Development Of Financial System Research Articles

Green Investor Holdings and Corporate Green Technological Innovation

This study builds upon existing research on institutional investors and corporate green innovation by distinguishing green investors, who prioritize environmental contribution, from general institutional investors. Drawing on the stakeholder theory and the Porter hypothesis, we hypothesize that the shareholdings of green investors can effectively stimulate corporate enthusiasm for green innovation, with state ownership exerting a positive moderating influence. Utilizing panel data from China’s A-share listed manufacturing firms spanning from 2010 to 2019, we employ a fixed effect regression model to test these hypotheses. Our empirical findings confirm our expectations, demonstrating that green investors’ shareholdings indeed foster corporate green innovation. Moreover, we observe that this positive relationship is amplified within state-owned enterprises, indicating the presence of a robust and stable environmental regulatory framework across the market. Additionally, our results support the Porter hypothesis, suggesting that adherence to environmental regulations can coexist with firm performance rather than being mutually exclusive. This study contributes to the literature on green investors and corporate green innovation, providing valuable insights for the development of China’s green financial system and sustainable development strategies.

Development of financial system for technology enterprises based on sensor networks and adaptive genetic algorithm

In the evolution of enterprises, the emergence of the information age and advancements in related technologies have significantly amplified the significance of financial data generated through enterprise activities for their overall development. As data processing and information technology continue to advance, enterprises are increasingly prioritizing the development of financial systems. The focus of attention is shifting towards leveraging data in the development and utilization of financial systems. This signifies a gradual transition towards a data-driven approach in the development and utilization of financial systems within enterprises. Some basic activities of data processing can be carried out on the network platform. For the development of an enterprise, the scale of production and operation of the enterprise and the technology of system development will directly affect the speed of enterprise development. In the context of the development of the new era, Internet technology has been developed at a deeper level. The development of Internet technology and the construction of network platforms have changed the way enterprises develop systems to a certain extent, providing more advanced technology for enterprise development systems. Embedded system can provide people with excellent human-computer interaction experience, and it also has very powerful data processing capabilities. It has been the focus of research by researchers in various countries in recent years. This article analyzes the use of embedded systems and genetic algorithms, and provides a new technical direction for enterprises to develop high-performance financial systems.

The finance and growth nexus revisited: a truly Schumpeterian perspective

Abstract The nexus between the financial system and economic development is an issue that is as important for economic theory as it is for economic policy. This article provides a theoretical and empirical analysis of the standard literature that uses Joseph A. Schumpeter as an academic patron. The starting point of our study is the theoretical finding that Schumpeter is misinterpreted in the finance and growth literature. We show that this leads to puzzling empirical results and difficulties in explaining even fundamental relationships. After a critical analysis of the literature, we provide our own empirical analysis using a panel of 43 countries to explore the relationships between finance and growth variables based on a truly Schumpeterian and thus monetary growth model. Our empirical analysis shows that (i) dynamic credit variables are better at describing the finance and growth nexus than static credit variables, (ii) as saving is not a prerequisite for credit, we do not find a statistically significant relationship between household saving and gross domestic product (GDP) growth, and (iii) in line with the empirical literature, we find a bi-directional relationship between credit and GDP growth.

