Financial Efficiency Research Articles

Research on the Development and Influence of Internet Supply Chain Finance on Enterprises

In todays digital era, the evolution of internet supply chain finance presents trans-formative opportunities and challenges for enterprises worldwide. This research explores the development and influence of Internet supply chain finance on enterprises, examining its impact on financial management, operational efficiency, and strategic competitiveness within supply chain networks. The study delves into the growing adoption of Internet supply chain finance solutions by enterprises seeking to optimize working capital, streamline transaction processes, and enhance collaboration with suppliers and partners. As digital technologies reshape traditional finance practices, understanding the implication of Internet supply chain finance becomes imperative for businesses navigating complex global supply chains. A comprehensive literature review synthesizes existing knowledge on internet supply chain finance. Preliminary findings suggest that Internet SCF offers significant advantages to enterprises, including improved liquidity management, reduced transaction costs, and enhanced supply chain resilience. However, challenges such as personal security risks and integration complexities underscore the need for strategic planning and technological readiness. By elucidating the development and influence of internet SCF on enterprises for practitioners, policymakers, and scholars in the field of supply chain finance and digital transformation.

Financial management, efficiency, and care quality: A systematic review in the context of Health 4.0.

This article investigates the intersection between innovation, Health 4.0, and financial management in the healthcare industry, emphasizing the importance of operational efficiency and quality of care. The study aims to analyze how financial management processes in healthcare relate to Health 4.0 and enhance care quality. It begins with a thorough theoretical grounding, proposing a framework that connects Health 4.0 with financial management practices. A systematic review of the literature was conducted, identifying trends, challenges, and opportunities in the financial management of Health 4.0. The results highlight selected articles on responsible innovation, Health 4.0 technologies, investments in health, hospital efficiency, performance forecasting, and high-cost patient management. These articles were clustered into "Data Analysis and Machine Learning in Healthcare" and "Health Management and Sustainability," providing a categorized understanding of the topics. The study reveals that Health 4.0 offers significant opportunities for process efficiency and cost reduction without compromising service quality. It highlights strategic advantages in addressing contemporary healthcare challenges by optimizing processes, improving financial projections, and incorporating advanced technologies efficiently. The successful implementation of Health 4.0 can lead to substantial improvements in service quality, adding value to patients and driving local economic development. This article offers valuable insights for healthcare professionals and managers, emphasizing the transformative potential of Health 4.0 and outlining strategies for its effective implementation. The clustering of articles provides a clearer understanding of current research in Health 4.0, contributing significantly to the field and guiding future research directions.

Efficiency of Healthcare Financing: Case of European Countries

Global turbulence and uncertainty force civil servants and executors to optimise public finance distribution. The COVID-19 pandemic aligned with the necessity of assessing the efficiency of healthcare financing due to its capability in overcoming the negative consequences. The paper analyses the peculiarities of healthcare financing in 34 European countries and points out trends and changes in its structure and dynamics. It also realises cluster analysis to reveal models of healthcare financing and their specific features. Panel data regression analysis was used to assess the efficiency of healthcare financing within each cluster by clarifying the relationship between healthcare expenditures and public health outcome—life expectancy. The distributed lag model was also used to test for time lags between financial inflows in healthcare and its outcome. Empirical results highlight key tips for optimising healthcare financing and creating the benchmark model.

The Impact of “Fintech + Financial Regulation” Matching Level on Financial Risk: Evidence from China

Preventing financial risk is an important topic that academic circles and the government have paid attention to for a long time. The development of fintech and the improvement of financial regulation will affect the level of financial risk. The relationship between the degree of matching between fintech and financial regulation and financial risk is explored, which is crucial for reducing financial risk. Panel data from 31 provinces in China from 2011 to 2020 is used to explore the impact of fintech and financial regulatory matching levels on financial risk. The study finds that the improved matching level between fintech and financial regulation helps reduce financial risk. The degree of matching between fintech and financial regulation affects financial risk through financial efficiency.

