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Compared with financial information, whether corporate social responsibility disclosure has impacts on debt financing cost has obviously become a heated topic in the academic. This paper selects A-share listed companies in Shanghai and Shenzhen stock markets of China from 2013 to 2017 as sample to study the impact of corporate social responsibility disclosure on debt financing cost, including bond financing cost and bank loan cost. In addition, this paper divides the sample into voluntary corporate social responsibility disclosure group and mandatory corporate social responsibility disclosure group and studies whether the effects of voluntary corporate social responsibility disclosure and mandatory corporate social responsibility disclosure on bond financing cost and bank loan cost are different. The empirical results are presented as follows: Firstly, enterprise disclosing high-quality corporate social responsibility report is more conducive to reducing the debt financing cost. Specifically, corporate social responsibility disclosure significantly lowers both the bond financing cost and bank loan cost. Moreover, the reduction impact of corporate social responsibility disclosure on bond financing cost is greater than that of bank loan cost. Secondly, enterprises voluntarily disclosing corporate social responsibility reports are more conducive to reducing the debt financing cost than that of enterprises mandatorily disclosing corporate social responsibility reports. Thirdly, non-state-owned enterprises are more conducive to reducing debt financing cost than that of state-owned enterprise. The enterprises with more market competition are more conducive to reducing the debt financing cost than the oligopolistic enterprises. Finally, this paper concludes and gives policy implications. This paper amplifies the literature regarding the economic consequences of corporate social responsibility disclosure and improves the understanding of the impact of corporate social responsibility disclosure on debt financing cost. [ABSTRACT FROM AUTHOR]

The transition from the Uniform Building Code (UBC-97) to the International Building Code (IBC-21) marked a major shift in the definition of seismic hazard. The term "seismic hazard" in the form of peak ground acceleration (PGA) is replaced by spectral acceleration. This paper investigates the effect of using new seismic hazards on the structural performance of reinforced concrete (RC) buildings. It also looks into the financial impact on the capital costs of new buildings. Useful insights are made to understand the structural performance and financial impact of adopting IBC 21 for structural design in contrast to UBC 97. This study was carried out from the perspective of a developing country, Pakistan. Reinforced concrete moment resisting and dual frames are used as the main structural system of a typical 7-story residential building to investigate the aforementioned effect. The frames are assumed to be located in two locations with high and low seismic hazards. The effect on structural performance is investigated via nonlinear pushover analysis. Financial impact is judged mainly through cost estimation for steel and concrete. A detailed discussion is also presented on the seismic design guidelines in both codes. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between firm performance and cost of debt. More specifically this paper empirically shows that fund providers charge lower cost on debt for highly performing companies compared to lower performing companies. We argue that the profitable companies are more resilient, and they have more survivable capacity which impacts on the pricing of the cost of debt. In contrast, lower performing companies are more prone to financial distress or may have higher chances of non-repayment of loans thereby fund providers charge higher interest to compensate the risks. Consistently, analyzing 547 firm year observations for the period of 2015–2019 we find that the cost of debt is significantly lower for the highly performing companies compared to the lower performing companies. The negative relation between the cost of debt and firm performance is highly pronounced in smaller companies compared to bigger companies. It suggests that fund providers create opportunities for smaller companies thereby results in balanced growth in the economy. Our results are robust to a set of alternative measures of firm performance. This study has several policy implications and contributions to the literature of the cost of debt in developing economies. [ABSTRACT FROM AUTHOR]

This paper employs insights from earth science on the financial risk of project developments to present an economic theory of critical minerals. Our theory posits that back-ended critical mineral projects that have unaddressed technical and non-technical barriers, such as those involving lithium and cobalt, exhibit an additional risk for investors which we term the "back-ended risk premium". We show that the back-ended risk premium increases the cost of capital and, therefore, has the potential to reduce investment in the sector. We posit that the back-ended risk premium may also reduce the gains in productivity expected from artificial intelligence (AI) technologies in the mining sector. Progress in AI may, however, lessen the back-ended risk premium itself by shortening the duration of mining projects and the required rate of investment by reducing the associated risk. We conclude that the best way to reduce the costs associated with energy transition is for governments to invest heavily in AI mining technologies and research. Vespignani and Smyth present an economic theory of risk in critical minerals they term the "back-ended risk premium." They apply AI approaches to reduce this risk premium and lower costs in energy transition. [ABSTRACT FROM AUTHOR]

This paper studies the effect of option trading on corporate investment and financing policies. Based on prior literature, I hypothesize that option market induces informed trading and thus reduces information asymmetry and the cost of capital. As a result, firms with high option trading have more investment and financing. Specifically, based on the United States public data, this paper finds that option trading volume increases corporate investment and financing, but reduces cash holdings and corporate payouts. These results are robust to the inclusion of industry or firm fixed effect, a control for endogenous options trading, and the use of alternative measures of option trading and corporate policies. The effect of option trading is stronger for firms with higher information asymmetry problems. Finally, this paper finds the results are inconsistent with the "quiet Life" hypothesis and the catering hypothesis. [ABSTRACT FROM AUTHOR]

Risk aggregation and capital allocation are of paramount importance in business, as they play critical roles in pricing, risk management, project financing, performance management, regulatory supervision, etc. The state-of-the-art practice often includes two steps: (i) determine standalone capital requirements for individual business lines and aggregate them at a corporate level; and (ii) allocate the total capital back to individual lines of business or at more granular levels. There are three pitfalls with such a practice, namely, lack of consistency, negligence of cost of capital, and disentanglement of allocated capitals from standalone capitals. In this paper, we introduce a holistic approach that aims to strike a balance of optimality by taking into account competing interests of various stakeholders and conflicting priorities in a corporate hierarchy. While unconventional in its objective, the new approach results in an allocation of diversification benefit, which conforms to the diversification strategy of many risk management frameworks including regulatory capital and economic capital. The holistic capital setting and allocation principle provides a remedy to aforementioned problems with the existing two-step industry practice. [ABSTRACT FROM AUTHOR]

