Capital Lease Research Articles

HAK NASABAH PEGADAIAN BILA TERJADI PELELANGAN TERHADAP BARANG JAMINAN

Returns of loan money and capital leases that are not repaid by the specified time limit are carried out through auctions of customer collateral. If by the auction date the pledgor does not carry out his obligations, the collateral will be auctioned by the pledgee. This research aims to find out about the mechanisms and procedures for carrying out auctions for collateral objects. This research is sociological research with a qualitative approach. The data sources used by the author are primary data sources and secondary data sources. The problems that will be discussed in this research are the procedures for carrying out auctions for customer collateral and the obstacles in carrying out auctions. How to protect and overcome obstacles in carrying out auctions for customers' collateral. Auctions of collateral are carried out in 3 stages, namely, auction notification, auction preparation and auction implementation. However, not every auction of collateral can run smoothly, this is due to various obstacles in the implementation of the auction.

The Impact of Capital Lease Implementation on Corporate Financial Statements: Theoretical Analysis and Case Studies

This article explores the concept of capital lease in accounting and its implications for a company's financial statements. A capital lease, also known as a finance lease, is recognized as both an asset and a liability on a company's balance sheet. This research discusses the differences between capital lease and operating lease, as well as their impacts on a company's financials. Through literature review and case study analysis, this article provides insights into the advantages and challenges companies face when implementing capital leases. The findings suggest that while capital leases strengthen balance sheets by recognizing assets and liabilities, they also affect profitability through higher interest and depreciation expenses. Proper understanding and management of these implications can help companies make more informed financing decisions.

Local public corruption and corporate debt concentration: evidence from US firms

Using debt structure data from a large sample of US non-financial companies during the period 2002–2016 combined with the US Department of Justice (DOJ) data on local public corruption, we examine the effect of public corruption on the degree of debt concentration in a firm’s debt structure. The results imply that firms in corrupt areas tend to use several debt types simultaneously, decreasing in that way debt concentration. These findings remain robust to tests that control for endogeneity. In further analysis, we show that these results are stronger for more informationally transparent firms, i.e. investment grade rated and publicly listed firms, that have easier access to capital debt markets. Lastly, in terms of debt choices, we find that firms in corrupt areas issue more commercial paper, senior bonds and capital leases, while they borrow less from banks. The study provides useful policy implications for combating corruption, as informationally opaque firms face increased barriers to debt financing.

Analysis of Financial Strategy and Operation Strategy of Coca-Cola Company Enterprise

Coca-Cola was originally created in 1886 in Atlanta, Georgia, also it has been a part of social development and innovation ever since. Today, Coca-Cola has a unique taste that gives people a great experience every day. Statistics show that Coca-Cola ranks in the top three of the world's 100 most valuable brands, with 1.7 billion people drinking Coca-Cola every day and 19,400 bottles sold every second. Provides consumers with more than 50 beverage choices from more than 15 brands and consumes 150 million Coca-Cola cups a day. All these show that Coca-Cola is undoubtedly a successful enterprise. In addition to its rich historical background, the company has also demonstrated its extraordinary business policies and financial management in the development process. In this research, this paper will focus on introducing its enterprise value, long-term borrowing and capital lease debt, owners' equity, SWOT analysis, and market preference to optimize asset structure. In this paper will have a clearer understanding of why Coca-Cola has become a leader in the soft drink market and is regarded as a specimen and model in the industry.

FOREIGN EXPERIENCE IN USING LEASING AS A METHOD OF INVESTMENT ACTIVITY

In today's global economy, companies face a constant need to access the necessary assets to successfully operate and grow their businesses. However, the acquisition of such assets, be it equipment, vehicles, or real estate, can be financially burdensome for companies. In this situation, leasing, as a financial instrument, becomes an attractive method of investment activity, allowing companies to gain access to the necessary assets without significant capital investments. Foreign experience in using leasing as a method of investment activity demonstrates its widespread use and successful results in various countries and regions. For example, in the United States, leasing is a common financial instrument used by companies of all sizes and sectors of the economy. Many enterprises, especially small and medium ones, use leasing to finance the acquisition of necessary assets. Leasing companies provide financing for the purchase of assets and lease them to clients for a specified period of time, allowing companies to avoid significant capital expenditures and save free cash for other operations and investments. [1] One of the main advantages of leasing is flexibility. Companies can adapt their assets to changing needs and technology requirements without committing to the long-term commitment associated with purchasing assets. They can easily upgrade their equipment or expand their operations by leasing new assets. In addition, leasing allows companies to avoid the risks associated with owning assets, such as obsolescence, decline in value, or loss of demand for specific products. [2] [1] Scott, D. M. (2020). The Social and Intellectual Origins of 13thism. Fire!!!, 5(2), 2–39. https://www.jstor.org/stable/10.5323/48573836 [2] Mackles, G. F., & Blumenreich, R. G. (2000). Capital Recovery and Leasing. The Tax Lawyer, 53(4), 1005–1014. http://www.jstor.org/stable/20772185

