Financial Efficiency Research Articles

Accounting of inventories in service sphere enterprises based on modern technologies and its positive effects

In the dynamic landscape of service-sphere enterprises, accurate and transparent financial and management reporting plays a crucial role in assessing the company’s performance and making informed business decisions. One essential aspect of these reports is the reflection of accounting information related to reserves. Reserves act as a safety net, allowing businesses to mitigate risks, fulfill obligations, and invest in future growth. This article aims to explore the significance of improving the reflection of accounting information of reserves in financial and management reports in service-sphere enterprises and highlights strategies to achieve this objective effectively. Accurate and transparent financial and management reporting is essential for service-sphere enterprises to evaluate their performance, monitor costs, and make informed business decisions. Among the crucial elements of these reports is the reflection of accounting information related to inventory. Inventory represents a significant asset for service-based organizations, and effectively capturing its accounting information is crucial for assessing profitability, managing costs, and optimizing operations. Accurate reflection of inventory in financial reports is crucial for service-sphere enterprises as it provides valuable insights into the organization’s financial health and operational efficiency. By disclosing inventory-related information, such as valuation methods, carrying costs, and turnover ratios, financial reports facilitate decision-making for investors, creditors, and other stakeholders. Transparent reporting of inventory also enhances the credibility of financial statements, promoting trust and confidence in the organization’s financial position. Improving inventory accounting in service enterprises is crucial for maintaining efficient operations and maximizing profitability. In this article, we will talk about ways to further improve inventory accounting in service enterprises using modern methods and modern technologies.

Financial Performance of Bank NTB Syariah: Before and After Becoming an Islamic Commercial Bank

This study evaluates the financial performance of Bank NTB Syariah before and after its conversion into an Islamic Commercial Bank (BUS) in 2018. The conversion aimed to foster more equitable economic growth and improve the overall status of the NTB community. Utilizing Financial Ratio Analysis (FRA), this research examines various financial ratios, including ROA, ROE, NIM, NPF, BOPO, FAR, FDR, ELR, EAR, CAR, DER, and DAR, to assess performance differences pre- and post-conversion. The findings indicate significant improvements in key financial indicators such as ROA, ROE, NIM, NPF Net, and BOPO after the conversion, demonstrating enhanced profitability and efficiency. However, there were no notable changes in the ratios of FAR, FDR, ELR, EAR, CAR, DER, DAR, and NPF Gross, suggesting stability in these areas. This comprehensive analysis highlights the positive impact of the conversion on Bank NTB Syariah's financial performance and provides valuable insights for investors, bank managers, and policymakers regarding the benefits of converting to an Islamic Commercial Bank. The study's findings underscore the importance of strategic structural changes in enhancing the financial health and operational efficiency of financial institutions.

Artificial Intelligence (AI) in working capital management: Practices and future potential

This study delves into how artificial intelligence (AI) transforms working capital management by addressing the limitations of traditional methods. The focus is to critically review research publications, case studies and industry reports using qualitative research methodology to examine how AI improves operational efficiency and decision-making in this area. The study demonstrates the practical application of advanced machine learning algorithms and big data analytics in optimizing inventory management, enhancing demand forecasting and improving cash flow predictions. A thorough review of recent research and case studies reveals additional benefits, including automated reconciliations, debtor risk analysis, accelerated cash inflows, invoice processing and proactive working capital management. Despite challenges in integrating AI with legacy systems, the potential for substantial improvements in financial health and operational efficiency is significant. The study also suggests future research directions, such as developing comprehensive AI-driven applications for broader working capital considerations, creating empirical validation frameworks for model performance and addressing ethical considerations to fully harness AI's potential in optimizing working capital management.

ANALYSIS OF FACTORS INFLUENCING INTENTION IN USING ACCOUNTING INFORMATION SYSTEMS FOR REVENUE AND ZAKAT MANAGEMENT BY MICRO, SMALL AND MEDIUM ENTERPRISES IN E-COMMERCE

