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Substantial R &D efforts are currently directed towards the development of combined heat and power (CHP) systems that automatically and seamlessly connect to the power grid. In this paper we develop a real options model to assess the impact that the operational flexibility characterizing such systems will have on the optimal timing and capacity associated with investments in CHP plants. We take the viewpoint of a manufacturer operating in an energy-intensive industry who contemplates investing in CHP. We discuss and compare investments in two types of CHP systems: a standard one that is operationally rigid and a technologically advanced one that is operationally flexible. The interaction between temporal and operational flexibility under uncertainty and irreversibility is central to our analysis. We show that operational flexibility guarantees earlier investment but has an ambiguous effect in terms of capacity. In particular, when operational flexibility is very valuable the potential investor is opting for investing in a plant with larger productive capacity. The potential investor chooses a smaller CHP unit if otherwise. A numerical exercise calibrated using data from the Italian pulp and paper and electricity industries complements our theoretical analysis. [ABSTRACT FROM AUTHOR]

Paper-based packaging is a complex multi-material composed of paper (fibers), plastics, and metals, making efficient material recycling complicated. Currently, most of the fibers are recycled into new paper products while the residual material is commonly incinerated. Therefore, to improve the circularity and reduce the fossil dependency chemical recycling is needed. In this study, recycling of the residual materials was evaluated by thermal and catalytic pyrolysis. First, screening tests were performed using five reject materials and four catalysts in an analytical scale and then, a selection of catalyst and reject materials were evaluated in lab-scale followed by a techno-economic assessment. Experimental results indicated that the conversion was more efficient if the reject had high content of plastics compared to fibers, leading to products with increased heating value, higher hydrocarbon yield and less reactive oxygenates compared to the rejects with low plastic ratio. In the thermal pyrolysis 54 % of the weight of the feedstock and 70 wt% of the carbon in the feedstock ended up in a solid organic product (wax) which contained hydrocarbons and alcohols. In the analytical catalytic pyrolysis, HZSM-5 gave the best result in terms of cracking, deoxygenation, and aromatization. Ex-situ catalytic pyrolysis using HZSM-5 resulted in an improved quality of organic liquid with reduced hydrocarbon length as well as deoxygenated and aromatic compounds. The yield of the organic liquid was up to 19 wt% and contained mainly monoaromatics. The techno-economic evaluation showed, for processing 100,000 tons year−1 residual material, the total plant investment and the annual profit are about 29 and 12 million Euros, respectively, if no incentive for treating the residual material. [Display omitted] • Recycling of multi-material packaging waste via thermal and catalytic pyrolysis. • The higher polymer to biomass ratio in the waste, the more efficient conversion. • Thermal pyrolysis generated up to 54 wt% of condensed solids, mainly hydrocarbons. • Catalytic pyrolysis yielded up to 19 wt% of organic liquid, mainly monoaromatics. • Catalytic pyrolysis is economically feasible if the feed rate is ≥ 10,000 tons/year. [ABSTRACT FROM AUTHOR]

Employing the exogenous scenario of the “New Rules on Asset Management” in April 2018, this paper tries to explore the impact of the contraction of Chinese shadow banking on corporate investment behavior. This paper finds that the regulation leads to a 18.3% decrease in capital expenditure for firms relying on shadow banking system prior to the shock. Then, this paper tests three underlying mechanisms, which include the decrease of corporate borrowing, the increase of corporate financing constraints and the reduction of debt maturity. This paper also provides the empirical evidence that the implementation of the “New Rules on Asset Management” optimizes the allocation of capital across firms. [ABSTRACT FROM AUTHOR]

This paper assesses the growth-enhancing and growth-retarding effects of different budgetary fiscal variables using a balanced panel of 32 middle-income countries for the time period of 2000–2017. Much of previous research requires to be re-evaluated as it ignores the biases associated with either incomplete or wrong specification, or both, of the budget constraint and the money supply. This paper addresses these gaps and obtains more unbiased, consistent and efficient estimates for the fiscal variables, using both static and dynamic panel econometric techniques. Specifically, this paper finds that (1) larger tax and non-tax revenues retard economic growth; (2) higher allocation to public capital expenditure appears to have positive and significant effect on growth; (3) fiscal deficit appears to have neutral-growth effects; and (4) controlling broad money supply corrects for biases in the orthogonal specification. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate how to identify and address production levelling problems in assembly lines utilising an intensive manual workforce when higher productivity levels are urgently requested to meet market demands. Design/methodology/approach: A mixed-methods approach was used in the research design, integrating case study analysis, interviews and qualitative/quantitative data collection and analysis. The methodology implemented also introduces to the literature on operational performance a novel combination of data analysis methods by introducing the use of the Natural Language Understanding (NLU) methods. Findings: First, the findings unveil the impacts on operational performance that transportation, limited documentation and waiting times play in assembly lines composed of an intensive workforce. Second, the paper unveils the understanding of the role that a limited understanding of how the assembly line functions play in productivity. Finally, the authors provide actionable insights into the levelling problems in manual assembly lines. Practical implications: This research supports industries operating assembly lines with intensive utilisation of manual workforce to improve operational performance. The paper also proposed a novel conceptual model prescriptively guiding quick and long-term improvements in intensive manual workforce assembly lines. The article assists industrial decision-makers with subsequent turnaround strategies to ensure higher efficiency levels requested by the market. Originality/value: The paper offers actionable findings relevant to other manual assembly lines utilising an intensive workforce looking to improve operational performance. Some of the methods and strategies examined in this study to improve productivity require minimal capital investments. Lastly, the study contributes to the empirical literature by identifying production levelling problems in a real context. [ABSTRACT FROM AUTHOR]