FOREIGN EXPERIENCE IN USING LEASING AS A METHOD OF INVESTMENT ACTIVITY

In today's global economy, companies face a constant need to access the necessary assets to successfully operate and grow their businesses. However, the acquisition of such assets, be it equipment, vehicles, or real estate, can be financially burdensome for companies. In this situation, leasing, as a financial instrument, becomes an attractive method of investment activity, allowing companies to gain access to the necessary assets without significant capital investments. Foreign experience in using leasing as a method of investment activity demonstrates its widespread use and successful results in various countries and regions. For example, in the United States, leasing is a common financial instrument used by companies of all sizes and sectors of the economy. Many enterprises, especially small and medium ones, use leasing to finance the acquisition of necessary assets. Leasing companies provide financing for the purchase of assets and lease them to clients for a specified period of time, allowing companies to avoid significant capital expenditures and save free cash for other operations and investments. [1] One of the main advantages of leasing is flexibility. Companies can adapt their assets to changing needs and technology requirements without committing to the long-term commitment associated with purchasing assets. They can easily upgrade their equipment or expand their operations by leasing new assets. In addition, leasing allows companies to avoid the risks associated with owning assets, such as obsolescence, decline in value, or loss of demand for specific products. [2] [1] Scott, D. M. (2020). The Social and Intellectual Origins of 13thism. Fire!!!, 5(2), 2–39. https://www.jstor.org/stable/10.5323/48573836 [2] Mackles, G. F., & Blumenreich, R. G. (2000). Capital Recovery and Leasing. The Tax Lawyer, 53(4), 1005–1014. http://www.jstor.org/stable/20772185

Choosing by Advantages Application Areas in Facilities Management: A Literature Review

Choosing by Advantages (CBA) is a new generation decision-making method utilized mainly in lean construction, sustainable design, methods and materials selections for the last two decades. The value-based approach of CBA considers cost as a constraint and uses the advantages of the decision alternatives for preference, choice, and ranking. This approach can benefit facilities management (FM) processes that are challenged with cost and budget dominance in decision-making. This study conducted a comprehensive literature review about CBA revealing the benefits of and areas for improvement in the method while also investigating the possible application areas of CBA in FM practices. The review covered 67 relevant studies in the CBA topic area over the last two decades and identified the research clusters of these articles, focusing on studies that utilized CBA beyond the scope of Lean Construction. Moreover, the review revealed areas for improvement of CBA, such as the lack of structure in the Importance of Advance (IoA) scale, minimizing bias in stakeholder consensus, and considering weights and/or prioritization in decision factors. In addition to increasing awareness of the CBA method, this study identified areas where CBA has the potential to benefit; building maintenance decision-making, capital project planning, prioritization, procurement, buy vs. lease analysis, lease type and site selection, and resource and personnel allocation in FM practices.

Micro Arrum Product Marketing Strategy Implementation in Attracting the Interest of Luwu Branch Sharia Payment Customers' Interest During Covid-19

This study aims to describe the marketing strategy for arrum micro products in attracting the interest of customers of the Luwu branch of Islamic Pawnshops during the Covid-19 pandemic. This type of research is a descriptive qualitative approach. The research data were obtained from primary data sources using data collection techniques, namely observation, interviews and documentation. Furthermore, this research data was analyzed by data reduction, data presentation and conclusion drawing/data verification. As for testing the validity of the data using triangulation. The results showed that the marketing strategy for arrum micro products implemented by the Luwu branch of sharia pawnshops through 4P was: Product Strategy, by making products according to customer needs, developing rahn products into arrum and providing good service. The Price Strategy, the Luwu branch of Islamic pawnshops provides lower mu'nah or capital leases compared to other financing. Promotion strategy, by becoming sponsorship, through canvassing, distributing brochures, door to door, through the internet such as whatsaap, wa blast, Instagram, Facebook, Bukalapak and other social media. StrategiPlace, the location of the sharia pawnshop is in the center of the crowd close to the Andi Tadda traditional market, in the city center and on the edge of the main road.

