Different Sources Of Financing Research Articles

Financing and profitability of commercial enterprises in La Libertad, 2022

Financing is very important for the operation of commercial enterprises, its proper management through loans allows resources to be invested for the expansion of business; therefore, the resources obtained from different sources of financing must be managed properly with the intention to ensure a profitability of considered levels. The purpose of this article is to determine how financing affects the profitability of commercial enterprises in the canton of La Libertad, through the analysis of each of the indicators of the variables of study, therefore a descriptive research was used through the desegregation of variables, and situational analysis of the object of study, applying the techniques of interviews and direct observation, in addition correlational research was used to determine the critical factors associated with financing and profitability, through surveys of the companies that were part of the study. The results obtained show that the accounting that the companies are doing is empirical and not very technical, which has caused them to grow slowly compared to medium-sized companies of the same type, which through adequate financial management has favored their sustainable growth and decision making.

The effect of capital structure on the financial sustainability of microfinance institutions: A meta‐analysis

AbstractConsidering the trend toward microfinance institutions (MFIs) commercialization that fundamentally reshapes their capital structure, this meta‐analysis, by synthesizing data from a wide range of studies, aims to investigate the impact of different sources of finance on the financial sustainability of MFIs and determine the optimal order in which these sources should be utilized. In this study, 166 effect sizes were obtained from 64 studies. Overall, the findings indicate that equity and deposit financing enhance financial sustainability positively, whereas debt and donation financing exhibit an inverse relationship. However, variations exist based on the MFI charters. While equity financing adversely affects the financial sustainability of MFI banks, it also exerts positive effects on other types of MFIs. Similarly, deposit financing negatively affected MFI NGOs. Regarding financial sustainability proxies, debt and equity financing affect financial self‐sufficiency (FSS) and operating self‐sufficiency (OSS), unlike donation and deposit financing. Equity financing has a positive effect on OSS but a negative effect on FSS. In contrast, debt financing shows the opposite trend. The meta‐regression further reveals that, as capital structure variables, the sources of finance do not significantly explain the variance in MFIs' FSS but do so for OSS. These findings have implications for managers and for future research.

ALTERNATIVE INVESTMENT METHODS FOR STABILIZATION OF BUSINESS ACTIVITY IN COUNTRIES IN THE PERIOD OF MILITARY THREATS

The article explores alternative methods of investment that can help stabilize the business activity of the region in the minds of military threats. Military conflicts and threats naturally influence economic stability, including a decrease in investment activity, a loss of capital and a gradual decline in business activity. Traditional investment methods, including direct foreign investment, loans and government subsidies, become less effective due to high risks. For such minds, alternative investment methods, including venture capital, crowdfunding, investments in infrastructure projects, cryptocurrencies, as well as government and private partnerships, take on special significance. They will not only ensure additional financial resources, but also reduce economic risks through diversification of capital and obtaining different sources of financing. The method is to investigate and develop alternative investment methods to stabilize the business activity of the region during the period of military threats. The possibility of stagnation of foreign direct investment as a source of stable capital in the minds of military conflicts has been explored. Particular attention is paid to the diversification of the investment portfolio to reduce risks associated with military threats, as well as the role of government regulation and international cooperation in this process. The key issues that affect the business of military affairs have been identified, as well as the need to develop strategies to ensure stability and economic growth. Thus, new opportunities for capital investment are opening up, which are associated with another of the instruments for hedging high risks – with the guarantees of third parties (or parties that act as compensators for possible their investment in capital). Expanded investment opportunities for subjects of the investment process are achieved on the basis of the formation of standard investment portfolios – through the subsequent division of the portfolio, such as butts and templates for investors. The results of the research can be used to formulate investment strategies that are aimed at stabilizing and developing the economy in the minds of the developing countries, as well as to encourage new models of cooperation between powers and cotton sectors.

