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Journal of Applied Management and Investments



ISSN 2225-3467



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Current Issues & Archive

 Volume 9 Issue 2 2020                                  Abstracts







 Corporate social Responsibility Practices in the United Kingdom

D. Das, G. T. Cirella       

This short communication looks at some significant roles and activities of business and standardization of the corporate social responsibility (CSR) policy. The authors analyzed current CSR practices and related policy in the United Kingdom and demonstrated important advances.

Keywords: government policy, retail sector, banking sector, non-profit organizations, United Kingdom

JEL Codes: M10, M14, G34

Citation: Das, D. and Cirella, G.T. (2020), “Corporate social responsibility practices in the United Kingdom”, Journal of Applied Management and Investments, Vol. 9 No. 2, pp. 51-54.


  Firm-Level Determinants of Cost Structure of the Indian Sugar Industry     

M. Dash

This study examines the firm-level determinants of cost structure for sugar manufacturing companies in India. Cost structure is an important aspect in profitability planning, and particularly so for the Indian sugar manufacturing industry, as sugar production costs have been very high as compared to global sugar production costs. The sample for the study included fifteen listed sugar manufacturing companies for the period 2008-18. The study uses fixed-effects panel regression models, with size (logarithm of total assets), leverage (debt-equity ratio), asset tangibility (fixed assets as a percentage of total assets), growth rate of sales, and profitability (return on assets) as the independent variables, and the raw material expenditure, power/fuel expenditure, employee expenditure, other manufacturing expenditure, and selling/administrative expenditure (as percentages of the total expenditure) as the dependent variables. The study contributes to the literature by considering an area that has not been addressed in the literature, viz. firm-level determinants of cost structure. The key results of the study were significant positive sales growth effects on raw materials expenditure and employee expenditure, and significant negative sales growth effects on power/fuel expenditure and selling/administrative expenditure; a significant negative profitability effect on power/fuel expenditure; significant negative size effects on raw materials expenditure and significant positive size effects on power/fuel expenditure and selling/administrative expenditure; and a significant negative asset tangibility effect on other manufacturing expenditure.

Keywords:  cost structure, sugar manufacturing, companies, leverage, asset tangibility, profitability, expenditures

JEL Codes:  D24, G12, L66

Citation:  Dash, M. (2020), “Firm-Level Determinants of Cost Structure of the Indian Sugar Industry”, Journal of Applied Management and Investments, Vol. 9 No. 2, pp. 55-62.


    Belt and Road Initiative: Comment

M. Groszewski,  G. T. Cirella

The Belt and Road Initiative (BRI) idea dates back to China’s ancient past. It is a traditional concept of creating trade routes across Asia, spanning into Europe. With clear vantage points of developing a new BRI that extends into the next few decades, China is projected to significantly dominate much of Eurasia and Africa by as early as 2030. International investment in conjunction with reciprocal initiatives interplays important steps in achieving this worldwide economic dominance. Key regional strategies include a three-pronged approach, i.e., Northern Path, Middle Path, and Southern Path, as well as crucial participation and investment into the Association of Southeast Asian Nations. China’s future development and dynamism to overtake the United States as the world’s economic leader is in part an important ambition that should not be underestimated.

Keywords: New Silk Road, macroeconomics, international trade routes, investment, dynamic synergy, China

JEL Codes: F21, O22, O53

Citation:  Groszewski, M. and Cirella, G.T. (2020), “Belt and Road Initiative: Comment”, Journal of Applied Management and Investments, Vol. 9 No. 2, pp. 63-70.


 The Ecosystem Approach to the Aviation Industry Development Policy    

Y. Hrinchenko

The development of the aviation industry requires the efficient state sectoral policy, which confronts the need for maximization of customer satisfaction, supporting competitiveness of the industry actors, promoting innovations and technological and knowledge sharing, increasing efficiency of the operations, securing financial returns needed to attract investors. The main challenge for the industry is to balance the interests of the actors of the industry. The technology and investment focus of a sectoral policy, which represents the traditional approach, cannot achieve goals of sustainable development any longer. The customer satisfaction represented as a customer value in economic terms is the primary result to deliver for designing the industrial relations networks and value-chains. The structure of the aviation industry is extremely complex as it combines many businesses of global, national and local scale, the multilayer patterns of competition relations and cooperation clusters. The shift towards a customer-oriented sectoral policy groups the industry along the steps of value-creation process, which are all operations for trip arrangements, airport experience and the flight. To analyze the developments inside every step the concept of business ecosystem may be introduced. It focuses on the core value-creating processes and the actors involved. The ecosystem approach helps to define the key factors for the sustainable development of the aviation industry and design the appropriate and efficient sectoral policy.

Keywords:  aviation industry, sectoral policy, development policy, ecosystem, business ecosystem, customer value, value creation

JEL Codes:  O25, Q57, L93

Citation:  Hrinchenko, Y. (2020), “The Ecosystem Approach to the Aviation Industry Development Policy”, Journal of Applied Management and Investments, Vol. 9 No. 2, pp. 71-84.



 Environmental Performance and Risk of European Firms

J.-M. Sahut, E. Braune, L. Hikkerova, L. D. Wamba

The objective of this study is to examine the relationship between environmental performance and the systematic risk of companies. Using a sample of 351 European listed companies over 2007-2015, the authors applied the technique of principal components analysis to calculate a synthetic global index of the environmental performance of companies using 71 evaluation criteria suggested by the ASSET4 database. Using this same approach, the authors calculated the sub-indices of the global index using the following dimensions suggested by ASSET4: the reduction of emissions, product innovation and the reduction of resource usage. To test the relationship between these variables and risk, he authors applied panel data regression techniques. It was found that the synthetic global index of environmental performance negatively affects the risk of the company. The decomposition of this global index into three sub-indices showed that the sub-indices related to the reduction of environmental emissions and the reduction of resource usage make it possible to significantly reduce systemic risk, whereas the sub-index related to product innovation has a rather moderate effect. Thus, environmental performance, just like governance can be considered as an insurance mechanism for the company that reduces the probability of occurrence of events, which negatively affect its cash-flow and the risk faced by investors.

Keywords: environmental performance, reduction of emissions, product innovation, resource usage, systematic risk

JEL Codes: O44, Q56, C21

Citation: Sahut, J.-M., Braune, E., Hikkerova, L. and Wamba, L.D. (2020), “Environmental Performance and Risk of European Firms”, Journal of Applied Management and Investments, Vol. 9 No. 2, pp. 85-104.







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