

Methodology

Treatment of causal connections between conflicts in socio-economic systems by the existing concepts is determined. Contradictions of the existing concepts are determined and the existing knowledge on causal connections between conflicts in socio-economic systems within the new (authors’) concept of economic conflicts is systematized.

Conclusions

It is shown that conflicts in economy are not necessarily of the social nature (emerge due to subjective reasons – influence of “human factor,” weakness and/or imperfection of the social institute of interaction of economic subjects, and their interest in conflicts), as they could be caused by objective reasons – deficit of resources and imperfection of the model of development of socio-economic system. Consequences of conflict in a socio-economic system are determined by the result of its solution and are related not only to participants of the conflict but to the system on the whole.

Originality/value

It is substantiated that the most preferable (connected to positive consequences) option is failure of both participants of the conflict, its quick overcoming, elimination of “human factor,” and involvement of third party into the process of solving of the conflict. Due to this, interest in conflicts will be reduced (undesired conflicts will be eliminated), the model of development of socio-economic system will be improved, its sustainability will be raised, and social institutes of interaction between economic subjects in the system will be improved. Further development of specified foundations of the developed concept of economic conflicts envisages its classification.

Details

“Conflict-Free” Socio-Economic Systems
Type: Book
ISBN: 978-1-78769-994-6

Keywords

To view the access options for this content please click here
Article
Publication date: 12 November 2018

Darong Dai

The purpose of this paper is to use a variety-expanding growth model embedded in the North–South framework to study the implementation of globally desirable protection of…

Abstract

Purpose

The purpose of this paper is to use a variety-expanding growth model embedded in the North–South framework to study the implementation of globally desirable protection of intellectual property rights (IPRs) in the emerging South.

Design/methodology/approach

The authors use a variety-expanding growth model with innovation-led economic growth in both North and South. As usual, imitations targeted equally at Northern and Southern innovations only occur in the South, and the authors focus on the design of Southern IPR protection.

Findings

Welfare-maximizing degrees of Southern IPR protection are explicitly derived for both North and South. There tends to exist a North–South conflict on the right degree of protection. To resolve this conflict, the Southern government can grant appropriate subsides to support domestic innovators. The authors derive the right rate of innovation subsidies such that the conflict is resolved.

Originality/value

This paper represents the first attempt to deal with the North–South conflict on the degree of Southern IPR protection within the variety-expanding growth model. And the novel perspective is to relax the North–South tension on IPR protection via additionally implementing an appropriate innovation subsidy policy.

Details

Journal of Economic Studies, vol. 45 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Article
Publication date: 30 September 2014

Gai-Ge Wang, Amir Hossein Gandomi, Xin-She Yang and Amir Hossein Alavi

Meta-heuristic algorithms are efficient in achieving the optimal solution for engineering problems. Hybridization of different algorithms may enhance the quality of the…

Abstract

Purpose

Meta-heuristic algorithms are efficient in achieving the optimal solution for engineering problems. Hybridization of different algorithms may enhance the quality of the solutions and improve the efficiency of the algorithms. The purpose of this paper is to propose a novel, robust hybrid meta-heuristic optimization approach by adding differential evolution (DE) mutation operator to the accelerated particle swarm optimization (APSO) algorithm to solve numerical optimization problems.

Design/methodology/approach

The improvement includes the addition of DE mutation operator to the APSO updating equations so as to speed up convergence.

Findings

A new optimization method is proposed by introducing DE-type mutation into APSO, and the hybrid algorithm is called differential evolution accelerated particle swarm optimization (DPSO). The difference between DPSO and APSO is that the mutation operator is employed to fine-tune the newly generated solution for each particle, rather than random walks used in APSO.

Originality/value

A novel hybrid method is proposed and used to optimize 51 functions. It is compared with other methods to show its effectiveness. The effect of the DPSO parameters on convergence and performance is also studied and analyzed by detailed parameter sensitivity studies.

Details

Engineering Computations, vol. 31 no. 7
Type: Research Article
ISSN: 0264-4401

Keywords

Content available
Article
Publication date: 1 August 1998

Abstract

Details

Anti-Corrosion Methods and Materials, vol. 45 no. 4
Type: Research Article
ISSN: 0003-5599

Content available
Article
Publication date: 1 June 1999

Abstract

Details

Anti-Corrosion Methods and Materials, vol. 46 no. 3
Type: Research Article
ISSN: 0003-5599

Keywords

To view the access options for this content please click here
Article
Publication date: 30 July 2020

Seyyed Reza Nakhli, Monireh Rafat, Rasul Bakhshi Dastjerdi and Meysam Rafei

The purpose of the current paper is to analyze the simultaneous effects of oil sanctions and financial sanctions on Iran's macroeconomic variables in a small open economy…

Abstract

Purpose

The purpose of the current paper is to analyze the simultaneous effects of oil sanctions and financial sanctions on Iran's macroeconomic variables in a small open economy in the dynamic stochastic general equilibrium (DSGE) framework.

Design/methodology/approach

A DSGE model with the new Keynesian approach has been designed for the above mentioned purpose giving consideration to households, production, trade, oil, government and central bank sectors. All of the parameters were calibrated by using geometric means of macroeconomic variables in 2004–2017 as the steady-state values of the variables in the static model.

Findings

Amplifying the intensity of the oil sanctions reduces oil production due to decreasing investment, technology and export of oil and reduces the central bank's foreign reserves ratio to the money base that leads to an increasing exchange rate. Furthermore, oil sanctions decrease the government revenues due to a decrease in oil export and by the government imposing an expansionary fiscal policy in the form of increasing current expenditure and preserving construction expenditure to prevent deepening the recession, which causes budget deficit and then the issue of more bonds with a higher nominal interest rate. On the other hand, financial sanctions raise transaction costs and marginal costs in the trade sectors that lead to inflation and a decrease in nonoil export and various kinds of imports. Due to inflation and uncertainty, consumption of a household increases and investment expenditure of a household decreases.