In growth-cycle models, consumption smoothing motivates procyclical household savings and monopolistic competition engenders countercyclical horizontal R&D at fixed costs of capital. However, data in the US and in 15 OECD countries indicate countercyclical household saving, procyclical R&D, and high volatility. This paper explains the observed cyclical properties by realistic income taxes, R&D subsidies, R&D labor, and depreciation. R&D subsidies promote R&D to increase productivity by trading the levels for the varieties of intermediates. R&D-subsidy payments increase consumption and decrease household saving rates by raising taxable income beyond output, thus hindering future R&D and growth. Anticipated R&D-subsidy payments increase household-saving rates by raising returns to saving, thus promoting future R&D and growth. The US taxes yield unstable fluctuations with consecutive periods of R&D, low saving rates, and strong growth as in the technology boom. R&D labor and partial depreciation strengthen the roles of saving and R&D in attaining high volatility. [ABSTRACT FROM AUTHOR]

This paper focuses on managing exchange rate risk associated with a secondary, non-USD exchange rate of Japanese yen (JPY). Employing Korean firm data, our preliminary analysis reveals that Korean firms are exposed differently to changes in the KRW/JPY rate than to changes in the KRW/USD rate. Our results show that firms exhibiting significant shifts in exposure from pre- to post-global financial crisis have distinctively different firm attributes including more currency derivatives use and lower firm values, compared to firms exhibiting little such shifts. A further analysis reveals that the lower values of high exposure firms are attributable mainly to the financial risk from foreign currency borrowing, but not to the operating risk resulting from exporting activities. Hence, the currency derivative use by Korean firms hardly helps them mitigate the value loss from heightened capital costs of foreign borrowing following the crisis. [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]

This paper finds a sequence of m jobs on one processor with the minimum total cost as a solution to the sequencing problem where the raw materials are either expensive to buy or carry. There have been numerous studies considering m jobs on one processor which consider various cost factors such as the total penalty cost. One of the important, but less investigated cost factors, in the previous studies, is the inventory carrying and its relevant capital costs. The inventory costs such as the holding cost and capital cost must be considered in proposing a solution to the sequencing problem. In this paper, by taking those costs into account to address the sequencing problem, a developed slope order index is computed to enable decision makers to a sufficient cost saving sequence of m jobs on one processor. This paper contributes the current knowledge by proposing a new sequencing solution in which some previously less observed costs are considered. The result of this paper can also be employed in scheduling of m jobs where there is a bottleneck and the inventories are expensive or their holding costs are considerable. [ABSTRACT FROM AUTHOR]

In this paper, we revisit a frequently employed simplification within the WACC approach that company cost of capital k V is supposed to be invariant to the debt ratio and therefore equal to the unlevered cost k U . Even though we know from Miles and Ezzell (1980) that k V formally differs from k U , treating both costs as equal strongly facilitates the practical firm valuation e.g. when companies strategically change their target debt ratios to a significantly different magnitude after a transaction. We provide both a theoretical model and an empirical analysis using 29 firms of the German stock market to quantify the economic significance between the company cost of a levered and an otherwise identical but unlevered firm. In particular, we can numerically support the usual simplification in the absence of default risk. In case that firms are default-risky, however, empirical findings indicate a clear difference between these costs equal to 1.88 percentage points on average even for moderate assumed bankruptcy costs which translates to a company mispricing of nearly 100%. As a result, the company cost of capital does practically not depend on the debt ratio if the firm is not subject to default risk or if bankruptcy costs are negligible. Otherwise, it does and a negligence of this relationship can cause significant mispricings. [ABSTRACT FROM AUTHOR]

In this paper, we examine the effect of relative/absolute firm efficiency on weighted average cost of capital (WACC). Using a sample of Korean listed firms, we find that WACC is negatively associated with relative firm efficiency (operational performance) suggesting that firms with higher (lower) relatively efficiency are expected to pay lower (higher) capital costs. When we repeat our analysis using absolute firm efficiency (ROA), we do not find a statistically significant relationship. Our results suggest relative efficiency which is estimated as output (sales) divided by the resources that are directly under the control of management is assessed by capital providers and impounded into a firm's capital costs. Absolute efficiency (ROA) which is estimated as sales divided by total assets is not. Our results suggest that simple accounting ratios used in the accounting literature are not considered as informative to explain borrowing costs compared to relative efficiency that captures managerial operational performance. [ABSTRACT FROM AUTHOR]

An amendment to this paper has been published and can be accessed via the original article. [ABSTRACT FROM AUTHOR]

Geothermal technology has a high level of uncertainty and, thus, requires thorough risk analysis for economic decisions. The levelized cost of energy (LCOE) is a basic economic analysis widely used in determining an investment or energy mix. Many reputable institutions and government agencies provide LCOE, to which they apply different levels of discount rates to reflect project risk. To this end, the weighted average cost of capital (WACC) is frequently used as a proxy for project risk-adjusted discount rate. However, whether using a higher discount rate for a riskier project is appropriate in calculating LCOE has not been scrutinized. The purpose of this paper is to propose a certainty equivalent method of LCOE as an alternative way for considering risk. We present a theoretical background and formula based on the utility theory, improving the probabilistic LCOE estimation methodology of previous studies. We also perform scenario analysis to show how the certainty equivalent model changes LCOE reflecting different level of risk of the individual variables, which traditional LCOE does not. Additionally, we suggest that the traditional LCOE should be used prudently, recognizing it can distort the result when an individual project has a different level of risk from the industry average. [ABSTRACT FROM AUTHOR]

