Alternative Sources Of Funding Research Articles

A Study Of Muslims In Klang Valley On The Cash Waqf For Public Health Expenditure

Cash waqf is another form waqf made with cash collected in a trust fund and can be utilized as an alternative source of funding for society and ummah. The public knowledge and understanding of waqf are limited to the concept of waqf land for building mosques and cemeteries only. It is crucial to educate and enhance the public knowledge of cash waqf to motivate their willingness to contribute to the cash waqf fund. Based on the Cash Waqf Certificates Collection by Yayasan Wakaf Malaysia, total cash waqf collection for health purposes is the lowest compared to education and economic development. Therefore, it is essential to further explore the public view in cash waqf for health purposes. There are very few studies on the awareness of cash waqf specifically as an alternative financing source for public health expenditure. Thus, this study aims to fill the gap. It is found that many of the respondents are aware of cash waqf and have been donated through the cash waqf fund. Besides, most of them agreed if cash waqf is used to fund public health expenditure in Malaysia. In conclusion, public no longer perceive waqf as limited to traditional purposes such as land and fixed properties.

The economic consequences of IFRS 16 adoption: the role of gearing restriction in debt covenants

PurposeThis study aims to examine the economic consequences of, and managerial behaviour in response to, the introduction of IFRS 16 Leases. It extends the debt covenant hypothesis to explain why firms reduce the use of operating leases with the introduction.Design/methodology/approachThis study develops a model, based on operating leases as an alternative financing source and the determinants of debt policy, to estimate the effects of gearing on operating lease intensity. High gearing is a proxy to probably closer to the violation of, or expected to violate, the gearing restriction in debt covenants given the retrospective capitalisation of operating leases, when IFRS 16 takes effect.FindingsThis study finds that operating lease intensity fell between 2011 (immediately after the first exposure draft leading to IFRS 16) and 2018 (immediately prior to the effective date of IFRS 16). It also finds that gearing affects changes in operating lease intensity over 2011 and 2018, consistent with the debt covenant hypothesis.Research limitations/implicationsThe introduction of IFRS 16 is a natural experiment with unique characteristics (the active lobbying behaviour, ex ante evidence on adverse economic consequences, a prolonged standard-setting period, etc.) valuable for accounting research.Practical implicationsA showcase about the relevance of financial reporting for contracting interests of firms and managers and a good reference for accounting standard setters in considering and managing the economic consequences of proposed accounting standards.Originality/valueThis study adds to the limited research on the consequences of accounting standards and documents the ex-post impact on firm leverage ratios and the behavioural aspects of reporting entities.

Supporting Innovation in Energy Sector: The SMEs Role and DIGIFED Success Cases

This paper aims to discuss the peculiarities of innovation approaches in the energy sector and examines success stories on how alternative sources of funding (such as cascade funding deriving from EU-financed projects) can effectively promote the role of SMEs in this environment. As digitalisation and smartification of the energy sector are key goals of the European Commission (EC), relevant legislative packages like the European Green Deal and other initiatives are actively promoting these priorities as enablers of the green transition. However, while large energy companies can afford to make substantial innovation investments, the SMEs innovation scenario is often characterised by a selected portfolio of start-ups and SMEs that get funded by large players only when functional to their business, leaving a significant portion of innovative SMEs out of this investment trend. In this context, the EU-funded DigiFed project’s approach, supporting Application Experiments (AEs) for innovative products development, seems relevant to showcase alternative ways to support innovation in the energy sector. Indeed, in 2 years of implementation, DigiFed has structured and launched 3 Open Calls for AEs (cascade funding), succeeding in funding 71 companies and 46 AEs in several sectors, for an overall investment budget of € 3.6 M. The present paper focuses on two successful cases of TWIN AEs related to the energy sector, i.e., DYNAGRID and REDUXI. DYNAGRID aims at demonstrating an affordable, wireless and battery-free solution to digitise the New Caledonian electric grid, reducing maintenance and increasing grid capacity, representing a peculiar case of successful implementation with a long-distance collaboration. On the other hand, REDUXI is focused on developing a smart, plug & play building management system box, capable of forecasting energy consumption and its further redistribution, with high chances to quickly reach the market. Eventually, based on these success cases, the paper discusses the support provided by DigiFed and its benefits with respect to other forms of innovation financing.

