Financial Discipline Research Articles

КОНТРОЛЬ ЗА ВИКОРИСТАННЯМ ДЕРЖАВНИХ КОШТІВ

The article is devoted to the study of control over the use of public funds on the basis of local budgets of Ukraine, considers the essence, principles, functions, current tasks, types, forms and methods of public financial control. The influence of state control of local budgets is revealed, the principles of public administration in the part of finances are substantiated. The purpose is to reveal the influence of state control of local budgets, the principles of public administration in the field of finance are substantiated. The control of public finances is carried out in order to ensure legality in the field of relations with special state bodies, prevention of financial violations, strengthening financial discipline in the formation, distribution and use of public funds. The role of public financial control is constantly growing, as it is an important means of administrative and legal regulation of economic, political and social processes in Ukraine, is not only a guarantee of transparency of state bodies and local governments, but also a guarantee of financial stability. Control over public funds is especially important in the field of public administration, as the effectiveness of its implementation depends on the successful development of the state economy. In addition, control over the distribution and use of public funds to the standards of public financial control will improve the coordination of regulatory bodies in managing budget processes at all levels of the budget, the implementation of control measures and management decisions. The practical application of state control, in particular the conduct of effective audits, will increase the effectiveness of control measures, create conditions for coordination of control bodies and controlled entities of state financial control, increase revenues to local budgets. The differences of the world's leading countries in terms of public financial control are presented.

Stabilization of the Turkish Economy in the Early 2000s and the Urgent Action Plan

This article discusses the stabilisation of the Turkish economy in the early 2000s, with a focus on the Urgent Action Plan (AEP) implemented by the Justice and Development Party (AKP). The AEP aimed to bring about real structural changes in Turkish economic governance, accelerate privatization, provide capital to certain productive sectors, and increase financial discipline, resulting in the radical decline of public debt. The article explores the success of the AEP and the impact of the AKP's economic policies on the country's growth, as well as the role of globalization and the European Union in the transformation of the Turkish economy. Finally, the article discusses the political communication surrounding the AEP and the international recognition of Turkey's economic performance during this period.

The Islamic financial literacy and market discipline: Does gender have the moderating role?

This study contributes to examine the effect of Islamic financial literacy on market discipline and to confirm whether gender can employ as moderating variable in this model. The primary data was collected from 93 academicians who invest in Sharia mutual funds. Based on the data analysis, this study proved that there is a positive impact of Islamic financial literacy on investment’s withdrawal behaviour which indicated the market discipline. Moreover, a multi group analysis results that Islamic financial literacy has higher influence for female Sharia mutual fund’s investors in withdrawing their investments. But, the influence of Islamic financial literacy on market discipline among gender is not significantly different, therefore gender could not employ as a moderating variable in this model.JEL: G2, G23

Policy uncertainty and bank’s funding costs: The effects of the financial crisis, Covid-19 pandemic, and market discipline

This paper examines the impacts of economic policy uncertainty (EPU) on bank funding costs using the 2001–2021 data of US banks. We document consistent evidence of a negative relationship between EPU and bank funding costs, implying lower bank funding costs during a time of high EPU, consistent with the hypothesis that economic agents tend to reallocate their assets into safer investments, such as bank deposits during high uncertainty. Large banks are likely to benefit most during high EPU when experiencing lower costs of funds compared with other banks, suggesting the “too-big-to-fail” perception of depositors. Cross-sectional analysis indicates that depositors require safer banks to pay lower rates, indicating the existence of market discipline. The cost-decreasing effects of policy uncertainty are less pronounced during the global financial crisis than the Covid-19 crisis.

