Financial Resilience Research Articles

Vital Role of Indian Railways Battling the Novel Corona Virus (COVID-19 Pandemic)

This article discusses the role of Indian Railways during the COVID-19 pandemic, and how the transporter has been helping to support government efforts to combat the virus. Indian Railways have taken upon themselves to rejuvenate the Indian Railway system and invigorate the national fight against the extant Covid-19 pandemic. The railways have been termed as a lifeline of the nation, since it ensures effective functioning of necessary goods and services throughout India. Indian Railways has ensured a phenomenal endeavor in its quest to prevent spread of COVID-19 virus to the greatest extent possible. In view of this, they have taken all best steps to ensure safety and well-being of its passengers. The COVID-19 pandemic has disrupted the lives of people all around the world, and India is no exception. The Indian government, along with many other organizations, have been working hard to combat the effects of the pandemic. One such organization is Indian Railways, which has been at the forefront of the fight against the pandemic. In this blog, we will take a look at the role of Indian Railways in fighting the pandemic and how they have contributed to India's financial resilience. Indian Railways adopted multipronged strategy to fight COVID-19 and more than 2500 doctors and 35000 paramedic staff to meet the COVID-19 challenge in a phased manner. Around 5000 beds in 17 dedicated hospitals and 33 hospital blocks in Railway Hospitals have been identified for treatment of COVID-19 patients.

Influences of artificial intelligence and blockchain technology on financial resilience of supply chains

Emerging technologies, such as artificial intelligence (AI) and blockchain technology (BT), have revolutionized the way businesses are managed nowadays, whereas the focus on financial resilience remains critical even in an era of complexity and uncertainty. This study empirically explores the capabilities of AI and BT to ascertain its role in financial resilience of a supply chain. Further study considers the environmental dynamism moderating the relationship of AI and BT leading to financial resilience of supply chains. Adopting a multi-methodological approach, we conduct an empirical and qualitative study to explore the relationship between AI, BT, and the financial resilience of supply chains. For data collection, 202 survey responses from supply chain professionals were collected to test the theoretical model, whereas the qualitative study collected responses from 25 supply chain professionals using semi-structured interviews and the grounded approach. After using structural equation modeling for the quantitative data analysis, our findings indicate that, compared to artificial intelligence, blockchain technology is stronger in facilitating financial resilience of a supply chain under the moderating influence of environmental dynamism. Thematic analysis for the qualitative study indicate the role of AI in sensing, blockchain in seizing and financial resilience in reconfiguring the opportunities lie in supply chain. AI is suitable for sensing the business environment and facilitating blockchain deployment. This study offers a theoretical contribution, along with practical implications for managers.

Financial resilience analysis of floating production, storage and offloading plant operated in Norwegian Arctic region: Case study using inter-/transdisciplinary system dynamics modeling and simulation

Financial resilience analysis of floating production, storage and offloading plant operated in Norwegian Arctic region: Case study using inter-/transdisciplinary system dynamics modeling and simulation

Cognitive abilities and financial resilience: evidence from an emerging market

PurposeThe current study is to examine the association between cognitive abilities and financial resilience among millennial single parents. This study examines the role of cognitive abilities on financial resilience after controlling for key demographic variables – gender, age, university degree, employment status and staying with parents.Design/methodology/approachUsing the ordered logit regression approach, the authors analyzed results for 395 single parents (237 single mothers and 159 single fathers) aged 31 to 40 in India. Financial resilience is measured using economic resources, financial resources, financial knowledge and behavior, and social capital. The authors further provide several robustness tests to validate their findings. The results are controlled for state-fixed effects.FindingsThe authors find a significant impact of single parents' cognitive abilities on their financial resilience. This study also found that gender, age, university degree, employment status and staying with parents influence single parents' financial resilience. Single mothers are found to have higher levels of both cognitive abilities and financial resilience scores than single fathers.Practical implicationsFinancial institutions, marketers and financial advisors can find innovative ways to increase the financial resilience of single parents by improving their cognitive ability. Also, policymakers should focus on interventions to increase single parents' education level to increase their financial resilience and provide policy support to those without any parental support system.Originality/valueThis study extends the literature on financial resilience in two directions – by establishing a relationship between cognitive abilities and financial resilience and studying the financial resilience of a vulnerable societal section-millennial single parents. The study also extends the literature on single parents' financial vulnerability by establishing a relationship between key demographic variables and their financial resilience.