In common with other types of complex models, energy system models have opaque structures, making it difficult to understand both changes between model versions and the extent of changes described in research papers. In this paper, we develop the principle of model archaeology as a formal method to quantitatively examine the balance and evolution of energy system models, through the ex post analysis of both model inputs and outputs using a series of metrics. These metrics help us to understand how models are developed and used and are a powerful tool for effectively targeting future model improvements. The usefulness of model archaeology is demonstrated in a case study examining the UK MARKAL model. We show how model development has been influenced by the interests of the UK government and the research projects funding model development. Despite these influences, there is clear evidence of a strategy to balance model complexity and accuracy when changes are made. We identify some important long-term trends including higher technology capital costs in subsequent model versions. Finally, we discuss how model archaeology can improve the transparency of research model studies. [ABSTRACT FROM AUTHOR]

The majority of rural communities in developing countries (such as Peru) are not connected to the electrical grid. Hybrid energy production from available renewable resources (e.g., wind and solar) and diesel engines is considered as an economically viable and environmentally friendly alternative for electrification in these areas. Motivated by the lack of a comprehensive investigation dedicated to the techno-economic analysis of hybrid systems (PV–wind–diesel) for off-grid electrification in Peru, the present work is focused on determining the optimal configuration of these systems for remote Peruvian villages. Three small communities without access to the grid (Campo serio, El potrero, and Silicucho), which are located in different climatic zones of Peru, have been accordingly selected as case studies. Seven different configurations including single component systems (solar, wind, and diesel) and hybrid ones are considered. While taking into account the meteorological data and load characteristics of the communities along with the diesel fuel's price and the cost of components, HOMER software is utilized to determine the optimal sizing of the system [resulting in the lowest net present cost (NPC)] considering different scenarios. The obtained configurations are then compared considering other state-of-the-art economic indices [initial capital cost, total annual operating cost, and the cost of energy (COE)], the generation fractions, and the resulting CO2 emissions. The obtained results have revealed that, for all of the investigated communities, the hybrid solar–wind–diesel system is the most economically viable scenario. Considering the latter scenario, the obtained optimal configuration leads to an NPC of USD 227,335 (COE: 0.478 USD/kWh) for Campo serio, USD 183,851 (COE: 0.460 USD/kWh) for El potrero, and USD 146,583 (COE: 0.504 USD/kWh) for Silicucho. Furthermore, employing the optimal configurations a renewable fraction (with respect to the total generation) of 94% is obtained for Campo serio and Silicucho, while the achieved renewable fraction for El potrero is 97%. Moreover, for the case of Campo serio, the resulting CO2 emission of the obtained optimal system is determined to be 6.1% of that of a diesel-only unit, while the latter ratio is determined to be 2.7% for El potrero and 9.9% for that of Silicucho. The optimal configurations that are obtained and presented in the present paper can be utilized as guideline for designing electrification systems (with a minimized cost) for the considered communities and other villages with similar characteristics (population and climatic conditions). [ABSTRACT FROM AUTHOR]

Foamed and energized fluids fracturing has been used in both conventional and unconventional reservoirs, as they reduce the amount of water used and hence minimize deleterious impact on water-sensitive formations. They also aid in the flow back after treatment in reservoirs where drawdown is limited. In this paper, the most important foam properties are presented, in addition, when to use energized fluids fracturing and how to choose the best energizing component with the best quality. The impact of N2-energized fluids fracturing (NEF) on wells that were previously fractured using conventional fracturing fluids is also presented. In addition, a comparison between the results of N2-energized fluids fractured and conventional fluid fractured wells is presented. The effect of using 20 to 50% (NEF) on production through surface well testing and live production data showed excellent and sustainable production rates. An economical study is presented through comparing the total capital cost of both NEF and conventional fluids fracturing, in addition to the hydrocarbon recovery of wells after both types. Data considered in this work represent about 40 wells fractured using NEF in the Egyptian Western Desert. [ABSTRACT FROM AUTHOR]

This study examines the role of market efficiency on international differences in the usefulness of the implied cost of capital (ICC) to measure expected stock returns. The analysis exploits cross-country differences in market efficiency around the world using a variety of empirical measures of market efficiency. A key methodological contribution of this paper is to assess the quality of the ICC as estimate of expected returns by evaluating its forecast error for subsequent stock returns. The results show that the accuracy of the ICC as measure of expected stock returns is positively associated with the countries' level of market efficiency. [ABSTRACT FROM AUTHOR]

As most of the energy in today's scenario is still relied on fossil fuels and it causes a negative impact on the environment, hence energy saving should be considered as an important element of production planning. However, energy-efficient production planning should also be cost-efficient. There are technologies that are expected to become affordable in due time frame. Such affordability and expected technology advancements can be included in production planning using multiple installations of production facilities. In this paper, an insight-based graphical method is proposed for multiple installations aggregate production planning that minimizes energy consumption of production facilities. The methodology is capable of accounting capital cost affordability as well. Application of the proposed methodology on illustrative examples demonstrates that significant energy reduction can be achieved by multiple installations production planning. [ABSTRACT FROM AUTHOR]

