Financial Demands Research Articles

Halls of Power: Changing Political and Administrative Culture at the Palace of Westminster in the Sixteenth Century

Abstract During the sixteenth century, the medieval Palace of Westminster went from being the most-used royal palace, where the king lived and worked alongside his administration, to becoming solely the home of the law-courts, Parliament, and the offices of state. At the same time, the numbers of individuals who came to the palace seeking governance or to take part in the business of the law-courts increased over the course of the century. While Westminster had earlier been a public venue for governance and royal display, the increasing absence of the English monarch from the palace created alternative uses. Political culture came to focus on Westminster as entirely separate from the court. This article explores how these changing uses created new forms of political and administrative culture. It examines how the administrative offices, particularly the Exchequer, were remade to accommodate changing financial demands and the increasing contact between individuals and the Crown. It argues that the repurposing of the Palace of Westminster created a distinctly different set of relationships between the Crown and the public. This gave the institutions that called the palace home the space to develop as bodies that drew their legitimacy from their representation of the community of the realm as a whole.

Monthly unconditional income supplements starting at birth: Experiences among mothers of young children with low incomes in the U.S.

Recently, U.S. advocates and funders have supported direct cash transfers for individuals and families as an efficient, immediate, and non-paternalistic path to poverty alleviation. Open questions remain, however, about their implementation. We address these using data from debit card transactions, customer service call-line logs, and in-depth interviews from a randomized control study of a monthly unconditional cash gift delivered via debit card to mothers of young children living near the federal poverty line. Because much of the impact of the intervention occurs through mothers' decisions about how to allocate the Baby's First Years (BFY) money, we argue that implementation science must recognize the role of policy targets in implementing policy, not just in terms of policy outcomes but also policy implementation processes. Further, our analysis shows that mothers experience key aspects of the cash intervention's design as intended: they viewed the cash gift as unconditional and knew the money was reliable and would continue monthly, receiving the correct amount with few incidents. Delivering funds via debit card worked well, offering mothers flexibility in purchasing. We also illuminate how design features shaped mothers' experiences. First, although they knew it was unconditional, the social meaning of the BFY money to mothers-seen as "the baby's money"-shaped their engagement with and allocation of it. Second, low public visibility of mothers' receipt of this money limited the financial demands or requests from others, potentially facilitating more agency over and a greater ability to use the money as they chose, without claims from kin.

Parent firm dividend payouts and subsidiary earnings management: Evidence from mandatory dividend policy

Despite the increasing prevalence of business group structures, earnings management within these groups has not been thoroughly explored, particularly concerning the impact of internal decision-making processes. This study fills this gap by investigating the effect of parent firm dividends on the earnings management of subsidiaries within a group. Using the establishment of China’s State-owned Capital Operating Budget System as an exogenous shock, we find that parent firm dividends significantly reduce the earnings management of subsidiaries. A mechanism analysis reveals that the improved earnings quality is primarily driven by the increased financing demand due to net capital outflow at subsidiaries rather than the agency problem mechanism based on dividend agency cost theory. Parent firm dividends primarily reduce downward earnings management and have a stronger influence on subsidiaries with shorter control chains. Heterogeneity analysis shows that this mitigating effect is more pronounced in firms with weaker external financial support and higher information asymmetry. Overall, we analyze how dividends paid by state-owned parent firms affect earnings management among their subsidiaries, offering valuable insights to business groups and state-owned entity managers involved in corporate governance.

Catalyzing the growth of green bonds: a closer look at the drivers and barriers of the Canadian green bond market

PurposeThis paper aims to examine the Canadian financial sector’s reaction to opportunities and risks created by the green bond market in a low-carbon and climate-resilient (LCR) economy.Design/methodology/approachThe authors used a concurrent mixed methodological approach that undertakes an online survey and semistructured interviews with critical green bond market stakeholders.FindingsThe most significant market driver in Canada is the reputational benefit for stakeholders, i.e. its ability to meet the high demand for sustainable finance and the marketing potential of its green credentials. The major market barriers are transactional costs, i.e. additional tracking required for reporting purposes, lack of market liquidity and identification of environmental impact or additionality. Canadian green bonds are also more likely to be evaluated on their green impact than their global market peers.Research limitations/implicationsLimitations of this study include its focus on Canada, which may exclude or not apply to drivers and barriers in other green bond markets.Practical implicationsThe paper helps create an accounting-based conceptual framework for key motivations and barriers that affect financial decision-making regarding green bonds.Social implicationsThe authors identify economic and policy-related barriers and drivers for green bonds, addressing the financing gap for the LCR economy.Originality/valueTo the best of the authors’ knowledge, this study is the first to identify and compare Canadian green bond market drivers and barriers and to examine relevant stakeholder- and policy-related approaches that can be targeted to scale this market effectively.

