Financial Center Research Articles

Sukuk as an Islamic finance alternative for investment in Infrastructure in Kazakhstan: institutional perspectives

In recent years due to the international economic crisis, the most complex and long-term problems have aggravated in the Republic of Kazakhstan, the resolution of which is strategic importance for the economic well-being of the country and its resilience to external influences. The main goal of further economic development is not only the stabilization and growth of industry, but also the development of industrial and social infrastructure. Nevertheless, issue of infrastructure funding is still open and struggling. As a developing country it takes big deal to borrow from foreign banks. Moreover, the additional leverage appears in a face of currency volatility which is highly distress country economic growth. This paper unveils the actual issues of infrastructure development, adopting Islamic finance in Kazakhstan with legal perspectives and the solution for them in the form of Sukuk issuance model. In this regard, legal perspective should be addressed since regulation on Sukuk is not well accommodated in the existing regulation by both AIFC (Astana International Financial Center) as well as Kazakhstan jurisdiction. Sukuk can expand financial services, assist to develop domestic capital market and provide infrastructure funding without government budget support. Therefore, this paper implies to domestic regulation as set by both AIFC and Kazakhstan mainland jurisdiction.

The Impact of Financial Geographical Structure on Corporate Pollution Emissions

This chapter takes a macro perspective on the financial geographical structure, starting from the perspective of financial agglomeration and financial center spillover. Based on the Chinese industrial enterprise database, Chinese pollution emission database, and the China City Statistical Yearbook, it explores the impact of financial geographical structure on corporate pollution reduction. The study finds that local financial agglomeration and financial center spillover can significantly reduce the intensity of corporate pollution emissions, which remains robust after a series of rigorous tests. Mechanism analysis indicates that local financial agglomeration and financial center spillover can promote corporate pollution reduction through the effect of technological innovation. The research conclusions of this chapter can provide new insights for deepening the structural reform of financial supply side.

The more things change in higher education, the more they stay the same

Richard Chaite, Executive Director of the National Center for Postsecondary Governance and Finance at the University of Maryland, wrote the following in September 1989:

Rebooting Amsterdam for the age of Big Tech: Platform capitalism, reintermediation, and financial-center change

The platformization of finance and the financial inroads made by tech firms large and small raises questions about the extent to which financial centers and their incumbent inhabitants retain their positions as key intermediaries in financial(ized) intermediation. Focusing on cloud adoption and digital payments in post-2008 Amsterdam, we study how and to what extent financial platformization entails the ‘rebooting’ of the Amsterdam financial center, by investigating (i) the changing composition and spatial structure of its inhabitants; (ii) the platformization of incumbent financial institutions and the rise of new intermediaries, and (iii) deepening interdependencies between financial institutions and Big Tech. We find that platform companies have come to inhabit both the city center and the Zuidas financial district at the expense of incumbent finance and other advanced producer services (APS). Along with the growing footprint of resident platform companies, typically relying on Big Tech cloud services, we identify growing interdependencies between finance and tech, as illustrated by the adoption of Big Tech cloud services among financial institutions old and new. To illuminate patterns of competition and collaboration between incumbent finance, Fintech and Big Tech, we foreground incumbent bank ING and Fintech Adyen, a payments services provider (PSP), and analyze their relations with tech giant Amazon. In the payments domain, we see new intermediaries like Adyen assume functions at the expense of incumbent APS intermediaries, including banks. In sum, we conclude that the rise of platform capitalism is progressively giving way to financial reintermediation and financial-center change, with tech companies forming an increasingly dominant sector within a platformizing para-financial APS complex, and with Big Tech assuming a growing yet uneven infrastructural role.

"Trust as a Reliance Interest: Administrative Law and Financial Regulation in the United States and its Comparative Implications"

This article argues that regulatory trust is established and maintained through a relationship between stakeholders and the government, with the former group of organizations and individuals relying on their understanding of this relationship. Federal administrative law in the United States makes the expectations about the regulatory environment on which stakeholders rely more meaningful by granting stakeholders the right to bring actions in court when their expectations are being (or seem likely to be) dashed. To make this argument, I begin with the threshold question of how courts serve as a forum for voicing claims of distrust in regulatory regimes. I then consider the importance of political accountability over regulatory decision making, illustrating the concerns about the structure of agencies that regulate consumer and housing finance. Next, I will discuss a second major challenge to trust that arises from the extent to which the authority of regulatory agencies is circumscribed by legislation. Along the way, I draw on the case law presented to argue that problems of trust in financial regulation center on the reliance interests of stakeholders. Finally, the argument suggests a research agenda into trust as a reliance interest that I sketch in the conclusion.