Credit rationing, institutions and local public debt

This work presents a model of credit rationing under the effects of judiciary in- efficiency and criminal extraction. Under low judiciary quality and high criminality, we argue that banks are more likely to lend to the government rather than private enterprises. We argue that credit rationing increased local public debt in Mexico before coming into effect the new law of Financial Discipline for States and Municipalities in 2016. Our scientific objective is explaining the supply of bank loans to the local public sector in Mexico under low institutional quality and credit rationing. We use Panel regression analysis and also applied an Autoregresive Distributed Lag model to obtain the long term growth rates. We also used Clustering analysis in order to classify states in Mexico in terms of their debt, defaults in the industry sector, crime and judicial inefficiency rates. Our empirical analysis shows that judiciary inefficiency and criminality induced higher amounts of bank loans to state governments during the period of 2004 to 2016. We also found that defaults in the industry sector also increased the amount of bank loans to local governments in Mexico, which may explain in part that the rationed credit is redirected to the public sector. We argue that keeping the quality of institutions low may induce higher bank lending to states, so there might be little incentive to improve the judiciary and public safety. The possible solution is to improve judicial efficiency and decrease criminality in order to reduce credit rationing and subsequently ensure local public debt stability in the long term.

Indulgence, Self-Control, and Annuity Preferences: Annuity Choices by Members of the Slovak-Funded Private Pension Pillar

This paper employs data from an original survey to analyse the annuity preferences of members of the Slovak-funded private pension pillar. The focus is on the impact of socioeconomic variables as well as various behavioural attitudes upon annuitisation decisions. The research first considers some well-known behavioural factors (framing, mental accounting) and then turns to some underresearched traits (indulgence, self-control) and behaviours (compulsive shopping, saving habits) and links them to annuity choices. Moreover, the research studies alternative allocations of a lump sum and relates them to annuitisation decisions. Indulgence emerged as a significant negative predictor of annuitisation. This result likely refers to preferences towards hedonic lifestyles in early retirement. Interestingly, low self-discipline was also significant but positively related to an intention towards annuity purchases. People who are aware of their low financial discipline may introduce internal self-protection mechanisms and resort to tried and tested financial products to avoid anticipated feelings of regret and desperation. Annuitisation, in this case, is a regret avoidance behaviour.

Financing of general secondary education institutions: current state, problems and prospects

The article considers the current state of financing of general secondary education institutions in Ukraine, identifying problems in this area and outlining ways to solve them. The author describes the sources of financing of public secondary education institutions, including funds from the State and local budgets, revenues from the provision of paid educational and other services, charitable assistance, grants, and other sources not prohibited by law. The author examines the procedure for the formation and distribution of the educational subvention from the State budget to local budgets and analyses the dynamics of the educational subvention for the period 2018-2022. It is concluded that two key principles - budget co-financing and subsidiarity - are used in forming the mechanism for financing the activities of general secondary education institutions. The author identifies the problems of territorial communities in the funding of the activities of secondary education institutions, including the insufficient financial capacity of some communities; incompetence of managers and lack of experience; availability of schools with low enrolment; energy-intensive school infrastructure; high cost of providing secondary education in rural areas. The author examines the management functions of boards of trustees of general secondary education institutions, emphasizing the importance of such a function as facilitating the attraction of additional funding sources. The advantages and risks of introducing financial autonomy in general secondary education institutions are characterized. Among the benefits are the possibility of independent management of funds and property, involvement of stakeholders in the institution's financial management, the right of the institution to establish allowances and bonuses for employees, and scholarships for students. The risks include the unwillingness of institutional managers to manage finances, the likelihood of weakening financial discipline, and reducing the efficiency of using funds. The author concludes that it is premature to introduce the financial autonomy of general secondary education institutions and that taking stock of the legal framework for recognizing educational institutions as full-fledged subjects of civil law is necessary. Keywords: financing, institutions of general secondary education, educational subvention, subsidiarity, financial autonomy, boards of trustees.

