Financial Value Research Articles

Accounting and Finance: Complementarity and Divergence

Abstract Penman (2023. Accounting for Uncertainty. Accounting, Economics, and Law: A Convivium) develops a conceptual framework which reconciles accounting and finance in view to provide information for financial investment. His framework is based upon resolution of uncertainty over expectations as a convenient basis for accrual accounting. In this context, accrual accounting can be interpreted as a convenient instrument to protect the corporate capacity to generate future earnings on which the expected financial value is based upon. However, in order to fulfil this control function, accounting applies an additive process (simple return), while financial valuation imposes a multiplicative process (compound return) over the invested financial capital. This divergence between accounting and finance enables disentangling business profit – as determined by accounting – from money interest and ownership rent, paving the way to a theory of the business firm based upon its accounting structure, and enabling measures of financial performance consistent with this divergence.

Green bond market practices: exploring the moral ‘balance’ of environmental and financial values

ABSTRACT This paper explores why and how green bond investors apply environmental and financial morality. It analyses the coproduction of environmental and financial values in green bond markets using digital ethnography, industry literature and interviews with investors during 2019–2022. It analyses how green bond investors explain and narrate their diverse market practices in the balancing of financial and ethical returns, converging in an unstable space of mutual coproduction. The calculative practices and signalling of green virtue are performed in little machines of ethical inscription but are rarely either empirically validated or explicitly discussed. The green bond universe might appear stable, but its foundations are forged in long-standing intersectional assumptions, as it relies on, and reproduces, the historical structures of racial capitalism. The market practices described here are designed to help green bonds become a mainstream asset class. However, these are reproducing older discursive tropes and growth is elusive.

Factors influencing Fintech adoption for women in the post-Covid-19 pandemic

Understanding the factors influencing women in adopting and utilizing financial technology (Fintech) services will not only contribute to reduce the gender gap but will also accelerate financial inclusion. The main objective of this research is to examine the antecedents of behavioral intention and use behavior by extending the Technology Acceptance Model (TAM) of women in Indonesia, considering the mediating effect of government support, digital financial literacy and value of status quo in post-Covid-19 pandemic. Further, this study explores the potential differences in the determinants of use behavior between urban and rural respondents. By analyzing 403 Indonesian women respondents using Partial Least Square Structural Equation Modeling (PLS SEM), this study revealed that attitude has the most significant effect in explaining behavioral intention and value of status quo gained the greatest impact on use behavior in post-Covid-19 outbreak. Government support and digital financial literacy play a significant role with small effect size, while value of status quo has large effect size, in mediating the relationship between behavioral intention and use behavior. The finding also documented that the impact of government support on use behavior differs between urban and rural individuals. These findings highlight the need for a different government strategy to increase Fintech adoption for women residing in both urban and rural areas in Indonesia.

Do what we did last year, but do not stray too far from the pack: A behavioral public finance approach to municipal cash reserves

AbstractWe leverage a national panel of US municipalities to show that behavioral finance helps explain the number of months of expenses that municipalities save in cash and investment reserves. We hypothesize that municipal managers may be using numerical anchoring based on historical values to target the number of months of savings to hold and that they may also be engaged in social learning to target months of savings based on the behavior of neighboring municipalities. We test for these effects by combining two innovative techniques, a two‐stage regression designed to test for anchoring of present financial values based on theoretically unimportant historical values, and a measure of the spatial autocorrelation of savings to test for social learning. The results suggest that, in deciding how much to save, municipal managers are influenced by the levels of savings they held in the past and the savings levels of their neighbors, and that they underreact to changes in theoretically relevant economic fundamentals. Further tests also suggest that the smallest cities by population are more influenced by the behavior of their neighbors than their past savings, whereas the largest cities show the opposite result, effectively choosing themselves as their own role models.

