Financial Expertise Research Articles

Do regional characteristics influence PPP contract governance skills requirements?

PurposeThis study aims to seek, on the basis of Hofstede's culture consequences, to explore the notion that regional characteristics may influence the prioritisation of certain types of public-private partnerships (PPP) contract governance skills over others. It further sets out to determine which skills are considered the most critical between the groups of respondents surveyed.Design/methodology/approachTo bring this important and neglected perspective into the mainstream of PPP discussions, the study, being of an exploratory nature, relied on a survey of 340 respondents from around the globe. The respondents are a rich mix of public policy experts, economists, construction professionals, project finance experts, lawyers and academic researchers in PPP.s.FindingsAnalysis revealed that, regional characteristics was an important factor influencing skills prioritisation. Furthermore, exploratory factor analysis with Monte Carlo principal component analysis (PCA) confirmation revealed that project management, contract design, negotiations, performance management and stakeholder management skills were very critical for successful contract management of PPP projects.Practical implicationsThe findings indicate that the design and implementation of regulatory governance for infrastructure PPPs should be context-specific rather than the current one-size-fits all model. Training should be tailored to reflect regional specific characteristics.Originality/valueStudies are increasingly pointing to the absence of critical PPP skills among institutions responsible for managing PPP contracts. This lack of capacity has resulted in poor oversight of private companies providing public services resulting in poor services, and financial recklessness, which threaten the sustainability of service provision.

Characteristics of the Board of Commissioners, Financial Performance and Audit Quality on Earnings Management

Purpose: To examine the influence of Board of Commissioners Size, Independent Commissioners, Board Financial Expertise, Audit Committee Size, Audit Committee Independence, Audit Committee Basic Expertise in Finance and Accounting, Leverage, KAP Size, and Company Size. The Dependent Variable is Profit Management in manufacturing companies listed on the Indonesian Stock Exchange. Research Methodology: The samples used in this study were 73 manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2020 period, with a total of 219 samples. The analytical tool used to analyze the hypothesis is Eviews 10. Results: The results show that the size of the Board of Commissioners, Independent Commissioners, and Leverage have a positive effect on Earnings Management. The Board of Commissioners' Financial Expertise and KAP Size have no effect on Earnings Management. Audit Committee Size, Audit Committee Independence, Audit Committee Financial Expertise and Company Size have a negative effect on Profit Management. Limitations: This research sample uses manufacturing companies for the 2018-2020 period. Which is relatively small compared to the increase in years and other sectors. Contribution: This research has important implications for preventing or at least being able to detect financial statement manipulation by management which can result in reduced integrity of a financial report.

THE MOTIVATION OF THE LEARNER MANAGER IN TRANSPORTS AND LOGISTICS BUSINESS AND FINANCIAL LITERACY: EVIDENCE FROM PAKISTAN

On condition that there is atheoretical dialogue approximately the spirit of finance, managers and marketers, specifically, novices, revel in the need to gather practical and primary information on financial control. Financial expertise enables humans to experience extra dedication and concern in an employer. In our view, an executive does higher as soon as he knows how economic achievement is computed and in what way he affects the firm's overall performance. Herein example, we communicate approximately the financial literacy of a manager. The consequences of this research article monitor the impact of the non-public features of undergraduate college students on the performance of obtaining financial topics. Seventy-eight members were employed for current research from shipping and enterprise logistics programs and commercial enterprise management programs. The achievement of financial literacy among the student populace becomes studied via examining consequences for financial contents and the function of Achievement inspiration, its additives and highbrow competencies of learning managers, and transport and logistic managers for organizations. The consequences of this paper imply that striving for attainment is one of the leading motivational elements for achieving economic literacy and improving financial management talents.

Establishing a pharmacy revenue integrity team: A blueprint for increasing pharmacy's role in health-system revenue cycle.

An increasing focus on driving margin has pushed health-system pharmacy departments to find new ways of generating new or protecting existing revenue. At UNC Health, a dedicated pharmacy revenue integrity (PRI) team has been operating since 2017. This team has been able to significantly reduce revenue loss from denials, increase billing compliance, and improve revenue capture. This article provides a framework for establishing a PRI program and reports results generated from it. The activities of a PRI program can be grouped into 3 main pillars: minimizing revenue loss, optimizing revenue capture, and ensuring billing compliance. Minimizing revenue loss is accomplished primarily through management of pharmacy charge denials and can be an ideal first step in establishing a PRI program due to the tangible value generated. Optimizing revenue capture involves a combination of clinical expertise and understanding of billing operations to ensure medications are being billed and reimbursed appropriately. Finally, ensuring billing compliance, including ownership of the pharmacy charge description master and maintenance of electronic health record medication lists, is vital in preventing charge and reimbursement errors. Successfully bringing traditional revenue cycle functions into the department of pharmacy can be a daunting task but provides significant opportunities to create value for a health system. Key factors to the success of a PRI program include robust data access, hiring individuals with financial and pharmacy expertise into PRI positions, strong relationships with the existing revenue cycle teams, and a progressive model that allows for incremental expansion of services.