Financial development, legal systems and SME finance: Cross-country evidence

This paper provides a comprehensive investigation into the selection of different sources of finance for both short-term and long-term projects by SMEs, utilizing cross-country data from the World Bank. The results highlight the crucial roles played by financial development and legal system in the countries where SMEs operate. Specifically, with better developed financial systems, SMEs are more likely to use formal sources of external finance from formal sources (e.g., bank and non-bank institutions) to meet their short term and long term financing needs, highlighting the importance of financial development in accessing external finance for SMEs. Furthermore, this paper provides evidence on the moderating effects of legal systems on the favourable impacts of financial development on SME finance. In particular, the effects of financial development on SMEs’ access to external finance are more pronounced in countries with stronger investor protection, such as common law countries, than in those civil law countries, highlighting the importance of legal syystems in facilitating SME financing and suggests that policymarkers should consider strengthening investor protection on promote SME growth and development.

Small and medium sized European firms and energy saving measures: The role of financing

This paper investigates the factors (such as different sources of financing, energy audits and internal monitoring activities) affecting the propensity of European small and medium sized enterprises (SMEs) to adopt energy saving measures (ES). For this purpose, a Probit model is estimated using data from the 2017 Flash Eurobarometer survey covering a large sample of European firms. The analysis is carried out for the full sample as well as for clusters based on an environmental performance index (EPI) and on the level of economic development in turn. The results indicate that internal financing always has a positive effect on a firm's propensity to adopt ES. Private external sources of financing appear to be more important for Western European firms as well as for those located in countries with a greater level of environmental awareness; in the latter, when firms combine private financing with energy audits or internal monitoring activities the propensity to adopt ES increases further. By contrast, in the Eastern Countries this occurs when firms simultaneously rely on public funds and monitoring activities.

How to secure an innovation grant for firms in new industries? Gender and resource perspectives

PurposeResearch on financing for entrepreneurship has consolidated over the last decade. However, one question remains unanswered: how does the combination of external finance, such as equity and debt capital, and internal finance, such as working capital, affect the likelihood of grant funding over time? The purpose of this study is to analyse the relationship between different sources of financing and firms' ability to fundraise via innovation grants and to examine the role of female chief executive officer (CEO) in this relationship. Unlike equity and debt funding, innovation grants manifest a form of innovation acknowledgement and visibility, recognition of potential commercialization of inovation.Design/methodology/approachThe authors use firm-level financial data for 3,034 high-growth firms observed in 2015, 2017 and 2019 across 35 emerging sectors in the United Kingdom (UK) to test the factors affecting the propensity of high-growth firms to secure an innovation grant as a main source of fundraising for innovation during the early stages of product commercialization.FindingsThe results do not confirm gender bias for innovation fundraising in new industries. This contrasts with prior research in the field which has demonstrated that access to finance is gender-biased. However, the role of CEO gender is important as it moderates the relationship between the sources of funding and the likelihood of accessing the grant funding.Research limitations/implicationsThis study does not analyse psychological or neurological factors that could determine the intrinsic qualities of male and female CEOs when making high-risk decisions under conditions of uncertainty related to innovation. Direct gender bias with regards to access to innovation grants could not be assumed. This study offers important policy implications and explains how firms in new industries can increase their likelihood of accessing a grant and how CEO gender can moderate the relationship between availability of internal and external funding and securing a new grant.Social implicationsThis study implicates and empirically demonstrates that gender bias does not apply in fundraising for innovation in new industries. As female CEOs represent various firms in different sectors, this may be an important signal for investors in new product development and innovation policies targeting gender bias and inclusion.Originality/valueThe authors draw on female entrepreneurship and feminist literature to demonstrate how various sources of financing and gender change the likelihood of grant funding in both the short and long run. This is the first empirical study which aims to explain how various internal and external sources of finance change the propensity of securing an innovation grant in new industries.

