Financial Resilience Research Articles

RESILIENCE OF EU HEALTHCARE SYSTEMS

The article highlights the critical role of health­care system resilience in responding effectively to public health crises, with a particular emphasis on financing, effectiveness, and preparedness. It delves into a comparative analysis of healthcare costs and system effectiveness in several EU countries, revealing that higher expenditure doesnʼt always equate to greater resilience. The article also highlights the lack of investment in preventing measures, even in econo­mically developed countries, resulting in minimal improvements in healthcare system resilience. It has been noted that there is no correlation between strict government measures during the COVID-19 pandemic and healthcare system effectiveness. The importance of synergy between government epidemic control actions and healthcare system resilience is emphasized. The key factors that influenced healthcare system resilience during the pandemic, including proactive prepa­redness, resource allocation, data analytics capabi­lities, communication, public trust, and adaptive policies have been identified in the research. To enhance healthcare system resilience, it is recom­mended to focus on financial resilience, healthcare personnel resilience, and health infrastructure resilience. Strategies to achieve this include effective governance, flexible financing, resource availability, and adaptable service delivery. The multifaceted nature of healthcare system resilience and the need for a comprehensive approach to its provision in the conditions of emergency situations in the field of healthcare are emphasized. The authorsʼ analysis reveals a complex interplay of factors that contribute to healthcare system resilience, which can be used by government officials as a roadmap for strengthening the healthcare systems in the context of future challenges.

Financial literacy and household financial resilience

Rising uncertainty has drawn researchers’ attention towards households’ anti-risk capacities. Using data from the China Household Finance Survey covering 2019 to 2021, this study investigates the impact of financial literacy on household financial resilience. We measure household financial resilience by analyzing inter-period variations in liquid assets pre- and post-Covid-19, coupled with constructing a sensitivity index. Our analysis indicates that financial literacy significantly enhances financial resilience through the wealth effect and risk mitigation effect. This study highlights the critical role of financial literacy in mitigating risks and accelerating recovery from financial disturbances.

Financial Resilience of Young and Beginning Farmers under Recession: A Transition Probability Approach

Abstract This paper examines the relative financial strength and endurance of several paired classes of farmers according to business maturity (beginning versus mature farm businesses) and farm operators’ age and experience (young versus older, more experienced farm operators) by utilizing transition probability approach. Results show that the financial stress resulting from the late 2000s recession did not significantly influence the financial vitality of farms in general, regardless of the farm type. The financial strength of farms operated by young farm operators and beginning farms during the recessionary period remained at favorable levels, although their performances were lower than their counterparts. JEL classification numbers: Q10, Q12, Q14. Keywords: Transition probability, Recession, Agriculture, Credit migration, Agricultural finance.

Capturing Islamic bank performance in Indonesia during the COVID-19 crisis: RGEC and SCNP approaches

While adhering to the unique principle of Islamic value, Islamic banks are subject to any occurring crisis, just like other banks in common. After the end of the COVID-19 crisis, it is important to determine whether Islamic banking can demonstrate its resilience based on the unique values it upholds. Therefore, the primary objective of this study is to capture how Islamic banks performed during the unprecedented challenge posed by COVID-19. By utilizing the data generated from financial reports, this study employs the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method that was introduced by Indonesia Central Bank and SCnP (Sharia Conformity and Profitability) measurement. The findings show that by utilizing RGEC, the study classifies Islamic banks into tiers of health, distinguishing 7 as very healthy, 5 as healthy, and 2 as fairly healthy. Meanwhile, SCnP sheds light on the balance between Sharia conformity and profitability, highlighting 2 Islamic banks with commendable equilibrium, 5 displaying a tilt towards high profitability and low conformity, 4 with a tendency towards Shariah conformity with low profitability, and 3 struggling with challenges in both aspects. The study concludes the overall financial resilience of the majority of Islamic banks in Indonesia during the pandemic while noting that some banks faced challenges in achieving a harmonious balance between profitability and Sharia conformity.

Resilience evaluation of low-carbon supply chain based on improved matter-element extension model.