Postcapitalist Imaginaries of Finance: A Diverse-Economies Perspective on Equubs within the Ethiopian Diaspora in Germany

The essay presents an exploratory study of the equub, a form of community-based finance that is well-established in the Ethiopian diaspora in Germany. Equubs render visible the financial expertise developed in the majority world and its circulation in diasporic space. As such, equubs exemplify the power of People of African Descent in Germany to organize against financial exclusion. The essay draws on the theory of diverse economies and its method of reading for difference to analyze the characteristics of the equub as a nonmarket financial institution, showing its praxis of building community economies and its linkages to the diverse economy at large. Processes of decommodification, collective governance, and ethical decision making around financial needs politicize finance, making the equub an interesting case of a postcapitalist-finance imaginary.

Rural Poverty in India - A Study of Socio-Economic Political Factors

Poverty refers to a condition where a person is unable to meet even the basic needs of life. The minimum basic requirement is food, clothing, housing, education, health services, transport, communication, etc. According to the survey conducted in 2011-2012 (planning commission). In India, in 2011-2012, the proportion of people living below the poverty line is calculated to be 25.07% in rural areas, 13.7% in urban areas and 21.9% in the country as a whole. The Human Development Report defines poverty as the denial of opportunities “to live long, healthy, creative lives and to enjoy a decent standard of living with freedom, dignity, self-respect and respect for others. Poverty remains constant at about 30 percent of the population in India's provinces. The appearance of rural poverty has recently decreased somewhat due to the migration from the countryside to the big city for a very long time, but in fact the situation is alarming. Poverty is an economic condition in which people lack or lack certain goods necessary for human life, such as cash and material goods. Thus, need is a multifaceted idea that includes economic, social and political components. India's development model has certainly benefited financial experts, but we are still bombarded when we see that nearly 213 million Indians are constantly hungry. Modern developments and ever-increasing swelling do not pay for them. This requires addressing the causes of rural poverty and the anti-aid agenda and why India remains a helpless nation.

CEO Power, CEO Founder, CEO Financial Expertise, CEO Ownership, CEO Tenure on Bank Performance in Indonesia

The purpose of this research is to examine the influence of the personal characteristics of the chief executive officer (CEO) on the performance of commercial banks in Indonesia. In addition, it also analyzes the nonlinear relationship of CEO power, CEO founder, CEO financial expertise, CEO ownership, and CEO tenure to bank performance. A balanced panel data approach has been used in this study. In particular, fixed effect estimation techniques were used to examine the relationship between CEO power, CEO founder, CEO financial expertise, CEO ownership, CEO tenure, and bank performance from 2015 to 2021. so that the total amount of data processed is 3,780 data. The writer finds that the professional qualifications of CEOs are in bank performance. In addition, the impact of the CEO's financial expertise and tenure was positive and significant on performance. And the influence of CEO power, CEO founder, and CEO ownership was seen to be negative and not crucial to bank performance. CEO tenure is beneficial for bank performance. Experienced CEO contributes to higher bank performance. The results are robust across various bank performance proxies and control variables. This study provides insight into the policy regulators and policymakers entrusted with appointing CEOs in banks in light of the ongoing regulatory reforms in Indonesia. This study is one of the early studies examining the relationship between CEO power, CEO founding, CEO financial expertise, CEO ownership, CEO tenure, and bank performance from an emerging economy perspective. It also expands on existing studies to consider both state-owned and private banks operating in Indonesia.

The Effect of Audit Committee Characteristics and Length of Listing on Financial Distress with Intellectual Capital as a Moderation Variable in Property Companies

This study aims to determine the effect of audit committee characteristics on financial difficulties. The characteristics of the audit committee used in this study are the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing. This study uses a moderating variable, namely intellectual capital. The population in this study is 65 property and real estate companies listed on the Indonesia Stock Exchange in 2016-2020. Based on the purposive sampling method, the samples obtained were from 38 companies. Financial distress criteria in this study were measured using the Modified Altman Z-Score. Data analysis used logistic regression with the help of E-Views software. The results of this study indicate that the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing simultaneously significantly affect financial distress. The results of the partial test show that the frequency of audit committee meetings and the length of listing have a positive and significant effect on financial distress. The number of audit committees and the number of financial experts in the audit committee have no significant impact on financial distress. Intellectual Capital cannot moderate the relationship between the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing on financial distress. Keywords: financial distress, audit committee, altman z-score

