Financial Companies Research Articles

Institutional ownership drives a new strategy for green total factor productivity development of Chinese listed companies: Effects, mechanisms, and implications

The low-carbon transformation of China's economy is urgent, and the innovation of core technologies related to it cannot be without financial support. Given the limited availability of green funding, it is imperative to seek the help of social funding more widely. Among them, the impact of institutional ownership (IO) on the green total factor productivity (GTFP) at micro level cannot be ignored. This study employs a panel fixed-effects model to examine the influence of IO on the GTFP of 4582 Chinese A-share listed companies and explore potential pathways. The research findings indicate that: (1) IO can improve the GTFP of investee companies. (2) this impact may occur through the influence of IO on the invested company's financing constraints, R&D expenditures, green innovation, environmental performance, ultimately driving its GTFP. (3) different types of institutional investors exhibit varying performance in promoting the GTFP of the invested company. Particularly, pressure-sensitive institutional investors with strong business relevance to the invested companies demonstrate impressive results. (4) IO exhibits a more significant promoting effect on the GTFP of listed companies in specific samples. This study provides a new strategy for promoting green economic growth in China, and summarizes some targeted policy implications.

Adoption of Ifrs in Indian Accounting Standard and Its Effect on Financial Statement Analysis of Indian Companies

Objective: The objective of the study is to examine the effect of Ind AS implementation on the financial statements of select companies with the aim of comparing the two accounting standards with the available data of 13 companies. Method: The methodology adopted for this research comprises secondary data extracted from prowess database of 13 non- financial companies selected from top BSE 30 (companies those have prepared financial reports as per both IGAAP and Ind AS during transition period) and used for the comparison with the help of selective financial ratios. The sampling adopted is purposive sampling method for the selection of the companies. Results and Discussion: The results obtained revealed that there are changes and effect of implementation on profitability and liquidity on implication of Ind AS in companies but solvency remains same as in IGAAP. In the discussion section, these results are contextualized in light of the theoretical framework, highlighting the implications and relationships identified. Possible discrepancies and limitations of the study are also considered in this section. Research Implications: Financial reporting is crucial work that helps a firm to track their financial status in the market. For that, high quality uniform standards are required to compete with the global level market. Indian Accounting standards which is converged accounting standards from IFRS is introduced and implemented in India. The results and the method used to compare the effect of new and old accounting standards will make understand about the changes occur during the transition period and reason for changes in various components in the financial reporting of company. Originality/Value: This study is carried out on the basis of comparison of two accounting standards using various accounting ratios and those ratios were used in the Gray Comparability Index formula to know the conservatism for particular component from the statement of profit and loss and balance sheet of the company. This method allows the expertise and auditors to understand the root for the changes better, that occurred due to transition period in India.

Analysis of private funding and its accountability by financial companies - ICICI retail branch

This study analyses the role of private funding and its accountability within the retail banking branch of ICICI Bank. The research investigates the creditworthiness assessment of loan applicants, the accountability of funding provided, and the challenges faced by relationship managers in the Business Lending Group

Peran Environmental Performance dan Green Accounting Sebagai Moderasi Pengaruh Profitabilitas dan Dewan Komisaris Terhadap CSR Utk Mensupport CoP

Each country included in the CoP gathers to conduct a review related to the United Nations Framework Convention on Climate Change, or UNFCCC, which is a major UN treaty. The major UN treaty states that countries need to come together to find out how to stop global warming. The COP has the main task of reviewing each country's targets related to proposed emissions. The implementation of the COP will rotate between five UN regions, namely Africa, Asia, Latin America and the Caribbean, Central and Eastern Europe and Western Europe and others. In its 26th event, the COP has four focus issues of discussion including the importance of switching to electric vehicles, ending deforestation with financial assistance, drafting rules for the global carbon market, and mobilizing funds for developing countries. This study aims to analyze the effect of profitability on CSR Disclosure, the influence of the board of commissioners on CSR disclosure, the role of Environmental performance as a moderation of the influence of profitability on CSR Disclosure, the role of Green Accounting as a moderation of the influence of profitability on CSR Disclosure, the role of Environmental performance as a moderation of the influence of the board of commissioners on CSR Disclosure and the role of Green Accounting as a moderation of the influence of the board of commissioners on CSR Disclosure. This study took the research population from financial sector companies listed on the Indonesia Stock Exchange for the period 2019-2022. Based on the results of this study, it shows that Profitability has a significant effect on CSR Disclosure, the Board of Commissioners does not affect CSR Disclosure, Environmental Performance strengthens the effect of Profitability on CSR Disclosure, Green Accounting does not strengthen the effect of Profitability on CSR Disclosure. Environmental Performance does not strengthen the effect of the Board of Commissioners on CSR Disclosure. Green Accounting does not strengthen the effect of the Board of Commissioners on CSR Disclosure

