Financial Expertise Research Articles

Assessment and management of costs for renewable energy investments in Zambia using a novel mixed method.

This paper investigates strategies for managing costs in low-CO2 renewable energy (RE) projects, with a focus on enhancing investment efficiency. The study develops a novel mixed-method framework that integrates Shapley rates, TOPSIS, and Pythagorean fuzzy (PF) DEMATEL to identify effective cost-control tactics. Data is sourced from financial reports, project records, and expert evaluations involving three managers from the energy sector with over two decades of experience in renewable energy investments and CO2 emission reduction. The framework's precision is tested through the VIKOR technique and sensitivity analysis, using five scenarios where the weighting outcomes of criteria are adjusted. Findings reveal that solar energy consistently offers the most cost-effective solutions, while consumer prioritization significantly improves the viability of wind energy investments. The results also emphasize the importance of workforce development in solar energy projects and collaborative cost-control strategies to enhance project success. The study recommends that investors focus on high- or low-level collaborative approaches for solar energy due to its lower associated costs compared to other options. These insights can guide policymakers and investors in optimizing renewable energy investments and enhancing collaboration to reduce CO2 emissions.

Building a theoretical framework for financial risk management in emerging markets: Applying global best practices to the oil and gas industry in developing economies

Financial risk management is crucial for the sustainability and growth of the oil and gas industry in developing economies, where volatility and regulatory uncertainties present significant challenges. This abstract explores the construction of a theoretical framework for financial risk management, adapting global best practices to the specific contexts of emerging markets within the oil and gas sector. In developing economies, the oil and gas industry faces unique risks such as geopolitical instability, currency fluctuations, and regulatory changes. Effective financial risk management mitigates these risks through proactive strategies that balance risk exposure with strategic objectives. Adopting global best practices involves the integration of comprehensive risk assessment methodologies, scenario planning, and hedging techniques tailored to local market conditions. Key components of the theoretical framework include risk identification through comprehensive analysis of market, operational, and financial factors. This approach enables oil and gas companies to anticipate and mitigate risks before they escalate, ensuring financial stability and resilience in volatile environments. Furthermore, the application of global best practices in financial risk management fosters transparency and accountability, enhancing investor confidence and facilitating access to capital. By aligning risk management strategies with international standards and benchmarks, developing economy oil and gas firms can navigate uncertainty more effectively, thereby optimizing operational performance and sustaining long-term growth. However, challenges such as limited access to sophisticated financial instruments and expertise may hinder effective implementation. Overcoming these barriers requires capacity building, collaboration with experienced partners, and continuous adaptation of strategies to evolving market dynamics. In conclusion, building a theoretical framework for financial risk management in the oil and gas industry in developing economies is essential for mitigating volatility and maximizing opportunities. By applying global best practices tailored to local contexts, companies can strengthen their resilience, attract investment, and drive sustainable development in emerging markets.

Market Volatility from a linear Perspective: Trend Forecasting for Business and stock movements Author’s Information

lives. From the simplest transactions such as buying groceries to the complex mechanisms of global markets, finance touches almost every aspect of our economic interactions. The term “finance” emerged at the end of the nineteenth century and became increasingly important as economies developed and expanded. A key element of finance is the technical analysis of stocks, an indispensable practice for financial experts and investors. The method uses historical data and statistical techniques to forecast market trends. By scrutinizing past price movements and trading volumes, technical analysts can uncover patterns and signals that guide strategic decisions, risk management, and portfolio optimization. This analytical approach helps not only in identifying market trends, but also in identifying key support and resistance levels, which are essential for effective trading timing. Therefore, technical analysis is a powerful tool that enables investors to deal with the complexity of financial markets with greater confidence and accuracy.

Private banking market developments: Evidence from Hungary

Private banking institutions serve the financial sector’s wealthiest clientele via a dedicated value proposition. Based on the relevant tendencies and statistics, a remarkable expansion can be outlined since the mid-1990s. The aim of this study is to elaborate the Hungarian private banking market’s development as a case study. The paper also intends to add to the literature on this unique segment of the financial market. Based on the available statistics, the analysis primarily focuses on the Hungarian private banking market’s rapid development process. This can be underpinned by the clientele’s savings, number of accounts and respective segmentation limits of the institutions. Referring to the amount of savings, a correlation analysis indicates significant co-movements with specific social and economic variables. The growth rate of the Hungarian clientele’s savings outperformed the respective indicator in Western Europe during the review time period (2007–2020). The current paper also includes a section that summarises general challenges that private banking managers need to address during the development process. Generally, the literature on private banking can still be considered scarce, whereas there is a lack of studies on the Central-Eastern European region. The analysis of the Hungarian sector’s development path can serve with relevant information to any financial expert in the field.

