Financial Dealings Research Articles

THE IMPACT OF INTERNAL AUDIT ON THE EFFECTIVENESS OF BANKING RISK MANAGEMENT (APPLIED STUDY ON A SAMPLE OF IRAQI BANKS)

In light of the scientific and technical progress in all aspects of life, banks need a control and auditing system to protect them from the risks they are exposed to as a result of their diverse financial dealings, to reduce or avoid losses and maintain and support banks to carry out their work in a way that enables them to achieve a competitive advantage. The problem is embodied in the extent of the contribution of internal auditing in how to manage banking risks and demonstrate their effectiveness in banks. It aims to stand on the reality of internal auditing and the extent of its application in Iraqi banks, with the importance of identifying the functions of internal auditing in auditing, evaluating and following up on the efficiency and effectiveness of risk management procedures based on the risk-based auditing approach. In addition to the commitment to applying the standards, principles and guidelines issued by the Institute of Internal Auditors or issued by the International Organization for Banking Supervision that govern the performance of the internal auditor and help him identify obstacles and find solutions to support and succeed in risk management in the two banks. The research sample used the questionnaire in the practical aspect to show the effectiveness of internal auditing in managing banking risks and to come up with a number of recommendations, the most important of which are: Continuing work to enhance and develop the skills and knowledge of internal auditors by holding training courses on how to deal with banking risk management to enable them to perform their work effectively, and for banking institutions to support the components of the independence of the internal auditor to perform his work efficiently.

Who funds whose infrastructure? Country dyadic analysis of global project finance loans

Global project finance investments have become one of the primary funding mechanisms for large infrastructure projects worldwide over the past few decades. This paper examines the country-level dynamics of global project finance loans from 1981 to 2018, using data from all project finance deals reported in the DealScan database. Our analysis reveals that most international project finance loans originate from banks and financial institutions in advanced democracies, while the recipient countries vary widely in terms of regime type and economic development. Through systematic visualization and statistical analysis, we find that transnational capital flows for infrastructure projects are more likely to occur between countries with similar political systems or between those with starkly different regimes. This finding indicates significant lending and borrowing between full democracies and closed autocracies, suggesting that investments raised in liberal democracies enable some of the most closed dictatorships to finance their infrastructure development. The study suggests that closed and repressive regimes might substantially benefit from the globalized project financing system, warranting increased attention from scholars in International Political Economy on political implications of the globalized project finance market.

The Gene Editing Business: Rent Extraction in the Biotech Industry

ABSTRACT This article analyses the mechanisms governing the extraction, circulation, and distribution of rent in the biotech industry. Building on recent scholarship, it contributes to debates surrounding the importance of rent in technoscientific capitalism. We analyse genome editing as a global labour process. Part One examines the ongoing patent battle over CRISPR-Cas9 as a struggle for control over a foundational biotechnology increasingly central to several industrial sectors: a process of enclosure that facilitates a shift towards monopoly, rent extraction, and financial speculation. Part Two then details how patented CRISPR technologies are valorised through the construction of global, multi-layered infrastructures of rent extraction based on complex webs of financial and licensing deals. Part Three maps the uneven global geographies of CRISPR patenting. It considers how monopoly power emerges through the continuous conversion of public research into private assets, and how this enclosure reinforces profoundly unequal systems of distribution of royalties and rents in the global biopolitical economy. We interrogate how CRISPR technologies cement and expand neocolonial geographies of rent extraction, privatising the economic benefits and socialising the ecological risks. Finally, we argue that an increasingly monopolistic corporate biopower mediates how genome editing technologies are developed, and which mutant ecologies are socially produced.

A Study on Green Banking Awareness of Customer's Perspective Concerning Tiruvallur District

In today’s business technology, banking is the backbone of each business, and technology plays a crucial role. The role of technology is dynamic speedily day to day, which additionally promotes the bank and monetary establishments. Bank is one of the very best monetary establishments that often explore the use and advantages of technology provided to customers through a range of services. Green banking could be a service that helps the client handle financial dealings or operations with the assistance of a Green device. Green devices include smartphones, tablets, etc. Green banking introduces the utilization of smartphone or alternative devices to control online banking transactions whereas remote from your laptop, portable computer, or other devices, like transferring cash from one account to a different account, electricity bill payments, gas bill payments, recharge Green, online looking, etc. Green banking is service that is additional by a bank or monetary establishments that enable to its customers to control monetary or banking transactions by victimization smartphone or tablets. Green banking is accessible 24*7 for patrons for financial transactions. The bank offered Green banking services to their customers to extend a lot of customers and take advantage of these services. Green banking is one of the world’s growing and quickest Green technologies during this paper analyzes the study of Green banking awareness of customer’s perspective for Tiruvallur District.