Eviews Analysis: Investigating the Relationship Tunneling Incentive, Leverage Ratio, and Hedging in Indonesian Stock Exchange-Listed Firms

Manufacturing companies carry out many operational activities, so the more activities carried out, the more problems will be faced, especially problems related to the company's finances. So that the company experiences less than the maximum profit. For this reason, accurate financial management is needed to record and measure manufacturing company costs and profits so that the financial problems that occur in these manufacturing companies can be prevented or minimized through appropriate financial and operational controls. The method utilized in this study is a causal relationship. From the research results obtained using Eviews12 for manufacturing, Tunneling Incentives, Leverage, and Hedging can increase company value. It can also be concluded that Tunneling Incentive, as measured by Distributed Ownership Structure, has no significant effect on Leverage and Hedging. In contrast, Tunneling Incentive, as measured by Concentrated Ownership Structure, has a positive and significant effect on Leverage and Hedging. The managerial implications of this research are how important tunneling is for companies. The emergence of tunneling is due to agency problems between majority and minority shareholders. By holding tunneling by the controlling shareholder, there will be no dividend payment so that the controlling shareholder benefits the minority shareholder.

Effect of Job Involvement on Organizational Commitment: Evidence from Financial Institutions

The primary goal of this study was to assess the levels of job involvement and organizational commitment among employees involved in financial institutions, as well as to investigate the effect of job involvement on organizational commitment. A descriptive research design was adopted in this study. The study included 300 questionnaires delivered to 12 financial institutions (commercial banks, development banks, and finance companies). Out of them, only 179 (59.67%) were viable, and these were used for data analysis. The results presented that employees were judged to be highly involved in their jobs and committed to their institutions. Furthermore, it has been demonstrated that job involvement significantly and favorably affects commitment of employees. It indicates that employees who are more involved in their jobs have a stronger sense of commitment to their organizations. Therefore, Nepalese financial institutions must prioritize increasing job involvement and organizational commitment among their employees at all levels. Clear organizational goals provide greater possibilities for actively involved individuals to meet their needs and establish commitment to the organization. Financial institutions must adapt to these realities in order to foster a culture of involvement and commitment. Furthermore, employees should be encouraged to innovate and embrace creative working methods that are appropriate for different types of customers from all areas of society in order to maintain their growing interest and success in their jobs.

Who Provides Credit in Times of Crisis? Evidence from the Auto Loan Market

We examine the contribution of different lending channels to the auto loan market in times of crisis. Specifically, we explore lending from traditional banks, credit unions, and finance companies (nonbanks) over the past two decades, with an emphasis on the Great Recession and the COVID-19 pandemic. We find that banks provided weak support during the pandemic, thus losing market share and continuing the trend that emerged following the Great Recession. Nonbank market share during this period grew most significantly for subprime borrowers and in counties with stronger bank dependence. Survey evidence suggests that a tightening in banks’ lending standards may have contributed to this trend. These findings contrast with the experience during the Great Recession, when banks contributed the most resilient credit to the auto loan market. Our paper highlights nonbanks’ increasing role in the auto loan market in times of crisis, particularly for the subprime segment.

Tributación de las rentas financieras en el ámbito municipal

The Municipalities have advanced with the taxability of economic activities through the imposition of rates, even attempting to capture gross income from financial income, which,logically, has an impact on the cost of financing of companies. As a result of inflation, companies invest their surpluses in loans and financial instruments, obtaining a return or result for their disposal as compensation. We propose hereby to analyze the central aspects that we must observe to decide on the viability of said income being taxed at the municipal level.