Development of a Consumer Reported Outcome Measure for Personal Care Products : The Rationale

Cosmetic products are one of the fastest-growing segments of personal care products in the United States. One of the critical elements in the sales and growth of cosmetics is leveraging claims. Unlike pharmaceuticals in the US, claims in personal care products are usually not reviewed nor require regulatory approvals before products are sold in the US. However, regulatory agencies have no oversight of how the advertisement is presented to the consumers and have cited known companies and brands for promoting deceptive advertising and forcing costly market withdrawal, impacting the financial values of investors and customers' confidence alike.

Pengaruh Good Corporate Governance terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Intervening

The research objective to be achieved are to prove the effect of Good Corporate governance on firm value, prove the effect of Good Corporate governance on financial performance, prove the effect of financial performance on firm value, prove the effect of Good Corporate governance on corporate value through financial performance as an intervening variable in corporate bodies Sate Owned Enterprises listed on the Indonesia Stock Exchange in 2017-2021. The method used in this research is to use quantitative methods. Sampling of this study using purposive sampling obtained 13 sample. The analysis technique used in this research is path analysis using SPSS 25 software. Based on the research result, it can be seen that Good Corporate governance has no effect on company value, Good Corporate governance effects the financial performance, financial performance effects company value, Good Corporate governance influences company value through financial performance as an intervening variable in corporate bodies State Owned Enterprises listed on the Indonesia Stock Exchange in 2017-2021.

Ethnic representation analysis of commercial movie posters

In the last decades, global awareness toward the importance of diverse representation has been increasing. The lack of diversity and discrimination toward minorities did not skip the film industry. Here, we examine ethnic bias in the film industry through commercial posters, the industry’s primary advertisement medium for decades. Movie posters are designed to establish the viewer’s initial impression. We developed a novel approach for evaluating ethnic bias in the film industry by analyzing nearly 125,000 posters using state-of-the-art deep learning models. Our analysis shows that while ethnic biases still exist, there is a trend of reduction of bias, as seen by several parameters. Particularly in English-speaking movies, the ethnic distribution of characters on posters from the last couple of years is reaching numbers that are approaching the actual ethnic composition of the US population. An automatic approach to monitoring ethnic diversity in the film industry, potentially integrated with financial value, may be of significant use for producers and policymakers.

Automated office infrastructures and the valuation of work

Popular and academic analyses of automation in work predominantly focus on paid labour, sometimes forecasting how many jobs may be lost or investigating how new types of jobs are being created through such technological change. This article takes a different approach by considering what automation implies for the valuation of work. The starting point is that contemporary office automation is not exclusively aimed at working activities themselves but rather is increasingly directed at the infrastructure that allows work. Two infrastructural elements are identified where office automation is occurring: “tenant experience applications” that aid in the flexible occupation of office buildings, and “productivity tools” that support the organisation of office tasks regardless of location. This shift from automation targeting what work is done to how that work is done raises the question of work valuation. Plural regimes of valuation are at play in contemporary office automation, through which a myriad of interested actors emerge, extending beyond the employer and the worker. The value of flexibility thus occurs not singularly nor even primarily in the production process, but rather is achieved in the financial valuation of various aspects of office performance as well as in the social (re)definition of work.

A valuation of football companies between tangible and intangible values: A preliminary study

This study delves into the dynamic world Football Club Valuations, an area rich in economic and cultural significance. It addresses the complex issue of which factors most profoundly influence the enterprise value of a football club. Central to the hypothesis is the notion that a club's infrastructural investments, player salaries, and on-field successes are determining factors in its financial value. To test this, and the other hypotheses of the study, the research employs a rigorous quantitative approach, utilizing multiple linear regression analysis, to investigate the factors influencing the enterprise value of European football clubs. Examining data from 28 prominent clubs between 2018 and 2023, our research focuses on infrastructural investments, player salaries, team value, and on-field performance. The results of this study are revealing, demonstrating a clear correlation between the hypothesized factors and club valuations, with infrastructural investments and player salaries emerging as key determinants of club valuation. The integration of a polynomial transformation for team value captures its complex, non-linear relationship with enterprise value. The model provides nuanced insights for football club stakeholders and managements. What distinguishes this work is its pioneering integration of financial acumen with a deep understanding of the unique cultural and economic landscape of football and reveals, how the dynamics of investment in infrastructure and player salaries, along with success in international competitions, significantly and complexly influence the corporate value in the football sector, offering a new framework for analyzing enterprise value in football.