The influence of the current law of the Astana International Financial Center on the development of the legal system of Kazakhstan

Relevance. The relevance of the problem under study lies in the need to study the legal system of the Republic of Kazakhstan and the functioning Astana International Financial Center (AIFC), the current law of which interacts with the current law of the Republic of Kazakhstan.Purpose. In this regard, the purpose of this article is to explore the interaction between the current law of the Astana International Financial Center and the current law of the Republic of Kazakhstan.Methodology. The method that was used to achieve the goal became systemic, functional, and hermeneutic were used as auxiliary ones.Results. The main results of this study: it was revealed that the current AIFC law and the current law of the Republic of Kazakhstan function as two independent institutions in accordance with the amendments to the Basic Law of Kazakhstan, complementing and mutually enriching each other. It is proved that the norms, principles, and precedents of the Anglo-Saxon legal system have a positive impact on the development of the legislative sphere of Kazakhstan, taking into account the national law of the Republic. An analysis is presented of how decisions and orders made on the territory of the AIFC are limited by acts of the court. The interaction and mutual influence of the current law of the Center with the system of generally binding norms of the Republic of Kazakhstan is substantiated. The theoretical aspects of the concept of the reception of law are disclosed. Also, in the course of the study, two approaches were revealed to the study of the functioning of the current law of the organization declared in the subject of the article, including the Anglo-Saxon legal system, and the system of generally binding norms of the Republic of Kazakhstan.Conclusions. The practical significance of the article lies in proving that the jurisdiction of the above organizations, in the form of court decisions, extends not only to the territory of AIFC, located within the city of Astana � where a special legal regime prevails, but also throughout the territory of the Republic of Kazakhstan.

Financial literacy during a pandemic

We compare the performance of financial literacy programs launched by the CFA Society Pittsburgh in residential settings (2017–2019) with virtual/hybrid programs during the COVID-19 pandemic (2020-2021). Pretest baseline knowledge assessment shows that female students scored lower on subjective and objective financial knowledge questions and self-esteem. However, the global pandemic did not impact the effectiveness of programs based on modality. Students experienced a statistically significant improvement in all four assessment areas of financial literacy. The largest gains in subjective and financial knowledge center on retirement planning. Objective knowl- edge and self-esteem improvements occur most in credit and inflation. Female students experience more significant gains in subjective knowledge, objective knowledge, and self-esteem.

Tantangan Pemberian Kewenangan Bagi Penyidik Pejabat Pegawai Negeri Sipil (PPNS) Kehutanan Sumatera Barat Pada Tindak Pidana Pencucian Uang

Law Number 8 of 2010 on the Prevention and Eradication of Money Laundering (AML Law) serves as the cornerstone of anti-money laundering enforcement in Indonesia today, but it still falls short in accommodating the needs of money laundering law enforcement. Explanation of Article 74 of the AML Law limits the role of criminal investigators solely to the National Narcotics Agency (BNN), the Corruption Eradication Commission (KPK), the Police, the Prosecutor's Office, Customs, and Tax Authorities. This explanation of Article 74 contradicts the AML Law. This situation leaves the Environmental and Forestry Crime Investigators (PPNS Kehutanan) without the authority to investigate money laundering cases in the forestry sector and hampers efforts to combat money laundering. Ultimately, Constitutional Court Decision No. 15/PUU-XIX/2021 breathed new life into money laundering investigations by broadening the definition of investigators and granting authority to PPNS Kehutanan to handle money laundering cases. Based on this research, the author concludes that following Constitutional Court Decision No. 15/PUU-XIX/2021, PPNS in the forestry sector has the authority to investigate cases of money laundering. The authority held by PPNS Kehutanan in conducting money laundering investigations includes the power to delay transactions, the power to request information about wealth from the reporter, the power to seize assets, and the power to block assets. In West Sumatra, the investigation of money laundering in the forestry sector is assigned to PPNS of the Provincial Forestry Service and PPNS of the Directorate General of Law Enforcement and Forest Protection (Gakkum LHK). These two institutions coordinate to handle all forestry crimes, including money laundering. Furthermore, coordination is also carried out with the National Police (POLRI) and the Financial Transaction Reports and Analysis Center (PPATK) in resolving money laundering cases.

