Financial Framework Research Articles

Key value indicators: A framework for values-driven next-generation ICT solutions

Technology design, development and evaluation has long been driven by functional performance optimization and estimated market opportunities. Today, societal challenges and sustainable development goals are calling for a paradigm shift towards aligning technology development with a values-based consideration and re-prioritization of different ecological, social and economic outcomes. Values have been identified as key drivers of Information and Communication Technology (ICT) research. They are taken into account in the development of 6G networks, e.g. in the context of EU research funding frameworks, but a clear conceptual framework for values-driven development is still missing. This paper deals with the concept of Key Value Indicators (KVIs) as a method for analyzing the values-related outcomes stemming from ICT developments. Leveraging established definitions, frameworks and value identification methods, the paper proposes a structured KVI framework tailored to the ICT research and development (R&D) sector. The proposed framework comprises five steps, starting from the use case-related identification of values to the assessment of value outcomes. ICT-enabled smart cities are analyzed as an example use case to illustrate how this framework can be applied. The KVI framework is aimed to be a useful tool for the ICT research sector (to be used - primarily but not exclusively - by ICT research projects and programs) to address social challenges in technology design and development phases and to identify and estimate value outcomes from technology use. In addition, the proposed framework aims to assist policy makers to establish value-related targets and set requirements and conditions for ICT developments.

Unlocking the path to digital financial accounting: A study on Chinese SMEs and startups

The undeniable significance of small and medium-sized enterprises (SMEs) and startups in fostering economic development and prosperity serves as the backdrop for this study. The primary goal of this research is to determine how various factors influence the digitalization of financial accounting within SMEs and startups. An analysis is carried out using data from a cohort of 200 Chinese SMEs, all listed and sourced from the China Stock Market & Accounting Research database's financing reports from 2010 to 2020. The findings suggest that environmental, social, and governance investment and loans obtained by these SMEs positively promote digitalization. Meanwhile, financial fraud acts as a barrier to the expansion of digitalization within their financial structures. Notably, total income and transaction costs exhibit a mixed pattern of effects, acting as long-term enablers of digitalization. Moreover, the Chinese government's establishment of an electronic financial accounting standard framework and provision of incentive packages can expedite the digitalization of financial accounting in Chinese SMEs.

Blockchain-Enabled Utility Optimization for Supply Chain Finance: An Evolutionary Game and Smart Contract Based Approach

In recent years, blockchain technology has attracted substantial interest for its capability to transform supply chain management and finance. This paper employs evolutionary game theory to investigate the application of blockchain in mitigating financial risks within supply chains, taking into account the technology’s maturity and the risk preferences of financial institutions. By modeling interactions among financial institutions, small and medium enterprises (SMEs), and core enterprises within the accounts receivable financing framework, this study evaluates blockchain’s impact on their decision-making and its efficacy in risk reduction. Our findings suggest the transformative potential of blockchain in mitigating financial risks, solving information asymmetry, and enhancing collaboration between financial entities and SMEs. Additionally, we integrate smart contracts into supply chain finance, proposing pragmatic procedures for their deployment in real-world contexts. Via a detailed examination of blockchain’s maturity and financial institutions’ risk preferences, this research demonstrates the primary determinants of strategic decisions in supply chain finance and underscores how blockchain technology fosters system stability using risk mitigation. Our innovative contribution lies in the design of smart contracts for the ARF process, rooted in blockchain’s core attributes of security, transparency, and immutability, thereby ensuring efficient operation and cost reduction in supply chain finance.

