scholarly journals Capacity Reduction Pressure, Financing Constraints, and Enterprise Sustainable Innovation Investment: Evidence from Chinese Manufacturing Companies

2020 ◽  
Vol 12 (24) ◽  
pp. 10472
Author(s):  
Huan Chen ◽  
Tingyong Zhong ◽  
Jeoung Yul Lee
Keyword(s):  
Transition Period ◽  
Chinese Economy ◽  
Private Enterprises ◽  
Financing Constraints ◽  
Inhibitory Influence ◽  
Manufacturing Companies ◽  
Sustainable Innovation ◽  
Capacity Reduction ◽  
The Government ◽  
The Impact

Resolving the problem of excess production capacity through sustainable technological innovation is an important issue facing the Chinese economy in achieving high-quality development. The Guiding Opinions of the State Council on Resolving the Contradiction of Severe Overcapacity promulgated by the government in 2013 undoubtedly had a huge external impact on the traditionally competitive manufacturing market. This paper uses 6680 company-year sample observations of 1609 A-share manufacturing listed companies in China from 2010 to 2017 to examine the impact of capacity reduction pressure on ‘corporate sustainable innovation’ (the strategic response made by the enterprise administrator to cope with the impacts of the external environment including economic, social and environmental aspects) investment and the moderating role of financing constraints on this relationship. The research shows that after the promulgation of the Guiding Opinions, the degree of overcapacity had a significant positive effect on the R&D investment of enterprises, indicating that the policy to resolve overcapacity promoted their sustainable innovation investment. Such a phenomenon indicates that, to a certain extent, in the context of capacity reduction, companies have strong pressure and motivation to seek a way out through sustainable innovation. However, financing constraints have a significant inhibitory influence on the anti-forcing effect of the capacity reduction policy, indicating that the ability of enterprises to respond to external capacity reduction policies is subject to their own limited financing. Further investigation shows that capacity reduction pressure mainly promotes the sustainable innovation investment of private enterprises and has no significant impact on that of state-owned enterprises. This may be because private enterprises struggled more for survival during the transition period. The results of this paper provide a theoretical basis and reference value for the formulation of government policies and the development of enterprises.

scholarly journals Government Background Customers and Private Enterprise Innovation from the Perspective of Supply Chain Risk Transmission

2020 ◽  
Vol 12 (8) ◽  
pp. 3193 ◽  
Author(s):  
Zhanguang Chen ◽  
Qiaowan Wang ◽  
Chao Dou ◽  
Tian Liang
Keyword(s):  
Supply Chain ◽  
Market Economy ◽  
Private Enterprise ◽  
Government Procurement ◽  
Point Of View ◽  
Private Enterprises ◽  
Supply Chain Risk ◽  
Innovation Activities ◽  
The Government ◽  
The Impact

Private enterprises are major contributors to China’s market economy. In order to ensure the sustainability of economic development, China pays more attention to the role of science and technology in promoting the sustainability of the private economy. Based on a sample of all A-share listed companies in the Chinese capital market, we distinguished between government and non-government purchase order data, and examined the impact of large government background customers on private enterprise R&D innovation from the perspective of supply chain risk transmission. Due to the implementation of China’s new accounting standards and the delay in the public update of government procurement data, we selected samples from 2007‒2015. The research results show that the government background customers can significantly increase the R&D investment of private enterprises, and this relationship is more significant in the sample of mid-level government background customers and private enterprises in poor areas; further analysis found that government background purchase orders can promote innovation investment by mitigating the risks facing a company. From a practical point of view, the research findings of this paper are helpful for understanding the impact of customer structure on the innovation activities of enterprises in a market economy environment.

The Impact of Cost Sharing on Quality of Education in Egypt's Public Universities

2016 ◽  
pp. 58-84
Author(s):  
Engi Mohammed Mostafa Gamal Eldin
Keyword(s):  
Cost Sharing ◽  
Public Universities ◽  
Transition Period ◽  
Quality Of Education ◽  
Income Sources ◽  
Ex Post ◽  
Higher Education Financing ◽  
The Government ◽  
The Impact

Egypt government undertook forward steps to reform higher education financing by introducing cost sharing policies in public universities; however, the government did not take into consideration the urgency for developing monitoring and evaluation systems to measure the effects of such policies on the quality of education. This chapter aims to measure the impact of cost sharing policy on quality of education in “FLIP”, the underlying assumption of the research is that ‘tuition fees' as a form of user charge would result in increasing education quality, which will accordingly shrink the transition period between work and school by conducting an ex-post policy evaluation design due to the absence of baseline surveys. The research study eventually comes to an end that introducing the cost sharing policy in the form of FLIP in public universities has no significant effect on quality as fitness of purpose. Finally this chapter recalls for accompanying cost sharing policies in Egypt with value creation in quality rather than only diversifying the income sources beyond the government budget.