Utilizing Blockchain Technology for Enhanced Cybersecurity in Financial Transactions

The blockchain technology has become a revolutionary new idea that has a lot of promise to make financial activities safer. This essay looks at how blockchain can be used to make financial systems safer by focusing on how it is independent and can't be changed. When it comes to standard financial transactions, monopoly comes with risks like single points of failure and being open to hacking. Blockchain solves these problems by spreading transaction records among a network of nodes, with each node keeping a log that is always up to date. This autonomous design makes sure that no one organization has access to all past transactions. This lowers the chance of scam or changing data without permission. Also, the fact that blockchain records can't be changed makes sure that financial deals are open and trustworthy. Once a transaction is recorded, it can't be changed after the fact without agreement from everyone in the network. This makes blockchain a strong tool for making financial processes auditable and accountable. Adding smart contracts to blockchain makes it even more useful for keeping financial activities safe. Smart contracts are deals that run themselves and have rules and conditions that are written into the blockchain network. These contracts handle tasks and make sure they are done correctly, which cuts down on the need for middlemen and the chance of mistakes made by people when transactions are settled. Blockchain's cryptographic methods also offer high-level security features like digital signatures and cryptographic hashing. These systems make sure that players are who they say they are and that data is correct throughout the entire transaction process. This makes the system more resistant to hacking and illegal access. This essay looks at examples and case studies of how blockchain has been used successfully in the financial sector. It shows how it can stop fraud, lower trade costs, and make operations run more smoothly.

Business strategy and stock price crash risk: The mediating role of financial constraints

The global financial crisis increased uncertainty in economic policy. Firms manage challenges through business strategies and financial constraints and deal with crash risk more proactively to overcome these impediments. This paper investigates the mediating role of financial constraints in the association between business strategy and crash risk, and the type of business strategy that influenced crash risk in Egyptian firms from 2014 to 2021. Data were obtained from financial statements and reports available in the Thomson Reuters database. A total of 792 observations were collected, representing 99 Egyptian firms. The statistical techniques employed in the analysis included ordinary least squares, modified least squares, and path analysis. The results indicate that a higher financial constraint ratio increases crash risk and has a mediating effect on business strategy and crash risk. Results show a positive impact of prospector strategy on crash risk using OLS and GLS, in line with the bad news hoarding hypothesis. Further research shows that prospector strategies have a positive effect on financial constraints. Egyptian firms have higher levels of information asymmetry, which leads to adopting a prospector business strategy and exerts a more pronounced positive influence on the likelihood of crash risk. A robustness check confirms the positive effect of financial constraints as a mediator variable on the relationship between prospector business strategy and crash risk.

Trust and management control archetypes in public-private partnerships

PurposeThis paper aims to contribute to the management control systems (MCS) changes in public-private partnerships (PPSs) by developing a conceptual archetype explaining the relationship between trust and MCSs in PPPs, and highlighting how this relationship may evolve over time.Design/methodology/approachThe paper adopts a longitudinal case study methodology focusing on a hospital built and operated under a project finance deal. The methods adopted include semistructured interviews, direct observation and internal documentation analysis. We conducted 15 semistructured interviews from 2019 to 2021. In analyzing different documents and interviews, we triangulated data to ensure solid interpretation.FindingsThe case shows how trust can take different configurations depending on the type of MCS used. The results highlight how different patterns of MCSs, about trust, can be combined to govern PPPs. The case also shows the temporal dynamics of how MCS and trust evolve at different organizational levels and how bureaucratic control matched with contractual trust and trust-based control matched with competence trust can coexist at different times and organizational levels.Practical implicationsManagers involved in PPPs will be aware of the role of different types of trust in shaping and managing the relationship between partners at different organizational levels. Furthermore, the findings could help policymakers to adopt more informed decisions and to promote practice-based trust at various organizational levels of PPPs.Originality/valueThe paper proposes a management control archetype based on bureaucracy- and trust-based patterns concerning the level of programmability of tasks, as well as defined risks.

