Indicators Of Financial Health Research Articles

Analisis Dinamika dan Keseimbangan Pembiayaan Bank Umum Syariah Dengan Pendekatan Error Correction Model

The study aims to analyze the dynamics and balance of financing of Islamic Commercial Banks in Indonesia during the period 2015-2023 with a focus on changes in monetary policy, real effective exchange rate, price level, profitability, and capital adequacy. The research method uses a quantitative approach with analysis techniques using the error-correction model (ECM) approach. The results showed that monetary policy, real effective exchange rate, profitability, and capital adequacy ratio have a significant influence on the financing of Islamic Commercial Banks in Indonesia in the long run. In contrast, the price level does not show a significant influence on financing in the long run. These results explain that macroeconomic factors and banking performance are crucial in determining the balance of financing in the Islamic banking sector in Indonesia. The findings suggest that changes in monetary policy, which often reflect overall economic conditions, can affect financing decisions in Islamic banks. In addition, fluctuating real exchange rates can affect the price competitiveness and financial position of banks. Profitability, as an indicator of financial health, and the capital adequacy ratio, as an indicator of a bank's ability to bear risk, were also found to have a significant influence, suggesting that the internal performance of Islamic banks is decisive in the financing provided.

Climate risk and financial stability: Assessing non-performing loans in Chinese banks

Climate change poses significant challenges across various sectors, particularly within the financial realm, where the stability of banking systems is paramount. Non-performing loans (NPLs), as critical indicators of financial health, may be considerably influenced by climatic factors. This study delves into the impact of climate change on NPLs within the Chinese banking sector from 2010 to 2022, focusing on the influence of greenhouse gas (GHG) emissions. Utilising a comprehensive dataset and advanced econometric models (including panel quantile regression, sensitivity analysis and balanced panel data models), this research illuminates the intricate relationship between environmental changes and financial health. The research also discovers a significant climate change impact on NPLs, with increased GHG emissions leading to varied responses among banks. This variation reflects the different risk profiles and adaptive capacities of banks to climate-related financial risks. Banks demonstrating higher adaptability to climate change exhibit lower NPL ratios, underscoring the importance of strategic risk management and proactive adaptation in the banking sector. The research significantly advances the understanding of the financial implications of climate change and the interplay of climate variables with financial stability. It offers crucial insights for policy makers and banking institutions, emphasising the need to integrate climate risk into financial decision making and develop robust climate-resilient strategies for the banking sector's protection. In conclusion, the study enriches the discourse on the financial impacts of climate change and serves as an informative guide for stakeholders in navigating and addressing these emerging challenges. It underscores the necessity of embedding environmental considerations within banking practices to promote a resilient and sustainable financial system in the face of environmental uncertainties.

Parenting Students and Indicators of Financial Stability, Health, and Academic Success: Findings from a Population-Based Sample of Public Urban University Students.

Parenting students constitute a significant portion of the college population, with 22% of undergraduate students nationwide managing the dual responsibilities of parenthood and education. Single-parenting students face disproportionate challenges to achieving academic success. This study examines the health, financial, and academic aspects of parenting students attending a large, urban public university, specifically comparing single parents to their married or cohabiting counterparts and non-parenting students in New York City. We collected data from 2104 participants, including 142 single parents and 119 married or cohabiting parents, through a cross-sectional survey. Using adjusted regression models, we evaluated the associations between parenting status and financial, health, and academic factors. Our findings reveal that, in comparison to non-parents, single parents are significantly more likely to carry debt (adjusted odds ratio [aOR] 1.81), rely on food assistance (aOR 5.03), and achieve slightly lower GPAs (β - 0.11). Single parents also work more hours (aOR 1.66) and have an increased likelihood of facing debt (aOR 2.66), housing difficulties (aOR 2.80), food insecurity (aOR 2.21), and lower GPAs (β - 0.22) compared to their married or cohabiting peers. The disaggregation of single and married or cohabiting parents reveals significant disparities, emphasizing the vulnerability of single-parenting students in higher education. Targeted interventions addressing issues like food security and housing are essential to support the academic success of single parents.