EFFECT OF FINANCIAL INCLUSION ON ECONOMIC DEVELOPMENT IN NIGERIA

Objective: The objective of this study is to investigate the effect of financial inclusion on economic development in Nigeria, with the aim of analysing the interplay between the two variables through a review of relevant literature and empirical evidence. Theoretical Framework: The finance-growth theory posits that development of financial systems cultivates an environment conducive to growth, operating through demand-following mechanism. This theory provides a solid basis for understanding the context of the investigation. Method: Financial inclusion was proxied through money supply, which represents the size of the banking sector, while credit to the private sector measures the size and financial depth of the banking sector. Data were sourced from the Central Bank of Nigeria Statistical Bulletins and the World Development Indicators. Results and Discussion: The findings indicate both short-term and long-term relationships between financial inclusion and economic growth, aligning with the theoretical framework. The implications and relationships identified are discussed within this context, including potential discrepancies and study limitations. Research Implications: The practical and theoretical implications of this research are discussed, providing how the results can be applied or influence practices in the field of financial management. These implications could encompass inclusive economic growth and sustainable development. Originality/Value: This study contributes to the literature by highlighting the need to design and implement interventions that promote financial inclusion while addressing the specific needs of diverse demographics. The relevance and value of this research are evidenced by its emphasis on advancing financial inclusion as a catalyst for driving economic development in Nigeria.

Role of financial openness in Ghana’s financial sector development episode

PurposeThis paper aims to reexamine the relationship between financial openness and financial development in Ghana.Design/methodology/approachThe study applied maximum likelihood estimation and autoregressive distributed lag approach and tested Granger causality using quarterly data from 1990:1 to 2020:4.FindingsThis study revealed a long-run equilibrium relationship between financial openness and development, indicating that financial openness is a critical factor in Ghana’s financial development. Therefore, the study recommends with caution that policies aimed at promoting financial openness could be an effective way to encourage sustainable financial development in Ghana, as financial openness alone may not bring the desired outcome.Research limitations/implicationsThe study contributes to the existing body of knowledge by providing empirical evidence of the link between financial openness and financial sector development in Ghana. Future research could delve deeper into the mechanisms through which financial openness affects financial development, exploring potential channels and transmission mechanisms.Practical implicationsThe findings suggest that policymakers, particularly the Ministry of Finance and the Bank of Ghana, should prioritize policies aimed at promoting financial openness. This includes continued efforts toward financial liberalization and creating an environment conducive to domestic and international financial transactions. Moreover, policies aimed at increasing trade openness, boosting real GDP and maintaining moderate real interest rates are essential for fostering financial sector development.Social implicationsEnhancing financial sector development can have significant implications for society, including increased access to financial services, improved economic opportunities and enhanced overall economic stability. By promoting financial openness and development, policymakers would contribute to poverty reduction, job creation and overall socio-economic development. The study bridges the gap between theory and practice by providing empirical evidence supporting the theoretical proposition that financial openness stimulates financial sector development.Originality/valueThis study fills a crucial gap in the literature on the effects of financial openness on Ghana’s financial sector development. It focuses on Ghana, which liberalized its financial sector in 1988 as part of the overall economic reforms in 1983, and this justifies the starting point of this paper in 1990, as there are no adequate data before 1990. The study uses principal component analysis to construct an index that measures financial development. The study considers the recent financial crises in Ghana in 2017 and underscores the importance of understanding the link between financial openness and financial development, which becomes useful for policymakers and researchers studying financial system development in sub-Saharan Africa which includes Ghana.

Building Sharia Law Banking System in Global Economic Development Under Local Wisdom Basis

Purpose: The aim of this research is to find out about building an Islamic legal banking system in global economic development based on local wisdom. Method: The research method used in this research is normative juridical and sociological juridical with this type of research taking field data. In sociological juridical research, this research uses primary data. In addition, this research uses normative juridical methods as an inseparable part in analyzing the development process of the sharia banking system in various regions in Indonesia with existing local wisdom, such as in Bali with Village Credit Institutions and in West Sumatra with Village Credit Institutions. Lumbung Pitih Nagari (LPN). The approach methods used are the conceptual approach and the statutory approach. Meanwhile, the data used is secondary data supported by primary data. Result and Conclusion: The results of the research can be concluded that public trust in the development of the Sharia Banking system plays a very fundamental role, where with public trust and knowledge, Sharia banking which manages the financial system will attract public interest so that it is easier to develop and develop. deeply rooted in people's lives. Apart from that, the development of the sharia financial system in various regions cannot be separated from local culture and wisdom. The role of positive law, which is supported by openness and harmony between religious communities and mutual respect as Indonesians, will make the sharia financial system an alternative in the global economy to support the national economy which is embedded in local wisdom. Implication of the research: This research contributes to the understanding of the integration of sharia principles in the global financial system and its impact on overall global economic development. Originality/value: The novelty of this research is that it explains building a sharia banking system in global economic development based on local wisdom which highlights deeper integration between Islamic economic principles and the current global economic context.

