Priced out of ownership: Quota leasing impacts on the financial performance of owner-operators

The hidden role of processors in an individual transferable quota fishery

“…Processors are able to readily fill a brokerage role in the quota leasing system in large part because of their access to capital. For fishing enterprises that do not own appreciable amounts of halibut quota, which is now the majority of the vessels that are fishing, it is often a financial struggle to operate (Edwards and Pinkerton 2019b). About 70% of fishing enterprises in 2016 fished at least 20,000 lb (9072 kg) of halibut quota.…”

“…Adjustments to the after-lease price are bounded to some extent. Even though fishing enterprises are highly competitive for access to quota to fish, few fishing enterprises, when given the choice, will fish if short-term costs, such as bait, fuel, and monitoring costs, are not being covered (Edwards and Pinkerton 2019b). Not all fishing enterprises have the choice, however, as fishing enterprises may fish at a loss if the enterprise risks losing future access to quota if they do not fish (Parliament of Canada 2019).…”

“…halibut quota lease market. At the very least, there is a strong rationale for government to undertake research and investigations into the state of the quota market and address the asymmetric information and capital availability issues that are leading to uninformed decision-making and price distortions that challenge the viability, stability, and independence of the fleet (Edwards and Pinkerton 2019b). Stabilizing the quota market, instituting rules and procedures to create transparency, including new reporting requirements for tracking ownership and leasing, and preventing price distortions are further actions that may be expected of government that is seeking to prevent or correct market failure.…”

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“…One of the successes of a company is financial stability where the company is able to generate profits, increase capital value and pay shortterm and long-term obligations (Myšková & Hájek, 2017). Activities related to financial performance include environment activity (Danso et al,2019, Liu, 2020, Petitjean, 2019, Tzouvanas et al, 2019, Wang & Yang, 2020, stakeholder policies in companies (Baah, Jin, & Tang, 2020), energy efficiency (Moon & Min, 2020), corporate governance ( Al-ahdal et al, 2020), networks rich in diverse business ties (Etriya, 2019), corporate social responsibility (CSR) (Franco et al, 2019;Petitjean, 2019), non-financial performance measures (Gan, Park, & Suh, 2020), efficient sustainable financial practice activities (Jan et al, 2019), digital business strategies (Ukko et al, 2019), company characteristics, age of management, team size, international experience, government background, education level, (Ma et al, 2019), innovation (Rezende et al, 2019), supply chain dynamics (Yu et al, 2019), individual transferable quotas (ITQs) in the fisheries economy (Edwards & Pinkerton, 2020), quality management (Franco et al, 2019), epidemic diseases (Kim et al, 2020), gender (Valls Martínez & Cruz Rambaud, 2019), heterogeneity of knowledge of top management, ownership structure (Cui et al, 2019), stakeholder integration (Danso et al, 2019), good corporate governance (GCG) (Iqba et al, 2019), company size (Lin et al, 2019), dan intellectual capital (Sardo et al, 2018). Of all these activities, activities that are still interesting to study and relate to financial performance are environmental activity.…”

The distributional outcomes of rights-based management in fisheries

“…Unfortunately, quantitative assessments of the impacts of ITQs or other catch-share systems across multiple stakeholder groups are surprisingly scarce due to the sparse and selective availability of cost, earnings, and employment data in most fisheries. Quantitative assessments often focus on only one stakeholder group such as crew ( 15 , 21 ) or vessel owners ( 17 , 22 ) to the exclusion of others, or, when performed in the context of more comprehensive assessments of individual catch-shares programs, capture distributional effects at a high level and with a limited set of quantitative metrics ( 23 – 25 ). The overwhelming lack of data prior to the implementation of ITQs requires inferences to be drawn on the basis of a budgetary snapshot for a representative operation ( 17 , 22 , 26 ), missing important longitudinal variation over time as well as heterogeneity across operations ( 15 , 21 ).…”