Effects of Family Characteristics and Work Relationship on Retirement among Teachers in Agona West Municipality, Ghana

Family characteristics and work relationships have effects on teachers’ retirement decision-making in the country. This has led to much frustrations of life for some retired teachers in Ghana. The study was guided by the following research objectives: Effects of family characteristics on retirement decision-making, the influence of work relationships on retirement decision-making and the strategies that can be put in place to improve retirement decision-making among teachers. A quantitative approach and descriptive survey design were used. The target population comprised teachers in public Basic schools in the Agona West Municipality. 150 teachers formed the sample for the study. Data was obtained using a self-developed questionnaire. It emerged from the findings that high financial demands stemming from home expenses, expectations from family members, and being first-borns hindered individuals’ ability to save and plan for their retirement. Also, it revealed that teachers in the Agona Swedru Municipal place considerable importance on their interactions with colleagues when it comes to retirement decision-making. It was found that teachers in the Agona Swedru Municipal place considerable importance on their interactions with colleagues when it comes to retirement decision-making. It was therefore recommended that retirement planning initiatives and financial education programmes should prioritize offering diverse and adaptable forms of psychoeducation and guidance to cater for the varying expectations and preferences of respondents. Educational institutions and policymakers should encourage and support peer relationships to improve retirement preparedness and satisfaction among teachers in the Municipality. Prioritize and tailor retirement planning guidance and education to address the diverse preferences and needs of respondents.

FACTORS THAT INFLUENCE DEMAND FOR SHARIA FINANCING ON CHANGES IN MSME INCOME IN SUMBAWA DISTRICT

This research aims to determine the factors that influence the demand for sharia financing on increasing MSME income in Sumbawa District (case study of customers of Bank Syariah Indonesia, Sumbawa Regency Branch). The research results are: first, the impact of Bank Syariah Indonesia's sharia system in Sumbawa District shows a significant influence on changes in income of micro, small and medium enterprises (0.000 < 0.05). The factor that causes this is that small and medium micro business actors in Sumbawa District realize that the sharia system will always bring blessings to every business they undertake. Second, the effect of promotion on changes in income of micro, small and medium enterprises in Sumbawa District in the case of Bank Syariah Indonesia in Sumbawa District did not have a significant impact (0.571 > 0.05). The cause of this is that micro, small and medium business actors in Sumbawa District cannot access the internet, in fact the internet network in some places for small, micro and medium business actors is not yet accessible, where promotion of financing products is mostly done online. Third, the influence of trust in Bank Syariah Indonesia, Sumbawa District Branch, has a positive impact on changes in the income of micro, small and medium enterprises (0.006 < 0.05). The factor that causes this is that micro, small and medium enterprises already believe in the systems and products offered by Bank Syariah Indonesia, Sumbawa District Branch, so that the bank and micro, small and medium enterprises are always on time in repaying their loans every month. Fourth, the influence of facilities and services on demand for sharia financing at Bank Syariah Indonesia Sumbawa District Branch for micro, small and medium enterprises does not have a significant impact (0.909 > 0.05). The factor that causes this is the lack of supporting capacity of human resources.

Empirical Study on the Impact of Digital Finance on Commercial Credit Allocation in SMEs

Against the backdrop of rapid digital finance development, the effective allocation of commercial credit to small and medium enterprises (SMEs) has become a crucial issue in China's economic growth. This study, based on data from Chinese listed SMEs from 2011 to 2021, examines the impact of digital finance development on the allocation of commercial credit to SMEs and its mechanisms. The findings indicate that digital finance significantly reduces both the demand for commercial credit financing and the supply of commercial credit to SMEs, a conclusion that holds even after robustness tests. Mechanism tests confirm that digital finance achieves this by easing financing constraints and reducing information asymmetry. Furthermore, digital finance exerts a heterogeneous impact on SMEs of different types and regions, leading to several pertinent recommendations.