Three-dimensional model of financial resilience in workers: Structural equation modeling and bayesian analysis

This work focused on evaluating financial health indicators, namely their perception, experiences lived during the pandemic, and actions carried out to face the financial crisis caused by the COVID-19. The eight financial health indicators proposed by BBVA bank and the Center for Financial Services Innovation were used for the study. These make up a 24-item scale and are often used to measure perception, experiences during the pandemic, and financial resilience. The sample included 357 workers from the Duxom Company, which has national coverage and operates in the private security sector. The validity test showed an acceptable Cronbach's alpha index for each construct (α; 0.848; α; 0.779; α; 0.818), denoting reliability and internal consistency. The values obtained from asymmetry (<2) and kurtosis (<7) justified the normality of the data. The research findings suggest that, while the perception of financial health indicators has a very low influence on financial resilience (.05), the experiences lived during the pandemic in relation to these indicators influenced (.74) the actions carried out to face the financial crisis caused by the COVID-19. The confirmatory model shows that the P-ISF construct is explained with 6 of the 8 variables; the Ev-ISF construct – with 3 of 8, and the financial resilience construct is explained with 7 of 8 variables (CMIN/DF:1.913; CFI:0.981; TLI: 0.973; RMSEA=0.05). The excluded variables show very low estimates; therefore, it is recommended to expand future studies to other populations and samples.

A Comprehensive Approach to Bankruptcy Risk Evaluation in the Financial Industry

The study presents a comprehensive approach to examining the potential risk of bankruptcies in financial sector organizations. This investigation explores 20 financial sector entities and evaluates their fiscal history from 2000 to 2018. The developed model assesses the chance of these companies going bankrupt by analyzing indicators like liquidity, profitability, debt composition, and operational effectiveness. These metrics are contrasted to regulatory requirements and assessed as having low, moderate, or elevated risk repercussions, ultimately contributing to an overall threat rating. Additionally, the model has a unique algorithm that compensates for excessive debt levels, strengthening the reliability of the risk appraisal grade. This straightforward instrument illustrates the demand to incorporate a variety of financial health indicators. According to the findings, excessive amounts of debt have a detrimental influence on profitability, leading to decreased stock returns and a greater probability of bankruptcy. These findings have practical implications for investors and stakeholders, providing insightful information to help inform decision-making, especially during periods of economic unpredictability such as pandemics. Furthermore, they encourage the enhancement of financial market efficiency.

Basel Capital Regulations over Pre and Post Basel III Regime: An Indian Scenario

The adequacy of capital has become a concerned issue because banks being the highly leveraged sector face high risks. So, it is desirable to know at which level of capital is adequate for banks. The focus on capital have existed for a long time but now the definition of capital has changed for banking business due to changes and advancement in banking operations. A bank with higher capital adequacy ratio is considered safe and capable to meet its obligations. The Reserve Bank of India requires all scheduled commercial banks to meet the capital level as stipulated under Basel III norms to comply with international standards. According to the guidelines of Bank for International Settlements (BIS), the banks should maintain that level of capital where a bank can easily recover unexpected shocks and crisis. The adequacy of capital is the measure of financial soundness of banks and indicator of financial health of banks. The banking activities are exposed to various kinds of risks and to manage these risks, banks must maintain sufficient capital. Therefore, it is necessary to set the regulatory guidelines for limits of capital hold by banks. Thus, the present study intends to examine the trends and consistency of capital adequacy ratio of twenty one Indian public sector banks for the period of ten years (2008–2017). The results conclude that the level of capital ratio as per Basel III norms maintained by Indian public sector banks determines the bank’s strength and position.