How to evaluate the resilience level and change trend of supply chain is an important research direction in current supply chain management practice. This paper proposes a new method of supply chain resilience assessment based on hesitant fuzzy linguistic term set (HFLTS) and matter element extension theory. Firstly, based on the research status quo at home and abroad, a low-carbon enterprise supply chain resilience assessment index system is established, which includes six first-level indicators and corresponding 21 second-level indicators of product supply resilience, resource resilience, partner resilience, information response resilience, financial resilience and knowledge resilience. Secondly, HFLTS was used to collect expert opinions and Ordered Weighted Arithmetic (OWA) to calculate the expert composite language, by which the fuzzy evaluation matrix of supply chain resilience assessment indicators was obtained. Once again, the resilience indicator weights are determined based on a game-theoretic portfolio assignment method combining the best-worst method (BWM) and the CRITIC method. Finally, the nearness degree function is combined with the extension comprehensive evaluation method to improve the matter element extension model, and the supply chain resilience assessment model of low-carbon enterprises based on the game theory combination assignment-improved matter element extension is established. Taking X low-carbon enterprise as an example, the evaluation results show that the supply chain resilience level of this enterprise is II, and the eigenvalue of the grade variable is 2.69, and the supply chain resilience is shifting to III, and the supply chain resilience is shifting to III, which indicates that the supply chain resilience of this enterprise is being enhanced. Therefore, the improved matter element extension not only ensures the accuracy of the evaluation results, but also has higher prediction accuracy.

Audit Internal terhadap Kecurangan dan Penyimpangan Keuangan Pemerintah Daerah

This study examines the role of Internal Audit in strengthening local government financial resilience by integrating the concept of financial resilience from various sources. The research found that Internal Audit can contribute to responding to and overcoming financial stresses by improving the effectiveness of internal control, compliance, operational efficiency, and risk management. Internal Audit not only responds to financial pressures, but is also proactive in fraud prevention and financial risk management. The research method used a qualitative case study approach, the research involved 15 internal audit practitioners from various government institutions. The holistic involves in-depth interviews, document analysis, and direct observation to dive into the internal audit practices conducted by respondents. The results show that effective internal audit practices not only have an impact on fraud detection and prevention, but also play a crucial role in improving the integrity of financial reporting and accountability of local governments. However, some obstacles, such as budget, personnel, and technology constraints, may affect internal audit performance. Improvement recommendations include greater investment in technology training, better budget allocation, and increased number of personnel in internal audit.

The Impact of Personal Financial Management and Emotional Intelligence on Financial Well-being with The Mediation of Risk Management Attitude

This study investigates the intricate relationships among personal financial management, emotional intelligence, risk management attitude, and financial well-being. The study employs a random sampling technique with a sample size of 41 individuals from Bank Mandiri KCP Solo Slamet Riyadi. Path analysis, using the SmartPLS software, is utilized to explore direct and indirect effects. The results reveal a significant positive impact of personal financial management on risk management attitude and financial well-being. However, emotional intelligence is not found to be a significant predictor of risk management attitude or financial well-being. The study concludes that effective personal financial management practices play a crucial role in enhancing financial well-being, both directly and indirectly through influencing risk management attitudes. These findings provide insights for interventions and educational programs aimed at improving individuals' financial resilience and satisfaction by emphasizing responsible financial habits and decision-making.

Navigating Financial Frontiers in the Tourism Economies of Kosovo and Albania during and beyond COVID-19

The problem addressed in this study is the profound impact of the COVID-19 pandemic on the tourism economies of Kosovo (KOS) and Albania (AL), which led to economic–financial stagnation and price increases. The aim was to analyze the financial frontier challenges facing the tourism industry during COVID-19 and beyond and propose effective strategies for shaping a sustainable future for countries within Europe with great potential for tourism development in the current decade. The survey was conducted in 102 locations, including cities, municipalities, regions, villages, and neighborhoods in both countries over the years 2020–2023, while data analysis was performed using a cluster analysis (K-means and hierarchical) and the multidimensional scaling method (Alscal). The results highlighted (a) the severe impact of COVID-19 on both the population and businesses in the tourism sector, which will persist beyond the pandemic, (b) the indispensable role of government intervention in alleviating the financial crisis, (c) the need for innovative approaches and accurate financial management by both the country and businesses to attract tourists, and (d) the importance of control and management for financial sustainability. This paper is of significant importance to tourism destinations as it provides insights into the severe impact of COVID-19 on both the population and businesses in the tourism economies. By highlighting the indispensable role of government intervention, the need for innovative approaches and accurate financial management, and the importance of control and management for financial sustainability, the study offers valuable guidance for tourism destinations in navigating the current crisis and attracting tourists. Furthermore, the paper emphasizes the need for future studies to explore opportunities for long-term financial resilience and growth, contributing to the development of sustainable tourism destinations.