Accounting information systems (AISs) have become indispensable enterprise management tools, serving as a vital resource for promoting administrative and financial processes, facilitating decision-making, and improving overall performance. Apart from business, AISs can also be developed as zakat for sharia. In this regard, AIS plays a role in calculating zakat, making zakat payment decisions, and assisting managers in zakat allocation. This function is very beneficial for business actors, especially MSME actors. The existence of AISs can make it easier for MSMEs to manage their revenue and zakat. So, MSMEs need to be able to adopt AISs. Unfortunately, research regarding the acceptability of AIS adoption for MSMEs has not yet been conducted. Therefore, this research examines the factors of acceptance of AISs by e-commerce actors from MSMEs. By using the elements in the Technology Acceptance Model (TAM), such as Perceived ease of use (PEU) and perceived usefulness (PU) through quantitative methods and Partial Least Square Structural Equation Model (PLS-SEM) analysis, the results of data analysis in this study show that the influence of PEU and PU on IUAISs is positive and significant. This shows that IUAISs are influenced by two main variables from TAM (PEU and PU). Based on the results, this study implies that MSMEs that successfully adopt Accounting Information Systems (AISs) for revenue and zakat management can improve their administrative and financial efficiency, emphasizing the importance of understanding the factors influencing AIS acceptance among MSMEs.

Optimizing Portfolio Efficiency in the Digital Era: A Data Envelopment Analysis of Range-Rebalanced Asset Investments

Optimizing Portfolio Efficiency in the Digital Era: A Data Envelopment Analysis of Range-Rebalanced Asset Investments

Analysis of Investment Value of Beverage Industry Enterprises: Evidence from Coca-Cola Company

Financial indicators and operational efficiency are crucial for the long-term development of enterprises. This article takes Coca-Cola Company as an example to conduct a detailed analysis of the investment value of the enterprise from various aspects such as current financial performance, operational efficiency, and competitive landscape. Explore the future development trends of Coca-Cola Company by reviewing and reviewing its financial statements, operational indicators, competitive positioning, and economic factors that influence the company. Research data shows that although Coca-Cola has maintained profitability, its operating profit margin has slightly declined in the past few years. By doing so, it is more profitable in certain aspects than competitors such as Pepsi and Monster Beverages. The organization faces obstacles to constantly changing consumer choices through healthier choices and supply chain/geopolitical chaos. This may require Coca Cola to diversify its product portfolio and supply chain to maintain expected profits. This study has important practical significance for investors in the beverage industry and researchers interested in this topic.

Research and simulation of an office lighting

This research thoroughly examines the evaluation and optimization methods of office lighting aimed at improving energy efficiency and the working environment through the implementation of advanced lighting technologies. Including a comprehensive technical survey of existing lighting conditions, the development of scientifically substantiated recommendations takes into account regulatory requirements and contemporary practices in the field of lighting technology. An analysis of lighting efficiency, selection of optimal light sources, calculation of their placement for maximum efficiency, and assessment of the impact on energy savings are performed, with the goal of achieving better working conditions and reducing energy consumption. The study includes the following steps: illuminance as a critical factor affecting employee productivity and comfort; technical survey of the lighting system in the office space; methodology for conducting the technical survey – measurements of illuminance in different areas of the space using a lux meter; assesment of the need for luminous flux according to norms and standards for office spaces; selection of the type and power of LED lamps for the new lighting system; calculation of the number and placement of LED lamps to provide the necessary level of illuminance in the automated system DIALux Evo Pro; assessment of the expected results in the context of energy savings and improvement of working conditions; calculation of energy expenditures for the new lighting system; potential impact of the research results on energy management and energy audit in the construction sector. The research conclusions suggest strategies for the implementation of an innovative lighting system, which leads to the optimization of energy consumption and significant improvement of lighting quality. These strategies are expected not only to improve the working environment but also to lead to substantial energy resource savings in offices, thereby promoting ecological sustainability and financial efficiency.

The Determinants of the Efficiency of Microfinance Institutions in Africa

Over the past few decades, microfinance institutions have attracted the interest of governments and academics alike, given their unique nature of being financial institutions with a dual mission of promoting social development and reducing poverty. However, concerns have been raised about their effectiveness in achieving these goals while remaining financially sustainable. In this study, we attempt to examine the factors that have the greatest impact on the social, financial, and overall efficiency of microfinance institutions in African regions. We adopt a two-step approach: First, we assess the efficiency scores of 95 microfinance institutions in Africa between 2005 and 2018 using a data envelopment analysis (DEA) approach. We then regress their efficiency scores on a set of determinant variables, capturing the microfinance institutions’ characteristics. Our findings suggest that a majority of institutions prioritize profitability over social outreach. Furthermore, the panel data regression indicates that factors such as profitability, equity capitalization, types of loans, and low gross domestic product (GDP) have a positive influence on microfinance institutions’ efficiency. Conversely, variables including their risk portfolio, grants, microfinance institution status (Non-Governmental Organization (NGO), cooperative, etc.), operational area, political environment, and size exert a negative impact on efficiency. Through this study, we seek to enhance our understanding of microfinance institutions and to identify the factors that impact their operational efficiency, thereby reinforcing their crucial role in advancing financial inclusion, empowering marginalized communities, and fostering inclusive economic growth.

