Financial Management Strategies Research Articles

THE SPIN-OFF EFFECTIVENESS OF SHARIA INSURANCE IN INDONESIA: ANALYZING THE EFFICIENCY AND THE CRITERIA

This research aims to determine the effectiveness of the spin-off implementation in Indonesia by comparing the efficiency of the full-pledge sharia insurance industry with the Sharia Business Unit (SBU) and analyzing the spin-off criteria. The method used is the mixing method. The quantitative method-Data Envelopment Analysis (DEA) in measuring efficiency and descriptive qualitative by conducting interviews with informants from the insurance shariah industry, AASI, OJK, and BKF for spin-off criteria analysis. . The data used is the input data being assets, operating expenses, while the output data is profit and operating income. Efficiency on profit for SBU is higher than full-pledged companies. Efficiency on revenue is slightly different where the efficiency values of full-pledge companies are not entirely at the bottom. Related to spin-off criteria, the SBU industry has not achieved the number of tabarru funds and participant investment of 50% of the parent fund. Based on these facts, the effectiveness of the spin-off implementation has not been realized optimally. This is because the objectives of increasing efficiency and growing the number of industries have not been achieved. The factors that support the realization of effectiveness are leadership commitment, financial management strategies, professional human resources, the role of government and regulatory bodies

Enterprise Management Decision and Financial Management Based on Dynamic Cost Volume Profit Model

Under the background of today’s times, the internal and external environment of enterprises is complex and changeable. It is of great significance for the survival and development of enterprises to continuously reduce the business risks and improve the economic benefits of enterprises by adopting scientific decision-making methods. CVP (cost volume profit) analysis is a model established by sorting out variables related to business decisions in enterprise production through mathematical modeling. Based on the interpretation of cost behavior by multiple cost drivers, this paper establishes a dynamic CVP model of traditional CVP analysis, breaks through the limitations of original assumptions, and improves the application value of CVP analysis in practice. The model is applied to the business decision-making and financial management of a case enterprise, and the products with different characteristics of the enterprise are modeled and analyzed, so as to provide targeted improvement suggestions or strategies for the enterprise’s product production decision-making. The research shows that the dynamic CVP model can be used to formulate the financial management strategy to optimize the profits of enterprises, and it can achieve stable profits and development in the market competition.

Financial Management and Firms’ Profitability: Evidence from Nigerian Manufacturing Listed Firms

The Nigerian manufacturing industry is one of the country's key economic growth engines. Since firms in the manufacturing sector are considered as high-risk ventures, they encounter significant difficulty in raising funds, especially from financial institutions. The manufacturing sector reported a significant decline in its economic activity and job creation compared to other sectors due to the difficulties faced by firms in attaining an optimal financial management strategy to support their business operations. In the attempt to identify optimal finance for maximizing firms’ profitability, this study aims to examine the relationship between financial management practices and the financial performance of quoted Nigerian manufacturing firms. A sample of 33 quoted Nigerian manufacturing companies from the year 2015 to 2018 were selected. A multivariate regression analysis was performed based on 132 firm-year observations, where it is documented that solvency, proxies by debt to assets ratio, is positively and significantly related to firm’s profitability. Results however revealed an insignificant relationship between liquidity and firm’s profitability. The findings of this study reveal that firms should sustain in being solvent in order to generate business growth and achieve set development goals. Besides being solvent, companies should manage their liquidity position effectively, thus enabling firms to reap competitive advantage. The findings support the trade-off theory, which claims that firm profitability increases as a firm’s debt increases, but only to the point where any further increases in the firms’ debt after it reaches its optimum level causes profitability to decline.