The effects of cross‐border acquisitions on firms' productivity in the EU

AbstractThis study empirically investigates the extent to which firms in the European Union, once acquired through a cross‐border acquisition, show different productivity levels as compared to those firms that have not been acquired. Our identification strategy relies on the combination of Propensity Scores and the Staggered Difference‐in‐Difference estimator, using firms' balance sheet data for the years 2008–2018. We find that cross‐border acquisitions decrease the productivity of the acquired firms, especially in the manufacturing sector, both high‐ and low‐tech. We also find evidence of origin and sector heterogeneity. Firms targeted by acquirers with ultimate owners originating in emerging market economies and Offshore Financial Centres also decrease productivity of target firms operating in high‐tech manufacturing sectors.

Developments in the United Arab Emirates impacting family offices and family wealth structures

Abstract This article examines the United Arab Emirate’s (UAE) evolving legislative landscape for family offices and family wealth structures, focusing on the 2022 UAE Family Business Law and the 2023 Dubai International Financial Centre Family Arrangements Regulations and their implications for the management and succession of family businesses, as well as the regulation of family offices in various financial free zones.

ANALISIS PENEGAKAN HUKUM TINDAK PIDANA PENCUCIAN UANG TANPA PUTUSAN PIDANA ASAL KORUPSI

This research aims to analyze the process of law enforcement and prevention of money laundering crimes originating from corruption based on Law Number 8 of 2010 on the Prevention and Eradication of Money Laundering Crimes and the efforts made by third parties acting in good faith to recover their assets if the money laundering crime is not proven in the corruption offense. The research method used in this study is a normative legal research method. From the analysis conducted, the legal enforcement mechanism for money laundering crimes originating from corruption as the underlying offense is essentially bound by the Criminal Procedure Code (KUHAP), the Money Laundering Act, and the Corruption Criminal Act. In the law enforcement process for money laundering crimes, there are still obstacles, both in terms of substantive law (substantive law) and procedural law (formal law). Additionally, the efforts that can be made by third parties to recover their assets are not sufficiently regulated in Law Number 8 of 2010, which means that it may not fully satisfy the principles of justice and legal certainty. To combat and prevent money laundering crimes, especially those derived from corruption, it is not only necessary to have law enforcement agencies with competent human resources for investigation and prosecution, but it is also essential to build synergy among stakeholders to prevent and combat money laundering crimes. Given that combating money laundering crimes involves multiple institutions such as financial institutions, law enforcement agencies, the Financial Transaction Reports and Analysis Center (PPATK), and other relevant agencies as subsystems, including Bank Indonesia, financial service providers, goods and services providers, the Capital Market Supervisory Agency (BAPEPAM-LK), the Ministry of Communication and Information Technology, the Directorate General of Customs and Excise (DJBC), and law enforcement authorities.

4YOUTH TAKAFUL IN ISLAMIC INSURANCE INDUSTRY: TECHNOLOGY AND LIFESTYLES

Malaysia is on track to becoming the world’s leading global finance hub. Malaysia remains the leader among 56 countries for Islamic financial institutions. However, Takaful is said to be left behind, not only to the other Islamic finance players, but also to the conventional insurance. Previous studies identified low penetration rate of Takaful as one of the factors. Takaful operators are unable to provide competitive products in the market, due to their limited funds. Most rejections came from employed youth. With their lifestyles, peak of health and limited income, Takaful products are not their priorities. Thus, a need to attract this group of people must be done to increase the penetration rate and increase the contribution funds. The study is done to fulfil five objectives, which were to come out with a Takaful product that attracts the youngsters, increase the funds of Takaful operators, create a product that suits and can give benefit to the young people, promote healthy lifestyle among youngsters and promote the growth of Takaful industry in Malaysia. 4YOUth Takaful combines technology and lifestyles of youths through an apps that connects Takaful operators, online shopping platforms, selected retailers and the youth Takaful participants. Scoring system is used to convert the purchase of health-related products into points which later will be used to reduce the monthly contributions of Takaful. Not only enabling youth to have financial protection from an early stage while maintaining their desired lifestyles, 4YOUth Takaful also encourages healthy lifestyles.