Universities planning the provision of space for their teaching requirements need to do so in a fashion that reduces capital and maintenance costs whilst still providing a high-quality level of service. Space plans should aim to provide sufficient capacity without incurring excessive costs due to over-capacity. A simple measure used to estimate over-provision is utilisation. Essentially, the utilisation is the fraction of seats that are used in practice, or the ratio of demand to supply. However, studies usually find that utilisation is low, often only 20–40%, and this is suggestive of significant over-capacity. Our previous work has provided methods to improve such space planning. They identify a critical level of utilisation as the highest level that can be achieved whilst still reliably satisfying the demand for places to allocate teaching events. In this paper, we extend this body of work to incorporate the notions of event-types and space-types. Teaching events have multiple ‘event-types’, such as lecture, tutorial, workshop, etc., and there are generally corresponding space-types. Matching the type of an event to a room of a corresponding space-type is generally desirable. However, realistically, allocation happens in a mixed space-type environment where teaching events of a given type are allocated to rooms of another space-type; e.g., tutorials will borrow lecture theatres or workshop rooms. We propose a model and methodology to quantify the effects of space-type mixing and establish methods to search for better space-type profiles; where the term “space-type profile” refers to the relative numbers of each type of space. We give evidence that these methods have the potential to improve utilisation levels. Hence, the contribution of this paper is twofold. Firstly, we present informative studies of the effects of space-type mixing on utilisation, and critical utilisations. Secondly, we present straightforward though novel methods to determine better space-type profiles, and give an example in which the resulting profiles are indeed significantly improved. [ABSTRACT FROM AUTHOR]

This paper examines the extent to which borrowing constraints restrict firm access to credit and identifies individual, firm, and loan characteristics, which determine the cost of capital in Vietnamese manufacturing. Using direct information from a Vietnamese enterprise survey the paper shows that between 14 and 25% of the enterprises are credit constrained, and these enterprises would increase their debt holdings by between 40 and 115% if borrowing constraints were relaxed. Moreover, it emerges that informal credit markets play an important role for fast growing firms. Enterprises do not appear to have the necessary time to go through the many administrative difficulties in the formal credit system if they want to “seize the day”. Finally, collateralized loans face larger interest rates, explained by the significant influence of “policy lending” in Vietnamese credit markets. [ABSTRACT FROM AUTHOR]

Based on the data of A-share listed companies in China from 2016 to 2020, this study empirically analyzes the relationship among corporate social responsibility, debt financing cost and enterprise innovation by constructing a regulated mediation effect model. The results show that enterprises perform social responsibility actively can enhance the level of enterprise innovation. Besides, debt financing cost plays a part of the intermediary role between corporate social responsibility and enterprise innovation. It is found that market competition degree positively regulates the relationship between corporate social responsibility and enterprise innovation, and market competition degree strengthens the part of the intermediary effect of debt financing cost. The conclusions not only help to reveal the impact mechanism of corporate social responsibility on enterprise innovation, but also provide empirical evidence for promoting enterprises to actively assume social responsibility, improve the level of innovation, and provide empirical evidence for the government to formulate corresponding policies according to the degree of competition in different markets. [ABSTRACT FROM AUTHOR]

Horizontal drilling and multistage hydraulic fracturing applied in shale formations over the past decade. The operators are trying even closer cluster spacing to increase the initial rate, but it is at the expense of higher operation costs and complexity. This study presents an integrated workflow to investigate the effect of cluster interference on well performance. Analytical rate transient analysis (RTA) was combined with reservoir numerical simulation to calculate the effective fracture surface area (ACe) for hydrocarbon production. A proxy model was built to estimate the effective to actual stimulated fracture area ratio as a function of completion and reservoir parameters. The integrated workflow was applied to actual field data for two shale gas wells. An economic study was conducted to investigate the optimum spacing based on the well profitability. The well with a higher stage number and tighter cluster spacing had high cluster interference with a low ACe/ACa ratio. The well will drain the production area near the wellbore faster with a high initial production rate but with high production declining rate. Increasing the cluster spacing, with the same injected proppant volume, showed an increase in the ACe/ACa ratio, and a decrease in cluster interference. A lower initial rate was observed with a low production declining rate. Economic study showed optimum spacing of 60 ft based on the formation properties, capital cost, and gas price. As the interest rate, gas prices, and increases or low capital costs, the optimum completion tends to be with the tighter spacing to accelerate the production. [ABSTRACT FROM AUTHOR]

Background: Obstetric fistula is incident and prevalent in low-income countries. Globally, about 100,000 women develop fistula annually. In Mozambique, more than 2,000 fistulas are reported annually. A national strategy to combat obstetric fistula has been implemented in Mozambique from 2012–2020. This strategy is under review, making it opportune to generate evidence that reflects the course of the strategy implemented to subsidize/optimize the definition of priorities of the new strategy to achieve universal health coverage. In Mozambique, information on the costs incurred to treat fistula is scarce. This study aims to estimate the mean unit cost of repair/treatment of simple and complex obstetric fistula in Mozambique. Methods: We carried out a retrospective evaluation, from the provider's perspective, using the Ingredient and Stepdown approaches. The mean unit cost was obtained by the sum of individual and shared ingredients to treat fistula. Cost dimensions included Direct Medical Costs (personnel, drugs, and supplies), Overhead and Capital Costs (administration and capital assets' costs, respectively). The average exchange rate was USD 1 = MZN 61.47. Data were collected in secondary, tertiary, and quaternary hospitals of Zambézia and Nampula provinces in 2021. Costs borne by patients and their families and loss of productivity were not included. Results: The mean cost for Simple Obstetric Fistula repair was MZN 14,937.21 (USD 243) and Complex Obstetric Fistula was MZN 21,145.68 (USD 344) per person operated. Regardless of the type of fistula, the repair cost was MZN 18,072.18 (USD 294). Conclusion: Without neglecting that prevention is better than plasty, the results show feasible levels of fistula repair costs for mobilization of funds. For the estimated 2,000 fistulas reported annually, the government needs an average MZN 36,144,360 (USD 588,000). [ABSTRACT FROM AUTHOR]