Collaboration and Sharing Resources and Services among Institute Libraries of the National Universities in Sri Lanka: with recommendations for improvement

The need for resource sharing among libraries has become even more important today with constraints of finance, space, and manpower. Specific objectives of this study were to develop a database / directory on the resources available in the institute libraries, to find out the strengths and weaknesses of the institute libraries and librarians in the University sector and to help each other to overcome the weaknesses. Study used a multi-strategy approach called ‘triangulation’ to collect data and study instruments was literature review, questionnaires and interviews used to analyzed the documents generated by the organizations. This study delineates the ways of collaboration and web-based library cooperation with the conclusion that the automation of libraries and effective formation of country consortium can only promote the effective library cooperation for access to worldwide information and global resource sharing. Current study also recommends that government or UGC should take up development project to provide appropriate Digital Library databases and provide ICT raining at global standard. Further, the study recommends that the libraries should seek for workable partnership efforts, so that the benefits derivable will help them optimize information services delivery, partnership among libraries and related institutions, should be strengthened by the leaders of the organizations through understanding, partnering parties should struggle and cope with changes through professional development so that they can adapt to their new roles, partnering libraries should examine the partnership mission in the light of individual and institutional values before venturing into it, libraries should develop alternative sources of funding than depending solely on their parent institutions.

Cascade Funding as an Alternative Funding Source for Innovative Investments

Although promoting an innovation ecosystem is a core priority of the European Commission (EC), evidence indicates that innovation within start-ups and Small and medium-sized enterprises (SMEs) is still constrained by the lack of funding opportunities. Consequently, their capability to realise proofs of concepts or launch new risky business lines is limited. This paper aims to comparatively assess cascade funding initiatives against more traditional funding approaches as relevant alternatives for financing innovation. SMEs and start-ups most commonly fund innovative projects through business angels or venture capital. The disadvantages of risk capital include complex administrative procedures, loss of ownership and control over the strategic decision, etc. Other relevant funding is commonly sourced from private bank loans. In addition to discouraging bureaucracy, prior guarantee or collateral required, longer timing and extended terms, these investors are often reluctant to fund innovation due to their high risk. Preference is usually given to safer investments in which assets can be easily valued and sold in case of failure. In addition, financing opportunities from banks do not include an assessment of the return opportunities of innovative businesses. Out of the traditional schemes for financing innovation, cascade funding is a promising alternative, especially in highly innovative sectors. Cascade funding provides small grants issued by the beneficiaries of projects funded by the EC, typically under the Horizon 2020 (H2020) framework (>800 M€ allocated since 2014). As the EC delegates the selection and monitoring of innovative projects to consortiums, the funding is provided via open calls for proposals, which can provide start-ups and SMEs with grants for an experiment between €50,000 and €150,000. This mechanism also enables applicants to benefit from the technical and/or business expertise of leading European enterprises, universities and technology centres. While focusing on exploitable innovation, cascade funding has also proven to be a more agile financing method with respect to the classical ones. Here, DigiFed project is analysed as a Case Study for cascade funding, as it came to allocate over €3M via three open calls for proposals since 2020. Evidence of the advantages of this funding source for innovative businesses with respect to risk capital and bank debt is the core output of this paper.

Удосконалення нормативно-правового забезпечення державно-приватного партнерства у сфері автомобільного транспорту України