Impact of Financial Deepening on Domestic Investment in Nigeria

This study investigated the impact of financial deepening on domestic investment in Nigeria. The time scope of the study covered the period 2005-2022. The response variable was domestic investment (DI) while the treatment variables were financial deepening indicators (broad money supply, private sector credits, and stock market capitalization. The specific objectives were to investigate the impact of credits to private sector on domestic investment in Nigeria; determine the impact of broad money supply on domestic investment in Nigeria; examine the impact of stock market capitalization on domestic investment in Nigeria; and ascertain the impact of monetary policy interest rate on domestic investment in Nigeria. The study adopted ex post facto research and employed the ARDL technique to analyze the data. Diagnostics and stability tests were applied (unit root, CUSUM and CUSUM of squares). the findings of the study indicated the series to be stationary but of mixed order 1(0) and 1(1); while the cointegration test showed evidence of long-run relationship. The long-run coefficients (of the ARDL) estimation indicated broad money supply has significant positive impact on domestic investment; private sector credit has significant positive impact on domestic investment; and the stock market capitalization has significant positive impact on domestic investment. However, the interest rate indicated to be negative on domestic investment. The policy implication of these findings impinges on government and authorities in the financial sector to develop a roadmap to further deepen the financial space to drive growth in domestic investment. Based on the findings, the study recommended that the financial authority should strategize to satisfy the demand for business investment funds by expanding the broad money supply and the private sector credits. Also, the monetary policy interest rate should be reviewed down in order to reverse its negative effect on investments.

External financing, corporate governance and the value of cash holdings

This study investigates the role of corporate governance in the deployment of internal resources when access to credit is hampered and external financing is costly. The extant literature has focused on the rise in cash holdings amongst firms, but little is still known about when and under what conditions firms deploy and use accumulated internal resources. Using a panel data of 1,599 U.S firms for the period 2004 to 2016, the 2008 financial crisis as a quasi-natural experiment and a difference-in-difference estimation strategy, we examine how managers deploy and allocate cash reserves and excess cash. We find that the propensity to invest out of pre-crisis cash reserves is highest for weakly-governed firms and that these firms finance additional investment using short-term debt and allocate a higher fraction of post-crisis excess cash towards building up cash balances. Contrastingly, well-governed firms have a higher propensity to allocate excess cash towards increasing the value of pledgeable assets and deploy any accumulated cash balances to reduce short-term debt financing. Our findings are important as they reconcile the flexibility and the spending hypothesis of cash holdings, showing that well-governed firms trade-off the cost of cash holdings against the benefit of minimizing future demand for costly external financing; effectively hedging against foregoing profitable future investment opportunities.

The Dilemma of Green Finance Development and the Path Analysis of Promoting Economic Growth

In order to address the financial demands of low-carbon development, the financial sector has developed green finance. It is a financing channel for the green economy. Green finance is helpful in maximizing resource allocation and fostering a transition to a low-carbon, environmentally friendly society. The rapid growth of green financing is advantageous for the promotion of high-quality economic development in light of the "dual-carbon" aim. Based on an examination of the current state of China's green finance growth, this study concludes that the laws and regulations governing green finance at the moment are not sound, the lack of effective incentive mechanisms for green finance, the lack of specialised talents, green product innovation is insufficient and other problems. Based on this, this paper proposes a path choice to help green finance improve economic development by improving the construction of laws and regulations, creating an efficient green financial incentive mechanism, and accelerating the diversification and upgrading of green products.

Mendeteksi Faktor-faktor Pressure Terhadap Kecurangan Laporan Keuangan Menggunakan Artificial Neural Network

Fraudulent financial statements are the result of misstatements resulting from intentional acts or omissions, which could materially mislead readers of the financial statements. The focus in this research is to determine the most important pressure factors in detecting fraudulent financial statements. Pressure is one of the fraud risk factors in the fraud triangle. Pressure is a condition felt by management due to incentives to commit fraud, consisting of: financial stability by proxy (GPM, ACHANGE, SCHANGE, CATA, SALAR, SALTA, INVSAL), external pressure (LEV, FINANCE, FREEC), personal financial need (OSHIP), and financial target (ROA). Data collection method using secondary data on the manufacturing sector firms that are publicly listed on the Indonesia Stock Exchange in 2017-2021. The research method used is quantitative and the sampling method uses a purposive sampling technique, obtained 137 sample companies with 685 total data observed. Data were analyzed using an Artificial Neural Network. The findings indicated that the gross profit margin (GPM), cash flow from operating to total assets (CATA), demand for financing (FINANCE), leverage (LEV) and return on total assets (ROA) is the most important proxy in detecting fraudulent financial statement, while other proxies are not too important in detecting fraudulent financial statements.

