Research on the refinancing capital structure of highway PPP projects based on dynamic capital demand

PurposeWith the majority of highway projects in China having entered their operational phases, the maintenance and repair of the pavement is receiving increasing attention. One problem that needs to be addressed urgently is that of how to raise the proper funds for highway maintenance to ensure the sustainable operation of the project. To this end, the aim of this study is to investigate the capital demand for operation and maintenance of a project by means of a refinancing scheme, in order to reduce the possibility of project bankruptcy and to enhance the economic value of the project.Design/methodology/approachBased on an analysis of the dynamic complexity of the highway pavement maintenance system, a Markov model is used to predict pavement performance, and an optimal capital structure decision model is proposed for highway public–private partnership (PPP) project refinancing, using the method of system dynamics (SD). The proposed model is then applied to a real case study.FindingsResults show that the proposed model can be used to predict accurately the dynamic changes in the demand for road maintenance funds and refinancing during the period of operation, before making the optimal decision for the refinancing capital structure.Originality/valueAlthough many scholars have studied the optimal refinancing capital structure of PPP projects, the dynamic changes inherent in the demand for maintenance funds for highway PPP projects are seldom considered. Therefore, in the approach used here the influence of the dynamic change of road maintenance capital demand on refinancing is investigated, and SD is used for the optimal capital structure decision-making model of highway PPP project refinancing, to make the decision-making process more reasonable and scientific.

Understanding the barriers to women’s career in construction industry: Indonesian perspective

Women’s involvement in the Indonesian construction industry is considerably low accounting for less than 3% of the total workers. Construction as a male-dominated industry becomes a barrier for women to join the workforce. The increase in the need for workforces is proportional to the growth in construction development. The needs cannot only be provided by male workers. Women's participation in the construction industry will contribute to the shortage of human capital demand. The aim of this research is to find the factors that impede women to pursue their careers in the construction industry. 21 factors are gathered from an extensive literature review. After conducting expert interviews, the factors are developed into a questionnaire and distributed to women who are already in the workforce. The analysis based on the Relative Important Index shows that the most influential barrier to women in construction is the lack of worksite security. The factor analysis found five critical barriers to women’s careers in the construction industry. Developing these barriers to a framework gives a broader perspective about the sources of each critical barrier. Internal as well as external elements including worksite, organization, and the industry itself have been the cause that prevents women to pursue their careers in the construction industry.

International Real Estate Review

The question of whether REITs compete for scarce capital across geographic space is deserving of attention. In this study, we consider the issue of spatial competition among REITs across U.S. states in terms of the degree of interdependence in financial capital demand. First, we motivate the issue with a theoretical model of cost minimization by using a representative REIT in a given U.S. state and demonstrate that a priori, it is unclear whether the capital demand of a REIT depends on that of the REITs in other states. Then we use spatial econometrics techniques and find empirically that REITs compete for financial capital with REITs in other states. We also find evidence of feedback (or indirect) effects, thus implying amplified crowding out of financial capital when other REITs in nearby states increase financial capital demand. Our findings are aligned with the predation hypothesis, which suggests that REIT managers might exploit the financial distress of neighboring REITs and/or investors as an opportunity to steal their market share. Another key contribution of this study is that we focus on capital liquidity as opposed to stock liquidity.

International competitiveness of Chinese textile and clothing industry – a diamond model approach

PurposeThe purpose of this paper is to analyze raw materials, labor, capital, demand, related industries, strategies and policies influencing international competitiveness of Chinese textile and clothing industry.Design/methodology/approachThe analysis is conducted using “Diamond Model”, in which raw materials, labor, capital, demand, related industries, strategies and policies are included as explanatory variables, and the impacts of international competitiveness on market share (MS), trade competitiveness(TC) and revealed comparative advantage(RCA) are examined based on the estimated coefficients of these variables.FindingsThese factors have different effects on TC, MS and RCA. While their effects on TC and MS are similar in sign even though their degree of significance differs, their effects on RCA are opposite to TC and MS except for capital. Raw materials and capital have negative effects on TC and MS, while the other factors have positive ones. Raw materials have positive effects on RCA, but all other factors have negative ones.Practical/implicationsThe results from this study imply that it is necessary to increase investment in fixed assets of Chinese textile and clothing industry, speed up the pace of upgrading equipment, improve the level of industrialization, while strengthening the supply of textile raw materials, and lowering raw material prices, thereby reducing the cost of textile and clothing enterprises.Originality/valueTo the best of the authors’ knowledge, this is the first empirical research made using econometric model about the impact of the main factors of trade competitiveness in Chinese textile and clothing industry based on the “Diamond Model”.

ANALYSIS OF THE ATTRACTIVENESS AND COMPETITIVENESS OF THE SECURITIES MARKET IN LITHUANIA

The importance of attractiveness and competitiveness of the Lithuanian stock market has significantly increased in the recent years due to its influence on the capital market as well as on its participants and the economy of the whole country. This article aims to evaluate the attractiveness and competitiveness of Lithuania’s securities market by using a quantitative analysis. It has aimed to define the statistically significant relationship between market attractiveness and competitiveness and the number of listed companies, cross listing, liquidity and trade volumes. The quantitative analysis has provided arguments to conclude that securities market in Lithuania currently is not attractive either from the point of capital supply or from the point of capital demand. In addition, the securities market in Lithuania lacks competitiveness among other markets.

Strategic Complementarities Between Innovation and Human Capital. The Neglected Role of Human Capital Demand

Este estudo analisa as condições em que a procura por capital humano é tão (ou mais) importante do que a simples disponibilidade de recursos humanos qualificados. É tomada a perspectiva de que é a atitude consciente e intencional das empresas, a qual depende em grande medida das suas estratégias, que determina a procura por capital humano, condicionando o seu desempenho econômico. Rejeita-se aqui o caráter automático e linear presente na maioria dos estudos associados à teoria do capital humano. Os resultados, baseados num estudo detalhado de 14 empresas têxteis portuguesas, revelam a “congruência” entre o comportamento destas relativamente à acumulação de capital humano, as características dos seus processos produtivos e mercados e a onipresença do risco de “cisão”. As novas contratações de indivíduos altamente qualificados são vistas como contribuindo pouco para as competências de inovação correntes das empresas. Em contraste, os atuais trabalhadores de altas qualificações são considerados essenciais nestes domínios.