Research on the relationship of coupling coordination between digitalization and green development

The coupling coordination of digitalization and green development has become an inevitable requirement for building a new development pattern and achieving high-quality development of China’s economy. Based on the panel data of 284 Chinese cities from 2011 to 2021, this study uses the coupling coordination degree model, Dagum Gini coefficient, spatial convergence, Markov transfer probability matrix, and panel Tobit model to quantitatively analyze the spatial–temporal evolution characteristics and influencing factors of the coupling coordination degree of digitization and green development. The study results show that the coupling coordination degree (CCD) of digitalization and green development has an overall increasing trend during the study period, and the eastern region is higher than other regions which showing spatial non-equilibrium characteristics. The spatial difference of the CCD continues to downward, and inter-regional differences are the main source of the CCD. In the long run, there is a “catch-up effect” between cities with low CCD and those with high CCD, and the CCD of digitalization and green development will tend to a steady state. The transfer type of the CCD has the characteristics of “club convergence”, the probability of maintaining the original state is high, and the overall CCD shows a good development trend in the future. Factors such as environmental regulation, green innovation, industrial structure upgrading and financial efficiency can significantly contribute to the CCD of digitalization and green development. The above findings provide empirical evidence of the CCD of digitalization and green development to achieve high-quality economic development.

Quantifying the Impact of Coal Transition on GDP Growth through System Dynamics: The Case of the Region of Western Macedonia, Greece

The transition from coal to more sustainable energy sources represents a critical shift for economies reliant on coal production. To investigate the intricate processes involved in such a transition, the use of powerful analytical tools is essential. This study assesses the impact of the delignification process on GDP growth over a 20-year horizon (2015–2035) in the Region of Western Macedonia, Greece, using the Vensim PLE Plus 9.0.1 software, a robust tool for system dynamics modeling. By developing a dynamic model that captures the key variables and feedback loops associated with coal transition, this research examines economic, social, and investment variables, emphasizing their causal relationships. The study integrates societal, economic, and educational impacts on production transition, addressing issues such as unemployment, financial support, and investments in human resources and R&D. Additionally, it considers the influence of climate change on GDP. The model highlights population dynamics, economic development, and education as critical factors. Scenarios explore the impact of increased funding on education, research, and financial aid efficiency, providing insights into enhancing GDP in decarbonizing regions. The study reveals that increased investment in education and human capital leads to slight improvements in local GDP, though the effects are not immediate. Enhanced efficiency in government and European spending significantly boosts local GDP by creating strong value chains and local economies of scale. It is found that the increase in financial support to the regions in transition is of the utmost importance and has a multiplicative nature, something that should encourage the European Union to increase its financial support tools. The model’s simulations align closely with historical GDP data, validating its accuracy. The contributions of the present work offer valuable insights to policymakers and stakeholders engaged in the transition processes.

A multidimensional financial attractiveness index: Scoring and classification of financial systems

This research paper aims to benchmark the characteristics of financial systems for 102 countries worldwide from the period of 2005 to 2017. The financial systems’ database encompasses four main dimensions, each consisting of several variables for every indicator: (a) financial depth, (b) financial efficiency, (c) financial access, and (d) financial stability. The objective is to closely analyse the different factors that contribute to the attractiveness of financial and economic systems globally. Furthermore, this paper employs a literature review and an empirical modelling and classification of financial systems worldwide to assess their attractiveness. The modelling process utilizes two statistical analysis methods: discriminant analysis (PCA) and neural analysis. By doing so, this research paper aims to identify the most appropriate measures to strengthen these systems and economies. The main conclusion of the research is to establish a ranking of the world’s best countries and also the validation of the hypothesis that macroeconomic conditions are the effective determinants of the classification dimensions of financial systems.