THE EFFECT OF FINANCIAL COMPENSATION, JOB SATISFACTION AND DISCIPLINE ON EMPLOYEE PERFORMANCE

The purpose of the research is to examine and analyze the effect of financial compensation, job satisfaction and work discipline on the performance of employees at PT. Continental Library. PT. Pustaka Benua is a company engaged in the sale of office stationery. Financial compensation has a salary discrepancy with the 2020 UMR and no health benefits, job satisfaction is still low, employee discipline at the company is still not optimal and employee performance is not optimal. The population is all employees of PT. Benua Library with a total of 64 employees and a sample of 64 employees. The research method uses multiple linear regression analysis techniques. The research reaction is financial compensation and discipline partially affecting the performance of employees at PT. Pustaka Benua. Job satisfaction partially does not affect the performance of employees at PT. Continental Library. Financial compensation, job satisfaction and discipline jointly affect the performance of employees at PT. Continental Library.

The Credit Suisse CoCo wipeout: Facts, misperceptions, and lessons for financial regulation

The Credit Suisse CoCo wipeout: Facts, misperceptions, and lessons for financial regulation

Lending relationships when creditors are in control

Violations of financial covenants shift control rights to lenders. When borrowers have lending relationships with these lenders in control, they experience not only smaller declines in investment, but also lesser deteriorations in both firm survival probabilities and in sales. These effects are largely driven by opaque borrowers without any credit ratings. They are present where lending relationships existed already before loan issuance (ex-ante), but also where a contractual relationship without pre-issuance interaction is more mature (ex-post). Surprisingly, there is no evidence of any “dark side” of lending relationships when creditors are in control, such as an increase in interest expenses or a lesser degree of financial discipline.

БЮДЖЕТНЕ ПЛАНУВАННЯ ЯК ЧИННИК ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ФІНАНСУВАННЯ ОСВІТИ В УКРАЇНІ

The article examines the issues of budget planning as a factor in increasing the efficiency of education financing in Ukraine. Budget planning plays a crucial role in enhancing the efficiency of education financing in Ukraine. A well-structured and strategic budget is essential for addressing the diverse needs of the education sector and ensuring optimal utilization of financial resources. Transparency and openness in the budgeting process are equally vital. Providing accessible information on budget allocations fosters accountability and engages stakeholders, including educators, parents, students, and the broader community. This collaborative approach ensures that budgetary decisions align with the expectations and aspirations of those directly affected by educational funding. Targeted funding strategies should be employed to direct financial resources to priority areas within education. Whether it's investing in modern educational technologies, innovative teaching methods, or teacher development programs, allocating resources strategically can significantly enhance the overall quality of education. Financial discipline is another critical aspect. Implementing mechanisms for monitoring and evaluating the effectiveness of budget expenditures helps identify areas for improvement. This feedback loop enables continuous refinement of budgetary strategies, promoting a more efficient allocation of resources. Innovative financial instruments, such as partnerships with the private sector and philanthropic foundations, can also be explored to supplement traditional funding sources. This diversification of funding sources provides a sustainable foundation for educational development. Regular monitoring and assessment of budget outcomes contribute to a dynamic and responsive budgeting process. This approach allows for adaptability to changing circumstances, ensuring that educational financing remains effective and aligned with the evolving needs of the education sector. In conclusion, effective budget planning is integral to the enhancement of education financing in Ukraine. By prioritizing transparency, strategic allocation, financial discipline, and innovation, the education sector can achieve greater efficiency and, ultimately, provide a higher quality of education for the country's learners.