News-based financial health indicators for the Chinese real estate market

News-based financial health indicators for the Chinese real estate market

Shaping Market Perceptions: An Investigation into Macedonian Bank Stock Prices and their Drivers

This research paper examines the effects of return on assets (ROA), earnings per share (EPS), and audit opinion as a control variable, on the stock prices of banks in North Macedonia. The primary aim of this research endeavor is to scrutinize the influence exerted by these financial metrics on the stock prices pertaining to banking institutions within the region of North Macedonia, while also endeavoring to ascertain the extent of said influence. To analyze this relationship, a linear multiple regression model is employed. Data were collected from the audited financial statements and annual reports of all 12 banks in North Macedonia over a ten-year period from 2012 to 2021. The research findings illustrate a notable statistical influence of audit opinions and earnings per share (EPS) on the stock valuations of banks within the North Macedonian context. To elucidate, the positive coefficient associated with the audit opinion variable signifies its discernible sway on stock prices. Likewise, the positive coefficient linked with the EPS variable highlights that augmented earnings per share correlate with an upswing in stock prices. However, it is important to note that when audit opinion is excluded from the model, the results change, and ROA shows a statistically significant impact on stock prices. This suggests that the inclusion of audit opinion as a control variable affects the relationship between ROA and stock prices. These findings imply that investors in the banking sector in North Macedonia consider audit opinion and EPS as crucial indicators of a bank's financial health, influencing their investment decisions. Maintaining a positive audit opinion and increasing EPS are important factors for boosting stock prices, which is valuable information for bank managers and investors. The recent changes in the audit report format, including the reporting of Key Audit Matters (KAM), have not yet been implemented in the domestic audit practice. As a result, auditors do not report on KAM, which may have influenced the research results differently. Also, the small sample size can be perceived as a limitation of the research. With only 12 banks in the Macedonian banking sector, the generalizability of the findings may be restricted. Future research could consider expanding the sample to enhance the representativeness of the study.

The Relationship Between Coronavirus Disease 2019 (COVID-19) Pandemic-linked Job Losses and Health Care Access and Household Financial Health in Medicaid Expansion and Nonexpansion States.

Unemployment associated with the coronavirus disease 2019 (COVID-19) pandemic was linked to financial insecurity and disruptions in access to health care. To explore whether expanded access to Medicaid mitigated the likelihood of health and non-health financial hardship associated with pandemic-linked job loss. We estimate linear regression models comparing differences in the levels of outcomes attributable to pandemic-linked joblessness in Medicaid expansion and nonexpansion states. A total of 20,281 adults aged 19-64 were in the 2021 National Financial Capability Study. Our key exposure was job loss, layoffs, and furloughs, attributable to the COVID-19 pandemic. Outcomes under evaluation include indicators of health care access and household financial health. Relative to persons reporting pandemic-linked unemployment in nonexpansion states, adults experiencing pandemic-linked job loss in expansion states were less likely to report as uninsured [-6.2 percentage points (PPs); 95% CI: -10.8, -1.6; P < 0.01], having unpaid medical bills (-4.3 PP; 95% CI: -8, -0.6; P < 0.05), having unmet medical needs due to cost (-5.3 PP; 95% CI: -10.1, -0.5; P < 0.05), and having calls from debt collection agencies (-6.9 PP; 95% CI: -10.6, -3.1; P < 0.01). Patterns consistent with Medicaid acting as a safety net for the adverse financial effects of job loss were more pronounced for middle-income households. In economic downturns, such as the COVID-19 crisis, Medicaid can help insulate households from diminished health care access and financial distress associated with job loss.