Early Warning of Financial Risk Management using AGRNN-COA Approach

Financial risk management was used to protect an entity's financial performance and stability, entails detecting, evaluating, and reducing potential risks, such as credit defaults and market swings. It includes tactics including hedging, diversification, and risk limitation. Financial authorities must immediately responsive for financial risk management system that works with the current economic development. This paper proposes a hybrid approach for early pre-alarm warning of financial risk management system and economic development. The proposed hybrid approach is the combined performance of both the Alternating Graph-Regularized Neural Network (AGRNN) and Crayfish Optimization Algorithm (COA).Commonly it is named as AGRNN-COA technique. The major objective of the proposed approach is to give early pre-alarm warning of financial risk management. AGRNN is designed to give early pre-alarm warning of the financial system of the country. The financial risk management from the AGRNN are optimized by using the COA. By then, the proposed model is implemented in the MATLAB/Simulink working platform and the execution is calculated with the present procedures. The proposed method shows better results in all existing like Financial Risk Management Supervised Algorithm (FRM-SVM), Financial Risk Management Deep Neural Network (FRM-DNN) and Financial Risk Management Heap Based Optimization (FRM-HBO). The accuracy level of proposed FRM-AGRNN-COA approach is 98% that is higher than the other existing methods. The specificity and the F-score of the proposed FRM-AGRNN-COA approach is 99% and 97%. The error rate of the proposed FRM-AGRNN-COA approach is 1.8%, which is very less compared to other existing techniques. From the result, it is conclude that the proposed approach based error is less compared to existing techniques.

Impacts of cross‐border equity portfolio flow and central bank transparency on financial development: The role of economic freedom and international bonds

AbstractWe investigate the effects of international equity portfolio diversification and central bank independence on financial development using panel data from 49 countries from 2001 to 2016. We find that international equity portfolio diversification improves financial development. We correspondingly examine potential factors through which international equity portfolio diversification may impact financial development and find that central bank transparency provides an important channel for improving financial development. We further find that the relationship between international equity portfolio diversification and financial development is sensitive to economic freedom. Concerning sequencing, we find that foreign equity and debt flow are complementary to financial system development. Our results are robust to endogeneity using the exogenous shock of the 2008 financial crisis. This study offers new empirical evidence on the relationship between international capital and financial development.

Development of the UAE financial system in a rapidly changing economic landscape

The UAE financial system is the country’s leading non+hydrocarbon sector which has shown good growth in the post–pandemic period. The country’s ability to become a leader in innovative technology not only among the GCC countries but also among the countries in the MENA region is beyond doubt. After the global financial crisis, which also affected the wealthy emirates of Dubai and Abu Dhabi, the UAE government took the vector to create a risk–oriented innovative financial system. The creation of major international financial centers, such as Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM), was the logical concept for creating the above system. Islamic financial institutions represented in the UAE operate within the framework of clear rules and standards that have been implemented by supervisory and regulatory authorities, precisely to build high–quality and transparent relationships between counterparties not only within one country, but also at the international level.