Bank intermediation efficiency and liquidity risk in Egypt: a two-stage non-parametric analyses

This is a pioneering study that undertakes a comparative analysis assessing the annual intermediation efficiency of public versus private banks in Egypt. Moreover, liquidity risk is a major threat facing banks in their efforts to sustain financial stability. Thus, this study is the first to model the determinants of liquidity risk in public and private banks in Egypt while examining the impact of banks’ intermediation efficiencies on their liquidity risk levels. The study employs advanced nonparametric econometric approaches on a sample of Egyptian public and private banks from 2014 to 2022. The data envelopment analysis is used in estimating banks’ intermediation efficiency scores, while the quantile regression analysis is applied to examine the impact of bank intermediation efficiency on liquidity risk under different liquidity risk quantiles. The findings indicate that public banks show consistent superiority in terms of their financial intermediation efficiency levels compared to private banks. Moreover, the paper findings demonstrate the negative significant relationship between bank intermediation efficiency and liquidity risk while highlighting the higher significant positive impact of intermediation efficiency on reducing the liquidity risk of banks that are characterized by undertaking high liquidity risk levels. Furthermore, contrary to general assumptions, this study’s findings demonstrate that the significance of micro- and macro-level determinants of a bank’s liquidity risk is dependent on its prevailing liquidity risk level. Hence, the positive impact of equity capital, asset concentration, size, and growth in gross domestic product and the negative effect of asset quality on bank liquidity risk vary under banks’ different liquidity risk quantiles.

An Empirical Study of Financial Efficiency and Stability of Crab–Shrimp Farming Model In Mekong Delta, Vietnam

The study is conducted with the goal of analyzing the financial efficiency of 308 crab - shrimp farming households in the Mekong Delta, finding factors that affect financial efficiency and the extent of their influence on farm household income. Research results show that extensive crab-shrimp farming households are highly effective. With the average cost of investment in production during the crab farming process of 2,051 thousand VND/1,000m2, the average revenue brought from farming Crab farming of 5,099 thousand VND/1,000m2, farmers have an average profit of about 3,020 thousand VND/1,000m2. The average value of the financial ratios shows that the production model in the Mekong Delta is financially effective, the average value of the revenue/cash cost is 8.08, profit/total costs is 2.31, net income/cash costs is 7.08, and profit /revenue is 0.37. Factors affecting the profits of extensive mud crab farmers consist of three influencing factors: Area, crab/total crab ratio, and farmers in Kien Giang Province. Additionally, the number of years of farming experience has an influence, but its impact is not statistically significant

ASSESSING PROFITABILITY TRENDS: A COMPARATIVE ANALYSIS OF LEADING SUGAR FIRMS IN INDIA

The sugar industry plays a crucial role in the Indian economy, impacting multiple sectors and contributing significantly to the nation’s socio-economic fabric. This research, titled "A Profitability Analysis of Leading Sugar Firms in India," focuses on evaluating the financial performance of three major sugar companies over a five-year period, from 2018-19 to 2022-23. The primary objectives of this study are twofold: first, to assess the profitability indicators of the chosen sugar firms, and second, to compare these profitability metrics across the selected companies. The study examines a representative sample of leading firms in the Indian sugar industry: EID Parry (India) Ltd, Shree Renuka Sugars Ltd, and Balrampur Chini Mills Ltd. These companies are chosen to reflect a broad spectrum of the industry. By analysing critical financial metrics such as the PBDIT (Profit Before Depreciation, Interest, and Taxes) margin, Net Profit Margin (%), and Return on Assets (%), the research seeks to offer a comprehensive view of each firm's financial health, operational efficiency, and market competitiveness. The insights gained from this analysis are intended to benefit various stakeholders, including policymakers, investors, and industry leaders. Understanding the financial performance and strategic positioning of these leading sugar firms can aid in informed decision-making, strategic planning, and policy formulation within the sugar sector. This study aims to shed light on how these key players contribute to the Indian economy and help drive better financial and strategic decisions in the industry.