Financial Health Indicators that Affect Return on Assets of Indonesian Guarantee Institutions

The amount of outstanding claims increased, and the Financial Service Authority, known as Otoritas Jasa Keuangan (OJK) had regulations to make them keep their performance financial health. The institution also needs to improve its financial performance, which may be affected by financial health. This research aims to find out and analyze the influence of financial health indicators on financial performance. The type of this research is classified as quantitative associative research. The study used secondary data of guarantee institution statistics that includes financial highlight, financial position, comprehensive income, investment portfolio, and operational performance of guarantee institutions for 78 months, from January 2016 to June 2022. This study used multiple linear regression analysis with analytical tools Eviews version 12. The indicator of financial health was using Early Warning System (EWS) and gearing ratio. EWS is proxied through the solvency margin ratio, adequacy of capital funds, incurred loss ratio, and liquidity ratio, while financial performance is proxied through return on asset. The result of this study shows that solvency margin ratio, adequacy of capital funds, and liquidity ratio affect financial performance, while incurred loss ratio and gearing ratio do not affect financial performance.

COVID-19 and commodity effects monitoring using financial & machine learning models

This article focuses on examining the effects of the COVID-19 pandemic and gold prices on the stock market. It primarily analyzes the relationship between COVID-19 cases and stock market prices, along with the impact on various commodity elements such as gold, oil, Chinese RMB, and US Dollar prices. These commodity elements are considered essential indicators of a country's financial health, and the study investigates how the increase in COVID-19 cases affects these financial elements. The research incorporates financial models, machine learning algorithms, and a financial Gaussian mixture model for data analysis and comparison. The findings shed light on the correlation between the virus, trading outcomes, and the importance of Karachi Stock Exchange-100 index data in preventing market crashes. The study also explores the implications of emergencies on the finance sector and provides insights for future financial predictions and the impact of social disasters on the economy.

Pengaruh Suku Bunga, Pinjaman Luar Negeri dan Ekspor Terhadap Cadangan Devisa di Indonesia

This research aims to examine the influence of interest rates, foreign loans and exports on foreign exchange reserves in Indonesia. The type of research used is quantitative research. The data in this research is secondary data in the form of a time series in the form of annual data from 1992 to 2022. The data analysis used is multiple linear regression analysis. The results of this research state that interest rates, foreign loans and exports influence foreign exchange reserves in Indonesia. In an economy, the interaction between interest rates, foreign loans and exports is dynamic. It is important to manage these factors carefully so that the stability of foreign exchange reserves can be maintained, because foreign exchange reserves are one of the main indicators of a country's financial health. The government and central bank must always monitor and adjust economic policies by considering the impact of interest rates, foreign loans and exports on foreign exchange reserves

Decree or democracy? State takeovers and local government financial outcomes

AbstractMany states possess the authority to intervene in local fiscal emergencies, in some cases curtailing decision‐making powers of local officials through the appointment of an emergency financial manager. Previous research has recognized that these managers can push through unpopular reforms that may improve financial health but come at the expense of local control and democratic accountability. We assess the financial outcomes after eight recent state takeovers relative to a matched counterfactual comprised of similarly distressed general purpose local governments. The staggered difference‐in‐differences analysis shows emergency managers improve budgetary solvency and increase fiscal reserves. These enhancements are achieved through significant reduction of general fund expenditures. Several long‐term indicators show deterioration in financial health after state intervention reflecting a significant decline in long‐term assets. Overall, municipalities subjected to a state takeover did not realize significant long‐run improvements in financial health indicators relative to counterfactual governments.

Effect of Debt Servicing on External Reserves in Nigeria

The management of Nigeria's external reserves, a key indicator of the nation's financial health and ability to withstand economic shocks, is at the centre of this economic investigation. This study investigates the effect of debt servicing on external reserves in Nigeria from the first quarter of 2010 to the first quarter of 2023. An ex post facto research design was adopted for the study. Quarterly time series data for external reserves, external debt servicing, and domestic debt servicing were collected from the Central Bank of Nigeria statistical bulletin and Debt Management Office reports. Philip Perron test was used to test the stationarity of the data and the ARDL test was utilized to determine the presence of a long-run relationship. The Fully Modified Ordinary Least Squares technique was used to test the effect of debt servicing on external reserves in Nigeria. The findings showed that external debt servicing and domestic debt servicing have a significant effect on external reserves in Nigeria. The study recommends that the Nigerian government through the Debt Management Office should emphasize diversification in acquiring external debts by engaging with multiple creditors, including multilateral institutions, bilateral partners, and global financial markets. Also, a strong emphasis should be placed on enhancing domestic revenue mobilization efforts. This can be achieved through fair and effective tax policies, reducing tax evasion, and promoting investments in sectors(like the finance sector)that yield sustainable revenue streams. Increased domestic revenue can alleviate the need for extensive domestic borrowing, thereby reducing the strain on external reserves for domestic debt servicing.

