Significance of Social Capital and Risk Sharing

2015 ◽  
Keyword(s):  
Social Capital ◽  
Risk Sharing

Social Capital and Risk Sharing

2015 ◽  
Author(s):  
Adam Ng ◽  
Abbas Mirakhor ◽  
Mansor H. Ibrahim
Keyword(s):  
Social Capital ◽  
Risk Sharing

On building social capital for Islamic finance

2015 ◽  
Vol 8 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Adam Ng ◽  
Mansor Ibrahim ◽  
Abbas Mirakhor
Keyword(s):  
Social Capital ◽  
Financial Development ◽  
Risk Sharing ◽  
Design Methodology ◽  
Empirical Studies ◽  
Financial System ◽  
Islamic Finance ◽  
Investment Opportunity ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this paper is to set forth seven broad recommendations and 15 specific initiatives within a four-dimensional framework for the development of social capital in Islamic finance, particularly the stock market, given its role as the first best means of risk sharing. Design/methodology/approach – The four-dimensional framework comprises dimensions of principle and value, trust-reinforcing regulation, investment opportunity and infrastructure, as well as reputational intermediaries. Findings – A web of multi-pronged initiatives that are mutually reinforcing is proposed considering the multifaceted dimensions of social capital and the various possible transmission channels by which social capital can influence the financial system. Practical implications – While empirical studies have demonstrated the importance of trust and ethics in financial development, the pressing issue remains how social capital, including trust and ethics, can be developed to achieve a trustworthy, ethical and efficient financial system. This paper attempts to address this concern. Originality/value – This paper provides a framework for building social capital in Islamic finance.

The Role of Social Capital in Risk-Sharing

2013 ◽  
Vol 8 (3) ◽  
pp. 359-383 ◽  
Author(s):  
Ivica Petrikova ◽  
Dhruv Chadha
Keyword(s):  
Social Capital ◽  
Risk Sharing

scholarly journals The Influence of the Configuration Effect of Social Capital and Knowledge Absorptive Capacity on the Cooperation Intensity of Cooperatives Participating in Agricultural Industrialization Consortia

2021 ◽  
Vol 251 ◽  
pp. 01060
Author(s):  
Wenziyi Zhang ◽  
Xueshun Wang ◽  
Hong Yang ◽  
Xiao Hu
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Risk Sharing ◽  
Qualitative Comparative Analysis ◽  
Benefit Sharing ◽  
Driving Mechanism ◽  
Agricultural Industrialization ◽  
Research Perspective ◽  
Influence Mechanism ◽  
Close Cooperation

Agricultural industrialization consortia fully realize the organizational advantages of division of labor, risk sharing, and benefit sharing, which mainly rely on close cooperation of members under integrated governance, but the current influence mechanism on the intensity of cooperation is yet to be explored in depth. Using 40 member cooperatives of agricultural industrialization consortia in Sichuan Province as research samples, this paper explores the mechanism by which the configuration effects of five conditional factors at the levels of social capital and knowledge absorptive capacity can generate different cooperative intensity of cooperative participation in consortia using fuzzy set qualitative comparative analysis. It was found that (1) the driving mechanism of high cooperative intensity of cooperatives was divided into three paths; (2) the driving mechanism of non-high cooperative intensity of cooperatives was divided into two paths and had an asymmetric relationship with the driving mechanism of high cooperative intensity of cooperatives. The findings of this paper help to expand the research perspective on cooperative intensity at the level of social capital and knowledge absorptive capacity configuration, and provide useful insights for improving the cooperative intensity of cooperative participation in consortia and the cooperative tightness among consortium members.

scholarly journals Harnessing Social Capital for Resilience to Livelihood Shocks: Ethnographic Evidence of Indigenous Mutual Support Practices among Rural Households in Eastern Ethiopia

2017 ◽  
Vol 2017 ◽  
pp. 1-26
Author(s):  
Getachew Shambel Endris ◽  
Paul Kibwika ◽  
Jemal Yousuf Hassan ◽  
Bernard B. Obaa
Keyword(s):  
Social Capital ◽  
Risk Sharing ◽  
Rural Households ◽  
Rural Poverty ◽  
Mutual Support ◽  
Eastern Ethiopia ◽  
Collective Risk ◽  
Support Practices ◽  
Social Safety Nets

In the absence of adequate support from formal social safety nets, rural households in Ethiopia have developed collective risk-sharing strategies to buffer them against adverse livelihood shocks, thus building their resilience capacities. Social capital and network based indigenous mutual support arrangements are the most important strategies that are institutionalized and widely practiced among rural households for centuries in Ethiopia to support households to cope with shocks. Nonetheless, resilience research and rural poverty alleviation policies have yet to fully recognize and embrace social capital as a tool to tackle poverty and vulnerability. Robust policy and academic studies on the role of indigenous welfare system with implications for social development policy making in Ethiopia are lacking. Using ethnographic techniques and simple descriptive statistics, we studied indigenous mutual support systems and how they shape the resilience trajectories of rural households against livelihood shocks within two selected PAs of Babille district of Oromia region. We found that mutual support practices are very effective in building coping resilience of households by smoothing consumption shocks. However, the traditional coping mechanisms often fail when the shock is systemic or covariate, when shocks last longer, and when a household has low level of human or finical capital.