Boardroom tenure, financial expertise and bank performance: a nonlinear dynamic framework

ABSTRACT This research investigates the influence of boardroom tenure and financial expertise on US bank performance in a nonlinear dynamic framework. To this aim, we utilize a sample of 305 banks during the 2010–2021 period, and we implement three empirical methodologies: GMM analysis, threshold technique, and quantile approach. Our findings reveal that the individual and interaction effects of boardroom financial expertise and tenure on bank performance are positive. Also, we provide evidence of an inverted U-shaped relation between boardroom tenure and bank performance, and between the board’s financial expertise and bank performance. Moreover, threshold analysis shows the presence of threshold effects in the relationship between boardroom tenure, expertise, and performance. Quantile results demonstrate that boardroom financial expertise improves the performance of high-performing banks. In contrast, boardroom tenure enhances the performance of low-performing banks but diminishes the performance of their high-performing counterparts.

The Effect Of Audit Committee And Capital Structure On Financial Performance In Energy Sector Companies Listed On The Indonesia Stock Exchange

The purpose of this study is to obtain empirical evidence regarding the influence of independent variables consisting of audit committee size, audit committee independence, audit committee financial expertise and capital structure on financial performance. The companies used in this study are energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2018-2023. The number of research samples was 17 companies with a total of 102 data that met the criteria using the purposive sampling method. The results of the study obtained are that the size of the audit committee and capital structure have a positive significant effect on financial performance. Meanwhile, the variables of the independence of the audit committee and the financial expertise of the audit committee have no effect on financial performance. This study builds on previous research by adding capital structure variables as independent variables. The implication of this research that has been carried out is to provide direction for financial managers in terms of selecting competent audit committee members and paying attention to the management of the capital structure in order to achieve the company's goals. For investors, it is best to choose a company that has an effective audit committee and a balanced capital structure.

The multilevel determinants of overlapping membership on board committees: Evidence from Chinese banks

This study manually collects data on 4090 board committee members from 36 listed banks in 11 regions of China from 2007 to 2020, uses a hierarchical linear model, and integrates institutional and resource dependence theories to examine the multilevel determinants of overlapping membership on board committees. The results show that low legalization and the absence of chief risk officers promote overlapping membership on board committees. Directors who have financial expertise, are shorter-tenured, and do not have social relationships with senior leaders sit on more board committees. Further analysis shows that information and resource needs are more likely to drive overlapping membership on board monitoring committees, and independent directors with lower information acquisition costs sit on more board committees. The moderating analysis between multilevel factors shows that legalization and the presence of chief risk officers substitute for, while religion and board interlocks complement director-level information and resource needs.

Does financial expertise influence Islamic bank risk-taking?

PurposeThis study investigated how the financial expertise of the board of directors, risk management committee (RMC), audit committee (AC) and Shariá Supervisory Board (SSB) influences the risk-taking of Islamic banks.Design/methodology/approachThe study utilized unbalanced panel data for a sample of 43 full-fledged Islamic banks from 15 countries over 12 years (2010–2021). We employed feasible generalized least squares (FGLS) and heteroskedastic panels corrected standard errors (HPCSE) regression regressions as the primary estimation methods and used a two-step system generalized method of moments (GMM) estimator for robustness checks.FindingsThe results indicate that board financial expertise decreases insolvency and credit risks. Similarly, AC financial expertise and SSB financial expertise reduce insolvency and portfolio risks but increase credit risk. In contrast, RMC financial expertise raises insolvency risk. The remaining relationships are statistically insignificant.Research limitations/implicationsDue to the lack of disclosure regarding the educational and professional background of the board and committee members in the annual reports of some Islamic banks, this research used a sample of only 43 full-fledged Islamic banks operating in fifteen countries from 2010 to 2021.Practical implicationsThe findings can assist both local and international regulators in revising corporate governance codes and risk management guidelines in such a way as to ensure that the financial experts appointed to the board, AC, RMC and SSB, are capable of controlling excessive risk-taking behavior in Islamic banks.Originality/valueThis study contributes to the literature by providing comprehensive empirical evidence that corporate governance financial expertise influences the risk-taking behavior of Islamic banks.