Пушкин. Семья. Деньги

Alexander Pushkin wrote that “spirit of literature” depends, at least in part, “on writers’ financial situation.” These words can justly be applied to Pushkin himself. His life largely depended on material conditions on his marital status and financial relations with his relatives. The article studies this side of his life, which until recently has not received due attention. As a young man, Pushkin enjoyed substantial support of his parents. Before Pushkin’s marriage, his father passed 200 peasants over to his son. Pushkin pledged these peasants obtaining 40,000 roubles as a loan. Of this money, he lent 11,000 roubles to Natalia Ivanovna Goncharova, his future mother-inlaw, to provide her daughter, Natalia Nikolaevna, with dowry. Later, the Goncharovs granted to Natalia Nikolaevna only minimal financial support. Pushkin never saw his loan returned. A constant source of financial troubles in Pushkin’s family was his brother, Lev. Pushkin was on friendly terms with his sister, Olga, however, her husband, Nikolay Pavlishchev, constantly pestered him with financial demands. Pushkin endeavored to settle his family’s money problems trying to manage his parents’ estate in Boldino, but without much success. Goncharova’s sisters, Ekaterina and Alexandra, since 1834 lived with Pushkin’s family. They received money from their brother and partially compensated living expenses. Georges Dantès, who married Ekaterina in January 1837, got 10,000 roubles as his marriage portion. Pushkin’s income consisted of his civil servant’s salary, peasant servage and his earnings from literary and publishing activity. The article demonstrates that Pushkin’s living expenses and family spending were approximately 429,000 roubles. Undoubtedly, lion’s share of this money was spent after Pushkin’s marriage. During his last years, Pushkin was constantly under the stress caused by money matters. Astonishing as it may seem, under such difficult conditions he managed to create great pieces of literature.

An Empirical Study on the Efficiency of China's Convertible Bond Market

Since 2017, with the increased demand for margin financing and securities lending in the capital market and the improvement of relevant regulations, China's convertible bond market has experienced a boom. As of March 9, 2024, China has issued a total of 823 convertible bonds, amounting to 1.3 trillion yuan. The stock of convertible bonds has expanded from 24 bonds totalling 55.9 billion yuan at the end of 2016 to 553 bonds totalling 853.3 billion yuan. The importance of convertible bonds in the capital market has become increasingly prominent, becoming an essential part of financial tool diversification and market development. However, academic research on the convertible bond market is relatively scarce, mostly focusing on pricing mechanisms, financing effects, and the impact on the underlying stock prices, with little attention paid to the market itself. This paper uses runs tests, autocorrelation tests, and variance ratio tests to analyze the efficiency of China's convertible bond market. By examining whether the daily returns of the convertible bond index follow a random walk, the paper tests if the market is weak-form efficient. The results show that China's convertible bond market has not reached weak-form efficiency. Subsequently, a new index sample was created from the top ten convertible bonds by trading volume in May 2024, and its daily returns were tested for adherence to the random walk model. The results were compared to the overall market's convertible bond index returns in the same period of 2023 to identify factors influencing market efficiency, providing directions and insights for future research.

Export Expansion, Demand for External Finance, and Regional Financial Development: Evidence from China

Export Expansion, Demand for External Finance, and Regional Financial Development: Evidence from China

Examining the Relationship between Risks Associated with Public-Private Partnership Projects in Emerging Markets Using Fuzzy Cognitive Mapping Methodology

Objective: The adoption of Public-Private Partnerships (PPPs) has sparked a surge in research interest in this area in recent years. This study aims to identify and prioritize the risks associated with PPP projects. Methodology: A questionnaire was designed to assess the significance of each of the 35 research variables (risks) derived from the literature in explaining the risks associated with PPP projects. The respondents included experts in risk associated with PPP-based projects in emerging markets, specializing in policy making, production, sales, and export. These experts were considered knowledgeable due to their practical experience in management, expert, academic, and research activities related to risks and emerging projects and markets. Using purposive sampling and following a snowball method, semi-structured in-depth interviews were conducted with 19 experts until theoretical saturation was achieved. Findings: The results were analyzed using the methodology of fuzzy cognitive maps, and the relationships between the research factors were examined. Conclusion: The analysis revealed that financial constraints risk, demand risk, and government support risk are of high importance in the context of PPP projects.

Research on Highway Maintenance and Management Cost Based on Life Cycle Cost Analysis

With the rapid development of China’s highway construction, the huge demand for funds and the lack of financial strength of the contradiction is increasingly obvious, can effectively control the maintenance costs, highway operators to obtain sustainable development advantages of the key factors. This paper measures the highway maintenance and management costs including carbon emission costs based on the perspective of life cycle cost analysis. Based on the perspective of life cycle cost analysis, prediction models are developed for each component cost of highway maintenance and management costs. The carbon emission costs generated during the operation duration of highways are also included in the life-cycle costs, and the calculation model is proposed for the strategy of “30∙60 carbon target” in China. In the example analysis, the carbon emission cost of new energy vehicles is only 3/4 of that of fuel vehicles in the driving phase; more than 90% of the carbon emission is generated by the driving vehicles.