Exploring the Supporting Role of Finance in the Development of Clean Energy in China Based on the Panel Vector Autoregressive Model

The efficient development and widespread utilization of clean energy hold global significance, particularly for developing countries like China, which has committed to carbon peak and neutrality targets. In this context, the financial sector plays a crucial role in supporting the renewable energy industry, ensuring a reliable energy supply for economic growth. To statistically assess the impact of financial characteristics—such as financial efficiency, financial size, and green finance—this paper employs a panel vector autoregressive (PVAR) model with province-level data from China spanning the period 1991 to 2018. The key findings demonstrate that (1) financial factors significantly contribute to the development of clean energy in China, and among these factors, financial scale has a greater impact than financial efficiency and green finance; (2) there are distinct regional variations in how financial development affects the clean energy sector, and the role of financial scale is particularly pronounced in the central and western regions of China while the impact of financial efficiency on the clean energy industry is not significant across all regions; and (3) other drivers—including industrial structure, financial expenditure, and technological advancements—also spur the growth of the clean energy industry. However, due to diminishing marginal effects, the forces driving its growth may gradually diminish. Therefore, the article proposes critical policy suggestions for promoting clean energy development in China. These policies should consider the regional context and address both financial and non-financial aspects. Understanding the interplay between finance, regional dynamics, and clean energy development is crucial for achieving sustainable and resilient energy systems in China.

The Impact of Financial Efficiency and Renewable Energy Consumption on CO2 Emission Reduction in GCC Economies: A Panel Data Quantile Regression Approach

As prominent oil producers, Gulf Cooperation Council (GCC) countries have played a significant role in the global energy market. However, as the world’s attention increasingly shifts towards environmental sustainability, understanding the implications of the GCC’s economic activities on CO2 emissions becomes indispensable. This research paper investigates the relationship between specific economic indicators and their impact on CO2 emissions in the GCC from 2001 to 2021. This study employs quantile regression, a robust statistical method that estimates the conditional quantiles of a response variable given a set of predictor variables. The findings reveal several essential insights: Financial institution efficiency is significant and negative at a 1% level at the lower (10th, −83,537.3) and higher quantiles (90th, −549,002.3). The relationship between the GDP per capita and CO2 emissions varies across quantiles, highlighting the complexity of the growth–environment nexus. Total patents exhibit a positive and significant relationship with emissions, underscoring the importance of directing innovation towards environmentally sustainable solutions. Renewable energy consumption displays a nuanced relationship with CO2 emissions, with a more substantial negative impact observed at higher consumption levels. This underscores the potential of renewable energy to mitigate emissions when integrated at scale. This study’s outcomes hold crucial policy implications for GCC countries as they seek to align economic growth with environmental sustainability. The findings emphasize the importance of fostering financial institution efficiency, promoting green innovation, and expanding renewable energy sources to reduce emissions.

Harnessing Artificial Neural Networks for Financial Analysis of Investments in a Shower Heat Exchanger

This study focused on assessing the financial efficiency of investing in a horizontal shower heat exchanger. The analysis was based on net present value (NPV). The research also examined the possibility of using artificial neural networks and SHapley Additive exPlanation (SHAP) analysis to assess the profitability of the investment and the significance of individual parameters affecting the NPV of the project related to installing the heat exchanger in buildings. Comprehensive research was conducted, considering a wide range of input parameters. As a result, 1,215,000 NPV values were obtained, ranging from EUR −1996.40 to EUR 36,933.83. Based on these values, artificial neural network models were generated, and the one exhibiting the highest accuracy in prediction was selected (R2 ≈ 0.999, RMSE ≈ 57). SHAP analysis identified total daily shower length and initial energy price as key factors influencing the profitability of the shower heat exchanger. The least influential parameter was found to be the efficiency of the hot water heater. The research results can contribute to improving systems for assessing the profitability of investments in shower heat exchangers. The application of the developed model can also help in selecting appropriate technical parameters of the system to achieve maximum financial benefits.

