Credit Constraints and Increased Firm-level Production Fragmentation: Evidence from India

Previous studies have underlined various rationales for production fragmentation from wage differentials, decreased trade costs, access to specialized skills and resources, access to new markets, and benevolent government policies, to technological advancement. However, the idea that a firm’s financing structure can influence its production structure remains less explored, more so empirically. Firms that are financially constrained find it difficult to complete the entire production process in-house and therefore tend to resort to production fragmentation. The current study investigates this link between the extent of credit constraints faced by firms and their outsourcing behavior using data from Indian manufacturing firms over a period of ten years. We also separately study this linkage for firms that tend to export more vis-à-vis firms that export less, to ascertain if increased exporting have relaxed the financial constraint of the firms. The results confirm the positive effect of credit constraints on outsourcing behavior. For a robustness check, subsample regressions and alternative measures of constraints are also analyzed. The study has important policy implications for developing countries such as India, where outsourcing may prove to be a profitable reorganization strategy for firms that are financially constrained.

DAMPAK PEMBIAYAAN INVESTASI DENGAN UTANG DAN JAMINAN DARI MODAL SENDIRI (Case Study PT Agung Podomoro Land Tbk)

This study aims to recommend decision making related to the use of debt in corporate financing. This study took data from PT Agung Podomoro Land Tbk. In addition to developing, the company also plays a role in providing modern residential facilities. This study focuses on the financing structure between debt and equity. The results of the study become an important study to see the company's performance through the LTDER ratio with the use of 2017-2019 data. The results of the study found that there was a large percentage of debt financing carried out by companies from 2017 to 2019. This condition indicates that debt financing makes a greater contribution than own capital to funding and business growth. Keywords: Financing, Long-Term Debt, Equity

Corporate Carbon Disclosure, Financing Structure and Total Factor Productivity: Evidence from Chinese Heavy Polluting Listed Corporates

Low-carbon economy has become the current global economic development trend, and Corporate carbon disclosure has attracted more and more attention from scholars and investors. This paper creatively explores the mechanism of corporate carbon disclosure quality on total factor productivity with financing structure as a mediating variable. The content analysis method is used to construct a carbon disclosure evaluation index system that is suitable for Chinese companies. Through the mediating effect model and Sobel test, the internal mechanism of carbon disclosure quality affecting total factor productivity is analyzed, with Chinese heavy polluting listed corporates from 2015 to 2018 as research samples. The empirical results show that, Firstly, the Quality of carbon disclosure has a positive effect on the improvement of total factor productivity. The effect of monetary carbon disclosure quality on the improvement of total factor productivity is higher than that of non-monetary carbon disclosure quality. Secondly, the financing structure has a mediating effect on the quality of carbon disclosure and total factor productivity, and the mediating effect of internal financing capabilities is better than those of external financing costs. Finally, external financing costs and internal financing capabilities have mediating effects in both heterogeneous carbon disclosure quality and total factor productivity. The mediating effect of internal financing capabilities is significantly higher than the mediating effect of external financing costs. Meanwhile, the effect of monetary carbon disclosure quality on total factor productivity indirectly through internal financing capabilities is higher than that of non-monetary carbon disclosure quality.

Development of the Financing Structure of Corporate Social Responsibility Practices

The article features the concept of corporate social responsibility and its financing. Russian publications usually focus on theory. However, such practices and the related profit depend on how the company allocates its financial resources. By solving this matter, commercial organizations can solve many issues of inefficient or unsystematic spending of funds. Modern business needs verified mechanisms for financing corporate social responsibility in order to develop corporate management. The article introduces various issues related to social and environmental activities that are new to domestic business. The author proved the relevance of the availability of financing mechanisms for these areas, thus distinguishing the system of corporate social responsibility from unsystematic environmental or social spending, as well as from one-time charity events or promotions.

Bizonyítékokon alapuló egészségpolitikai döntéshozatal az integrált ellátásban.

