scholarly journals Effects of agricultural credit on wheat productivity of small farms in Sindh, Pakistan

2018 ◽  
Vol 78 (5) ◽  
pp. 592-610 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Feng Wei ◽  
Xu Guangshun
Keyword(s):  
Wheat Yield ◽  
Considerable Proportion ◽  
Small Scale ◽  
Small Farms ◽  
Short Term ◽  
Agricultural Credit ◽  
Data Set ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to evaluate the impact of short-term loan (STL) vs long-term loan (LTL) on wheat productivity of small farms in Sindh, Pakistan. Design/methodology/approach The econometric estimation is based on cross-sectional data collected in 2016 from 18 villages in three districts, i.e. Shikarpur, Sukkur and Shaheed Benazirabad, Sindh, Pakistan. The sample data set consist of 180 wheat farmers. The collected data were analyzed through different econometric techniques like Cobb–Douglas production function and Instrumental variables (two-stage least squares) approach. Findings This study reconfirmed that agricultural credit has a positive and highly significant effect on wheat productivity, while the short-term loan has a stronger effect on wheat productivity than the long-term loan. The reasons behind the phenomenon may be the significantly higher usage of agricultural inputs like seeds of improved variety and fertilizers which can be transformed into the wheat yield in the same year. However, the LTL users have significantly higher investments in land preparation, irrigation and plant protection, which may lead to higher wheat production in the coming years. Research limitations/implications In the present study, only those wheat farmers were considered who obtained agricultural loans from formal financial institutions like Zarai Taraqiati Bank Limited and Khushhali Bank. However, in the rural areas of Sindh, Pakistan, a considerable proportion of small-scale farmers take credit from informal financial channels. Therefore future researchers should consider the informal credits as well. Originality/value This is the first paper to examine the effects of agricultural credit on wheat productivity of small farms in Sindh, Pakistan. This paper will be an important addition to the emerging literature regarding effects of credit studies.

Does salience matter in investment decision?

Kybernetes ◽  
2019 ◽  
Vol 48 (8) ◽  
pp. 1894-1912
Author(s):  
Samra Chaudary
Keyword(s):  
Investment Decision ◽  
Investment Decisions ◽  
Equation Modeling ◽  
Individual Investors ◽  
Short Term ◽  
Content Type ◽  
Multigroup Analysis ◽  
Money Managers ◽  
The Impact

Purpose The paper takes a behavioral approach by making use of the prospect theory to unveil the impact of salience on short-term and long-term investment decisions. This paper aims to investigate the group differences for two types of investors’ groups, i.e. individual investors and professional investors. Design/methodology/approach The study uses partial least square-based structural equation modeling technique, measurement invariance test and multigroup analysis test on a unique data set of 277 active equity traders which included professional money managers and individual investors. Findings Results showed that salience has a significant positive impact on both short-term and long-term investment decisions. The impact was almost 1.5 times higher for long-term investment decision as compared to short-term decision. Furthermore, multigroup analysis revealed that the two groups (individual investors and professional investors) were statistically significantly different from each other. Research limitations/implications The study has implications for financial regulators, money managers and individual investors as it was found that individual investors suffer more with salience heuristic and may end up with sub-optimal portfolios due to inefficient diversification. Thus, investors should be cautious in fully relying on salience and avoid such bias to improve investment returns. Practical implications The study concludes with a discussion of policy and regulatory implications on how to minimize salience bias to achieve optimum and diversified portfolios. Originality/value The study has significantly contributed to the growing body of applied behavioral research in the discipline of finance.

