Financial Benefits Research Articles

Factors Influencing Generation Z Students in Banten Province to Use Sharia Mobile Banking in 2024

Generation Z, born in the digital era, has become increasingly reliant on mobile banking services for financial transactions. This shift in consumer behavior towards digital transactions is accelerating in Indonesia, particularly in Banten Province, where Sharia Banks are expanding their market penetration. The adoption of Islamic Mobile Banking is influenced by perceived ease, convenience, and benefits. The ease of access and financial benefits obtained are determining factors for customers to use the service. This research aims to explore the factors affecting Generation Z students' interest and behavior in using Sharia mobile banking services at Islamic Banks in Banten Province in 2024. The study uses a quantitative research method, focusing on all Generation Z customers of Islamic Banks in Banten Province. The sample size is 100 people, providing a fairly representative sample. The research aims to provide a deeper understanding of consumer preferences in Islamic finance and contribute to the development of Islamic banking services that are more in line with the needs of students in the region.

Climate Finance: Pioneering Pathways to Sustainability

Climate finance is a progressive financial tool to foster sustainability and address climate change mitigation and adaptation challenges. This study delineates the notion of climate finance and sustainability, illustrating their confluence and its impact on social welfare, ecological quality, and economic well-being. Climate financing involves distributing resources to environmentally sustainable enterprises and projects designed to harmonize economic growth with sustainability. Furthermore, developed nations have committed to offering financial assistance to developing nations to confront the problems presented by climate change. This paper aims to decode the confluence of climate finance and sustainability. Moreover, it underscores the significance of climate financing in tackling environmental issues, reaching carbon neutrality, and eventually realizing sustainable development. The finding indicates that climate finance is essential for addressing climate change and achieving sustainability, highlighting the significant role of developed nations and the private sector in closing the funding gap required for investments in climate-resilient projects and infrastructure. Consequently, this can generate possibilities for people and nations to earn carbon credits, which are tradable in carbon markets, thereby securing financial benefits.

The Economics of Capital Allocation in Firms: Evidence from Internal Capital Markets

We analyze a unique chief financial officer (CFO) survey data set to examine capital allocation in firms. Top management is aware of agency and information problems at the divisional level and organizes the budgeting process to counteract managerial opportunism, employing systems of interconnected measures, including layers of approval, divisional budgets, reporting requirements, and compensation schemes. When making funding decisions, top management relies heavily on top-level nonfinancial information, such as the assessment of divisional managers’ abilities. However, substantial parts of the capital budget do not require top management approval as firms trade off the benefits and costs of decentralization, thereby deviating from the traditional paradigm of decentralized project initiation but centralized project approval. Even firms with active internal capital markets tilt capital allocation toward relatively even distributions, reflecting the use of capital allocation as a credible communication device. We also find that within-firm agency problems may result in capital rationing, that is, divisions’ restricted access to internal capital. CFOs also believe that integrating multiple businesses into an internal capital market results in tangible financial benefits, predominantly lower costs of capital and higher debt capacities. Thus, our findings also support coinsurance arguments suggesting that internal capital markets may improve access to external financing. This paper was accepted by Victoria Ivashina, finance. Funding: This work was supported by the BBBank Karlsruhe, Wissenschaftsförderung der Sparkassen-Finanzgruppe, and Karlsruher Institut für Technologie (Karlsruhe House of Young Scientists). Publishing fees were supported by the “Funding Programme Open Access Publishing” of the University of Hohenheim. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2021.02755 .

The nature and benefits of partnerships between employers and training providers

ABSTRACT This paper reports on research investigating Australian employer-training provider partnerships through the examination of three features in-depth: the nature of partnerships, the perceived benefits for both parties and the attributes of successful partnerships. The research project used a mixed methods approach, with two online surveys, one of employers and the other of training providers, and a series of semi-structured interviews with employers and training providers who were in partnership with each other. Results from these sources showed variations in the nature of partnerships on several parameters, including the nature of the partnership, the coverage of training, and the training delivery. Variations also occurred by size (both of the training provider and of the employers) and between public and private training providers. Reported benefits included, for the employers, the opportunity to upskill employees, and the provision of flexible and customised training. For the training providers, benefits included the development of skills in their own staff, and the financial benefits from their partnerships. The latter were rarely great but helped to sustain their operations. The research extends previous work on the attributes of successful partnerships. Implications for policy and practice are discussed, and suggestions for further research are provided.