Examining Market Competition and Financial Stability: An Econometric Analysis of India’s Life and Non-Life Insurance Industry

Using the panel data analysis, this study investigates the evolution of competition over the study period and subsequently examines the relationship between competitiveness and financial stability within the Indian insurance segment. Adopting the methodology proposed by Boone (2008), competition is measured using the Boone indicator, while financial stability is quantified using the Z-score. Spanning over 15 years, i.e., 2009 to 2023, the study assesses both the life and non-life insurance segments within the Indian market. Throughout the study period, a decline in competition is observed across both segments, owing to the increased concentration among major insurers. Nevertheless, the study’s results support the Boyd and De Nicolo (2005) competition-stability hypothesis, suggesting that which suggests that increased market competition is associated with increased financial resilience. Additionally, the results using the Boone indicator highlight efficiency as the main mechanism by which competition fosters better financial stability. With their insights into the dynamics of competition and stability within the Indian insurance landscape, these findings have important ramifications for insurance companies, academics, and policymakers alike.

From oil reliance to financial resilience: have economic sanctions made OPEC countries’ healthcare financing independent from oil?

From oil reliance to financial resilience: have economic sanctions made OPEC countries’ healthcare financing independent from oil?

Facing Economic Uncertainty: Adaptive Audit Strategies

: This qualitative study delves into adaptive audit strategies amid economic uncertainty to investigate auditors' navigation of uncertain economic landscapes. Through a systematic review of relevant literature, employing purposive sampling and thematic analysis, the research aims to uncover key insights. Findings reveal that auditors deploy various adaptive practices, including integrating data analytics and advanced technologies, adopting risk-based auditing approaches, and utilizing scenario planning techniques. These strategies enhance audit quality, efficiency, and effectiveness by identifying patterns, prioritizing audit procedures, and assessing financial resilience. Challenges such as data privacy concerns and the need for technical expertise are identified. Future research opportunities include exploring the impact of emerging technologies on audit practices and assessing auditors' role in environmental, social, and governance factors. Overall, the study underscores the importance of agility, innovation, and adaptability in contemporary audit practices, offering valuable insights for auditors and organizations confronting economic uncertainty.

Comparative Analysis of Returns and Standard Deviations of Companies' Stocks: a Five-year Study (2019-2023)

The banking sector operates within a dynamic landscape characterized by a multitude of risks and uncertainties. This study aims to explore the intricate relationship between risk and return within the banking industry, shedding light on its implications for financial stability, investment decision-making, and strategic planning. Risk Management: Banks contend with various risks, including credit, market, liquidity, and operational risks. An in-depth understanding of the risk-return interplay is essential for implementing robust risk management strategies aimed at mitigating potential losses and safeguarding financial resilience. Investment Decisions: Banks are tasked with making crucial investment decisions across a spectrum of assets, including loans, securities, and other financial instruments. Evaluating the risk-return dynamics enables banks to assess potential returns vis-a-vis associated risks, guiding investment strategies to optimize profitability while prudently managing risk exposure. Regulatory Compliance: Regulatory frameworks mandate banks to uphold stringent capital adequacy standards to mitigate risks and ensure financial stability. Risk and return analysis provides insights into capital adequacy assessments, facilitating compliance with regulatory requirements.

Financial Fragility, Financial Resilience, and Pension Distributions

Financial Fragility, Financial Resilience, and Pension Distributions

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.

Safeguarding financial resilience through digital trust and responsible innovation

In the rapidly evolving financial industry landscape, the convergence of digital and physical realms, known as the ‘phygital era’, presents novel challenges for boards that aim to build digital trust and strengthen their financial resilience while fostering responsible innovation and maintaining their competitive edge in the global business arena. These encompass people management, processes and their digital technology portfolio. Building a new phygital culture, upskilling and reskilling the workforce, deploying a mix of intelligent automation and hybrid augmented workflows and deploying frontier technologies responsibly are now on the agenda for forward-thinking boards. The latest deep tech innovation trends in financial services offer exponential pathways for innovative solutions yet increase cybersecurity threats, create new ethical dilemmas and demand a new risk tolerance from board executives. Novel risk management styles, the value of harmonising cyber and ethics programmes, and leadership traits are potentially viable solutions for risk management at the board level in this phygital era. This paper proposes a trifecta that financial industry boards can embrace to adapt their risk governance to the demands of this phygital era: zero trust cybersecurity, ethics by design and risk management by design. By deploying this combination of strategies, boards within the finance industry can successfully navigate the complexities of the phygital era and steer their organisations towards a more secure, trustworthy and sustainable future.

