Financial Companies Research Articles

Asymmetric Information and Information Assimiliation

The purpose of this research is to determine the impact of information assimilation on equity issuance in the banking sector. The data consists of 384 observations of banking and finance companies listed on the Indonesian Stock Exchange from 2020 to 2023. A univariate analysis was utilized to identify the differences in asymmetry between companies with seasoned equity offerings (SEOs) and non-SEOs to meet capital requirements in the banking sector. The research indicates that SEO and non-SEO banks exhibit significant differences in their spreads. Despite the banking sector's access to deposits and wholesale funding to finance capital shortages or prospective projects, equity issuance by the banking sector has increased. The presence of regulations on information disclosure does not produce asymmetric information; however, the increased spread among companies with SEOs is due to the more complex information assimilation process, which in turn results in a wider spread relative to the fundamental price.

Explaining bitcoin ownership in Canada: Trends from 2016 to 2021

AbstractThis paper studies the dynamics of bitcoin ownership from 2016 to 2021, using the Bank of Canada's Bitcoin Omnibus Surveys. The estimated rate of bitcoin ownership jumped to 13% in 2021, up from the 5% observed in the previous three years. On one hand, this increase reflected broader economic trends related to increased savings and investment of Canadians during the COVID‐19 pandemic, along with financial technology companies providing accessible and user‐friendly platforms for buying bitcoin. Looking deeper, we use econometric models to quantify several specific ways in which bitcoin became more mainstream as an investment in 2021. Finally, we investigate the high cash holdings of bitcoin owners across time.

2020 Survey of Finance Companies

This paper discusses the findings from the 2020 Survey of Finance Companies.

Foreign portfolio investments and voting bias in the Eurovision Song Contest

We investigate the role played by the voting bias in the Eurovision Song Contest (ESC) in explaining international bilateral portfolio investments. Our analysis reveals that the voting bias in the ESC score significantly helps explain bilateral portfolio investments but only for non-professional investors, while no systematic effect is found for financial companies’ holdings. Our results undergo robustness checks related to changes in the voting system and to the inclusion of standard static indicators of cultural distance. Moreover, for non-professional investors, the effect of voting bias is larger for debt than for equities: it is consistent with an affinity/animosity bias directed to target foreign governments and then reflected in sovereign debt holdings. Our analysis highlights that financial decision making, especially for less sophisticated investors, may be driven not only by static economic and cultural proximity, but also by less predictable time-varying national subjective feelings.

The Effect of Institutional and Shariah Governance on Sukuk and Bond Performance in Asian Region

Purpose: This study investigates the influence of shariah and institutional governance on the performance of sukuk and bonds in the Asian landscape, particularly Malaysia and Indonesia. It aims to unravel the impact of Shariah principles and various aspects of institutional governance (IG) indicators; hence offering a deeper understanding of sukuk and bond performance. Method: Data was collected from 34 companies in Asian region. The study developed and validated the SG index using principle component analysis. Results and Discussion: The findings from panel regression analysis showed that Shariah and institutional governance improve sukuk performance. In addition institutional governance affected bond performance. Indicators of IG affected positively sukuk issuance and return. However, only government effectiveness and rule of law affected the bond issuance. All the indicators affected bond return except voice and accountability. Implications of the Research: The study contributed to the literature by examined both type of governance and compared between their effects. It also developed an SG index for financial and non-financial companies. Improving Shariah governance and institutional governance will enhance sukuk and bond performance. Originality/value: The study contributed to the knowledge by developing an index of shariah governance for financial and non-financial organization.

The Importance of Corporate Culture, Governance Structure, and Laws and Regulations in the Fintech Ecosystem

With rapid technological development, technologies such as artificial intelligence, blockchain, cryptocurrency and mobile payment are constantly promoting changes in the traditional financial industry and deriving the emerging ecosystem of financial technology. This article mainly discusses how corporate culture, governance structure, laws and regulations in the financial technology ecosystem affect financial technology companies to maintain a certain competitiveness in the relevant ecosystem. Among them, a strong cultural atmosphere can help fintech companies stabilize their position in the system, and a stable governance structure can help fintech companies and enterprises avoid risks and make correct strategic decisions, thereby promoting the development of the entire fintech industry. Laws and regulations are mainly reflected in fintech companies' compliance with financial regulations in different regions, such as anti-money laundering, anti-terrorist financing, and the protection of customer data and privacy, thereby enhancing customers' trust in fintech companies. These three aspects jointly stabilize the position of financial technology companies in the financial technology ecosystem and promote the continuous development of the financial technology ecosystem.