The Impacts of Accounting Information on the Cost of Capital of a Company

The cost of capital is heavily influenced by a company's accounting information. The cost of capital is the rate of return that investors want in exchange for putting their money into a business. Accounting information has an indirect effect on society via things like disclosure and openness. Companies get more trust from investors and the public when they make their financial data easily accessible and easy to understand. Since investors will have a clearer picture of the company's financial performance, they may be more willing to lend money at a reduced interest rate as a result of this greater openness. Another abstract influence is the appraisal of financial success. Investors and lenders use financial statements and other forms of accounting information to assess a company's profitability and financial health. Investors may get a sense of a company's profitability, asset management, and cash flow capabilities by looking at the company's income statement, balance sheet, and cash flow statement. A reduced cost of capital may be possible if financial performance indicators provide a positive picture of the company's financial health. Risk may be better evaluated with the use of accounting data. Financial data is used by investors in assessing the safety of a firm. Investors may get a sense of the company's financial health, leverage, and liquidity by examining financial statements and ratios. A reduced cost of capital is more likely to be offered by investors to a firm that has a good financial position and a low risk profile. In addition to improving openness and easing the evaluation of financial performance and risk, accounting information also affects the cost of capital. The cost of capital might be reduced if investors have more faith in a company because of the transparency it displays in its financial dealings. KEYWORDS: Accounting information, Cost of capital, Transparency and disclosure, Reliable financial information, Investor confidence, Lower risks, financial performance assessment

Studying professional women footballers: A reflexive commentary on being benched from recruitment

In this reflexive commentary we provide critical reflections on the challenges of recruiting professional women football players as experienced by the researchers. We posit that the same social, systemic inequities that make continued study of women's professionalized sport so important, also generate challenges to recruiting women athletes. As we share our reflections on the difficulties we experienced throughout our recruitment process, we hope to illuminate challenges and strategies to advance sport research with professional women athletes and answer calls to amplify marginalized voices across sport studies. Namely, we identify three (inaccurate) outsider researcher assumptions that contributed to our recruitment challenges related to social, systemic inequities: (a) many professional women football players will (at some point) secure a financial sponsorship deal, (b) the football club staff would be our gatekeepers, and (c) women's football has professionalized working conditions, resources, and support. We argue that it is important to understand the challenges and gatekeepers that researchers encounter while studying professional women's sport, to address gender inequities while working towards a more socially just landscape.

Sustainable transportation perspective: how our preferences for zero-emission vehicles change through time?

Abstract The Slovenian automobile market has gained great momentum in the past decade. However, the demand contractions in the supply chain created a huge crisis in the automobile industry in Slovenia. The automotive industry's new competitive dynamics focus on green logistics, sustainability, and purchase decisions. The study aims to comparatively analyze the factors affecting consumers' automobile purchasing decisions from a sustainable transportation perspective. In the survey, we included 1502 participants to identify the most important parameters of consumer behaviour related to purchasing alternative fuel vehicles. In the regression analysis results in the first analysis, non-financial factors sub-dimensions such as the body shape and fuel type, vehicle size, and style/appearance/colour had a positive effect on purchasing decisions of zero-emission cars. The second analysis was performed 5 years after the first analysis. Moreover, the findings provide insights that non-financial factors sub-dimensions such as entertainment system, vehicle size, and vehicle capacity and financial factors sub-dimensions between the insurance group for the vehicle, finance deals, value for money, annual road tax had a positive effect on purchasing decisions of zero-emission vehicles in the second analysis. Results show that the most relevant factor for purchasing zero-emission vehicles is total vehicle price and that the segment of potential alternative fuel vehicle consumers is much higher than it has been anticipated. This study provides an overview of the current understanding of individuals' vehicle purchasing decisions.

The ‘colorblindness’ of climate finance: how climate finance advances racial injustice in cities

The interactions between climate change and financial markets are increasingly becoming a topic of study, yet the ways in which climate finance reinforces new modes of racialization in urban climate adaptation projects remain an under-represented line of questioning in both academic and policy worlds. In order to uncover myriad processes of racialization occurring within financing modes that are mobilized to solve the climate crisis, this paper focuses on three different urban deal-making spaces: Cagayan De Oro City located in Mindanao, in the southern part of the Philippines; Mexico City, the capital of Mexico; and Philadelphia, PA, situated in the northeastern corridor of the United States. Through analysis of the financial deals structuring urban climate endeavors in these three different cultural and environmental milieus, we find that the ‘colorblindness’ of climate finance both reinforces historical environmental injustices and creates new spatialities of environmental racism through its reliance on structures of racial capitalism. In doing so we also show the relevance of the racial capitalism framework beyond its theoretical heartlands.