Experiences with Green Charcoal: A Gender Consideration of Rural and Urban Households in Gulu District

The study focused on the use of green charcoal, a sustainable cooking fuel made from agricultural residues, in Gulu District, to highlight the experiences households have encountered, from a gender perspective. The study followed a cross-sectional design using qualitative approach which included the use of one-on-one interviews, focus group discussions, key informant interviews, and ethnographic observations for data collection. The findings show that households in Gulu District use a combination of cooking fuels such as firewood, wood charcoal, green charcoal, or gas. Furthermore, the study established that there were cases where both men and women had shared experiences in cooking, for example, knowledge of the faster cooking rate, cleanliness, and much ash content involved while using green charcoal. However, to a larger extent, there were gendered differences in cooking activities: while women predominantly handle cooking, men often influence decisions about what and how to cook, revealing underlying gender and power dynamics within households. Key findings indicate that green charcoal is favored for its affordability relative to traditional black charcoal, prolonged burn time, and higher heat output, though it is also harder to light and produces more ash. It is particularly popular in rural Owoo Sub-County, where residents are more involved in its production compared to their urban counterparts in Gulu City. The study concluded that positive experiences with green charcoal have facilitated its adoption and recommends further actions to promote its use. These include increasing awareness of its environmental, health, and financial benefits, improving product quality, and involving women and girls as advocates to expand its utilization

Culture Suitability of Macrobrachium rude with Carp Polyculture in Bangladesh

The experiment assessed the production performance of Gura Chingri (Macrobrachium rude) in polyculture systems across different stocking densities over six months from February 2023 to July 2023. Three treatments (T1, T2, and T3), replicated three times each, were implemented, with varying stocking densities for Gura Chingri, Suborno Rui, Catla, and Silver carp. Following stocking, formulated feeds containing 28-30 % protein was administered, initially at 8% of biomass, gradually reduced to 3%. After six months, the highest mean final weights for individual Prawn (1.10±0.10) g, Suborno Rui (445.68±24.6) g, Catla (511.80±15.72) g, and Silver carp (560.15±13.26) g were recorded in the T2 treatment. Suborno Rui exhibited significantly lower growth performance in T1 compared to T2 and T3, while Chingri showed statistically significant higher growth performance in T2 compared to T1 and T3 (p < 0.05). The food conversion ratio (FCR) was significantly lowest in T2 (1.66) and highest in T1 (1.78) (p < 0.05). Additionally, the highest survival rates were observed in T2 for Prawn (62.21%) g, Suborno Rui (98.7%) g, Catla (98.5%) g, and Silver carp (99.82%) g. Based on these findings, carp polyculture can be an effective way for the farmers to achieve optimal production and financial benefits in Gura chingri culture. Further research is needed to develop consistant and environmentaly sustainable culture system of Gura chingri.

The financial benefits of health engagement programs to life insurers

Life insurance companies, as equity stakeholders in policyholders’ lives, have incentives to mitigate their health risks. I introduce a framework that enables life insurers to evaluate the financial viability of developing and implementing health engagement programs. By leveraging a proprietary big database of health and mortality information from a large U.S. life insurer, I use machine learning techniques to quantify the benefits and use a rational addiction model to calculate the costs associated with these programs. The estimated net benefit available to the life insurer from the smoking cessation program is USD 87 million and the aggregate benefit from including other chronic conditions is USD 872 million. I explore the broader application of this framework in a general health policy context.