Factors increasing the financial capacity and development of territorial communities in the context of modern challenges

There are various challenges in today's world, such as economic crises, global pandemics, and climate change, which have a major impact on the financial resilience and development of local communities. Today, the decentralization process has been completed, with territorial communities gaining more powers and responsibilities. Understanding the factors that contribute to the financial resilience and development of these communities is crucial to ensure their efficiency and viability, as well as opportunities for improved public governance, cost optimization, and more efficient use of resources. The article aims to examine the factors increasing the financial capacity and development of territorial communities in the context of modern challenges. Results. The article identifies internal and external factors for increasing the financial capacity of territorial communities. The advantages of the competitiveness of territorial communities are studied, and the main features for strengthening their financial stability are identified. The possibilities of local communities are considered in determining the attractiveness for investment in their territory, accounting for available resources and ways of their use, the use of labor, as well as the benefits that may arise during the relocation of enterprises due to active armed conflicts in a large territory of the country. Conclusion. Investment resources of territorial communities and the possibilities of their use are characterized. The investment attractiveness of territories is determined. The objects of investment activity may include any property, fixed assets, current assets in all sectors of the national economy, securities and targeted cash deposits, scientific and technical products, property rights, and resources. The instruments of investment attraction, their legal basis, and their effectiveness for the development of territorial communities are substantiated. Keywords: territorial communities, capacity of territorial communities, competitiveness of territorial communities, strategy, socio-economic development, decentralization.

Financial Resilience Strategy on Cancer Survivors Household in East Java

The problem of this research is how to make a financial resilience strategy faced by households during the economic crisis. The purpose of this study is to analyze the strategy of household financial resilience during an economic crisis. The design in this study uses a quantitative approach by collecting data through surveys.Respondents in this study were breast cancer survivors in East Java.The findings in this study are that every household needs a financial strategy in dealing with a crisis.An adaptive capacity strategy is needed so that household financial resilience remains flexible.Absorption strategy is a strategy in building financial resilience capability which is always strived to be in a stable position.A transformative capacity strategy is carried out to build household financial resilience when experiencing financial shocks by making drastic changes to financial planning.

Determinants of financial resilience: insights from an emerging economy

The Organisation for Economic Co-operation and Development Financial Literacy Survey of 2018 response is used to study the impact of financial knowledge, financial inclusion, and socio-demographic characteristics on financial resilience. The measurement of financial resilience considers elements related to keeping control of money, taking care of expenditures, having a financial cushion, handling financial shortfall or stress, and having financial planning. Using a sample of 3395 individuals across Malaysia, we find that greater financial knowledge is associated with the probability of being financially resilient. Greater financial inclusion in terms of having more bank accounts and holding more financial products is linked to the probability of being financially resilient. We also find that financial resilience varies across certain socio-demographic characteristics. Implications of the findings are discussed.

Participatory Governance as a Success Factor in Equity Crowdfunding Campaigns for Cultural Heritage

This study seeks to address a research gap about the role of participatory governance as a success factor in successful equity crowdfunding (ECF) campaigns in the cultural heritage sector. The research stems from calls coming from both equity crowdfunding and cultural heritage research. Concerning equity crowdfunding research, academics have pointed out the need for more research on specific economic sectors and topics related to governance. Concerning cultural heritage and equity crowdfunding, our investigation is in line both with the calls for differentiation of funding schemes that could increase the financial resilience of cultural heritage organizations and with the academic and policy debate on the need to promote engagement and participation, also through participatory governance. Via QCA (Qualitative Comparative Analysis), this research investigates the peculiarities and success factors of equity crowdfunding for cultural heritage, with a special focus on participatory governance. The results indicate that ECF campaigns in this field can raise more funds than the targeted ones if they propose participatory governance schemes and enhance emotional and cultural heritage-related signals, thus differentiating ECF in cultural heritage from ECF in other sectors.

