Documents capital investment 66 results

"Differences between capital exporting and capital importing countries are decreasing, which may facilitate an agreement on international investment rules. This has been an aim of EU policy for some time. However, the emergence of mega regional agreements have echoes of previous plurilateral agreements. This European Policy Analysis assesses the impact of the mega regional agreements on international investment norms by considering the likely outcome of the Transpacific Partnership negotiations (TTIP) and the text of EU-Canada Comprehensive Economic and Trade Agreement (CETA). It finds the mega regional agreements may introduce norms that are closer to the preferences of developing countries. On the other hand, pressing ahead with mega regional agreements will reduce the incentive to reach a genuine multilateral investment agreement."

"Since the early 2000s, scholars from a variety of disciplines have used the concept of financialization to describe a host of structural changes in the advanced political economies. Studies of financialization interrogate how an increasingly autonomous realm of global finance has altered the underlying logics of the industrial economy and the inner workings of democratic society. This paper evaluates the insights of more than a decade of scholarship on financialization. Three approaches will be discussed: the emergence of a new regime of accumulation, the ascendency of the shareholder value orientation and the financialization of everyday life. It is argued that a deeper understanding of financialization will lead to a better understanding of organized interests, the politics of the welfare state, and processes of institutional change."

"Based on the literature on the diversity of capitalism (DoC) and legal origin (LO), this article examines the role of institutional configurations in the uneven development of private equity (PE) in 18 European countries. The article shows that developed stock markets, the ability of limited partners (insurance companies) to invest in LBO funds and low employment protection are more important determinants than investor protection in the case of LBO investments. However, venture capital (VC) investments are found to be positively associated with investor protection but also with developed stock markets and favourable tax rates for managers. R&D tax incentives for investee companies are found to have a negative impact on VC investments, which are nonetheless promoted by public R&D expenditures. Even if national institutional configurations matter in explaining differences, as emphasised by LO and DoC, we observe a common trend in PE development and financialisation."

"Treating research and development as an asset requires a number of important steps. The first step is to determine the components of research and development expenditure to be included as investment and then to translate those expenditure components into a National Accounts compatible format. The second step is the construction of appropriate deflators for research and development assets.The final step requires the estimation of appropriate depreciation rates for research and development capital. This article presents work undertaken by the Office for National Statistics on these three steps for the UK business sector and also some estimates of the productivity impact of research and development on business sector firms. "

"The share of small investors leaving the financial market in autumn 2008 was no greater than in previous, smaller crises. Why is there no mass exodus at such junctures? Why do most small investors practice ‘loyalty' instead of ‘exit' (Hirschman)? Even more importantly, why do they enter the financial market at all since its ‘hypercomplexity' exposes them to an experience of confusion and helplessness? Behavioural economics provides some partial answers, but they remain too abstract and ahistorical and give a very reductionist picture of decision-making. In reaction to this incomplete understanding of the ‘loyalty' puzzle, I will present two important explanatory factors from sociological reasoning: collectively shared stories as reducers of ‘hypercomplexity' in which small investors' decision-making is embedded, and the rebuilding of the welfare state, which forces more and more people to become small investors and stay in the market despite serious losses. "

"Patient capital is vital to start-up companies which often struggle to access traditional finance. This article conceptualizes the conditions in which venture capital (VC) demonstrates patience in an effort to better understand the sources of patient capital available for start-up companies. VC investment stage is identified as a key determinant of VC patience. VC ‘seed stage' investing demonstrates patience through its long intended investment horizon, engagement focused on long-term value and loyalty in the face of poor short-term performance. Companies receiving seed funding, then ‘follow-on' funding, receive the most patient form of VC. An empirical analysis reveals that VC seed activity has proliferated across the USA, UK, Germany and Japan since the run-up to the Global Financial Crisis. The article concludes that VC is a growing source of patient capital for high-growth start-up companies, though several factors confound its intertemporal and intra-portfolio patience."

"In this paper we present a search and matching model in which firms invest in sunk capital equipment. By comparing two wage setting scenarios, we show that a two-tier bargaining scheme, where a fraction of the salary is negotiated at firm level, raises the amount of investment per worker in the economy compared to a one-tier bargaining scheme, in which earnings are entirely negotiated at sectoral level. The model's main result is consistent with the positive correlation between investment per worker and the presence of a two-tier bargaining agreement that we find in a representative sample of Italian firms."