Measuring the burden of accidental injuries in India: a cross-sectional analysis of the National Sample Survey (2017–18)

Globally, injuries are the leading cause of premature deaths and disability and account for nearly 9 per cent of total deaths worldwide. Like other countries, India also faces a very high burden of injuries, with the second most common cause of death and disability. Annually, 0.15 million people lose their lives due to accidental injuries/road traffic accidents in India, which is 11 per cent of the accident-related death worldwide. This study aims to analyse the socio-economic and demographic differentials in the magnitude of economic burden and coping strategies associated with accidental injuries in India. The study used the nationally representative cross-sectional data on the ‘Key Indicators of Social Consumption in India: Health, (2017–18)’ of the National Sample Survey Organisation (NSSO). Simple descriptive statistics have been used to measure the incidence and intensity of accidental injuries. The economic burden is estimated through out-of-pocket (OOP) health expenditure on accidental injuries and the use of different sources of finance to cope with the same. In addition, the logistic regression analysis has been used to analyse the association between socio-economic covariates and the likelihood of suffering from accidental injuries in India. The findings reveal that, unlike outpatient care, the high incidence in inpatient care reveals that hospitalisation is inevitable in most cases after accidental injuries. Among various socio-economic variables, the incidence of accidental cases is higher among individuals residing in urban areas, males, educated persons, and economically better-off sections of society. Also, the mean monthly OOP expenditure on the accidental injuries-affected population has been estimated at INR 2672 .46 (US$ 41.06) and INR 3041.64 (US$ 47.09) in inpatient and outpatient care, respectively. Almost the same sections and the individuals who received insurance spend more OOP expenditure on accidental injuries. However, OOP expenditure as a share of total consumption expenditure (TCE) is significantly high among their counterparts, such as rural inhabitants, illiterates, scheduled castes, the very poor and those who do not have any kind of health insurance coverage. In addition to savings/income, individuals depend more on the distress sources such as borrowings and selling of household assets to meet their OOP health expenditure in India. In conclusion, the high incidence of accidental injuries threatens people more than some of the other ailments in India. A strict motor vehicle act, administrative and political determination, awareness campaigns through various media platforms, diverse road lane systems and traffic norms can help reduce accidental fatalities in the country. Reducing the economic burden of accidental injuries requires increasing public spending on healthcare services as a percentage share of the country’s GDP. Furthermore, comprehensive universal health insurance coverage for all, including each component of healthcare expenditure, is the need of the hour.

A triple helix of market failures: Financing the 3Rs of the circular economy in European SMEs

The Circular Economy (CE) shows hope to tackle our unprecedented climate catastrophe. However, there are market failures of double externality related to such environmental innovations (EI). CE market is evolving and has a unique financial circular risk attached to its business model that challenges standard financing instruments. The double externality market failures and the circular risk are termed as three (environmental-knowledge-financial) reinforcing market failures – a triple helix of market failures. The environmental externality, knowledge spillovers, and financial risk, all make a strong case for private and public sector contributions. Financing of CE is crucial, especially, in the case of European SMEs due to their traditional barrier to accessing finance including private costs, industry standards, lack of human and technological capital, limited information, and low market demand. In this paper, working with EU-wide SMEs data we investigate the impact of different sources of finance on a core reduce-reuse-recycle (3R) strategy of CE. The paper contributes to the literature by providing an empirical analysis of the different forms of finances including new instruments i.e., crowdfunding and capital market funding. In addition, the research contributes by assuming and encouraging discussion on embedded socio-institutional differences among countries. The study groups European countries into leaders, performers, and catchers, using the EI index that proxy measures underlying regional heterogeneity – EI frontiers – to support CE-related activities. The Probit estimates support this heterogeneity amongst the EU countries in utilizing financial instruments and assess the impact of a cohesive financing policy in terms of adopting 3Rs in SMEs. Under a cohesive policy, the adoption level is estimated at 61% for leaders, 65% for performers, and 49% for catchers. The results also show self-financing to be the most effective method of internal financing, which implies that the problem of double externality does not discourage internal financing. Moreover, alternative financing is the most effective method of external financing, which shows that the financial sector is offering innovative solutions to the circular risk of CE. The results of this study are relevant for a smart, sustainable, and inclusive global transitional CE policy.

What matters for private investment in renewable energy?