THE IMPACTS OF COVID-19 PANDEMIC ON THE GLOBAL SEMICONDUCTOR INDUSTRY

2021 ◽  
Vol 83 (4) ◽  
pp. 111-119
Author(s):  
Nor Aznan Mohd Nor ◽  
Keyword(s):  
Global Economy ◽  
Panic Attack ◽  
Negative Impact ◽  
Semiconductor Industry ◽  
Manufacturing Companies ◽  
New Normal ◽  
Standard Operating ◽  
Main Motive ◽  
The Government ◽  
The Impact

The impact of COVID-19 pandemic to manufacturing companies has been horrendous that panic attack has occurred among the companies, as well as semiconductor companies. Many companies have been declared bankrupt due to this pandemic and a new normal have been born such as remote working, following by certain Standard Operating Procedures (SOPs) implemented by the government to avoid infection of this COVID-19 virus and practice social distancing at the workplace. Apart from the new normal, there are some effects to the semiconductor companies in a way that could present a negative impact to the future of the companies. There are some drastic measures being implemented to adapt with the new normal as well as keeping the production running as usual. The main motive of analyzing the current situation is to avoid complete down fall of production of semiconductor companies which may affect the global economy.

Transition and Reform: What Effect Does Resource Abundance Have?

10.1068/b2657 ◽  
2000 ◽  
Vol 27 (3) ◽  
pp. 349-363 ◽  
Author(s):  
Anil Markandya ◽  
Alina Averchenkova
Keyword(s):  
Social Conflict ◽  
Transition Period ◽  
Criminal Activity ◽  
Poor Performance ◽  
Transition Process ◽  
Well Being ◽  
Resource Abundance ◽  
Transition Experience ◽  
The Government ◽  
The Impact

The transition experience in Russia in the 1990s has produced benefits for some people, but it has not generally been a happy one. The level of GDP is well below what it was at the beginning of the period, inequality has increased very sharply, and other indicators of well being, such as crime and human health, have deteriorated significantly. Much of this is not unique to Russia; many of the other transition countries have faced similar problems. Although Russia was not the worst performer for many of the indicators, one might have expected better given its initial advantages, especially the immense natural resource wealth. In this paper we seek to understand why the transition process has been difficult in Russia, and in particular to what extent these difficulties arise from its resource-rich status. Three hypotheses are analysed. First is the view that resource-abundant countries are slow to make reforms as they have a cushion of rents to rely on. The second explanatory factor is the impact of resource abundance on the real exchange rate. The last factor is a social one. Resource abundance creates social conflict, as the benefits from this are unequally distributed. Although all three factors have played some part in explaining the relatively poor performance of Russia during the transition period, in our view the last explanation is the most potent. For the future, the government must pay the highest attention to reducing the social conflict. This requires a crackdown on corruption and criminal activity. Furthermore, when reforms are introduced, the government must ensure that these are not used as a vehicle for a few people to extract more rents from the system. A more careful accounting of the rents from natural resources, allocating them to the highest value uses in a transparent way, would clearly be beneficial.

scholarly journals Carbon Emission Disclosure in Indonesia’s Manufacturing Companies

2020 ◽  
pp. 148-154
Author(s):  
Muhammad Bayu Triansyah ◽  
◽  
Mohamad Adam ◽  
Tertiarto Wahyudi ◽  
◽  
...  
Keyword(s):  
Carbon Emissions ◽  
Carbon Emission ◽  
Gender Diversity ◽  
Company Size ◽  
Manufacturing Companies ◽  
The Government ◽  
Business Entities ◽  
And Gender ◽  
Company Growth ◽  
The Impact