Value and virtue in the extended reality (XR) industry

ABSTRACT It is increasingly common to see policymakers, industry, and regulators calling for governance of the ‘metaverse' – often envisioned as a technological stack supported by extended reality (XR) technology. This article focuses on the governance of XR by one major industrial stakeholder, Meta. We report on a thematic content analysis of partnership initiatives undertaken by Meta's Reality Labs division falling under the company's XR Programs and Research Fund (XPRF) – a US$50M scheme beginning in September 2021 (and ending September 2023), funding academic, industrial, and policy partnerships to ensure XR is 'developed responsibly'. We show that partnerships under the XRPRF are scoped predominantly around the prevention of social harm in XR (such as gender-based harassment and protecting children in VR) and promoting equity in XR software production, emphasizing diversity in geography and identity. These initiatives are framed as both socially and economically beneficial. We also examine the underlying political and economic interests guiding these partnership efforts – asking who really stands to benefit, and why. While we take a critical perspective to Meta's XRPRF, we believe things to be more complicated than beneficiaries of industry funding simply ‘selling out' or Meta exerting top-down power (by ‘buying’ research or policy influence aligned with their business interests). Rather, we argue that the XRPRF allows Meta to shape the contours of conversation and critique about where the harms in this emerging suite of technology are concentrated.

The Impact of AI on the Development of Manufacturing, Logistics, and Financial Company from Capital Market Perspectives

Abstract: This paper explores the impact of AI technology on enterprises, especially in finance and capital markets. With the rapid development of AI technology, enterprises hope to improve productivity, financial management, and market competitiveness through AI, and ultimately achieve sustainable development. The article aims to analyze the application cases of AI in head enterprises and their effects and put forward corresponding suggestions and insights. By analyzing case studies of enterprises such as Tesla, Amazon and JP Morgan, it elaborates on the application of AI in various areas such as enterprise manufacturing, supply chain management, automated trading, risk management and customer service. It reveals the great potential of AI in improving enterprise operational efficiency, reducing costs and optimizing decision-making. By analyzing the above cases, it is suggested that enterprises should strengthen data privacy and security management and improve technology transparency and interpretability when introducing AI technology. The study reveals that AI technology has potential but also faces challenges, and enterprises need to keep overcoming obstacles to achieve the wide application and deep integration of AI technology.

PT DANONE'S HANDLING OF FINANCIAL ISSUES AND CRISIS DUE TO THE ISSUANCE OF THE MUI FATWA BOYCOTT

This article discusses the issue management and crisis communication implemented by the food and beverage company, Danone, in responding to the spread of hoax news related to the MUI fatwa accusing its products of supporting Israel. This fake news poses a serious threat to the reputation and trust of consumers so it also affects the company's finances and requires an effective financial management strategy. This article analyzes in depth the steps taken by Danone in responding to these problems, including problem identification, crisis planning, forming a crisis management team, and implementing appropriate management strategies to maintain financial liquidity. This research also highlights the impact of boycott news on the liquidity of the PT Danone company. The results of this research provide insight into how large companies such as Danone are able to handle complex issue challenges in the era of social media and the rapid dissemination of information in maintaining company financial liquidity. It is hoped that these findings will contribute to business practitioners, policy makers and researchers interested in the financial sector, especially in the highly sensitive food and beverage industry. This research also emphasizes the importance of targeted issues and financial management strategies as a key factor in maintaining company liquidity in the midst of an unexpected crisis situation.

Does Intellectual Capital Influence Firm's Financial Performance in Bangladesh?

This paper aimed to find the effects of intellectual capital and its components on firms’ financial performance in Bangladesh. A sample of 100 firms comprised of 48 manufacturing, 21 services, and 31 banking companies was studied for five years from 2017 to 2021, setting 500 firm-year observations. Data was collected purposively from secondary sources, such as annual reports of sampled companies. The robust fixed-effect regression model using STATA 14.2 software was applied to test the hypothesis due to autocorrelation and heteroscedasticity problems. The regression results documented that overall IC, human capital efficiency (HCE), and capital employed efficiency (CEE) positively and significantly enhanced the ROA and ROE of the firms. However, structural capital efficiency (SCE) and relational capital efficiency (RCE) negatively and insignificantly influenced the same. The study contributes to resource-based theory using econometric methods to extend the samples of both financial and non-financial companies. This study helps investors, managers, policy-makers, governments, and accounting regulatory bodies regarding the utilization pattern of invisible and tangible resources in Bangladeshi firms.