Research on ESG System Construction and Environmental Accounting Information Disclosure：A Case Study of CITIC Securities

Since the signing of the Paris Agreement, societal concern regarding climate change and sustainable development has grown exponentially. The construction of ESG (Environmental, Social, and Governance) frameworks and the disclosure of environmental accounting information have garnered significant attention. Constructing a financial ESG framework and refining its environmental accounting system holds paramount significance. This study employs a case study approach, using leading Chinese securities firm, CITIC Securities, as a focal point. It elucidates the complementary relationship between ESG frameworks and environmental accounting within financial institutions. Leveraging databases and publicly available information such as CITIC Securities' annual reports and corporate social responsibility report, the study systematically analyzes the development of CITIC Securities' ESG framework and the current status of environmental accounting information disclosure. Based on these findings, the study identifies issues in CITIC Securities' and other financial institutions' information disclosure practices, such as a tendency towards one-sided disclosure or the presence of "greenwashing" phenomena. Finally, the study proposes measures and recommendations in four key areas: standardization, enhanced disclosure, independent verification, and digitization empowerment.

A new multiscale collection and allocation framework for national ecological compensation funds based on ecosystem service supply and demand dynamics

To date, a clear model between ecosystem services (ES) and their beneficiaries has not been established, which reduces the possibilities of the implementation and effective use of ecological compensation. In this study, we constructed a “top-down” and “bottom-up” bidirectional framework for ecological compensation fund (ECFs) collection and allocation, by taking into account the supply and demand of ES. This framework focuses on how to (i) collect ECFs from consumers and (ii) distribute ECFs equitably to suppliers, (iii) and utilize the net ECFs of each administrative unit to improve the efficiency. We analyzed the ES and ECFs in 31 provinces, 333 prefecture-level cities, and 2844 districts (counties) in China from 2000 to 2020, and further classified the relationship between gross domestic product (GDP) and ECFs. Our research revealed that ES and ECFs exhibited a consistent upward trend over time, but displayed significant disparities and inconsistencies across different geographical areas. This analysis identified four distinct relationship modes between ECFs and GDP, serving as a valuable foundation for promoting environmentally sustainable development. The proposed framework acts as a “bridge” connecting the ES and stakeholders through national ECFs, helps address the challenges in ecological compensation financing, and enhances the clarity of the collection and allocation process. We believe that the implementation of this ECF framework, with the support of ecosystem management activities, could provide the basis for Green transformation development in China and beyond.

Model-based financial regulations impair the transition to net-zero carbon emissions

AbstractInvestments via the financial system are essential for fostering the green transition. However, the role of existing financial regulations in influencing investment decisions is understudied. Here we analyse data from the European Banking Authority to show that existing financial accounting frameworks might inadvertently be creating disincentives for investments in low-carbon assets. We find that differences in the provision coverage ratio indicate that banks must account for nearly double the loan loss provisions for lending to low-carbon sectors as compared with high-carbon sectors. This bias is probably the result of basing risk estimates on historical data. We show that the average historical financial risk of the oil and gas sector has been consistently estimated to be lower than that of renewable energy. These results indicate that this bias could be present in other model-based regulations, such as capital requirements, and possibly impact the ability of banks to fund green investments.

AI-generated Information: What is the financial Reporting Framework?.

AI-generated Information: What is the financial Reporting Framework?.

Resource curse in OPEC with varied levels of financial regulations and constraints: The role of oil price shocks and digital finance

Economic growth and development are crucial for global economies, and a nation's physical, human, and natural resources significantly impact its trajectory. Natural resource-rich nations can benefit or face the resource curse. Henceforth, this study examines the economic growth of Organization of the Petroleum Exporting Countries (OPEC), considering digital finance, financial regulations, and oil price shocks. Understanding the intricate relationship between oil price fluctuations and digital finance within diverse financial regulatory frameworks is essential for a comprehensive grasp of the resource curse in OPEC. The research employed a bias-corrected dynamic panel and MMQR model to analyze datasets from 2004 to 2022. The study reveals that Oil price shocks have led to higher economic growth when there are moderate financial constraints. However, they have a detrimental effect when the financial system is either very constrained or highly unconstrained. Digital finance has been shown to enhance Gross Domestic Product (GDP) across various levels of financial regulations. The GDP of OPEC experiences a significant adverse effect when digital finance and oil price shocks are coupled, particularly in the presence of stringent financial rules. This outcome is mainly attributed to the adverse influence of oil prices. The findings above underscore the need for moderate levels of financial regulations that support the favorable influence of oil prices and digital finance on GDP. The study additionally suggests a prospective strategy for enhancing GDP growth in OPEC nations: facilitating digital finance.