Shifting risks back to the state? Flood insurance and responsibility in the face of climate change in Australia

In Australia, with its neoliberal policy tradition, responsibility for dealing with severe and extreme weather events such as floods and bushfires has mainly been left to individual households and insurance markets. With the growing number of extreme weather events, existing institutional arrangements and behavioral patterns are challenged. Individuals have difficulties to reliably assess and manage knowledge about such climate change related hazards. In response to the growing uncertainties of rising costs due to increasing flooding and bushfire events, insurers raise their premiums for house and contents insurance or even withdraw from insuring high-risk areas altogether. Based on semi-structured interviews with 26 (re)insurance, legal, financial, and urban planning experts conducted in 2022, the study provides empirical insights in the still under-researched question of how responsibilities are understood and attributed amongst different stakeholders in the context of changing climate. The findings show that extreme weather events and the individualization of risk lead to new, complex patterns of sharing responsibilities amongst banks, insurers and the different governmental levels with a stronger emphasis on state regulation.

Relationship between the composition of the audit committee and earnings quality in Tier One banks in Nairobi City County, Kenya.

This study investigates the relationship between audit committee composition and earnings quality in Tier One banks in Nairobi City County, Kenya. The composition of audit committees, particularly the presence of independent directors, financial experts, and industry experts, is hypothesized to significantly influence the quality of reported earnings. Using a sample of six Tier One banks over the period 2016-2021, this study employs a correlational research design to examine this relationship. Data was collected through questionnaires administered to 90 respondents across operational, middle, and lower management levels, with a response rate of 67%. The study utilized descriptive statistics, correlation analysis, and multiple regression analysis to analyze the data. Key findings indicate a positive and statistically significant relationship between audit committee composition and earnings quality. Specifically, the presence of independent directors (r = 0.38, p < 0.05), financial experts (r = 0.29, p < 0.05), and industry experts (r = 0.26, p < 0.05) on the audit committee were all positively correlated with measures of earnings quality. The regression analysis further confirmed these relationships, controlling for other audit committee characteristics such as size and meeting frequency. These findings suggest that the composition of audit committees plays a crucial role in enhancing the quality of financial reporting in Tier One banks in Kenya. The study recommends that regulatory bodies and bank management prioritize the appointment of independent directors with relevant financial and industry expertise to audit committees. This research contributes to the existing literature on corporate governance in the banking sector and provides practical implications for improving financial reporting quality in emerging markets.

Financial Literacy: Identification of the Challenges, Needs, and Difficulties among Adults Living in Rural Areas

Financial literacy plays a crucial role in individuals’ decision-making processes. The paper aims to thoroughly identify the financial literacy needs and challenges of adults with low financial literacy living in rural areas. The paper presents the results of a focus group study conducted among a target group (35 people) and interviews with financial experts (14 people) in the first quarter of 2023. The study allows us to identify common areas of financial knowledge crucial for adults with low financial literacy living in rural areas. The study was conducted in seven European countries as part of the Erasmus+ project “Learning by Experiencing Escape Rooms: Financial Literacy for Adults (FLER)”. Key findings from the study revealed that participants exhibited low awareness of financial fraud and expressed a need to protect personal information when using digital platforms. There was a clear demand for improved knowledge in certain areas, such as budgeting, emergency funds, balancing risk and reward, and planning for retirement or long-term savings. Participants consistently viewed gamification as a valuable tool for enhancing their understanding of financial topics. The contribution of our study is that we narrow the research gap on the needs and challenges related to financial literacy among rural residents. The results will help pinpoint specific areas of financial knowledge and competencies that are particularly important for adults with low financial literacy. Moreover, these insights are crucial for developing educational content integrated into a virtual escape room to improve financial literacy through engaging, scenario-based learning.

Recrafting the accounting curriculum to enhance employability of graduates: A Ghanaian case

This paper examined the need to update the accounting curricula in Ghanaian universities to address the issue of unemployment among accounting graduates, particularly in the context of the fourth industrial revolution (4IR). A qualitative approach involving document analysis and in-depth interviews was employed. Both purposive and snowball sampling methods were used to select a diverse group of participants, comprising government officials, accounting academics, employers, and graduates for the interviews. Data were analyzed using thematic review procedures. The study established the need for substantive changes in the accounting curricula in Ghanaian universities to teach 21st-century multi-disciplinary skills, balance practical and theoretical skills, provide a comprehensive range of financial and management accounting expertise, combine academic and professional credentials, and uphold strong ethical standards and integrity. Substantial modifications must be undertaken to the accounting curriculum to effectively address the issue of unemployment among accounting graduates. The findings require a stronger collaboration among government, academics, employers, graduates, and other interested parties in accounting to create an accounting curriculum that will focus on 21st-century skills and adequately blend theory and practice to reduce unemployment among accounting graduates.

