This study examines the role of non-performing loans in systemic risk for Indian banks using a fixed-effects panel regression model, with bank fixed effects and year fixed effects. The moderator variables considered for the study include bank size, capital adequacy, leverage, deposits, loans & advances, and investments. The study contributes to the literature by proposing the concept of maximum level of non-performing loans for neutral systemic risk, which is the level of net non-performing loans to net advances for which the systemic risk is non-positive. The results of the study indicate that bank size, capital adequacy, and loans & advances have a significant impact on the maximum level of non-performing loans for neutral systemic risk. Further, the results of the study suggest that the role of non-performing loans in systemic impact was different for public sector and private sector banks. The study suggests that the model can be used to set maximum levels of non-performing loans for individual banks with estimates or projections of the bank’s characteristics.
“Industry 4.0” concept was developed to meet the challenge of technology progress in the field of data processing, artificial intelligence, robotics and cyber-physical systems. This concept changes the production systems to serve efficiently various customer demands. The major obstacles for successful implementation of “Industry 4.0” from a CEO perspective are unclear economic benefits and excessive investments and lack of qualified employees. The readiness to adopt new approaches in engineering, management and education defines national strategies for the forth industrial revolution progress. The new concept of manufacturing builds integrated and customer-oriented supply-chains, so the outputs and inputs go beyond processes boundaries. The radical change in manufacturing design requires a new set of skills for engineers, managers and employees. Management experiences a substantial shift from functional-based to customer-value oriented logic. Meaning of efficiency and effectiveness, scope of planning and control, organizational design for power and task distribution, communication patterns and coordination networks challenges profound changes both in meaning and form. More flexible and complex environment, patterns for instant coordination, priority for autonomous decision-making require new skills and new attitudes for employees and managers to exploit all benefits of “Industry 4.0”.
Sustainability signifies a condition based on the principles of sustainable development, taking full account of its current and future economic, social and environmental impacts taking the stakeholders’ needs, benefits, and interests into consideration. The Government of India, of late, has realized what rural India can offer to the world. The Tenth Five Year Plan has identified tourism as one of the major sources for generating employment and promoting sustainable livelihoods. The concept of sustainable rural livelihood is the enhancement of multiple opportunities so that the local community can avail of the scope for income and employment generation through sustainable tourism practices. Meghalaya is a state blessed with a variety of agrobiodiversity and vivid climatic conditions which favours the cultivation of different types of horticultural products like fruits, vegetables, flowers, etc. Meghalaya also has so many indigenous species of fruit plants that may not be found anywhere else in the country. The horticultural wealth of the state in terms of fruits includes peach, plum, pear, pineapple, banana, jackfruit, sohpieh, sohiong (black cherry), sohsang, sohphoh, sohlang, sohbrap (pasion fruit), sohmon, etc. Fruit wines in Meghalaya will have a niche market at its best, where the excess quantity of fruit abundant in the areas can be processed. This study aims to highlight the relationship between local fruit wine and sustainable rural livelihood in Meghalaya. The paper is based on qualitative research techniques where an exploratory research approach has been applied.
As a result of a multinational and multi-industrial scientific project, a framework supporting implementation of Person-Centred Care (PCC) and Health Promotions (HP) has been developed. The framework has been called “WE-CARE Roadmap” and consists from five enablers: technology, quality measures, infrastructure, incentive systems and contracting strategies. (PCC) and (HP) are promising approaches to contain costs of healthcare while maintaining and even improving the quality of medical services. However, the implementation of PCC and HP in many organisations was unsustainable. They were implemented as projects or interventions but after the cause of implementation despaired (e.g. the research program was finished) the care slipped back into ‘usual care’. The WE-CARE Roadmap appears to have a great potential to become an important implementation tool ensuring PCC and/or HP sustainable functioning in medical organisations. Initial research has shown the WE-CARE Roadmap potential. However, the framework is not widely recognised and needs revision and explanation. The main barrier to more extensive usage of the framework may be the lack of comprehensive definitions and descriptions of the five enablers. What each enabler stands for, what it embraces, and what are the mechanisms through which the five enablers support the implementation of PCC and/or HP. Thus, the study revises and defines the enablers, as well as deepens the understanding, how each enabler separately and all of them together, as a system of enablers, facilitate the implementation of PCC and/or HP. The comprehensive definition of enablers and analysis of their functioning may help researchers to further investigate the promising framework and managers use it as a tool for PCC and/or HP implementation in their organisations.