Financial System Development and Economic Growth: A Critical Analysis of the Literature

Any developing countries (DCs) want to achieve strong, sustained growth to ensure their sustainable development by 2030. Indeed, promoting economic growth is one of the targets of the majority of the Sustainable Development Goals (SDGs) set by United Nations member countries. In their agenda, financial system development cited as an effective means of enabling developing countries to achieve high rates economic growth. However, research into the relationship between finance and growth has produced controversial results, showing that financial development is not always conducive to economic growth. These non-consensual findings call for further research into the subject. With this in mind, the aim of this paper is to critically analyze the literature on the subject with reference to the characteristics of developing countries. We have used the stylistic facts observed in these countries to see whether the way in which studies are conducted is in line with reality. These facts revealed that, as conducted, theoretical and empirical work does not really illustrate the nature of this relationship in the case of developing countries. The authors do not take into account certain specificities of these countries. The studies focus mainly on the formal financial sector, whereas in developing countries, the majority of the population is unbanked, so they tend to turn to the informal financial sector for savings and credit. In Pagano's theoretical model, on which most empirical work is based, the efficiency of financial intermediation is assumed to be an exogenous variable. However, in developing countries, many factors influence this function: poor governance, prevailing corruption, inefficiency of the legal system, government intervention in the financial sector, culture of non-repayment. Banking sector development is generally captured by credit to the private sector. However, in developing countries, the majority of bank credit is allocated to large commercial enterprises that sell mainly imported products. The indicators generally used to capture financial markets development do not reflect the amount of financing actually obtained by listed companies. Rather, they measure the level of secondary market activity, whose mission is to ensure the liquidity of securities and determine their prices. Taking account of financial dualism and integrating factors linked to the institutional environment, borrower behavior and financial intermediaries into the resource allocation function would be a significant advance in the literature.

A Study on the Impact of Green Finance on the High-Quality Economic Development of Beijing–Tianjin–Hebei Region

China’s economy has shifted to a new stage of high-quality development, which means that economic development is no longer simply pursuing the increase of quantity, but a balance of quality and quantity. High-quality economic development (HQED) has become essential for China to achieve sustainable economic and social advancement. This paper explores the influence of green finance on HQED, along with the mediating roles of green innovation and industrial structure upgrading. A fixed-effects model is employed to assess the relationship between green finance and HQED and conduct an empirical test in the Beijing–Tianjin–Hebei (BTH) region of China. The findings reveal that green finance significantly contributes to the HQED of the BTH region, and green innovation and industrial structure upgrading have intermediary effects in this process. Based on these insights, this paper proposes several strategies to improve HQED in China, including the development of a green financial system, the promotion of green innovation, and the acceleration of industrial structure optimization and upgrading in the BTH region.

Elements of the modern system of domestic financial control

Subject. This article deals with the theoretical and practical issues related to the construction of a domestic financial control system and the formation of its elements (components). Objectives. The article aims to determine the main features of the functioning and development of the domestic financial control system, identify the elements (components) of the proposed system with the justification for classifying them as types of control, develop a scheme of the financial control system pointing out input and output values, the target function, as well as determine the goals, objectives and principles of building a domestic financial control system. Methods. For the study, we used the systems and logical approaches, and the general scientific cognition methods. Results. On the basis of the categorical analysis, the article clarifies the main elements (components) of the modern system of domestic financial control, its goals, objectives and principles of construction. It also formulates the need to build a modern system of domestic financial control, determines the main features of its functioning and development, identifies the elements (components) of the proposed system with the justification for classifying them as types of control, offers an author-developed scheme of the financial control system pointing out input and output values, and the target function. Relevance. The results obtained can be used in the activities of control and audit offices, forensic units, audit organizations and tax authorities during examination, control and audit.

The impacts of carbon emissions trading scheme on green finance: evidence from China.