Nexus of natural resource depletion, corruption and financial inclusion on bio-diversity loss: A systematic study on corrupt economies

In recent years, the rising trend in environmental pollution has become a leading concern, and the world is sorting out some of the best solutions. However, the depletion of a nation's NRD has a significant role in economic power. However, there are also worries about the effects of NRD on the natural world. This paper's overarching goal is to learn how ecological footprint (ECF) is affected by natural resources, corruption, and financial inclusion. Also, this is the first research to examine the interplay between the environment and context of corrupt economies while also considering human capital, economic development, and FDI. We covered the years 2000–2022, using data from the most corrupt nations in the world each year. By using second-generation econometric methods, this research verifies that all parameters are stationarity, and credible findings were achieved using cross-sectional dependence, panel unit root testing, and co-integration. The CS-ARDL test's long-run estimations show that economic progress has a beneficial effect on ecological footprint. Human capital, financial inclusion, and the depletion of natural resources all contribute significantly to better environmental quality by reducing the ecological footprint. However, empirical data reveals that financial dealings and FDI greatly contribute to environmental deterioration. We discovered similar results in the model-based robustness evaluation using " AMG and CCE-MG estimators. This research presents policymakers with the current state of the most corrupt economies and urges them to consider the critical importance of combining sound financial management and investment in people to achieve sustainability.

Human rights in international law, state responsibilities and accountability mechanisms: a case study of Iran

ABSTRACT This research presents a critical theoretical and practical re-examination of the link between human rights' issues and politics at national and international levels. The study of human rights is an inherently multidisciplinary enterprise. The paper provides an insight into the relations between diplomacy and human rights and discusses how the latter are exploited for political and commercial aims. This study focuses on the case and constitution of the Islamic Republic of Iran (IRI), and the problem of hostage taking. An internationally-oriented study and based on theoretical arguments and an empirical research approach-notably by using several real cases of ordinary individuals of foreign and dual nationalities who became hostages and the subject of political games and financial conflicts between Iran and the Western countries-the paper highlights the issue of hostage taking of individuals by a state as a political policy and prisoner swaps involving financial and commercial deals. The paper provides evidence of the substantial suffering of the hostages and their families. The paper makes an academic contribution to the literature-the unlawful act of hostage taking involving a state has rarely been discussed -and addresses the legal vacuum in international law and human rights conventions regarding the topic.

Model Return on Equity in relation to Oil Price and Loan to Deposit Ratio

This research can present an in-depth understanding of how companies and financial institutions deal with market complexity, improve financial performance, and innovate in the face of challenges and opportunities that arise in the current economic context. Using quantitative research methods with statistical regression models as analysis so that it can be used to evaluate the quantitative relationship between LDR, oil prices, and ROE, with the number of respondents of all bank issuers listed on the Indonesia Stock Exchange and submitting complete financial statements. There is a positive and significant influence between the Bank's LDR variable and ROE, both a significant and positive influence between the Oil Price variable and ROE, simultaneously also have a positive and significant effect. This result, although positive, does not mean that there needs to be improvement in management in an effort to improve results for the company.

Review Paper- Study on Central Know Your Customer (CKYC)

To Know Your Customer (CKYC) Policy is introduced in financial industry to prevent the Bank from being used by criminal elements for money laundering activities and to understand the customer and their financial dealings to manage their risks prudently. Know your customer policies are very important for identity theft fraud, Anti money laundering and terrorist financing. In order to reduce the risk of identity fraud document forgery and have paperless KYC verification UIDAI has launched its E-KYC service. In order to help investors and customers CKYC is introduced by Government of India in Feb 2017. Government of India has authorized a central Registry of Securitization of Asset Reconstruction and Security Interest of India (CERSAI) to act as, and perform the function of CKYC. KEYWORDS – Unified Customer Number, Block chain in KYC, Increase Global KYC Standard, Maintain Secrecy, Know your customer.