The Baltic States were hard-hit during the 2008/09 global economic and financial crisis. Cross border banking interlinkages complicated their crisis response. Fixed exchange rate policy became a condition for future euro adoption and also was an important element in rescuing Scandinavian banks from bankruptcy. Government debts rose sharply in the Baltics during the crisis and still remain much higher than they were pre-crisis. This experience shows how dangerous it can be for small states to relay almost solely on foreign banks from richer, more powerful countries. This case also shows how small states can be vulnerable in their dealings with supranational authorities in this case the EU that favours bank interests over those of the general public, including the poorest segments of the population in those countries.
IThe insurance industry plays a key role in the exceptional circumstances characterized by losses unexpected, including catastrophic events and pandemics. In the last months, the COVID-19 has caused significant transformations to business activities and societal changes following the lock down and the other restrictive political measures to contrast the diffusion of the virus. In this work we discuss the capacity of the insurance industry to handle the economic consequences of the COVID-19 on business and society and the limits resulting from the impact of the pandemic on the sector itself. We outline the insurance coverage opportunities for society, in term of life and health insurance, and for business, focusing on business interruption and cyber risk protection.
The objective of this study is to examine the relationship between environmental performance and the systematic risk of companies. Using a sample of 351 European listed companies over 2007-2015, the authors applied the technique of principal components analysis to calculate a synthetic global index of the environmental performance of companies using 71 evaluation criteria suggested by the ASSET4 database. Using this same approach, the authors calculated the sub-indices of the global index using the following dimensions suggested by ASSET4: the reduction of emissions, product innovation and the reduction of resource usage. To test the relationship between these variables and risk, he authors applied panel data regression techniques. It was found that the synthetic global index of environmental performance negatively affects the risk of the company. The decomposition of this global index into three sub-indices showed that the sub-indices related to the reduction of environmental emissions and the reduction of resource usage make it possible to significantly reduce systemic risk, whereas the sub-index related to product innovation has a rather moderate effect. Thus, environmental performance, just like governance can be considered as an insurance mechanism for the company that reduces the probability of occurrence of events, which negatively affect its cash-flow and the risk faced by investors.
Today’s market is becoming more global, dynamic and competitive hence organisations needs better organisational attractiveness, brand and reputation for sustainability which can be effectively managed through the compelling employee value proposition. The employee value proposition represents the perceived overall deal between employer and employee. The employer makes an offer to the employee (or the give) and expects contributions (or the get) from the employee in return. It is the balance of the offerings and benefits that are received by employees in return for their performance at the workplace. Employee Value Proposition is at the core of all other organizational processes. This paper have adopted the qualitative approach and further reviewed and rethought on Pawar and Charak’s Priority Model of Employee Value Proposition as a framework with its implications in the organisations. The outcome of the study highlights the influences of this framework on employers and employees.
This study concentrates on international expansion of Gul Ahmed Textile Mills Limited (Gul Ahmed) based in Pakistan to Ethiopia. As the target country is facing huge scarcity of textile industry which this case study shall focuses in a greater detail with the help of PESTEL and CAGE frameworks applied. Moreover, this study will also evaluate the competition and threats of the new market and determine the marketing strategies to be implemented considering the norms and culture of Ethiopia. At the end, the authors conclude with the major risks and threats vulnerability that are associated in the international trade and plausible recommendations to diminish and logically reduce the risks to run business operations successfully.
This short communication looks at some significant roles and activities of business and standardization of the corporate social responsibility (CSR) policy. The authors analyzed current CSR practices and related policy in the United Kingdom and demonstrated important advances.