Replicating and Digesting Anomalies in the Chinese A-Share Market

We replicate 469 anomaly variables similar to those studied by Hou et al. (2020) using Chinese A-share data and a reliable testing procedure with mainboard breakpoints and value-weighted returns. We find that 83.37% of the anomaly variables do not generate significant high-minus-low quintile raw return spreads. Further adjusting risk increases the failure rate slightly to 84.22% based on CAPM alphas and 86.99% based on Fama–French three-factor alphas. We show that the conventional procedure using all A-share breakpoints with equal-weighted returns for the anomaly test is indeed problematic as it assigns too much weight to microcaps and has a very limited investment capacity. The CH3-factor, CH4-factor, and q-factor models show the best performance over the whole sample period. The q-factor model is the best performer in the post-2007 subsample period after significant improvements occurred in China’s financial market environment, such as the completion of the split-share structure reform and the implementation of new accounting standards conforming to the International Financial Reporting Standards. The non–state-owned enterprise subsample in the post-2007 period is a cleaner sample in which the CH4-factor and q-factor models are the best performers. This paper was accepted by Lukas Schmid, finance. Funding: Z. Li acknowledges financial support from the National Natural Science Foundation of China [Grant 72103043] and the Fundamental Research Funds for the Central Universities in UIBE [Grants 19QN01 and 22PY053-72103043]. L. X. Liu acknowledges financial support from the National Natural Science Foundation of China [Grants 71872006 and 72273006]. L. X. Liu and X. Liu acknowledge financial support from the Guanghua Thought Leadership Platform of Peking University. K. C. J. Wei acknowledges partial financial support from the Research Grants Council of the Hong Kong Special Administrative Region, China [Grant 15507320]. The authors acknowledge financial support from the Guanghua School of Management, Peking University; the School of Banking and Finance, University of International Business and Economics; and the Non-PAIR Research Centre “Research Centre for Quantitative Finance” at Hong Kong Polytechnic University. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4904 .

Akuntabilitas Pengelolaan Keuangan pada Balai Guru Penggerak Provinsi Maluku Utara

The problem phenomenon that the author examines is related to the transition of BP-PAUD dikmas which was transferred to the Mobilizing Teachers Center on the issue of budget management human resources, which is still not effective because the Mobilizing Teachers Center handles all levels of schools, including Kindergarten/PAUD, Elementary, Middle School, High School, Vocational School and SLB, whereas Previously, BP-PAUD Dikmas handled only one level, namely TK/PAUD. This research aims to find out how accountable financial management is at the North Maluku Province Teacher Mobilization Center. The method used in this research is a qualitative approach. Data collection techniques in this research are through observation, interviews and documentation studies. The results of this research show that the North Maluku Province's financial accountability center is effective, efficient and accountable because the budget implementation process is transparent and accountable in accordance with applicable rules and regulations. And the achievements of the program / activity in accordance with the program/activity implementation plan and budget of the North Maluku Provincial Mobilization Teacher Center and the Performance Agreement of the Head of the North Maluku Provincial Mobilization Teacher Center

Islamic accounting standards: historical retrospective, challenges and key players

A historical exploration of Islamic Accounting Standards is presented in this paper. The fundamental players’ roles in the emergence and expansion of Islamic accounting standards are also identified. To collect data, documents were examined and key players that are involved in the development of Islamic Accounting Standards were interviewed. It has been determined that the Dubai International Finance Centre (DIFC) primarily sets Islamic Accounting Standards in the UAE. Since the reporting standards and backgrounds of accountants may have global effects beyond their jurisdictions, this study suggests accounting standards setters with differences in the ideological and religious backgrounds should communicate with one another in an era of globalization.

