-
The Effect of Fiscal Incentives on Business R&D
Issue:
Volume 7, Issue 2, April 2019
Pages:
37-44
Received:
19 February 2019
Accepted:
30 March 2019
Published:
18 April 2019
Abstract: This paper analyses the determinants of business R&D choices. In particular, it provides new empirical evidence on the effectiveness of fiscal policies aimed at driving companies to invest in R&D activity. By computing two very accurate proxies for firm-specific tax savings achievable when investing in R&D, and by exploiting exogenous changes in fiscal legislation in Italy, this study investigates if fiscal considerations affect companies’ choice to invest in R&D and how much to spend in such activity. The empirical analysis is based on an unbalanced panel data set composed of 163 Italian companies, covering the years 2004-2010. A two-step approach has been implemented, by combining a probit and a tobit estimation model. The results deliver strong empirical evidence that fiscal incentives significantly affect business R&D choices, by one side, increasing companies’ likelihood to invest in R&D, and, by the other, fostering companies’ R&D expenditure.
Abstract: This paper analyses the determinants of business R&D choices. In particular, it provides new empirical evidence on the effectiveness of fiscal policies aimed at driving companies to invest in R&D activity. By computing two very accurate proxies for firm-specific tax savings achievable when investing in R&D, and by exploiting exogenous changes in fi...
Show More
-
The Political Economy of Indonesia’s Renewable Energy Sector and Its Fiscal Policy Gap
Issue:
Volume 7, Issue 2, April 2019
Pages:
45-64
Received:
6 February 2019
Accepted:
21 March 2019
Published:
26 April 2019
Abstract: This research paper identifies fiscal policy gaps that occur in Indonesia’s renewable energy (RE) sector and analyses its political economy. Primary data from 37 stakeholders and secondary data from fiscal policies from Indonesia’s 2007–2017 taken from Ministry of Finance (MOF) and Ministry of Energy and Mineral Resources (MEMR) regulation databases. The fiscal policy data were analysed using a cluster approach and meta-synthesis method. The results show that Indonesia has experienced multi-faceted principal-agent problems between PT PLN, the agent with sole authority to manage electricity transmissions, and various principals, namely the Ministry of State Owned Enterprises (MSOE), the MEMR, the Ministry of Industry (MOI) as the intermediary between domestic and foreign RE industries, and the MOF. While changing the MEMR’s feed-in-tariff (FiT) policies sends an uncertain policy signal, the MOF’s fiscal incentive policies other than FiT to promote RE development in Indonesia remain sub-optimal; the fiscal policies required to incentivise a large volume of small- and medium-scale investment in RE are absent. Differentiated tax rates and tax-break periods for national and foreign companies on the micro, small and medium scales could significantly accelerate the development of RE by both domestic and foreign companies, supporting Indonesia in achieving its sustainable development goals and emission reduction targets under its nationally determined contribution.
Abstract: This research paper identifies fiscal policy gaps that occur in Indonesia’s renewable energy (RE) sector and analyses its political economy. Primary data from 37 stakeholders and secondary data from fiscal policies from Indonesia’s 2007–2017 taken from Ministry of Finance (MOF) and Ministry of Energy and Mineral Resources (MEMR) regulation database...
Show More
-
Effect of Group Composition and Formalization on Financial Performance of Investment Groups in Kenya
Rose Kirui,
Samuel Onyuma
Issue:
Volume 7, Issue 2, April 2019
Pages:
65-73
Received:
10 April 2019
Accepted:
20 May 2019
Published:
12 June 2019
Abstract: Investment groups are important for pooling of financial resources and lowering of investment risk. The issues, which affect their rates of return on investment, is however not fully known. The objective of the study was to analyze the effect of the group composition and group formalization on the financial performance of investment groups in Nakuru Town - Kenya. Descriptive survey design was used and stratified sampling technique was used to select a sample of 130 investment group members as well as investment groups. Data was analyzed using inferential statistics. The results shows that group composition and group formalization influence financial performance of investment groups positively and significantly. The study recommend that policies should be crafted that encourage gender mainstreaming in investment groups and registration of investment groups with members from different ethnic and occupational backgrounds. Training programs and member education on business skills and proper management practices are paramount in improving the financial performance of these groups.
Abstract: Investment groups are important for pooling of financial resources and lowering of investment risk. The issues, which affect their rates of return on investment, is however not fully known. The objective of the study was to analyze the effect of the group composition and group formalization on the financial performance of investment groups in Nakur...
Show More
-
Condition Analysis and Forecasting in the Fashion Industry
Mariusz Czekala,
Agnieszka Bukietynska,
Marek Gurak,
Jacek Jagodzinski,
Jaroslaw Klosowski
Issue:
Volume 7, Issue 2, April 2019
Pages:
74-81
Received:
21 April 2019
Published:
15 June 2019
Abstract: The work considers the problem of demand for the clothing industry's goods. It shows how this problem is connected with the mathematical problem of the partition of the set. Investment decisions depend on a diagnosis based on forecasting demand in individual product groups. These groups are characterized by a number of features and even in the simplest situations (3 attributes) lead to computationally complex situations. In this situation, the recursive partitioning method can be used. This is a method related to the construction of classification trees (regression). These methods are widely used in natural, technical and economic sciences. The main direction of their applications is to support decision-making processes. The article shows how to support the construction of classification trees. The paper proposes a practical solution to the problem using the method of random partitions. The proposed method can be a complement to the recursive partitions method, or used in some situations instead. The submitted method is a practical proposal to avoid the problem of computational complexity. The numerical example shows how to replace a population of about 52 trillion by a sample of only 100. The applied method was justified by an example of a less numerous population, where the result could be verified empirically by reviewing all possibilities. Such verification is not practically possible in the case of 20 product profiles. Such a number generates a number of partitions amounting to almost 52 trillion. The article also presents the estimation of the calculation time. These results are useful from a practical point of view, although they are not optimal.
Abstract: The work considers the problem of demand for the clothing industry's goods. It shows how this problem is connected with the mathematical problem of the partition of the set. Investment decisions depend on a diagnosis based on forecasting demand in individual product groups. These groups are characterized by a number of features and even in the simp...
Show More