Circular Economy Business Model in the Construction Industry: A Systematic Review

The construction business environment is becoming competitive and intense, and Business Models (BMs) are receiving considerable attention as potential sources of sustainable survival and growth. Converse to the Linear Economy (LE) model that industry follows, the Circular Economy (CE) model has the potential to create a sustainable construction industry while also creating a sustainable business environment in construction organisations. Nevertheless, in traditional BMs, value is often concentrated on the financial value for the stakeholders; in the Circular Economy Business Model (CEBM), value is seen more broadly by considering a comprehensive range of value chain partners, the environment, and society. Hence, implementing the CE in the construction industry requires reforms in each value chain. Thus, the aim of this paper is to develop a conceptual model for construction organisations’ adoption of CEBM for their organisations. To accomplish this aim, the objectives of this paper are twofold: (i) to define the concept of CEBM and (ii) to map a conceptual Circular Economy Business Model Canvas (CEBMC) that is applicable in the construction organisational context. This research adopted a systematic document review, including a content analysis of selected papers. This study contributes significantly by proposing a CEBMC where construction organisations can successfully transform their businesses from linear to circular environments.

The Barriers of Using Video Games as a Media for Teaching and Learning Purposes: A Case Study in Indonesia

The 21st century has seen the remarkable growth of the video game industry, which has surpassed other entertainment sectors in terms of financial value. The COVID-19 pandemic further emphasized the importance of video games as a means of socialization and entertainment. However, despite their potential in education, the adoption of video games as a learning media faces numerous barriers. This study explores these barriers, particularly in the context of Indonesia, a country with a burgeoning video game culture. The research uses a mixed-methods approach, including qualitative interviews and quantitative surveys with stakeholders such as parents, teachers, students, and government officials. The findings reveal several key barriers to adopting video games in formal education in Indonesia. There is an inherent mistrust of video games among Indonesians, which makes the use of video games as a learning media challenging. There is a lack of video games designed for educational purposes suitable for Indonesia's formal education system. The lack of government support for video games as learning media also becomes an issue. We suggest collaboration between local game developers and education practitioners could help design video games that balance gameplay mechanics and educational content. Successful case studies of video games in education can potentially change negative perceptions among teachers, parents, and students. In addition, government support and recognition of video games as valid learning media are essential for wider adoption in Indonesia's formal education system. Future research should focus on developing and adopting video games specifically designed for educational purposes to address these barriers effectively

Applying of Social Return on Investment (SROI): A Practical Review to Financial Social Value and Benefits

The objective of the study is to analyze a Social Return on Investment method for companies. Data were collected from scientific publications from 2007 to 2022 and selected based on previous studies. The main principle is to explore, review, and formulate the benefits and contributions of all research, as well as the application of various types of SROI. The methodology resulted in 13 articles that identified the social values and benefits of SROI over the last decade. The results obtained in this paper were reviewed using tables for advanced analysis. Additionally, this study presents qualitative results and investigates methodical publications that have had a significant impact on the company.

Financial Statement Analysis Based on RNN-RBM Model

Financial statement analysis is a critical component of decision-making for businesses, investors, and financial professionals. To enhance the accuracy and effectiveness of such analysis, this paper introduces the application of an innovative approach known as the Intelligent Swarm Regression ARIMA Model. This advanced model combines the power of swarm intelligence with ARIMA (AutoRegressive Integrated Moving Average) time series forecasting, offering a robust methodology for predicting and analyzing key financial metrics. The study begins by providing an overview of the Intelligent Swarm Regression ARIMA model and its application to financial data. Through a comprehensive analysis of financial statements, including market capitalization, revenue, net income, and other crucial indicators, the model's efficacy in predicting future values is evaluated. Additionally, the paper examines the deviations between predicted and actual financial values, offering insights into the model's accuracy and areas for potential improvement. The findings of this research are invaluable for investors, financial analysts, and companies seeking to optimize their financial performance and strategic decision-making. By leveraging the Intelligent Swarm Regression ARIMA Model, stakeholders can make well-informed choices that lead to better financial outcomes and a competitive advantage in a dynamic economic landscape. This paper represents a significant step forward in the financial analysis, providing a practical methodology and a pathway to enhanced financial decision-making. As the importance of financial data continues to grow, this research offers a promising avenue for achieving financial success and stability.