Non-financial companies listed on the Frankfurt Stock Exchange face considerable difficulties due to expensive funding and the need to make complex decisions about their capital structure. These problems impact their judgments about dividend policy, resulting in ambiguity and possible inefficiency. This study draws on the bird-in-hand theory to investigate the influence of the cost of capital on dividend policy decisions among non-financial firms listed on the Frankfurt Stock Exchange, focusing on 227 companies from 2005 to 2022. The data for this study were sourced from Thomson Reuters Datastream. Employing the common shock autoregressive distributed lag (CS-ARDL) and two-step generalized method of moments (GMM) estimations, findings reveal that the cost of debt consistently negatively impacts dividend payouts and coverage ratios. In contrast, the cost of equity has an insignificant effect. Conversely, the weighted average cost of capital positively influences dividend payouts and coverage ratios but negatively influences dividend yield. All the findings supported the bird-in-hand theory except for the negative impact of WACC on dividend yield. These insights highlight the importance of considering the cost of capital and market share dynamics in dividend policy formulation. Firms should prioritize efficient debt management to sustain dividend distributions, and aligning dividend policies with overall capital structure management is crucial in this regard, providing a sense of reassurance and confidence to the firms and their stakeholders. This study provides valuable guidance for financial decision-makers navigating dividend-related strategies within corporate environments. [ABSTRACT FROM AUTHOR]

In the burgeoning literature on small firm financing, the problem of underidentification in respect to the supply of, and demand for, capital has not been fully resolved. In an attempt to progress this issue, the. current paper looks at some of the issues influencing the demand for finance in small firms which are owner-managed. The paper is primarily exploratory in nature and argues that a greater emphasis might usefully be placed on the cost of capital dimension in future research into small business financing. In particular, it is suggested that where the objective of an owner-manager is to maintain control of the firm, interdependent investment and financing strategies may be chosen to control the small firms cost of capital. This in turn indicates that the tendency for some small finns to invest sub-optimally and exhibit slower than average growth may not be primarily determined by limitations on their supplies of finance. On the demand side, it may well be that in addition to equity aversion, a sub-optimal capital structure decision is made in the form of a reduced demand for debt. In other words, given the level of equity that an owner-manager chooses, debt may not be fully expanded to the capacity limit consistent with value maximisation. [ABSTRACT FROM AUTHOR]

In this paper, the results of experimental studies of a prototype cryogenic thermoelectric generator (TEG) using transit heat flows in a liquefied natural gas (LNG) evaporator are considered. The main objective was to develop a TEG with low capital cost, integrated directly into an LNG vaporizer, capable of generating electricity at a reasonable levelized cost (LCOE). A demonstration prototype of TEG was created with a power output of 800 W. The prototype used liquid nitrogen (LN2) instead of LNG as the working fluid. Achieved technical parameters of TEG provide the LCOE decrease to a level of ≈ 0.015 $/kWh. Such results are achieved using standard components (thermoelectric modules, heat exchangers, etc.) thanks to the optimization of the TEG design. [ABSTRACT FROM AUTHOR]

Investors can generate excess returns by implementing trading strategies based on publicly available equity analyst forecasts. This paper captures the information provided by analysts by the implied cost of capital (ICC), the internal rate of return that equates a firm's share price to the present value of analysts' earnings forecasts. We find that U.S. stocks with a high ICC outperform low ICC stocks on average by 6.0 % per year. This spread is significant when controlling the investment returns for their risk exposure as proxied by standard pricing models. Further analysis across the world's largest equity markets validates these results. [ABSTRACT FROM AUTHOR]

This paper argues the case that tests of how investors value corporate social performance (CSP) based upon realised stock market returns are liable to be weak tests if markets are efficient and firms change CSP policies infrequently. We provide a theoretical explanation of why this will be the case using examples to illustrate. Subsequently, we set out an alternative theoretical framework for the purposes of investigating whether markets place a positive, or a negative, valuation on CSP, and show why this is superior to tests based upon Tobin's Q. Using US KLD data, we demonstrate that, as theorised, markets place a positive value on CSP that is not detected by conventional returns-based tests. Our conclusion is that researchers who are interested in the question of whether engagement with a corporate social responsibility agenda is a value-enhancing activity for a company (as argued by some stakeholder theorists) or value destructive (as argued by Friedman, The social responsibility of business is to increase its profits, The New York Times Magazine, ), need to look beyond returns-based tests to answer the research question posed. [ABSTRACT FROM AUTHOR]

This paper analyzes the influence of financial integration on institutional quality. We construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the private sector, the elite may counteract this effect by increasing the rate of expropriation. Since de facto political power is linked to economic resources, financial integration also has long run consequences for the distribution of power and for the rise of an entrepreneurial class. [ABSTRACT FROM AUTHOR]

The main objective of this paper is to explore the factors influencing new firm formation in Taiwan. The paper makes use of both cross-sectional and time-series data for the period 1986–2001, using the fixed effect model to try to determine the factors affecting new firm formation. The impacts of industry health, production costs, capital cost, number of employed persons, the unemployment rate, and the economic growth rate are found to be more or less as anticipated. However, only production costs, capital cost, and the unemployment rate are significant with confidence levels of 95% and 90%, respectively. The results also suggest that Taiwan currently is located at the unemployment borderline proposed by Hamilton, and thus a recession-push is already operating, while a prosperity-pull is starting to make itself felt. [ABSTRACT FROM AUTHOR]

The growth and failure of small and medium enterprises has been a topic of discussions world over among policymakers and researchers. This study was guided by the following objectives: to examine the contributions of small medium enterprises (SMEs), to determine the challenges affecting small medium enterprises, to examine how financial inclusiveness supports the growth of small medium enterprises, and to establish the relationship between financial inclusion and growth of small medium enterprises. The study used a cross-sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SME growth. The study further also revealed that the cost of acquiring and servicing financial services is high; there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure, and risk averse. The cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets. [ABSTRACT FROM AUTHOR]