Blockchain and sustainable finance: Enhancing transparency and efficiency in green investments

The study aimed to analyse the possibilities of using blockchain technology to increase transparency and efficiency in sustainable finance. The application of blockchain technologies and environmental and social practices in the context of sustainable finance was analysed, emphasising implementation and prospects in Kyrgyzstan. Blockchain, as an innovative decentralised data recording technology, provides a high level of security, transparency and immutability, which renders it particularly valuable for the financial sector. The study highlighted how blockchain can improve international transfer processes, increase the transparency of financial transactions and simplify the management of smart contracts, and noted existing challenges such as scalability and legal issues. The role of blockchain technologies in sustainable finance, especially in the field of green investments, was highlighted as an important aspect of the study. The introduction of blockchain in areas such as green project financing and social initiative management can help increase investor confidence and improve investment performance. Financial technology is also central in shaping new approaches to finance and investment, facilitating access to capital through crowdfunding and person-to-person (P2P) lending platforms. The introduction of environmental and social practices in financial institutions of the Kyrgyz Republic demonstrates the growing attention to corporate responsibility and sustainable development, despite the initial stage of their implementation. On international stage, successful projects such as the use of blockchain to track supply chains, green bonds and carbon credit management demonstrate the potential of technology to improve the transparency and efficiency of sustainable finance. These examples can be used by Kyrgyzstan in developing and implementing domestic blockchain and environmental and social initiatives, contributing to more sustainable economic growth and attracting international investment

Multispecies Portfolios of U.S. Marine Fisheries: Ecosystem‐Based Fisheries Management Reduces Economic Risk

Fisheries management has focused on single stocks, not directly accounting for species interactions, and usually only considering economic factors in post hoc analysis. This approach has been successfully applied for many species over many years, but may also inadvertently result in greater risks being incurred. We demonstrate a portfolio optimization approach to inform a broader set of fishery concerns as a way to emphasize species interactions and economic considerations in resource management decision making. The approach can use readily available data on landings and revenue to generate easily digestible indicators of risk, namely the risk gap (i.e., the difference between actual and optimal portfolio values). Herein, we calculate portfolio efficiency frontiers that minimize risk for target revenue outcomes and resulting risk gaps for commercial fisheries using the top 25 landed‐value species in six U.S. fisheries regions. Most regions exhibited a risk gap on the order of US$20–50 million, collectively on average over $250 million. Risk gaps can be used as ecosystem‐level indicators to inform managers of the unnecessary risk being assumed for a given level of revenue for a portfolio of fisheries stocks, which can move us towards operational ecosystem‐based fisheries management.

Financial Performance Evaluation Using Profitability and Liquidity Ratio Analysis

A company's financial performance is an important indicator used to assess the financial health and operational efficiency of a business entity. In the context of PT Rig Tenders Indonesia Tbk, the consolidated financial statements as of March 31, 2024 showed an increase in current assets to IDR 330.44 billion from IDR 263.97 billion in the previous period. Although the company has recorded an increase in current assets and net profit, unstable global economic conditions can cause uncertainty in revenue and operating costs. This study uses a quantitative research design with a descriptive approach to evaluate the financial performance of PT Rig Tenders Indonesia Tbk through profitability and liquidity ratio analysis. The results of the study show that PT Rig Tenders Indonesia Tbk has good financial performance with high liquidity, significant profitability, and effective asset management. The company shows a strong ability to meet short-term obligations and generate profits from its assets and equity. A holistic and sustainable evaluation of financial performance is essential to maintain the stability and growth of the company in the future. The findings of this study provide important contributions both theoretically and practically in the field of financial management. Theoretically, this study enriches the literature on financial ratio analysis with a focus on the maritime industry. In practice, these findings offer solutions for companies in managing risk and improving operational efficiency through better asset management strategies and investment diversification. The limitation of this study lies in the use of financial data in one period that may not reflect long-term dynamics. For future research, it is recommended to examine financial data in a longer period and consider other external factors such as regulatory changes and global market conditions.