ОСОБЕННОСТИ УЧЕТА СУБСИДИЙ В АВТОНОМНЫХ УЧРЕЖДЕНИЯХ

The relevance of the article is due to the fact that modern economic conditions require improvement of the provisions of the accounting system; autonomous institutions in the Russian Federation are not only performers of state functions, but also full-fledged economic entities at both the macro- and microeconomic levels, which requires taking into account their status when improving accounting processes. In connection with the ongoing crisis trends in Russia and in the world, as well as the growth of the budget deficit, the search for ways to improve national approaches to accounting of autonomous institutions and organizations is of particular relevance. Methods were used within the framework of a systematic approach: generalization of theoretical material and scientific literature on the research topic, logical and comparative analysis to identify the features and specifics of accounting in autonomous institutions. The article substantiates that, according to scientific research, the modernization of accounting in the public sector occurs much more slowly than in others, that is, this area has great potential for optimizing public spending by eliminating existing shortcomings in this process. The tasks of accounting for subsidies by autonomous institutions are defined: the formation of complete and reliable information; timely, continuous provision of the necessary information on the receipt and use of subsidies to internal and external users; implementation of systematic control over compliance with financial discipline; identification of signs of violations and abuses in accounting in the public administration sector; providing accounting, analytical, control support for the budget system management process; generating new knowledge in public sector accounting. The rules for accounting for subsidies for the implementation of state/municipal tasks by autonomous institutions are presented. The article achieves the goal of the study: generalization and development of scientific and methodological foundations and development of practical recommendations for improving the accounting of subsidies in autonomous institutions in conditions of instability and crisis trends and the need to optimize budget expenditures.

Transformation of Financial Management Discipline in the Context of Big Data: Take Zhongkai University of Agriculture and Engineering for Example

Transformation of Financial Management Discipline in the Context of Big Data: Take Zhongkai University of Agriculture and Engineering for Example

Do Financial Consumers Discipline Bad Lenders? The Role of Disclosure Awareness

Do Financial Consumers Discipline Bad Lenders? The Role of Disclosure Awareness

Financial Market Discipline on Bank Risk: Implications of State Ownership

Financial Market Discipline on Bank Risk: Implications of State Ownership

Functional approach in the management of a tourism business enterprise

The article addresses the current problem of researching the peculiarities of the functional approach to the management of a tourist business enterprise operating in the conditions of war and develops practical recommendations for its improvement. With the help of methods of analysis and synthesis, the management functions of an active Ukrainian travel agency in the conditions of a systemic socio-economic crisis in the country are analyzed, positive aspects of management and problematic factors of development are identified, and proposals are made to improve the implementation of the functional approach in the management of the enterprise. The article suggests focusing on the planning of activities to ensure the physical safety of tourists and to create a digital information system of safe tourism with access to the Internet. The authors verify the operational efficiency of the agency, which overcame the negative consequences of the systemic crisis and is profitable in war conditions. Drafting a general business plan to coordinate operational plans and resource allocation opportunities is suggested. To overcome price shocks and take into account consumer priorities, the article proposes to introduce flexible pricing based on demand in the target market. The effectiveness of the implementation of the motivational function is confirmed by the creation of a capable team and the development of corporate relations. To increase the labor productivity of the staff, the authors suggest coordinating the remuneration based on the results of the activity according to the performance indicators and the level of motivational expectations of the staff. To increase the quality of implementation of the function of financial discipline control, the article proposes to determine the sources of cost savings and resource consumption. To ensure stable work in the conditions of a systemic crisis, the article recommends to introduce an analysis of the opportunities and threats of the external environment and the strengths and weaknesses of the agency. Prospects for further investigations are suggested to be directed towards identifying the sources of growth of the agency’s profitability and financial security management.

РЕГИОНАЛЬНЫЕ АСПЕКТЫ СОВЕРШЕНСТВОВАНИЯ МЕХАНИЗМА МЕЖБЮДЖЕТНЫХ ОТНОШЕНИЙ (НА ПРИМЕРЕ РСО-АЛАНИЯ)

The issue of subsidization of the financial system of the Russian Federation has been studied by more than one domestic author. Unfortunately, today the majority of regional economies are not able to provide themselves with their own financial resources for the implementation of tasks and goals. Interbudgetary financial flows become a topical solution to this aspect of budget relations. The authors consider the problem of improving the mechanism of inter-budget relations on the example of the Republic of North Ossetia-Alania. The article provides statistical data for the covidual and post-sovidual periods. Highlighting the issue of subsidisation of the subjects of the Russian Federation, the authors analyse the problem of centralisation of budget revenues at both levels – regional and municipal. Concluding that a more sustainable state of the budget can be increased by tax and non-tax revenues, while reducing the share of uncompensated revenues, it is necessary to unlock the economic potential of the region, as well as to strive to achieve economic growth. Separately, the authors point to the importance of financial management as a key factor. Balanced budgets of the subjects and municipalities while restoring financial discipline, a more transparent system of inter-budgetary allocations, a more diversified economic system at the level of the RF subjects are the main tasks, according to the authors, serving as drivers of budgetary improvement.

