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Corporate Tax Strategy, Risk, and Long-Term Value Creation: Insights from Technology, Pharmaceutical, and Manufacturing Sectors
No full textThis study quantifies the impact of corporate tax policies on shareholder equity with a particular focus on the role of effective tax planning, potential violations, and the overall value of firm operations. A descriptive–correlational research design was adopted, drawing on the theoretical foundations of agency theory, stakeholder theory, and legitimacy theory. The analysis was conducted on 150 multinational corporations operating in the technology, pharmaceutical, and manufacturing sectors over the period 2018 to 2023. Panel data regression results demonstrate a significant negative association between the effective tax rate and firm value. This finding explains that tax-minimizing strategies contribute positively to firm valuation. However, the study further reveals that the benefits of stratified effective tax rate strategies can only be sustained in the long run under conditions of strong governance structures. Firms with well-developed governance systems, including independent boards of directors and robust audit and control mechanisms, were able to mitigate the reputational and regulatory risks typically associated with aggressive tax minimization. An industry-level analysis highlights that the technology sector, which relies heavily on intangible assets, faces stricter regulatory scrutiny and correspondingly higher risk exposure. The evidence indicates that while tax relocations and planning strategies may enhance short-term shareholder value, unethical practices or deviations from regulatory standards compromise long-term sustainability. The study concludes that there is a pressing need for transparent, stakeholder-oriented, and well-regulated taxation practices. By embedding such practices into corporate governance frameworks, firms can achieve a balance between maximizing shareholder value and ensuring compliance with ethical and legal expectations. That would present a sustainable value creation that is suitable for the managers and policymakers
The Application of Al-Rahn Contract Using Future Asset under Debenture Structure: Analysis on the Aspect of Prohibition of Gharar
Get PDFOne of the essential conditions to conclude al-Rahn (pledge) contract is to ensure that the pledged asset (Mal al-Marhun) is available during contract execution. The absence of this aspect may trigger the issue of Gharar (uncertainty) which would affect the validity of al-Rahn contract. This paper will look into the application of al-Rahn contract under debenture structure where the asset used as security for the debenture may include future asset which shall only be determined during crystallisation stage. The analysis will focus on the concept of Gharar and whether the issue of non existence of pledged asset may tantamount to element of excessive Gharar which is prohibited under Islamic commercial law (Fiqh al-Muamalah)
Построение краткосрочных прогнозов социально-экономических показателей россии на основе последовательного применения ранжированных моделей
Get PDFAbstract. The authors present a methodology for constructing short-term forecasting models using sequential application of mathematical models such as ARIMA, multiple linear regression, regression decision tree and random forest. The models in the article are ranked in order of increasing computational complexity and in order of decreasing stability and interpretability. The modeling tool is the information and analytical system "Horizon" developed by the staff of the Plekhanov Russian University of Economics
The impact of banks’ liability management on large lending volume. Empirical Evidence from US Banks
Get PDFBanks provide credit to large firms either to finance large firms’ investment projects with positive net present values or to lend out SMEs indirectly through the expansion of trade credit by large firms which have Access to bank credit. The aim of the current article is twofold: to provide empirical evidence that time deposits affect the supply of large lending and to study whether the large lending volume differs according to banks’ characteristics. We employ a Heckman’s sample selection model to take into account the latent (unobserved) mechanism that banks use to decide whether to lend out large firms either to finance their goals or to provide trade credit to SMEs. We create a panel of US banks acquired from Statistics on Depository Institutions (SDI) report made by Federal Deposit Insurance Corporation (FDIC) covering the period from 2012 to 2021. The results of this study offer us empirical evidence of positive relationship between large lending volume and time deposits, which means that the availability of long time-term liabilities increases large lending as this flexibility of banks’ liability management implies that banks can aggressively expand their assets obtaining funds (by issuing time deposits) as they were needed
Resolving Coordination Frictions in Green Labor Transitions: Minimizing Unemployment, Costs, and Welfare Distortions
Get PDFSuccessfully transitioning to a low-carbon economy by 2050 necessitates not only technological advancements but also the swift reallocation of the workforce. Existing policies, such as the Inflation Reduction Act (IRA), focus on firm subsidies while overlooking critical labor market coordination frictions. Workers face high entry costs and uncertainty about green job opportunities, while firms hesitate to invest without a reliable labor supply. This creates a coordination problem: workers are reluctant to enter the green sector without job guarantees, and firms delay expansion without sufficient workers.
