Financial Aspects Research Articles

The power of institutional investors: empirical evidence on their role in investment in internal audit function

PurposeInstitutional investors are major shareholders in publicly traded firms and play crucial roles in the financial and governance aspects of these firms. Despite their importance, little is known about their role in internal auditing. This study aims to fill this gap by investigating the relationship between institutional investors’ ownership and investment in the internal audit function (IAF).Design/methodology/approachThe study uses ordinary least squares regressions with two-way cluster-robust standard errors (firm and year) to estimate the relationship between institutional investors’ ownership and investment in IAF for Malaysian listed firms between 2009 and 2020.FindingsThe findings show that companies with higher levels of institutional ownership invest more in IAF, suggesting that institutional investors can effectively monitor managers due to their large holdings. Moreover, both transient and dedicated institutional investors are more likely to invest in IAF.Originality/valueThe results highlight the importance of institutional investors as a significant determinant of investment in IAF, which can aid regulators and managers in understanding the institutional investors’ role in governing and optimizing the efficient use of a firm’s resources. The findings also provide insight into institutional investors’ behavior regarding monitoring systems, which may inspire regulators and policymakers to consider increasing institutional investors’ participation to enhance governance structures.

Economic Philosophy as the Existence of the 5.0 Era Development in Sharia and Conventional Banking

With digital transformation and progress in technology, the 5.0 era has a huge impact on the industry of Islamic and conventional banking. Understanding the existence of Islamic and conventional banking in the 5.0 era relies heavily on economic philosophy. This study aims to understand the role of economic philosophy in maintaining and developing Islamic and conventional banking in the 5.0 era. This study used a descriptive analysis approach, and the data were collected from literature and other relevant sources. Conventional banking, on the other hand, relies on the philosophy of economy neoclassical, which focuses on the development products and services. Islamic and conventional banking are influenced by progress technology and digital transformation in the 5.0 era. Application mobile banking, digital payments, data analytics, artificial intelligence, and blockchain technology are several examples of very important technology or facing challenges and exploiting opportunities in this era. However, in the era of 5.0, economic philosophy is also challenging to apply in Islamic and conventional banking. Conventional banking can notice the difference between the social and financial aspects, but Sharia banking must consider current principles to integrate technology. Sharia and conventional banking need to keep going and develop relevant digital products and services, strengthen regulation and supervision, and guarantee security and privacy of customer’s information. Research results show that good Sharia banking as well conventional are based on economic philosophy. Islamic banking relies on philosophy of Islamic economics, which focuses on principles like prohibition of usury, justice, and sustainable environment.
 Keywords: philosophy, economics, Sharia, conventional

Manajemen Aset dan Liabilitas dalam Bank Syariah: Analisis Komprehensif Institusi Keuangan Berprinsip Syariah

The Islamic banking industry in Indonesia, since the establishment of Bank Muamalat Indonesia in 1991, has experienced rapid growth, reaching its peak in 2019. This growth is evident not only in financial aspects but also involves a broader performance assessment, including Sharia principles and organizational governance. The assets of Islamic banks have achieved remarkable milestones, strengthening Indonesia's position as a key player in the global Islamic banking arena. New approaches such as the Sharia Maqhasid Index (SMI) highlight the attainment of Sharia goals, while fund management and the phenomenon of mergers between BRIS, Mandiri Syariah, and BNI Syariah forming Bank Syariah Indonesia (BSI) underscore the urgency of assessing asset liability management in the context of sustainability in Indonesia's Islamic banking sector.