Problem setting. Economic development is very important in the processes of positive transformations of the country, a large part of ensuring economic growth is transport infrastructure, one of the main types of which is road transport. Recently, the Ukrainian economy has been weakened by the global crisis, the Covid-19 pandemic, and the worst thing that has happened so far is the extremely difficult martial law and the Russian invasion with a full-scale war against Ukraine. The time of recovery in the post- war period will raise the issue of infrastructure development, especially in the field of transport and renovation of all modes of transport and their ergonomic combination, finding new, alternative sources of funding for the transport system. The main criteria for the proper development and functioning of this area are proper regulatory support. Recent research and publications analysis. Research and development of legislation in the field of public-private partnership, investment activities and legislation in the field of concession legislation in Ukraine not enough attention is focused, because by domestic and foreign researchers, certain topics were not a priority in professional journals. However, such scientists as V. Bodelan, V. Varnavsky, V. Goshovska, E. Romanenko, I. Lopushins- ky, L. Hrytsenko, S. Linder, O. Nikiforuk, S. Ovcharenko, N. Drahomyretska, N. Piro- zhenko, O. Pukhkal, V. Skurativsky, P. Shylepnytsky and others, study public-private partnership in political, economic, legal aspects. The analysis of the current state of investment activity is covered in the works of such scientists as: A. Kolevatova, V. Kozyk, Danilova, I. Zapatrina, I. Moiseenko and others. Highlighting previously unsettled parts of the general problem. The importance of analysis of scientific sources in the field of regulatory and legal support, as well as substantiation of legal aspects and effective mechanism for improving public-private partnership and investment activities in road transport in Ukraine, as well as the importance of legal mechanisms in the real state economy especially during crisis phenomena, an important unresolved problem should be noted that as of today remains imperfect direction of formation and development of regulatory and legal support and application of the mechanism of public-private partnership and attracting investment activities in the field of road transport and its infrastructure. There is a need for scientific substantiation of ways to develop the legal mechanism of public-private partnership, concession legislation in specific areas of infrastructure, in particular in the field of road transport. Paper main body. The normative-legal provision of public-private partnership, concession legislation and legislation on investment activity is considered. The need to improve legislation in the field of public-private partnership, their relevance and effectiveness are analyzed. Transparency and risks in the field of application of legislative acts on public-private partnership, concessions and investment activities in the field of road transport and its infrastructure in Ukraine are analyzed. It is determined that the legislation in the field of public-private partnership, concession and investment activities contains significant issues that need to be improved by amending these regulations. Such an imbalance is particularly clear in the field of road transport, where regulations need to be adjusted in accordance with concession and investment legislation. The main criteria for improving the regulatory framework in these areas are to bring into line with the electronic trading system regulations on the subject, which will give a significant impetus to improve legislation to involve public-private partnerships in road transport in Ukraine. Conclusions of the research and prospects for further studies. Road transport and its infrastructure directly affect the development of all sectors of the economy of Ukraine, the state of road transport in terms of rolling stock to provide quality new social services requires new approaches to improve in improving its effective development. It has been found that the forms of public-private partnership are the best and, accordingly, increase the efficiency and quality of road transport, including its infrastructure. Analyzed that the main criterion for improving the legislation in the field of road transport, concession legislation and legislation on investment activities is to amend existing regulations in terms of bringing them into line with the electronic trading system. Such a mechanism will introduce transparent and competitive dynamics for the high-quality and rapid development of Ukraine’s transport infrastructure and road transport.

Diplomacy and The Birth of Islamic Finance As An Alternative Financing Source for The Global South

Diplomacy and The Birth of Islamic Finance As An Alternative Financing Source for The Global South

Antecedents of intentions to crowdfund luxury brands and projects: Evidence from French consumers

AbstractLuxury firms, including high‐end watch manufacturers, use crowdfunding as an alternative source of entrepreneurial finance. Respondents indicated that intention to crowdfund luxury brand start‐ups have both external and internal antecedents with the slight majority focusing on the extrinsic factors. The “luxury” proposition exhibits integrated motivation, which is conceptualized and personalized to the tastes of each investor.

The Influence of Alternative Development Finance on the World Bank’s Safeguards Regime

Abstract What shapes social-environmental regulations in the World Bank? To date, scholars have emphasized the influence of nongovernmental organization activism, donor power, and various elements of the Bank’s internal culture and incentive system. This article documents a new and important source of influence: outside financing options for borrower countries. I demonstrate this influence through an in-depth study of the World Bank’s Safeguards Review and Update, a four-year policy-making process that concluded in 2016. As alternative sources of finance carrying less stringent safeguard requirements than those of the World Bank proliferated in years preceding the Safeguards Review, borrowers gained negotiating power over Bank policy, enabling them to successfully push for more regulatory autonomy. These findings suggest that understanding the future of social-environmental standards in development finance institutions will require greater attention to new sources of finance and the power shifts they may entail.