IBM PEMBERDAYAAN KAUM PEREMPUAN MELALUI INOVASI PENGOLAHAN MIE RUMPUT LAUT

Wael and Kotania villages are one of the centers for seaweed production in the Kotania Bay waters in the West Seram Regency. Most of the women in Wael and Kotania hamlets, especially mothers, do not have permanent jobs other than taking care of the household. In addition, there is a lack of knowledge in seaweed processing technology. To empower women in the hamlets of Wael and Kotania, it is necessary to create productive activities by utilizing the potential of the village, both the potential of human resources and natural resources. The solution offered to women in the hamlets of Wael and Kotania through this IbM activity is the establishment of a business through the innovation of processing Eucheuma cottonii seaweed into noodles. Activity Objectives 1) Improving women's knowledge and skills about seaweed noodle processing technology. 2) Improving women's knowledge and skills about financial management and marketing strategies for seaweed noodle products. 3) Creating alternative livelihoods for women in coastal areas. Benefits of Activities 1) Empowering women in an effort to increase family income. 2) Realizing the tridharma of higher education through community service. 3) Build a seaweed noodle processing industry in rural areas on a home industrial scale. The addition of seaweed in the manufacture of noodles is expected to increase the consumption of more varied nutrition for the wider community and fulfill nutritional needs, especially micronutrients, one of which is iodine. Processing of seaweed into processed food products by women is expected to increase family income

MANAGEMENT STRATEGY: School Financial Management Strategies During the Covid-19 Pandemic

The success of financial management during the Covid-19 pandemic is the role of school strategic management to prepare planning, organizing, controlling, and directly in school financial management. The research aims to examine educational institutions' financial management strategies in upper secondary education units. This type of research is field research with qualitative methods of case studies at MAN 2 Yogyakarta. The respondents of this study are the Principal, committee, and financial manager of the school. The data collection process is carried out by making observations, interviews, and documentation. The data analysis researchers use with the Miles and Huberman Models is condensation, data presentation, and inference/verification. The results of this study show that the strategy carried out by the Principal in managing school finances during the Covid-19 pandemic is an evaluation of budget, fund efficiency, and efficiency of program implementation through the stages of the financial management process. The strategy then, in the policy in the form of a 30% cut in SPP costs and the temporary elimination of visit transportation costs, waiver of payment time extension for parents whose businesses are affected by Covid-19, a 10% cut to school activity budget.

포스트 코로나 시대 스포츠 시설업의 경영 위기관리 전략이 시장지향성 및 경영성과에 미치는 영향

The purpose of this study was to investigate the relationship between business crisis management strategy in the post-corona era, market-oriented performance, and business performance targeting 209 sports facility managers in Chungbuk region. As a result of the study, it was found that all sub-factors of risk management strategy on management orientation had a positive (+) effect, so hypothesis 1 was adopted. Hypothesis 2 was adopted as it was found that management orientation on business performance had an effect. Lastly, as it was found that the financial management and quarantine management strategies on business performance had a positive (+) effect, Hypothesis 3 was partially adopted. As such, a management risk management strategy is essential in the post-corona era that has not ended until now, and it is judged that management losses can be minimized by establishing a crisis management strategy and differentiating it from competitors.

Financial Management Practices and Small-Scale Businesses' Profitability, from the Viewpoint of Kabale Municipality, Uganda

Abstract: Purpose: The study's goal was to investigate how financial management practices impact small businesses' profitability. Research methodology: Descriptive and correlational research designs were used in the study. The study used a multi-regression analysis to estimate how financial management practices impact profitability. Results: The research showed that financial management strategies had a big effect on profitability. Management of working capital and cash has a substantial correlation with profitability, according to the evidence. The study suggests that in order to see improvements in their profitability levels, small businesses should establish strong financial management methods. Owners of small businesses must pay close attention to the dynamics of their working capital and cash management because these factors have a significant impact on their profitability levels. To balance operating costs and profitability, small firms should think about cost-cutting measures. Limitations: This study was only conducted within Kabale Municipality and future studies should be conducted in the entire region. Contribution: The study identified a trio of factors – operational expenses, microeconomic factors, and individual characteristics that constrain profitability. Keywords: 1. Financial Management Practices 2. Cash Management 3. Working Capital Management 4. Profitability 5. Small-Scale Enterprises

Peran Perbankan Syariah Terhadap Ketahanan Keluarga di Era Pandemi Covid-19

The family becomes important in the defense and protection of its members. For this reason, it is necessary to ensure that every family has good capital in order to be able to face various difficult and challenging life situations. This study aims to determine family resilience during a pandemic, as well as factors that support and hinder the resilience of the family by using family demographic groups, namely family type, parental occupation, and residential area. The approach used in this research is descriptive qualitative used with research subjects totaling 100 people. The results of the study show that the economic resilience of the family during the Covid-19 pandemic has decreased, especially in terms of income and ability to meet family needs. However, from the aspect of housing ownership, financing for children's education, and family financial security, the economic resilience of the family in Indonesia can be considered quite good. This study recommends the need for a fairly good family financial management strategy. Family resilience in this study was measured using the Walsh Family Resilience Questionnaire developed by Walsh (2012) and analyzed using descriptive statistical analysis techniques.