FINANCIAL CHALLENGES OF TRANSFORMATION PERIOD ECONOMIC AGENTS: LESSONS FROM PRACTICE

INTRODUCTION. The relevance of this study lies in the necessity to examine the financial aspects of business entities operating in a period of transformation, precipitated by the ongoing military conflict that began in 2022. Given this critical context, along with global challenges related to COVID-19, understanding financial challenges becomes pertinent for developing more resilient and effective strategies for enterprise management and the economy in these conditions.
 RESEARCH HYPOTHESIS: The research hypothesis posits that business entities operating in conditions of economic transformation induced by a military conflict are learning from practice and developing strategies to address financial challenges.
 The aim of the research is to analyze the financial challenges faced by business entities in the context of economic transformations resulting from a military conflict, with the goal of deriving valuable learning insights.
 METHODS. The following methods were employed for the research: statistical data analysis, comparative analysis, retrospective analysis, data analysis using the "Maddison Project Database" of the University of Groningen, literature review.
 FINDINGS. In the course of the research, it was found that Ukraine suffered significant losses in its real GDP and industrial production during the military conflict, and these losses proved to be substantial even when compared to other countries that experienced wartime events. The decline in real GDP in 2022 amounted to 29.2%, while industrial production decreased by 38%. The results also underscore the necessity of studying and implementing strategies to support economic recovery in the context of armed conflict.
 CONCLUSION. The research has confirmed significant losses in Ukraine's real GDP and industrial production during a prolonged military conflict. These results highlight the importance of developing and implementing comprehensive strategies to support economic recovery in the context of armed conflict. For future research, potential directions could include further analysis of the impact of the military conflict on various economic sectors, the study of the effectiveness of implemented recovery programs and their influence on economic resilience, as well as an examination of best practices from other countries in addressing similar financial challenges following wartime conflicts.
 KEYWORDS: military conflict; real GDP losses; economic recovery support; financial challenges of economic entities.

Multi-objective optimization of a cogeneration system based on solar energy for clean hydrogen, cooling, and electricity production

In an effort to encourage industries to switch from fossil fuels to renewable energy resources for supplying their energy demands, the exergy and financial aspects of a thermodynamic energy generation system were studied. The suggested system was modeled by MATLAB commercial software to assess the decision-making parameters affecting power generation, cooling capacity, and to produce hydrogen. The objective functions of this study were exergy efficiency and cost rate, while the temperatures at the inlet of the turbine and the evaporator, irradiated solar energy, mass flow rate, and surface area of the collector were the decision-making variables. The model was optimized via MOPSO and its results were compared with two widely utilized algorithms, namely NSGA-II and SPEA-II. The comparison results indicated that MOPSO surpassed other two optimization algorithm resulting in exergy efficiency and cost rate of 2.11 % and 21.14 $/h, respectively. According to this method, the optimum generated power was equal to 21.01 kW. Eventually, this system was utilized and evaluated in the city of Semnan, Iran. The performance results of the system in Semnan showed that the annual power output, taking into account the changes in radiation and ambient temperature, is between 316667.4 and 428080.5 kW. Also, the amount of hydrogen production is between 1503.66 and 1534.997 kg.

Editorial: Enabling technologies and business models for energy communities

This Research Topic on “Enabling Technologies and Business Models for Energy Communities” presents a comprehensive exploration of critical facets in the realm of sustainable energy transitions. The Research Topic encompasses diverse topics, ranging from smart energy frameworks for urban communities and off-grid renewable energy deployment in Mexico to the impact of institutional support on the coalbed methane industry. It further investigates complex grid investment decisions, solar-based irrigation adoption in water-scarce regions, and risk management in power supply projects. Additionally, the Research Topic delves into financial aspects, exploring the pricing of Public-Private Partnership (PPP) project Asset-backed Securities (ABS) products, the impact of managerial competence on corporate carbon performance, and equity-based predictions for the energy industry. The influence of innovation on fossil fuel abandonment in low and middle-income countries and the significance of climate risk for green innovation in heavy-polluting industries are also examined. A regional perspective is provided on the technological convergence of hydrogen energy, and the interplay between renewable energy, Gross Domestic Product (GDP), and CO2 emissions in highly-globalized countries is scrutinized. Lastly, the effects of green credit policy on the risk of stocks prices crash are investigated. Together, these contributions offer a holistic understanding of the challenges and opportunities in enabling technologies and business models for energy communities, contributing valuable insights for researchers, policymakers, and industry stakeholders striving for a sustainable energy future.