China enacted and implemented a carbon emissions trading pilot policy in 2011, and whether this carbon emissions trading scheme (ETS) can promote the development of green finance is crucial to realizing a win-win situation for both environmental and economic performance. Based on the panel data of 30 provinces in China from 2007 to 2019, this study constructs a multi-period double-difference model (DID) to explore the impact of carbon ETS on the development of green finance and uses the spatial Durbin model (SDM) to test whether there is a spatial spillover effect of the carbon ETS on the development of green finance. The results show that (a) the implementation of carbon ETS significantly promotes the development of green finance, and this conclusion still holds through a series of robustness tests; (b) the promotion effect of the carbon ETS on the development of green finance is more significant in eastern and western provinces, non-resource-based provinces, and provinces with a high level of openness to the outside world; (c) industrial structural upgrading and green innovation play pivotal roles in achieving the desired outcomes of carbon ETS; (d) carbon ETS have spatial spillover effects on the development of green finance, with the indirect effects being more significant than the direct effects. The findings of this study can serve as a valuable reference for expediting the establishment of a unified national carbon market and the development of a robust green financial system. This holds immense significance in effectively implementing the "dual-carbon" strategy.

Green insurance, technology insurance, and corporate green innovation

The “dual-carbon” strategy was first written into China's “Government Work Report” in 2021, bringing green low-carbon development and green innovation to an unprecedented height. At the financial policy level, the Chinese government actively promotes the development of a green financial system represented by green bonds, green insurance, science and technology insurance, and green credit. Existing literature studies on green insurance and science and technology insurance mainly focus on the relevant legal system, the impact on corporate and risk management system, insurance types and service models, subsidy policies, and the problems and challenges they face. However, existing studies have studied the impact of green insurance and science and technology insurance on corporate' green innovation. In particular, the impact of their interaction on corporate' green innovation is rarely mentioned. From the perspective of green insurance and science and technology insurance to promote corporate' green innovation, based on the data sample of Shanghai and Shenzhen A-share listed companies from 2014 to 2015, this paper comprehensively investigated and analyzed the impact of green insurance and science and technology insurance on corporate' green innovation, and analyzed the interaction effect of the two. The research perspective of enterprise green innovation is expanded. The analysis conclusion of this paper provides new ideas and empirical evidence for Chinese corporate to realize faster and more efficient green transformation, which is conducive to stimulating the vitality of enterprise green innovation and development.

Does the development of financial system influence the level of inflation?

Purpose: The objective of this paper is to examine the impact of financial development on inflation in the Economic and Monetary Community of Central Africa. Method: We use a system GMM as an empirical strategy, using data from the BEAC and WDI databases over the period 1996–2022. Results: The main results of this study show that despite the low level of inflation observed in the Economic and Monetary Community of Central Africa, the credit risk associated with the provision of credit increases inflation. This increase in inflation reduces the performance of the financial sector. Originality of the article: The originality of this article lies in the fact that the central bank must consider financial development as a tool of prudential analysis, which makes it possible to increase the effectiveness of the fight against inflation while improving the performance of the financial sector. This study also shows that financial development is a determinant of inflation.

Comparison of U.S. Generally Accepted Accounting Principles with International Financial Reporting Standards

Each country has its own mutually accepted accounting standards, which are the rules that companies in these countries must follow when preparing accounting entries and financial statements. Accounting standards ensure the standardization of economic activities recorded by enterprises, and also provide a common index for fair evaluation of the financial status and operating results of enterprises. Nowadays, the accounting standards widely used in the world are generally divided into two categories: U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards. This paper discusses the measurement differences under diverse accounting standards by taking the division of R&D expenditures, inventory management and the preparation of cash flow statements as examples through theoretical analysis and overview. This paper finds that despite the many differences between GAAP and IFRS, GAAP also shows a trend of convergence with IFRS in recent years under the background of the continuous development of the international financial system.

Systematic Literature Review of the Development of Financial Information Systems in Churches

This study was conducted to investigate the factors that influence the development of financial information systems in churches. The study used a systematic literature review with 10 studies that met the inclusion criteria. The findings of this study suggest that user involvement, technology selection, and change management are all important factors that influence the successful development of financial information systems in churches. Churches that are considering developing a financial information system should pay attention to these factors to increase their chances of success.Keywords : Financial information systems.