Barcoding banknotes: Moving towards a system addressing cash anonymity in money laundering and terrorist financing operations

The anonymity in cash transactions present a significant hurdle in financial crime prevention. The central issue in addressing illicit cashflows lies in the difficulty to distinguish between licit and illicit cashflows amongst countless daily cash transactions. Addressing the issue poses the challenge of identifying a balance between an extreme of total surveillance, which can impinge on freedoms and disrupt cash-dependant economies, and total inaction, which allows illicit flows to persist. Between these two extremes lie various middle paths, some more effective than others in striking the required balance. Through an examination of the historical landscape of money laundering, the evolution of countermeasures, and the exploitation of gaps by criminals, a technologically advanced solution is proposed. In this regard, the implementation of traceable barcodes on banknotes aims to enhance transparency and traceability in financial dealings. A barcoded system is an innovative strategy to tackle money laundering and terrorist financing. This article assesses the viability, potential impacts and challenges of this system in policy formulation and economic frameworks, contributing to the discourse on enhancing anti-money laundering and counter-terrorist financing measures.

Accounting for Uncertainty

Abstract In accordance with the theme of the Yuri Ijiri lectures, I focus on something foundational to accounting: the communication of uncertainty through accounting numbers. I do so in the context of providing information to investors about “the amount, timing, and uncertainty of future cash flows”, an objective of accounting standard setters (with emphasis added). I outline accounting principles that convey uncertainty and discuss the implications for a financial statement analysis that extracts information about uncertainty. I also show how accounting-based valuation is modified to incorporate that information. Asset pricing in finance deals with risk and uses accounting numbers to do so. I explain how that endeavor might be improved by recognizing the accounting for uncertainty. That puts accounting and finance on the same platform. Finally, I address normative issues of accounting policy for conveying information about the uncertainty of future cash flows.

Exploring the General Knowledge of Islamic Finance Principles: A Factor Analysis Study Among College Students

This study explored the foundational constructs of general knowledge concerning the principles of Islamic Finance, with a specific focus on college students majoring in Business, Finance, and Accountancy. Employing a combination of exploratory factor analysis (EFA) and confirmatory factor analysis (CFA), the research identified and validated three distinct factors shaping this knowledge domain. The first factor, named "Risk Tolerance and Permissible Transactions," looks at how well students understand financial risk and which transactions are allowed in Islamic finance. The second, "Shari'ah Foundation and Transparency," highlights the importance of Shari'ah principles and transparency in financial dealings. The third, "Riba Prohibition and Ethical Finance," strongly emphasizes the ban on Riba (interest) and unethical financial practices in Islamic finance. These factor names were chosen carefully to represent the main ideas in each category. Overall, this research contributes by creating a validated objective knowledge scale for Islamic Finance knowledge among students in Business, Finance, and Accountancy programs.
 Keywords: Islamic Finance, Knowledge Assessment, Factor Analysis, College Students, Financial Literacy

Exploring the General Knowledge of Islamic Finance Principles - A Factor Analysis Study Among College Students

This study explored the foundational constructs of general knowledge concerning the principles of Islamic Finance, with a specific focus on college students majoring in Business, Finance, and Accountancy. Employing a combination of exploratory factor analysis (EFA) and confirmatory factor analysis (CFA), the research identified and validated three distinct factors shaping this knowledge domain. The first factor, named “Risk Tolerance and Permissible Transactions,” looks at how well students understand financial risk and which transactions are allowed in Islamic finance. The second, “Shari’ah Foundation and Transparency,” highlights the importance of Shari’ah principles and transparency in financial dealings. The third, “Riba Prohibition and Ethical Finance,” strongly emphasizes the ban on Riba (interest) and unethical financial practices in Islamic finance. These factor names were chosen carefully to represent the main ideas in each category. Overall, this research contributes by creating a validated objective knowledge scale for Islamic Finance knowledge among students in Business, Finance, and Accountancy programs.

Does innovation drive mergers and acquisitions in the financial sector?

AbstractDoes innovation drive mergers and acquisitions in the financial sector? This issue is challenging because classical measures of innovation are unavailable in the financial sector. Thus, we introduce an innovation measure that can be used for financial firms. Considering US financial deals, we highlight the impact of a financial firm's innovative activities on the likelihood of becoming an acquirer or a target. We detect a ‘like buys like’ effect, implying that financial mergers and acquisitions are more likely when firms are at a similar level of innovation. We further show that this effect is associated with greater synergistic value.