When solving problems related to capital investments in the company, it is necessary to work out the problem in detail and take into account as many influential parameters as possible in order to make the optimal decision. One such problem is the selection of the main warehouse location for the needs of a given company with dispersed centers. Multi-criteria decision-making methods can be applied to successfully solve such complex problems. In this paper, the EDAS method will be applied to achieve the optimal selection of the location of the main warehouse in a company with several dispersed centers. [ABSTRACT FROM AUTHOR]

The paper analyzes the interaction of economic growth and inflation rate on accounting for both sources of capital investment and global shocks. The analysis method is a time-varying coefficient Bayesian vector autoregression (TVC-BSVAR) model applied in a quarterly data sample of the Vietnam economy over Q2/2001–Q4/2022. The global factors, including the world economic growth and the inflation rate, are the most important drivers of domestic growth and inflation rate. A greater world growth rate raises the domestic growth rate while a higher world inflation rate increases the domestic inflation rate. If the world economy falls into stagflation with declining growth and a rising inflation rate, Vietnam's economic growth reduces while the inflation surges. The monetary and fiscal policy can be employed to recover domestic economic growth but with an associated surge in the domestic inflation rate. [ABSTRACT FROM AUTHOR]

Till now, studies have determined the existence of process innovation using survey data; however, in this paper, we use secondary data to empirically establish its presence in low-tech industries. Our empirical approach consists of data envelopement analysis in the first step followed by regression analysis in the second step. We use a cross-sectional dataset, i.e., Annual Survey of Industries, 2017–2018 for our study. Our results suggest that among Indian low-tech firms, investment in computer equipment and software is the most popular strategy to trigger process innovation followed by investment in plant and machinery. We find that these factors have a greater impact on firms that export products and import inputs, than on firms that export products but do not import inputs. In other words, the export-import orientation of firms induces a differential impact of these factors on process innovation. One policy implication from the study is that government should encourage and incentivize low-tech firms to improve the capabilities of its labour force. This is the first paper in the Indian context that uses secondary data to empirically determine the existence of process innovation in low-tech industries. [ABSTRACT FROM AUTHOR]

This paper aims to explore whether the development of competitive computer gaming (eSports) industries is sustained in China. In doing so, we apply the Generalized Supremum Augmented Dickey-Fuller (GSADF) method to investigate when the bubbles originated and crashed in the Chinese eSports market from 2014 to 2021. Utilizing the data of the Chinese Electronic Sports Thematic Index (CESI), the empirical outcomes show that the Chinese eSports industry may deviate from its market value and that the industry witnesses bubble behaviors. The latent reasons might be attributed to government policies, economic growth, stock market crises, and venture capital investments. Therefore, to promote the stabilized and sustained development of the eSports industry in China, regulators and authorities should pay attention to the evolution of bubbles. Moreover, maintaining policy consistency and continuity may be beneficial in stabilizing investors' expectations and reducing speculative investment behaviors. [ABSTRACT FROM AUTHOR]

Over the past few decades, the financial sector in advanced economies has undergone profound changes, and this is particularly true for the US financial economy. This paper focuses on aspects of this evolution that are closely related to distortions in the investment system. The line of thought starts from the maximisation of shareholder value, which was the ideological basis for the split between the real economy and the financial sector. The paper provides a multifaceted analysis of the impact of financial markets on investment behaviour, the decline in real capital investment, the adverse consequences of value extraction, and the adverse effects of share buybacks. As long as the gap between the cost of capital and the minimum expected rate of return is not narrowed, the position of real capital investment will not improve. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine whether managerial sentiment, extracted from annual reports, is associated with corporate risk-taking in the context of Chinese companies. This study expands the vein of literature on overconfidence theory. Design/methodology/approach: By leveraging textual analysis on Chinese listed companies' annual reports, the authors construct firm-level managerial sentiment during 2007 and 2021 to examine how managerial sentiment influences corporate risk-taking after control for firm characteristics. Corporate risk-taking is denoted by corporate investment engagements: capital expenditures and net fixed asset investment. Findings: Results show that incentives for corporate risk-taking are likely to increase with the positive managerial sentiment and decrease with the negative sentiment in companies' annual reports. Positive managerial sentiment is associated with over-/under-investment and low/high investment efficiency. Further additional tests show that the managerial sentiment effect only holds during low economic uncertain years and samples of private-owned firms. Furthermore, the robust tests indicate that there is no endogenous issue between managerial sentiment and corporate risk-taking. Research limitations/implications: Annual report textual-based managerial sentiment may not perfectly reflect managers' lower frequency sentiment (e.g. weekly, monthly and quarterly sentiment). Future studies could attempt to capture managers' on-time sentiment by using media sources and corporate disclosures. Practical implications: To the best of the authors' knowledge, this paper is the first research to provide insights into supervising managers' corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach of measuring managerial sentiment might be a solution to monitoring managerial class. Originality/value: This paper contributes to the literature on accounting and finance studies, adding another piece of empirical evidence on content analysis by examining a unique language and institutional context (i.e. China). Besides, the paper notes that in line with the English version disclosure, based on Chinese semantic words, managerial sentiment in the Chinese-speaking world has magnitude on corporate decisions. The research provides insights into supervising managers' corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach to measuring managerial sentiment may be a practical solution to monitoring managerial class. [ABSTRACT FROM AUTHOR]