Financial risk and resiliency on US dairy farms: Measures, thresholds, and management implications

Given the revenue and cost volatility with resulting tight profit margins in dairy farming, it is increasingly important to measure, monitor, and understand farm financial risk. Solvency, liquidity, debt repayment capacity, and financial efficiency measures can reveal potential problem areas and assist in financial risk management. Financial risk is defined as uncertainty about interest rates, willingness of lender to keep or put money into the business, ability to meet cash flow needs, and the market value of collateral. Financial resilience is defined as the ability to withstand events that impact firm net income. Solvency was measured by equity to asset ratio. Liquidity was measured by current ratio. Repayment capacity was measured by debt coverage ratio. Financial efficiency was measured by operational expense ratio and net farm income ratio. Critical thresholds for these farm financial measures include those determined by US agricultural lenders since maintaining access to outside capital is important for farm financial management. To demonstrate these concepts and measure financial risk and resilience, this research uses farm data from a balanced panel of 105 New York dairy farms from 2010 through 2019. Results reveal that there were 4 average, 2 good, and 4 poor financial years for these operations on average as measured by farm profitability. Solvency positions were relatively stable being based on long-term asset and liability values. During the poor years, the percent of farms below danger thresholds for liquidity and debt repayment capacity spiked.

Increasing countries’ financial resilience through global catastrophe risk pooling

Extreme weather events can severely impact national economies, leading the recovery of low- to middle-income countries to become reliant on foreign financial aid. Foreign aid is, however, slow and uncertain. Therefore, the Sendai Framework and the Paris Agreement advocate for more resilient financial instruments like sovereign catastrophe risk pools. Existing pools, however, might not fully exploit their financial resilience potential because they were not designed to maximize risk diversification and because they pool risk only regionally. Here we introduce a method that forms pools by maximizing risk diversification and apply it to assess the benefits of global pooling compared to regional pooling. We find that global pooling always provides a higher risk diversification, it better distributes countries’ risk shares in the pool’s risk and it increases the number of countries profiting from risk pooling. Optimal global pooling could provide a diversification increase to existing pools of up to 65 %.

Live Music in the Time of Corona: On the Resilience and Impact of a Philharmonic Orchestra on the Urban Economy

During the COVID-19 pandemic, many governments enforced epidemic policies of social distancing, restrictions of professional practice, and the prohibition of cultural live performances. Because such policies dried up important sources of income in the cultural and tourism industries, this paper examines how cultural institutions coped with this crisis. Drawing on the case of the Mannheim Philharmonic Orchestra in Germany, we collected original data and employed a regional economic impact analysis to determine both the financial resilience of the Orchestra and its impact on the urban economy. Because the Orchestra could not reduce costs during the COVID-19 pandemic, public subsidies were crucial to fill the income gap of missed live concerts. In turn, the regional impact analysis suggests that the Orchestra maintained its positive effect on the economic demand for goods and services in the urban economy. When balancing the city’s subsidies with the rental (city concert halls) and tax incomes generated by the Orchestra’s local impact, the Orchestra managed to induce surplus revenue for the city’s treasury.

Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries

The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic valueadded indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital.

Financial resilience of Spanish wineries during the COVID-19 lockdown

Purpose This study aims to focus on the impact of COVID-19 on the Spanish wine sector and the financial resilience of Spanish wineries in the period 2019–2020. Design/methodology/approach The data set contains 355 limited companies of the Spanish wine sector which were active in the period 2019–2020. The explanatory variables used are size and age of the company, exports, subsidies and gender distribution in the workforce. The financial statements of the companies are treated as compositional data, using log-ratios for asset structure, leverage, margin, turnover and debt maturity. The first-difference estimator is used for the panel-data model relating the differences in the log-ratios between 2020 and 2019 to the explanatory variables. Findings In average terms, margin and turnover have significantly worsened between 2019 and 2020, while debt maturity has increased. A larger firm size, a greater age, a higher share of women in the workforce and subsidies have made wineries more resilient between 2019 and 2020. Originality/value To the best of the authors’ knowledge, this is the first financial statement analysis of the impact of COVID-19 in the winery sector.