Cash flow prediction is important. It can help increase returns and improve the allocation of capital in healthy, mature firms as well as prevent fast-growing firms, or firms in distress, from running out of cash. In this paper, we predict accounts receivable cash flows employing methods applicable to companies with many customers and many transactions such as e-commerce companies, retailers, airlines and public transportation firms with sales in multiple regions and countries. We first discuss "classic" forecasting techniques such as ARIMA and Facebook's™ Prophet before moving on to neural networks with multi-layered perceptrons and, finally, long short-term memory networks, that are particularly useful for time series forecasting but were until now not used for cash flows. Our evaluation demonstrates this range of methods to be of increasing sophistication, flexibility and accuracy. We also introduce a new performance measure, interest opportunity cost, that incorporates interest rates and the cost of capital to optimize the models in a financially meaningful, money-saving, way. [ABSTRACT FROM AUTHOR]

Background: Traumatic injuries are rising globally, disproportionately affecting low- and middle-income countries, constituting 88% of the burden of surgically treatable conditions. While contributing to the highest burden, LMICs also have the least availability of resources to address this growing burden effectively. Studies on the cost-of-service provision in these settings have concentrated on the most common traumatic injuries, leaving an evidence gap on other traumatic injuries. This study aimed to address the gap in understanding the cost of orthopaedic services in low-income settings by conducting a comprehensive costing analysis in two tertiary-level hospitals in Malawi. Methods: We used a mixed costing methodology, utilising both Top-Down and Time-Driven Activity-Based Costing approaches. Data on resource utilisation, personnel costs, medicines, supplies, capital costs, laboratory costs, radiology service costs, and overhead costs were collected for one year, from July 2021 to June 2022. We conducted a retrospective review of all the available patient files for the period under review. Assumptions on the intensity of service use were based on utilisation patterns observed in patient records. All costs were expressed in 2021 United States Dollars. Results: We conducted a review of 2,372 patient files, 72% of which were male. The median length of stay for all patients was 9.5 days (8–11). The mean weighted cost of treatment across the entire pathway varied, ranging from $195 ($136—$235) for Supracondylar Fractures to $711 ($389—$931) for Proximal Ulna Fractures. The main cost components were personnel (30%) and medicines and supplies (23%). Within diagnosis-specific costs, the length of stay was the most significant cost driver, contributing to the substantial disparity in treatment costs between the two hospitals. Conclusion: This study underscores the critical role of orthopaedic care in LMICs and the need for context-specific cost data. It highlights the variation in cost drivers and resource utilisation patterns between hospitals, emphasising the importance of tailored healthcare planning and resource allocation approaches. Understanding the costs of surgical interventions in LMICs can inform policy decisions and improve access to essential orthopaedic services, potentially reducing the disease burden associated with trauma-related injuries. We recommend that future studies focus on evaluating the cost-effectiveness of orthopaedic interventions, particularly those that have not been analysed within the existing literature. [ABSTRACT FROM AUTHOR]

The new regulatory framework imposes an increase in capital requirements for banks. Although core capital (equity) is more expensive than other liabilities (debt), it strengthens banks' stability and improves its loss-absorbing capacity. In this paper, we investigate the link between high-quality capital requirements and systematic risk. We further analyze the extent to which an improvement in the quality of the banks' balance-sheet will affect the expected return on equity. We show the impact of shifts in funding structure on information asymmetries (especially implicit guarantees) and on the average funding cost. Our results demonstrate that core capital is essential for increasing banks stability and for reducing the average funding cost for banks. Our empirical analysis provides support for the introduction of strengthened prudential requirements defined in Basel III. [ABSTRACT FROM AUTHOR]

This paper proposes a real options model for valuing the option to delay mobile telecommunications network investment decisions and a method for calculating the real options' impact on mobile service costs. Ranges of option value multiples are calculated for the decisions to invest in a number of network elements, each representing a different part of the mobile network, subject to different demand and technological uncertainties. The value of the option to invest in each network element, net of future replacement options, is modeled as a function of the element's total variable profit and the cost of investment in the element. The model and method are then applied to estimate the real options' impact on mobile termination costs using real cost and volume data. [ABSTRACT FROM AUTHOR]

The dynamic discounting (DD) program based on the financial information matching platform (FIMP) is an emerging but underexplored supply chain finance (SCF) model. This study explores the configuration and operation of the DD program, compares and analyzes the DD decision between the traditional model and the FIMP-based DD model, and reveals how the latter model improves the cash flow of participants. Compared with the traditional model, the FIMP-based DD model can improve the accuracy of the daily discount rate for small and medium-sized enterprises; it offers enterprises more capital sources and helps participants determine an optimal payment period. There are three major contributions of this study. First, it explores the mechanism of the platform in promoting the DD model. The DD program is not participated in by a single buyer and supplier, but by one buyer with multiple (N) suppliers based on an FIMP. Once the fundamental decision parameters can be met, several suppliers can enjoy early payment from a specific buyer, thereby improving liquidity of the benefitting participants. Second, the study offers important managerial insights. Suppliers can calculate the discount rate to motivate buyers' early payment choices. Besides, early payments could be constituted from a mixed portfolio with buyer's own capital and that from financial institutions. Third, the study explores key parameters. The discount rate is not only related to the cost of working capital but also to the financing costs. Based on the varying relationships between discount rate and capital costs, the present study makes a reasonable argument for the use of mixed funds and then calculates the optimal early payment period. Finally, this study conducts a sensitivity analysis with numerical examples, which finds that, by adopting the FIMP-based DD program, both buyers and suppliers enjoy a fairer procurement environment and more profitable multi-lateral relationships. [ABSTRACT FROM AUTHOR]