ШЛЯХИ ВИРІШЕННЯ ПРОБЛЕМ ЩОДО ЛІКВІДНОСТІ ТА ПЛАТОСПРОМОЖНОСТІ МАЛИХ ВІТЧИЗНЯНИХ ПІДПРИЄМСТВ

In today's market economy, the economic activity of all economic entities is accompanied by risk, which increases their level of competitiveness and requires the management of enterprises to find various ways to combat it. An important indicator of a company's financial health is its solvency and liquidity. Solvency and liquidity are different, although interrelated concepts. The purpose of the study is to analyze the liquidity and solvency of small private enterprises in the domestic market, as well as to provide recommendations for improving the financial condition of the enterprise, because small enterprises are the basis of any market economy. Under the conditions of the unstable economic and political situation and the financial crisis, the activities of small businesses enterprises is hampered by the presence of significant problems and obstacles. This article analyzes the financial condition of this enterprise using horizontal-vertical and coefficient analysis, where both positive and negative changes were detected. It is worth saying that there are many problems from a financial point of view in the activities of the WPF "Oksana": low liquidity, reduced profitability, low financial stability. The enterprise should carry out work to improve financial indicators, as a result of which it will increase its autonomy and profitability and will be able to conduct its business activities efficiently. Small businesses have limited access to financial and money markets. As a rule, one can only dream about the issue of shares. It is not possible to get a loan not only because of its high cost, but also because of the risky financial condition of the enterprise and the lack of a credit policy. A high level of liquidity and solvency provides the enterprise with an appropriate level of trust from creditors, which seeks to attract funds for the development of the company. To directions for improving the assessment of the company's solvency can be attributed to the improvement of analytical ones the capabilities of its information base for analysis by using account data; calculation of the system of solvency indicators based on the company's cash flows; carrying out operative analysis of solvency. The further direction of the research is the formation of the system indicators of the company's solvency and substantiation of their normative values at the industry level. Therefore, the study of modern problems of liquidity and solvency of small enterprises in Ukraine acquires special relevance.

Corporate Financial Policy as a Factor of Corporate Sustainability and Health during COVID-19 Pandemic Period

Research Question: This paper analyses whether a relationship exists between the financial policy of the companies, embodied in the structure of assets and liabilities, and their financial health during the COVID-19 pandemic. Motivation: The paper aims to consider the impact of changes in the value of individual items of the balance sheet of selected companies on the movement of profitability, liquidity, and market value of companies, as measures of the companies’ financial health. Idea: The core idea of this paper was to empirically evaluate the financial health of domestic companies, where the financial policy that the selected companies implemented was taken as a factor of financial health. The financial policy was viewed through the structure of assets and financing of the chosen companies, while financial resilience observation was based on indicators of profitability, liquidity, and market value of the companies. Data: Secondary data from the reference database (Index of the Belgrade Stock Exchange) during the period 2016-2020, which includes 30 companies from the real sector, serve as the relevant basis for the realization of the research within the adequately set area of the research. Tools will be used to study the relationship, i.e., connectivity of selected research variables based on regression analysis in the frame of parametric quantitative procedures. The financial policy was viewed through the structure of assets and financing of the chosen companies, based on their balance sheets, while financial resilience observation was based on indicators of profitability, liquidity, and market value of the companies, which were used as dependent variables in the research. Findings: The point that changes in a relatively small number of the balance sheet items of selected companies influenced the movement of the mentioned financial health indicators during the COVID-19 pandemic. Contribution: Presented research results are significant and representative for future corporate practice. The key contribution of this research is the identification of assets’ elements with a critical impact on companies’ financial health.