Employment status and financial resilience during the COVID-19 pandemic

PurposeThe purpose of this study is to examine the association between employment status and financial resilience during the COVID-19 pandemic.Design/methodology/approachThis study employed US nationally representative data. A financial resilience index was created based on households' ability to pay for basic living expenses and the resources used to meet such needs. Employment status was categorized into seven groups based on whether the respondent worked for pay in the last seven days, experience of income shock since the start of the pandemic for workers' household and reasons for not working for non-workers' household. A generalized linear model (GLM) model was used to examine the relationship between respondent employment status and household financial resilience. An ordinary least square (OLS) logistic regression with no proportional odds assumption was employed to investigate the association between the respondent's employment status and household ability to pay for basic living expenses. A logistic regression was utilized to explore the relationship between respondent employment status and resources used by the household to pay for basic living expenses.FindingsThe top three least financially resilient households include those in which the respondent's work was affected by the pandemic, the respondent did not work due to being sick with COVID or caring for someone with COVID and the respondent did not work due to fear of COVID.Research limitations/implicationsFuture research should distinguish the reasons for not working when examining the association between unemployment and household financial resilience as well as their overall financial wellbeing. Cross-sectional data cannot establish a causal relationship. Findings using US data may not be generalized to other countries.Practical implicationsWorkers with health and employment risks and financial professionals working with these clients should consider these risks when building household financial safety net. Policymakers should develop measures to allow normal business operations while effectively contain the spread of the COVID-19 virus.Originality/valueThis study created a financial resilience index that considers various household situations, allows both internal and external resources to be utilized to cover basic living expenses and reflects the diverse nature of financial resilience. This study is the first to look into voluntary and involuntary labor force separation for COVID-19 and non-COVID-19 related reasons.

Financial Solace: Malaysian Credit Counselling and Debt Management Agency Responses to COVID-19 Challenges

This study evaluates the measures undertaken by the Credit Counselling and Debt Management Agency (AKPK) to assist those financially distressed due to their inability to meet their financial commitments amidst the COVID-19 pandemic. Adopting secondary analysis of qualitative data, relevant secondary data, including journal articles, annual reports, and newspaper articles, were analyzed. The study finds that measures adopted by AKPK in response to the COVID-19 pandemic include reinforcing the workforce, enhancing IT infrastructures, deploying digital platforms, using various media channels, introducing online apps, online portals, online webinars, online learning modules, and online payment facility for all debt management participants. AKPK is also entrusted with handling small and medium enterprises (SMEs) under the Small Debt Resolution Scheme. A dedicated SME Helpdesk is established to facilitate the process. AKPK’s continual support to provide financial aid is reflected in its collaborative effort with the banking industry under the Financial Management and Resilience Program and the Financial Resilience Support Program. However, the government should seriously consider strengthening personal data protection laws because of AKPK’s significant reliance on digital platforms. Similarly, appropriate government bodies must take quick action to address the digital divide issue and promote inclusion to reduce disparity in terms of access to online services offered by AKPK. Also, since certain individuals or SMEs with credit facilities with entities not regulated by Bank Negara Malaysia are deprived of this incentive, relevant regulators should undertake actions to provide a similar facility. This study is significant in that it provides lessons to be learned by other credit counseling and debt management agencies in adopting effective measures to enable them to adapt to the new normal. Doi: 10.28991/ESJ-2023-SPER-011 Full Text: PDF

Measuring financial resilience with consumer sentiment data from India

PurposeCovid-19 sparked new interest in consumer financial resilience (CFR) amongst regulatory authorities, financial institutions, policymakers and the academia. No financial and health crisis has been worse than Covid-19, erasing the growth momentum of nations at all development stages. This study measures consumers' current financial resilience and future expectations within India's emerging market and its likely response to policy measures.Design/methodology/approachCFR is investigated using individual household data on economic state, employment, income and savings from the Reserve Bank of India's consumer confidence survey. The empirical approach is based on the temporal time-series data with mixed frequency regression. Consumers' current and future expectation indices appear as the regressand, whereas credit-deposit ratio, credit outstanding, number of bank accounts and digital transactions act as main regressors.FindingsThe response of consumers' current situation is 3.50 times higher than that of their future expectations. This implies that a rise in the credit-deposit ratio and credit line positively affects CFR. In contrast, a higher number of bank accounts, a proxy for financial inclusion, adversely affect consumer's well-being possibly owing to the government's failure to provide financial support through banking networks. Digital payments (value) positively affect consumers' current situation and future expectations.Practical implicationsThe results of this study inform policy formulation for enhancing financial resilience. Consumer sentiment index acts as a proxy for CFR.Originality/valueFinancial resilience is a concern for policymakers. This study is one of the first studies linking CFR with financial inclusion, credit creation and digital financial capability.