Halal In The Contemporary Economic And Business Ecosystem

The increase in population will certainly increase the demand for halal products and services significantly. With this achievement where Indonesia is in the top five with a strong Islamic economic ecosystem and supported by a majority Muslim population, Indonesia can become a leading country in all sectors in the country's halal industry (Nasution, 2020).The Islamic economic ecosystem in Indonesia continues to grow which includes the existence of UMKM that can become producers of halal products, Islamic finance which is marked by the growing contribution of Islamic entities, both Islamic financial institutions and Islamic non-financial institutions, innovations in technology, and related regulations with the halal industry. Indonesia is the first place for consumers of halal food products in the world. Indonesia is the country with the largest Muslim population, reaching 209.1 million people or 87.2 percent of the total population of Indonesia (Mubarok & Imam, 2020). Objective: prevention of aspects of sharia obstacles in the financial aspect, MSME aspects, digitalization aspects, product quality, and regulatory aspects in realizing the strengthening of the halal industrial ecosystem? Indonesia, the world's most populous Muslim country, is a gold mine for the halal market with the potential to become not only a major market but also a major producer of halal products. Islamic finance in Indonesia has developed more than the banking sector, but also non-banking products have featured in baitul mal wa tamwil (community-based Islamic financial institutions), Islamic insurance, Islamic microfinancing, Islamic pawnshops and Islamic venture capital. The Islamic banking service has almost all complied with sharia principles as most Islamic banking products are dominated by murabahah (sales contracts). There is still a small number of Islamic banks in Indonesia which causes Islamic banks to not reach remote areas (Samsul, 2022). There is still a lack of Sharia banking education for the "lower class" people who incidentally play an important role in the UMKM sector Islamic banks are less active in financing. This can be seen from the still-difficult process of managing and applying for financing in Islamic banks. Aspects of Islamic Financial Innovation (Sharia Bank) Towards Competitive Advantage The role of Islamic banking is to become a reference through strategies and policies related to financing that will be channelled to consumers. Likewise, socialization for UMKM entrepreneurs, especially those engaged in the halal industry, both goods and services. Islamic bank strategy to enter the village as a place that has the potential to become halal tourism: Islamic banks must optimize internal and external resources. Finally, through a branchless banking system UMKM & Halal Industry in the Digital Economy Era, Challenges and Obstacles to UMKM Aspects in Strengthening the Halal Industry Ecosystem. Lack of understanding so that this is not optimal and has not been able to become a superior product in the midst of society.

Financial Crime Scripting: an Analytical Method to Generate, Organise and Systematise Knowledge on the Financial Aspects of Profit-Driven Crime

AbstractThis article presents a further development of the existing crime scripting framework to enhance insight in the financial aspects of profit-driven crime: financial crime scripting. By drawing on the foundations of crime script analysis, financial crime scripting allows to generate, organise and systematise knowledge about the financial aspects of the crime commission processes of a variety of crime types, and accounts for linking the dots with financial crimes, such as bribery, bankruptcy fraud and money laundering. Viewing these financial crimes as supporting or succeeding offences in light of profit-driven crimes, and at the same time providing guidance to analyse these offences as profit-driven crimes in itself, opens the door for detailed analyses without losing sight of the bigger picture, i.e., the interconnectedness with other crimes. This analytical method helps crime researchers to take into account the financial aspects of crime-commission processes in crime script analyses and could help law enforcement agencies and other crime prevention partners to go beyond a proceeds-of-crime approach and put a follow-the-money approach in practice. Financial crime scripting takes full account of the financial aspects of profit-driven crime and puts relevant concepts in broader perspective, enhancing understanding with conceptual clarity. In addition to outlining the framework, the relevance for policy and practice is unravelled and avenues for future research are discussed.

Financial Technology: An Overview on Shariah and Legal Implication

Technological progress affects many things and practices in today’s life. In addition to the occurrence of the COVID-19 pandemic, it leads to a more open and almost comprehensive use of technology. This effect also occurs in the financial aspect. The emergence of various forms of technology-based transactions also has implications for legislation and sharia. This study was conducted qualitatively through the analysis of literature and legal sources from selected countries such as Malaysia and Indonesia. The study found that there is a law that has been drafted to regulate this aspect as well as a fatwa issued to lay the foundation for this transaction from a contractual point of view according to the Syariah perspective. However, further research still needs to be done considering that various forms of innovation involve transactions that have taken place and each of them requires clarification from a legal point of view as well as jurisprudence adaptation.
 Keywords: financial technology, Shariah, legal, implication