Driving green: Financial benefits of carbon emission reduction in companies

This paper explores the relationship between carbon emissions reduction and corporate financial performance, leveraging a rich dataset of 14,866 observations from 2768 companies across 36 countries and regions, and 35 industries over the period 2002–2022. We find that carbon emissions reductions improve company financial performance, as measured by return on assets and return on equity, with this effect being even more pronounced for companies with higher carbon intensity. Additionally, country carbon regulations are positively associated with a company's financial performance, while higher ESG scores negatively impact it. Notably, we find no significant role for CSR reporting in driving financial gains. Overall, our findings suggest that companies can enhance financial performance by intensifying their carbon emission reduction efforts while also contributing to environmental stewardship. We recommend that businesses adopt tailored sustainability strategies that account for country, firm, and industry-specific factors to maximize these benefits across different regional and sectoral contexts.

Design analysis of a sustainable techno-economic hybrid renewable energy system: Application of solar and wind in Sigulu Island, Uganda

Sustainable energy is central to achieving the global Sustainable Development Goals (SDGs), particularly in electrifying underserved communities. This study examines Sigulu Island, which lacks grid electricity and relies on costly, polluting diesel generators. On-site assessments revealed a daily load demand of 1,455.705 kWh. This study designed and analyzed a Sustainable Techno-economic Hybrid Renewable Energy System (STHRES) combining solar photovoltaics and wind turbines, with battery backup, to meet the island's energy needs. The research adopted both qualitative and quantitative methods, gathering atmospheric weather conditions specific to Sigulu Island. Solar panels and wind turbines were identified as the most viable options, with the system incorporating 677 units of 1 kW solar panels and 27 units of 1 kW wind turbines, generating 839.97 kW and 640.08 kW daily, respectively. Additionally, 527 Li-ion batteries were used to store approximately 1480.05 kW of surplus energy demand to manage fluctuations capable of sustaining the island for 8 hours during a total blackout. The initial installation costs are estimated at $90,393.04 for solar PV, $27,729.82 for wind turbines, $159,169.81 for batteries, and $92,407.00 for the inverter. The STHRES is projected to save $56,917.93 annually, covering 15.4 % of the installation costs compared to diesel operations. Moreover, this system will reduce Uganda's carbon footprint by 436,035.6 kgCO₂ annually, equivalent to a 0.01 % reduction in national emissions. The proposed system decreases the Net Present Cost (NPC) from $426,617.60 to $369,699.67 and the Cost of Energy (COE) from $32.12/kWh to $ 27.79/kWh. With a 9 % Internal Rate of Return (IRR) and a 3 % Return on Investment (ROI), STHRES has a payback period of 8.2 years, demonstrating its financial and environmental benefits for Sigulu Island.

Thailand’s Kra Canal: economic feasibility and expert perspectives on its complexity

PurposeAsia is one of the most important economic regions of the world. The Kra Canal is considered as a potential maritime transportation node in global trade. Indeed, for centuries, a canal across the Kra isthmus in Thailand has been proposed as holding significant economic and logistical benefits through goods transfer and exchange, yet it remains unconstructed. Common tools in feasibility studies are PESTELE and SWOT analyses, which incorporate cost-benefit and value analyses. The purpose of this paper is to assess the feasibility of the Kra Canal using approaches to complement existing studies.Design/methodology/approachIn this paper, we combine quantitative and qualitative methodologies to holistically assess the feasibility of the Kra Canal. Quantitatively, we consider the economic feasibility of the canal using Net Present Value to evaluate its potential financial benefits. Qualitatively, we then present expert perspectives gathered from in-depth interviews with field experts (n = 20) to identify key aspects of complexity related to the economic, political and overall feasibility of the canal.FindingsWe discuss the possibility of the canal’s construction and describe possible future impacts the canal could have on the region geopolitically, for example, in its role in China’s One Belt One Road initiative and also in how Singapore and Tanjung Pelapas in Malaysia might react. Ultimately, we find significant complexities with the Kra Canal project, ones which anyone contemplating its construction would, we argue, be wise to consider.Originality/valueThis paper combined qualitative and quantitative methods to explore the economic, political and overall feasibility of the Kra Canal. The methodologies and findings supplement past relevant studies and help evaluate the economic, political and overall feasibility of the Kra Canal’s investment project. This is particularly timely considering its potential ability as a route given recent geopolitical events and, for example, as part of China’s Belt and Road initiative and its ability to reduce carbon and sulphur emissions.