Weakly supervised object detection (WSOD) has attracted significant attention in recent years, as it utilizes only image-level annotations to train object detectors and greatly reduces the labor and capital cost of fine labeling. Nevertheless, the absence of instance-level annotations leads to two phenomena: partial regions and missing instances. We believe these are mainly caused by two issues: 1) Noisy instances exist in the training samples, which can confuse the detector. 2) Global salient information is missing, resulting in little attention being received in the low-confidence region. To solve the above two problems, we propose an instance dual-optimization framework called IDO. First, an instance-wise selection strategy (IWSS) based on curriculum learning is proposed for instance denoising and for improving the robustness of the model. Second, CAM-generated spatial attention (CGSA) is carefully designed to optimize the features of instances. Without introducing additional hyperparameters, our CGSA complements the low class-confidence region with more global salient information, which assists the model in acquiring a more complete region of the target and identifying more neglected targets. Finally, we empirically demonstrate that our proposal can achieve comparable results to those of other state-of-the-art methods on PASCAL VOC 2007, PASCAL VOC 2012, and MS COCO. [ABSTRACT FROM AUTHOR]

Revamping the power grid into a smart grid and modernizing it with advanced metering infrastructure are essential steps in addressing ongoing energy challenges. Smart meters play a pivotal role in power grid modernization by providing real-time energy-related data which fuels the control activities of modern grid. While the advantages of smart meters are evident, their deployment necessitates a comprehensive redesign of the grid architecture, involving smart end devices for monitoring and communication networks for efficient data exchange. Yet, achieving cost-effective and widespread adoption of these technologies poses a challenge, particularly in developing and underdeveloped nations due to high capital costs, technological constraints and uneconomical deployment strategies. Moreover, the prevailing research often advocates a complete transition to new smart meters to achieve 'smartness,' neglecting the potential of existing metering infrastructure upgrades. To address these concerns, this study proposes and simulates the design of a low-cost Smart Network Meter. Notably, this meter upgrades the existing meter infrastructure while validating a cost-effective deployment strategy. Furthermore, a consumer opinion survey was also conducted to compelling evidence supporting the adoption of the proposed low-cost smart metering solution. [ABSTRACT FROM AUTHOR]

The gas-liquid separation equipments are aimed to be designed for maximum efficiency of phase separation. In order to maximize their capacity the flow rates are required to be optimized for the capital cost of equipment. This leads to the situation where the gas phase leaves the separation interface with high velocities and carry liquid phase along with it in the form of droplets reducing the equipment efficiency. This is known as entrainment or carryover. Depending on the nature of the separation interface i.e., turbulence intensity, bubble dynamics, the size and velocity distribution of liquid fragments, droplets at the separation interface varies. This is the main source of empiricism involved in the analysis of such equipments. The mechanics of motion of the dispersed liquid phase in bulk of gas is relatively well studied. In the present paper the various experimental, analytical and numerical investigations carried out to address the issues of entrainment/carryover are carefully analyzed. Further, a critical review has been presented for bringing out a coherent theme and a current status of the subject under reference. [ABSTRACT FROM AUTHOR]

Most analyses of small firms' decision to seek outside equity financing and the conditions thereof concern private firms. Knowledge of the risk and return of entrepreneurial ventures for outside investors is consequently limited. This paper attempts to fill this gap by examining the Canadian context, where small and medium-sized enterprises (SMEs) are allowed to list on a stock market. We analyze seasoned equity offerings launched by SMEs over the last decade. These public issuers can be considered low quality firms with poor operating performance. Managers issue equity before a large decrease in operating and stock market performance. Individual investors do not price the stocks correctly around the issue and incur significant negative returns in the years following the issue. This is particularly true for constrained issuers. We confirm that entrepreneurial outside equity attracts lemons and that individual investors cannot invest wisely in emerging ventures. Probably as a consequence of individual investors' lack of skill and rationality, the cost of outside equity financing of Canadian public SMEs is abnormally low. [ABSTRACT FROM AUTHOR]

Researchers and practitioners have devoted considerable attention to firms' policies regarding discretionary disclosures. Prior studies argue that firms increase demand for their debt and equity issues and, thus, lower their cost of capital, by providing more informative disclosures. However, empirical research has generally not been able to document significant benefits from increased disclosure. This paper proposes an alternative explanation - firms disclose because it is the socially responsible thing to do. We argue that companies have incentives to engage in stakeholder management by undertaking socially responsible activities and that providing extensive and informative disclosures is one such practice. We examine the relationship between firms' disclosures and measures of social responsibility. We use ratings provided by the Council on Economic Priorities as proxies for the degree of social responsibility adopted by the sample firms. Disclosure rankings provided by the annual Association for Investment Management and Research Corporate Information Committee Reports (AIMR Reports) are used to measure disclosure level. Our results indicate that there is a positive relationship between disclosure level and corporate social responsibility. That is, firms that engage in socially responsive activities provide more informative and/or extensive disclosures than do companies that are less focused on advancing social goals. In addition, we find that socially responsible firms are more likely to provide this increased disclosure through better investor relations practices. These results support our contention that increased disclosure is a form of socially responsible behavior. [ABSTRACT FROM AUTHOR]

Flow batteries are one option for future, low-cost stationary energy storage. We present a perspective overview of the potential cost of organic active materials for aqueous flow batteries based on a comprehensive mathematical model. The battery capital costs for 38 different organic active materials, as well as the state-of-the-art vanadium system are elucidated. We reveal that only a small number of organic molecules would result in costs close to the vanadium reference system. We identify the most promising candidate as the phenazine 3,3′-(phenazine-1,6-diylbis(azanediyl))dipropionic acid) [1,6-DPAP], suggesting costs even below that of the vanadium reference. Additional cost-saving potential can be expected by mass production of these active materials; major benefits lie in the reduced electrolyte costs as well as power costs, although plant maintenance is a major challenge when applying organic materials. Moreover, this work is designed to be expandable. The developed calculation tool (ReFlowLab) accompanying this publication is open for updates with new data. To guide research and implementation of aqueous organic redox flow batteries it is essential to estimate their potential costs. In this perspective, the authors present an overview of the potential cost of organic active materials for aqueous flow batteries and identify cost reduction routes. [ABSTRACT FROM AUTHOR]