Development of crowding-in as an alternative form of small and mediumsized businesses financing: foreign experience and Russian practice

The article presents a comprehensive analysis of legal and economic measures aimed at state support for small and medium-sized businesses in order for them to obtain an alternative source of financing using crowdinvesting platforms, and a consimilar foreign experience research. Based on statistical data, conclusions on the crowdinvesting platforms sector’s development and its interaction with small and medium-sized businesses are presented. Within the frameworks of the article, the emphasis is placed on a detailed study of foreign experience in the providing an alternative funding source. The advantages and disadvantages of this method in the Russian context have been shown. The study involved an analysis and synthesis of domestic and foreign anti-crisis measures.

Introduction of loan-based crowdfunding as an alternative source of funds for MSMEs for the Kediri Raya Culinary Group

MSMEs have characteristics that can help them survive in times of crisis. This happens because the smaller size of the organization makes it possible to do something flexible when a threat or opportunityis present. The problem experienced by MSMEs of the Kediri Raya Culinary Group is that it has difficulty to get business capital credit from banking for business capital. The long barrage of regulatory and administrative processes of banking became a trigger for difficulties. This activity aims to provide solutions to MSMEs as an alternative source of business capital funds. The method used is a survey method with the form of interview activities about MSME knowledge about loan-based crowdfunding financing; community development; focus discussion group; and mentoring. This activity can increase the knowledge / insights of MSME actors about loan-based crowdfunding financing as an alternative source of funds. This activity also provides convenience in obtaining business capital and can minimize losses and risks in obtaining loan funds. The development of this activity can maintain and develop the business of MSMEs of the Kediri Raya Culinary Group.

Does the stock liquidity drive the trade credit of publicly listed firms in Saudi Arabia?

PurposeThis study aims to examine the influence of stock liquidity on the trade credit of publicly listed companies in Saudi Arabia.Design/methodology/approachIn this study various econometric models were used to test the data of 900 firms listed in Saudi Arabia during the period of 2010–2019.FindingsThe robust results of the various econometric models indicate that firms are more willing to offer trade credit to customers when stock liquidity is greater; however, they are less likely to rely on obtaining more payables from suppliers. The findings further indicate that payables and receivables are indeed related, but not exclusively, in the sense that more payables lead to more receivables. The study also reveals a pattern of persistence in payables and receivables during the period of study.Research limitations/implicationsThe sample of the present study is only made up of Saudi listed companies. Future research could extend the sample of this study taking into account listed firms in the Middle East and North Africa (MENA) region as a whole so as to gain more insights from the entire region including oil-producing and non–oil-producing countries. More studies are needed to further examine the impact of alternative options for credit access and their linkage to stock liquidity. Finally the difference in difference (DiD) method of analysis as quasi experimental method can be another extension of this research.Practical implicationsThe findings would provide implications for managers and investors by recognizing the potential role of stock liquidity in affecting trade credit and understanding the association between the stock liquidity and trade credit. Management of the firms should look for the ways to enhance the stock liquidity of the firms so as to help in reducing the extreme debts usage and therefore, alternative source of funds can be available accordingly. Once the advantage of stock market is identified, firms' managers should search for chances and policies that can promote stock liquidity and hence make use of the advantages of being liquid.Originality/valueThis paper provides new evidence from the emerging market, particularly the Saudi Arabia. The attempt is one of the first in the region to broaden the knowledge about the effects of stock liquidity on trade credit. It provides market participants with insights on the role of stock liquidity in financial flexibility.

The Real Effects of Implicit Government Guarantee: Evidence from Chinese State-Owned Enterprise Defaults

We study the effects of implicit government guarantee (IGG) on Chinese state-owned enterprises (SOEs). We find that SOEs reduce their investments by 2.4% of book assets, on average, relative to matched non-SOEs after the first SOE default in China’s onshore bond markets in 2015. The investment reduction concentrates among SOEs that are financially constrained, yet SOEs financed by large state banks are hardly affected. Bondholders require more stringent default protection in newly issued SOE bonds. We also find that the investment reduction is more pronounced for SOEs with severe agency problems and that SOEs experienced more positive market reactions to acquisition announcements after 2015. Our results suggest that the reduction in IGG has confounding effects on Chinese firms. Although the weakening of IGG may help mitigate overinvestment, it exacerbates financial constraints of those with limited access to alternative sources of financing. This paper was accepted by Lucas Schmid, finance. Funding: Z. Zhang acknowledges the funding support by Research Grants Council of Hong Kong [Project 11503318]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4483 .