Komparativna analiza troškova sistema odbrane Republike Srbije i zemalja članica NATO-a

By analysing the current state of the budget funds that are allocated for financing the defence system of the Republic of Serbia, on the one hand, the paper presents theoretical knowledge about budget process, and, on the other hand, the comparative analysis of the costs of the defence system of our country and the defence costs of neighbouring countries and some NATO member states has been conducted. Due to the specificity of the defence financing through budget allocations, and thus strict financial discipline and control, the objective of the paper is to consider the possibility of more efficient use of public expenditure funds, both through the perspective of planning and executing budget in the defence system. Furthermore, the problems in budget execution, the necessity of good planning and adequate distribution of budget funds, as well as the importance of having a favourable structure of the defence expenditure has been emphasized, in order to improve the current situation in the Ministry of Defence and the Serbian Armed Forces. The conclusions of the conducted research indicate that a long-term success in the accomplishment of goals in terms of expenditure management and effective resolution of open items can only be achieved by defining and implementing an appropriate financial strategy

Modern Financial Tools’ Impact on Public Financial Management: The Case of Egypt

The purpose of this study is to examine the managerial impacts of applying modern public financial management (MPFM) tools in financial reform programs on the efficiency of public financial management (PFM) in developing countries, considering the case of the Egyptian reform program implemented during 2005–2015. Applying MPFM tools could improve the efficiency of PFM in developing countries if institutional factors are available to ensure their successful implementation in reform programs. The study adopted a descriptive-analytical method to describe the managerial impact of applying MPFM tools in the financial reform experiences in developing countries. It employed a case study approach on the Egyptian reform experiment to estimate the correlation between applying modern financial tools and the managerial efficiency of PFM assessed through three elements: operational efficiency, allocative efficiency, and financial discipline. The practical study used the IBM SPSS package and MS-Excel to process the data. The results found a positive correlation between the application of modern financial tools and the rate of improvement in the efficiency of PFM in the Egyptian reform program. The study developed a specific model for a deeper understanding of the impacts of MPFM tools on the efficiency of PFM. The model highlighted a strong positive correlation between the successful application of modern PFM tools and the efficiency of PFM and underscored that the availability of the required realtime financial information about governmental revenue and more control over public spending led to achieving financial discipline.

Happier on The Job: A Pleasant Experience by Logistic Employee of Logistics Surabaya

Abstract. This is a quantitative study Happier on the job is the feeling and attitude of employees towards the work they are currently engaged in. APM Logistics firm of the Surabaya branch is a company in the field of services that provides package delivery, documents, moving, and warehousing services that were founded in 1990. This study to describe the level of satisfaction obtained by PT. APM Logistik Surabaya branch in terms of financial compensation, work discipline, and work loyalty. Respondents for this study used a sample of 60 employees. The instrument collected in data collection is a questionnaire consisting of 51 statement items that must be answered by the respondent. The data analysis used is assumption test, multiple linear regression, t test and F test. This study has some variables such as financial compensation, discipline and loyalty as independent variables; and job satisfaction as the dependent variable. This study concluded that financial compensation has got a positive and meaningful effect on employee job satisfaction, work discipline have got a positive and significant effect on job satisfaction, loyalty has a significant effect on job satisfaction. Meanwhile, financial compensation, work discipline, and work loyalty simultaneously have a effect on job satisfaction. The authors suggestion companies need to take notice to the provision of proper and fair financial compensation to their employees on their workload. 
 Keywords: compensation, discipline, loyalty, satisfaction, employees.