ABSTRACT This paper examines the drivers of private investment in renewable energy by source of financing for 13 economies over the period 2008–2018, with a focus on a sub-panel of Asian economies. Sources of financing – asset finance, corporate research and development (R&D), public market, and venture capital and private equity – vary not only across years and renewable energy sources, but also across countries. Using a fixed effects panel model, this paper provides a first quantitative estimate of the effect of government renewable energy policies on private investment across different sources of financing, with four main findings. First, while government expenditure on R&D positively affects private investment from asset finance and corporate R&D, it is not the most important driver in terms of the magnitude of the elasticity. Second, feed-in tariffs have a particularly strong effect on stimulating renewable energy investment financed through public markets, with the findings particularly strong for the Asian sub-sample. Third, tax incentives have a mixed impact across sources of financing. Fourth, technology costs and energy prices have considerable effects on driving renewable energy investment from asset finance, with the impact notably more pronounced for the Asian sub-sample. Key policy insights To maximize the impact of government R&D, policies should aim to facilitate a smoother investment environment for the private sector in the areas of asset finance and corporate R&D. This could include targeted subsidies and tax relief measures. Enhanced FIT mechanisms should be developed, particularly in Asia, to leverage greater investment financed via publicly quoted markets. This could also include more favourable initial fiscal incentives and terms of agreement. Tax incentives should be used with caution. While tax incentives have a positive effect on investment in renewable energy overall, they may negatively affect investment financed by corporate R&D and venture capital and private equity, i.e. private financing sources that are crucial for technology R&D and manufacturing scale-up. Countries with lower regulatory quality may need to offer higher FIT rates for policies to be effective in attracting private investment.

Economic Profile of Iranian Rehabilitation Services: 2002-2017

Objective: The role of the service sector in general and healthcare services in particular have been promoting in Iran’s economy. The implementation of the Health System Transformation Plan and the injection of new financial resources into this sector have raised concerns about the health system function. Thus, this is the first attempt to estimate and evaluate the share of rehabilitation services in the Iranian economic and health systems. Materials & Methods: The study utilized longitudinal trend analysis using the National Health Accounts data during 2002-2015. National Health Accounts, through input-output tables, breaks down the share of different sources of financing for different functions of the health system. According to this method, both the share of rehabilitation services in Iran’s economy and the financing sources of these activities have been calculated and compared to other countries. Data on Iran's National Health Accounts has been collected from the Statistical Center of Iran. International data is collected from the World Health Organization's National Health Accounts and the databases of the Organization for Economic Cooperation and Development member countries. Results: Expenditures related to rehabilitation services in Iran increased from 884 billion rials in 2002 to more than 2967 billion rials in 1396, equivalent to 0.02% of Iran's GDP in that year. The share of rehabilitation expenditures in total health expenditures in 2007 was at its highest level (0.3%). In the following years, it has always had a decreasing trend. In 1396 it reached about 22.0%, the lowest amount during 16 Last year. Comparing the economic share of rehabilitation of the country's economic activities with different countries shows that the position of this sector is in no way comparable to developed countries and is even lower than many developing countries. Tunisia, Tonga, and Moldova have a similar situation to Iran's economy, with rehabilitation services accounting for about 0.05 to 0.1 percent of their total economic activity. Comparison of the prevalence of disability in these countries with Iran shows that these countries had a lower prevalence than Iran. Examination of the share of various sources shows that out-of-pocket payments with households with 6.37 percent, the most, and the government with 7.18 percent had the least role in financing rehabilitation services. It is noteworthy that this figure was about 65% before implementing the health system transformation plan. Social insurance in 2017 also covered only 6.24% of rehabilitation costs. Conclusion: Inaccessibility of people with disabilities to healthcare services is a very serious issue in the world. The rehabilitation services expenditures have always been mentioned as one of the most important barriers of accessing to these services. Following the implementation of the Health Transformation Plan, the share of rehabilitation activities in Iran’s health market has been shrunk.

Finance in global transition scenarios: Mapping investments by technology into finance needs by source

Numerous studies have presented scenarios regarding energy transition, including the computation of investment costs in various models. Although these studies project detailed investment pathways for different technologies, they do not distinguish between different sources of and types of funding. They tell us what the transition will cost, but not how it will have to be financed. In this paper, we develop a methodology according to which an appropriate financing mix can be calculated from these investment projections based on technology-related assumptions in scenarios. We differentiate between debt and equity as well as between the following sources: public/private Research, Development and Demonstration (RD&D), small-distributed financing, venture capital (equity), public markets (equity), and asset finance (debt and equity provided by institutional investors). We show that major commitments to wind and solar energy need to come from institutional investors in the form of asset finance. In addition, to achieve the transition to a decarbonized power system, government and private investors need to continue investing and extend their engagement in funding research, demonstration, and early deployment. Finally, we present a number of policy options targeting the different sources of finance.