Originality/value

To the best of the author's knowledge, few studies in the world have analyzed the economic effect of the sanctions in the framework of DSGE models. There is no study in Iran to date which investigates the effects of the sanctions in the form of a DSGE model. So, this paper is the first study in Iran and one of the few studies in the world using a DSGE model for analyzing the effects of sanctions. Imposing three kinds of oil sanctions in addition to a financial sanction is another innovation of the current paper.

Details

Journal of Economic Studies, vol. 48 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Article
Publication date: 1 October 2019

Dhruv Gupta

In this paper, the author develops a game theoretical model to understand why Union Government of India, as a third party, has used different schemes at different times in…

Abstract

Purpose

In this paper, the author develops a game theoretical model to understand why Union Government of India, as a third party, has used different schemes at different times in history to assist the State Governments in fighting the Naxalite insurgency. Comparing across schemes, it was found that though Matching Security Grants scheme was preferred in general, during asymmetric information scenario it led to an emergency situation wherein the Union Government had to provide the less preferred Bulk Security Grants. Later, it became difficult to withdraw these grants as the State Governments free rode by reducing own security contribution. The author finds that instead, in this scenario, Matching Development Grants are more suitable, as they incentivize the State Governments to reveal private information and help the Union Government exit its third-party role. For a practitioner involved in conflict resolution, these conclusions imply that as the desirability of policies can change diametrically overtime, Union Government must spend resources only on those heads of expenditure that provide both security and development benefits provided they aid in preventing flow of resources to Naxalites. Further, to end its assistance, the Union Government’s expenditures should also complement the capabilities of the State Government rather than substituting them. These results can also guide policy in other protracted civil wars with substantial third-party intervention, which are common these days.

Design/methodology/approach

The paper is an historical analysis of strategies used by Union and State Governments and Naxalites. The analysis is based on game theoretic tools supported with examples.

Findings

The Union Government must provide matching grants instead of bulk grants such as Central Armed Police Forces, and the grants should be aimed at building complementarities with the state governments’ security contributions. Under asymmetric information scenario, the Union and State Governments reduce their expenses incurred to fight the Naxalites. A Matching Development Grants scheme would have done better. Union Government must spend resources on heads of expenditure that provides both Development and Security benefits, to curb flow of resources to Naxalites, besides complementing the Security Contributions of the State Government.

Research limitations/implications

The research is limited by disaggregated data to test the hypotheses. It is also limited by the data on hidden variables like the contribution of the Naxalites to fighting. The research is also limited to the extent that individual groups in the war like police commanders, politicians and Naxalite commanders are not incorporated. Multiple asymmetric parties are also not considered; that may generalize the model to other theaters of insurgency.

Practical implications

Certain heads of expenditure such as roads, mobile communication, improving quality of investigation, preventing human rights violations by the security forces, etc. are both security and development enhancing. The Union Government's expenditures must be directed toward this end. Therefore, from a practitioner's perspective, the debate between greed and grievances exists not as a limitation but as a guide. The relevant articles of Constitution of India must be redrafted on these principles. Third-party interventions in other insurgencies may be revisited under these conclusions.

Social implications

Security and Development policies are tools for controlling Naxalite insurgency, which can also be used to prevent flow of resources to Naxalites. Security and development policies to resolving insurgencies are useful at different information scenarios. Therefore, information neutral policies should be preferred.

Originality/value

This paper has contributed theoretically in modeling continuing conflicts like Naxalite insurgency, explicitly. The author also shows that though the field of civil wars may have evolved along the Greed vs Grievance debate (Collier and Hoeffler, 2004), for a practitioner, the lines blur when it comes to solutions, as many heads of expenditures have features of both security and development. This paper also shows that when the Union Government faced asymmetric information scenario, the policy of matching development grants would be beneficial in long run though of limited value in short run. This is an important conclusion as the most intense period of violence was preceded by the asymmetric information scenario. Besides, it has relevance for the other civil wars with third-party intervention, such as NATO in Afghanistan.

To view the access options for this content please click here
Article
Publication date: 3 May 2016

Dimitrios Stergiou

This paper aims to investigate the financial aspects of the Islamic State of Iraq and Syria (ISIS), its sources of financing and the management of funds in a State-like apparatus.

Abstract

Purpose

This paper aims to investigate the financial aspects of the Islamic State of Iraq and Syria (ISIS), its sources of financing and the management of funds in a State-like apparatus.

Design/methodology/approach

It is argued that ISIS constitutes a phenomenon not only due to the extreme violence, instrumentalized via “marketing” methods but also on grounds of its declared aspiration to occupy and control land and population with ever expanding borders. After analyzing the group’s sources of funding which are closely interlinked to the areas it controls and its coordinated efforts to establish a proto-terror state framework, a strategy for addressing this threat based on international practices and decisions is being highlighted.

Findings

ISIS represents a “sui generis”, primarily self-funded State Scale Entity, a case study for Defense and Security Geo-economics. Its “economic model”, an amalgam of terrorist and criminal practices, could not be used for a viable proto-state it aspires to be.

Research limitations/implications

No official data of any kind are available by international recognized organizations or bodies. The sources for this paper are primarily Western media, journalists, indirect habitants’ testimonies and very few official reports.

Practical implications

Caution must be exercised, when using even trivial platforms of social media and mobile applications, linked even remotely with ISIS or its affiliates.

Originality/value

This paper is a comprehensive presentation of the economic facets of this first modern endeavor for a terror-state.

Details

Journal of Money Laundering Control, vol. 19 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

1 – 10 of 50