Bailout Funds Research Articles

Share pledge risk and government bailout fund

AbstractThe effects of government bailouts have been extensively examined in the literature. This paper is one of the first to empirically examine the bailout funds established in China in 2018, which aimed to mitigate firms' liquidity squeeze risk caused by share pledges. Utilising a hand‐collected dataset of government bailout funds, this paper finds that stock prices increased when government introduced the bailout fund plan, especially for non‐state‐owned enterprises (SOEs) and firms with small size and share pledges. Long‐term performance of bailed out firms increased as well. Overall, our results provide new evidence that government bailouts have positive effects on financial markets.

DANA TALANGAN HAJI DALAM ETIKA ISLAM

It is inappropriate for people to be trapped in products containing elements of usury which result in imperfection of the pilgrimage because they depart in a way that contains elements of gharar. The practice opens the door to danger, and brings harm. The Ministry of Religion which has the authority to evaluate the existence of hajj bailout funds with the Regulation of the Minister of Religion (PMA) RI No. 24 of 2016. The Hajj bailout fund is intended to meet the customer's lack of funds in meeting the minimum requirements to get the Hajj portion. This program is enough to ease the people in preparing for the departure of the pilgrimage. For LKS, this program is also a benefit where LKS gets Ujrah from every customer who participates in the Hajj bailout program. On the other hand, the bailout program creates and contains disadvantages that are not in accordance with Islamic ethics. Hajj bailouts incur debts that can cause damage to the purity of the pilgrimage. The Hajj bailout financing contract at LKS attracts ujrah based on the time and amount of the bailout fund. This practice is not in accordance with the DSN-MUI Fatwa No. 29 of 2002. The hajj bailout has an effect on the length and length of the waiting list for hajj departures.

Liquidation, Bailout, and Bail-In: Insolvency Resolution Mechanisms and Bank Lending

AbstractWe present a dynamic, continuous-time model in which risk averse inside equityholders set a bank’s lending, payout, and financing policies, and the exposure of bank assets to crashes. We examine whether bailouts encourage excessive lending and risk taking compared to liquidation or bail-ins with debt-to-equity conversion or debt write-downs. The effects of the prevailing insolvency resolution mechanism (IRM) on the probability of insolvency, loss in default, and the bank’s value suggest no single IRM is a panacea. We show how a bailout fund financed through a tax on bank dividends resolves bailouts without public money and without distorting insiders’ incentives.

Analysis of the Preparation of Regional Levies Operational Reports at the Regional Revenue Agency of Padang Lawas Regency

The problem in this research is how the preparation of local tax reports in Bapenda, Padang Lawas Regency is carried out in accordance with the rules set by the local government. Operational reports are one of the elements of financial reports that describe economic resources that increase equity and are managed by the central/regional government. For state administrative activities during the reporting period and local retaliation is one of the key factors supporting local revenue, because it can make a significant contribution to the sustainability of local government. Standard operating procedures set by the local government This investigation was carried out by the local tax office of Padang Rawa Regency. The data in this study are secondary data. Secondary data is from Bappenda, Padanglaw Regency. As in the form of an operational report on the use of regional wealth bailout funds in 2021. The results of this study show that the preparation of an operational report on the use of regional assets in the management and reporting of the Padanglawas Regency Bappenda Sector for the 2021 fiscal year has complied with PP 71 of 2010 concerning Government Accounting Standards and Law Number 28 of 2009 on Dae Taxes and Local Liability.

THE EFFECTIVENESS OF SPAYLATER USAGE IN SHOPPING ACTIVITIES DURING COVID-19 PANDEMIC

This study aims to determine the level of satisfaction with the use of e-wallet (Shopee Pay) as a non-cash payment instrument. The research method used is descriptive qualitative research. The technique of collecting data is by means of a survey in the form of a questionnaire instrument which is then distributed via google form. Simple random sample was used as a sampling technique of 80 respondents. SPayLater is an online shopping platform that aims to facilitate the online shopping process for Shopee users. SPayLater is a payment method that uses bailout funds from the application company in question. SPayLater offers loan products with a 0% initial loan without a minimum transaction. However, we are encouraged to realize the risks that may occur behind this convenience, and this feature might be described as a teaser in the millennial period.

Monetary solidarity in Europe: can divisive institutions become ‘moral opportunities’?