The development of the aviation industry requires the efficient state sectoral policy, which confronts the need for maximization of customer satisfaction, supporting competitiveness of the industry actors, promoting innovations and technological and knowledge sharing, increasing efficiency of the operations, securing financial returns needed to attract investors. The main challenge for the industry is to balance the interests of the actors of the industry. The technology and investment focus of a sectoral policy, which represents the traditional approach, cannot achieve goals of sustainable development any longer. The customer satisfaction represented as a customer value in economic terms is the primary result to deliver for designing the industrial relations networks and value-chains. The structure of the aviation industry is extremely complex as it combines many businesses of global, national and local scale, the multilayer patterns of competition relations and cooperation clusters. The shift towards a customer-oriented sectoral policy groups the industry along the steps of value-creation process, which are all operations for trip arrangements, airport experience and the flight. To analyze the developments inside every step the concept of business ecosystem may be introduced. It focuses on the core value-creating processes and the actors involved. The ecosystem approach helps to define the key factors for the sustainable development of the aviation industry and design the appropriate and efficient sectoral policy.
This study examines the firm-level determinants of cost structure for sugar manufacturing companies in India. Cost structure is an important aspect in profitability planning, and particularly so for the Indian sugar manufacturing industry, as sugar production costs have been very high as compared to global sugar production costs. The sample for the study included fifteen listed sugar manufacturing companies for the period 2008-18. The study uses fixed-effects panel regression models, with size (logarithm of total assets), leverage (debt-equity ratio), asset tangibility (fixed assets as a percentage of total assets), growth rate of sales, and profitability (return on assets) as the independent variables, and the raw material expenditure, power/fuel expenditure, employee expenditure, other manufacturing expenditure, and selling/administrative expenditure (as percentages of the total expenditure) as the dependent variables. The study contributes to the literature by considering an area that has not been addressed in the literature, viz. firm-level determinants of cost structure. The key results of the study were significant positive sales growth effects on raw materials expenditure and employee expenditure, and significant negative sales growth effects on power/fuel expenditure and selling/administrative expenditure; a significant negative profitability effect on power/fuel expenditure; significant negative size effects on raw materials expenditure and significant positive size effects on power/fuel expenditure and selling/administrative expenditure; and a significant negative asset tangibility effect on other manufacturing expenditure.
The industry development requires a certain balance between market power conditions to secure investments returns and competition conditions to secure efficient allocation and use of resources. The deregulation and globalization brought great growth prospects for the aviation industry, while the forth industrial revolution requires new approaches to the industry relation patterns. The state regulation focus more on infrastructure support and control of the competition situation, while industry agents are rebuilding the network of relations to adopt new informational technologies to the strategies of the sustainable development. Open economy conditions create a global market for the aviation industry but also generate risks. The competition appears not only between industry agents, but also among countries and regions, as the aviation industry generate direct, indirect and causal effects on economic development. The sustainable development of the industry will occur as the state focus on customer-value maximization conditions, while the industry agents adopt cooperation strategies to use resources more efficiently. The further research may imply a development of economic and mathematic model of effective choice of aviation industry's economic agents under conditions of efficient distribution of expenses through transfer pricing and intra - industry integration.
This study examines a consequence of the Random Walk Hypothesis for stock prices. If stock price movements were random, it would imply that the number of forward movements of the stock price in the course of a week would follow a binomial distribution. This is the binomial model for stock price movements/returns. The study examines the binomial model for twenty major stocks from the Indian banking sector. The stock price data was collected from the National Stock Exchange (NSE). The study period selected was Apr. 1, 2009 to Mar. 31, 2019, a period of ten years. The results of the study do not support the RWH, as the Bin(n = 4, p = ½) distribution was rejected for a large proportion of sample stocks. However, the results may not be generalizable, as they are based on a small sample of stocks from the banking sector, for a period of only ten years, and perhaps they were affected by the ‘Modi Effects’ - both positive and negative. A more detailed study, with stocks from different industries, with a wider range of size/capitalisation, and for a longer study period, should be used to replicate/validate the results.
The paper concerns the complex and extremely timely issue of payment bottlenecks in the economy. Thus, the phenomenon whose scale has intensified especially in recent years, among others due to the financial crisis. The occurrence of payment bottlenecks is a very serious signal that there is already a crisis in each economic entity. The authors focused on analysing the situation of enterprises in Poland in terms of delays in payments for services rendered or products sold. It was useful in research because it indicated that even in a highly economical country, which records ever-growing economic indicators, payment bottlenecks are a big problem. The scale of the problem and the lack of its solution may, in the long term, be inconvenient to reverse this period of prosperity. Therefore, the authors analysed the scale of this phenomenon in the article, the main factors associated with it, including the types of causes and risks. An important issue was the critical analysis of imperfections of procedures and regulations in this area and an indication of how much governments should do in this matter. The authors have also developed a proprietary model for detecting payment jams, which could limit the scale of this phenomenon and its potential negative consequences.