Bridging governmentality and economization: temporality as a financialization device

ABSTRACT Reflecting and reinforcing the financialization of everyday life, non-profit social service organizations, the primary deliverers of benefits and services in the US, are increasingly incorporating financial education and empowerment into their service repertoires. In this article, I examine and compare how financial educators in two organizations that target different populations/problems – women in (economic) transition and chronically/intergenerationally poor people – give financial advice to their clients. I draw a parallel between what Foucault calls the ‘repressive hypothesis’ and claims by personal finance experts and educators that we are silent about money. I suggest that these claims amount to a ‘money repressive hypothesis’ that gives experts what I call an ‘advisor’s benefit’: the appearance of being freed from silence about money and thus able to liberate others from silence and steer them toward financial wellness. I show that financial educators perform this benefit through temporal frames – meaningful ways of intersubjectively organizing experience in reference to time, that invite different levels and forms of attention to the past, present, and future – of their clients’ problems. Bridging literatures on governmentality and economization, I contend that these temporal frames are disciplinary financialization devices that act in connection with sociocultural constructions of populations/problems to assemble financial subjectivities.

Mergers and Acquisitions in the Banking Sector: A Systematic Literature Review

Mergers and acquisitions (M&A) have developed into a powerful strategic tool for consolidating banks to boost their capital bases, grow their businesses and bring about financial stability. Since the 1990s, the number of M&As has dramatically increased around the globe. This study attempts to provide a systematic review of recent M&A literature that has examined the different themes of M&As and their impact on the performance of the banking sector with an emphasis on 2013–2023. The objective of the study is to identify the important research gaps and provide direction for future research. Thus, it shows the past and recent status of M&A literature worldwide. The review has identified different themes of M&As, which include financial and operating performance, integration of technology, geographic strategies, corporate governance, cross-border M&As, size of banks, shareholders’ return, risk and loan quality, expertize and ownership. The findings indicate that research on M&As from the financial and operating performance perspective provides inconclusive results. Recently, research on cross-border M&As and integration of technology has been increasing as it provides a competitive edge to the acquirer. Results also suggest that the market considers the merger news positively for target banks, and geographic diversification and hiring financial experts in M&As improve the performance of the banks.

Diversity, Equity, Inclusion, and Belonging Framework in the Cultivation and Consumption of Kalanamak Rice: A Case Study

This research article examines the dimensions of Diversity, Equity, Inclusion, and Belonging (DEIB) in the cultivation and consumption of Kalanamak rice (KNR), a heritage and indigenous agricultural product of India. It explores the historical and contemporary roles of KNR in promoting or hindering DEIB within its cultural and agricultural contexts. The research is a unique attempt to construct the DEIB framework in KNR by using secondary resources and qualitative personal interview data, applying the grounded theory approach. The study provides insights into a rarely studied heritage/indigenous crop in India concerning the DEIB framework in its cultivation and consumption. The case study of KNR indicates that the equity and integration of marginal communities in KNR fall short of the desired level. Nonetheless, there is an acknowledgment of the necessity for progress in establishing a DEIB framework. Challenges such as insufficient financial resources and expertise, stemming from a prevailing power and privilege imbalance, are a threat to DEIB in KNR and need to be addressed by policymakers for the benefit of stakeholders. The article also highlights some of the government interventions to improve the DEIB of the KNR farmers and communities.

Bank audit committee financial expertise and timely loan loss recognition

AbstractThis study investigates the effects of audit committee financial expertise on the timeliness of banks' loan loss provisions. I employ two regulatory shocks that mandated audit committee expertise—the Federal Deposit Insurance Corporation Improvement Act in 1991 (FDICIA) and a modified listing standard for NYSE and NASDAQ firms in 1999—as quasi‐exogenous settings to investigate the effects of audit committee financial expertise on the timeliness of loan loss provisioning. Using a difference‐in‐differences research design, I find that the timeliness of loan loss provisions increases with audit committee financial expertise both for the FDICIA treatment group, which had larger banks than the control group, and for the NYSE and NASDAQ exchange treatment group, which had smaller banks than the control group. Further, I find that the results are stronger for banks that have lower regulatory scrutiny, are audited by Big 4 auditors, and do not have staggered boards. Finally, I find that audit committee financial expertise decreases discretionary loan loss provisions and financial restatements. Overall, these findings suggest the importance of audit committee financial expertise in loan‐related matters, which is particularly relevant in the context of the recent Current Expected Credit Losses implementation.

