An empirical analysis of the influence of financialization on investment in Russia

This paper tries to estimate the impact of financialization on fixed investment in Russia. The work is carried out by using panel data based on reports of non-financial publicly listed companies for 1999–2019. The study finds that financial expenses aimed at paying interest on external financing and paying dividends — that is, focusing on shareholder value, and hence decreasing the internal funds of companies, reduce real investments. Financial incomes have shown the crowding-out effect for large companies. Financial incomes as additional “free” funds in large companies are not perceived as an opportunity to accumulate fixed assets. Managers prefer to increase ­financial investments instead of real ones. In small and medium-sized companies, financial incomes, however, drive the growth of physical investment. This is because small firms, at a particular stage in their lives, find it more profitable to invest in their own growth. The results from the general sample, without dividing by size, indicate that financialization in Russia clearly reduces real investment.

PHYSICAL INVESTMENT FINANCING IN THE CZECH CORPORATE SECTOR

The aim of this article is to identify the structure of physical investment financing in the Czech corporate sector. The data used in the conducted analyzes are derived from national accounts and more specifically the two accounts included in the accumulation accounts, ie.: the capital account and financial account. The article uses the methodology of net sources of finance initially developed by C. Mayer. It uses the flow of funds rather than stock data.

The Strategic Evolution of Value Chains Management and Corporate Reputation in Chinese Logistics Transport Value Market

China started its reform and open policy in 1978. Since then, the country has been transforming itself from a centrally planned economy to a market economy. The concept of ‘logistics’ was imported into China in the 1990s. Since then, logistics in China has witnessed a huge growth along with its fast growing economy. Logistics in China has accelerated since China’s entry to the WTO in November 2001. Prior to China’s entry, foreign logistics participations were regulated in most logistics sectors. Chinese logistics industry had been divided into sub-sectors where logistics activities were strictly regulated. After entry to the WTO, China has committed to a deadline to open its logistics markets. The priority accorded to industry stunted services development-particularly in productivity terms-while the emphasis on physical investment constrained investment in human capital [1].

Technological Changes, Investments, and Unemployment in Indonesia

The vicious circle of poverty in a country could stop if the government was able to solve the problem of unemployment. One way to reduce unemployment is to boost investment. In addition, in the era of the industrial revolution the role of technological development also needs to be considered as a means of reducing unemployment. This study is aiming to analyze the effect of physical investment, educational investment, and technological changes on unemployment in Indonesia. The data used in this study are obtained from Indonesian Central Statistics Agency (BPS). The technological development is proxied by Index of Technology and Communication. The regression method is used to reach the aim of the study. The result of the analysis indicates that the physical investment and technological development have a negative and significant effect on unemployment. Moreover, the findings suggest that the reduction in unemployment in Indonesia is caused by many people who become online motorcycle taxi drivers in the informal sector. Keywords: technology development, physical investment, educational investment, unemployment, panel data

The Effects of Physical and Non-physical Investments of Government Expenditure in Education and Health Sectors on Human Development Index in Pekanbaru City

In this current globalization era, human resources investment is necessary for each country to improve the index of human development and economic growth, many countries have succeeded in economic growth by relying on human resources despite not having abundant natural resources. However, the success of resource investment is also strongly influenced by the availability of supporting facilities and infrastructure. Based on data of physical and non-physical investments of government expenditure in education and health sectors from 2007-2017, shows a positive trend with relatively increasing value. Meanwhile, based on data of human development index progress in Pekanbaru city in recent years showed a relatively declining value. This contradicts the theory of endogenous romer which explained that when the government or private sectors invest in human resources, it will encourage the improvement of human resources quality that reflects the progress of human development index. This study uses secondary data, namely government physical and non-physical expenditure data in the field of education and health in Pekanbaru City on Regional Budget in 2010-2017. The independent variable is government physical and non-physical expenditure in education and health sectors. While the dependent variable is the Human Development Index. The analysis method used is OLS (Ordinary Least Square) method where the data used are analyzed quantitatively using statistical analysis, namely multiple linear regression equations. Based on the results of research, government physical expenditure in education and government non-physical expenditure in the health sector does not significantly influence the human development index in Pekanbaru City. While government non-physical expenditure in education and government physical expenditure in health significantly affect the human development index in Pekanbaru City. Furthermore, for physical investment where in this research is the government physical expenditure in education and health sectors simultaneously has a significant effect on the human development index in Pekanbaru City. Whereas for non-physical investment where in this study is government non-physical expenditure in education and health sectors simultaneously has a significant effect on the human development index in Pekanbaru City.

ECONOMIC TYPOLOGY APPROACH TO CALCULATE UNEMPLOYMENT INDEX AND REGIONAL POVERTY RATE (STUDY IN TAPAL KUDA AREA OF EAST JAVA)

The aims of this study is determining the level of unemployment index then linking the calculation of the unemployment and poverty index through mapping the economic typology, so in the end determining the form of government intervention on the solution of rigidity in the labor market and its relation to poverty in the residency area. The location of research is the area of East Java that called "Tapal Kuda". The research method used was a descriptive quantitative analysis of the location typology mapping by strengthening the results of calculation of index numbers and poverty. The results of the study reveal that the unemployment index for the majority of Tapal Kuda areas is said to be bad and has high poverty rates. This is inversely proportional to the potential of the Tapal Kuda area as a gateway for the distribution of goods and services, through an analytical approach, the availability of local community access to the economy is minimal, the lack of strengthening a community-based economy, the labor market is rigid, and wages are absorbed in the society with formal employment. The form of government policy recommendations is expected to strengthen the economy of society through local wisdom, bipartite strengthening between the government and companies with flexible wages. Reducing the amount of poverty can be done by stimulating wage policies, aligning the informal sector, strengthening MSMEs, reducing the consumption pattern of luxury goods, increasing per capita income through employment and increasing non-physical investment.

Financialization, financial development and investment. Evidence from European non-financial corporations

This article provides estimations of the effects of different financial channels on physical investment in Europe using the balance sheets of publicly listed non-financial corporations (NFCs) for the period 1995–2015. The evidence suggests that both financial payments and financial income have an adverse effect on investment in fixed assets. The negative impacts of increasing financial income are non-linear with respect to company size: they crowd out investment in large companies, and have a positive effect on the investment of relatively smaller companies. Similar to the recent literature on finance-growth nexus, we find an inverted U-shaped relationship between financial development and companies’ investment. However, in contrast to the existing literature, we also find that a higher degree of financial development in the country is associated with a stronger negative effect of financial income on investment.

Physical Investment Financing: The Cases of Poland and Latvia

The aim of the article is to present and compare the major sources of financing of physical investments in Poland and Latvia and to attempt to identify their determinants. The subject of the diagnosis is the corporate sector in Poland and i Latvia in the years 2005-2015.The article uses methodology, developed by C. Mayer, J. Corbett and T. Jenkinson, that is based on the net sources of finance. The financial data analysed in the article come from the capital and financial accounts, constituting the element of the integrated system of national accounts. Assuming that in a given period of time, the sources of finance (revenue) are equal to their use (expenditure), it is possible to estimate the structure of financing of physical investments in the corporate sector. The practical dimension of the analysis should be viewed as an indication for identifying changes in the area of financing of physical investments in enterprises in the two countries.