Liquidity and Credit Risk in Indonesia: The Role of FinTech Development

This study examines the relationship between liquidity, FinTech development, and credit risk in the Indonesian banking industry. Specifically, it investigates the impact of FinTech, particularly in peer-to-peer lending and payment systems, on credit risk in conjunction with liquidity. The analysis is conducted using panel data from 142 commercial banks in Indonesia over a 15-year period from 2004 to 2018. The results reveal that higher liquidity leads to a reduction in credit risk, whereas FinTech development is found to increase credit risk, particularly in small banks (BUKU 3 and BUKU 4) and private national banks. Notably, this study identifies that the impact of liquidity on credit risk is conditional on the level of FinTech development. Furthermore, the findings suggest that the effects of FinTech on credit risk are contingent on the bank’s characteristics and the economic environment. These results have significant policy implications for designing an inclusive financial framework in the digital era, especially in managing the risks associated with FinTech development. JEL Classification: G231, F31. R10.

Ethical Considerations in AI-driven Financial Decision Making

AI-driven technologies are increasingly shaping financial decision-making processes, prompting significant ethical considerations. This study offers an extensive exploration of the ethical ramifications linked with the incorporation of Artificial Intelligence (AI) in financial decision-making frameworks. By amalgamating insights from prevailing literature and frameworks, we scrutinize pivotal ethical challenges such as algorithmic bias, opacity, data privacy concerns, and potential societal implications. Additionally, we deliberate various ethical paradigms and proposed solutions aimed at tackling these challenges. This paper contributes to the ongoing dialogue on the ethical integration of AI in the financial realm, underscoring the criticality of embedding ethical considerations into AI-driven financial decision-making frameworks. As financial institutions strive to harness the potential of AI technologies, upholding ethical standards emerges as paramount, necessitating robust governance mechanisms and accountability frameworks. Through meticulous examination, this paper not only discerns ethical quandaries but also furnishes actionable insights for stakeholders to navigate the intricate domain of AI ethics in finance.

ANALISIS PENGGUNAAN SISTEM INFORMASI AKUNTANSI PONDOK PESANTREN MODERN AL-HASYIMIYAH DARUL ULUM

The purpose of this study was to determine the method of recording financial statements at Pondok Pesantren Modern Alhasyimiyah Darul Ulum. Qualitative research is used as a research method. The sources of information used are important information obtained through direct meetings and optional information obtained from related reports. The area of this examination is North Padang Lawas. The phenomena that occur in the school of Modern Islamic Boarding School Alhasyimiyah Darul Ulum have not been by PSAK 45 regulations. The data sources conducted by researchers are interviews, documentation, and observation at Modern Islamic Boarding School Alhasyimiyah Darul Ulum and the techniques used by researchers to collect data are data sorting, data presentation, and data verification. The results of the research at the Modern Islamic Boarding School Alhasyimiyah Darul Ulum are currently not following the bookkeeping data framework plan at the Islamic Living School which is not by PSAK 45, considering that there are still a few financial statement data framework reports that are not made by the pesantren, especially the Money Position Report, Explanation of Income, Notes on Fiscal Summary.