Wakaf dan Dasar Hukum Wakaf

Waqf is one of the people's economic instruments that can be used to empower the people's economy. If used effectively, waqf and other Islamic financial mechanisms such as zakat can be used to improve people's lives. In this way, waqf can be a source of support for the social, economic and religious needs of society. This research was conducted using a descriptive method with a qualitative approach based on data sources from literature studies and observations. The aim of this research is to provide information related to waqf and its legal basis. The research results show that Waqf needs to be developed in a more productive direction, so that it does not undermine aspects of operational financing and administration of waqf assets. On the contrary, it provides multiple benefits to society. The legal basis for waqf is in the Al-Qur'an surah Al-Hajj: 7, Ali Imran: 92, and Al-Baqarah: 291. Meanwhile, the Sunnah of the Prophet is in the famous hadith when Umar donated a piece of land in Khaibar. The various types of waqf are divided into 3 parts, namely waqf based on purpose, based on time limits, and based on use. There are pillars of waqf, namely waqif, Mauquf bih, Mauquf 'alaih, and Sighat. BWI (Indonesian Waqf Board) was formed in order to advance waqf in Indonesia.

An Empirical Analysis on the Feasibility of Financial Valuation of Technology Companies: A Fundamental Analysis Approach Based on Value Investing

This study addresses the significant challenge of accurately valuing internet companies in the contemporary business landscape, recognizing existing research gaps due to the limited applicability of conventional valuation methods such as Net Present Value (NPV) and Price to Earnings (PE) ratios in this emergent industry. This paper conducted a fundamental analysis based on the principles of value investing, utilizing 2022 financial data from thirteen internet companies listed in Forbes Global Technology companies. Key financial aspects, including liquidity, debt-servicing capacity, profitability, and shareholder returns, were meticulously analyzed. The findings reveal that internet companies face cash flow pressures impacting their liquidity. Despite a moderate long-term debt ratio, companies exhibit substantial reliance on debt financing, encountering difficulties in interest payments. While these firms demonstrate a capacity for profitability, they concurrently face intense competition and cost pressures. The market sentiment remains highly optimistic regarding the future prospects of internet companies, reflecting elevated valuations. In light of favorable market conditions, it is imperative for internet companies to strategically enhance competitive advantages, bolster core product competitiveness, and amplify profitability through innovative operational and marketing strategies, thereby augmenting their industry influence and societal impact.

Pelatihan Penganggaran Modal Kerja Berbasis Digital Untuk Komunitas UMKM dan Start-Up

Through web-based business applications, it helps start-up companies to reach their target markets more quickly and in a more organized manner, with a more efficient level of economic costs compared to using conventional consumer marketing methods which require higher levels of economic costs. However, more than 40% of SMEs and startup companies in Indonesia, both digital and non-digital based, experience financial failure and fail to maintain their business continuously, due to inefficient management of the financial aspects of the organization, which becomes an obstacle for business actors in planning and can also disrupt the level of continuity of the business. This is the background for the need for community service activities in order to improve the quality of financial inclusion, especially in terms of working capital management budgeting for mobile-based SMEs and startup companies.
 This community service activity was formed to expand knowledge regarding effective and efficient working capital management budgeting, where it is hoped that through this program, mobile-based SMEs and startup business actors will have the knowledge to know the financial strength of their business and can be used as a consideration in decisions and make the business run healthier in the future.

Pengaruh Literasi Keuangan dan Sikap Keuangan Terhadap Perilaku Pengelolaan Keuangan Mahasiswa Prodi Pendidikan Ekonomi Undiksha

The purpose of this study was to explore whether financial literacy and financial attitudes influence financial management behavior. This study used causal quantitative research. The population of this study is 338 students of the Economic Education Study Program, Faculty of Economics, Undiksha. The total number of samples in this study was 184 people obtained by random sampling technique. The types of data used include quantitative data, secondary data sources, and document data collection. Multiple linear regression analysis is a data analysis technique used. The results showed that (1) Financial literacy has a positive effect on financial management behavior. (2) Financial attitudes have a significant positive effect on financial management behavior. (3) Financial management literacy and financial management attitudes simultaneously have a positive impact on financial management behavior. The higher a person's financial literacy and ability to apply financial aspects, the wiser his financial management behavior will be to be able to make the right decisions in making financial decisions. The higher the level of awareness of financial attitudes, the more decisions are taken in financial management to avoid financial problems.