The End of Cornucopia: Party Financing after the Great Recession

AbstractThis article investigates the dimension and evolution of the financing of political parties. It focuses on 28 parties in the five major European countries (Germany, France, UK, Italy, Spain), analysing the parties’ budgets from 2002 to 2016. The article's assessment shows that the availability of funds increased until the beginning of the Great Recession (2008), and then decreased, mainly due to a decline in public support for parties. Diminished state generosity has led parties to look for different sources of financing: the article shows the proportion of self-funding resources in terms of membership fees and private donations that has sustained the parties’ finances. Finally the article presents a model that helps to explain the shrinking of parties’ income by including parties’ ideological alignment, electoral outcome, presence in government and share of public financing, and countries’ public spending and GDP level, to investigate the plausible causes of the reduction of parties’ income.

What Matters for Private Investment Financing in Renewable Energy Globally and in Asia?

We examine the drivers of private investment in renewable energy by source of funding for 13 global economies over the period 2008 to 2018, with a focus on a sub-panel of Asian economies. Using a seemingly unrelated regression model, we provide a first quantitative estimate of the effect of government renewable energy policies on private investments across different sources of financing. Our results indicate that feed-in-tariffs (FITs) have the greatest overall effect in Asia on driving private investment in renewable energy, particularly from asset finance compared with other funding sources. The impact of FITs in Asia is also greater than that of the global sample. The impact of FITs is amplified in the presence of lower regulatory quality, which may be related to ease of market entry. We also find an important role in Asia for government expenditure on research and development in stimulating private investment. The magnitudes of the effects in Asia are broadly in line with the overall global sample. Finally, we find that technology costs, are less elastic on private investment in Asia compared with globally in affecting private investment in renewable energy across all funding sources, which may be related to the prevailing strong cost competitiveness of Asian economies in renewable energy provision.

Оцінка ефективності фінансової складової реалізації цільових програм в Україні

The article is aimed at studying the implementation of the State-based target programs in Ukraine by evaluating the efficiency of their financial component. Important systemic problems of implementation of the program-target planning method in Ukraine are identified. The efficiency of the financial component in the implementation of the State-based target programs in Ukraine is assessed in terms of certain sources of financing, namely: funds of the State and local budgets of Ukraine, as well as other sources (off-budget funds such as contributions of program participants, grants of international organizations, funds of business entities and individuals interested in the implementation of projects, charitable and sponsorship contributions, credit funds, etc.). The planned amounts of financing for the researched programs have been determined and the shares that should come from different sources are calculated. At this, the State-based target programs are allocated with focus on economic, social and environmental ones. Some regularities of financing of target programs in the context of the structure of sources of financing and total investments have been identified. A study of the actual involvement of financial resources in target programs in general form and at different sources of financing (at the expense of the State budget, local budgets and other sources) is carried out. The percentage of the tasks scheduled in the target programs is determined. The components of the assessment of the success of implementation of the State-based target programs are determined by calculating the average percentage of the planned indicators of the program implementation. The efficiency of the use of financial resources for the implementation of target programs of various directedness is carried out. The general planned and actual amounts of financing of the State-based target programs in Ukraine are provided. Prospects for further research in this direction are to determine the effectiveness of attracting certain sources to the financing of targeted programs of various directedness.

How to finance the transition to low-carbon energy in Europe?

In this paper, we use standard scenarios focussing on renewable energy, energy efficiency and grid investments. We take stock of the literature and quantitative data on available sources of financing for clean energy to qualitatively match supply and demand of specific sources of finance in the European context. Our analysis shows that under the current investment mandates and lending criteria the required funds for a successful energy transition are available. In fact, the current landscape of financing sources can provide between two and six times what is necessary. However, institutional investors and lenders such as pension funds and banks in particular are reluctant to invest in the renewable energy or grid infrastructure because of expected (policy) discontinuities. In addition, more venture capital and household investment are needed to finance low-risk small-ticket projects in the early stages of innovative clean energy technologies, to complement the abundantly available funds for large-scale investments. Based on our analysis, we develop a matrix indicating the role and availability of different sources of finance and new intermediation channels in the energy transition and how these should be deployed.