Analyzing the role of regulation in shaping private finance for sustainability in the European Union

This paper examines the effect that the EU Action Plan on Sustainable Finance has on mobilizing private finance for sustainable-purpose companies. Our results suggest that the EU regulation has substantially augmented the influx of private financial capital into companies with sustainability purposes situated in EU countries subject to the regulation. This is valid mostly for companies whose purpose addresses environmental issues, while companies focused on social issues did not find a significant increase in financial attractions. Our findings contribute to understanding the role of policies to facilitate the transition of private finance towards sustainable development.

Enhancing Predictive Analytics in Business Intelligence through Explainable AI: A Case Study in Financial Products

Today, when the importance of data-based decision-making is impossible to question, the use of Explainable Artificial Intelligence (XAI) in business intelligence (BI) has inestimable benefits for the financial industry. This paper discusses how XAI influences predictive analytics in BI systems and how it may improve interpretability, and useful suggestions for financial product companies. Thus, within the context of this study, an XAI framework helps the financial institutions to employ higher-performing and more accurate models, like gradient boosting and neural networks, while sustaining interpretability required in tendentious planning and satisfying governance and supervision necessities. These studies reveal that, as applied to the credit scoring dilemma, XAI techniques such as SHAP and LIME do not only enhance prediction consistency and performance, but also offer a detailed understanding of customer behaviours, risk profiles and product performance. They help in interacting and acting within fields that involve decision making on aspects like customer loyalty, probable risks and audit. Furthermore, the study establishes that by incorporating XAI into BI improves model interpretability, which helps financial experts provide tangible rationale for analytical results and conform to regulatory directives. This framework and findings also support the importance of introducing XAI for financial BI applications to improve analytics practice within the sector. , enabling the generation of higher confidence, reliable decisions, which place the subject of XAI as a profound evolution of business intelligence in finance.

Predicting Employee Turnover in the Financial Company: A Comparative Study of CatBoost and XGBoost Models

Abstract: Employee turnover is a significant issue for financial institutions, impacting productivity, increasing recruitment costs, and disrupting critical operations. In this project, this study aimed to predict employee turnover using a dataset containing attributes such as employee satisfaction, performance, and tenure. By framing the task as a binary classification problem, this study employed CatBoost and XGBoost, two advanced regression-based algorithms, to develop predictive models. This paper's analysis demonstrated that CatBoost outperformed XGBoost across all evaluation metrics, including MAE, MSE, RMSE, and R, making it the more effective model for predicting turnover in the financial sector. The study highlights key factors contributing to employee attrition, such as job satisfaction, tenure, and promotion opportunities, offering actionable insights for retention strategies. Additionally, by predicting probabilities rather than binary outcomes, this study aims to make more detailed decisions about employee retention. This research provides valuable tools for financial institutions to mitigate the risk of turnover, retain critical talent, and ensure operational continuity.

The role of automated controls and streamlined compliance in managing risks in digital finance

This study investigates the role of automated controls and streamlined compliance in managing risk in digital finance institutions. Through a mixed-methods approach, combining quantitative analysis and qualitative insights from leading Indian digital finance companies (CRED, ZEST MONEY and PHONE PAY), the research examines the effectiveness of advanced technologies in enhancing risk management practices. The study found strong positive correlations between the adoption of automated controls and key performance metrics, including the fraud detection rate (0.68), regulatory reporting accuracy (0.72), and overall risk management effectiveness (0.75). Regression analysis revealed that automated control implementation was the strongest predictor of risk management effectiveness. A comparative analysis of different digital finance models highlights the varying challenges and benefits of implementing these technologies. This study proposes a holistic, future-proof framework that integrates AI, machine learning and blockchain for real-time risk monitoring, automated regulatory reporting and dynamic compliance management. This framework addresses the limitations of the current fragmented approaches and offers a scalable solution that is adaptable to evolving regulatory landscapes. The findings of this study have significant implications for practitioners and policymakers, emphasizing the need for investment in strong automated systems and adaptive regulatory frameworks. While acknowledging the limitations in sample size and longitudinal scope, this research provides a foundation for future studies and offers practical insights for enhancing risk management in the rapidly evolving digital finance sector. The study concludes that effective integration of automated controls and streamlined compliance is crucial for ensuring the resilience, integrity and sustainable growth of the digital finance ecosystem.

