Financial Strategies Research Articles

Integrating Green Finance and Environmental Practices to Enhance SMEs' Business and Sustainable Performance

This study explores the integration of green finance and green environmental practices and their impact on the business and sustainable performance of SMEs, specifically among tempeh entrepreneurs in Sanan, Malang. A quantitative research design was adopted to rigorously analyze these relationships. The population comprised 145 tempeh entrepreneurs, from which a representative sample of 106 respondents was selected using Slovin's formula, ensuring a margin of error that balances precision and feasibility. Data collection was conducted through structured questionnaires that captured the extent of green finance implementation, the adoption of green environmental practices, and their perceived impact on business and sustainable performance. The collected data were then analyzed using Partial Least Squares (PLS), a robust statistical technique that allows for the modeling of complex relationships among the variables. The analysis confirmed that both green finance and green environmental practices significantly and positively influence the business performance and sustainability of SMEs. These findings underscore the critical role of environmentally conscious financial and operational strategies in driving sustainable growth within the SME sector. By integrating these practices, tempeh entrepreneurs can not only enhance their business performance but also contribute to broader environmental sustainability.

Investment Decision-Making Among Students Using Prospect Theory in Behavioral Economics

Investment decision-making is crucial in finance, particularly for students planning their financial futures. This study focuses on students at Universitas Negeri Makassar (UNM) to understand how psychological factors influence their investment decisions. Utilizing Prospect Theory from behavioral economics, the research examines key factors such as risk perception, profit expectations, and time preferences. The study involved a survey of UNM students, and the descriptive analysis reveals that students tend to make decisions influenced by behavioral biases, loss aversion, and risk preferences. The findings indicate that students are consistent in their financial decision-making but are significantly impacted by psychological biases, particularly in their tendency to avoid losses and their cautious approach to risk and uncertainty. Overall, the investment behavior of UNM students is shaped by the psychological factors outlined in Prospect Theory, highlighting their reliance on subjective perceptions and loss avoidance. This research provides valuable insights for developing more effective financial literacy strategies and promoting wiser investment decisions among students. Additionally, it contributes to the application of Prospect Theory in the context of student investment decision-making.

Energy cost forecasting and financial strategy optimization in smart grids via ensemble algorithm

Energy cost forecasting and financial strategy optimization in smart grids via ensemble algorithm

The Impact of Digital Transformation on Company Valuation: A Case of Microsoft

The digital economy is now the driving force behind global economic expansion. In 2014, Microsoft underwent a digital transformation, and its valuation soared. This essay aims to investigate how the digital revolution affects business valuation. This paper applies research in asset valuation, investment and financing strategies, and risk management to qualitatively analyze Microsoft through the SWOT analysis method. Advanced technology and corporate innovation can raise valuation expectations, while technological risks and business homogenization can impact market competition and lower company valuation. Microsoft's advancement in digitalization can not only improve the company's competitiveness, but also enhance its value and promote high-quality development. As a result, firms need to effectively manage technology risks and data security issues, control costs, or improve service quality to remain competitive in the marketplace and increase the firm's valuation, thereby maintaining its market position and overall value. In this and other contexts, factors affecting valuation are subsequently discussed.

A Study on Mutual Fund Investors Awareness Regarding Factsheet of the Scheme

Mutual fund is an investment tool, getting popular day by day. Indian Mutual fund industry manage Rs. 64.71 trillion in July 2024 an increase of about 40% from July 2023. Individual investors hold 61.0% of overall Assets under Management in July 2024. Fact sheet of scheme depict performance of mutual fund scheme. Awareness of individual investors regarding contents of fact sheets is highly desirable and this awareness level is found out in a small group for getting information and suggesting appropriate action. Key Words: Mutual fund, Investors, Awareness, Factsheet

A generalization of the Topological Tail Dependence theory: From indices to individual stocks

This study investigates the Topological Tail Dependence (TTD) theory’s applicability to individual stock volatility and high dimensions. Utilizing a comprehensive dataset from the S&P 100, the research employs various methodologies to test the predictions and implications of the TTD theory. The theory’s main prediction of Wasserstein Distance’s predictive utility, particularly in nonlinear models during volatile periods, is confirmed. The research suggests extending the TTD theory’s application to various financial instruments and incorporating dynamic topological features to enhance understanding market dynamics. This study validates the TTD theory for individual stocks and highlights the necessity of topological considerations in financial modeling, promising advancements in financial econometrics and risk management strategies.

