Financial Demands Research Articles

Research on the development issues and countermeasures of the China higher education foundation

Strong financial support is an essential prerequisite for ensuring the quality of education. As the scale of higher education institutions continues to expand, the demand for educational funding keeps increasing. Social donations, as a significant source of funds, highlight the importance of educational foundations. This paper reviews the development history, policy support, and primary fundraising targets of China's higher education foundations. Based on the existing issues in the development of higher education foundations in China, it proposes specific recommendations in four areas: strengthening the construction of a professional talent pool, enhancing the depth and breadth of information disclosure, increasing transparency in the use of donation funds, improving the quality of talent development, and paying continuous attention to graduate employment and career development. It also suggests engaging in digital philanthropy and utilizing social media platforms to enhance two-way interaction, thereby promoting higher education foundations to better fulfill their role and support the sustainable development of China's higher education.

How do government subsidies affect OFDI of private enterprises? Evidence from China

Compared with state-owned enterprises, private enterprises generally face strict financing constraints, especially in the process of internationalization which have a greater demand for funds. At the meantime, we focus on how government subsidies, as a form of financial support, affect the outward foreign direct investment (OFDI) of private enterprises. Using micro-data from the CSMAR database covering private listed companies from 2013 to 2017, this empirical study reveals that government subsidies positively promote OFDI of private enterprises. Moreover, financing constraints have an adverse effect on OFDI, but government subsidies help mitigate this effect. Furthermore, the results indicate that the impact of government subsidies on private enterprises' OFDI varies depending on the degree of marketization.

A Nonlinear Approach to the Analysis of the Financial Innovation-Money Demand Nexus in Nigeria

This study examines the asymmetric roles of financial innovation in the money demand function in Nigeria using annual data over the period 1981-2020. This is with a view to providing insight into how changes in financial innovation have contributed to the level and stability of the money demand function. The study questions the fundamental assumption of the existing literature that growing trends in financial innovation have symmetric or linear effects on the country’s money demand. Hence, it adopts the nonlinear autoregressive distributed lag (NARDL) with bounds testing procedure together with the cumulative sum of recursive as well as the cumulative sum of squares of recursive residuals tests. Results show that the link between financial innovation and money demand is asymmetric and that of the two partial sum variables, only positive changes in financial innovation have significant effects with the sign being positive in both the short run and long run. This shows that assumptions of linearity and no asymmetric structure reported in extant studies for financial innovation are somewhat misleading. Findings also confirm the stability of demand for money in Nigeria on account of the introduction of asymmetric effects of financial innovation. The study concludes that the financial innovation-money demand nexus is asymmetric and that there is stability in the country’s money demand function once asymmetry or nonlinearity is captured in the nexus. Therefore, it recommends the need for monetary authorities to pay attention to positive changes in financial innovation when policies on money demand are formulated for the purpose of enhancing the effectiveness and reliability of monetary policy as a tool for stabilising the economy.

The Proposed Approach to Current Financial Requirement Management in Organizations of The Alcoholic Beverages

Purpose: The aim of the article is to evaluate the turnover of current financial demand and the components underlying its calculation in alcoholic organizations listed on the international stock exchange and to propose a factor analysis and evaluation approach based on linear regression analysis, which will be considered as a new way to improve the financial management of working capital. Theoretical framework: This article presents an assessment of the use of working capital in alcoholic companies that are studied and listed on the world stock exchange, and offers practical solutions to improve the financial management of working capital. Design/methodology/approach: Within the framework of the research, we offer a new methodological solution for assessing the impact of the current financial requirement and the variables that determine it. First of all, the focus will be made from the point of view of interdependence in relation to income, based on which the turnover of the result indicator (CFR) and variables (AP, AR and I) in days is estimated. Findings: According to the results of the assessment in the companies Ambev S.A (Brazil), Anheuser-Busch (Belgium) and Diageo (UK), in the case of a change of division, the turnover of receivables (X1) and inventories (X3) has a positive effect on the turnover of current financial requirements, as well as the turnover of accounts payable per unit of change, has a negative effect on the liquidity of current financial requirements. It follows from the results of the analysis that for the companies under review, effective management of receivables and inventories is considered a key area of working capital management. Research, Practical & Social implications: During the study, we proposed a new methodological solution by conducting an assessment of working capital usage and factor analysis of the financial requirement of Ambev S.A (Brazil), Anheuser-Busch (Belgium) and Diageo (UK) companies involved in the production of alcoholic beverages in the world stock exchange. Originality/value: The scientific novelty of the study lies in the proposed approach to the evaluation of the index of current financial demand and turnover (in days) of its components (factors), as well as the marginal intervals of regulation.