CEO attributes, board independence, and real earnings management: Evidence from Nigeria

Motivated by agency conflicts of real earnings management and upper echelons in CEO demographic characteristics, this study examines the effect of CEO attributes on real earnings management and addresses the question of whether the presence of an independent board ensures accurate and reliable financial reporting practice. The study also examines the extent to which independent boards moderate the relationship between CEO attributes and real earnings management. Using a sample of 292 observations from Nigeria, an emerging market, from 2018 to 2021, a feasible generalized least square (FGLS) regression model was used to analyze the data. The authors also consider alternative measures of real earnings management. Our results demonstrate that CEO financial expertise, compensation, and CEO nationality reduce real earnings management and improve the financial reporting quality. Accordingly, the results show that independent directors on the board strengthen the CEO’s ability to reduce likely earnings manipulation. However, we find that the presence of a female CEO does not mitigate real earnings manipulation, but that the presence of independent directors enhances the ability of female CEOs to reduce earnings manipulation and produce reliable financial reports. Our results are robust and may have implications for regulators, shareholders, managers, and researchers because it shows that CEO attributes and the presence of independent directors on the board are associated with higher earnings quality.

Political connections and financial performance: the moderating role of director efficacy

PurposeFirm performance has become a thriving research field. However, a review of previous studies shows that the answers to several fundamental questions remain vague and require further investigation. Thus, the purpose of this study is twofold. The first is to determine the extent of the involvement of political connections (PCs) in Pakistani-listed companies, and the second is to examine the association between PCs and firm financial performance with director efficacy’s moderating role.Design/methodology/approachA data set of 221 non-financial companies listed on the Pakistan Stock Exchange for 10 years (2008–2017) was analysed using panel-corrected standard error regression. Additionally, the authors address endogeneity issue by using Hackman two-stage estimation and lagged variables regression.FindingsThe study found that PCs negatively affected the firm’s financial performance, and director efficacy as a moderator strengthened this relationship. The result is consistent with the political economy theory that argues that an unstable political system and a weak judicial system will strongly affect investors and their rights.Practical implicationsThe impact of political influence on the corporate sector remains a concern for policymakers, regulators, investors, financial experts, auditors and academic researchers. This study’s findings are that an effective board of directors can strengthen the company’s best practices by controlling political connectedness to protect all the interested parties, particularly investors, and restore their confidence. Therefore, the results of this study can assist all stakeholders when a PCs exists to make the right decisions.Originality/valueThe study extends the literature in terms of theoretical contribution that uses an integrative approach to combine political economy theory, agency theory and resource dependence theory to address the moderating role of director efficacy with an association between PCs and firm financial performance. To the best of the authors’ knowledge, no extant research has investigated the association between PCs and firm financial performance using five aspects of PCs, along with moderator director efficacy.

Gender pay gap in American CFOs: Theory and evidence

Studies document persistent unexplained gender-based wage gap in labor markets. At the executive level, where skill and education are similar, career interruptions and differences in risk preferences primarily explain the extant gender-based pay gap. This study focuses on CFO compensation contracts of Execucomp firms (1992–2020) and finds no gender-based pay gap. This paper offers several explanations for this phenomenon, such as novel evidence on the risk preferences of females with financial expertise and changes in the social and regulatory climate.

Approach to Applying Sufficiency Economy Philosophy in Community Enterprise Management towards Sustainability

Sustainability is essential for every business and organization, but how can it be achieved? This work is a study of sustainability based on the sufficiency economy philosophy, a valuable concept introduced by the Thai people. We apply it to the notion of sustainability in 400 agricultural community enterprise owners in Thailand, who participated in this study. An oblique rotation component analysis was performed, finding that the variables on the same side are related, and a confirmative component analysis with structural equation models was conducted. The results showed that the approach to applying the sufficiency economy philosophy among community enterprises consists of 11 components, as follows: (1) financial control, (2) planning, (3) member management, (4) morals, (5) prevention plan, (6) moderation, (7) knowledge and expertise, (8) market development, (9) care, (10) quality control and (11) value of investment. The confirmative component analysis with structural equation modeling was consistent with the empirical data. Agricultural community enterprises and entrepreneurs focus on the moral component, conduct business with honesty to avoid causing problems for others, value justice without taking advantage with diligence and adhere to moral principles in life, because all of the above will lead to sustainability in the future.