Contextualizing and Developing Social Capital in Risk-Sharing Finance

2013 ◽  
Author(s):  
Adam Ng ◽  
Mansor H Ibrahim ◽  
Abbas Mirakhor
Keyword(s):  
Social Capital ◽  
Risk Sharing

scholarly journals Risk and Income Evaluation Decision Model of PPP Project Based on Fuzzy Borda Method

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Longbo Du ◽  
Jing Gao
Keyword(s):  
Decision Making ◽  
Social Capital ◽  
Risk Sharing ◽  
Investment Risk ◽  
Research Results ◽  
Effect Theory ◽  
Project Risks ◽  
Project Participants ◽  
The Government ◽  
The Impact

In order to effectively analyze the risk-return decision-making model of PPP project by Yuan et al., (2020) this paper, based on the fuzzy Borda method and synergy effect theory, considers the synergistic effect of PPP project, constructs the model of investment risk sharing, incentive, and supervision punishment, and determines the investment risk sharing, incentive, and PPP project investment. This paper also aims to supervise and punish the decision-making mechanism to achieve the goals of the PPP project. The research results show that the increased synergy of project participants not only reduces the impact of investment risk on project revenue but also promotes project participants to increase their willingness to undertake risks, actively undertake project risks, and achieve synergy effects of PPP projects. Through the cooperation of both parties, the total income of PPP projects is increased. The research results show that the government chooses social capital participants with complementary advantages to form synergy as shown by Jiang et al. (2016); with the increase of synergy, the government needs to increase the incentive intensity, improve the performance behavior of social capital participants as proposed by Junlong et al. (2020), curb their speculation, and promote the two sides. Due to the increased synergy and the willingness of social capital participants to increase cooperation and reduce speculation, the government should reduce the intensity of supervision and punishment.

Significance of Social Capital and Risk Sharing

2015 ◽  
pp. 1-11 ◽  
Author(s):  
Adam Ng ◽  
Abbas Mirakhor ◽  
Mansor H. Ibrahim
Keyword(s):  
Social Capital ◽  
Risk Sharing

Do more structural holes lead to more risk propagation in R&D networks?

2020 ◽  
Vol 58 (1) ◽  
pp. 39-57 ◽  
Author(s):  
Yue Song ◽  
Naiding Yang ◽  
Yanlu Zhang ◽  
Jingbei Wang
Keyword(s):  
Social Capital ◽  
Risk Perception ◽  
Risk Sharing ◽  
Theoretical Perspective ◽  
Tie Strength ◽  
Clear Understanding ◽  
Specific Context ◽  
Structural Holes ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is twofold: first, to explore how the number of structural holes influences the possibility of risk propagation in R&D networks; and second, to investigate how the specific context of tie strength and common cognition moderate the association between structural holes and risk propagation. Design/methodology/approach This study focuses on how structural holes influence risk propagation under the specific context of relationship and cognitive dimension by drawing on social capital theory. Risk sharing and risk perception as mediating variables are employed in the proposed conceptual model. The authors issued questionnaires to managers and R&D personnel participating in R&D projects and collaboration in Shanghai and Jiangsu province through e-mail and face to face. The data were used to carry out multiple regression analysis to test hypotheses. Findings The results show that relationship between structural holes and risk propagation of R&D network is U-shaped. Risk perception and risk sharing partially mediate the relationship between structural holes and risk propagation. Tie strength significantly moderates the relationship between structural holes and risk sharing, but insignificantly moderates the association between structural holes and risk perception. Common cognition significantly moderates the associations between structural holes and risk sharing, and structural holes and risk perception, respectively. Originality/value This study provides a distinctive theoretical perspective for social capital and risk management. It also offers managers a clear understanding of how to reduce or to avoid risk propagation by jointly leveraging the number of structural holes, tie strength and common cognition.

scholarly journals Peranan social capital dalam memelihara keberlanjutan agribisnis jagung

2015 ◽  
Vol 28 (3) ◽  
pp. 139
Author(s):  
Jajat Sudrajat ◽  
Jangkung Handoyo Mulyo ◽  
Slamet Hartono ◽  
Subejo Subejo
Keyword(s):  
Social Capital ◽  
Risk Sharing ◽  
Agricultural Development ◽  
Group Discussion ◽  
Household Labor ◽  
Economic Resources ◽  
Primary Data ◽  
Long Run ◽  
The Social

Study the role of social capital on nurturing of agribusiness sustainability is still limited. Whereas, the indepth understanding toward the role of social capital in facilitating cooperation on relationships among institutions (actors) of agribusiness is very important and strategic for planning of agricultural development. This study is aimed to describe the role of social capital in facilitating cooperation on relationships among marketing institutions of corn in Tujuh Belas sub district, Bengkayang regency. The primary data were collected by observation, focus group discussion, and indepth interview to farmers and traders. The result of this study shows that the implementation of social capital element in farming activities or agribusiness in this location, generally based on effort of resources exchange among actors. On the relationships among the farmers, social capital is implemented by exchange of household labor (strict and sort term reciprocity). Meanwhile, in relationships between farmer and village trader and also between village trader and wholesaler, the social capital is implemented by exchange of economic resources. The exchange of resources is frequent implemented by trial risk, risk sharing, and applying flexibility in any type of transaction (non strict reciprocity in the sort term). This resources’s exchange is understood as effort to nurture agribusiness sustainability in the long run.

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