Research on Decentralized Finance Lending Protocols: A Case Study of Compound

Decentralised finance (DeFi) is a decentralised peer-to-peer system based on blockchain technology that facilitates lending and borrowing through smart contract code and lending protocols replacing traditional financial activities that typically require trusted intermediaries such as brokers or banks. In this essay, the four factors of collateral presentation, borrowing rate, lending relationship, and subject of legal connection are compared between decentralized and centralized financial lending models. This paper illustrates the entire DeFi lending model using Compound as a real-world example. The borrowing interest rate is decided in real time by Compound's smart contract according to the supply and demand of funds in the market, so the borrower does not need to bargain with the lender. The smart contract will automatically match the money market. Additionally introduced are the DeFi innovation's concept and features. The paper concludes by discussing the advantages of DeFi lending and borrowing, the hazards associated with doing so, and providing an outlook on the future path of DeFi research.

Prospects of Mobilising Resources through Private-Public Partnerships (PPPs) in Private Universities in Uganda

Higher education is important in fostering knowledge production and innovation, and in attracting global government investment. However, in developing nations like Uganda, the surging demand for higher education strains government funding for universities, with private universities being more affected. Thus, private-public partnerships (PPPs) have emerged as a remedy to ease financial burdens. Nonetheless, it is uncertain whether private universities in Uganda have embraced PPPs. Our purpose was to explore the prospects of mobilising financial resources through PPPs by private universities in Uganda. We specifically aimed at exploring the possibilities for mobilising resources through PPPs and the conditions necessary for effectively mobilising resources through PPPs by private universities. Using a qualitative research approach with a descriptive design, we conducted interviews with PPP experts from both private and public universities. We analysed data by coding, categorising and thematising. Our findings revealed various PPP possibilities, including securing facilities, utilising staff services from public institutions, securing government grants and strengthening the existing chartered private universities. We found, too, that conditions for effective PPPs were unfavourable in terms of the legal framework, government support to private universities, willingness to partner, transparency, accountability, partnering skills and the economic environment. We concluded that private universities in Uganda have shown minimal engagement in PPPs, as conditions necessary for them to mobilise resources through PPPs were unfavourable. We recommend that private universities in Uganda should actively embrace PPPs with strong government support to address resource gaps and leverage additional resources to strengthen their position in advancing knowledge and innovation, thus enhancing their contribution to national development.

Household Saving in Crisis – Literature Review

The purpose of this article is to compare the focus of researchers and the saving behavior of households in different types of crises within the scope of the financial crisis of 2008 and the pandemic crisis. The research focused on the literature review of publications in the WoS bibliographic database concentrated on saving and personal finance with the addition of a crisis or pandemic. 276 publications in the WoS category of Economics were identified. Full and fractional clustering with VOS Viewer was applied. It has been found that there are differences in the behavior of households and in the focus of researchers concerning analyzed terms between the pandemic and other crises. In the case of the financial crisis of 2008, a broader approach prevailed, considering the situation of the financial market and its liquidity, but also inequalities and imbalances at the individual, national and international levels. When it comes to the pandemic, the term savings had the most associations with problems related to the situation of an individual household. Attention was paid to financial security, income, wealth, and demand generated by the household.