In Indonesia, the government invites business actors to jointly reduce greenhouse gas emissions through disclosure of carbon emissions. Disclosure of carbon emissions in Indonesia is still voluntary (voluntary disclosure), so not all companies disclose this information in their reports. The purpose of this article is to assess the impact of factors such as company size, profitability, company growth, environmental committees, and gender diversity on carbon emission disclosure by Indonesia’s manufacturing companies. For the study, the authors selected 16 manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The activities of these companies are the subject of study. To measure the extent of the carbon emission disclosure, a checklist is developed based on the measurement sheet provided by the Carbon Disclosure Project (CDP). The CDP is an organisation based in the United Kingdom which supports companies and cities to disclose the environmental impact of major corporations. The main idea of the project is that environmental reporting and risk management should become a business norm in order to ensure sustainable development of the economy. The study results show that company size has an effect on the level of carbon emission disclosure. The bigger is the company – the greater is the pressure that results from its economic activities. Therefore, the government and the public pay more attention to such business entities. It prompts the company to disclose its carbon emissions. At the same time, such factors as profitability, company growth, environmental committee and gender diversity do not affect on carbon emission disclosure. It was found that the level of carbon emission disclosure among Indonesia’s manufacturing companies is very low, and therefore the government and society need to take measures to increase the responsibility of business entities for environmental pollution.

scholarly journals ANALISIS PROFITABILITAS PERUSAHAAN MANUFAKTUR YANG GO PUBLIC YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) SEBELUM DAN SESUDAH DIBERLAKUKANNYA UU PPH NO. 36 TAHUN 2008

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Jessica Fergie Marentek ◽  
Inggriani Elim ◽  
Treesje Runtu
Keyword(s):  
Global Financial Crisis ◽  
Stock Exchange ◽  
Profit Margin ◽  
Manufacturing Companies ◽  
Paired Samples ◽  
A Value ◽  
Significant Difference ◽  
The Government ◽  
The Global Financial Crisis ◽  
The Impact

In order to deal with the impact of the global financial crisis, the government lowered the tax rates at the rate of 28% starting in 2009 and will be 25 % starting in 2010. It aims to support the state revenues from taxation so it become more stable. Ratio of profitability that researchers used in this study is Gross Profit Margin, Operating Profit Margin, Return On Investment, and Return On Equity. Researchers conducted the study using descriptive statistical analysis methods with data taken from Indonesia Stock Exchange (IDX), and processed using SPSS v.20 compare means-paired samples T-test program. The samples are 60 manufacturing companies in 2009 and 2010. The results showed that there was no significant difference between the GPM in 2009 and 2010 with a value of thitung < ttable (1.729 < 2.045) at α = 0.05 . The results also showed that there was no significant difference between the OPM in 2009 and 2010 with a value of thitung < ttable (0.230 < 2.045) at α = 0.05. The results also showed that there was no significant difference between the ROI in 2009 and 2010 with a value of thitung < ttable (0.044 < 2.045) at α = 0.05. And the results of the study also showed that there was no significant difference between the ROE in 2009 and 2010 with a value of thitung < ttable (0.417 < 2.045) at α = 0.05 .

Monetary policy, financing constraints and investment efficiency

2016 ◽  
Vol 7 (1) ◽  
pp. 80-98 ◽  
Author(s):  
Dongping Han ◽  
Peng Zhang
Keyword(s):  
Monetary Policy ◽  
Market Process ◽  
Private Enterprises ◽  
Financing Constraints ◽  
Investment Efficiency ◽  
Content Type ◽  
Management Capacity ◽  
Internal Management ◽  
The Government ◽  
External Management

Purpose – This paper aims to analyze the different impacts of monetary policy on the financing constraints of diverse enterprises from China by introducing the concepts of external and internal management factors, and on the investment efficiency of these enterprises with the help of “Hayek Triangle”. Design/methodology/approach – Based on the concept of human action, this paper builds an empirical model which is remarkably different from previous related researches and conducts an empirical test by using the chosen sample data of 312 Chinese listed private companies from 2003 to 2012. Findings – This paper shows that owing to the differences of management capacity of diverse enterprises, under the condition of the governmental micro-economic intervention in the allocation of credit funds, the loose monetary policy relieves the financing constraints confronted by the enterprises with better external management capacity, and aggravates the financing constraints confronted by the enterprises with better internal management capacity. This paper also shows that the loose monetary policy will distort the market interest rate signal, which in turn falsely directs the enterprises to divert resources from short-term to long-term investment projects. Research limitations/implications – These findings mean that under the condition of the loose monetary policy, contrasted with the private enterprises with better internal management capacity, the investment efficiency of the private enterprises with better external management capacity will be lowered because they are able to acquire more credit funds preferentially and readily. Practical implications – This paper argues that the government should strengthen the ex-post property rights protection for financial transactions, reduce the micro-economic intervention in the credit funds allocation and improve the marketization level of the financial deals. Also, the government should prudently regulate macro-economy by monetary policy. Originality/value – This paper is mainly based on the market process theory of Austrian School, and therefore initiates a totally new perspective for the research of corporate financing.

scholarly journals China's Economic Policy in the Time of the Global Financial Crisis: Which Way Out?