Feasibility Study of Business Development at Kibo Frizzy Snack

This study aims to analyze the feasibility of developing a business that will be carried out by Kibo Frizzy Snack. The method used in this research is descriptive qualitative. The results of the study show that in the legal aspect, the object is in the form of an individual company and has had a complete and legal permit. On the market and marketing aspects, there are promising opportunities in the future and the market has been wide open. In the technical and operational aspects, it has a well-systematic standard operating procedure and the outlet design layout is in accordance with the company's operational technicalities. In the aspect of organization and management, it has a simple organizational structure and a fairly good management function. In the economic and social aspects, it absorbs some of the workforce of the surrounding community, and helps the sub-culinary government's economic contribution. On the financial aspect, ROI 83%; BEP Q 263; BEP P Rp11,451.

Ophthalmology Practice-Related Factors and Patient Loyalty: Mediating Role of Patient Satisfaction.

In the current period, competition among the healthcare sector has increased and healthcare providers try to get loyalty and satisfy the patients by establishing different strategies. : This current study aims to discover ophthalmology practice-related factors and patient loyalty and to analyze the mediating role of patient satisfaction in private ophthalmology services in various private centers in the Kingdom of Saudi Arabia. : The nature of the study is quantitative, and data is collected with a questionnaire. We used a pre-tested questionnaire that was divided into different sections assessing ophthalmology practice-related factors, patient satisfaction, and patient loyalty. These were measured using a 5-point Likert scale, focusing on financial aspects, access to facilities, staff services, and ophthalmologist services. Further, the smartPLS technique was used to extract the results by using SmartPLS. : The analysis sample size consisted of 323 participants from Saudi Arabia. The results found that ophthalmologist service has a positive relationship with patient satisfaction (β= 0.369, p = 0.000) as well as patient loyalty (β= 0.234, p = 0.004), but there are some ophthalmology practice-related factors such as financial aspects, access and facilities, and staff service, which showed no relationship with patient loyalty but a positive relationship with patient satisfaction. Further analysis found that patient satisfaction as a mediator has a positive relationship between ophthalmology practice-related factors, namely, ophthalmologist service (β= 0.228, P= 0.000), financial aspects (β= 0.102, p = 0.019), access and facilities (β= 0.109, p =0.000), and staff service (β= 0.188, p = 0.000) with patient loyalty. : The present study findings reveal the importance of focused patient satisfaction improvements in enhancing patient loyalty within ophthalmological clinic settings in Saudi Arabia. Furthermore, we recommend future exploratory prospective research to find the satisfaction and loyalty factors that change over a period of time.

What Will Happen In The Future Of Sustainable Banking? A Link Prediction Bibliometric Analysis Approach

The transition from traditional banking to sustainable banking is a hot topic in banking industries that, besides the financial aspect, concentrates on three other aspects: ethical, environmental, and social banking. However, there has yet to be a study to predict the future of this field. This paper is one of the first studies utilizing link prediction for bibliometric analysis and is the first study focused on predicting the future of sustainable banking. We analyze the future of stainable banking by introducing and implementing the new concepts of future co-word analysis and future strategic diagrams. We found that the concentration on social and financial aspects will decrease, while the concentration on ethical and environmental aspects alongside the customer analysis approaches will increase. Indeed, ethical and environmental considerations and customer analysis will be changed into the motor themes of sustainable banking.

Utilization of Wood Waste for Boiler Fuel (Case Study at PT. Putra Albasia Mandiri)

The wood processing production system in its activities always produces waste in the form of husks or pieces of wood. The opportunity to control wood waste can be used to heat boilers as a substitute for fuel oil. This study on the use of wood waste was carried out to assess technical, economic and environmental aspects. An assessment of the technical aspect was carried out to see the efficiency of using wood waste compared to fuel oil. Financial aspects are an important consideration in utilizing wood waste, while environmental aspects. Studies show that diesel fuel consumption is higher than wood waste fuel consumption, however boiler efficiency is higher using oil fuel compared to wood waste fuel, namely 70%: 20%. Financial analysis using NPV shows that this wood waste fueled boiler is economically feasible. From environmental aspects, it is known that fuel consumption for one year for wood waste fuel produces CO2 emissions of 1,207.36 tons, which is lower than CO2 emissions from burning diesel which is 6,808.31 tons.