This viewpoint researches how and if globalization and free market capitalization are related to one another and determines the reasons for their relationship or lack of. To understand the rationale behind the study, we exam first definitional terms, as analysed by different theorists and sources, and take into consideration current interpretations. To better contemplate the connection between globalization and free market capitalism, we dig into why it is the way it is and deliver an easy to follow viewpoint of validation. At end, to better understand the relationship, we take a secondary step and briefly assess a case study of Germany and utilize it as a check on the purposed examination.
This paper aims to define and classify indirect methods of measuring the informal economy in broad. These are macroeconomic methods that are widely utilized to capture what is regarded as hidden from the official Gross Domestic Product. More particularly, the methods such as electricity consumption method, income-expenditure difference method, currency demand method, labour force participation rate, labour input method and structural (MIMIC) model are explained. Finally, a comparison of the five macroeconomic methods is demonstrated for the European Union countries. The paper concludes that the countries with the highest share of the informal economy are Greece, Cyprus, Romania, Bulgaria, Croatia, Italy and Latvia. The countries with the lowest informal economy are Austria, the United Kingdom, the Netherlands, Sweden and Luxembourg.
The study aims to find an appropriate approach to measure performance of the SMEs. The value-added is considered as a main criterion for measuring the SMEs’ performance. For adequate perception of the SMEs' performance and the ability to compare it with other enterprises (competitors), the author proposed a system of enterprise performance measurement, which is simple enough for use by even the smallest enterprise of any industry. This system contains indicators that are commonly available in the annual statistical reports of the SMEs, and includes absolute, relative, and dynamic performance criteria.
The study aims at analyzing firms’ openness to global economy in 2011-2017 with respect to the fact of their membership in mega-regional unions. From this point of view it represents one of the first attempts to analyze micro-aspects of mega-regional processes. For the research purposes 9 indicators from World Bank Enterprise Survey on 19 countries – mega-regional members/participants were analyzed, namely: percent of firms having their own Web site, proportion of total sales that are exported directly (%), proportion of total inputs that are of foreign origin (%), percent of firms with an annual financial statement reviewed by external auditors, percent of firms with an internationally-recognized quality certification, percent of firms using technology licensed from foreign companies, percent of firms using material inputs and/or supplies of foreign origin, percent of firms identifying customs and trade regulations as a major constraint, percent of firms identifying access to finance as a major constraint. It was shown that prior to 2011 mega-regionalization was at the stage of formation: high degree of discrepancy in terms of firms’ involvement into global economic liaisons was observed, low reporting rate on indicators chosen was in place. In 2017 situation changed with BRICS playing leading role in mega-regionalization. The main changes were related to use of foreign resources and foreign licenses as well as with trade and finance access restrictions. It was proved that mega-regions became more integrated into global economy.
The Nordic Baltic region is now closely interlinked via trade, investment, mobility of people, and financial sector. All the eight countries in this group have pursued some form of integration with the European Union (EU). Six of them are EU member states, four of them are members of the euro area, and all of them are within the European Economic Area (EEA) and all are Schengen member states. But can these small countries as a group cooperate more closely and perhaps exercise more collective authority in Europe? The Nordic countries and the Baltic States cooperate in the Bretton Woods institutions, the World Bank and the IMF, and six of them are among European NATO member states. But when it comes to European integration the lack of common approach complicates their cooperation. Within this group there are internal divisions between the hardcore EU and euro area member states (the Baltics and Finland), EU members (Denmark and Sweden) and EU outsiders (Iceland and Norway). Common pathways for the future cooperation in Europe may be hard to find. Also, the Nordics are high income welfare states, but the Baltics are neoliberal with minimal governments and low-tax regimes. Additionally, external forces continue to challenge the Nordic Baltic region, including revanchist Russian policies threatening Baltic sovereignty, unpredictable US policies towards NATO as well as reduced military presence in Europe, and rather dismal EU and euro area post crisis economic performance. All point to a future of uncertainty including both economic and security risks.