How loan interest rate liberalization affects firms’ loan maturity structure

2014 ◽  
Vol 4 (2) ◽  
pp. 153-167 ◽  
Author(s):  
Jianfang Zhou ◽  
Jingjing Wang ◽  
Jianping Ding
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Manufacturing Companies ◽  
Short Term ◽  
Data Set ◽  
Content Type ◽  
Interest Rate Liberalization ◽  
Upper Limit ◽  
Maturity Structure

Purpose – After loan interest rate upper limit deregulation in October 2004, the financing environment in China changed dramatically, and the banks were eligible for risk compensation. The purpose of this paper is to focus on the influence of the loan interest rate liberalization on firms’ loan maturity structure. Design/methodology/approach – Based on Rajan's (1992) model, the authors constructed a trade-off model of how the banks choose long-term and short-term loans scales, and further analyzed banks’ loan term decisions under the loan interest rate upper limit deregulation or collateral cases. Then the authors used an unbalanced panel data set of 586 Chinese listed manufacturing companies and 9,376 observations during the period 1996-2011 to testify the theoretical conclusion. Furthermore, the authors studied the effect on firms with different characteristics of ownership or scale. Findings – The results show that the loan interest rate liberalization significantly decreases the private companies’ reliance on short-term loans and increases sensitivity to interest rates of state-owned companies’ long-term loans. But the results also show that the companies’ ownership still plays a key role on the long-term loans availability. When monetary policy tightened, small companies still have to borrow short-term loans for long-term purposes. As the bank industry is still dominated by state-owned banks and the deposit interest rate has upper limits, the effect of the loan interest rate liberalization on easing long-term credit constraints is limited. Originality/value – From a new perspective, the content and findings of this paper contribute to the study of the effect of the interest rate liberalization on China economy.

The impact of the reform of PIS/COFINS on the Brazilian industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Gomes Vasconcelos ◽  
Nelson Leitão Paes
Keyword(s):  
Design Methodology ◽  
Added Value ◽  
Neoclassical Model ◽  
Short Term ◽  
Content Type ◽  
Macroeconomic Indicators ◽  
Tax Distortions ◽  
The Impact ◽  
Two Sectors

PurposeIn an attempt to reduce tax distortions and increase economic efficiency, in 2002 and 2003 Brazil promoted changes in the PIS/COFINS tax, the main federal tax on consumption. Thus, in addition to the old cumulative regime calculated on company revenues, the noncumulative regime was created with higher rates and the added value as a tax basis.Design/methodology/approachThis paper analyzes the effects of the PIS/COFINS reform in a context of deindustrialization in the Brazilian economy, using a neoclassical model with two sectors.FindingsThe results suggest that after a small improvement in the aggregate economy in the short term, in the long term there was a worsening of the macroeconomic indicators. From the sector perspective, the PIS/COFINS reform may have contributed to the loss of industry participation in the Brazilian economy.Originality/valueThe study of the impact of the PIS/COFINS reform on industry through a neoclassical model is unprecedented in the national literature and contributes to the investigation of changes in the tax regime that occurred in the country.

A comparative analysis of the implications of the Islamic religion on corporate capital structures of firms in emerging market countries

2014 ◽  
Vol 7 (3) ◽  
pp. 277-287 ◽  
Author(s):  
Theresa Gunn ◽  
Joshua Shackman
Keyword(s):  
Emerging Market ◽  
Empirical Studies ◽  
Short Term ◽  
Content Type ◽  
Corporate Capital ◽  
Muslim Countries ◽  
Total Debt ◽  
Islamic Religion ◽  
The Impact

Purpose – The purpose of this study is to examine the impact of the Muslim religion on firm capital structure. Design/methodology/approach – The authors compare financing patterns in Muslim versus non-Muslim countries using 658 firms in 16 countries covering a period of seven years. Findings – No significant differences between Muslim and non-Muslim countries were found in terms of total debt ratios. However, significant differences were found in the choice of short-term versus long-term debt, with firms in Muslim countries showing a strong preference for short-term debt. Research limitations/implications – The findings confirm existing theories on the impact of the Islamic religion on short-term versus long-term debt preferences. However, the findings concerning the lack of an impact of the Islamic religion on total debt preferences are surprising and contrary to existing theories. Practical implications – Firms in Muslim countries appear to have the flexibility to adopt overall leverage ratios comparable to those in non-Muslim countries. However, firms in Muslim countries may be disadvantaged in that there appear to be impediments to the use of long-term debt. Originality/value – This paper presents one of the first empirical studies of the impact of the Muslim religion on corporate financing choices across a large cross-section of firms in Muslim and non-Muslim countries.