Exploring the dynamic connections between oil price shocks and bond yields in developed nations: A TVP-SVAR-SV approach

This paper investigates the impact of oil price changes on bond yields across nine developed nations, focusing on how demand, supply, and oil-specific demand shocks influence bond spreads. Using a Time-Varying Parameter Structural Vector Autoregression with Stochastic Volatility (TVP-SVAR-SV) model, we find that bond yields are short-term responsive to oil price fluctuations, indicating efficient domestic bond markets. However, we observe distinct country-specific reactions, particularly in the US and the UK. In the US, supply shocks cause temporary declines in bond yields, while demand shocks reduce bond yields in both countries. Oil-specific demand shocks have cyclical impacts. Unlike the global financial crisis, the COVID-19 pandemic uniquely influenced bond yields, with minimal short-term effects in Canada, France, Spain, and the US post-COVID-19, contrasting with the severe impacts during the financial crisis. These findings suggest investors should consider the varying impact of oil shocks on bond yields across countries, and policymakers should monitor and address the potential implications of oil price fluctuations for financial stability and market efficiency.

Environmental impact of financial Market's development in Australia

Enhancing environmental quality has become one of the most commonly discussed topics in the modern world, particularly in response to the challenges posed by the increasing threats to climate change. The financial system is acknowledged as a crucial factor in achieving environmental quality by facilitating the flow of financial resources. This study aims to examine the impact of a unique aspect of the financial system—financial market development—on environmental quality in Australia. What sets this study apart from existing works is its comprehensive approach, capturing broader measures of financial market development, including financial market depth, access, efficiency, and stability. By employing the Autoregressive Distributive Lag (ARDL) model over the period from 1983 to 2021, our research demonstrates a positive impact of market-based financial development on Australia's environmental quality by reducing greenhouse gas emissions in the long run. Specifically, an opposing impact of financial market development on environmental quality is evident in the short run. Our findings highlight that financial market development degrades environmental quality in the short run by contributing to increased greenhouse gas emissions, which further emphasizes the importance of integrating both the positive and negative effects of financial market development in policymaking, particularly in the context of achieving Australia's environmental targets.

Research on digital transformation of enterprise finance and accounting under financial sharing model

With the rapid development of globalization and information technology, enterprises are facing increasingly complex and changeable market environment. As an important part of enterprise management, the digital transformation of finance and accounting has become an inevitable trend. This study focuses on the digital transformation of enterprise finance and accounting under the mode of financial sharing, and analyzes the important role of digital transformation in improving the efficiency of finance and accounting work, optimizing resource allocation and strengthening risk management. By means of centralized management and information technology, financial sharing mode realizes the standardization and automation of financial and accounting work, reduces the cost and improves the efficiency of data processing. At the same time, enterprises need to respond to challenges such as data security and technological update, formulate scientific transformation strategies, ensure the smooth implementation of the digital transformation of finance and accounting, and provide a strong guarantee for the sustainable and healthy development of enterprise.

NAVIGATING FINANCIAL DECISIONS: A COMPREHENSIVE REVIEW OF THEORIES, BEHAVIOURS, AND INNOVATIONS

This literature review synthesizes seminal and contemporary research on financial decision-making, emphasizing theoretical frameworks and empirical findings. Fama's (1970) Efficient Market Hypothesis sets the foundation for understanding market behavior, while Kahneman and Tversky's (1979) Prospect Theory introduces psychological influences, highlighting biases such as loss aversion (Tversky & Kahneman, 1991). Jensen and Meckling (1976) provide insights into agency theory, exploring the implications of managerial behavior on firm performance. The influence of gender on investment strategies is examined by Barber and Odean (2001), illustrating the role of overconfidence. Additionally, the impact of social interactions on financial choices is explored by Bursztyn et al. (2014). Financial literacy, addressed by Lusardi and Mitchell (2014), underscores the importance of informed decision-making in personal finance. The review also highlights the integration of behavioral insights in corporate finance, particularly in capital structure decisions (Myers, 1984) and risk management practices (Hull, 2012). Overall, the collected works illustrate a rich tapestry of factors influencing financial decisions, blending economic theory with behavioral insights, and emphasizing the necessity for ongoing research in this dynamic field. KEYWORDS: Financial Decision-Making, Behavioral Finance, Prospect Theory, Market Efficiency, Agency Theory, Overconfidence, Financial Literacy, Risk Management, Capital Structure and Social Interactions.