Firm level determinants of capital structure in Algeria

This study analyzes the capital structure determinants in a sample of 207 non-financial Algerian enterprises (2013-2017).The Tobit-panel random effects model gives the following results: the firm-level determinants at the 1% level are : the profitability, the tangibility, the debt-tax shield DTS and the non-debt tax shield NDTS . A profitable company can easily take on debt at a low interest rate. The tangible assets are used as a collateral. The Algerian enterprises take on debt in order to benefit from the debt-tax deductibility. The positive impact of the DTS variable confirms the positive impact of the profitability variable. The debt-tax deductibility is useful when a company is profitable. The NDTS is an alternative funding source for the enterprises. For the state-owned subsample, the debt ratio decreases when the firm size increases. The small state-owned enterprises have a low self-financing. These enterprises are financed by the debt. For the services field subsample, the liquidity is used as a collateral.

Rotating Savings and Credit Associations, An Alternative Source of SME Financing: The Case of the Inhabitants of the Western Region of Cameroon

The relevance of SMEs to the economy is a globally accepted truth. These small actors generally constitute the largest category of businesses and contribute significantly to vital economic indicators. Despite their relevance, this category of businesses experiences considerable challenges obtaining financing: especially formal financing. This limited access to capital has been reported to constitute a major cause of high SME failure rates. This is mainly because these businesses lack the collateral necessary to access formal financing. Despite the above literature, it is reported that inhabitants of the Western Region of Cameroon, also referred to as the Bamelikes make extensive use of Rotating Savings and Credit Associations (ROSCA) for business financing and that this is partly responsible for their increased success in entrepreneurial activities. However, empirical studies establishing the impact of the usage of ROSCAs on SME access to capital in this region are almost inexistent. Given the above, it is the aim of this study to investigate and empirically establish whether the usage of ROSCAs significantly impacts SME access to capital in the Western Region of Cameroon. Using stratified random sampling, 500 participants from the major settlements of the Western Region of Cameroon were selected for this study. The questionnaire for the study was administered to these participants. 414 questionnaires were returned and after consistency verification, data from 401 respondents were retained for this study. The data was analyzed using the One-Way ANOVA analytical tool in the IBM SPSS software (version 21). The finding disclosed that ROSCAs usage has a statistically significant impact on SME’s access to capital in the Western Region of Cameroon. It is therefore recommended that SME owners/managers join such associations or come together to create such associations to improve their access to capital. In addition to that, since these organizations are widely spread across Africa and developing economies, they could be repurposed for business financing reasons instead of consumption.

It takes more than two to tango: Multiple bank lending, asset commonality and risk

Multiple-bank lending is the most prevalent form of bank-firm credit relationships in nearly all countries. It results in high asset commonality and interconnectedness, allows idiosyncratic risks to become systemic, and makes the banking system more fragile and vulnerable to shocks. Using detailed, granular-level, supervisory data on large corporate loans, we show that multiple bank lending is driven, inter alia, by regulatory limits on large credit exposures. These limits, aimed at mitigating an individual bank's concentration risk, force firms to explore alternative sources of funding, making the common borrowers' phenomenon more prominent. We find that multiple bank lending is determined endogenously, and its likelihood increases with the level of portfolio similarity between lenders. The size of the original lender and its systemic importance magnifies this effect. We argue that banks do not internalize the systemic effect of their lending decisions and that multiple bank lending constitutes an insurance mechanism related to an implicit "too-many-to-fail" guarantee. Its externalities are suboptimal and should be reinforced with better monitoring by the related authorities.