Which attributes of audit committees are most beneficial for European companies? Literature review and research recommendations

PurposeThis paper aims to review 68 archival studies on the impact of audit committees (ACs) on firms’ consequences [(non)financial reporting, performance and audit quality] in European firms.Design/methodology/approachApplying a stakeholder agency-theoretical framework, the author differentiates between three categories of AC variables: presence; composition; and resources, incentives and diligence.FindingsThe author finds that AC composition, (non)financial reporting and audit quality are dominant in the literature review. Other inputs or outputs are either too low in amount or yielded heterogeneous results, hindering clear tendencies. However, there are indications that financial expertise is positively related to financial reporting and audit quality, in line with agency theory and European regulatory assumptions.Research limitations/implicationsIn the discussion of potential future research, the author emphasizes, among others, the need for the recognition of innovative and sustainable AC variables, inclusion of moderator and especially mediator variables and reaction to endogeneity concerns by advanced regression models.Practical implicationsAs the European Commission currently discusses extended regulations on AC duties and composition, this literature review highlights the huge impact of financial expertise on financial reporting and audit quality. In view of the increased monitoring duties of sustainability reporting, both business practices and regulatory bodies should increase the sustainability expertise of ACs.Originality/valueThis analysis makes useful contributions to prior research by focusing on attributes of AC and their impact on firms’ outputs in the European capital market, based on a differentiation between mandatory one-tier/two-tier systems and the choice model. The findings support the promotion of European evidence-based regulations, such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.

Board Refreshment: Like a Breath of Fresh Air

AbstractUsing a sample of firms listed on the S&P1500 index for the period 2006–2021, we develop a comprehensive board refreshment index to examine why firms refresh as well as to consider the effects of such changes on the monitoring efforts of the board. We measure refreshment as a within‐board measure of the changes in diversity based on gender, nationality, age, interlocks, classification, education level and financial expertise. We find that longer‐tenured boards with older directors are more likely to refresh. Better‐governed firms and more diverse boards are also more likely to seek refreshment. We find a positive relation between board refreshment and CEO turnover‐performance sensitivity, pay‐for‐performance sensitivity and pay‐for‐risk sensitivity. Thus, our findings suggest that board refreshment promotes more effective board monitoring as well as efficient managerial contracting. Analysing board refreshment addresses an important shortcoming in the board diversity literature by directly studying the dynamics of boards.

Preface: 2022 International Conference on Economics, Mathematical Finance and Risk Management (EMFRM 2022)

The 2022 International Conference on Economics, Mathematical Finance and Risk Management (EMFRM 2022) was successfully held online during December 30-31, 2022 in Dubai, United Arab Emirates. EMFRM 2022 aims to bring together innovative scholars and experts in economics, mathematical finance and risk management in a common forum. The main objective of the conference is to promote economics, mathematical finance and risk management and development activities, another objective is to facilitate the exchange of scientific information among researchers, developers, engineers, students and practitioners around the world. The conference will be held annually, making it an ideal platform for people to share views and experiences in these fields.
 We are confident that the participants benefited from the theoretical insights, practical knowledge and personal contacts that will help them to build a long-term and sustainable communication among researchers and practitioners in related scientific areas. EMFRM 2022 invited scholars and experts in these fields from various universities to participate in the review and guidance of this conference. The conference focuses on the latest research fields, aims to provide an international cooperation and exchange platform for experts, scholars and business managers to share their research achievements. This collection of proceedings compiles oral and paper presentations submitted by the authors and scrutinized by the special committee.
 EMFRM Organizing Committees
 Dubai, United Arab Emirates

Audit Committee’s Characteristics and the Cost of Debt

Abstract Objective This paper examines the association between audit committee characteristics and the cost of debt, with the aim of gaining new insights on how this corporate governance mechanism contributes to the reduction of debt costs. Methodology Using a sample of FTSE 100 companies listed in 2018 and 2019, our study investigates how audit composition and characteristics, such as financial and industry expertise, gender, tenure and diligence affect audit committees’ oversight role, and therefore the impact on the companies’ level of risk and the cost of debt. Findings The results show that overall audit committee’s characteristics do not impact the corporate cost of debt, except for the gender of the audit committee’s chair. Companies with audit committees managed by a chairwoman experience a lower cost of debt. The results also confirm that external auditors influence the cost of debt. As additional test, we conducted a principal component analysis to construct a corporate governance index of audit committee´s characteristics, and we obtained similar results. Overall, the study results seem to suggest that the cost of debt is more significantly influenced by external auditors than by the characteristics of the audit committee. Value Added This paper contributes to the literature on corporate governance by showing how audit committees characteristics affect the cost of debt. Recommendations This study improves the understanding of the way debtholders may assess audit committee’s characteristics and auditors when assessing companies’ financial risk and the corporate cost of debt.