Execution of Fiduciary Guarantee at Consumer Finance Institutions

Motor vehicles are a staple need today, so that the existence of consumer finance companies is very much needed by the community, In addition, the high level of need for consumptive goods and the limited ability or purchasing power of most people to buy in cash make consumer finance institutions so much in demand by the community, so that consumer finance institutions (consumer finance) is quite active in supporting the business world in Indonesia, both for new motorcycles and for used motorcycle units as well as financing furniture and electronic goods. Consumer financing activities are carried out by providing installment payment options in accordance with the consumer's ability and long term. Problems arise when installment payments are delayed or even to the act of deliberately transferring the vehicle to another party without the approval of the financing institution. When this happens, the financing institution will finally look for its vehicle rather than looking for a debtor who will definitely not pay installments anymore, for that a third party called a debt collector appears who is invited to work together. The pros and cons of using third-party services are what make the author analyze in this study, because often the use of third-party services will also cause new problems.

What Kind of Cycle Do Seasoned Equity Offerings Create on The Company's Financial Structure? BIST Application with Panel ARDL Error Correction Model

This study examines the effects of fundamental public offering indicators in seasoned public offering companies on current ratio, return on equity and financial leverage ratio in the long and short term. For this reason, the Panel ARDL error correction model was applied by using the data of 40 stocks between 2005-2022. The analysis results are consistent with the literature, and it is found that the degree of financial leverage decreased and liquidity increased after the public offering; it was emphasised that this financial recovery has regressed in the long term. In this context, a perspective supporting the literature within this spectrum could be presented about the effects of fundamental public offering indicators on the current ratio, return on equity and financial leverage ratio in seasoned public offering companies in the long and short term.

The Effect Of Capital Structure On Profitability In The Registered Financial Services Industry On The Indonesian Stock Exchange (Bei)

Capital structure is an important issue that companies must pay attention to because capital structure is expected to increase profitability, which is the goal of every company. This research aims to determine the effect of capital structure on profitability in financial services industry companies listed on the Indonesia Stock Exchange (BEI). This research uses quantitative methods with explanatory research. The sampling technique in this research is purposive sampling. The data analysis technique in this research uses multiple linear regression analysis. The results of this research show that capital structure as measured by the Debt to Asset Ratio (DAR) has a significant positive effect on profitability (Return On Assets) and the Debt to Equity Ratio (DER) has a significant negative effect on profitability (Return On Assets)

Role Stress and Job Performance in the Economic Recession Issue: Evidence from Finance Companies

Role Stress and Job Performance in the Economic Recession Issue: Evidence from Finance Companies

METHODOLOGY OF CHANGE MANAGEMENT IN THE IMPLEMENTATION OF AUTOMATED TREASURY SYSTEMS

The relevance of the chosen topic arises from the growing need to explore the automation of treasury systems in enterprises, given the rapidly changing external and internal environments of companies. This study investigates both the theoretical and practical aspects of automation, focusing on how new systems can adapt flexibly to these dynamic conditions. The research is rooted in a detailed examination of methodologies for change management during the implementation of automated treasury systems, ensuring that such transitions align with broader business strategies. The study’s methodology includes a thorough analysis of existing theoretical frameworks in the field of cash flow system automation, particularly in treasury management. Additionally, it draws on practical experiences from companies such as Severstal, JSC USC, and SMART-HOLDING, which have implemented systems like 1C, Finance 360°, and the integrated "Treasury" project. These cases provide valuable insights into the challenges and effective solutions for developing efficient cash flow management systems. The findings demonstrate that automated treasury systems are crucial for companies to manage their cash flows effectively. They enable firms to maintain control over key economic indicators while providing the flexibility needed to respond to fluctuating external and internal factors. Through the use of sophisticated methodological tools, these systems support strategic financial management and help companies stay competitive in a fast-paced environment. The conclusions of this study are highly relevant for students and professionals engaged in the study or practice of cash flow management and treasury operations in various organizational settings. The insights offered emphasize the importance of a well-implemented treasury automation system in ensuring financial stability and achieving long-term business success. Furthermore, the study presents practical recommendations for effectively implementing and adapting these systems to meet the evolving demands of the global business landscape.