Assessing the potential of blockchain technology for Islamic crypto assets

Purpose The rapid rise of Islamic crypto assets, underpinned by blockchain technology, has introduced a novel dimension to the Islamic financial landscape, raising questions about their potential as safe havens within emerging Islamic economies. However, the opportunities and challenges associated with this phenomenon remain insufficiently explored. In this context, this study aims to empirically investigate the extent to which blockchain technology can establish Islamic crypto assets as safe havens in equity markets within Islamic economies. Design/methodology/approach This study addresses the need for rigorous empirical analysis to understand the dynamics between Islamic crypto assets and stock markets in emerging Islamic economies, focusing on the transmission of volatility. While the evolving nature of the Islamic financial sector demands reliable data, the reliance on the most available data offers insights into the expected future trends in this emerging field. The research specifically focuses on three essential assets in the Islamic financial portfolio: OneGram Coin and X8XToken, both backed by gold and MRHB DeFi, an Islamic DeFi asset lacking gold backing. These crypto assets are compared with corresponding assets in seven stock markets of emerging Islamic economies. Using daily log returns of the Islamic crypto assets from various sources and seven Islamic stock indices. The data covers the period from December 27, 2021, to December 28, 2022, capturing the fluctuations in Islamic stocks and cryptocurrency markets during the post-COVID-19 era. This research uses advanced econometric techniques, including pairwise dynamic correlation and the DCC GARCH model. Findings The findings indicate that Islamic crypto assets exhibit distinct characteristics, with lower volatility and low correlations compared to their conventional counterparts in non-Islamic contexts. This outcome suggests that these Islamic crypto assets could potentially serve as safe havens within Islamic stock markets, offering valuable insights for various stakeholders, including investors, governments and policymakers. Research limitations/implications The findings are based on a specific set of Islamic crypto assets and may vary with a different selection. Market dynamics can also influence the relationships observed. Nevertheless, the outcomes provide valuable insights for investors, policymakers and researchers interested in the intersection of Islamic finance, cryptocurrency and technology. Originality/value In essence, this research not only unveils the potential of Islamic crypto assets as stabilizing forces but also delineates a trajectory for subsequent research endeavours within the realm of emerging Islamic Fintech, elucidating the challenges, opportunities and benefits that lie therein. With a discerning eye on circumventing the pitfalls entrenched within conventional crypto finance, this study contributes to a heightened comprehension of the transformative role that Islamic crypto assets can assume, ultimately enriching the financial resilience of Islamic economies.

Economic policy uncertainty and access to finance: An international evidence

AbstractIn this study, we provide the first attempt to relate economic policy uncertainty (EPU) to firms' access to finance. Using data from 26 countries and the news‐based index from Baker et al. (2016), we provide evidence that EPU significantly increases financial constraints and decreases firms' access to finance. Our main inference is robust to alternative measures of financial constraints, alternative samples, alternative model specifications, and several approaches that control for potential endogeneity. We further show that the EPU‐financial constraint relationship is driven by both the demand and supply sides of financing. Additional analyses suggest that the impact of EPU on firms' financial constraints is moderated by board characteristics (i.e., gender diversity, independence, and duality). They also highlight the moderating roles of government effectiveness, the rule of law and control of corruption. Collectively, our findings provide novel theoretical and practical contributions in relation to EPU and the firms' setting.

Outbreak economic analysis of six imported hemorrhagic fevers following detection at 24 hours