An Exploration of Frugal Living's Lifestyle Among Migrant Students of Pertamina University: Implications for Identity in Intercultural Communication

This research explores the application of frugal living lifestyle among Pertamina University overseas students, focusing on the implications for identity and intercultural communication. The background of this research is the high cost of living in DKI Jakarta, which poses a challenge for overseas students. Frugal living emerged as a solution to overcome this financial challenge, emphasizing smart and disciplined financial management. This research aims to understand how students internalize and communicate frugal living values in their daily lives. This research uses a qualitative approach with an interpretive paradigm. Participants were selected through purposive sampling technique, with the inclusion criteria of overseas students who live a frugal lifestyle. Primary data were collected through in-depth interviews and observations, while secondary data were obtained from supporting documents and literature. Data analysis was conducted by interpreting the results of interviews and observations to understand the application of frugal living and its implications for identity and intercultural communication patterns. The validity of the research was maintained by selecting the right participants and reaching the information saturation point. The results show that frugal living is not just a financial management strategy, but also reflects the values of simplicity, sustainability, and responsibility. The frugal identity that is formed affects the way students interact with the surrounding environment, strengthens their sense of independence and responsibility, and is recognized as a wise individual in managing finances. The implications of this research can support further understanding of the frugal living lifestyle among overseas students, with a focus on identity formation and intercultural communication.

Innovating the bank-firm relationship: a spherical fuzzy approach to SME funding

PurposeInnovation in financing processes, enabled by the advent of new technologies, has supported the development of alternative finance funding tools. In this context, the study analyses the growing importance of alternative finance instruments (such as equity crowdfunding, peer-to-peer (P2P) lending, venture capital, and others) in addressing the small and medioum enterprises' (SMEs) financing needs beyond traditional bank and market-based funding channels. By providing more flexible terms and faster approval times, these instruments are gradually reshaping the traditional bank-firm relationship.Design/methodology/approachTo comprehensively understand this innovation shift in funding processes, the study employs a novel approach that merges three MCDA methods: Spherical Fuzzy Entropy, ARAS and TOPSIS. These methodologies allow for handling ambiguity and subjectivity in financial decision-making processes, examining the effects of multiple criteria, including interest rate, flexibility, accessibility, support, riskiness, and approval time, on the appeal of various financial alternatives.FindingsThe study’s results have significant theoretical and practical implications, supporting SMEs in carefully evaluate financing alternatives and enables banks to better identify the main “competitors” according to the “financial need” of the firm. Moreover, the rise of alternative finance, notably P2P lending, indicates a shift towards more efficient capital access, suggesting banks must innovate their funding channels to remain competitive, especially in offering flexible solutions for restructuring and high-risk scenarios.Practical implicationsThe study advises top management that SMEs prefer traditional loans for their reliability and accessibility, necessitating banks to enhance transparency, innovate, and adopt digital solutions to meet evolving financing needs and improve customer satisfaction.Originality/valueThe study introduces a novel integration of Spherical Fuzzy TOPSIS, Entropy, and ARAS methodologies to face the complexities of financial decision-making for SME financing, addressing ambiguity and multiple criteria like interest rates, flexibility, and riskiness. It emphasizes the importance of traditional loans, the rising significance of alternative financing such as P2P lending, and the necessity for banks to innovate, thereby enriching the literature on bank-firm relationships and SME funding strategies.

