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- Homayoun, Saeid, et al.
(author)
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The Social Capital and Cash Holdings in an Emerging Economy
- 2022
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In: Economies. - : MDPI. - 2227-7099. ; 10:11
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Journal article (peer-reviewed)abstract
- The present study aims to evaluate the relationship between social capital and cash holdings in firms. The population under study comprises all listed companies on the Tehran Stock Exchange. A total of 175 firms (1050 year-firm) were selected from 2014 to 2020 to evaluate the relationship between variables using the systematic elimination method. Moreover, the moderating role of financial reporting quality in the relationship between social capital and cash holdings was also studied. This paper used multivariable linear regression (panel data) and the EViews software to implement the study’s objectives. The present study results show a negative relationship between the social capital of firms and cash holdings and a positive association between social capital and financial reporting quality. In other words, cash holdings drop with the increase in social capital. Further, financial reporting quality improves with the increase in social capital. The financial reporting quality moderates the relationship between the social capital of firms and cash holdings. This paper indicates that the region’s social capital, where the firm is located, has a significant role in contributing to its cash value. The current study is the first to assess social capital structure in the cash holdings literature. The impacts of social capital contribute to financial outputs. Social capital has a positive economic result against strong cooperation norms and dense social networks. Few studies analyzed the effect of social capital on firms’ decision making. In this area, the present study contributes to the literature development and the impact of social capital on firms’ results.
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| 2. |
- Yimam, Seid Hussen, et al.
(author)
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Understanding Urban Land Leasing System as a Strategic Value Capture Instrument to Enhance Urban Revenue in Ethiopia : A Case Study of Bahir Dar City
- 2022
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In: ECONOMIES. - : MDPI AG. - 2227-7099. ; 10:6, s. 146-
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Journal article (peer-reviewed)abstract
- Since 1993, the Ethiopian government has been using the urban land leasing system to monetize the increase in land value created due to factors other than private investment. Thus, this paper aims to explore and understand whether Bahir Dar city is leveraging the urban land lease system as a strategic value capture instrument to enhance its local revenue or not. This study has used the qualitative research method and in-depth analysis. It has used a desk review of documents and key informant interviews of experts and brokers to collect the data required to realize the objective of this study. The study has found that the majority of the urban land is held in a permit system, with landholders paying a small amount of land rent per annum. In addition, the study has uncovered that the city has transferred most of its land through administrative allotment at low and outdated benchmark prices, which has dwindled its lease revenue. Moreover, it has identified that there is weak enforcement of the lease payment collection, and it has adversely affected the city's urban revenue generation potential. As a result, the city is not leveraging the public land leasing system as a strategic value capture instrument. Based on these findings, this paper has advised the government to implement a modern property tax system to capture value increment on permit holding land. In addition, the study proposes to carry out an empirical investigation and identify the factors that significantly affect the benchmark prices and update the benchmark price regularly given those factors. Moreover, the study has suggested a proper enforcement of the lease payment collection in the city.
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