Abstract A ten-language search found no economic analysis of symptomatic hemorrhagic fever importation for Crimean Congo (CCHF), Hantavirus (HV), Lassa (LV), Marburg (MARV), Middle East Respiratory Syndrome (MERS) or Nipah (NV) into the USA/EU/UK. This study used available literature to calculate the cost of importation of the six selected fevers with each outbreak detected at 24 hours. A PRISMA search of Pubmed and grey literature was undertaken to uncover respective R0, case fatality ratios, average hospital stay, time to death, frontline casualty frequency and contact histories. A simulated breakout, t24 intervention, Borel distribution contact model, with R0 determined infection (0-1.59) and death rate (CFR: 0.01-0.5) was formed. Treatment inc. plasma therapy, and PPE best prices were determined. ICU median operational costs were factored with contact tracing. Indirect admin costs, based on national mean values, frontline replacement, GNI per capita productivity losses through isolation (21 days as standard), hospitalisation and death were factored. Mean patient discharge ranged 4.4 - 28 days (CCHF to MERS). Time to death ranged 2 - 15 days (HV, NV). The number infected at t48 ranged 1 - 9.59 (CCHF/HV to MARV). Contacts ranged 27 - 169 (CCHF to MARV/NV/MERS). Direct costs of outbreak care, labour, and tracing ranged €424707 - €2850083.07 (CCHF - MARV). Indirect costs, attributed to administrative burdens ranged €5264 -€32800.02 (CCHF to MARV). Productivity losses, attributed separately to the isolated, treated, and dead totaled €2042613 - €26198606 (CCHF - MARV). The total outbreak cost ranged €2488512.78 - €29081489.72 (EU, CCHF - MARV). Significant direct, indirect and productivity costs were attributed to the importation of a single case of six hemorrhagic fevers when detected at t24. The significant societal cost of MARV in particular highlights the importance of continued hemorrhagic fever research and preparedness to healthcare systems in protecting future budgets. Key messages • The importation of hemorrhagic fevers has significant direct and indirect budgetary, and productivity, impacts. • Besides human cost, financial costs demand public health enhanced surveillance and response plans for hemorrhagic fever importation.

A Study On Financial Performance Analysis With Reference To Real Touch Finance Limited And Selected NBFCs In India Using Camel Model

The emergence of Non-Banking Financial Companies (NBFCs) in India is a response to the substantial unbanked population, making them vital players in the financial market. Institutions like Real Touch Finance Limited (RTFL), Dharani Finance Ltd, and Shriram Finance Ltd have experienced rapid growth due to the rising demand for funds in areas like education, housing, marriage, vehicles, and leisure. A comprehensive CAMEL analysis from 2018 to 2022 assessed their financial performance. RTFL displayed positive trends in management efficiency, earnings, and asset quality. Dharani Finance Ltd faced volatility in returns and profitability challenges, while Shriram Finance Ltd had positive capital adequacy but struggled with liquidity and ROA. RTFL outshone with improved margins and non-interest income. In conclusion, RTFL appears relatively stronger, highlighting the importance of ROCE and ROA for shareholder wealth. This study provides valuable insights into improvement areas, growth prospects, and risks, emphasizing capital utilization, cost management, profitability, and efficient liquidity management for long-term success.

Are All Short-Term Institutional Investors Informed?

We examine whether being a hedge fund has any differential effect on the previously documented empirical relation between investment horizon and informativeness of institutional investors’ trades. We find that the positive and significant relation between short-term institutional demand and future stock returns exists only among hedge funds, while such relation does not exist for non–hedge fund institutions with short investment horizons. We also provide evidence that our results are not driven by (false) presumptions that hedge funds represent the majority of short-term institutional investors or that hedge fund demand constitute the lion’s share of the short-term institutional demand.

Strategies of unicorn startups: how these positive deviants compare to early-stage and Fortune 500 ventures

PurposeThe purpose of this paper is to begin to explore the strategic priorities of unicorn ventures as pursuers of market disruption. This study approaches this task by drawing on the positive deviance concept for studying outliers with the intent of understanding the strategic priorities of these ventures.Design/methodology/approachThis is a comparison study of the priorities of 75 unicorn ventures, 37 early-stage ventures and 45 Fortune 500 organizations. The authors use computer-aided text analysis to conduct within-sample and between-sample means comparison tests of 12,487 newswires from 2022.FindingsWhere early-stage ventures emphasize their mission, and Fortune 500 companies emphasize financial results, unicorn ventures, occupy the middle of the spectrum, balancing their priorities between pursuing market disruption and achieving financial results. These high-growth outliers indicate their priorities by using significantly less positive tone, affective and prosocial language, and focusing less on corporate social responsibility initiatives, compared to early-stage ventures (and using more of this language compared to Fortune 500 ventures). An additional finding emphasizes that public Fortune 500 companies focus significantly more on money than their topic of interest.Originality/valueThis work has implications for understanding the strategic priorities of entrepreneurial ventures in different development stages. The results suggest that unicorn ventures actively work to balance their startup mission, which allows them to experience high-growth and achieve market disruption, with the financial demands of venture capital investors. This novel conclusion demonstrates the value of using positively deviant outlier cases, such as unicorn ventures, as a viable sample for studying market disruption.