The colonial exports pattern, institutions and current economic performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tania El Kallab ◽  
Cristina Terra
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Resource Curse ◽  
Data Set ◽  
Content Type ◽  
Long Run ◽  
French Colonies ◽  
Colonial Institutions ◽  
The Impact

PurposeThis paper explores the role of colonial heritage on long-term economic development from a resource-curse perspective. The authors investigate the impact of colonial exports on long-term economic development through two channels: (1) a direct impact of the economic dependency on natural resources and (2) an indirect impact via its effect on colonial institutions, which persisted over time and influenced current economic development.Design/methodology/approachTo address this issue, the authors use an original data set on French bilateral trade from 1880 to 1912. The authors use partial least square structural equation modeling (PLS-SEM) in the empirical analysis, so that the authors are able to construct latent variables (LVs) for variables that are not directly observable, such as the quality of institutions.FindingsThe authors find that exports of primary goods to France had a negative impact on colonial institutions and that for French colonies, this impact was driven by minerals exports. Despite its impact on colonial institutions, exports of French colonies had no significant indirect impact on their current institutions. The authors find no significant direct impact of colonial trade on current development for French colonies. Finally, colonial exports of manufactured products had no significant impact on colonial institutions among French colonies and a positive impact among non-French ones.Research limitations/implicationsResearch implications regarding the findings of this paper are, namely, that the relative poor performance within French colonies today cannot be attributed to the extraction of raw materials a century ago. However, human capital and institutional development, instead of exports, are more relatively important for long-term growth. Some limitations in trying to determine the simultaneous relationship among colonial trade, institutions and economic performance are the relation between colonial trade and the extent of extraction from the colonizer, which is hard to quantify, as well as its precise mechanism.Practical implicationsSince the initial institutions set in those former colonies presented a strong persistence in the long run, their governments should focus now on building sound and inclusive political and economic institutions, as well as on investing in human capital in order to foster long-term growth. Once a comprehensive set of institutional and human resources are put in place, the quality and quantity of exports might create a positive spillover on the short-run growth.Social implicationsOne social implication that can be retrieved from this study is the ever-lasting effect of both human capital investment and introduction of inclusive political and economic institutions on the long-run impact of growth.Originality/valueThe paper uses an original primary data set from archival sources to explore the role of colonial heritage on long-term economic development from a resource-curse perspective. It applies a relatively new model partial least squares path modeling (PLS-PM) that allows the construction of LVs for variables that are not directly observable, as well as channeling the impact on growth through both direct and indirect channels. Finally, it allows for the simultaneous multigroup analysis across different colonial groups.

The procurement dilemma: short-term savings or long-term shareholder value?

2016 ◽  
Vol 37 (6) ◽  
pp. 10-17 ◽  
Author(s):  
Michel Philippart
Keyword(s):  
Corporate Strategy ◽  
Reference Group ◽  
Shareholder Value ◽  
Potential Contribution ◽  
Competitive Advantages ◽  
Short Term ◽  
Content Type ◽  
Functional Perspective ◽  
The Impact

Purpose Research has shown the potential contribution of properly managed suppliers to the competitive position of firms. Major strategy schools of thought such as the industry view and the resource-based view have evolved in their perspective about supplier’s contributions, replacing a transactional perspective of supplier management with a more comprehensive view of their role in corporate strategy. This study aims to understand if procurement professionals have evolved in the same direction. Design/methodology/approach During a corporate wide assessment for a large consumer product corporation, the author had the opportunity to incorporate a four-statement question aimed at identifying the perception of value creation by different levels of procurement staff. The answers were compared with responses of a reference group that comprised business school students who had never been exposed to professional procurement as a function or skill. Findings The results show that buyers, even at senior levels, more clearly identify value as the result of price negotiation, a functional perspective, than as the construction of sustainable competitive advantages, the shareholder perspective. They do not discriminate sufficiently between short-term transactional value transfer and long-term shareholder value capture. Research limitations/implications The study was conducted on a sample of 500 people from four continents but limited to a single corporate environment. This study focused on innovation as a source of value and competitive advantages. Originality/value The paper shows to corporate deciders the impact of overly cost-focused procurement departments. This study reinforces their need to better balance the objectives assigned to their procurement team. This study outlines the steps necessary to align the cultural competitiveness of procurement to the objectives of the firm, with an extended enterprise scope.