How firms finance innovation. Further empirics from European SMEs

AbstractThis paper aims to evaluate the role played by different sources of financing when analyzing firms' attitudes towards innovating. The empirical investigation is based on a large sample of European small and medium‐sized enterprises (SMEs) observed over the period 2012–2017. Different measures of finance and several robustness checks are used to select a well‐behaved probit model. The results show that the probability to innovate increases when firms use internal financing and grants. The same applies when funds come from family and friends, while no conclusive evidence is found for bank loans. Recommendations for public policy to encourage firm‐tailored policies to promote investment in intangibles allow firms to benefit from innovation activities. European SMEs will also benefit from capital market developments and the advancement of new financial tools devoted to supporting innovation.

ECONOMIC SUMMARY AND FORMS OF FINANCING INNOVATIVE ACTIVITIES OF AGRARIAN ENTERPRISES

В статті досліджено напрацювання вітчизняних вчених щодо економічної суті, методів та форм фінансування інноваційної діяльності аграрних підприємств. Доведено, що фінансування інноваційної діяльності в цілому та у сільськогосподарських підприємств зокрема потребує використання значних обсягів фінансових ресурсів. Визначено чинники, які впливають на низький рівень залучення фінансових ресурсів. Доповнено перелік принципів фінансування інноваційної діяльності сільськогосподарських підприємств. Проаналізовано можливі джерела фінансування інноваційної діяльності аграрних підприємств та встановлено, що структура джерел фінансування залежить від багатьох факторів, а саме: ринкова вартість позикового капіталу; структура активів підприємства; особливість фінансових цільових рішень на підприємстві; темп зростання реалізації товарної продукції та її стабільність. З'ясовано, що успіх інноваційної діяльності залежить від способу її фінансової підтримки. Крім того значення різних джерел фінансування є не однаковою у структурі фінансування інноваційної діяльності сільськогосподарських підприємств, оскільки залежить від: форми власності господарюючого суб’єкта, строку окупності та особливості інноваційного проекту, що покладений в основу інноваційної діяльності підприємства, а також інших ендогенних та екзогенних факторів. Провідна роль у формуванні власних фінансових ресурсів сільськогосподарських підприємств належить державній фінансовій підтримці. Визначено, що вплив держави на процес фінансування здійснюється за методом прямої фінансової підтримки або непрямого стимулювання інноваційної активності. Використання власних ресурсів як джерела фінансування інноваційної діяльності аграрних підприємств істотно знижує ризик неплатоспроможності й банкрутства господарюючого суб’єкта. Фінансування інноваційної діяльності аграрних підприємств є складним багатогранним процесом, що відображає тісний зв'язок всіх його суб’єктів.

ALTERNATIVE FINANCING FOR ENTERPRISE DEVELOPMENT: THE CASE OF UKRAINE

Introduction. Enterprises at different stages of their operation and development life cycle need appropriate financial support . The article describes the alternative forms of financing, focusing on the mezzanine financing instruments (source of financing). Purpose . It aims to identify, characterize, and evaluate mezzanine financing instruments in comparison to the debt and equity financing sources. Results. Mezzanine financing represents an innovated form of financing, that is new and less popular in Ukraine. The problems of Ukrainian financial market are underlined. The article specifies the criteria of evaluation of different sources of financing including classic and innovative forms. It shows strength and weaknesses of each financing source in Ukrainian condition. The T. Saati Method is used to form the matrix of the advantages of different sources of financing. This evaluation was performed on the basis of 7 criteria. Originality . A systematic analysis using the Saati hierarchy method showed, that the most important criterion for choosing a source of financing for Ukrainian enterprises is independence in management and decision-making in the enterprise, other factors influencing the choice of financing are the size and price of the financial source. Considering a small business, that seeks to scale its business and innovate, the attractiveness of the types of financing was assessed on the basis of selected criteria. The analysis shows that traditional loan is much more popular, then other sources, but it also indicated the advantages of mezzanine financing in comparison to the other types of financing. Conclusions . Enterprise needs adequate financial support, the forms of which are currently quite diversified. Alternative sources of financing could be direct investment funds, government bonds for emigrants, that gives countries access to their migrants' funds and uses them for economic development. Among the alternative forms of financing the development of enterprises is mezzanine financing which is widespread in international activities but is practically not used in Ukraine. Ukrainian financial market can implement mezzanine activities on the basis of European experience through the creation of specialized financial institutions. This important step requires legislative changes, that are necessary to implement mezzanine financing and other alternative forms of financing of the enterprises.