Enhancing financial reporting accuracy and compliance efficiency in legal firms through technological innovations

This review paper explores the transformative impact of technological innovations on financial reporting accuracy and compliance efficiency within legal firms. It examines the current challenges legal firms face in maintaining accurate financial records and adhering to regulatory requirements, highlighting issues such as manual errors, complex transactions, and evolving regulations. The paper delves into the roles of automation, artificial intelligence (AI), data analytics, and blockchain technology in addressing these challenges, demonstrating how these tools can enhance financial precision, transparency, and operational efficiency. Additionally, it discusses the future trends in regulatory technology (RegTech), integrated compliance management systems, and real-time monitoring and reporting, emphasizing their potential to streamline compliance processes further. Practical recommendations are provided for legal firms to adopt and integrate these emerging technologies successfully. The paper concludes by underscoring the critical importance of technological innovation in enhancing legal firms' financial and compliance capabilities, ensuring they remain competitive and compliant in a dynamic regulatory environment. Keywords: Financial Reporting, Compliance Efficiency, Legal Firms, Artificial Intelligence, Blockchain Technology, RegTech.

Links between technological innovation, financial efficiency and environmental quality using quantile regressions: The role of foreign direct investment, institutional quality and natural resources

Policymakers and academics are interested in identifying mechanisms that promote environmental sustainability due to their relationship with climate change. This research evaluates the channels that transmit the effect of technology and financial efficiency on environmental quality. The relationship is moderated by real production per capita, foreign direct investment, natural resource rents, and institutional quality in the context of the Environmental Kuznets Curve. The research covers the 1996–2021 period for a sample of 88 economies classified into three groups according to the World Bank Atlas Method. We use second-generation cointegration techniques with structural breaks and quantile regression models. The findings offer sufficient evidence to conclude that the impact of technology and financial efficiency on environmental quality is heterogeneous throughout the distribution. Our findings suggest that technology is more associated with maximizing production than mitigating or restoring environmental deterioration. A policy implication derived from our research is to encourage the generation of carbon-free technology and promote financial efficiency in upper-middle-income countries to achieve environmental sustainability.

Trends and Growth Patterns in Public Expenditure on Education: An Analytical Study in Telangana

As India's economy flourishes, the way the country allocates its resources is becoming increasingly crucial. One vital aspect is public spending on education, which is essential for nurturing human capital and driving economic growth. This study examines the trends and growth rates of public expenditure on education in Telangana from 2014 to 2021, shedding light on the financial priorities and efficiency of educational funding. The analysis reveals a mixed bag of trends and growth rates. While some states have made significant strides in increasing their educational expenditure, others have seen a decline. The data shows that the total budget allocation for education has grown steadily over the years, with some fluctuations. However, the percentage of expenditure relative to Gross State Domestic Product (GSDP) has been declining in many states. To better understand the relationship between total budget allocation and educational spending, regression analysis was employed. The results indicate a positive correlation between the two variables, suggesting that an increase in overall budget allocation is linked to increased spending on education. However, the relationship is not straightforward, with some states exhibiting high levels of expenditure despite lower budgets. The findings of this study have significant implications for policymakers and educators. They highlight the need for a more nuanced approach to educational funding, one that takes into account the diverse needs and priorities of different states. It also underscores the importance of monitoring and evaluating the effectiveness of educational programs and policies to ensure that resources are being used efficiently. In other words, India's policymakers must adopt a more targeted approach to educational funding, recognizing that every state has unique challenges and opportunities. By doing so, they can ensure that limited resources are allocated effectively to address the most pressing educational needs and drive long-term economic growth.

Analysis of The Effectiveness of the BukuWarung Application as a Financial Management Tool for MSMEs

Effective financial management is crucial for business success, especially amid the Industry 5.0 revolution, which has transformed production, management, and human-machine interactions. This era has introduced advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), robotics, and additive manufacturing into production environments, leading to significant changes in accounting practices. In Indonesia, SMEs, traditionally reliant on manual record-keeping, are encouraged to adopt digital applications to remain current. Consequently, various financial management applications have emerged, including BukuWarung, designed to streamline transaction recording and enhance financial management efficiency. This research aims to assess the effectiveness of BukuWarung as a financial management tool for SMEs. Utilizing a qualitative and descriptive approach, the study involved SMEs at SWK Lidah Wetan that use BukuWarung. Primary data were gathered through observation, interviews, and field documentation. Findings reveal that BukuWarung significantly aids SME financial management, particularly in billing, bookkeeping, cashier operations, inventory management, and transaction scheduling. Future research should explore the utilization of specific features within BukuWarung and their effects on SME financial management.