Recovering lost tax to meet the health financing gap for universal public sector health systems in East and Southern Africa

IntroductionUniversal healthcare services funded through taxation and free at point-of-access are the most equitable ways of funding healthcare rights. This paper examines key public sector health financing measures in 17...

Consumption, Housing Market and Demand for Mortgage Finance: Some Crucial Theoretical Discussions towards an Appropriate Model for an Emerging Economy

This paper focus on the consumption function theoretical perspective and how this can used to derive suitable models for the demand for mortgage finance. This study will critically examine the various consumption functions in economic science which have been developed over the last century. The review of the various models will focus on the structure, characteristics, variables, data sets and sources that were used and the critical findings of the models. This paper examined existing literature on the consumption functions discussions, identified the critical characteristics from the model and identified the differences among the various consumption model. Furthermore, the consumption functions were linked to the various demand for mortgage financing models in this work. This study spanned the years 1923 through 2023 where these important tools can be vital to the understanding of the various economic cycle and significant instruments for effective decisions regarding investment, monetary and fiscal policy. The periods experienced critical economic shocks such as credit boom, a financial recession, a rebound, and strong economic expansion. In this study piece, a systematic literature review (SLR) was performed, and the research revealed crucial consumption functions analysis to enable this paper identify suitable demand for Mortgage finance model for an emerging economy. A SLR was performed using a sample of 100 research articles chosen from a pool of 400 papers obtained from Scopus, Web of Science, Google Scholar, ABS journal and, among other sources. As a result of the review, the paper recommended a hybrid model that blended the theoretical perspective of consumption functions and relevant characteristics that is suitable for an emerging economy. This model will be useful for mortgage analysts, Credit Managers, Governments and Bankers to implement and enhance the movements in the mortgage market. This will also enhance and assist in facilitating the effective implementation of the Nigerian mortgage finance policy.

Dynamic Optimization of Construction Time-Cost for Deep and Large Foundation Pit Based on BIM Technology and Genetic Algorithm

With the increasingly fierce market competition, optimizing the construction time-cost of deep and large foundation pit construction projects has become one of the key factors for construction enterprises to remain invincible. By dynamically optimizing the time-cost, the optimal time corresponding to the lowest engineering cost can be found. Based on a comprehensive transportation hub project, considering the time value of capital and the reward and punishment of construction time, a time-cost dynamic optimization model is constructed. Relying on BIM technology, the feasibility of construction plan is analyzed from both qualitative and quantitative perspectives, and the project parameters and resource information is obtained accurately and quickly. Using the MATLAB program, time-cost optimization based on genetic algorithm is carried out, and the static and dynamic optimization results are compared. The results show that the dynamic optimization scheme reduces the total cost by 1.68% while reducing the total construction time by 8.47%. The dynamic optimization scheme extends the construction period by 2 days while reducing the total cost by 89,500 yuan compared to static optimization. The peak value of the fund demand curve before and after optimization has decreased from 128,000 yuan to 127,000 yuan. The time-cost dynamic optimization, considering the time value of capital is more in line with engineering reality, and the optimization results are more reliable and accurate. BIM technology can accurately and quickly obtain project parameters and resource information, solving problems such as complex processes in super deep excavation and huge engineering data statistics. The genetic algorithm can efficiently and accurately search for the optimal solution within the global domain. This study combines BIM technology with the genetic algorithm to solve the dynamic optimization problem of construction period cost for deep and large foundation pits. The research results of this study provide a theoretical reference for the optimization of schedule cost for similar projects.