Moral Hazard and the deposit insurance cap: a case study of Northern Rock and Silicon Valley Bank

ABSTRACT The main contention of this article is that government insurance for bank deposits should be unlimited. In spite of claims made in the literature concerning the moral hazard dangers of deposit insurance schemes, I argue that these claims are unconvincing; indeed, the empirical record - discussed here in relation to Northern Rock and SVB - demonstrates that uninsured depositors exhibit similar behaviour to their insured counterparts, undermining the claim that limiting insurance induces risk-monitoring. In contrast, there is strong evidence that in developed jurisdictions with established, mature regulatory institutions, deposit insurance does not result in excessive risk-taking on the part of banks. The significant financial stability benefits accruing to insuring bank deposits include the elimination of depositor runs, a reduction in the incentives for unregulated bank-like financial intermediation (shadow banking), and heightened competition. Activity restrictions and other measures can reduce any heightened risk-taking which emerges as a result of wider insurance coverage.

Financial Sustainability Above All Else? Drivers and Types of Pension Reform Recommendations in EU Socio‐economic Governance

AbstractThe average age of the population and the ratio of workers to pensioners in the European Union (EU) are rising, putting increasing pressure on the long‐term sustainability of pension systems. To counteract this development, a large number of pension reform recommendations (PRRs) have been issued within EU socio‐economic governance. In this article, we analyse the extent to which PRRs are consistent with the three main objectives of the open method of coordination (OMC), which emphasise (i) financial sustainability, (ii) benefit adequacy and (iii) modernisation with respect to gender equality. Using an original dataset, we code 438 PRRs from 2011 to 2023 and analyse the extent to which these are consistent with the three main objectives of the OMC. Our results show that PRRs are primarily focused on financial sustainability, to the detriment of adequacy and modernisation, and that they are driven solely by sustainability concerns.

THE STRATEGIC ROLE OF ENVIRONMENTAL ACCOUNTING IN PROMOTING BUSINESS SUSTAINABILITY IN INDONESIA

Environmental accounting is increasingly recognized as an important strategic instrument for organizations faced with sustainability challenges. This article investigates the utilization of environmental accounting in Indonesian companies, with a particular emphasis on how this practice can improve transparency, operational efficiency, and corporate reputation. Using document analysis methodology, the research examined related reports on sustainability, environmental policies, and government regulations. The results showed that companies implementing environmental accounting successfully achieved reductions in carbon emissions and waste, in addition to improving energy efficiency. In addition, the adoption of environmental accounting resulted in substantial financial benefits, including reduced operating expenditures. Nonetheless, barriers such as initial investment requirements and regulatory intricacies continue to pose challenges for many companies. Consequently, collaboration between government entities, private companies, and non-governmental organizations is essential to promote wider adoption of environmental accounting practices. This study sheds light on the importance of environmental accounting in fostering a more sustainable future for Indonesia.

Interdependence of halal entrepreneurship and Islamic finance for creating a strong halal ecosystem

Purpose Ethical entrepreneurship and financing models based on Islamic principles are insufficiently researched and discussed in the emerging plural economic landscape. So far, Islamic theorists have made commendable efforts in this direction. To fill the knowledge gaps, this study aims to explore more rigorously the interdependence of halal entrepreneurship and Islamic finance in creating a strong halal ecosystem. Design/methodology/approach Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, a systematic literature review (SLR) of 33 articles from 2001 to 2024 was conducted to answer three research questions. Publications were obtained using purposive sampling from the Scopus database. They were selected based on the ranking of high-quality journals, global coverage relevance to research and base years of publications. Findings Three key findings emerged from the SLR using the PRISMA protocol. First, halal entrepreneurship and Islamic finance complement each other by providing Shari’ah-compliant financial instruments, fostering ethical practices, enhancing market reach and ensuring business operations adhere to Islamic principles, thereby creating a cohesive halal ecosystem. Second, the strategic integration of halal entrepreneurship and Islamic finance – through innovation, sustainability practices, Shari’ah-compliant products, effective marketing and regulatory support – promotes economic growth, social welfare and sustainable development within the halal ecosystem. Third, Maqasid-ul Shari’ah principles guide halal entrepreneurship and Islamic finance by ensuring ethical standards, promoting social justice, emphasizing sustainability and ensuring that business and financial practices benefit society and adhere to Islamic ethical standards. These findings aid in developing a theoretically grounded conceptual framework for future empirical investigation. Practical implications Practically, policymakers, Islamic financial institutions and halal entrepreneurs can leverage this integrated approach to drive economic growth, social welfare and sustainable development, aligning operations with Maqasid-ul Shari’ah to ensure ethical standards and societal benefits. In addition, the findings aid in developing a theoretically grounded conceptual framework for future empirical investigation, both theoretically and methodologically. Originality/value Given the paucity of studies in this multidisciplinary area, this paper offers new insights into the interdependence of halal entrepreneurship and Islamic finance, grounded in the finance–growth nexus theory and Maqasid-ul Shari’ah principles. Unlike other exploratory studies, this research presents a theoretically grounded conceptual framework, paving the way for future empirical investigations.