2009 ◽  
Vol 38 (3) ◽  
pp. 165-181 ◽  
Author(s):  
Margot Schüller ◽  
Yun Schüler-Zhou
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Chinese Economy ◽  
Chinese Government ◽  
Current Crisis ◽  
The Government ◽  
The Global Financial Crisis ◽  
The Impact

This contribution analyses the impact of the global financial crisis on the Chinese economy and the policies implemented by the Chinese government to cope with it. We argue, first, that China has not been able to decouple its economic performance from that of the U.S. and other developed countries. Second, although economic growth in the second quarter of 2009 showed that the stimulus package is working, the current development does not seem to be sustainable. In order to avoid another round of overheating, the government needs to adjust its stimulus policy. Third, the current crisis offers opportunities to conduct necessary structural adjustments in favour of more market-based and innovative industries, more investment by private companies and a stronger role of private consumption in economic growth. Fourth, with the external demand from the OECD countries declining, Chinese export companies need to further diversify their international markets and reorient their production and sales strategies to some extent towards the domestic market.

scholarly journals FINANCING DEVELOPMENT, FINANCING CONSTRAINT AND R&D INVESTMENT OF STRATEGIC EMERGING INDUSTRIES IN CHINA

2020 ◽  
Vol 21 (4) ◽  
pp. 1010-1034
Author(s):  
Ke Xu ◽  
Chengxuan Geng ◽  
Xiaoshu Wei ◽  
Huifeng Jiang
Keyword(s):  
Stock Market ◽  
Financial Development ◽  
Financing Constraints ◽  
Firm Characteristics ◽  
Financial Intermediary ◽  
Emerging Industries ◽  
Financing Constraint ◽  
The Government ◽  
The Impact ◽  
D Investment

Taking listed companies of strategic emerging industries as the research subject, this paper uses KZ index to measure the degrees of financing constraints and financial intermediary as well as the stock market to represent the level of financial development. Then empirical models are constructed to analyse whether financial development can alleviate the financing constraints of R&D investment or not. Finally, the paper further investigates the interaction of financial development and firm characteristics (including firm size, ownership nature and establishment time) on the impact of R&D investment. The results show that the degree of financing constraint is negatively correlated with R&D investment. Both the development of financial intermediary and stock market play an important role in alleviating the R&D financing constraints, and the development of the stock market can better alleviate the R&D financing constraint. Moreover, the development of financial intermediary and stock market plays a heterogeneous role among enterprises of different size, nature and time of establishment. In order to achieve the 13th Five-year Plan target of strategic emerging industries in China, the government and enterprises need to work together to improve the financial development level and reduce information asymmetry, so as to expand the investment channels of R&D investment and improve their innovation capability and competitiveness.

scholarly journals Government Regulation, Technology and Development of SME-s

2016 ◽  
Vol 1 (3) ◽  
pp. 28
Author(s):  
Sorina Koti ◽  
Klaudeta Merollari
Keyword(s):  
Government Regulation ◽  
Transition Period ◽  
Foreign Direct Investments ◽  
Business Climate ◽  
Monetary Policies ◽  
East Europe ◽  
Foreign Companies ◽  
South East Europe ◽  
The Government ◽  
The Impact

The aim of the paper is to analyze the factors that determine business growth and the impact on the GDP of the country. The paper analyses Albania, as one of the countries in the South East Europe. Albania is still passing through a transition period at all levels, economic and political. Albania has made serious steps in the development of the state of law, of the financial system and it is working on the achievements of goals, such as: becoming an EU member, stabilization of the fiscal and monetary policies, stability of prices, fighting against corruption, incentives for private investments, reduction of business’s taxes etc. The achievement of these goals will bring more motivation and incentives for growth, an increase in domestic and foreign direct investments. The government of Albania is still working on the future strategies that will bring Albania near to the European countries. The partial achievement of the above goals has created a positive environment, but still there is enough room for change and stabilization. The Albanian governments have improved the business climate, in order to create easier methods in the way of doing business, by attracting more foreign investors and creating a positive climate. Albania has experienced an increase of interest from foreign companies, which have invested in the main fields of economic such as: banking, energy, telecommunication, gas-oil, supermarkets, construction etc. However, some fiscal policies have changed during the last three years, which has caused a tightening of credit, investment, growth and income. Nowadays, Albania is not in a good position compare to neighborhood countries and it is facing recession problems that need immediate solution to overcome the crisis.

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