Performance feedback and corporate maturity mismatch: Evidence from China

Based on the behavioral theory of the firm, we argue that different kinds of performance feedback change firms' financing demands and sources, thus affecting the corporate maturity mismatch between investment and financing. Using data on Chinese A-share listed firms, our findings suggest that positive performance feedback reduces maturity mismatch, and conversely, negative performance feedback exacerbates maturity mismatch. Further, research shows that financing constraints are the primary avenue through which performance feedback affects maturity mismatches. We also explore the heterogeneity of this influence relationship across the different characteristics of firms’ property rights, factor intensity, and performance feedback persistence. Our study helps explain the formation of a corporate maturity mismatch from the perspective of a firm's behavior. These findings have significant implications for achieving stable capital market operations and high-quality corporate development in China and other emerging economies.

Exchange rate shocks, multinational firms and access to finance

AbstractI estimate the effect of financial constraints on the response of firms that import inputs to a large exchange rate depreciation. Using data from a census on Indonesian firms, I find that while domestic importers face lower value added due to a rise in their costs of production, foreign‐owned importers fare better: they are more likely to sustain higher value added, hire more labor and use more materials than domestic owned firms. These effects are driven by firms in industries with high demand for external finance, emphasizing the importance of access to finance in mitigating the impact of trade and credit shocks. This suggests another channel through which FDI can add value to a firm in a developing country, particularly with the increasing importance of trade in intermediate goods.

Financial Capital and Production Demand for Value-Added Innovations in SMEs

SMEs have characteristics and an important role in economy. Its independent characteristic makes it must be able to innovate. Innovation that has meaning with added value in innovation. Several influencing factors come from internal and external SMEs. Internal factors are believed to have a fundamental strength for SMEs to innovate. One of them that was used in this research was financial capital. In addition, external factors, also have meaning for innovation. In this research, production from demand was used as variable. This study aims to examine how financial capital and demand of production affect SME innovation. The research was conducted on one hundred SMEs in the Java region of Indonesia. The research was carried out post-pandemic, in first term of 2023. The research was conducted by analyzing the intervariable using the structural equation partial least square model. The research results that financial capital and demand for production influence innovation to create added value for SMEs. Through this research, it is hoped that SMEs will be able to find out that the financial capital factor needs to be strengthened to create innovation. Besides that, production demand also has a role in SMEs seeking innovation by providing added value to their production.

A Study on Retirement Preparedness and Confidence among Private Sector Employees in Malaysia

Retirement planning is particularly significant for an individual since it ensures that the individual's financial demands are met during the post-retirement period. A good plan prior to retirement is associated with significantly higher life satisfaction after retirement, given that many people spend a significant portion of their lives after a lengthy employment period. Personal retirement planning, on the other hand, is up to the individual. To ensure a comfortable retirement, employees must make a deliberate decision to set aside some of their earnings. However, past studies on retirement planning show that workers in Malaysia have made little or no preparation for their retirement. They only realize the need for retirement preparation when their savings are not enough to cover post-retirement expenses. Therefore, the main purpose of this study is to investigate the effects of attitude towards retirement, goal clarity, social influence, and financial literacy on the preparedness and confidence of private sector employees in Malaysia. Aside from that, the study intends to compare employees' retirement preparedness and confidence by gender as well as age group. The data for this study was collected through the use of a questionnaire. This study used ordered probit regression to see the effect of the determinants on retirement preparedness and confidence. The results of the study showed that attitude towards retirement, goal clarity, social influence, and financial literacy have a significant positive effect on retirement preparedness and confidence. Apart from that, male employees are found to be more prepared and confident to retire compared to female employees. Finally, employees between the ages of 31 and 40 are the most prepared and confident in their ability to retire. The study's findings have important implications for the retiring population in order for them to plan ahead of time so that they can survive throughout their retirement phase.