Leasing: A Critical Financing Option in the Nigerian Financial Arena

The study examined the effect of lease financing on the performance of quoted consumer goods companies in Nigeria for the period - 2009 to 2018. Specifically, the study assesses the effect of finance or capital lease, leveraged lease and the moderating effect of firm size on lease financing and performance of consumer goods companies. It also employed historical research design in investigating cause and effect relationship among the variables. Using Desk Survey Method, data were collated from Annual Reports and Accounts of the companies. The Ordinary Least Square (OLS) Multiple Regression Technique, as well as descriptive statistics, was employed in the analysis of data. Pre-tests such as Panel Unit Root test and Johansen/Fisher combined co-integration were adopted to check the presence of non-stationary and long-run relationship respectively. Vector Auto Regressive Lag and Panel Vector Error Correction Model were also employed to address the issue of short-run and long-run dynamics. Estimated results showed that finance lease had a significant positive effect on the performance of quoted consumer goods companies in Nigeria. Leveraged lease and firm size exerted a significant negative effect on the performance of quoted consumer goods companies in Nigeria. Based on the results, it was recommended amongst other things that the amount of debt used in the firm capital mix should be proportionate to the size of the firm in terms of its assets and capacity to produce consumer goods. Also, firms should reduce the use of finance or capital lease as a financing option given the overall negative effect of lease financing on the performance of consumer goods companies in Nigeria; and rather adopt the use of operating lease which has an overall significant positive effect, especially in the short run.

PENGARUH PEMBERIAN KREDIT GADAI KCA TERHADAP PENDAPATAN SEWA MODAL DI PT PEGADAIAN CABANG WOLOWONA KABUPATEN ENDE

The problems that occur are what is the level of KCA pawning credit, how is the level of capital lease income and how much influence does KCA pawning credit give to capital lease income at PT Pegadaian, Wolowona branch. This study aims to determine the level of KCA pawning credit at PT Pegadaian, Wolowona branch, the level of capital rental income at PT Pegadaian, Wolowona branch, and the effect of KCA pawning credit on rental income at PT Pegadaian, Wolowona branch. The method in this study uses simple linear regression analysis, t test, and the coefficient of reduction to determine the effect of KCA pawning credit on capital rental income at PT Pegadaian, Wolowona branch, Ende district. The data sources are primary data and secondary data. Data collection techniques in this study were observation, interviews, and documentation. Based on the test results using simple linear analysis, t test, and determinant coefficient, it shows that the provision of mortgage loans has a significant effect on capital rental income at PT Pegadaian, Wolowona branch, Ende district.

Presentation of accounting information on non-current assets using simplified methods

Subject. This article deals with the topical issues of the methodology for accounting for non-current assets using simplified methods due to changes in the accounting legislation of the Russian Federation in terms of the application of Federal Accounting Standards FSBU 6/2020 – Fixed Assets, FSBU 26/2020 – Capital Investments and FSBU 25/2018 – Lease Accounting. Objectives. The article aims to group simplified accounting methods for non-current assets and apply them when presenting accounting information about these assets. Methods. For the study, we used the methods of analysis, systematization, comparison, and grouping. Results. Based on the analysis of changes in accounting legislation on accounting for non-current assets, the article groups the statutory regulation of simplified methods. It offers accounting records for intangible assets, property, plant and equipment, capital investments and lease items, and defines the main simplified ways of accounting for non-current assets that must be approved in the accounting policy. Conclusions and Relevance. Based on the analysis of federal accounting standards, the article concludes that the development and practical application of simplified methods of accounting are relevant for reflecting the accounting events by small businesses and non-profit organizations. The results obtained can be applied both in the theory and practice of accounting in relation to the accounting of items using simplified methods.