Financial Growth Assessment of Private Life Insurers in India: An Aggregative Study

Presently, Indian insurance industry has 57 insurance companies, out of which 24 are in the life insurance sector. Among all the life insurers, only LIC is the public insurer and the remaining 23 companies are private insurers. The entire route of allowing private insurance companies in India had begun in the early 1990s. A well-developed insurance sector with participation from both private and public players is the key to economic development as it delivers a source of long-term funds for infrastructure development. In this background, the study aims to examine the trend growth rates and the differences in growth rates of earnings and financial health indicators during the period 2010-11 to 2019-20. The findings of the study show mixed results with respect to earnings and financial health performance of private life insurers in India. To arrive at a meaningful conclusion, overall earnings and financial health indicators are measured. The overall results show that there has been no change in the overall earnings and financial health indicators as revealed by Chow test during the period under study. On the whole, it may be stated that in spite of significant positive growth in FDIR, the private life insurers have not shown satisfactory performance (i.e., no significant impact due to FDI hike) with respect to earnings and financial health indicators during the study period.

How Healthy is Health Sector?

Financial distress is a condition in which a company cannot create sufficient income, thus making it unable to meet its financial obligations. Ignoring signs of financial distress can be detrimental for the companies, and it may even cause bankruptcy. The financial distress is about financial health of a company and credit rating is a good early warning indicator of financial health. This paper attempts to investigate the financial health of health sector in Turkey for the period from 2000 to 2020. In order to evaluate financial health of the health sector in Turkey, we use Central Bank of Republic of Turkey’s Company Accounts and calculate credit ratings via Altman Z- Score Methodology. The basic conclusion of the paper is that although the credit rating is not sufficient for investors, there are some improvements in the rating grades.

Predicting Sustainable Bank Performance in Nigeria Using Composite Financial Index

This study seeks to predict sustainable Bank performance in Nigeria using Composite Financial Index. Composite Financial Index (CFI) is a single indicator of overall institutional financial health based on performance in four principal domains of finance; sufficiency and flexibility of financial resources, management of debt, the performance of assets, and results from operations. Each domain is measured by a core financial ratio. The main objective of the study was to find out the level of banks’ performance in Nigeria using Composite Financial Index. The study adopted Market Power Theory and the Efficiency Structure Hypothesis. The paper specified various ways to achieve its objectives, such that objective one was achieved by compiling all the variables that make up the CFI, and all these variables would be identified and compared with the contents of financial reports of the banks. The paper in its finding shows some weaknesses in the application of individual financial ratios in measuring performance and predicted that Composite Financial Index would better explain the true performance level of a bank rather than an individual financial ratio. The paper recommends that Nigeria banks should adopt the use of CFI in measuring performance and Analysts who desire to use the conventional ratio analysis should also apply the CFI as a further confirmation of the results of the conventional ratio analysis so that the public and Nigeria banks would not experience what happened in the sector in 2009.

Impact of Length of Stay on both Financial Health and Medical Outcomes of Mission Hospitals in Rural Ghana

One of the major key clinical indicators of hospital performance is length of stay (LOS). This denominator is calculated in averages. The role of this measure could be dual (as medical outcome or financial health indicator). Regardless, it can also be observed as either positive or negative variable depending on how it is measured. By this study, LOS was assessed on both counts: as a measure of financial health and also as medical outcome of hospital. The investigator concludes, after thorough evaluation of available data, from both structured interviews and responses to a set of questions in a survey, that truly length of stay impacts positively on medical outcomes and also could be a measure of the financial healthiness of hospital.