Comparison of Disclosure Levels of GRI Standards on Companies Listed on the IDX (Case Study Energy and Financial Sector)

Sustainability Reports are a hot topic among investors, company management and other stakeholders. With the mandatory sustainability reporting by OJK, the need for Sustainability Reports increases. This research aims to determine the level of disclosure of GRI Standards in Sustainability Reports in companies in the energy sector and financial sector of the Indonesia Stock Exchange. The content analysis method was used in this research to assess the content of sustainability reports from 53 selected companies on the Indonesia Stock Exchange for the 2022 period. The results of the analysis revealed that the level of disclosure of GRI Standards in energy sector companies was higher than in financial sector companies. Apart from that, in this research it is also known that the industry in which the company operates also influences the topics most frequently disclosed in the Sustainability Report.

Analysis of Factors Affecting Food and Beverage Company Finances in the Period 2019-2023

Several food and beverage sub-sector companies experienced a decline in profits caused by factors such as the decline in the rupiah exchange rate, declining consumer purchasing power and increasing business spending that exceeded revenue growth. Laboratory analysis is an important indication used in the process of evaluating a company's financial performance. This study aims to analyze the financial performance of food and beverage manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. The research method uses quantitative research. The purposive sampling method was used to collect a total of eighty samples from a particular organization for the purpose of conducting a survey. A technique known as multiple linear regression was used in the data analysis process. Based on the results of the study, there was no significant relationship between corporate social capital and financial performance. However, leverage has an impact on the company's overall financial output. Management should consider the amount of leverage when trying to improve the financial performance of the organization. If manufacturing companies in the food and beverage sub-sector are having difficulty with the availability of laboratories, leverage can be used as a method to improve financial performance. Further research is needed to investigate other aspects that have a major impact on the company's financial performance.

The Expected Impact of Applying the Insurance Contracts Standard (IFRS 17) in the Solvency and Profitability of Insurance Companies listed on the Amman Stock Exchange

This study aimed to identify the expected impact of applying International Financial Reporting Standard No. 17 on the solvency and profitability of the insurance companies listed on the Amman Stock Exchange. The descriptive analytical approach was used to achieve the study's aim. The study used the questionnaire as a tool, where the study population consisted of all insurance companies listed on the Amman Stock Exchange. In contrast, the study sample included heads of accounts departments and actuaries working in insurance companies and accountants, and 33 questionnaires were distributed to insurance companies. One of the most important findings of this study was that there is a relationship between the independent variable (application of IFRS No. 17) and the dependent variable (solvency) in the insurance companies listed on the Amman Stock Exchange. And that there is a relationship between the independent variable (application of International Financial Reporting Standard No. 17) and the dependent variable (profitability) in the financial and service insurance companies listed on the Amman Stock Exchange. One of the most important recommendations of the study is the need for insurance companies to be keen to provide employees with ongoing experimental courses to remove the ambiguity surrounding some of the provisions of International Financial Reporting Standard No. 17.

The Impact of Social Responsibility on the Company Financial Performance of the Asian Industrial Sectors

Aims: This research aims to study the relationship between social responsibility with its dimensions (economic, employee, and product) and company financial performance of Asian industrial sector companies. Methodology: This study used a sample of 113 listed companies from 2020 to 2023 using secondary data and DataStream and the study used the OLS Robust regression to test the relation between the variables. Results: The results showed that there is an important and positive link between social responsibility and its dimensions (economic, employee, and product) with financial performance. Since CSR is not a compulsory practice, many companies may not feel the need to involve in it. The regulators of Asian industrial companies could take advantage of these results in their attempt to achieve a development process. Conclusion: Though, with all the profits it needs, companies should take it as essential and start employed today with the aim of attractive a socially responsible organization for all. The process of “social responsibility” in development means that development aims are not limited to the current, but rather we must see their findings in the future.