Search results for "Capital employed"
showing 10 items of 13 documents
SOCIAL CAPITAL AND BANK PERFORMANCE: AN INTERNATIONAL COMPARISON FOR OECD COUNTRIES
2008
Over the last few years the literature on social capital and bank efficiency analysis has expanded rapidly. We merge them by analysing how social capital affects bank efficiency in OECD countries. We use activity analysis techniques to measure efficiency, and social capital, which is related to the concept of generalized trust, is considered an environmental variable. Results suggest that the effect of social capital is more relevant for those financial institutions operating in low-social-capital environments. In these cases, inefficiencies are biased upwards, and controlling for social capital enables these banks to move up in the efficiency rankings.
Human capital in OECD countries: Technical change, efficiency and productivity
2003
The aim of this paper is to analyse the role of human capital in the productivity gains of the OECD countries in the period 1965-90, breaking down the productivity gains into technical change and gains in efficiency. For this purpose we use both a stochastic frontier approach and a non-parametric approach (DEA) and calculate Malmquist indices of productivity. The results obtained indicate the existence of both a level effect (a higher level of human capital raises labour productivity) and a rate effect (a higher level of human capital affects positively the rate of technical change) associated with human capital. The differences among countries in endowments of human capital have worked aga…
The effectiveness of bank capital adequacy regulation: A theoretical and empirical approach
2003
The aim of this paper is to analyse how banking firms set their capital ratios, that is, the rate of equity capital over assets. In order to study this isue, two theoretical models are developed. Both models deal with the existence of an optimal capital ratio; the first one for firms not affected by capital adequacy regulation, the second one for firms which are. The models have been tested by estimating a disequilibrium model using data of Spanish savings banks.
A New Third Sector Intellectual Capital Model
2016
The Intellectual Capital (IC) report has become a fundamental tool in the disclosure of non-profit activities, since it is necessary to use a correct framework to represent IC. To achieve the aim of the paper the work is developed as follows: the existing literature on non-profit organizations (NPOs) and IC is examined and relevant aspects to be measured by IC indicators and disclosed by an IC report in the above context are brought into focus. Then extant frameworks for IC reporting are outlined in order to verify whether they fit the aspects qualified as relevant in NPOs and it is pointed out what they lack with reference to the NPOs context. The aim of the paper is to propose an original…
Valuing Common and Preferred Shares in Venture Capital Financing
2012
Abstract This article compares five different methodologies to value common and preferred shares with liquidation rights in a single-period setup of venture capital financing: the venture capital (VC) method; discounted cash-flow valuation with the Capital Asset Pricing Model (CAPM); discounted cash-flow valuation with market model in logs; a risk-preference-based approach; and the real options approach. The risk preference and the real option methodologies are the only ones that can properly account for the contingency in preferred stock. With small financings and small multiples the choice of methodology is not critical; however, with stronger preference rights, the VC method, the CAPM, a…
Intellectual capital and the creation of value in Latvian banking sector: panel data analysis
2010
Intellectual capital (IC) has proven to be under valuated in many countries over the world. This paper provides some evidence that Latvia is not an exception. Author has used the research methods applied in the research on financial sector by the Malaysian, Finnish and Brazilian scientists to provide a view to the issues of IC in Latvian banking sector. The study is based on applying calculated intangible value (CIV), which measures the monetary value of IC or IC stock, value-added intellectual coefficient (VAIC™), which describes how a company's IC adds value to the company and intellectual capital efficiency (ICE), which measure the flow of IC. This paper presents the results on the analy…
Intellectual Capital and its Relationship with Universities
2015
Abstract The Intellectual Capital of a firm is the sum total of its Human Capital, Structural Capital and Relational Capital. These assets form a source of distinct competitive advantage and distinguish the performance of one firm from the other. Some organizations appear to continue relying on traditional resources for wealth creation but they should increase their attention towards a greater reliance on intellectual capital factors. This study attempts to investigate the role of intellectual capital in nowadays modern organizations and in particular, its relevance for education institutions such as universities.
Labour Market Regulations and Capital Intensity
2018
What is the impact of labour market regulations as measured by the OECD indicator of employment protection legislation (EPL) on capital and skill composition? Precisely, this study investigates the effects of changes in EPL on changes in four types of capital and three components of labour skill. They include construction, non-ICT, ICT, and R&D capital components on the one hand, and low-, medium-, and highly-skilled labour on the other. Our analysis is grounded on a large country–industry panel dataset of fourteen OECD countries, and eighteen manufacturing and market service industries, from 1988 to 2007. It shows that strengthening EPL lowers ICT capital and, even more severely, R&…
The Measurement of Human Capital in Family Firms
2017
Intangibles are the key elements underpinning the competitiveness of enterprises. Among them a decisive role is certainly represented by the skills, knowledge, skills and experience possessed by members within organizations, as fundamental drivers thanks to which delineate identity and strategic objectives. Intangible assets became the determinants and foremost sources of company success (Drucker, 1993). The literature on human capital proposed that firms require to recruit, nurture and retain talents so that the knowledge base can be extended, which has the capacity to improve an organization's overall productivity (Boxall, 2003; Lin & Wang, 2005, Lim et al., 2010; Mehralian et al., 20…
Throwing the Spanner in the Works: The Mixed Blessing of FDI
2014
FDI is generally attributed to have positive impact for developing countries. In contrast, this paper shows that foreign capital inflows may cause an economy to be stuck in a middle-income trap. Introducing a simple capital market imperfection into a standard neoclassical (open-economy) model of growth, I show that FDI crowds out domestic investment when countries are still growing. If profitable investments are pursued by foreign capital owners, this does reduce chances for domestic entrepreneurs that they would have otherwise been able to take, by means of economy-wide savings. The long term losses due to the crowding-out effect occur despite the short-term gains that sudden capital inflo…