This paper extends the Diamond-Mortensen-Pissarides (DMP) model to incorporate these coordination frictions, calibrating it to U.S. labor market data. By evaluating subsidies targeted at firms, workers, and a combined strategy, the analysis shows that while individual subsidies can achieve the green employment target of 14% by 2030, a combined approach is far more efficient. It aligns incentives, reduces unemployment, and minimizes fiscal costs, highlighting the necessity of addressing coordination frictions to ensure a cost-effective and equitable green transition
The disbalances concept as an alternative to the market failure concept for the outline market inability
Get PDFThe problem of identification of efficient economic conditions, arising from the «horizontal» agents’ relationship, is considered. It’s shown that the application of classical concept of market failure is insufficient. The alternative concept of disbalances are examined. The greater universality and convenience of the “quantitative” concept of disbalances for identifying the effectiveness of states formed in the process of mutual activity of economic subjects, compared to the concepts of market failure, was substantiated. In particular, it allows us to evaluate the effectiveness of the market relationship of agents according
IV Estimation of Heterogeneous Spatial Dynamic Panel Models with Interactive Effects
Get PDFThis paper develops a Mean Group Instrumental Variables (MGIV) estimator for spatial dynamic panel data models with interactive effects, under large N and T asymptotics. Unlike existing approaches that typically impose slope-parameter homogeneity, MGIV accommodates cross-sectional heterogeneity in slope coefficients. The proposed estimator is linear, making it computationally efficient and robust. Furthermore, it avoids the incidental parameters problem, enabling asymptotically valid inferences without requiring bias correction. The Monte Carlo
experiments indicate strong finite-sample performance of the MGIV estimator across various sample sizes and parameter configurations. The practical utility of the estimator is illustrated
through an application to regional economic growth in Europe. By explicitly incorporating heterogeneity, our approach provides fresh insights into the determinants of regional growth, underscoring the critical roles of spatial and temporal dependencies
Blockchain-based E-commerce: It’s an Evolution, NOT a Revolution -- Experimental Evidence from Users’ Perspective
Get PDFProponents of blockchains believe that this technology will revolutionize e-commerce. To evaluate this belief, we invite several groups of students to transact on a decentralized peer-to-peer marketplace built on the platform provided by Origin Protocol Inc., and then we conduct a survey about their experience of usage. Based on our survey results, we find that 33% of respondents play tricks on others, which implies that this undesirable result may hinder the widespread adoption of blockchain technologies. We also attempt to propose a conceptual mechanism to mitigate fraudulent behaviors. In the event of disputation, a trusted authority is entitled to the right to downgrade the fraudulent side’s credit record, which is stored by a permissioned blockchain accessed only by the authority. Such a punishment can effectively decrease agents' incentives to sell counterfeits and leave fake ratings. In sum, we must distinguish what we proposed blockchains will do and what blockchains can do before enabling this technology in e-commerce
Environmental Challenges, COVID-19, and Economic Dynamics in the American Continent
Get PDFThis paper discusses the interplay between environmental challenges, the COVID-19 pandemic, and economic dynamics across the American continent, utilizing the Environmental Kuznets Curve framework to explain how economic growth interacts with environmental degradation amid unprecedented market volatility. By synthesizing empirical research from Latin and North America, diverse responses in environmental policies and economic performance are noticed, highlighting shifts in sustainable investments and disruptions in food supply chains. The analysis underscores the critical need for coordinated, data-driven policy efforts that align short-term recovery measures with long-term environmental sustainability in a post-pandemic landscape
Strategy for securing employment that considers job filling, separation, and productivity shocks
Get PDFSecuring employment is one of the most important issues for a firm’s production. This study investigates labor demand dynamics in a situation where the firm faces job filling and turnover using numerical analysis. This study derives the relationship between labor input and strategic labor input target and introduces the relationship into a labor demand model. This relationship can be concave, convex, or linear, depending on the ratio of the job-filling rate to job-separation rate. The firm adjusts the labor input by choosing a strategic labor input target that incurs adjustment costs. The response of labor input to a shock in productivity increases with an increase in the ratio in the model with adjustment costs but does not change in the model without adjustment costs. The response of the strategic labor input target to the shock is increased or decreased by increasing the ratio in the model with or without adjustment costs. From the viewpoint of securing employment, a ratio that most easily secures employment exists when a shock occurs. Therefore, policies that increase this ratio may not necessarily facilitate securing employment if the ratio is high