This paper evaluates a congestion management concept involving conversion of two existing general-purpose freeway lanes per direction on an 8-lane freeway (with 4 lanes per direction) to priced lanes offering free access for high-occupancy vehicles, in conjunction with cash payments to incentivize a sufficient number of commuters to travel as passengers in transit, carpools or vanpools such that congestion on the remaining free lanes would be no worse than it was before the conversion. Building on prior research, we use a refined modeling process to explore the viability of implementation of the concept on the eastern segment of the Capital Beltway in the Washington, DC metro area. The results of the analysis suggest that the strategy can benefit users of shared travel modes and toll-payers, improve travel speeds on toll-free general-purpose lanes, generate significant surplus revenues to support capital investments and operating subsidies for shared travel modes, and can absorb traffic growth through 2040. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of Chinese outward foreign direct investment (FDI) on youth unemployment in sub-Saharan Africa (SSA) by using a modified labour demand model to identify the investment sources that are helpful for reducing youth unemployment in the region. The model is applied to a panel of 42 countries for the period 2003–2021 using random-effect, and generalized method of moment (GMM) estimators for robustness check. Our results suggest that Chinese FDI has direct short-term reducing effect on youth unemployment in SSA. The direction of China's capital investment to infrastructure development and other labour-intensive activities leads to immediate reduction in youth unemployment. However, overtime, due to absence of linkages with domestic firms, and thus lack of demand effects, Chinese FDI becomes insignificant for employment creation. Our results also indicate that Other FDI does not lead to significant reduction in youth unemployment both currently and overtime. Our analysis gives partial support to the argument that the impact of Chinese FDI may differ from those of developed countries. Finally, we could not find evidence that the effect of FDI on employment depends on host country human capital and institutional quality. Several specifications of the empirical model are tested, and explanations are provided for the results. Policy implications are highlighted, especially the need to attract more job absorbing FDI and improve domestic absorptive capacity. [ABSTRACT FROM AUTHOR]

The local government has the right and the ability to regulate and administer an essential part of public affairs under their responsibility and in the interest of the community and the right to plan, finance and organize the exercise of a function. One of the main aspects is the support of local government in finding possible solutions for the financing and implementation of capital investment projects, also through policy improvements at the local level advocated by local government associations. In our legal framework, it is provided that the financing of the local self-government units is made from the revenues provided by taxes, fees and other local revenues, from funds transferred from the State Budget and funds that come directly from the allocation of taxes and national taxes, local borrowing, donations, as well as other sources provided for in the law. On the other hand, this paper will highlight the importance of implementing the principle of equality from the central to the local level, so that the latter can fulfill its functions where one of these functions is the expansion of financing sources. The implementation of local government investment projects depends on their ability to find the necessary funds by combining their own resources and external financing. Debt financing enables municipalities to carry out more infrastructure projects in a short period of time compared to financing from their own funds. [ABSTRACT FROM AUTHOR]

Numerous research papers have used Irish-only data to test for the presence of an investment gap for small- and medium-sized enterprises (SMEs). In this paper, we use cross-country firm-level survey data from the World Bank Enterprise Surveys to explore the investment patterns of Irish enterprises in a cross-country context and test whether an investment gap is present when compared to other countries. We use an accelerator model of investment which links capital expenditure to firm output growth and test the sensitivity of investment to this key fundamental for Ireland and other countries. We then estimate whether Irish firms face an investment gap relative to their European peers. We test whether any differences in cross-country patterns are driven by variation in financial factors (such as credit access or indebtedness) or firm quality (managerial experience, website usage, operating profitability). We find that Ireland's investment in fixed tangible assets is relatively well explained by these factors whereas a clear underinvestment in research and development expenditure emerges. Factors associated with investment in research and development include the degree of foreign technology usage, digitalisation and internationalisation. [ABSTRACT FROM AUTHOR]

The analysis of influencing factors serves as the cornerstone for the research on smart community construction. Drawing upon both field research and extensive literature study, this paper explores the influencing factors of China's smart community construction and its effective paths by taking 52 national pilot zones for community governance and service innovation in China as examples. In the constructed analytical framework of influencing factors, elements such as economic development, capital investment, information infrastructure, community governance, public support system, and smart platform are included. By the use of the qualitative comparative analysis (QCA) method, the results of the study show that community governance, public support system, and smart platform are necessary conditions for smart community construction, while economic development, capital investment and information infrastructure play a leading role in the four combined paths. Finally, this study provides a new perspective for theoretical research, a reference forgovernmental departments to make decisions, and experience for the construction of smart communities in other developing countries. [ABSTRACT FROM AUTHOR]

Tajikistan holds the eighth position globally in terms of hydropower potential, estimated at 527 terawatt-hours (TWh), with a technically exploitable capacity of 317 TWh. Only 4–6 percent of this immense potential is currently utilized. In this paper, employing a combination of the Johansen cointegration test, vector autoregression, and the Granger-causality test on annual data from 1993 to 2021, we examine the causality relationship between electricity production and key macroeconomic variables, including gross domestic product (GDP), GDP per capita, exports, imports, final consumption, capital investment, and employment, in Tajikistan. The empirical findings reveal a positive unidirectional causality from electricity production to exports and imports. A positive bidirectional or feedback causality is found between electricity production and variables such as GDP, GDP per capita, final consumption, and employment. No causality relationship between electricity production and variables such as trade openness and capital investment is observed. The exploration of complex causal relationships between electricity production and key macroeconomic variables in Tajikistan, as revealed in this study, offers a modest yet meaningful addition to academic discourse. It presents insights that may inform policymakers and stakeholders, albeit with a recognition of the limitations inherent in the findings. These insights could potentially guide the formulation of sustainable development strategies and shed light on the underutilized potential of the country's hydropower resources. [ABSTRACT FROM AUTHOR]

Battery cell finalization is a crucial process chain in battery manufacturing, contributing to a significant share of CAPEX and OPEX. Thus, there is a high cost-saving potential by improving the process chain. This research paper investigates various crucial facets of the cell finalization process in battery cell production through an expert survey. These include investment cost allocation, potential cost savings in sub-processes, reject generation, early detection of faulty cells, quality measurement techniques, and the utilization of inline data for early quality determination and real-time process control during the formation process. A solution approach for the implementation of electrochemical impedance spectroscopy for inline early quality determination is given. The results yield valuable insights for optimizing the formation process and enhancing product quality. [ABSTRACT FROM AUTHOR]