Valuation and Competitive Comparison of Mattel and Hasbro

Mattel and Hasbro, as the two giants of American toy companies, have always been in competition with each other. This paper takes these two companies as research objects, and uses historical data to conduct financial analysis, valuation analysis and market analysis, thus drawing a comparison of the valuation and competitiveness of Mattel and Hasbro. The results show that overall Hasbro's valuation and competitiveness as well as the company's performance are better than Mattel's. Whether it is financial analysis or valuation analysis, it can be seen from the relevant data that Hasbro's performance is more stable and optimistic than Mattel. But Mattel and Hasbro are both facing difficulties, and their recent sales results have suffered steep year-on-year declines, the industry situation has also changed significantly. Therefore, competitive advantages and challenges should be fully considered when conducting company analysis. Finally, this paper summarizes the valuation and competitiveness of Mattel and Hasbro, and puts forward some suggestions for investors and industry practitioners.

Exploration of the Methods of Using Mathematics in the Financial Economy of the Enterprise

As a matter of fact, with the development of the times and the advancement of economic system reform, the activity of China's financial market has increased. As a consequence, the financial and economic development is facing new opportunities. In this case, it is necessary to give full play to the role of economic mathematics knowledge. Enterprises in their own business development, need to focus on how to strengthen the financial and economic analysis, a comprehensive display of the advantages of economic mathematics, the use of economic as well as mathematical theories, the financial and economic value of the enterprise for a period of time, usually involving the derivative, differential, function models and other knowledge, can provide support for the formation of the results of the enterprise's financial and economic analysis, which in turn helps enterprises to adapt to the changes in the financial market in a more comprehensive manner contemporarily.

Research on Financial Risk Management of Free Trade Port under the Revolution of Digital Economy

The commencement of the full implementation phase of Hainan's free trade port building project signifies the initiation of Hainan's endeavour to establish a free trade port with distinct Chinese attributes. The maintenance of financial security in the Hainan Free Trade Port is crucial for ensuring the stable and quick development of the port, particularly in light of the accelerated speed of financial opening in its construction. In the realm of digital finance, the concept of interconnectivity and data exchange is achieved through the transformation of prospective financial data into information chains. Digital finance has emerged as a significant component of the digital economy, exerting a substantial influence on the rebuilding of the financial ecological value system and the formation of the nascent financial services industry. Nevertheless, the expeditious advancement of digital banking has engendered a range of risk management concerns. These include the swift transmission and progression of risks inside the realm of digital finance, the escalation of data security and compliance challenges, and the augmented complexity of market regulation. This study examines the issue of digital financial risk management by assessing the current situation and trends in digital financial development. It analyses the unique characteristics of digital financial risks compared to traditional financial risks and considers the current state of financial development in Hainan. The study explores the risks that should be mitigated during the development of Hainan's free trade port and proposes measures to ensure the financial security of the port. The ultimate goal is to facilitate the sustainable development of Hainan's free trade port.