The Impact of Operating Lease Capitalization on Financial Statements in Indonesia

PSAK 73 is a new accounting standard that introduces a single accounting model for lessees, namely recording their rental activities as capital leases. This study aims to determine the impact of operating lease capitalization on financial statements. This research is a type of quantitative research using secondary data in the form of annual reports and company financial statements. The object of this research is a company listed on the Indonesia Stock Exchange for the period 2018-2019 which discloses the value of future minimum lease payments on operating leases in the financial statements. Data analysis methods include descriptive statistical testing and Wilcoxon signed-rank test. The results show that operating lease capitalization has a significant effect on unrecorded lease liability, unrecorded lease assets, equity, and financial ratios. Also, empirical evidence shows that there are tax savings from operating lease capitalization

PENGARUH EMISI OBLIGASI TERHADAP PENDAPATAN SEWA MODAL DENGAN PENDEKATAN MODEL DINAMIS AUTOREGRESSIVE PADA PT. PEGADAIAN (PERSER0)

This study aims to determine the effect of Bond Issuance Value on Capital Lease Income at PT. Pegadaian (Persero). The sample used in this research is the financial statements of PT. Pegadaian that issued bonds in 2007, 2009, 2011, 2012, 2013, 2014, 2015, 2017 and 2018. The independent variable of this study is the value of the bond issuance. The dependent variable is capital rental income. The analysis used is an autoregressive dynamic model with the Koyck approach. The results show that the value of bond issuance and capital lease income from the previous year has a significant effect on capital rental income.

The effect of financial analysts on the economic implications of disclosed lease information – a note

PurposeThe purpose of this paper is to investigate whether financial analyst coverage affects the dissemination of disclosed operating lease information into cash flow predictions and stock prices.Design/methodology/approachThe difference in lease expense between capital/finance lease and operating lease reporting is estimated based on the approach in Hsieh and Su (2015). This difference is referred to as the earnings impact from operating lease capitalization and is only available from footnotes. The authors then include the level of financial analyst following in a cash flow model to study its impact on the cash flow predictive value of the earnings impact. Similarly, the level of financial analyst following is inserted in an earnings-return model to assess the effect of analyst coverage on the association between contemporaneous stock returns and earnings impact.FindingsThe authors find that the cash flow predictive value of the earnings impact shifts to the interaction between analyst coverage and the earnings impact, suggesting that the decision-usefulness of the earnings impact is conditioned on the level of analyst following. Nevertheless, the authors find that the earnings impact continues to have explanatory value for the contemporaneous stock returns, while the interaction between analyst coverage and the earnings impact does not. This finding suggests that the earnings impact is already fully reflected in stock prices regardless of analyst following.Research limitations/implicationsSince the estimation of the earnings impact from reporting operating leases as capital leases is based on the method developed by Imhoff et al. (1991), the results and inferences are thus constrained by the validity of the method.Practical implicationsThe authors find that financial analyst activities accelerate the incorporation of the earnings impact from operating lease capitalization in cash flow predictions, but it does not promote the impounding of the earnings impact into stock prices. This finding suggests that financial analysts' influence on the dissemination of the earnings impact hinges on the type of economic activity, and failing to consider the financial analyst following in studying the cash flow predictive value of the earnings impact would obscure the findings.Originality/valueThe authors extend the findings of prior research that financial analysts' activities promote the incorporation of firm-specific information into stock prices by investigating the impact of financial analysts on the dissemination of disclosed operating lease information.

Normativitas Pegadaian Syariah dan Praktiknya di Dunia Muslim

The existence of pawnshops appears to respond to urgent funding needs, especially for weak economies. Compared to banks or other financial institutions, pawnshops have their own advantages that are relatively easy for those who need funds quickly. However, even though it has a social nuance with relatively small capital rent (interest), conventional pawnshops are still considered problematic from the perspective of interest-free Islamic economic law. This problem gave rise to syari'ah pawnshops which eliminated the interest / capital lease system. In order to earn income for the institution as a substitute for interest, pawnshops syari'ah adopt contracts in muamalah fiqh that are formally seen as allowing the collection of fees from customers, for example the wadi'ah contract, ijarah, bai 'muqayadlah, and so on. The practical interpretation of the Shari'ah pawning formula in Muslim countries is quite varied, which is influenced by various factors not only due to the religiousness of the community but also to the economic and cultural conditions of the community.Keywords : Sharia Pawnshop, Capital Lease, and Ujrah.