Industry 4.0 has become a hype among the manufacturing industries across the globe. Recent developments require significant capital investments, but these technologies are yet to be established in developing countries such as Vietnam, especially the apparel industry. Based on a survey of the current situation at small and medium-sized enterprises in Vietnam's textile industry, the paper proposes to apply technology, test and evaluate the effectiveness of applying and coordinating digital systems in management and chain supply. Multifaceted applications have been specifically explored including automatic equipment and digital systems, spanning the domains of automation, robotics, artificial intelligence, data analytics, and the Internet of Things (IoT). These technologies are posited as catalysts for transformative improvements in production efficiency and resource utilization. Furthermore, experimental results point out the symbiotic relationship between technology adoption and effective management strategies to achieve holistic operational enhancements. As the Vietnamese textile industry strives for competitive excellence in the global arena, this research offers actionable insights for industry practitioners, policymakers, and researchers. [ABSTRACT FROM AUTHOR]

Background: Public–private partnerships (PPP) are often how health improvement programs are implemented in low-and-middle-income countries (LMICs). We therefore aimed to systematically review the literature about the aim and impacts of quality improvement (QI) approaches in PPP in LMICs. Methods: We searched SCOPUS and grey literature for studies published before March 2022. One reviewer screened abstracts and full-text studies for inclusion. The study characteristics, setting, design, outcomes, and lessons learned were abstracted using a standard tool and reviewed in detail by a second author. Results: We identified 9,457 citations, of which 144 met the inclusion criteria and underwent full-text abstraction. We identified five key themes for successful QI projects in LMICs: 1) leadership support and alignment with overarching priorities, 2) local ownership and engagement of frontline teams, 3) shared authentic learning across teams, 4) resilience in managing external challenges, and 5) robust data and data visualization to track progress. We found great heterogeneity in QI tools, study designs, participants, and outcome measures. Most studies had diffuse aims and poor descriptions of the intervention components and their follow-up. Few papers formally reported on actual deployment of private-sector capital, and either provided insufficient information or did not follow the formal PPP model, which involves capital investment for a explicit return on investment. Few studies discussed the response to their findings and the organizational willingness to change. Conclusions: Many of the same factors that impact the success of QI in healthcare in high-income countries are relevant for PPP in LMICs. Vague descriptions of the structure and financial arrangements of the PPPs, and the roles of public and private entities made it difficult to draw meaningful conclusions about the impacts of the organizational governance on the outcomes of QI programs in LMICs. While we found many articles in the published literature on PPP-funded QI partnerships in LMICs, there is a dire need for research that more clearly describes the intervention details, implementation challenges, contextual factors, leadership and organizational structures. These details are needed to better align incentives to support the kinds of collaboration needed for guiding accountability in advancing global health. More ownership and power needs to be shifted to local leaders and researchers to improve research equity and sustainability. [ABSTRACT FROM AUTHOR]

We compare the investment of standalone firms across regions after a positive shock to the investment opportunities generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions with a higher density of business groups in the local area. We investigate mechanisms driving our results and find support for a financing mechanism whereby banks allocate capital preferentially to group-affiliated firms in responding to the increase in credit demand. Overall, our study documents that business groups have spillover effects on standalone firms. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

The steeply rising demand for mobile data drives the investigation of the transmission backhaul network architecture and cost for the fifth generation (5G) of mobile technologies. The proposed backhaul architecture will facilitate high throughput, low latency, scalability, low cost of ownership, and high capacity backhaul for 5G mobile technologies. This paper presents a transmission backhaul network architecture for 5G technology; the proposed internet protocol (IP) transmission backhauling architecture includes the data center, core network, distribution network, and access or IP random access network. A mathematical model for the data center IP core network, IP distributed network, and the IP access network for capital expenditure (Capex), operational expenditure (Opex), and the total cost of ownership (TCO) are presented, as well as a mathematical model for the entire backhauling architecture. The result shows that the increase in IP sites is positively proportional to the Capex and negatively proportional to the Opex. The selectivity analysis shows that the increase in bandwidth is directly proportional to the Capex, Opex, and TCO in the IP core network. The increase in data centers is directly proportional to the Capex, Opex, and TCO of the entire backhauling architecture. [ABSTRACT FROM AUTHOR]

This paper studies the cost of capital effect of a major regulatory technology, or RegTech, event: the staggered implementation of the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system of the Securities and Exchange Commission in the period from 1993 to 1996. This event represents a largely exogenous shock to corporate information dissemination technologies, resulting in a considerable reduction in information acquisition costs for investors. Using a difference-in-differences research design, we show that the cost of equity capital declines substantially after a firm switches from paper filing to mandatory electronic filing in EDGAR. The effect is stronger for small firms and firms with low analyst coverage and low institutional ownership. We identify three channels through which EDGAR affects a firm's cost of capital: the liquidity, risk-taking, and corporate governance channels. EDGAR implementation also improves a firm's investment efficiency significantly. We find evidence that the marginal value of a firm's capital investment and cash is higher during the post-EDGAR period. This paper was accepted by Suraj Srinivasan, accounting. Funding: C. Lin acknowledges financial support from the National Science Foundation of China [Grant 72192841] and the Research Grants Council of the Hong Kong Special Administration Region, China [Project HKU R7054-18 and T35/710/20R]. S. Lai acknowledges financial support from the Ministry of Science and Technology, Taiwan [Grants 107-2410-H-002-038-MY3 and 110-2410-H-002-079-MY2] and the E. Sun Academic Award. X. Ma acknowledges research support from the University of Macau [Grants SRG2019-00158-FBA and MYRG2020-00259-FBA]. Supplemental Material: Data are available at https://doi.org/10.1287/mnsc.2022.4660. [ABSTRACT FROM AUTHOR]