The sanctions regime for doing business in the securities and collective investments market

Restrictions on the Russian financial sector by foreign states, their associations and international organizations, as well as retaliatory measures on the part of Russia, in their entirety, can be described as a sanctions regime for doing business in the securities and collective investments market. The article reveals the main content of these sanctions restrictions and retaliatory measures. The sanctions regime is intended to become the basis for reviewing a number of principles of the organization and functioning of the securities and collective investments market. The restructuring of the international financial center established in Russia is required, based on the presumption that there is a risk of sudden unfriendly actions on the part of any of the foreign states or financial institutions, even if they are friendly as of today. Emphasis should be placed on the development of national institutions of the securities market and collective investments, which should largely be replaced by relevant foreign institutions. The principle of openness and transparency of the Russian stock market is subject to revision.

The role of the ‘Astana’ International Financial Centre in the capital market

The role of the ‘Astana’ International Financial Centre in the capital market

Building a Modern Industrial System to Promote High-quality Economic Development in Zhanjiang

The modern industrial system is the material foundation and strategic focus of the socialist market economy system, and is an inherent requirement for achieving high-quality economic development. Studying and exploring how to build a modern industrial system is of great practical significance for accelerating the construction of a new development pattern and promoting high-quality economic development. This article takes Zhanjiang City, Guangdong Province as an example to summarize and extract the prominent contradictions faced by the Zhanjiang industrial system, clarify the development ideas of the modern industrial system, and propose the need to use systematic thinking to integrate new development concepts into the construction process of the modern industrial system. From expanding the economic volume, accelerating the pace of digital economy development, building a marine financial center, improving the level of opening up to the outside world, building a strong city with innovative talents, and improving regional cooperation mechanisms Propose implementation paths for building a modern industrial system from seven aspects, including granting greater financial rights, to provide support for high-quality economic development in Zhanjiang.

USE OF DIGITAL TECHNOLOGIES IN FINANCING PROJECTS OF SUSTAINABLE DEVELOPMENT IN KAZAKHSTAN

The purpose of the study is to identify new mechanisms for increasing financial support for sustainable development projects in Kazakhstan based on the use of digital technologies.Methodology. To conduct the study, the methods of content analysis of scientific literature, dynamic analysis of indicators for the development of sustainable financing in Kazakhstan, and comparative analysis of the possibilities of investment platforms and portals were applied. The statistical data of the Green Finance Center in AIFC, the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, international and national standards and guidelines in the field of sustainable development were studied.Originality/value of the research. The study is aimed at solving the actual problem of developing sustainable financing in Kazakhstan. To achieve this goal, the study proposes the use of digital platforms that will help to attract private investment in sustainable development. The criteria for checking projects for compliance with the goals of sustainable development have been systematized.Research results. The stages of developing a digital platform for financing sustainable development projects, logical relationships between processes and information flows, types of connections between platform users are determined. The platform solution can contribute to the growth of funding for the green economy and social projects and make a significant contribution to the promotion of sustainable development priorities.

Research on the Application of Financial Sharing Center Based on Value Chain Theory Take the Mengniu Company as an Example

The growing size of enterprise groups and the rapid development of information technology have given rise to financial shared services. They have brought about changes in the financial management model, improved the efficiency of accounting processes, and strengthened the control of molecular companies by reconstructing financial processes. However, there are some shortcomings in the current financial shared services, for example, the application of financial shared services is mainly focused on the operational level, concentrating on post-event processing, lagging behind the demand and facing difficulties. Therefore, this paper takes the financial shared service center of Mengniu Group as the research object and focuses on how to use new types of financial information technology to realize the digital transformation of the enterprise financial management process. The case is analyzed using relevant theories. The financial shared services model has improved the efficiency of modern enterprises' production and operations, expanded the analysis and decision support functions of finance, and facilitated the digital transformation of enterprise finance; at the same time, the value of data assets related to financial shared services has not been fully exploited, and the benefits of financial sharing are still limited to internal enterprises and have not been extended to other enterprises in the value chain. It is recommended that enterprises further improve their shared services and combine them with digital transformation based on data, process, and business specifications, and implement them more deeply in all dimensions of the value chain in the future to achieve value creation.