Евангелическо-лютеранская церковь Дании: социально-экономический и территориально-организационный аспекты

The study exemplifies the use of an institutional-territorial approach for a comprehensive description of a national denominational landscape. The article aims to provide such an account by analysing relevant official data and performing statistical processing using computational tools. The focus is on the Evangelical Lutheran Church of Denmark and its administrative-territorial structures. The study places emphasis on the financial aspect, one seldom discussed in academic discourse. The denominational landscape of Denmark is a multicomponent system, with the National Lutheran Church holding a distinctive legal status as a dominant entity. Its historical and social significance, along with the ability to preserve functions that mirror those of the state, allow the Church of Denmark to maintain its civilisational and culture-building role for the populace, especially the indigenous one. However, Denmark is not exempt from the secular trends prevalent in the Nordic countries. One notable tendency is the decline in adherents of the Evangelical Lutheran Church observed over recent decades. This decline is most evident in the capital region, where the proportion of migrants in the population is higher and daily life is more vibrant than in other areas. Territorial variations in religiously motivated behaviour are evident, with the highest percentages observed in the country’s peripheral regions (despite the overall figures showing a negative trend). These areas also boast the most significant proportion of registered members of the Evangelical Lutheran Church. Exploring non-Christian religions in Denmark presents a promising avenue for future research.

“Green gold” - “Divine gift” – “The definition of family”: Perceptions and attitudes of domestic olive tourism visitors regarding the olive heritage in Greece

Despite the longstanding significance of olive heritage in Greece, research on olive tourism (OT) remains sparse. This study aims to explore the OT demand-side aspects of OT in Greece, by examining the perceptions and attitudes of domestic OT visitors. Qualitative interviews were conducted with a random sample of 55 predominantly domestic OT visitors from February to April 2023, as part of the Olive4All European project. The findings indicate that domestic OT visitors are highly educated, possessing substantial awareness of the olive’s multifaceted significance. Nonetheless, visits to olive sites markedly enhance visitors’ comprehension of the olive’s sociocultural, environmental and economic aspects, and are, therefore, highly appreciated. Consequently, olive sites should provide comprehensive educational content addressing these dimensions, emphasising environmental and financial aspects, as well as the lesser-known qualities of the olives/olive oil. This approach aligns with the expectations and needs of the knowledgeable domestic market, promotes special interest tourism, and ultimately contributes to safeguarding the olive heritage.

Workplace wellbeing in community pharmacy practice: A cross-sectional study in Can Tho, Vietnam.

Among pharmacy workers, low workplace wellbeing can lead to reduced effectiveness. However, to date, studies on this issue are limited within the community pharmacy setting in Vietnam. This study was conducted to identify the component aspects of workplace wellbeing and their associations with demographic characteristics. The cross-sectional descriptive study was conducted in Can Tho, Vietnam. Self-administered questionnaires were hand-delivered to all pharmacy workers working at selected community pharmacies. The workplace wellbeing scale comprised 18 items. In total, 382 pharmacy workers participated in this study. Factor analysis revealed three fundamental aspects to workplace wellbeing: Factor 1 - perceived self-worth and job satisfaction, Factor 2 - positive emotions with work, and Factor 3 - negative emotions with work. Factor 1 showed a positive correlation with Factor 2, with a correlation coefficient (ρ) of 0.509, while both Factor 1 (ρ = -0.399) and Factor 2 (ρ = -0.416) demonstrated negative correlations with Factor 3. Higher income was associated with higher positive emotions with work (P = 0.008), higher perceived self-worth and job satisfaction (P = 0.013), and lower negative emotions with work (P < 0.001). Workplace wellbeing of pharmacy workers in their professional environments was associated with financial aspects. These findings suggest that policies aimed at improving income for pharmacy workers could bring benefits to enhancing job satisfaction and workplace wellbeing.