This study examines how equity market fragmentation affects firms' capital investment decisions. Recent empirical research finds that market fragmentation lowers trading costs and thus improves market quality. We examine whether this increase in market quality translates into greater revelatory price efficiency, where stock prices reveal with greater precision information to managers and/or creditors about firms' investment opportunities. Consistent with this notion, our findings reveal that the association between capital investment and investment opportunities is increasing in market fragmentation. Additional evidence suggests that (a) market fragmentation increases revelatory price efficiency at least in part by encouraging information acquisition and informed trade by equity investors and (b) the more efficient stock prices inform both managers and creditors about firms' investment opportunities. Inferences based on difference-in-differences and instrumental variable tests are consistent with those based on our primary findings. This paper was accepted by Suraj Srinivasan, accounting. Funding: The authors are grateful to the Kenan-Flagler Business School, Cox School of Business, Smeal School of Business, and David Eccles School of Business for funding our research. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4905. [ABSTRACT FROM AUTHOR]

Leasing valuation is a topic that has aroused considerable interest in business circles. This paper examines leasing from the point of view of the lessor who can decide to leave the contract due to default. We analyze in introducing a model in which the lessor decides whether or not to terminate the contract at a given point in time, comparing it with the cost of capital of alternative investments. The proposed model is stochastic, and it is strongly based on correlated random walks, making it more adaptable to real-world circumstances. Furthermore, we propose a recombinant binomial tree based on correlated random walks, performing numerical simulations starting from CIR and Vasicek models. We will point out that as the rate of cost of capital of an alternative investment increases, the optimal boundary curve decreases, so the lessor leaves, while as the past interest rates increases, the curve rises and the lessor will have a concrete interest in maintaining the contract. [ABSTRACT FROM AUTHOR]

Affect is generally characterised as distinct from, and detrimental to, reason in investment appraisal. This paper, in contrast, illustrates that affect is integral to reasoning, particularly when uncertainty disturbs investment appraisal. Investment appraisals produce uncertain projections about the future, which generate discomfort. This causes actors to undertake adaptive activities to craft calculations they can become comfortable with, which we characterise as epistemic participation and shaping the politics of expectations. These activities constitute a dualistic fusion of comfort and reason: discomfort initiates and informs reasoning to regain comfort. We further show the effects of the laborious efforts accompanying this accretion of both knowledge and comfort. Our arguments are supported by an analysis of investment appraisal for a 30‐year capital project. [ABSTRACT FROM AUTHOR]

Biodiesel serves as a viable alternative to traditional diesel due to its non-toxicity, biodegradability, and lower environmental footprint. Among the diverse edible and inedible feedstocks, waste frying oil emerges as a promising and affordable feedstock for biodiesel production. Commonly waste frying oils include those derived from palm, corn, sunflower, soybean, rapeseed, and canola. The primary challenge related to biodiesel production technologies is the high production cost, which poses a significant barrier to its widespread adoption. Thus, refining the production techniques is essential to enhance yield, reduce capital expenditure, and curtail raw material expenses. An examination of the research focusing on feedstock availability, production, hurdles, operational expenditures, and future potential is pivotal for identifying the most economically and technically viable solutions. This paper critically reviews such research by exploring feedstock availability, production techniques, challenges, and costs intrinsic to biodiesel synthesis. It also underscores the economic feasibility of biodiesel production, shedding light on the pivotal factors that influence profitability, especially when leveraging waste frying oils. Through an in-depth understanding of these considerations, optimal production and feedstock choices for biodiesel production can be identified. Addressing cost and production bottlenecks could potentially enhance the economic viability of waste frying oil-based biodiesel, thus fostering both environmental sustainability and more extensive adoption of biodiesel as an environmental-friendly fuel in the future. [ABSTRACT FROM AUTHOR]

This paper aims to assess the role of corporate venture capital (CVC) as option‐creating investments and how corporate investors practice CVC options in their investment decisions. Using a sample of 4206 US firms between 1998 and 2019, our results show that sector fit and geographic fit reduce uncertainty and impact investors' decisions on CVC investments. When exogenous uncertainty is mitigated, CVC‐backed companies experience higher investment amounts than independent venture capital funds (IVC)‐backed ones. The results evidence that follow‐on investments motivate IVC‐backed companies to exit via IPOs. At the same time, a prolonged duration for the organisational learning option leads CVC‐backed companies to exit via acquisition. This study helps investors to reduce uncertainty surrounding investments and improve the usefulness of their real options. We also provide implications for how policymakers target and develop an entrepreneurial ecosystem. [ABSTRACT FROM AUTHOR]

• Employment is wage-constrained and real depreciation raises exports. • Neither the real exchange rate nor exports affect domestic sales. • There is a lack of transmission from investment to growth. • Volatility effects are weak for exports and inconsistent for investment. • There is little evidence of an interest rate effect for investment. This paper evaluates South African manufacturing performance over 25 years. It reports the evolution of five basic variables: employment, mark-ups, exports, domestic sales, and investment, using an aggregated sample of firms from a reliable business database. The approach differs from other economic models by the complementary use of management perceptions in estimated equations. The results reinforce some previous findings; for example, wage pressure tends to constrain domestic sales while the relative wage incentivizes capital investment. The exchange rate matters for exports and investment is constrained by skill shortages. Other findings add evidence to contested issues such as the importance of the interest rate level for investment and exchange rate stability for export growth. Relationships between key variables can help to identify growth constraints and the potential for manufacturing jobs. In particular, the lack of transmission from exports to employment or to domestic sales and the response of the mark-up to investment suggest institutional failures in coordinating market activity. [ABSTRACT FROM AUTHOR]