The Impact of Working Capital Management on Profitability of Small and Medium Enterprises: The Case of Wine-Producing Companies of Georgia

The present study is a critical analysis of Net Working Capital (NWC) management in a framework with the different categories of SMEs with respect to its impact on profitability, particularly on Net Profit and ROA. The research goes on to investigate how NWC influences the financial performance indicators in small and medium enterprises (SMEs), knowing that efficient management of working capital is the key to business sustainability and growth. The paper will show some nuanced insights into how working capital practices affect the bottom line and asset utilization efficiency ROA. By the comprehensive analytic approach, this research is meant to integrate methodologies previously applied both in Georgian and international contexts to outline a nuanced understanding of the dynamics in question. It will analyze NWC's ratio to total assets and the positive relationship with ROA, along with the relationship between NWC and Net Profit, thus presenting a complete picture of the financial health and operational efficiency of SMEs. The research is expected to bear deep insight into the management of working capital, indicating how strategic financial planning plays a crucial role in enhancing the profitability of the company and asset utilization. These tailor-made recommendations will be a guiding light for the SME stakeholders in their endeavor to optimize their working capital practices as part of their aspiration to bolster financial outcomes. Augmenting knowledge already in circulation, this study becomes an implementable roadmap to practical financial decision-making, especially in the context of the myriad of SME sectors. The modified abstract captures the adapted research focus, showing the significance of NWC management in driving profitability and efficient asset utilization across SMEs. It sets grounds for a thorough analysis of the role of working capital in providing health and efficiency within finances and operations, giving valuable information and guidelines for small and medium businesses in the sphere of planning and managing strategic financials.

Effects of Political Instability on Financial Development in the West African Economic and Monetary Union Region

This paper analyses the effects of political instability on financial development in the West African Economic and Monetary Union region (WAEMU) countries. The results are obtained using the autoregressive staggered lag model (ARDL) over an analysis period from 2002 to 2021. The main reason for this analysis period is the availability of data. The results show that political instability reduces financial development by lowering financial efficiency. Moreover, inflation tends to increase the negative effects of political instability on financial development. On the other hand, the interest rate manages to mitigate the negative effects of political instability on financial development. The results therefore suggest that measures should be taken to mitigate the risks of political instability. Consequently, the results suggest the development of policies against rising inflation and for the revision of interest rates in order to influence the level of political instability and financial development. 

Comparative Analysis of the Level of Financial Efficiency in the National Construction Services Industry Before and After the Implementation of PSAK 72 with a Two-Stage Data Envelopment Analysis Approach

This study analyzes the financial efficiency of Indonesia's national construction services industry before and after the implementation of PSAK 72 using the Data Envelopment Analysis (DEA) method. It aims to address the poor performance of contractor companies, which have negative operating cash flows and high Debt to Equity Ratios (DER). Input variables include Net Fixed Assets, Operating Expenses, and Total Employees, while output variables are Revenue and Profit Before Tax. Efficiency scores range from 0 to 1, with scores close to 1 indicating high efficiency. Prior to PSAK 72, PP Presisi Tbk and Wijaya Karya Bangunan Gedung Tbk were the most efficient companies, consistently achieving perfect efficiency scores. Total Bangun Persada Tbk was the least efficient. After PSAK 72, Bukaka Teknik Utama Tbk reached maximum efficiency in 2021, while Brantas Abipraya (Persero) was the least efficient in 2020. A Kolmogorov-Smirnov normality test showed the data was not normally distributed, leading to a non-parametric Wilcoxon signed rank test. The test indicated a significant difference in financial efficiency before and after PSAK 72, with a p-value of 0.04. This suggests a notable impact of PSAK 72 on the efficiency of construction companies.