The Influence of CEO Characteristics On Environmental, Social, & Governance (ESG) Strategies In Non-Financial Sector Companies Listed On The Indonesian Stock Ex-change (IDX)

Global issues such as climate change, social injustice, and corporate misconduct have driven the emergence of the Environmental, Social, & Governance (ESG) concept as the foundation of business and investment strategies. While Indonesia has been a pioneer in ESG bond issuance, further steps are still needed to support national policies and ensure alignment with ASEAN and G20 goals in supporting sustainable finance. This study aims to determine the effect of CEO characteristics, namely Gender and Education, on the Environmental, Social, & Governance (ESG) of companies listed on the Indonesia Stock Exchange (IDX). The literature shows that Gender, Education, and CEO Experienxe affect the company's funding policy and capital structure, but the impact on ESG implementation is unclear. This study used a sample of 365 with a total of 73 companies. The data processing method used is panel linear regression analysis using RStudio software. The results showed that CEO gender has an insignificant positive effect, CEO education has a significant positive effect, and CEO experience has a significant negative effect on the ESG strategy score. The results of the study are expected to help companies in making policies to improve ESG and help investors in choosing ESG companies.

The Influence of Good Corporate Governance on The Company's Financial Performance

This research investigates the impact of Good Corporate Governance (GCG) on the financial performance of property companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2023. Key governance variables include the board of commissioners, board of directors, audit committee, institutional ownership, and managerial ownership. A quantitative associative method was utilized, with data collected from the annual reports of 31 property companies selected via purposive sampling. The analysis was conducted using multiple linear regression with SPSS 25 software. The study reveals that the board of commissioners, board of directors, and audit committee positively and significantly affect financial performance. Conversely, institutional and managerial ownership show a significant negative impact. These findings underscore the importance of effective governance structures in enhancing company performance. Larger boards of commissioners and directors, along with an active audit committee, contribute to better financial outcomes. However, higher levels of institutional and managerial ownership may lead to decisions that negatively affect performance. Good Corporate Governance practices significantly influence the financial performance of property companies. This research provides valuable insights for improving governance frameworks to enhance financial health in the property sector.

Global evaluation of the natural environment and household income for sustainable development

With global economic growth, the burden on the natural environment is severe, and more and more attention is paid to sustainable development that enhances the economic growth and sustainability of the natural environment. This study aims to show the concern of global citizens regarding the natural environment and household income. It used worldwide individual interview data from 149 countries between 2007 and 2021, with 2,450,043 observations (Gallup World Poll surveys) and an original large-scale internet- and face-to-face-survey from 37 nations with 100,956 observations. Using a binary logit regression model, this study also analyzes public sentiment regarding who should bear the financial burden for environmental conservation. We found that 60 % of citizens showed that their current income provides a comfortable life; on the other hand, 49 % of the respondents were dissatisfied with conservation of the natural environment. The satisfaction with household income was much greater than satisfaction with natural environmental conservation, leaving space for improvement in environmental stringency. For citizens’ preferences regarding financial responsibility, the government and companies are expected to afford conservation costs.

STUDY OF RISK AND RETURN OF MUTUAL FUNDS

There are many avenues in financial market. An Investor can invest in Bank deposit, corporate debenture and bonds which has law risk with low return. He may also Investor in stock of company which has high risk with hight return. Investors look for safer investment avenues and want to maximize their returns in according to their risk. Whereas people also tries to invest money as early as possible so that the money will grow accordingly in his lifetime. Choose a good investing option is very critical because a balance is required to be maintained between the risks and returns involved in investment. Return is inspiring force and principal reward in the investment process. One of the essential, reason because ofwhich one needs to invest fairly is to meet the cost of inflation. Inflation is the rate at which the cost of living increases at that time. A mutual fund is an expertly overseen company of collective investments that swimming pools money from numerous buyers and puts it in stocks, bonds, momentary money market instruments, as nicely as distinct securities. Mutual money is emerging as helpful instrument for a large scope of speculators, from people looking to put some thing aside for retirement to subtle socialites concentrated on defending their belongings and businesspeople to make wealth. Mutual Fund is a trust that pools the reserve funds of various buyers who share a typical financial objective. Anyone with an investible overflow of as little as two or three thousand rupees can put resources into mutual fund devices as indicated by means of their expressed objective and strategy. Mutual Fund Company pools money from a gathering of individuals with normal hypothesis targets to buy securities, for example, stocks, bonds, money market instruments, a mixture of these instruments, or significantly unique belongings so as to acquire the reward of enhancement and expertly oversaw container of protections at a reasonably ease. In a mutual fund, the fund manager, who is likewise excellent as the portfolio manager, trades the funds underlying securities, acknowledging capital positive factors or losses, and gathers the dividend or hobby income. The income are passed alongside to the investors. The charge of a share of the mutual fund, acknowledged as the net asset value (NAV), which is determined on day through day base, in mild of the absolute estimation of the mutual fund divided by the extent of high-quality shares presently issued.