Efficiency Gains from Accounting Regulatory Compliance

My study examines whether the process of complying with new accounting standards has positive spillover effects on operating efficiency and firm performance. Using the recent lease accounting standard change (ASC-842), I examine whether the requirement to capitalize operating leases increases efficiency through managerial learning. To separate managerial learning from the potential benefits of enhanced disclosures, I exploit the relatively long transition period (2017-2018), wherein managers have access to new lease-related information that has not been disclosed to the market. I find that firms with a high proportion of operating leases experience an increase in profitability during the transition period relative to other firms. Further analysis shows that the increase in profitability is associated with a reduction in rent expenses and cost of goods sold. I document that these firms experience a decline in the level of operating leases during the transition period relative to other firms. I also provide evidence that this decrease in operating leases is not driven by substitution to capital leases or purchase of property, plant, and equipment. In cross-sectional analyses, I find that the results are concentrated in firms that have a poor internal information environment and high business complexity. These results are robust to entropy balancing and to controlling for a host of firm characteristics. Overall, my results support the claim that even though managers view new accounting standards as a burden, the information generated through the compliance process can lead to efficiency gains.

Debt Structure

We review the literature on debt structure, which is a central element in a firm's capital structure. We first survey both theoretical and empirical research pertaining to debt characteristics—maturity and priority—and debt types—bank loans, corporate bonds, credit lines, commercial paper, and capital leases. We then present comprehensive empirical evidence on public US firms’ debt structure over the period 2002–2018, highlighting that more than three-quarters of US firms concentrate their borrowing in one debt type, and offer some suggestive explanations for the observed pattern. Finally, we discuss directions for future research, including a better understanding of debt structure choices by non-US firms and by private firms, the cross-sectional and temporal variations in debt structure, the corporate policy implications of firms’ debt structure choices, and the interaction between types of assets and debt structure.

Capital Market Frictions, Leasing and Hedging

This paper examines the hitherto unexplored effect of lease intensity on hedging. Using a sample of 218 small and large non-financial firms drawn from 2006 to 2010, we find that firms leasing more of their Property, Plant and Equipment (PPE) use less financial derivatives, consistent with the theoretical predictions of Rampini and Viswanathan (2010). Further, using broad market microstructure based measures of information asymmetry, we offer empirical evidence consistent with theory that firms with higher information asymmetry hedge more. These results are robust to several alternative measurements of key variables, different regression specifications, estimation techniques and corrections for endogeneity.

Bayesian decision making in determining optimal leased term and preventive maintenance scheme for leased facilities

<p style='text-indent:20px;'>Under a business competitive environment, quite a few enterprises choose capital leasing to reduce tax payment and investment risk instead of buying facilities. Since the durability and service life of leased facilities will be longer, the breakdowns and deterioration of leased facilities are inevitable during lease period. Accordingly, in order to reduce the related costs and keep the facility's health during lease period, preventive maintenances are required to perform to reduce the cost of free-repair warranty and maintain customers' satisfaction. However, performing preventive maintenance is not easy to scheme due to the scarcity of historical failure data. Accordingly, the study integrates lease and maintenance decisions into a synthetic strategy, and it can be applied under the situation of only expert's evaluation and/or scare historical failure data by employing Bayesian analyses. In this study, the mathematical models and corresponding algorithms are developed to determine the best preventive maintenance scheme and the optimal term of contract for leased facilities to maximize the expected profit. Moreover, the computerized architecture is also proposed, and it can help the lessor to solve the issue in practice. Finally, numerical examples and the sensitive analyses are provided to illustrate the managerial strategies under different leased period and the preventive maintenance policies.</p>

Analisis Proyeksi Laporan Keuangan Perusahaan Penerbangan Saat Transisi PSAK 30 Menjadi PSAK 73

The aim of this research is to anticipate the emergence of a new regulation in accounting studies. Especially the emergence of PSAK 73 that will succeed PSAK 30 in terms of Leasing. This research gives the projection if a new regulation is in effect. PSAK 73 changes the form of double accounting system into a single one, meaning that lease is not being classified and calculated with two methods like capital lease and operating lease. It’s using capital lease calculation with it being classified as right of use asset. Asset is being recognized and depreciation expense follows after with interest. The result of this research shows that, the trantition of PSAK 30 to PSAK 73 affects entity’s income statement. Entity’s expenses increase because of the additional interest and depreciation expense. Assets also increase resulting in management asset ratio and profitability ratio to fall.
 
 Keywords: PSAK 30, PSAK 73, Transition, Asset of Use