Financial Management Strategy of Construction Enterprises under New Revenue Criteria

Financial Management Strategy of Construction Enterprises under New Revenue Criteria

Data-driven financial and operational risk management: Empirical evidence from the global tramp shipping industry

The global shipping industry has long suffered from high volatilities in freight rates and bunker fuel prices that lead to significant earnings risks. This paper aims to investigate the effectiveness of financial hedging and operational risk management strategies of 31 world leading tramp shipping companies through a Bayesian Belief Network (BBN) model using various data sources. Operational risk management strategies are categorized into long-term (e.g., fleet diversity and fleet age) and short-to-medium-term (e.g., relative trip distance, fleet repositioning flexibility, and trading diversity) strategies. We innovatively quantify the short-to-medium-term operational risk management strategies using Automatic Identification System (AIS) data. The results show that financial hedging can effectively reduce bunker fuel price risk exposure but cannot reduce freight rate risk exposure. Meanwhile, companies can use operational risk management strategies to effectively reduce both risk exposures. This study provides significant implications for shipping risk management.

The Case Experience of Integrating the SDGs into Corporate Strategies for Financial Risk Management Based on Social Responsibility (with the Example of Russian TNCs)

The motivation of this research consists in the following: the traditional commercial approach to financial risk management amid economic crises implies the reduction of corporate social responsibility, based on the assumption that this responsibility raises the financial risk of business. Due to this, the contribution of business to the achievement of the SDGs is not stable and is often negative, since practices of business management contradict the SDGs in crisis periods and hinder their achievement in society and the economy. However, the refusal from corporate social responsibility during a crisis does not guarantee the following increase in the level of business development in the period of stability. A study of the case experience of integrating the SDGs into corporate strategies of the largest Russian companies during the COVID-19 crisis improved the understanding of the contribution of corporate social responsibility to financial risk management of the business. Dynamic modelling showed that, in a crisis period, corporate social responsibility leads to a reduction of the financial risks of business—it is commercially profitable, similarly to the phase of stability, and critically important. Based on this, an alternative (new) approach to financial risk management is developed, which allows raising the effectiveness of this management amid economic crises (including the COVID-19 crisis) through the integration of the SDGs into corporate strategies and the manifestation of high social responsibility during crises.

Digital Platforms for SMME Enablement

The challenges facing SMME’s are diverse ranging from skills challenges to value chain optimization, concept management and operations management. The entrepreneur navigates a typical SMME cycle from idea generation to sustainable business single-handed. Each phase of SMME development is a challenge but is not unique to the individual SMME. Financial management, marketing, logistics, people management and general strategy to execution against challenges are endured and overcome by SMME’s. SMME’s form the majority of businesses, in most economies and is a source of GDP growth. SMME failure rates are high across the globe with significant challenges to survive. Innovation centers, incubation models and various other interventions have impacted SMME survival but more should be done. The research presented in this paper revolves around a theoretical digital platform for SMME sustainability. The platform is evolutionary and based on large corporate processes and systems, subdued and modified for SMME support. Core SMME processes are digitalized and provide for a single strategy. The evolutionary platform builds over time and evolves to an intuitive digital SMME support system. An initial literature analysis leading onto a theoretical SMME framework and systems dynamics model is presented.