Intellectual capital and firm performance of Jordanian financial institutions

This study aims to explore the financial implications of intellectual capital in the Jordanian financial sector during the period 2009–2018. It uses Pulic’s (2004) value-added intellectual capital model, particularly capital employed efficiency, structural capital efficiency, and human capital efficiency, and tests its potential effect on firm financial performance measures, including return on assets, return on equity, asset utilization ratio, and Tobin’s Q. The study’s findings demonstrate that value-added intellectual capital positively influences the financial performance of Jordanian financial companies. Value-added intellectual capital is not found to have a significant impact on productivity, but it is strongly and positively related to firm profitability and market value. As for the main components of value-added intellectual capital, human capital efficiency has a significantly positive impact on a company’s performance, but regarding structural capital efficiency, the outcomes vary depending on the measure of firm performance. Notably, when firms are categorized into sub-industries (banks, insurance companies, and financial service companies), it is found that the profitability of insurance companies is more affected by intellectual capital than that of banks or financial services. The results also show that investors place great importance on the efficiency of intellectual capital, particularly within the banking industry. Furthermore, implementing Shariah compliance standards boosts the positive effect of structural capital efficiency on corporate market value and reinforces the positive influence of human capital efficiency on productivity.

The Effect of Good Corporate Governance Mechanism on Company Financial Performance with Company Size As a Moderating Variable

The Effect of Good Corporate Governance Mechanism on Company Financial Performance with Company Size As a Moderating Variable

Pengaruh Profitabilitas, Leverage, Likuiditas, Kualitas Audit Dan Agresivitas Pajak Terhadap Manajemen Laba Pada Perusahaan Sektor Keuangan Yang Terdaftar Di BEI Tahun 2018 – 2021

This research was formulated whether or not there are influence of probability, leverage, liquidity, audit quality and tax aggressiveness toward earnings management in financial sector companies listed on the idx 2019-2021. The purpose of the research was to figure out the are influence of probability , leverage, liquidity, audit quality and tax aggressiveness toward earnings management in financial sector companies listed on the idx 2019-2021. This type of research used a quantitative descriptive type. The variables of this research were probability, leverage, liquidity, audit quality, tax aggressiveness and earnings management. The data collection technique used was the documentation method. The documentationmethod was used as the basis for analyzing the data. The documentation was in the form of financial report. The analysis technique used in this research was multiple linear regression analysis. The results of the test for coefficient of determintation obtained an R square result of 0,006 or 6%, which means that the influence of probability, leverage, liquidity, audit quality and tax aggressiveness toward earnings management wasn’t too large. The results showed that probability, liquidity, audit quality and tax aggressiveness had no effect on earnings management, while leverage had an effect on earnings management.

Pengaruh Transaksi Pihak Berelasi dan Intellectual Capital Terhadap Nilai Perusahaan Dengan Financial Performance Sebagai Moderasi

This research analyzes how related party transactions and intellectual capital influence firm value and how a company's financial health (financial performance) moderates its relationship with related parties (related party transactions) and intangible assets (intellectual capital) in determining the overall value of the firm. A total of 105 financial companies from 2020 to 2022 were the population in this study. Through the purposive sampling method, 27 financial companies were used as research samples. The data analysis technique used is Partial Least Square (PLS) using special SmartPLS 4 software. The results of this research reveal that transactions with related parties do not have a direct impact on firm value. On the other hand, strong intellectual capital makes a positive contribution to firm value. Meanwhile, this research found that the company's financial health (financial performance) was unable to moderate the relationship between related party transactions and intellectual capital on firm value.

The Influence of Environmental, Social & Governance (ESG) Risk Rating on Debt Financing in Companies Listed on IDX ESG Leaders

The Influence of Environmental, Social & Governance (ESG) Risk Rating on Debt Financing in Companies Listed on IDX ESG Leaders