How Does Anhui Province Develop a Carbon Finance Development Path under the Background of "Dual Carbon"

The solemn commitment made by our country's leaders in the international community to the " 3060 Goals" has brought new opportunities to the development of carbon finance and also posed challenges to the development policy of carbon finance. In recent years, the international carbon finance market has expanded rapidly, and concepts such as low-carbon economy have gradually received attention from various countries. Cooperation and exchanges on carbon finance among countries have also gradually increased. As the background for the construction and development of Anhui's carbon finance system, this article first summarizes the current status of global carbon finance, introduces the operation of several major foreign carbon finance trading markets, and analyzes the development trends of global carbon finance. It pointed out the difficulties and challenges encountered in the construction and development of the carbon financial system in Anhui Province, including the problems that must be solved during the construction and development of the carbon financial system, and put forward suggestions for solving these problems.

Genesis of the Russian Financial System and the Ways of its Transformation: the Period Before 1928

The life of modern human society is impossible without an effective economic model. In turn, functioning economies are ensured by the financial system of society. The purpose of this scientific research is to formulate a scientific approach to the development of the domestic financial system, which, unlike most foreign ones, has gone through stages of a complete change in the current paradigm. The Russian financial system has gone through mutually exclusive stages of development: finance of catch-up development, finance of war communism, finance of the new economic policy, Soviet finance, neoliberal and globalist finance, national finance. Each of these stages reflects fundamental changes in the methods and methods of management, which could not but affect the elements of the financial system. In financial theory and practice, there is high theoretical, methodological and methodological uncertainty regarding the elements of the financial system. In this context, their study from a historical perspective is relevant. It is proposed to highlight the following main elements: national currency, payment system, monetary relations, tax system, banking system, insurance system, mortgage system, public finance, securities market, mutual investment funds and non-state pension funds, exchange trading, existence of relationships with international finance. The research methodology is based on a theoretical analysis of the basic scientific principles of the formation of the financial system and its elements. The informational and empirical basis for the research was scientific research by Russian and foreign scientists, data from state and corporate statistics, and information and analytical reviews. The object of observation is the Russian financial system before 1928. The scientific novelty lies in the formation of the author's conceptual approach to the financial system and its elements, and the imperatives for the emergence of economic problems caused by the underdevelopment of the financial system are identified. The study showed the need to further improve the elements of the financial system to ensure economic growth and development.

Assessing the impact of external determinants on the social performance of Islamic banks

PurposeExplaining the sources of the differences in social performance among Islamic banks (IBs) is the motivation for this research. Consequently, the purpose of this paper is to investigate the relationship between the development of Islamic finance regulation, the development of an Islamic financial system, the proportions of affected Muslim populations and the level of competition, on the one hand, and the social performance of IBs, on the other. To the best of the authors' knowledge, this is the first study that investigates the impact of the development of regulation and the Islamic financial system on the social performance of IBs.Design/methodology/approachA balanced panel of annual data for 40 banks from 13 countries is applied, spanning 2012–2018. A social performance index with eight dimensions is constructed and measures the social performance of IBs. The index based on qualitative and quantitative data derives from IBs’ annual reports and financial statements. The linear scaling transformation method articulates the quantitative dimensions of the index. In hypotheses testing, the authors use OLS, LSDV, FEM and Random Effect Model to estimate Model (1) and panel-corrected standard errors with Prais–Winsten transformation to estimate Model (2).FindingsThis unique research confirms the positive impact of the development of Islamic finance regulation on the social performance of IBs. The results show that the development of Islamic finance regulation is consistently significant on all standard significance levels. IBs’ age and the presence of Muslim populations in the country are also significant in most estimators.Research limitations/implicationsThe results of this research highlight a significant value for regulators, shareholders and the management of IBs. Without proper regulation, these banks can hardly operate under the principles and expectations of the Islamic moral economy.Originality/valueThis is pioneering research that explores the development of Islamic finance regulation and market concentration as a determinant of social performance of IBs. Development of Islamic finance regulation has proved significant in all estimated models, which confirms that a new variable has been discovered among determinants of the social performance of IBs.