How does the inherent norm of integration, notably to share risks among its members in good faith, become a self-sustaining practice? I address this question generally and for a critical case of a divisive institution, i.e. the evolution of sovereign bailout funding in the Euro Area since 2010. Community building between states is a potential outcome of solidaristic practices, reinforced by positive feedback processes. Inspired by Deborah Stone’s [Stone, D. A. (1999). Beyond moral hazard: Insurance as moral opportunity. Connecticut Insurance Law Journal, 6(1), 12–46] work on insurance, I demonstrate that there are social mechanisms at play that favour the secular expansion of risk sharing between states.

The Effect of the Bailout Fund on Share Pledge Risk: Evidence from Chinese Listed Firms

The Effect of the Bailout Fund on Share Pledge Risk: Evidence from Chinese Listed Firms

Analisis Sistem Pembiayaan Akad Qardhul Hasan Di BMT Al-Amanah Cabang Subang

The Qardhul Hasan financing at BMT Al-Amanah Subang was not surveyed again, because the Qardhul Hasan survey had been carried out at the beginning of the members doing previous financing such as Mudharabah, Murabahah, Musyarakah, and Rahn financing, because Qarhdul Hasan financing is a conversion from the previous contract. Qardhul Hasan financing has certain categories for financing the needs of members such as education costs, medical expenses, and so on. The purpose of this study was to determine the terms and conditions of financing Qardhul Hasan at BMT Al-Amanah Subang Branch; To find out the Qardhul Hasan contract financing system at BMT Al-Amanah Subang Branch; and To find out the benefits of the Qardhul Hasan Agreement for members and managers of BMT Al-Amanah Subang Branch. The results of this study 1). The terms and conditions of Qardhul Hasan financing at BMT Al-Amanah Subang Branch do not use collateral on the condition that they must become members of BMT Al-Amanah, and members are no longer able to pay installments of previous contract financing that have matured; 2. Qardhul Hasan Financing System at BMT Al-Amanah Subang Branch, namely: a). For members of BMT Al-Amanah who are active members by having principal and mandatory savings, b). For members who already have financing, which is past due, but have difficulty paying the financing installments, BMT Al-Amanah converts the contract into Qardhul Hasan; 3). The benefits of Qardhul hasan for members and managers are: a). For members, it is very helpful for members who are having difficulty paying installments and as a source of non-commercial loans / bailout funds, b). For managers, namely because Qardhul Hasan financing is social and please help it will give a good image for BMT Al-Amanah Subang Branch.

Fiscal Integration in an Experimental Union: How Path-Breaking Was the EU's Response to the COVID-19 Pandemic?

Fiscal Integration in an Experimental Union: How Path-Breaking Was the EU's Response to the COVID-19 Pandemic?

The Certainty of Return on Investment in the Toll Road Concession Agreement Due to the Replacement of Land Procurement for Toll Road by Using the Bailouts Fund of Toll Road Business Entities

This study has purpose to determine the certainty of return on investment in the toll road concession agreements due to the replacement of land procurement for toll road by using the bailout funds of toll road business entities. This study was conducted by using a normative legal research with a comparative approach. The data used in this study were secondary data. The data collection technique in this study was done through literature study. The data were analyzed by using deductive legal material analysis techniques. From the results of the research and studies, it was found that the use of bailouts fund from the toll road business entities was ineffective and there were still some obstacles in its implementation.

Analisis Penetapan Ujrah Menurut Ekonomi Islam Studi Kasus BMT UGT Sidogiri Glenmore

This study aims to find out 1) How is the analysis of determination of the case study of hajj funding financing case study at BMT UGT Sidogiri Glenmore?, 2) What is the Islamic Economic perspective on the determination of the ujroh in financing the hajj bailout fund at BMT UGT Sidogiri Glenmore?This type of research uses the type of field research, with a descriptive qualitative approach, and the data collection technique used is a direct interview technique. The conclusion from the results of this study is related to the determination of ujrah which is in accordance with DSN fatwa no. 09 / DSN-MUI / IV / 2000, that the community's need to obtain the benefits of an item often requires another party through an ijarah agreement, namely the transfer of use rights (benefits) contract for an item / service within a certain time with lease payments (ujroh), without must be followed by the transfer of ownership of the goods themselves. Then that the contract (ijarah) is in accordance with Islamic teachings. DSN considers it necessary to stipulate a fatwa on the ijarah agreement to be used as a guideline by the LKS.