60. Training a Plastic Surgeon: The Cost of Residency and its Implications

Purpose: Developing and maintaining a surgical residency program entails significant financial obligations. The costs associated with plastic surgery residency training and accreditation by regulatory bodies are yet to be delineated. This study seeks to explore the costs associated with plastic surgery residency training as mandated by the American Council of Graduate Medical Education (ACGME) and the American Board of Plastic Surgery (ABPS). We aim to elucidate potential areas for improvement and innovation of funding resources to ensure the continuation and growth of proper plastic surgery training. Methods: Cost-associated mandates per the 2020 ACGME and ABPS booklet were identified. These costs were separated into labor, opportunity, and fixed costs. Calculations reflected the minimum cost of training two plastic surgery residents, which is an estimate of the average number of residents per year per program from 2017-2021, according to the National Residency Match Program Data. Salaries were based on data from the Association of American Medical Colleges. Relevant costs reflected data from our department and institution. Results: Our calculations demonstrated a minimum cost of $472,519 to train two residents per year in accordance with the ACGME and ABPS mandates, with an average cost of $236,260 per resident. This includes labor, opportunity, and fixed costs. Labor costs totaled $279,560 with resident salary being the highest contributor ($128,000). Opportunity costs were the highest cost category at $176,529, of which the cost of grand rounds ($120,238) was the highest contributor. Fixed costs were the lowest ($16,430) with the highest contributor being ABPS-required costs for board certification ($8,490). In order to reflect the financial spectrum between large and small programs, we adapted our calculations to estimate costs of one ($367,427) and five ($763,687) residents per year. Conclusion: Training future plastic surgeons is associated with significant direct and indirect financial costs. Plastic surgery represents an essential field in healthcare, and we hope that by providing cost estimates for resident education, the medical community may continue to think creatively about alternative funding sources to ensure continued quality training that meets the nation’s needs.

Inklusi Keuangan pada Industri Kreatif Berskala Mikro Kecil dalam Pengembangan Wilayah Masyarakat Pedesaan di Kota Binjai Provinsi Sumatera Utara

Limited access to finance is a major obstacle in the development of an area, especially rural communities. This study aims to analyze financial inclusion in the Micro Small-Scale Creative Industry towards the development of rural communities in Binjai City. This research uses a qualitative research approach with a case study method. Furthermore, a series of observations and interviews were conducted on the informants through a purposive sampling technique which was further developed through the snowball sampling technique. The results of the study inform that financial inclusion in micro-small-scale creative industries that are managed that are less educated, small-scale, have limited assets and are located in rural areas tend to have limited financing information as well as major obstacles so that the development of rural communities does not increase. The diversity of regional characteristics such as internet access and the use of financial inclusion in the creative industry, especially in obtaining banking information, alternative sources of financing that are more diverse can encourage improvements in the development of rural community areas in Binjai City. This study recommends the importance of education through training and mentoring as well as the use of the internet for Micro Small Scale Creative Industry entrepreneurs in rural Binjai City.

The evolution of bidder gains and acquisition discounts in M&A

While the gains to acquirers in public mergers and aquisitions (M&A) tend to be small or non-existent, acquirers of unlisted targets have been a notable, robust exception. Prior studies often point to an illiquidity discount as the reason why these non-public targets are good deals for acquirers. This paper examines acquirer wealth gains and bid premia in M&A involving unlisted/listed firms over the past three decades. Our findings show that, while target listing status was a significant determinant of acquirer wealth gains and bid premium in early years, it no longer has significant shareholder wealth implications for either acquirers or targets in M&A. These results are consistent with recent studies that suggest a changing landscape in the public funding markets and an increased availability of alternative funding sources for unlisted firms.

Financial Restatements and the Demand for Trade Credit

This article is the first to study the relation between financial restatements and restatement firms’ demand for trade credit as a source of financing. Using a sample of U.S.-listed firms for the 2000–2016 period, we find that restatement firms tend to use more trade credit in the year following the restatement disclosure year than do non-restatement firms. Moreover, we find evidence that restatement firms use trade credit to substitute for the reduced reliance on short- and long-term loans. Our further analysis reveals that restatement firms can obtain more trade credit when the firms promptly change the CEOs as a signal for firms’ attempt to repair damaged organizational legitimacy. Taken together, our findings suggest that restatement firms experiencing difficulties in obtaining conventional borrowings tend to resort to trade credit as an alternative source of financing.