Objective acceptability indexes

Based on the financial efficiency and leverage effect, this study classifies the measures of reward, risk, and performance into “simple” and “compound” types. We generalize three problems of observation inconsistency, overleverage deception, and dynamic manipulation behind classical simple measures (such as variability, LPM, VaR, and regression-based measures), and two problems of observation inconsistency and leverage variance behind traditional drawdown-based compound measures. We employ an axiomatic approach to answer the question of what undesirable influences measures should avoid, and complement the axiomatic framework with objective acceptability indexes by separating useless influences that do not add value for investors. We also develop new compound measures to solve the general problems with empirical evidence.

Financial Risk, Debt, and Efficiency in Indonesia’s Construction Industry: A Comparative Study of SOEs and Private Companies

This study aims to evaluate the financial risk, debt, and efficiency of state-owned enterprises (SOEs) in Indonesia’s construction industry and compare these aspects with those of private companies through financial ratio analysis and efficiency analysis approaches. Four SOEs from the construction sector were evaluated and compared to five private companies with financial data ranging from 2015 to 2022. Financial ratio analysis was applied to assess debt and financial risk, while efficiency analysis utilized data envelopment analysis (DEA) and paired t-tests to validate differences between the two groups of companies. This study reveals that the financial ratio performance of state-owned companies is relatively poor, with low profitability, critical liquidity, and a high debt ratio. Debt, as a source of capital in financing construction projects, causes companies to face a greater debt risk. This study also validates that SOEs have lower efficiency compared to private companies. In response to current challenges, SOEs should prioritize enhancing liquidity through faster receivable collections, debt restructuring, capital infusions, and divestment, reducing non-essential investments, focusing on asset recycling, and improving project efficiency.

Normal Asset Allocations and Their Statistical Properties

This study focuses on efficient asset allocations that properly include T-bills, T-bonds, and the S&P 500 stock index. It checks that their annual real rates of linear return are both normal and almost lognormal. It reexamines how efficient portfolios based on the rates of linear return may turn into efficient portfolios based on the rates of logarithmic return. It finds that each efficient asset allocation has the lowest possible standard deviation as well as the highest possible arithmetic and geometric means. It eventually reconsiders the relationship between the confidence interval of a geometric mean and an expected long-run capital accumulation. As a consequence, it bridges a gap in the scientific literature by enabling financial advisors to trade off the mean rate of return on a portfolio more rigorously against the value at risk.

Unveiling the financial management landscape: A comparative study of management accounting practices in public and private universities of India

This study analyses respondents' demographics and analyses public and private universities in India's financial management, sustainability, and problems. Two hundred universities were surveyed to determine their gender, age, education, and experience. To assess financial management practices and identify critical aspects affecting financial sustainability, 100 public and 100 private universities were surveyed. This research contrasts public and private university financial management. Private universities emphasize financial transparency and efficiency, although both types recognize the significance of varied revenue streams, enrollment, and student retention for financial sustainability. Financial technology, public university funding, and private university funding management are all issues. Hypothesis testing shows that financial management practices affect university financial sustainability, suggesting that good financial management is essential for long-term survival. Policymakers, university administrators, can learn from this research. Stakeholders may optimize operations and achieve long-term success by understanding worker demographics and financial trends. This study enhances financial management knowledge and provides advice for economic resilience.

Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty

Our study provides practical insights into the impact of greenwashing on Corporate Financial Performance (CFP) and investment efficiency. We delve into the moderating influences of family-owned firms, technological innovation, and economic policy uncertainty in the nexus between greenwashing and CFP. Using a Method of Moments Quantile Regression (MMQR) model and conducting robustness tests, our results suggest that in G8 nations, family-oriented stakeholders struggle to discern greenwashing due to low information asymmetry. However, technological innovation and reduced economic policy uncertainty enhance the identification of greenwashing. Greenwashing enhances firm value by improving disclosure quality, addressing stakeholder concerns, and easing financing constraints. Notably, heavily polluting and mandatory disclosure firms experience more significant economic performance from greenwashing. This study provides practical implications for firms, policymakers, and stakeholders, fostering sustainable development in G8 nations.