Are GPTs the Answer to Small Clinics’ Digital Struggles? A Comprehensive Implementation Study

Small clinics in North America often struggle to keep pace with the digital transformation sweeping the healthcare industry due to limited financial resources and technological expertise. This digital divide has become more pronounced with the increasing reliance on digital solutions, such as online booking systems and telehealth services, exacerbated further by the COVID-19 pandemic. This paper evaluates whether Generative Pre-trained Transformers (GPTs), introduced by OpenAI, can effectively bridge this gap by providing a cost-effective and efficient solution for small clinics. We detail the implementation of a GPT-based online booking system tai lored to the needs of small clinics. The methodology includes a flowchart of the system’s components and descriptions, supplemented by code and scripts in the appendix. Our findings show that GPTs can significantly improve booking efficiency, reduce administrative workload, and enhance patient experience. However, we also identify drawbacks such as technical issues and the need for staff adaptation. We discuss potential issues, including error handling, privacy concerns, and appointment conflicts. The paper concludes with recommendations for small clinics on leveraging GPT technology to enhance their digital capabilities, ultimately aiming to provide more efficient and accessible healthcare services.

Exploring the Impact of FinTech Innovations on the U.S. and Global Economies

The advent and propagation of the Financial Technology (FinTech) in the recent times has brought huge transformation on the global financial services industry, providing it with much-needed space for creativity as well as credit to many. This essay discusses the FinTech innovations prism, analyzing their influence on the US and global economies at large. The purpose of this discussion is to provide a nuanced perspective on the place of FinTech within the context of foreign economic circumstances. Via a rather stringent technique which is comprehensive methodology that illustrates the benefits of FinTech market both developed and developing countries, the case study focuses on the attributes of market efficiency, accessibility as well as the challenges in regulation which has been brought forth by the fast technological interventions. Study showed that FinTech is definitely among the factors that drove the progress of financial services in the aspects of efficiency and inclusivity. The influx of new technologies also lead to the complex regulatory challenges that required coordinated global kit of respond. These consequences create high interest for officials, financial experts and researchers who abide the sweeping winds of changes within financial services sector fueled by the advanced innovations. The research does not only explore the gaps between the emerging technologies received among different economic environments but also, it forecasts what the future trends of this field will be that can shape the future of the economy.

Studi Kualitatif terhadap Perdagangan Ekspor dan Impor dalam Kerangka Ekonomi Syariah: Kajian Prinsip dan Praktik

This study aims to explore the application of Sharia economic principles in export and import trade through a qualitative approach. Sharia principles such as the prohibition of riba, gharar, and maysir, as well as fairness and transparency in transactions, are examined in the context of international trade practices. Data were obtained through in-depth interviews with traders, Sharia practitioners, and financial experts. The results show that despite challenges such as riba-free financing and currency fluctuation risks, Sharia-based solutions like salam contracts, murabahah, and wa’ad methods can help overcome these obstacles. This study highlights the potential of Sharia economics in fostering more ethical and sustainable international trade. With the growing global interest in ethical trade, Sharia principles have the potential to play a significant role in the future of international commerce.

Current status, challenges and analysis of financial investment for students: A case study of Vietnam

In the dynamic landscape of global finance, the necessity for financial literacy has become increasingly prominent, especially among younger generations who face unprecedented financial risks and complexities. The paper outlines the critical role of financial education within school curricula, emphasizing its importance in preparing youth to navigate the complexities of financial products and services effectively. As financial responsibilities and decision-making increasingly shift from institutions to individuals, the need for comprehensive financial education from an early age is more pronounced than ever. The paper explores various aspects of implementing financial education in schools, addressing the challenges of integrating such programs into existing curricula, securing necessary resources, and adequately training educators. Through a review of successful case studies from different countries, such as Australia, Brazil, and the United States, effective strategies and practices are highlighted. Particularly, we focus on the analysis the financial case studies of Vietnamese students. These examples demonstrate the importance of political support, stakeholder involvement, and sustainable program implementation to ensure the longevity and impact of financial education initiatives. Additionally, the paper provides a comparative analysis of financial education learning frameworks, which illustrates the diverse approaches tailored to specific educational and national contexts. This analysis underscores the importance of adapting financial education to meet local needs while aligning with broader educational goals. Furthermore, some key policy recommendations are offered to guide schools in supporting and committing to financial education. These include developing clear, measurable objectives for financial literacy programs, creating high-quality teaching materials, and fostering collaborations among governments, educational institutions, and financial experts. Lastly, the paper discusses methods for monitoring and evaluating the effectiveness of financial education programs. It stresses the need for both quantitative and qualitative assessments to ensure these initiatives meet their goals and contribute to the overall financial well-being of students. The conclusion calls for a sustained commitment to financial education, advocating for its integration into national educational policies and curricula. This strategic approach aims to leverage significant economic events to reinforce the value of financial literacy, ensuring that future generations are equipped to make informed financial decisions and contribute positively to the economy.