GREEN BONDS AND SUSTAINABLE FINANCE: EMERGING TRENDS IN CORPORATE INVESTMENT STRATEGIES

The increasing urgency of climate change and environmental degradation has prompted a significant shift in corporate investment strategies towards sustainable finance, particularly through green bonds. This paper explores the emergence of green bonds as a pivotal instrument in corporate finance aimed at funding projects that have positive environmental impacts. We analyze the growth of the green bond market, identifying key trends, challenges, and opportunities within corporate investment strategies. By examining case studies and recent data, this study aims to elucidate the evolving landscape of sustainable finance and its implications for corporate governance, risk management, and stakeholder engagement. The findings underscore the importance of integrating sustainability into corporate financial frameworks to foster a resilient and responsible economic future.

Factors supporting sovereign wealth fund adoption

ABSTRACT The adoption of sovereign wealth funds (SWFs) has been rising globally. While their benefits are recognized, they are underutilized, particularly among commodity exporters. This research adds to the nascent literature on factors, focusing on external support, institutional readiness, and domestic capability, that influence SWF adoption. We highlight the importance of international financial institutions, policy frameworks, and technical capability in supporting countries’ adoption of SWFs.

How Are You Doing? Financial Well-being During COVID-19

Optimal financial well-being is a goal for both financial professionals and consumers. The COVID-19 pandemic raised concerns about consumers’ financial well-being. This study sought to explore the factors related to financial well-being using the Personal Financial Wellness framework (Joo, 2008). Data was collected from a diverse sample during the COVID-19 pandemic. Results indicated that objective financial status (e.g., income), positive pre-pandemic financial behaviors, financial satisfaction, and being older and single mattered in one’s increased level of financial well-being during the COVID-19 pandemic. Subsequently, financial satisfaction was found to be a mediating factor between subjective financial knowledge and financial well-being. Implications for financial professionals, researchers, and policymakers are provided.

A study on financial performance of central bank of India

The banking industry plays a vital role in the economic development of a country which determines the money circulation among the people. The country's survival depends on the banking industry, which serves as the economy's foundation. Financial Performance is the only key tool which decides the operational efficiency along with sustainability of banking sector. The financial organization of branches and a different scope of monetary administrations, India's financial framework is enormous. The focus of this paper is to examine the financial performance of Central bank of India by using the analyzed ratios, for example, liquidity ratios, Solvency ratios, profit and loss ratios and balance sheet ratio are to be used for the assessment of financial performance of central bank of India with help of income and expenditures and consolidated balance sheet from the period of 2018 to 2022.

Public--Private Cooperation Funding Juxtaposed of University--Community Engagement in Europe: Systematic Review

This article explores the utilization of public–private funding models in European universities and its implications for community empowerment initiatives, particularly University–Community Engagement (UCE) projects. A systematic literature review (SLR) was conducted using the Scopus database, screening 50 articles relating to public–private funding models in European universities. The study reveals that while public–private funding models have gained traction in the academic sphere, they primarily focus on supporting applied science research projects. In contrast, the funding of projects solely oriented toward community empowerment remains limited, with only one article addressing this potential. The findings highlight the challenges associated with employing public–private funding for UCE projects with a strong emphasis on community empowerment. Public–private funding, typically sourced from industry partners, tends to prioritize product innovations and productivity enhancements, posing a mismatch with the social justice-oriented nature of UCE. This discrepancy underscores a significant research gap in UCE and calls for innovative approaches to develop supportive funding frameworks that can effectively sustain UCE initiatives.
 Keywords: public–private funding, university–community engagement, European University

Digital finance services, customer relations and customer satisfaction: Basis for financial industry customer relationship management framework

Digital finance services, customer relations and customer satisfaction: Basis for financial industry customer relationship management framework