Return on investment (ROI) has long been accepted as a primary tool for decision‐making for capital investments and even choices among competing operational budget lines. Applying ROI to investments intended to prevent or mitigate future risks and hazards can be very difficult, as benefits are typically arduous to define and calculate while risk probabilities can be very small. This paper uses examples from recent research concerning law enforcement, airport security, and airport resiliency to illustrate the feasibility of computing ROI and resiliency ROI (RROI) for such investments and to suggest methodology to approach these computations. [ABSTRACT FROM AUTHOR]

This paper summarizes recent research in performance-based microfinance, and outlines future directions for research. We use the term 'microequity' to refer to any small-enterprise financing contract in which the repayment owed in each instalment depends positively upon the variable performance of the enterprise. We summarize research from financial economics and development economics to highlight the importance of implicit insurance in microequity contracts, and present a theoretical framework to illustrate the potential of microequity in supporting capital investment and incentivizing asset use. We conclude by highlighting directions for future research in this emerging field of microfinance. [ABSTRACT FROM AUTHOR]

Intangible capital is an important growth driver in the modern knowledge‐based and innovation‐driven economy. While there seems to be sufficient support for the role of intangible capital from developed economies, evidence from fast‐growing developing countries is much more limited. This paper explores the heterogeneous pattern and potential determinants of firm‐level intangible capital investment in Vietnam. We found that firm size, human capital, and information and communication technology increase the likelihood to invest in intangible capital. Additionally, an inverted‐U shaped relation is identified between market competition and intangible capital investment: Moderate levels of market competition induce firms in Vietnam to invest more in innovative activities, but the effect of stronger competition diminishes. [ABSTRACT FROM AUTHOR]

This paper examines the effect of labour protection laws on tax planning and capital investment. Exploiting a major reform that introduced firing costs in Italy for firms with fewer than 15 employees but left firing costs unchanged for larger firms combined with matched employer-employee data, I show that the rise in firing costs led small firms to increase tax avoidance and capital investment relative to larger firms. Robustness and placebo tests suggest that the results are causal. Overall, the findings indicate that tax avoidance allows small firms to generate internal funds to substitute labour for capital when employment protection becomes stronger. [ABSTRACT FROM AUTHOR]

Australia, like many other housing systems in Western Europe and the US, increasingly relies on private financing arrangements for social housing. It is spending more than ever before on demand side assistance, yet both the production of dedicated social housing and housing affordability are declining. From the perspective of needs-based social infrastructure, this paper presents the outcomes of research into the development of a more productive investment pathway. Multi-criteria evaluation and financial modelling compares and assesses the cost to government of five investment scenarios involving a range of debt, efficient financing and capital investment strategies. This research finds that, while current governments tend to favour private financing and facility lease arrangements, paying down private financing during operations is the least cost effective means for governments to subsidise social housing. Capital grant funding and land valuation policies are more cost effective in the medium and long term but require more active government involvement in needs based planning, strategic investment and regulation. [ABSTRACT FROM AUTHOR]

This paper theoretically examines the effect of an expansionary monetary policy on export quality and its ramifications on the aggregate employment of the unskilled workers in a competitive general equilibrium framework of a small open economy. Monetary policies are often pursued by the central bank of an economy to manage exchange rate fluctuations under a managed float regime, which may have adverse consequences for export-quality choices and thereby for export growth given the growing preference of buyers in richer nations for higher qualities of imports. Under optimal allocation of wealth over a portfolio of cash, domestic assets and foreign assets, we show that an increase in the domestic money supply affects the choice of export-quality through larger investment, capital formation and consequent endowment effect and through changes in the nominal exchange rate. Under less price-elastic demand for a non-traded good, export quality is upgraded when quality upgrading is relatively capital (than skill) intensive. The expansionary monetary policy may raise aggregate employment of unskilled workers due to larger investment and capital formation, but may lower it through changes in the quality of the export good. The overall effect is thus ambiguous. A larger initial size of bequests has a similar effect. [ABSTRACT FROM AUTHOR]

Automated industrial Visual Inspection Systems (VIS) are typically customized for specific applications, limiting their flexibility. They are characterized by a demanding setup, high capital investments, and significant knowledge barriers. In this paper, we propose an alternative architecture for the visual inspection of 3D printed parts or complex assemblies using a robotic arm equipped with hand-eye sensors and controllable lighting system. The core of the proposed Flexible Vision Inspection System (FVIS) is the self-extraction of 3D text annotations from STandard for the Exchange of Product model (STEP) AP242 files. The system self-selects and parametrizes the most suitable inspection algorithm, including lighting settings. Additionally, it autonomously performs self-localization, self-referencing of physical products, and self-planning of robot inspection path based on CAD information. This framework, characterized by self-X, cost-effective, non-invasive, and plug-and-play architecture has the potential to disrupt the business model of vision inspection, enabling an as-a-service solution aligned with the next generation of flexible manufacturing. [ABSTRACT FROM AUTHOR]

In this paper, we study the effect of land titling on investment in human capital. We first develop a theoretical model of the investment in the presence of property rights to agricultural land and then test the predictions of the model regarding the schooling decisions of households using data from Mexico's PROCEDE land titling program. Using the staggered introduction of land titling, we find that ownership tilted the balance in favor of investment in human capital in the form of schooling. Titling decreased the hazard rate of dropping out of school by 14% for children between the ages of 6 and 18. Additionally, including the effects of the contemporaneous conditional cash transfer program further reduced the hazard rate of dropping out by 34%. We find that these results hold even when the head of the household changes or migrates. Titling has a significant effect on female children but not on extremely poor families. [ABSTRACT FROM AUTHOR]