I study the behavior of textile and clothing makers in the U.S. as they were exposed to a large, uncertainly anticipated increase in foreign competition through the removal of import quotas. I find a large secular decline in capital investment in the industries that are likely to have been the most vulnerable to such competition. The decline is significant beginning immediately after announcement of the policy–nine years before the scheduled liberalization date. The investment decline is interrupted by a large, short-lived increase when the policy uncertainty is resolved. I show that each of these features of the data is predicted by a model of optimal industry investment in the presence of capital adjustment costs, under an anticipated but uncertain demand shock that mimics this liberalization. Using industry-level panel data, I examine other developments in the output and capital markets for these industries, and I find that they too are consistent with the model's predictions. Calibration to fit the observed investment path yields parameter values that are close to directly estimated values. These findings demonstrate that considering capital adjustment costs and policy uncertainty can be critical in understanding industry behavior, even over a relatively long time horizon. [ABSTRACT FROM AUTHOR]

We investigate the circumstances under which socially responsible investing (SRI) enhances firm long-term financial performance, and therefore provides incentives for firms to self-regulate their environmental performance. Aggregating portfolios across SRI mutual funds, we estimate the effect of SRI investment with environmental screening criteria on firm cost of equity capital. We find that accounting for interactions between firm and non-shareholder stakeholders, and potential agency costs associated with certain environmental activities of the firm, SRI can facilitate the alignment of firms' environmental and financial goals. We also find that an industry group's environmental performance and diversity influence the extent to which a firm in that group can benefit from SRI investment. [ABSTRACT FROM AUTHOR]

Optimized liquefied natural gas (LNG) process can be helpful for better energy and cost saving for gas transportation and storage. In this study, different layouts of LNG units are examined technically and economically so that with the specific and combined refrigerants, the least amount of energy can be consumed in the LNG unit. Two optimized LNG production processes were selected and compared. In Case 1, the expander is used for preventing energy loss in joule Thomson phenomena, and in Case 2, precooling was performed for better integration of heat. The study used Aspen HYSYS software to simulate the process and Aspen Capital Cost Estimator (Icarus) for economic analysis. According to the economic analysis of the energy and the process of these two cases, Case 2 is better in economic terms and energy consumption. This simulation is for an LNG unit with a capacity of 1000 tons per day. Total costs (including direct and indirect) in Case 1 and 2 are 152 and 130 USD/Tone, respectively. This issue is related to use of the compressors and turbo-expanders in Case 1. [ABSTRACT FROM AUTHOR]

We study the role of commodity price shocks in explaining business cycles in emerging economies, but including a financial transmission mechanism that has been understudied in the conventional literature. A negative commodity price shock not only affects the aggregate demand but also increases a firm's external debt and the cost of new debt. Consequently, the aggregate investment decreases, amplifying the output contraction. Using information for five Latin American commodity-exporting countries, we find that these shocks explain between 29 and 40% of output variation, supporting their importance as a source of business cycles. Moreover, the inclusion of financial variables to capture the balance sheet effect causes an overreaction of output of between 20 and 22% compared with a conventional model, verifying the importance of this mechanism. [ABSTRACT FROM AUTHOR]

We use structural equation modelling for a robust test of the role information quality plays in explaining the cost of equity capital (CoE). SEM allows us to reliably identify the direct and indirect effects that three information quality attributes, quantity, asymmetry and precision, have on CoE. The method also reduces the error-in-variables problem, which stems from selectivity in proxies for information quality and CoE. Using nine proxies to capture the variation in information quality attributes and nine CoE measures, we document that the direct effects of precision and asymmetry are equally important in explaining variation in CoE, while quantity has a negative direct effect. Quantity has a positive indirect effect on CoE mediated through asymmetry and precision. The strength of the relations we identify varies according to firm size, maturity, profitability and with proxies for CoE, which suggests that sample compositions and measurement choices affect the power of tests. Our results consolidate mixed evidence on the relation between information quality and CoE that is often based on a single measure of information quality and ignores indirect channels. [ABSTRACT FROM AUTHOR]

This paper examines the interplay between the real and financial decisions of the competitive firm under output price uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital, irrespective of the risk attitude of the firm and the incidence of the underlying uncertainty. We further show that the firm's optimal input mix depends on its optimal debt-equity ratio, thereby rendering the interdependence of the real and financial decisions of the firm. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm's preferences so as to ensure that the firm's optimal output is adversely affected upon the introduction of the background risk. [ABSTRACT FROM AUTHOR]

To deal with issues of process sustainability, cost, and efficiency, we developed materials reengineered from fibers to serve as super-bridging agents, adsorbents, and ballast media. These sustainable fiber-based materials considerably increased the floc size (~6,630 µm) compared to conventional physicochemical treatment using a coagulant and a flocculant (~520 µm). The materials also reduced coagulant usage (up to 40%) and flocculant usage (up to 60%). These materials could be used in synergy with coagulants and flocculants to improve settling in existing water treatment processes and allow facilities to reduce their capital and operating costs as well as their environmental footprint. Moreover, the super-sized flocs produced using fiber-based materials (up to ~13 times larger compared to conventional treatment) enabled easy floc removal by screening, eliminating the need for a settling tank, a large and costly process unit. The materials can be effective solutions at removing classical (e.g., natural organic matter (NOM) and phosphorus) and emerging contaminants (e.g., microplastics and nanoplastics). Due to their large size, Si- and Fe-grafted fiber-based materials can be easily recovered from sludge and reused multiple times. [ABSTRACT FROM AUTHOR]