ТРАНСНАЦІОНАЛЬНІ КОРПОРАЦІЇ ТА ЇХ РОЛЬ У ФОРМУВАННІ СТРАТЕГІЙ УПРАВЛІННЯ ФІНАНСОВИМИ РИЗИКАМИ

The article reveals the role of transnational corporations (TNCs) in the modern globalized world and their influence on the formation of financial risk management strategies. The main focus is on the methods and tools that TNCs use to minimize potential losses and optimize profitability, namely: hedging, diversification, insurance, creation of reserve funds and the use of modern technologies. The article emphasizes the importance of a systematic approach to risk management to ensure the long-term stability and competitiveness of TNCs at the international level. Emphasis is placed on how globalization and growing international competition require TNCs to better understand and adapt to financial challenges. Special attention is paid to the impact of modern technologies on risk management processes, including automation, analytics and forecasting. It highlights how MNCs can use these technologies to improve their efficiency, ensure financial stability and strengthen the confidence of shareholders and investors. Ultimately, the article highlights the importance of an innovative approach to financial risk management in the ever-changing and uncertain global business environment. Case studies and case studies are reviewed, demonstrating how leading MNCs have dealt with specific financial challenges and what strategies they have used to ensure their profitability and growth. Through these examples, readers are provided with a deeper understanding of the real-world application of theoretical concepts in the field of risk management. Future trends in the field of financial risk management are indicated, in particular, the role of artificial intelligence, blockchain and other advanced technologies that can radically change the approach to financial planning and analysis. It is emphasized that the success of modern TNCs largely depends on their ability to adapt to rapidly changing market conditions, using innovative strategies and technologies for effective financial risk management.

Financial Management Practices and Performance of Deposit Money Banks in Emerging Market

The purpose of this study was to determine the impact of financial management practises on the performance of Nigerian deposit money banks (DMBs). The largest financial organisations listed on the Nigerian Stock Exchange are DMBs. Financial management practises are intended to enhance banks' efficiency in financial intermediation and profit margins. Sector analysis may be used to determine the financial sector's performance and sustainability. Panel data were analysed in this research. The data for DMBs were analysed using appropriate statistical methods. In light of the conducted study, it can be concluded that financial management practises have an effect on bank performance in Nigeria. The research found that, given the industry's high level of competition and the need to perform financially, there is a need to create a strong and effective financial management strategy that ensures maximum return, increases firm share value, and maximises shareholder return.

GO BUMDES BERJAYA (Gerakan Membangun Operasional Badan Usaha Milik Desa yang Berdikari Sejahtera dan Melayani)

Village-Owned Enterprises (BUMDES) are a breakthrough in advancing villages and improving the welfare of their citizens through a business unit scheme. In fact, BUMDES can be used as a means of boosting the economy of rural people. However, various problems have hindered the ideal management of BUMDES and provided benefits for the village and its citizens. This Community Service Program is designed to provide an effort to improve the non-ideal condition of BUMDES in order to become Berjaya (Berdikari Sejahtera Melayani). This program focuses on building operations or pioneering BUMDES which is still not being carried out seriously in many villages in Banten Province. The selected partner villages were identified as having three main problems, namely weak institutional governance as a business entity, and not yet in the form of a legal entity. Second, the lack of types/business products and not optimal profits from the sale of business products. In addition, there is also no identification of new products based on local advantages that involve broad participation from the community. Third, there is no village asset management and good financial management. This problem can be overcome by implementing 3 (three) main programs for structuring the organization and activities of BUMDES, namely Institutional Strengthening of Business Entities registered as Legal Entities; Identification of key products and businesses based on local advantages; and Formulation of Village Asset and Financial Management Strategies. This program can be implemented by using a stimulus method approach in the form of Counseling and Training-based Guidance, as well as practical assistance/simulation to overcome all priority issues.

An Analysis of the Financial Liquidity Management Strategy in Construction Companies Operating in the Podkarpackie Province

The activity of each construction company in conditions of high competitiveness is exposed to a number of risks that make it difficult to maintain high financial liquidity. In order to provide the continuity of ongoing economic processes and to be able to develop, entities are forced to build optimal financial management strategies for them. Enterprises can choose between a conservative, moderate and aggressive strategy, which is largely determined by the way they manage their current assets and short-term liabilities. In the case of construction companies, it is also not without significance that they are particularly sensitive to fluctuations in the economic situation and changes in the macroeconomic environment, which imply the availability of funds. The purpose of this paper is to analyze the financial liquidity management strategy of construction sector Polish enterprises from the Podkarpackie Province in 2017–2019 and the impact of this strategy on the profitability of the surveyed entities. In order to achieve the goal, the issues related to the classification of financial liquidity and individual liquidity management strategies are discussed. The issues and the goal set determined the choice of research methods. Literature studies, the Mann–Whitney U test, cluster analysis and Ward’s method were used. The research was carried out on a group of the 10 largest construction companies from the Podkarpackie Province. The selection of entities for the research was deliberately based on enterprises that submit their financial statements to the National Court Register. The conducted research showed that small and large enterprises applied different liquidity management policies even though they operate in the same industry and region. The small entities preferred a conservative strategy, while large entities preferred a moderate strategy. The existence of an inverse relationship between the phenomenon of financial liquidity and profitability of economic entities was also confirmed.