When does it pay to be green? The strategic benefits of adoption speed

AbstractDoes the speed of adopting environmental practices impact financial benefits? The strategy literature discusses the contingencies under which firms can gain an early‐mover advantage or a late‐mover advantage. This research examines the effect of adoption speed on two types of environmental practices: environmental innovation practices (EIP) and environmental management practices (EMP). The results show that early adoption of EIP increases competitive advantage when firms face intense competition. In comparison, we show that early adoption of EMP increases competitive advantage when firms face extremely low competition or have moderate to high levels of slack resources. The study contributes to the literature by revealing the nuances, contingencies, and boundary conditions of when it pays to be green. Prior research shows mixed results when studying firms' decisions to implement environmental practices, which implies that it may not pay to be green. This study shows that firms can get an early mover advantage from environmental practices, but it depends on the type of environmental practices, the firm's internal slack resources, and the firm's external competitive environment.

PRESUMED CREDIT: CASE OF A TECHNOLOGY INDUSTRY IN SANTA CATARINA

This study aims to analyze the impact of the presumed credit of Tax on the Circulation of Goods and Services (ICMS) on a technology company located in the State of Santa Catarina, focusing on the year 2023. The presumed credit, granted by the state government according to RICMS/SC, aims to reduce the tax burden of companies in the sector, promoting technological and commercial development. This is a qualitative and descriptive approach, based on a case study of the company, analyzing financial documents such as balance sheets, ICMS declarations (DIME), and other accounting reports. The results show that, in 2023, the company obtained significant tax savings. Of the total recoverable ICMS on incoming goods, 13.61% were reversed, while 86.39% were used, resulting in a recovered credit of R$ 1,085,242.39. Regarding ICMS on outgoing goods, the presumed credit reduced the amount payable by 75.45%, generating savings of 92.12% in the total ICMS due to the state government. This allowed the company to allocate more resources to Research, Development and Innovation (RD&I) activities and market expansion. From this, it was possible to conclude that the presumed credit brought clear financial benefits to the company in the short term, encouraging innovation and expansion. However, the study highlights that, for more consistent and lasting results, tax incentives need to be complemented by other policies.

Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry

Abstract This study explores how technological diversification affects financial performance in Iran’s insurance industry. Using semi-structured interviews with six experts, including CEOs and faculty members, key indicators of technological diversification were identified, such as new underwriting software and digital advertising platforms. A 33-item questionnaire was developed based on these insights and distributed to top managers of Iranian insurance companies, with secondary financial data sourced from the Central Insurance of Iran. The study employes regression analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the impact of technological diversification on financial performance, controlling for firm size, debt ratio, and company age. Findings indicate a significant negative relationship between technological diversification and both Return on Equity (ROE) and Return on Assets (ROA), suggesting that the costs of adopting new technologies may outweigh their short-term financial benefits. Additionally, high debt ratios were found to adversely affect ROA, highlighting the financial risks of excessive borrowing.