Use of financial diaries to understand smallholder investment finance a cross country analysis in Mozambique, Tanzania and Pakistan

PurposeThe purpose of this paper is to evaluate the relative importance of different sources of finance for agricultural and non-agricultural investments using unique Smallholder Financial Diaries collected by Consultative Group to Assist the Poor (CGAP) in Mozambique, Pakistan and Tanzania at the individual and household level.Design/methodology/approachFollowing the analytical framework of variance decomposition developed in Samphantharak and Townsend (2010), this study develops a method to quantify how much each cash deficit associated to investments and expenses of interest co-move with different financing sources.FindingsThis paper finds that self-finance, rather than formal or informal finance from external providers, is the main financing source for long-term and short-term smallholder agricultural investments. Further, the paper finds that the main source of self-finance varies depending on the economic opportunities faced by smallholders, with non-agricultural income as the dominant financing source for some, while agricultural income dominating for others.Research limitations/implicationsGiven CGAP’s Smallholder Financial Diaries is not nationally representative, research results should be interpreted carefully. However, to the best of the authors’ knowledge, this is the first paper to analyze financing sources for smallholder households making use of high frequency financial data for individuals in developing countries.Practical implicationsThese findings imply that financial inclusion policies specifically targeting smallholders and the agricultural sector would benefit from enabling the development of an ecosystem of diverse financial services that respond simultaneously to both agriculture and non-agriculture needs.Originality/valueThis is paper furthers the authors’ knowledge on how smallholder households are financing their agricultural investments. Moreover, it applies methods in new ways to exploit a unique data set.

ІНФОРМАЦІЙНА СИСТЕМА УПРАВЛІНСЬКОГО ОБЛІКУ ЯК СКЛАДОВА СВІТОВОГО БІЗНЕС-ПРОСТОРУ: ДОСВІД СХІДНОЄВРОПЕЙСЬКИХ КРАЇН

The article explores the representation of managers regarding the management accounting information system at enterprises operating in Eastern Europe. The starting point was that accounting practices have the same tendency in most countries. The nature of the discrepancy in the interpretation of data obtained through the operation of this system between the "providers" of this data and the main users is studied. The factors that determine the subjectivity of the attitude to the initial data of the M.A.I.S. are analyzed. Emphasis is placed on analyzing the perception of IMI among Hungarian, Romanian and Ukrainian managers. In order to present the results, the authors applied the elements of the D&M information system success model, the concept of perception influencing the assessment of the MIS, and the findings of similar studies in the EU countries concerned. To achieve the main goal of the study, the collection of necessary data was carried out in the form of an online questionnaire of a target group of workers at Ukrainian companies, which, in turn, operate in various regions, various sectors of the national economy, have different sources of financing and the amount of capital as a whole. In order to cover a sufficient amount of information provided in the work, the authors used the results of a similar study conducted by Romanian scientists in the EU countries represented. The results of the survey revealed a shift in the emphasis of demand for information in financial reports among representatives of management personnel towards traditional financial accounting. The wording of these conclusions is due to a pre-conducted cluster analysis of grouped data regarding M.A.I.S. users by factors that form their particular relationship to this system. An analysis of the perception of selected types of information has made it possible to identify those managers who use traditional, financial information and those who use more qualitative information for management processes. It should be noted that non-financial information is more useful in a dynamic environment or for companies implementing innovative concepts such as Just in Time and Total Quality Management. Keywords: management accounting, information system, management, cluster analysis, Eastern Europe.