How Financial Resilience Shapes Social and Public Health Policy Choices in Africa: Empirical Insights from the COVID-19 Pandemic

How Financial Resilience Shapes Social and Public Health Policy Choices in Africa: Empirical Insights from the COVID-19 Pandemic

Entrepreneurship in times of economic stress: unraveling the U-shaped relationship between the internality of causal attributions and growth

PurposeThis paper examines the relationship between entrepreneurs' internality of causal attributions and firm growth during an economic crisis. We propose a U-shaped relationship between the two variables, arguing that the highest-growth entrepreneurs are those with either the highest or lowest levels of internal attribution (IA) during such periods.Design/methodology/approachTo test our hypothesis, we analyze a database of 804 interviews with entrepreneurs in Brazil during a period of economic stress. Due to the existence of endogeneity, we estimate a model of simultaneous equations in two stages.FindingsWe find evidence of a U-shaped relationship. This means that during economic stress, the fastest-growing entrepreneurs are those who rely more on their own effort (high IA) and those who attribute their success to the economic crisis (low IA).Practical implicationsTailoring interventions based on attribution patterns and recognizing the U-shaped relationship ensures effective support during economic stress. Entrepreneurial support programs should align with internality levels, emphasizing external awareness or skill development accordingly. Policymakers should take attributions into account when promoting financial resilience. Entrepreneurs would benefit from awareness programs on attributions for reflective decision-making. Ecosystems should foster collaboration by recognizing diverse attributions, enhancing a collective understanding of entrepreneurial responses in crises.Originality/valueOur results have important implications for understanding the role of entrepreneurs in economic crises. Our results are relevant because they challenge the usual claim that entrepreneurs with high IA are the ones who perform better in situations where external economic conditions are adverse.

The Influence of Financial Literacy on Financial Resilience through Financial Planning (Study on BUMDes in East Java)

This research aims to investigate the influence of financial literacy on financial resilience through financial planning, with a special focus on Village-Owned Enterprises (BUMDes) in East Java. Quantitative research methods were used with stratified random sampling techniques to select representative BUMDes samples. The research instrument is a structured questionnaire that measures the level of financial literacy, financial planning and financial resilience of BUMDes. The results of data analysis using the Structural Equation Modeling-Partial Least Square (SEM-PLS) approach show that there is a significant positive relationship between the level of financial literacy and financial planning on the financial resilience of BUMDes. The implications of this research provide an in-depth understanding of the importance of financial literacy and financial planning in increasing the financial resilience of BUMDes, so that it can help in designing more effective policies and training programs to support local economic growth at the village level.

Understanding Financial Inclusion Through Fintech: A Qualitative Inquiry into the Role of Technology in Shaping Financial Landscapes

Financial inclusion, propelled by the advent of financial technology (fintech), has become a focal point of research and policy discourse globally. This study aims to comprehensively examine the role of technology in shaping financial landscapes and fostering inclusive financial ecosystems. Employing a quantitative descriptive research approach, this study assesses fintech adoption across diverse demographic groups, identifies determinants influencing individuals' utilization of fintech-based financial services, examines the impact of fintech interventions on enhancing financial inclusion metrics, and explores the socio-economic implications of fintech-driven financial inclusion initiatives. Drawing upon a robust literature review, this research elucidates the transformative potential of fintech in expanding financial access and improving financial resilience among underserved populations. The findings underscore the importance of regulatory clarity, cybersecurity measures, and technological literacy in harnessing the full potential of fintech for inclusive economic development.

The Use of Financial Tools in Small-Scale Irrigated Crops to Assess Socioeconomic Sustainability: A Case Study in Tocantins-Araguaia Basin, Brazil

To expand financial knowledge and promote the socioeconomic sustainability of agricultural production systems, this work applied financial instruments to small-scale irrigated crops, making use of agricultural projects from the Bom Sucesso/Santa Cruz Settlement, located in the Tocantins-Araguaia basin, Brazil. The economic viability indicators of two irrigated okra production systems (furrow and drip) were calculated using the following indicators: Net Present Value, Modified Internal Rate of Return, Cost–Benefit Index, Discounted Payback, and Average Cost of Production. And a risk assessment through sensitivity analysis, a tornado chart, and Monte Carlo simulation was performed in a simplified financial model. The economic viability results showed that both irrigated systems were economically viable, although the okra drip system had lower indicators and reduced financial resilience, with a 58% probability of success, while the furrow system’s was 89%. The crops’ financial return was mainly influenced by okra’s sale price and productivity, followed by harvesting and planting costs. The financial tools applied in this study demonstrated some key factors to assess socioeconomic sustainability, such as the necessity to increase producers’ organizational capacity and to achieve technical improvements, which could result in market power, competitive sale prices, lower input costs, and greater productivity. The applied instruments increased financial management and have the potential to the build economic and social strength in the area of small-scale irrigated crops, and they can be replicated using simplified tools for producers, companies, and policy makers.