The impact of religiosity on corporate loans and maturity structure: evidence from China

2017 ◽  
Vol 29 (3) ◽  
pp. 307-329 ◽  
Author(s):  
Fansheng Jia ◽  
Yilin Zhang ◽  
Kam C. Chan ◽  
Sujuan Xie
Keyword(s):  
Design Methodology ◽  
Explanatory Variable ◽  
Private Firm ◽  
Local Culture ◽  
Short Term ◽  
Content Type ◽  
Maturity Structure ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to examine the relation between religiosity and formal financing in the context of long- and short-term corporate loans. Design/methodology/approach This paper uses archival methodology to conduct a multiple regression analysis with the amount of long- and short-term corporate loans as the dependent variable and a measure of religiosity as the key explanatory variable. Findings This paper offers four findings. First, when a private firm locates in a high religiosity region, it is more likely to get more corporate loans and the amount of corporate loans is positively correlated with the extent of religiosity. Second, religiosity drives a private firm getting more (less) short-term (long-term) loans. Third, a private firm in a high religiosity region is able to incur lower interest cost associated with more short-term loans. Finally, the results are confined to Buddhism, Taoism and Christianity. Practical implications Overall, the findings are consistent with the notion that religiosity shapes the local culture so that individuals, some of them are borrowers and lenders, show the religious traits in the formal lending and borrowing relationship. Originality/value Overall, findings of this paper are consistent with the notion that religiosity shapes the local culture so that individuals, some of them being borrowers and lenders, show religious traits in the formal lending and borrowing relationship.

Feedback trading strategies in international real estate markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chrysanthi Balomenou ◽  
Vassilios Babalos ◽  
Dimitrios Vortelinos ◽  
Athanasios Koulakiotis
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Short Term ◽  
Content Type ◽  
Real Estate Markets ◽  
The Real Estate ◽  
The Uk ◽  
The Impact ◽  
Feedback Trading

Purpose Motivated by recent evidence that securitized real estate returns exhibit higher levels of predictability than stock market returns and that feedback trading (FT) can induce returns autocorrelation and market volatility, the purpose of this study is to examine the impact of FT strategies on long-term market volatility of eight international real estate markets (UK, Germany, France, Italy, Sweden, Australia, Japan and Hong Kong). Design/methodology/approach Assuming that the return autocorrelation may vary over time and the impact of positive feedback trading (PFT) or negative feedback trading (NFT) could be a function of return volatility, the authors use a combination of a FT model and a fractionally integrated Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) model. Findings The results are mixed, revealing that both PFT and NFT strategies persist. Specifically, the authors detect PFT in the real estate markets of France, Hong Kong and Italy as opposed to the real estate markets of Australia, Germany, Japan and Sweden where NFT was present. A noteworthy exception is the UK real estate market, with important and rational FT strategies to sustain. With respect to the long-term volatility persistence, this seems to capture the mean reversion of real estate returns in the UK and Hong Kong markets. In general, the results are not consistent with those reported in previous studies because NFT dominates PFT in the majority of real estate markets under consideration. Originality/value The main contribution of this study is the investigation of the link between short-term PFT or NFT and long-term volatility in eight international real estate markets, symmetrically. Particular attention has been given to the link between short-term FT and long-term volatility, by means of a fractionally integrated GARCH approach, a symmetric one. Moreover, investigating the relationship between returns’ volatility and investors’ strategies based on FT entails significant implications because real estate assets offer a good alternative investment for many investors and speculators.

scholarly journals Competing priorities: lessons in engaging students to achieve energy savings in universities