Water distribution networks (WDNs) require large capital investment and ongoing operational costs, resulting in their optimisation being a highly researched field. Despite the benefits tanks bring to networks, most optimisation models omit them as decision variables due to the complexity they can introduce to heuristic approaches. This paper addresses the least-cost optimisation of WDN design and operation through the development and application of the Small-network Configurator for Optimising Pump Energy consumption (SCOPE). The SCOPE algorithm incorporates pipes, pumps and tanks as decision variables and solves the optimisation problem through an iterative approach that pairs EPANET simulation results with subsequent hydraulic calculations to converge on the pumping and storage configuration which yields the lowest energy consumption. The SCOPE output can then be used to seed further optimisation techniques. This approach has been tested on the synthetic Nametown and real-life Dili networks and demonstrated annual cost savings of 10% and 25%, respectively. [ABSTRACT FROM AUTHOR]

This paper extends a canonical model of intergenerational human capital investment to a geographic context to study the role of migration in influencing income mobility in the United States. The main result is that migration is considerably influential in shaping the high rates of economic mobility observed among children from low-wage areas, with human capital investment behavioral responses being important to consider. Equalizing school quality across locations does more to reduce interstate inequality in income mobility than equalizing skill prices, and policies that attempt to decrease human capital flight from low-wage areas via cash transfers are unlikely to be cost-effective. [ABSTRACT FROM AUTHOR]

The launch of ChatGPT created a tidal wave of interest, rapid uptake of the app and a surge of capital investment. It quickly became clear that what was now being called 'generative AI' would have multiple impacts and implications across the board. The paper begins by outlining aspects of the context from which these innovations arose. They include Neoliberalism and the 'playbook' of careless, 'non-legal' innovation that occurred during the early rise of social media platforms. The paper also critiques Silicon Valley, both for its one-sided culture and its obsession with marketing. It specifically draws attention to the characteristics and limitations of 'technoscientific' outlooks and the way they conceal, or edit out, key aspects of human existence. A summary of the attributes of technoscience suggests a number of possible responses. Behind these, however, is a widely ignored dilemma - the proposition that a continuation of further stages of high-tech innovation benefits the human enterprise. Yet many high-tech developments are unambiguously sociopathic. They project extreme danger and dysfunction out onto innocent people and unprepared social environments. The paper summarises recent attempts to come to terms with a radically transformed, technology saturated environment and concludes with suggestions for enhancing human agency. [ABSTRACT FROM AUTHOR]

This article examines the relation between internal audit function (IAF) quality and investment efficiency, a recurring value-added corporate activity critical to firm survival and profitability. We argue that an IAF, unlike other information intermediaries, is uniquely positioned to have access to firm-specific, private information—particularly related to localized, firm-specific risks. If a more competent IAF incrementally improves the information that is generated and communicated to management (while not participating directly in decision-making), we should observe more productive capital investment decisions from firms with higher quality IAFs relative to firms with lower quality IAFs. Through this enhanced information channel, we find that IAF quality is associated with investment efficiency. This result holds for both under- and overinvestment, although not in tests of all subsamples. We also document that this effect is more pronounced for firms with more complexity and for firms with greater investment opportunities. Our evidence indicates that IAF quality provides measurable and economically meaningful value to an organization. [ABSTRACT FROM AUTHOR]

Agri-environmental policies in the UK stand on the threshold of significant change, with wide acceptance that radical changes are needed to ensure a better delivery of public goods in future. The UK's departure from the EU presents an opportunity to fully realise the "Public Money for Public Goods" principle in the new suite of Environmental Land Management schemes. A likely priority will be the delivery of conservation goals at a landscape scale, which will require the recruitment of a broader range of actors and institutions than at present, including an emerging group of what we call in this paper 'new land managers'. Understanding the changing dynamics of rural land occupancy, and the characteristics and motivations of these new land managers, will be essential in the future for the effective delivery of these public schemes. Data on land market trends is nevertheless patchy and poorly researched. For this paper, we drew on a survey of land agents in England, all of whom were members of the Central Association for Agricultural Valuers (CAAV), in order to gather information and reflections on contemporary land markets. A key finding is that agricultural policy reform and retrenchment is seen by many of these experts as a significant driver of future change. Taken together with other interacting factors such as the overall tax burden on businesses and the economic and personal situation of farmers and their succession status, many of our respondents predicted significant structural change, with more land coming on to the market for resale. At the same time, increasing demand for land from "lifestyle/non-farming landholders" and the growing presence of people entering the market interested in enroling land for carbon sequestration and natural capital improvements, will mean a shift in the types of individuals and organisations holding land. Those holding and managing land in coming years are likely to comprise an ever more diverse and fragmented community of land owners and occupiers The task for policymakers then, is to deliver a suite of interventions specifically tailored to the various types of landholders in order to engage them effectively into public goods delivery under ELMs. • Traditional focus of UK agri-environmental policies is on main occupation farmers. • Emphasis on landscape scale delivery requires broader set of public good providers. • Knowledge gaps in rural land occupancy mean that successful recruitment is limited. • Findings reported here indicate a continued diversification of landholder types. • A suite of interventions tailored to the broadening landholders types will be key. [ABSTRACT FROM AUTHOR]

