This research aims to explore key success factors in profit-sharing-based contracts. Profit-sharing-based contracts such as mudharabah and musharakah carried out by Islamic banks are the core of ...financing in Islamic banks because they are directly related to the productive sector. The impact of this type of financing is greater for the industrial world than that of buying and selling-based financing. However, the facts show that there has been a decrease in the performance of the percentage of profit-sharing-based financing during the 2019-2022 period, and conversely, buying and selling-based financing has increased. In addition, the total operating profit from profit-sharing-based financing has also decreased during the 2019-2022 period. Mudharabah financing is mainly carried out on the basis of trust that arises between the owner of the funds (shahibul maal) and the business manager (mudharib). This study uses a qualitative approach with a literature review in order to gain a comprehensive understanding of the key success factors in profit-sharing-based financing contracts. Key success factors that are deepened based on the trust metaphor include knowledge of the rights and obligations of mudharib and shahibul maal, honest reporting, monitoring, and guarantees. In fulfilling the Trust, each party is required to have adequate knowledge of their rights and obligations in mudharabah and musharakah contracts. The honest and adequate presentation of financial information is disclosed by mudharib with reference to relevant Sharia accounting standards such as PSAK 101, PSAK 105, and PSAK 106. This disclosure is a form of mudharib's responsibility to shahibul maal. Regular monitoring can be carried out by shahibul maal actively or passively. Guarantees can be applied in sharing-based financing contracts other than guarantees provided by mudharib. This study produces theoretical contributions to science in the field of Sharia accounting and practice, especially for practitioners in the Sharia banking industry.
This research aims to test and analyze the influence of local revenue and profit-sharing funds on regional spending, as well as the influence of budget ratcheting on local revenue and profit-sharing ...funds on regional spending. This research was conducted in districts and cities in West Nusa Tenggara Province, with observation years starting in 2017–2021. The sample determination method in this research is the purposive sampling method, with predetermined criteria. This research uses secondary data in the form of Regency/City Revenue and Expenditure Budget (RREB) data and Budget Realization Reports (BRR), which are published on the official website of the Directorate General of Fiscal Balance, Ministry of Finance of the Republic of Indonesia. This research uses a quantitative approach with data analysis techniques using SPSS 26. The research results show that local revenue has a positive effect on regional spending, profit-sharing funds do not have a positive effect on regional spending, budget ratcheting strengthens the influence of local revenue on regional spending, and budget ratcheting weakens the influence of profit-sharing funds on regional spending.
•Identifying the advantages and disadvantages of the extant RHL transfer modes.•A new framework for RHL transfer is established based on the separation of three rights and two values.•A long-term ...mechanism to protect farmers’ interests is built under collective membership.•It increases the understanding of the relationships among farmers, collectives, and governments.
Rapid urbanization in China has triggered the mass migration of rural populations to cities, resulting in a shortage of urban land and inefficient use of rural homestead land (RHL). To address these issues, there is increasing interest in allowing for RHL transfer. Although several transfer modes have been implemented in pilot areas, the long-term protection of farmers’ interests has been largely neglected. One-off transfer compensation and forced transfer often occur in practice, and there is no collective profit sharing. This paper explores the advantages and disadvantages of the extant transfer modes using comparative analysis. We propose a novel RHL transfer system under collective ownership, and three highly related key aspects add layers of protection: the separation of three sets of rights (ownership, tenure, and membership), the separation of land value from the value of accessory buildings and durable goods, and profit sharing among the collective members. The advantages of the proposal are summarized as follows: (1) it provides long-term protection for farmers’ interests based on membership in the collective; (2) endows the collective with actual rights of self-governance and collective autonomy; and (3) decreases institutional costs and reform risks and improves land-use efficiency of RHL. The implications of the proposal regarding topics of concern are also discussed. This study offers a clear direction for RHL transfer and increases the understanding of the essence of the collective ownership of RHL and relationships among farmers, collectives, and governments during RHL transfer.
To maximize customer value created by a supply chain system as a whole, one of the key issues in supply chain management is how to have profit and benefit properly shared between partners in an ...effective manner of the supply chain integration. In this regard, information sharing between partners plays a rather important role in business process and management integration of the supply chain. The paper focuses on analyzing the value created from information sharing by decreasing inventory level and on investigating the collaborative mechanism of providing incentive to retailer by upstream partner via sharing profit gained information sharing in the context of three-echelon supply chain system. The issue of dealing with the interest conflict between the supply chain as a whole and individual partners is addressed based on information sharing analysis by means of cooperative game approach, a graphic model with three-dimensions is developed to depict the possible cooperative solutions of profit allotment between partners, and a problem solving method addressing how the profit allotment between partners can effectively motivate the partners to be cooperative with each other is presented as well.