Project finance through Infrastructure Investment Trust: Legal and regulatory analysis

Structured finance, private equity, and public offerings drive a new global real estate and infrastructure age. Given the necessity for increased capital in funding infrastructure projects, a range of equity instruments can be employed to attract institutional investors in both advanced and emerging economies. In recent years, infrastructure sectors, including roads, highways, ports, power, and real estate, have seen increased financial demand and investment trusts have become critical in meeting India’s infrastructural needs. Especially in India, Infrastructure Investment Trusts (InvITs) play a vital role in establishing a well-balanced risk management system, which is essential for addressing infrastructure needs and fulfilling the financial requirements of developers. InvITs were established under the Securities and Exchange Board of India (SEBI) Regulations, 2014, to attract global and local long-term investments for public-private partnership (PPP) and infrastructure projects and to fill gaps in traditional project financing. Despite initial expectations, few projects have utilized this structure since its inception. The author’s review, incorporating doctrinal legal research, analyzes the regulatory framework surrounding InvITs in India. The paper contributes to the literature, emphasizing evidence of India’s programmatic approach to enhancing infrastructure financing and showcasing structural and financial reforms in InvITs governance as integral components of the nation’s strategy.

Implementasi Peraturan Bank Indonesia tentang Risiko Pembiayaan Bank Syariah Indonesia (BSI) di Demak

<p><em>Risk management is crucial in organizing and implementing decision-making rules regarding customer financing. The analysis of all decisions made by the bank must be carefully planned and managed to avoid a higher incidence of non-performing loans, especially if the characteristics of consumers are not thoroughly observed, which is a part of the business unit facing management problems/risks such as murabahah financing. Risks arise due to dishonesty and economic difficulties of customers in transactions. Leaders, bank managers, and all divisions of the bank are expected to have the ability to reduce risks to achieve maximum profit orientation. The existing problems can be analyzed in terms of credit risk and liquidity risk regarding decision-making by management, the sequence of assets, and liabilities that must be considered to minimize emerging risks. The research method used is the qualitative descriptive approach. The results of this study show that the credit risk management applied by BSI in Demak is capable of setting limits on the losses of a market-risky transaction. PT. BSI KCP Demak, in relation to liquidity risk, strives for regular payments for consideration of existing exchange rates, thus being able to condition and meet customer financing demands.</em></p>

The influence of return investment on enterprise financing cost

In this paper, the influence of return investment on the financing cost of enterprises is deeply studied, and several key factors related to it are discussed. Firstly, from the perspective of regional differences, this paper analyzes the influence of financial market characteristics, regulatory environment and tax policies in different regions on corporate financing decisions. It is found that fully considering regional differences will help enterprises to formulate financing strategies for return investment, reduce costs and improve efficiency. Secondly, by digging deep into the interaction between enterprise strategy and financing, it reveals how enterprise strategic choice shapes financing structure and its influence on financing cost. The choice of different strategies may lead to the difference of financing demand, and the synergy between the long-term stability strategy and financing cost highlights the complex relationship. Furthermore, from the perspective of global financial market, this paper discusses how enterprises can reduce costs through flexible financing by taking advantage of the opportunities of global financial market. The in-depth analysis of the factors of global financial market, such as exchange rate risk, interest rate difference and capital flow, enables enterprises to better grasp the financing opportunities on a global scale. Finally, suggestions for future research are put forward, including in-depth study of regional and industry differences, attention to the impact of emerging technologies on financing, and more interdisciplinary research methods.

The Problems and Solutions of the Supply Chain Financing of the Enterprise from the Perspective of the Bank

Supply chain finance is one of the key topics in today's research. Recently, the number and size of enterprises of various types have increased, and the demand for financing has grown significantly. At the same time, banks are providing supply chain finance services to enterprises to meet the demand for enterprise financing. Some researchers have found that banks play an important role in the supply chain finance business, and the amount of financing is also increasing. However, there are still some unresolved problems in the process of enterprise financing by banks. Therefore, this study focuses on the difficulties in the process of enterprise financing from the perspective of banks and the countermeasures to solve them. The research methodology of this paper is as follows: firstly, to collect the transaction data of Ping An Bank's supply chain financial services in the past ten years, and secondly, to analyse the data and identify the problems in the financing process from the changes in the data. It is found that the current Ping An Bank has problems such as financing cost is still high, it is difficult to guarantee the financing security and transaction transparency, and the financing mode innovation is insufficient, and these problems also limit the further development of the enterprise. In order to better improve the domestic supply chain financial system, the government, enterprises, banks and other parties should work together to overcome the current difficulties.