RATIONALE OF FINANCIAL STABILITY IN SOUTH AFRICA: CONSTRUCTING A FINANCIAL STRESS INDEX

The need for financial stability became apparent after the devastating events of the 2008 financial crisis. It was around this time that central banks around the world started to construct and implement scientific methods to assess financial stability. This research gives a comprehensive understanding of financial stability and makes use of scientific methodology by constructing the financial stress index for South Africa from periods 2006 through 2015 to predict and attain financial stability. After the 2008 global financial crisis, South African policymakers have put in place some policies and tools to enhance financial stability. To complement these policies, a new financial framework was developed, that is, the twin peaks model to continuously gather data and asses financial stability on a continuous basis. To put this framework into practice the financial stress indicator or index acted as a single comprehensive tool to measure and monitor stability. Included in this index are indicators that capture the different dimensions of the banking sector. The results gathered from this index contribute to the understanding of financial stability and how it is measured. It was found that the volatility or patterns of the financial stress index could be used as predictions and early warning tools for policymakers or the Central Bank to step in and contain potential risks. Moreover, from the empirical data collected the financial stability policies in South Africa are effective, as the financial stability index after the period of crises remained stable.

Advancement and the existing landscape of forensic medicine in Africa: A comparison with developed countries.

This article explores the development and challenges of forensic medicine in Africa, comparing it to developed countries. It addresses limited resources, funding, and a shortage of trained professionals. The growth of forensic investigation capabilities and the challenges of funding and technology access are discussed. Training and education have improved, but disparities remain. Partnerships with developed countries and international organizations are crucial to bridge the gap. A comprehensive legal framework is important, but disparities exist among African countries. Harmonizing forensic laws would enhance cooperation. The role of forensic medicine in the criminal justice system is examined, emphasizing the need to build trust in forensic evidence. International collaboration and capacity building are key to advancing forensic medicine in Africa. Investments in infrastructure, funding, training, and legal frameworks are required. By leveraging partnerships, Africa can develop its forensic medicine capabilities for a fair and effective criminal justice system.

LEGAL IMPLICATIONS OF BLOCKCHAIN TECHNOLOGY FOR TAX COMPLIANCE AND FINANCIAL REGULATION

Blockchain technology has emerged as a disruptive force in the realms of tax compliance and financial regulation, presenting both opportunities and challenges for governments, businesses, and regulators worldwide. This abstract explores the multifaceted legal implications stemming from the integration of blockchain technology into tax systems and financial frameworks. The decentralization and transparency inherent in blockchain networks offer promising avenues for enhancing tax compliance. Smart contracts, powered by blockchain, can automate tax calculations and payments, reducing errors and facilitating real-time monitoring of transactions. Additionally, the immutable nature of blockchain ledgers provides auditors with an unprecedented level of transparency and traceability, potentially reducing tax evasion and fraud. However, the adoption of blockchain technology also poses significant regulatory challenges. The anonymity afforded by certain blockchain implementations raises concerns regarding the identification and verification of taxpayers and transactions, potentially hindering enforcement efforts. Moreover, the cross-border nature of blockchain transactions complicates traditional tax jurisdictional boundaries, necessitating international cooperation and harmonization of tax policies. In the realm of financial regulation, blockchain technology introduces novel considerations for regulators seeking to ensure market integrity and investor protection. The proliferation of blockchain-based financial products, such as cryptocurrencies and tokenized assets, challenges existing regulatory frameworks designed for traditional financial instruments. Regulators must grapple with issues of investor disclosure, market manipulation, and systemic risk in this rapidly evolving landscape. Furthermore, the decentralized nature of blockchain networks challenges the efficacy of traditional regulatory mechanisms, such as centralized oversight and enforcement. Regulators face the daunting task of striking a balance between fostering innovation and safeguarding against potential risks, such as money laundering and terrorist financing, inherent in decentralized financial systems. The integration of blockchain technology into tax compliance and financial regulation presents a complex array of legal implications. While offering potential benefits in terms of efficiency and transparency, blockchain also necessitates adaptation and evolution of regulatory frameworks to address emerging challenges and risks in a rapidly evolving digital landscape. Effective collaboration between governments, businesses, and regulators is essential to harness the transformative potential of blockchain technology while mitigating its associated legal and regulatory challenges.
 Keywords: Blockchain, Regulators, Legal, Tax, Technology, Financial, Review.