Share‐based payments are of widespread use in today's economy. Consulting firms are increasingly accepting equity compensation for their services (particularly from startups) and many governments ...provide fiscal incentives to support this choice. Likewise, profit‐sharing licensing is an on‐trend business practice by innovative firms and patent holders when transferring their technology to interested adopters. This paper unveils strategic considerations according to which an agent/seller designs its optimal policy in regard to the equity share to request in exchange for its service, technology, or trademark. The model assumes a fringe of interested users/customers differentiated by both the support they need from the seller and the value of the underlying relationship; and also holding an informational disadvantage on their own type. Given the seller's cost configuration, equilibrium outcomes entail entering a profit‐sharing relationship either with the high‐type customers only or with all customers. Yet, in this case, equity‐based payment claims are —for rent extraction purposes— common (i.e., not differentiated) across types.
•An integrated production-inventory model for a single manufacturer-multiple buyers.•Issue of profit division among the partners of a supply chain is discussed.•Four different models of profit ...sharing have been proposed.•Profit sharing based on Shapley function values turns to be fair and supportive.•GA and TLBO meta-heuristics have also been proposed.
This paper undertakes the study of an integrated production-inventory and pricing decision problem for a single manufacturer-multiple buyers supply chain where each buyer faces price-dependent demand. The item manufactured at a finite production rate is shipped to the buyers in multiple equal-sized shipments. Earlier researchers have not studied this problem for maximizing the overall supply chain profit and its allocation among the chain partners. For the allocation of the maximized profit, four different schemes are being proposed, each for a different level of understanding and faith among the partners. Demand, taken as price-sensitive, affects the costs to the manufacturer as the same is dependent upon the sales volume. Since the manufacturer fixes its sales price depending upon the sales volume affected cost, the volume will affect the buyer in terms of its unit purchase cost, and the holding cost which is charged as a percentage of the unit cost. This reality is attempted in this paper in addition to maximization of the chain profit and its allocation among the chain partners for integrated inventory management. Associated problems, formulated as mixed-integer non-linear programming problems, are computationally very hard, and thus evolutionary heuristics as Genetic Algorithm and Teaching-Learning Based Optimization are proposed. The strength of various proposed schemes for profit distributions has been analyzed using numerical experimentation. It is found that a forward contract between manufacturer and buyers will help to generate the maximum profit. It has also been shown that the distribution of profit based on Shapley function values is most fair and logical.
In the last three years, multiple global crises and the growing urgency of containing climate change have put current models of development co-operation to, perhaps, their most radical test in ...decades. The goal of a better world for all seems harder to reach, with new budgetary pressures, demands to provide regional and global public goods, elevated humanitarian needs, and increasingly complex political settings.
•Establishing an energy-aware data center loading model considering three scheduling methods.•Analysing the impact of the coupling relationship among the three scheduling methods.•Proposing a ...coordinated optimization model for the electricity consumption costs of data centers.•An incentive profit-sharing mechanism based on Nash Bargaining theory is designed.•Contribution ratios of each data center in the coordination for cost reduction are considered.
As digital technology continues to advance rapidly, the substantial operational electricity costs associated with the extensive deployment of globally distributed internet data centers have become a significant concern. Addressing this challenging issue is crucial for the future expansion of internet data centers. In this paper, a coordinated strategy is proposed that leverages the spatial–temporal flexibility of internet data centers and their interaction with the power system. Firstly, an energy-aware internet data center loading model is introduced that incorporates multiple coupled scheduling methods to maximize the utilization of internet data centers' flexibility potential. Secondly, the proposed internet data centers loading model is integrated into a coordinated optimization model aimed at achieving higher profits through cost reduction in response to varying electricity prices across multiple regions. To facilitate the coordinated operation of geo-graphically internet data centers, an incentive profit-sharing mechanism based on Nash Bargaining theory is designed to fairly distribute coordination profits based on the contribution ratio of each data center in coordination. Through comprehensive case studies utilizing real-world datasets, the results demonstrate that the internet data center loading model, considering multiple coupled scheduling methods, can enhance internet data centers’ flexibility potential, resulting in a significant 11.73% reduction in total cost, with the coupling relationship accounting for 5.05% of this reduction. Furthermore, the proposed profit-sharing mechanism effectively fosters coordination and enthusiasm among geographically distributed internet data centers.
In this study we explore effects of two distinct tax policies on innovation in a pure knowledge economy: an ‘IP box’ incentive and a (hypothetical) tax incentive on compensation earned by agents from ...profit sharing schemes (PSS). In contrast to the conventional assumption that firms decide on whether to innovate or not, we focus on a bottom-up innovation process (sometimes also called ‘bootleg innovation’), where firms set incentives to fulfill different tasks, but the final decision on whether to make the more innovative task is taken by an employee. We compare the two tax incentives under several distinct specifications demonstrating that the tax incentive on PSS can be a powerful mechanism fostering innovative activity and benefiting at the same time workers, firms and the economy as a whole. This study shows that the more critical for firms is attracting and motivating highly skilled workers, the larger the expected gain from employing the tax incentive on agents' compensation. We also find that the relative efficacy of this tax incentive is moderated by labor mobility and the extent of knowledge spillovers.
•We propose a novel tax incentive directed on profit sharing schemes (PSS).•This is compared to the standard ‘IP box’ incentive in a knowledge economy context.•We show that the PSS incentive benefits workers, firms and the economy as a whole.•Its effectiveness rises with the role of labor relative to capital investments.•Its relative efficacy is also moderated by labor mobility and knowledge spillovers.