Value Orientation and Strategy Analysis of Financial Management of Modern Enterprises

Financial management serves as an important part of modern enterprise management, which plays an important role in improving capital strength of enterprise, improving resource allocation and comprehensive benefits of enterprise. In view of the importance of financial management, enterprises should clarify the value orientation of financial management, optimize the choice of financial management strategies to improve the efficiency and effect of financial management. This paper initially and systematically introduces the scientific connotation of modern enterprise financial management, expounding the value orientation of modern enterprise financial management, and finally the effective strategies of modern enterprise financial management is analyzed in order to help enterprises better carry out financial management activities.

Analisis Strategi Pengelolaan Keuangan dan Strategi Keberlanjutan Usaha Kerajinan Genteng Pejaten di Masa Pandemi Covid-19 (Studi Kasus di UD. Surya Indah, Desa Pejaten, Tabanan)

This research aims to analyze financial management strategies and strategies for the sustainability of the Pejaten tile craft business during the covid-19 period at UD. Surya Indah, Pejaten Village, Tabanan. This research uses a qualitative approach and will describe the research method, namely research case studies. Sources of data in this study are primary data and secondary data. The data obtained were then analyzed by data analysis techniques, namely data collection, data reduction, data presentation and drawing conclusions. The results of this study state that (1) the financial management strategy at UD. Surya Indah uses a petty cash system with a fluctuating method (2) the management system is not yet effective in controlling the company's financial management, therefore researchers contribute to assisting in the preparation of SAK EMKM, (3) efforts made by UD. Surya Indah to be able to maintain its business by paying attention to aspects of capital planning, raw material production process, marketing and customers, technology used, workforce owned, and forward looking.Keywords: Financial Management Strategy, Sustainability Strategya

Tokenisation of corporate real estate on the blockchain : New strategies for corporate ownership and financial management

Real estate tokenisation is the process of creating a digital asset that represents ownership rights in a physical or digital asset, such as a physical property or real estate fund, on a blockchain-based system. Features of a ‘token-based economy’ on the blockchain can quicken the transformation of corporate real estate (CRE) ownership by flipping the equity and liquidity paradigm that traditionally plagues investment. For example, by providing new financial infrastructure for private secondary markets, the token economy taps global capital markets to provide an important liquidity option that was not previously available for privately held CRE assets. Separately, security tokens used together with programmable algorithms, also known as ‘smart contracts’, bring about unprecedented levels of connectivity and programmability that enhance CRE financial management, thereby removing much of the costly inefficiencies found in traditional systems. Industry experts agree that the digitisation of CRE on the blockchain — comprising tokenised real estate assets and smart contracts working off digital ledger technology — will bring about unprecedented levels of benefit to the CRE industry and the wider general economy. The impact of CRE tokenisation must not be studied in isolation, however, but within a greater perspective of ongoing industry themes. The Fourth Industrial Revolution (Industry 4.0) is driving disruptive change across all industries by fundamentally changing the way business models operate. By extension, this influences corporate motivations for how much CRE ownership is needed in the future. Separately, the continued shift towards privatisation instead of public listings over the last two decades have implications for how companies access capital markets, and consequently, how working capital in CRE asset portfolios can be recycled. This paper explores the disruptive benefits that the tokenisation of real estate on the blockchain brings to the CRE industry, in linkage with these overarching industry themes, with the aim of adding cross-disciplinary insight to the literature.

Analyzing the factors of financial strategy of recreational sphere enterprises

Subject. This article analyzes the role of the factors of the modified model, taking into account the specifics of the recreational sphere. Objectives. The article aims to assess the role of the factors of the modified model for recreational enterprises. Methods. For the study, I used general scientific research methods. Results. Peculiarities of the recreational sphere cause the need to modify the DuPont model. The model is obtained in a mixed form. The model is obtained in a mixed form. This helps take into account the factors of operating and other activities in the financial result and profitability separately. The obtained results help assess the role and importance of factors in the financial management strategy, as well as the reasons for their impact on the efficiency of recreational enterprises. Conclusions. The importance of resource productivity and the increase in the share of operating activities remain underestimated in the model if considering a single enterprise case. For enterprises of the recreational sphere as a whole, there is a need to further study the model by establishing correlations of factors with the performance indicators.