Összefoglaló. Bevezetés: A ritka betegséggel élők ellátásában fontos előrelépések történtek az elmúlt években. Egy következő lépés lehetne hazánkban a Ritka Betegségek Nemzeti Erőforrás (Uni-Versum) Központjának (a továbbiakban: Központ) létrehozása, amely az egészségügyi, szociális és köznevelési szolgáltatásokat összehangolva és kiegészítve személyközpontú ellátást nyújtana a betegek és támogatóik részére. Célkitűzés: Célunk az volt, hogy egy nemzetközi tudományos módszertan alapján javaslatokat tegyünk arra, hogy milyen eszközökkel lehet feloldani a Központ megvalósításának lehetséges korlátozó tényezőit. Módszer: A Központ megvalósíthatóságának értékelésére interdiszciplináris szakmai egyeztetést szerveztünk különböző érintett érdekcsoportok részvételével, a SELFIE H2020 kutatási projekt által kidolgozott módszertan alapján. Az előzetesen rangsorolt legfontosabb korlátozó tényezőkre lehetséges megoldási javaslatokat tettünk. Eredmények: A lehetséges korlátozó tényezőket a résztvevők relevánsnak tartották a Központ létrehozásával kapcsolatban, és ezekre összesen 17 olyan konkrét javaslat született, amelyben a résztvevők között egyetértés alakult ki. A javaslatok kiterjedtek az ellátás tartalmára, az alkalmazott technológiák támogató szerepére, a humánerőforrás-korlátok megoldására, a hatékony vezetés és szervezés kialakítására, az összetett finanszírozási struktúra kialakítására és a kutatási lehetőségek megteremtésére is. Megbeszélés: A Központ megvalósítása esetén a ritka betegséggel élők ellátása az egészségügyi, szociális és köznevelési tevékenységeket integráló megközelítés felé mozdulna el. A kutatás során megfogalmazott javaslatok hozzájárulhatnak a Központ létrehozásához, amennyiben megvan az ehhez szükséges szakpolitikai támogatás is. Ezen túlmutatóan, a leírt munkamódszer más integrált ellátási modellek bevezethetőségének elemzéséhez is mintaként szolgálhat. Következtetés: Összefoglalva megállapíthatjuk, hogy a Központ létrehozásához számos, előzetesen is látható korlátozó tényezőt kell feloldani. Az érdekcsoportok közös javaslatai alapján kialakítható egy olyan működési forma, amely az ellátórendszerek kiegészítésével és összehangolásával jelentős társadalmi értéktöbbletet eredményezhet. Orv Hetil. 2021; 162(45): 1818–1825. Summary. Introduction: In Hungary, significant achievements have been made in the care of patients with rare diseases in recent years. A next step could be the establishment of the National Resource Centre for Rare Diseases (hereinafter: Centre) to facilitate patient-centered complex care by the integration and supplementation of existing health, social and educational services. Objective: This research aimed to develop recommendations based on international scientific methodology to overcome potential implementation barriers of the aforementioned Centre. Method: To evaluate the feasibility of the implementation, we organized an interdisciplinary workshop with representatives of different stakeholder groups, adopting the methodology developed in the SELFIE H2020 research project. During the workshop, we discussed the previously ranked, most significant implementation barriers and made recommendations for potential solutions. Results: The potential implementation barriers were considered relevant by the participants and, reflecting on these barriers, altogether 17 recommendations were developed by consensus. These recommendations were related to the content of service delivery, use of supportive technologies, overcoming workforce issues, establishing effective leadership, implementing a complex financing structure and creating research opportunities. Discussion: Implementation of the Centre would shift the care of rare diseases towards personalized and integrated health, social and educational services. Our recommendations will contribute to the establishment of the Centre, subject to positive policy decision. Furthermore, our methodological approach could support the feasibility assessment of future integrated care solutions and programs. Conclusion: Several predictable barriers must be overcome to establish the Centre. Recommendations developed by representatives of relevant stakeholders could support successful implementation and societal value generation. Orv Hetil. 2021; 162(45): 1818–1825.

An Innovative Conceptual Model to Structure Financing Package of Infrastructure Projects

Understanding the correct way to determine the financing package for infrastructure projects, identifying proper processes, resources, techniques, and instruments to realize successful financing approaches, and private sector participation in providing development infrastructures are irrefutable. The main purpose of this study is to present a comprehensive model covering these complex issues. To this end, using the library studies, receiving expert opinion, and recognizing international financing processes, information was gathered on this subject; therefore, in this paper, the model of designing financing package for infrastructure projects is processed and identified, and designing the financing structure is closely related to the ownership structure of the project and its guaranteed package. These will change in a repeatable process until the end of the preparation phase and sometimes in project steps. The ownership of the infrastructure projects is determined by this repeatable process, which defines initial sponsors, costs, and benefits for partners, types of financial instruments, and techniques and evaluates risks and capital structure. In this paper, we suggest a model to help practitioners more effectively and systematically finance infrastructures. The development of guidelines and information resources in this field is one of the effective measures to build capacity and eliminate possible ambiguities and misunderstandings about public-private partnership.