The central environmental protection inspection is an institutional innovation in China that aims to supervise enterprises by monitoring government environmental enforcement. This paper examines the effectiveness of central environmental protection inspection in improving enterprise environmental performance by using a quasi-natural experiment of the first round of central environmental protection inspection. The study reveals that the central environmental protection inspection improves enterprise environmental performance by strengthening local government environmental enforcement and environmental attention. This is evidenced by the increase in enterprise environmental capital expenditure and the decrease in pollution discharge fees. The impact of central environmental protection inspection on enterprise environmental performance is strengthened by local governments' environmental regulation and environmental fiscal expenditure, as well as by public participation. Under the pressure of central environmental protection inspection, heavily polluting enterprises engage in production process improvement and R&D investment, which can improve their economic performance. This can ultimately lead to a competitive advantage for enterprises, promoting a win-win situation for both environmental and economic performance. [ABSTRACT FROM AUTHOR]

We investigate how a positive relation between inflation and capital investment (the Mundell–Tobin effect, MT‐E) affects optimal monetary policy in a framework that combines overlapping generations and new Monetarist models. We find that inflation rates above the Friedman rule are optimal if and only if there is an MT‐E. In the absence of the MT‐E, the Friedman rule is optimal. With an MT‐E, increasing inflation above the Friedman rule leads to a first‐order welfare gain from increasing capital investment, and only to a second‐order welfare loss from reducing consumption in markets where liquidity matters. [ABSTRACT FROM AUTHOR]

We quantify the burden sharing between the United States and Canada within the context of the bi-lateral defense relationship regarding the North American Aerospace. Also known as the North American Aerospace Defense Command (NORAD), this bi-lateral military alliance has existed since the late 1950s. We use insights from the economic theory of military alliances as well as disaggregated defense expenditures on capital, labor and R&D to tease out nuanced assessment of burden sharing between the two countries and peer groups (Arctic Council). In addition, we provide some funding scenarios for the planned policy review in Canada to guide decision makers. We also show that there are considerable strategic, institutional, and operational constraints facing the fulfilment of Strong, Secure, Engaged (Defence Policy) and possible NORAD modernization. Improving these institutional issues, along with fulfilling the commitments outlined in the Defence Policy, will go a long way to assuaging the burden sharing debate. [ABSTRACT FROM AUTHOR]

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries' effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings. [ABSTRACT FROM AUTHOR]

Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the goal of the firm. Capital expenditure decision affects the company's future cost structure over a long-time span. The investment in fixed assets increases the fixed cost of the firm, which must be recovered from the benefit of the same project. If the investment turns out to be unsuccessful in future or gives less profit than expected, the company will have to bear the extra burden of fixed costs. Such risk can be minimized through the systematic analysis of projects, which is an integral part of investment decisions. Capital investment decisions are not easily reversible without much financial loss to the firm because there may be no market for second-hand plants and equipment and their conversion to other uses may not be financially viable. Hence, capital investment decisions are to be carried out and performed carefully and effectively in order to save the company from such financial loss. The investment decision which is undertaken carefully and effectively can save the firm from huge financial loss aroused due to the selection of unfavorable projects. [ABSTRACT FROM AUTHOR]

Purpose: This study forecasts the government expenditure components in Nigeria, including recurrent and capital expenditures for 2021 and 2022, based on data from 1981 to 2020. Design/methodology/approach: The study employs statistical/econometric problems using the Feasible Quasi Generalized Least Squares approach. Expenditure forecasts involve three simulation scenarios: (1) do nothing where the economy follows its natural path; (2) an optimistic scenario, where the economy grows by specific percentages and (3) a pessimistic scenario that defines specific economic contractions. Findings: The estimation model is informed by Wagner's law specifying a positive link between economic activities and public spending. Model estimation affirms the expected positive relationship and is relevant for generating forecasts. The out-of-sample results show that a higher proportion of the total government expenditure (7.6% in 2021 and 15.6% in 2022) is required to achieve a predefined growth target (5%). Originality/value: This study offers empirical evidence that specifically requires Nigeria to invest a ratio of 3 to 1 or more in capital expenditure to recurrent expenditure for the economy to be guided on growth. [ABSTRACT FROM AUTHOR]

Microgrids and hybrid renewable energy systems play a crucial role in today's energy transition. They enable local power generation and distribution, reducing dependence on large centralized infrastructures, can operate independently or connected to a grid, and can provide backup power, thus increasing system resilience. In addition, they combine multiple renewable energy sources, such as solar, wind, hydro, and biomass, to maximize the efficiency and reliability of the supply, and are also adaptable to location-specific conditions, taking advantage of locally available energy resources and reducing the need for energy imports. Moreover, they contribute to decarbonization goals by offering a cleaner and more sustainable alternative. In this article, a documentary review is presented on the interaction of Homer Pro software 3.16.2 (July 2023), used for the design of hybrid renewable energy systems (HRES), with other methods of optimization or sizing. Allusion is made to the type of architecture in the most prominent clean and fossil source configurations, the levelized cost, net annual cost, and maintenance and capital investment cost. A comparison is made among the works reported in the last five years regarding the use of this software tool, based on load demand, geographical area, renewable energy sources, fossil sources, and objective functions, applied to the educational, rural, and industrial sectors. It is shown that India is one of the countries that has reported the most number of HRES techno-economic environmental analysis works, and that the case studies have focused approximately 47% on rural areas, 20% on educational agencies, 14% on commerce and industry, and 29% on urban buildings. [ABSTRACT FROM AUTHOR]

This document, titled "Revisiting Investment Costs for Green Steel: Capital Expenditures, Firm Level Impacts, and Policy Implications," discusses the investment required for the steel sector to transition to carbon neutrality. The study examines how capital expenditures are estimated in the academic literature and compares them to reported investment costs of green steel projects. It also analyzes the impact of a targeted transition to carbon neutrality on the balance sheet and leverage of listed steelmakers in the EU-27. The study suggests that capital expenditure may be underestimated in the academic literature and provides recommendations for referencing and contextualizing these estimates. It concludes with a discussion of the capabilities of listed steel producers to achieve carbon-neutral production, considering industrial policy perspectives. [Extracted from the article]