Modelling the potential impact of a tax on fruit juice in South Africa: implications for the primary prevention of type 2 diabetes and health financing

BackgroundSouth Africa is experiencing a persistent growth in non-communicable diseases. Diabetes is among the top ten causes of mortality, especially among women, which is partly driven by high levels of added sugar consumption and obesity. To reduce obesity rates and the incidence of diabetes, South Africa introduced a tax on sugar sweetened beverages (also known as the Health Promotion Levy (HPL)) in 2018. The tax is applicable to sugar-sweetened beverages but excludes 100% fruit juice. The government is currently considering extending the tax to include fruit juices. This study models the potential health and economic impact of taxing fruit juices at 20% of the retail price of one liter.MethodsTo analyze the distributional impact of the tax, this study uses extended cost-effectiveness analysis methodology. Data on price elasticities, healthcare cost, income, fruit juice consumption were sourced from the literature and representative national surveys. The potential impact of the tax on diabetes incidence, prevalence, mortality, and financial benefits were estimated for each income group (lowest, quintile 1 to highest, quintile 5).FindingsWe estimate that a 20% tax on fruit juice would avert 156,640 incident cases of type 2 diabetes mellitus over 20 years, with most disease averted occurring among the first- and fifth-income groups. Averted deaths from diabetes would average 2,000 deaths per quintile (for quintiles 1 to 4) and about 2,800 in quintile 5. The improved health resulting from averted incidence and deaths will reduce overall healthcare expenditure by R7.5 billion over 20 years, of which R2.3 billion will occur in the fifth quintile. The South African government will also save about R300 million in subsidizing diabetes-related healthcare cost as a result of prevention; and would raise R8.6 billion in tax revenues per annum. Out-of-pocket expenditure savings will be R303 million and a financial risk protection (money-metric value of insurance) of R4.6 billion over the 20-year period.ConclusionWe conclude that an HPL that significantly raises the retail price of fruit juices would reduce consumption and diabetes-related morbidity and mortality. The tax will also provide significant financial benefits in the form of reduced healthcare costs for both government and households as well as providing financial risk protection to individuals. Health taxes are win-win policies that improve population health and generate revenue for governments to fund public health services delivery and thus improve overall health financing activities of the government. Therefore, population level disease prevention measures such as health taxes are important for achieving universal health coverage.

Perceptions And Interests Of Young Entrepreneurs In Sharia-Based Business Finance

This study analyses the perception and interest of young entrepreneurs in Sharia-based business financing at BSI in Sungai Penuh City, Jambi. This study uses a qualitative approach with primary data from interviews. Interviews were conducted directly with six informants. The data analysis technique uses the Miles and Huberman approach with the following stages: data reduction, data presentation, verification, and conclusion. The results of the study indicate that the perception of young entrepreneurs towards Sharia-based loans is generally very positive; they understand the basic principles of Sharia in financing without interest and the application of profit sharing. Young entrepreneurs also recognize the benefits of sharia financing, such as easy access and simple procedures. On the other hand, the interest of young entrepreneurs in Sharia financing is still relatively low. This is due to the need for more socialization and support from Sharia financial institutions and limited financing options. Theoretically, this study can be used as a reference for relevant research in the future. Practically, this study can be a reference for Sharia financial institutions in designing marketing strategies and developing financing products that meet prospective customers' needs so that they can have a positive impact and increase interest and awareness of the importance of Sharia financing among young entrepreneurs.

Postharvest Rice Value Chain in Arequipa, Peru: Insights into Farmers’ Storage Decisions

We examined the postharvest rice value chain among farmers in the Arequipa region of Peru, focusing on the stages of value creation after harvest. Our study is complemented by an economic analysis that provides insights into farmers’ decisions on whether or not to store rice after harvest. We found that farmers produced, on average, 65 tons of paddy rice on a 5 ha farm. Most farmers (over 85%) milled their paddy rice immediately after harvest, usually by paying a fee to a private mill. Milled rice was then sold to intermediaries (wholesalers and retailers). Approximately 13% and less than 1% of farmers stored their paddy rice before and after milling, respectively. Storage provided minimal financial benefits once grain preservation costs and price arbitrage were considered. Our findings offer guidance for policymakers and investment partners to enhance the efficiency of the postharvest rice value chain and to improve outcomes for farmers in Peru and other developing countries.