2018 ◽  
Vol 19 (7) ◽  
pp. 1220-1238 ◽  
Author(s):  
Richard Bull ◽  
Joanna Romanowicz ◽  
Neil Jennings ◽  
Marina Laskari ◽  
Graeme Stuart ◽  
...  
Keyword(s):  
Energy Saving ◽  
Real Time ◽  
Behaviour Change ◽  
Energy Savings ◽  
Small Scale ◽  
Short Term ◽  
National Union ◽  
Content Type ◽  
Energy Dashboard ◽  
The Impact

PurposeThis paper aims to present findings from an EU-funded international student-led energy saving competition (SAVES) on a scale previously unseen. There are multiple accounts of short-term projects and energy saving competitions encouraging pro-environmental behaviour change amongst students in university dormitories, but the purpose of this research is to provide evidence of consistent and sustained energy savings from student-led energy savings competitions, underpinned by practical action.Design/methodology/approachA mixed-methods approach (pre- and post-intervention surveys, focus groups and analysis of energy meter data) was used to determine the level of energy savings and quantifiable behaviour change delivered by students across participating university dormitories.FindingsThis research has provided further insight into the potential for savings and behaviour change in university dormitories through relatively simple actions. Whilst other interventions have shown greater savings, this project provided consistent savings over two years of 7 per cent across a large number of university dormitories in five countries through simple behaviour changes.Research limitations/implicationsAn energy dashboard displaying near a real-time leaderboard was added to the engagement in the second year of the project. Whilst students were optimistic about the role that energy dashboards could play, the evidence is not here to quantify the impact of dashboards. Further research is required to understand the potential of dashboards to contribute to behavioural change savings and in constructing competitions between people and dormitories that are known to each other.Social implicationsSAVES provided engagement with students, enabling, empowering and motivating them to save energy – focusing specifically on the last stage of the “Awareness, Interest, Desire, Action” framework. Automated meter reading data was used in the majority of participating dormitories to run near real-time energy challenges through an energy dashboard that informed students how much energy they saved compared to a target, and encouraged peer-to-peer learning and international cooperation through a virtual twinning scheme.Originality/valueFindings from energy saving competitions in universities are typically from small-scale and short-term interventions. SAVES was an energy-saving competition in university dormitories facilitated by the UK National Union of Students in five countries reaching over 50,000 students over two academic years (incorporating dormitories at 17 universities). As such it provides clear and important evidence of the real-world long-term potential efficiency savings of such interventions.

scholarly journals The impact of burning on lion Panthera leo habitat choice in an African savanna

2013 ◽  
Vol 59 (3) ◽  
pp. 335-339 ◽  
Author(s):  
Stephanie Eby ◽  
Anna Mosser ◽  
Ali Swanson ◽  
Craig Packer ◽  
Mark Ritchie
Keyword(s):  
National Park ◽  
Habitat Choice ◽  
Territory Size ◽  
Short Term ◽  
Data Set ◽  
Burned Areas ◽  
The Impact ◽  
Term Data ◽  
Prey Attraction

Abstract Carnivores play a central role in ecosystem processes by exerting top-down control, while fire exerts bottom-up control in ecosystems throughout the world, yet, little is known about how fire affects short-term carnivore distributions across the landscape. Through the use of a long-term data set we investigated the distribution of lions, during the daytime, in relation to burned areas in Serengeti National Park, Tanzania. We found that lions avoid burned areas despite the fact that herbivores, their prey, are attracted to burned areas. Prey attraction, however, likely results from the reduction in cover caused by burning, that may thereby decrease lion hunting success. Lions also do not preferentially utilize the edges of burned areas over unburned areas despite the possibility that edges would combine the benefit of cover with proximity to abundant prey. Despite the fact that lions avoid burned areas, lion territory size and reproductive success were not affected by the proportion of the territory burned each year. Therefore, burning does not seem to reduce lion fitness perhaps because of the heterogeneity of burned areas across the landscape or because it is possible that when hunting at night lions visit burned areas despite their daytime avoidance of these areas.

Sign in / Sign up

Export Citation Format

Share Document