Risk management of chilli supply chains using weighted failure mode effect analysis

Chilli supply chain is very vulnerable to risk due to scattered production centre, large number of actors along supply chain. Hence, risk management of chilli supply chain is very crucial to be executed in order to reduce the losses received by farmers and traders. The study aims to (i) identify and assess supply chain risks, and (2) arrange efforts to manage risks in the chilli supply chain. Weighted Failure Mode Effect Analysis (WFMEA) enriched by Analytical Hierarchy Process (AHP) was implemented to evaluate high-risk priorities and to manage those risks. The results showed that risk in marketing chain got the highest priority to be controlled since the greatest potential failure occurred in this channel with the weighted Risk Priority Number about 647.3. Risk indicators in this channel were cashless payment, major harvesting, and price fluctuations. Strategies to manage those risks were the provision of storage warehouses, planting time arrangements, bailout funds for cash purchase, harvest and post-harvest technology and farm capital loan. Government supports was required for providing the small-scale storage, home scale ozonation technology to extent the chilli shelf life and improve the product quality as well as policies on accessible farmer’s credit with farming guarantee system.

RESPONS PENYELENGGARA PERJALANAN IBADAH UMRAH TERHADAP LARANGAN MEMFASILITASI DANA TALANGAN DALAM PMA NO 8 TAHUN 2018

This research aims to analyze the policy of paying the hajj bailout funds carried out by means of a monthly scheme after the pilgrims return from the Holy Land. This is contrary to PMA No.8 of 2018 which states that PPIU is prohibited from facilitating congregations using bailout funds. However, this is still being implemented by PPIU in Surakarta even though they are guided by PMA. The research method used in this research is descriptive qualitative. The data sources were explored by interview and policy documentation. It was concluded that the PPIU response in Surakarta to PMA No. 8 of 2018 did not expect that there was a ban on facilitating congregations to use the bailout funds because PPIU provided all the same facilities and services as regular congregations. PPIU in increasing the number of congregants had made several programs, one of which was the bailout funds. The society’s interest in using the bailout funds reaches 50%. The bailout funds could help the middle and lower class economic community to carry out the Umrah pilgrimage. The bailout program was organized by a third party in the financial provider. The bailout fund was not part of the PPIU program so that it was considered not a problem because it was carried out openly and the Ministry of Religious Affairs did not carry out supervision from the start starting from the financing or PPIU. The lack of supervision by the Ministry of Religious Affairs became a factor in the occurrence of violations.

The Carrot and the Stick: Bank Bailouts and the Disciplining Role of Board Appointments

This paper empirically examines the Capital Purchase program (CPP) under TARP that was usedby the U.S. government to bail out distressed banks with equity infusions. We hypothesize that a feature of the CPP, namely the ability of the government to appoint directors on the assisted bank’s board in case it missed six quarterly dividend payments, was a governance intrusion that banks would wish to avoid. Therefore, it would address both (i) the ex ante moral hazard that banks would take actions that increased the likelihood of a future government bailout as well as (ii) the ex post moral hazard that banks would undertake actions after receiving bailout funding that would increase the government’s risk exposure. We find evidence consistent with this hypothesis: in the empirical distribution of missed payments there is a sharp discontinuity at five and the probability of a sixth missed payment after missing five payments is sharply lower than the other transition probabilities. The appointment of government directors improves the bank’s profitability and reduces its risk. As a special case, the firing of Citicorp’s CEO in the third quarter of 2012 after the appointment of new directors on its board, pursuant to government participation in its common equity, induced a sharp exodus of assisted banks from the CPP.

Unsanitized and Unfair: How COVID-19 Bailout Funds Refuel Inequity in the US Health Care System.

The CARES Act of 2020 allocated provider relief funds to hospitals and other providers. We investigate whether these funds were distributed in a way that responded fairly to COVID-19-related medical and financial need. The US health care system is bifurcated into the "haves" and "have nots." The health care safety net hospitals, which were already financially weak, cared for the bulk of COVID-19 cases. In contrast, the "have" hospitals suffered financially because their most profitable procedures are elective and were postponed during the COVID-19 outbreak. To obtain relief fund data for each hospital in the United States, we started with data from the HHS website. We use the RAND Hospital Data tool to analyze how fund distributions are associated with hospital characteristics. Our analysis reveals that the "have" hospitals with the most days of cash on hand received more funding per bed than hospitals with fewer than 50 days of cash on hand (the "have nots"). Despite extreme racial inequities, which COVID-19 exposed early in the pandemic, the federal government rewards those hospitals that cater to the most privileged in the United States, leaving hospitals that predominantly serve low-income people of color with less.