Employability for Students and Early-Stage Researchers

No AccessEmployability for Students and Early-Stage ResearchersCeleste Luciano, Tiberiu Nica, Nikola Ranković, Karin Widmann, Gabriel ZvîncăCeleste Luciano University of Lund Sweden is a student, activist and geopolitical writer, currently enrolled in International Development and Management at the University of Lund. She has collaborated with different NGOs, both at the local and global level, as well as with magazines. Before interning in the WFP, she graduated in International Relations. Committed to volunteering, policy analysis and project management, her research focuses on sustainable growth, poverty reduction and equality.Search for more papers by this author, Tiberiu Nicais a project manager and training officer currently working at the crossroads of education, research, and public service. With years of first-hand experience in learning and development, social work, and intercultural management, as well as over five years of experience working in an EU affairs think tank, he has day-to-day work experience in coordinating EU-financed projects.Search for more papers by this author, Nikola Rankovićis a final-year student at LSE double-degree in Economics and Finance. Apart from his focus and expertise in banking and finance, he has developed a keen interest in various activities, ranging from summer schools in public policymaking, EU visions, business management, and ECPD, to participation in academic research in labour economics, education, and astronomy.Search for more papers by this author, Karin Widmann Andrássy University Budapest Hungary BSc; is a student of International Relations at Andrássy University Budapest, enrolled on the double master’s degree in International Economics and Business with the University of Bamberg. She is a scholarship holder of the German Academic Exchange Service and the Higher Education Scholarship of the Hungarian State working on policies that ensure everyone has the financial education they need to determine their own path in life.Search for more papers by this author, Gabriel Zvîncă Babeș-Bolyai University Romania MA; is a PhD student at Babeș-Bolyai University, in Cluj-Napoca, Romania and the Youth Delegate of Romania at the United Nations. His interests are focused on the study of diplomacy, contemporary history, geopolitics, and international relations, with a particular focus on international organizations and the United Nations peacekeeping mechanism.Search for more papers by this authorPublished Online:Feb 2023SectionsPDF/EPUB ToolsAdd to favoritesDownload CitationsTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail About Previous article Next article FiguresReferencesRelatedDetails Download book coverVolume 63Issue 1-2February 2023 ISSN: 0012-5415eISSN: 2307-289XHistoryPublished online:February 2023 PDF download

SVINnovation Challenge: Fostering Innovation in Vascular and Interventional Neurology

SVINnovation Challenge: Fostering Innovation in Vascular and Interventional Neurology

A Balkan Neofunctional Success Story or the Curious Case of Bosnia’s Central Bank

Bosnians show little faith in their state-level institutions, and with good reason, as the country ranks poorly on measures of corruption, regulatory quality, and government efficacy. However, the Central Bank of Bosnia and Herzegovina (CBBH) is a notable exception. In a country where the state is still often paralyzed by ethnically aligned obstructionism, the Central Bank is widely lauded as an effective state-level institution, and it backstops, and oversees, a stable, trusted, pan-Bosnian banking system. To explain the Bank’s success, we draw on rational choice and institutionalist literature to propose and test a theory of the “CBBH as referee” in its three main functional areas: currency board maintenance, payment system operation, and the coordination of banking supervision. We find evidence for this mechanism in the context of currency board operations, and we also document a Haas-ian neofunctional process, in which the Bank has interacted cyclically with foreign banks to unintentionally de-ethnicize the Bosnian financial sector. Initial Bank reforms facilitated foreign banks’ market entry, and their subsequent lack of interest in hewing to prior ethnic divisions served to cement a unified Bosnian financial space. We substantiate this argument with data drawn from interactive interviews with Bosnian policymakers, financial sector experts, and banking sector participants, and in so doing, also show how the commercial behavior of transnational actors can have unexpected policy impacts.

Mergers and acquisitions research in finance and accounting: Past, present, and future

AbstractThis study presents an analysis of publication patterns and major themes in research on mergers and acquisitions in finance and accounting. We find that takeovers as mechanisms of governance, drivers of mergers, mechanisms of mergers, bank mergers, cross‐border mergers, shareholder wealth effects of mergers and related events, and the role of financial experts and ownership structure form major themes of research in the finance area, while in accounting area major themes are corporate governance and accounting outcomes, predicting takeovers and their outcomes, valuation, financial reporting and takeover decisions, and financial reporting and performance.