A Systematic Literature Review: Determinant of Company Value in Financial Companies

This research employs the PRISMA methodology to investigate the determinants of company value within financial institutions, guided by specific inclusion criteria. These criteria involve the selection of peer-reviewed English literature focusing on variables affecting company value in financial institutions, utilizing quantitative or mixed research methods. The study conducts an extensive search within the Elsevier (SCOPUS) database, housing a substantial collection of articles related to company values, ultimately narrowing down the selection to 22 articles for in-depth analysis. The results unveil seven pivotal indicators significantly influencing financial company value: Corporate Governance, Dividend Policy, Company Size, Third-Party Funds, Financial Performance, Capital Structure, and Corporate Social Responsibility. These determinants collectively mold investor perceptions and market assessments, with particular emphasis on the crucial roles played by corporate governance and financial performance. In conclusion, this study underlines that these determinants collectively shape a financial company’s value, with Corporate Social Responsibility standing out as a notable factor capable of enhancing market assessments and reducing mispricing. These findings provide valuable insights for investors, financial professionals, and policymakers, facilitating a deeper understanding of the dynamics of financial company valuation within an ever-evolving landscape.

An Empirical Analysis on the Feasibility of Financial Valuation of Technology Companies: A Fundamental Analysis Approach Based on Value Investing

This study addresses the significant challenge of accurately valuing internet companies in the contemporary business landscape, recognizing existing research gaps due to the limited applicability of conventional valuation methods such as Net Present Value (NPV) and Price to Earnings (PE) ratios in this emergent industry. This paper conducted a fundamental analysis based on the principles of value investing, utilizing 2022 financial data from thirteen internet companies listed in Forbes Global Technology companies. Key financial aspects, including liquidity, debt-servicing capacity, profitability, and shareholder returns, were meticulously analyzed. The findings reveal that internet companies face cash flow pressures impacting their liquidity. Despite a moderate long-term debt ratio, companies exhibit substantial reliance on debt financing, encountering difficulties in interest payments. While these firms demonstrate a capacity for profitability, they concurrently face intense competition and cost pressures. The market sentiment remains highly optimistic regarding the future prospects of internet companies, reflecting elevated valuations. In light of favorable market conditions, it is imperative for internet companies to strategically enhance competitive advantages, bolster core product competitiveness, and amplify profitability through innovative operational and marketing strategies, thereby augmenting their industry influence and societal impact.

An Approach to Advance Circular Practices in the Maritime Industry through a Database as a Bridging Solution

The concept of maritime circularity has gained increasing attention to address challenges arising from the net-zero targets of the maritime industry. The circular economy provides potential solutions to address these challenges through reuse, remanufacturing, and recycling practices. However, the industry faces complex challenges, including inefficient reverse supply chains, a lack of awareness about circular economy principles, standardisation issues, and the need for digital infrastructure to provide vital information in the sector. These challenges prevent the implementation of circularity practices, as access to crucial data throughout the vessel’s life cycle is obstructed. This novel research aims to create a robust first-of-its-kind database solution specifically designed to support the industry’s shift towards circularity. The database will facilitate fast and transparent information flow between the stakeholders, providing foundations for asset tracking and a robust reverse supply chain. A case study was conducted to show that a database could help extract higher financial value from end-of-life ships by over 80%. The ageing fleet increases the urgency of utilising such a database, which could be a pivotal strategy for a sustainable and circular industry. This digital solution offers significant benefits to all industry stakeholders and allows holistic resource management, influencing maritime operations’ sustainability, resilience, and profitability.

Diamonds, risk and insurance practices in British Africa, with an emphasis on the Gold Coast and Tanganyika

ABSTRACT The literature on diamond mining in colonial Africa has focused more on labour, production and cartel-style price fixing than on how theft threatened the wealth generated from this industry. To mediate diamond loss, companies subscribed to financial insurance. This article introduces security-as-insurance to complement the received meaning of (financial) insurance and invites scholars to see security-as-insurance, risk, and value as interlocked. Drawing on sources from Ghana, Tanzania and Kenya, this article argues that once diamonds were imbued with financial value, the distribution of this value was competed for via claims over diamondiferous lands, diamond stealing, and consequently counter-theft security practices plus trans-empire (financial) insurance intended to protect the stones against risk. Overall, this article historically traces how diamonds gained value in Africa, the competing claims over diamonds following discoveries in commercial quantities, and the insurance practices enforced to protect against losses, particularly via theft in colonial Ghana and Tanzania.