Impact of Government Bailout on Banks’ Cost of Equity: Additional Evidence from the Financial Bailout of 2008–2009

The Capital Purchase Program (CPP) was the first and most significant program under the Troubled Asset Relief Program (TARP) during 2008–2009 financial crisis. This study evaluates the effect of the CPP during this period on the cost of equity of 170 publicly listed banks in the United States that received funding. To control for the potential effects of endogeneity on our results, we use a propensity score matched sample of non-CPP banks. Using this approach, we document robust evidence that the liquidity provided by the government bailout reduced the cost of equity for recipient banks, especially for those banks that repaid their bailout funds in full. This decrease in the cost of equity is particularly significant for banks with high market-to-book ratios, low concentrations of institutional ownership, and those banks with at least one large blockholder. Our findings have important implications for the assessment of government bailout programs and the future regulation of financial institutions.

The politics of bailouts: Estimating the causal effects of political connections on corporate bailouts during the 2008\u20132009 US financial crisis

In 2008, as the financial crisis unfolded in the United States, the banking industry elevated its lobbying and campaign spending activities. By the end of 2008, and during 2009, the biggest political spenders, on average, received the largest bailout packages. Is that relationship causal? In this paper, I examine the effect of political connections on the allocation of funds from the Troubled Asset Relief Program (TARP) to the US financial services industry during the 2008–2009 financial crisis. I find that TARP recipients that lobbied the government, donated to political campaigns, or whose top executives had direct connections to politics received better bailout deals. I estimate regression discontinuity design and instrumental variable models to uncover how election outcomes for politicians in close races affected the distribution of bailout funds for connected firms. The results do not imply that some banks were deliberately favored over others, just that favored banks benefited because of their proximity to the right people in power. If being politically connected matters in general, in times of crisis it matters even more.

Government Bailout Funds: Balancing Rules and Discretion

AbstractThis paper studies government bailout design in the face of economic failures by multiple firms, with ensuing threats to economic stability. Assuming that a commitment to a bailout magnitude is possible, yet cannot be made contingent on unforeseen circumstances, it is argued that the optimal policy consists of stipulating a bailout fund whose upper limit cannot be exceeded. Such an equilibrium policy provides a balance between flexibility to adjust to future circumstances and restraint of moral hazard incentive faced by the firms. An extension to the baseline model considers the case where corporate interests, divergent from those of the public, play a role, and the cap on bailout spending matters for the bargaining outcome between those interests.

The Political Economy of Chinese Debt and IMF Conditionality

Despite a substantial literature on IMF programs, little is known about whether and to what extent Chinese loan exposure shapes IMF program design. Our starting point is that Chinese loans are tied into projects that promise to generate sufficient revenue to repay these loans and entail elite kickback schemes. We expect that governments turn to the IMF for bailout funding when a severe shock erodes the value of the underlying loan collateral requiring to mobilize revenues and implement austerity measures. Anticipating fierce domestic resistance, the IMF becomes the politically most viable option to absorb the domestic political heat while allowing to retain elite kickback schemes. As a result, we expect governments to accept a `whatever-it-takes' number of loan conditions. Using cross-country time series analysis for up to 162 countries between 2000 and 2018, we show that defaults on Chinese debt trigger IMF programs only when a country experiences a severe adverse shock. Countries tapping the IMF also accept a greater number of loan conditions. From a policy perspective, our findings are a call for targeted governance reforms of the global financial safety net that go beyond program safeguards and loan conditions fostering sovereign debt transparency.

A Tale of Two Bailouts: Effects of TARP and PPP on Subprime Consumer Debt

High levels of subprime consumer debt can create social problems. We test the effects of relatively exogenous income and credit shocks on this debt from TARP and PPP bailouts during the Global Financial Crisis and COVID-19, respectively. We combine over 11 million consumer credit bureau records with bank, bailout, and local market data. We find subprime consumers with more local TARP banks significantly increased debt burdens subsequently, while more PPP bailouts are associated with reduced subprime debt. Findings are robust to instrumental variables and other identification techniques, and yield policy implications regarding bailout structures and strings attached to bailout funds.