The mediating role of financial management skills: Examining the impact of e-government adoption and social support on financial resilience

In today's rapidly changing economic landscape, financial resilience has become increasingly important especially for public sector organizations. This study investigates the impact of e-government adoption and social support on individuals' financial resilience in Indonesia, with a focus on the mediating role of financial management skills. A quantitative research methodology was employed, and 348 complete and suitable questionnaires from individuals in the financial department in local government in Indonesia were analyzed using SmartPLS 4.0 software. The results indicate a significant relationship between e-government adoption and financial management skills, suggesting that digitizing government services contributes to improved financial resilience. Additionally, social support was found to have a positive impact on financial management skills, supporting the notion that social networks provide resources and support for financial well-being. Financial management skills were also found to be significantly associated with financial resilience, indicating that individuals with strong financial management skills are better equipped to adapt to changing circumstances. While the mediating effect of financial management skills between e-government adoption and financial resilience was not significant, it was significant in the relationship between social support and financial resilience. These findings provide insights into the factors that enhance financial resilience in an increasingly digitized society and inform strategies to promote financial well-being in Indonesia.

The effect of auditing quality and internal control on financial resilience in public sector organi-zations: Information quality as the mediating factor

In dynamic socio-economic environments, public sector organizations and companies with strong financial resilience are better equipped to adapt to economic changes, socio-economic fluctuations, and shifts in the business landscape with greater flexibility. Financial resilience also has implications for an organization's liquidity. One of the critical factors influencing financial resilience in public sector organizations is the quality of its audit. Ensuring high-quality audits is vital for assessing the accuracy and reliability of an organization's financial statements. This study aims to investigate the impact of audit quality and internal control on financial security, with information quality serving as a mediating factor. Quantitative research methods were employed to collect and statistically analyze the data. The study gathered information through questionnaires distributed to the Auditors of the Supreme Audit Board, with a sample size of 321 participants. The data was then processed using SmartPLS software. The research findings demonstrate a significant relationship between audit quality and internal control, positively influencing the organization’s financial resilience. Furthermore, the study reveals that information quality acts as a crucial mediator, linking audit quality and internal control to financial security. The analysis shows that audit quality significantly affects information quality. However, the direct impact of audit quality on financial resilience is not significant. On the other hand, internal control significantly influences both information quality and the organization’s financial resilience. Additionally, the quality of information also has a significant effect on the organization’s financial resilience.

An example of digital field training for a diversity-friendly (and pandemic-proof) field education in geoengineering disciplines

Geological field training and site inspections are important components of the education in geological and civil engineering and associated disciplines. However, field training is not inclusive, does not consider students’ family situations, for example associated with care work, places high demands on students’ financial resilience, and therefore does not address family educational backgrounds. Also, it is not pandemic proof. Through the implementation of digital field training, students can get access to important aspects of field work in a barrier-reduced and location-independent way. Knowledge associated with geological field training therefore becomes more accessible and inclusive. Moreover, outcrops or specific rock structures that are difficult or unsafe to access in the field can be explored digitally. In this project, parts of a geological mapping course physically held in southern Germany and taught at the Faculty of Geosciences at Ruhr-Universität Bochum were turned into a digital field course. A virtual 360° tour with 3D models of outcrops and rock samples was complemented by photo, video and audio material with information on the geological setting. The digital field training was integrated via Moodle as a full lecture with H5P elements. Additionally, individual components were combined in a game engine, so that students can immerse themselves into the project settings via virtual reality experiences or on-screen. The learning outcome includes the creation of a geological map in the study area in QGIS that is complemented by a field report. The choice of equipment, procedure and results are presented. While acknowledging that a digital experience cannot fully replace the learning experience of physical field trips, it can be a valuable complement to physical field work, provide access to inaccessible geological regions, support interdisciplinary teaching projects, and provide an alternative to marginalised students who would otherwise not be able to complete a geoengineering curriculum.

A Bibliometric Analysis of Behavioural Finance and Financial Resilience

A Bibliometric Analysis of Behavioural Finance and Financial Resilience