Seller-Orchestrated Inventory Financing Under Bank Capital Regulation

To help small firms secure bank financing, large sellers often orchestrate joint finance programs, linking their small dealers with major banks that lend to all participating dealers based on the information the seller provides. We examine supply chain decisions (pricing and inventory) and lending terms under such seller-orchestrated financing programs. In loan pricing, we highlight a form of financial friction that is of particular importance under such schemes—bank capital regulation. Banks are globally mandated to maintain regulatory capital to mitigate unforeseen loan losses, using either the standardized approach (where regulatory capital is a fixed percentage of the loan amount) or the internal rating-based (IRB) approach (where it depends on the loan’s value-at-risk). We consider a game-theoretic model consisting of a large seller and multiple capital-constrained newsvendor-type dealers, who obtain financing from banks that are subject to capital regulation. The seller decides the wholesale price and whether to orchestrate a joint finance program for its dealers by collaborating with a bank, and the dealers choose their inventory level and the financing channel. We find that a seller should only orchestrate the joint financing program when the bank adopts the IRB approach and the dealers are of low risk. Such a program is more profitable to the seller when the demand correlation among dealers is low, and there is a large number of dealers. Although always benefiting the seller, these programs may hurt dealers with intermediate risk. Facing dealers with varying financial situations, the terms under the joint finance program should be designed as if the financially strong dealers subsidize the weak ones. Finally, allowing the seller to share part of the loan loss could further enhance the performance of joint financing, but only when the seller’s opportunity cost of capital is low. Our findings provide guidance to large sellers on how to orchestrate joint finance schemes, and to small dealers on making their corresponding operational decisions.

An analytical study on value chain finance to tomato and mango as a component of high value agriculture in the Eastern Uttar Pradesh of India

The study conducted an extensive field survey utilizing pre-tested interview schedules with tomato and mango growers and chain actors. A multi-stage purposive-cum-stratified random sampling method was employed to select sample units. The findings of this study highlight the cost orientation of tomato and mango production, indicating a greater need for consequential credit. The research revealed that growers of both commodities within fragmented value chains had a higher proportionate share in the value addition (price) than growers in integrated chains, primarily due to direct sales of produce to consumers. Additionally, downstream actors such as commission agents, wholesalers, and retailers received a comparatively higher proportionate share in the value additions (price) compared to upward actors, indicating that producers could not effectively compete with increased demand in the marketplace. Observations within the chain indicated that finance for tomato and mango production circulated through a product commitment relationship established between chain participants. Downstream actors provided financing to upstream actors from either their surplus funds or external finance received from financial institutions. The study suggests developing a producer-driven chain financing model as an alternative to the buyer-driven financing model for tomato and mango production. This could be achieved by promoting farmers' organizations as long-term financing strategies for financing institutions.

Stakeholder Perspectives on the Governance and Accountability of Nigeria's Basic Healthcare Provision Fund.

In recent decades, Nigeria has implemented a number of health financing reforms, yet progress toward Universal Health Coverage (UHC) has remained slow. In particular, the introduction of the Basic Health Care Provision Fund (BHCPF) through the National Health Act of 2014 sought to increase coverage of basic health services in Nigeria. However, recent studies have shown that health financing schemes like the BHCPF in Nigeria are suboptimal and have frequently attributed this to weak accountability and governance of the schemes. However, little is known about accountability and governance of health financing in Nigeria, particularly from the perspective of key actors within the system. This study explores perceptions around governance and accountability through qualitative, in-depth interviews with key BHCPF actors including high-level government officers, academics and Civil Society Organisations. Thematic analysis of the findings reveals broad views among respondents that financial processes are appropriately ring-fenced, and that financial mismanagement is not the most pressing accountability gap. Importantly, respondents report that accountability processes are unclear and weak in subnational service delivery, and cite low utilisation, implicit priority-setting, and poor quality as issues. To accelerate UHC progress, the accountability framework must be redesigned to include greater strategic participation and leadership from subnational governments.

Book-Tax Differences during the Crisis: Does Corporate Social Responsibility Matter?

This study investigates the intricate relationship between corporate financial strategies, encapsulated by book-tax differences (BTDs), and firms’ engagement in corporate social responsibility (CSR) programs during economic crises. Using an unbalanced panel dataset drawn from financial, annual, and sustainability reports of over 97 Indonesian non-financial firms from 2017 to 2022, this study reveals that economic crises and CSR activities positively influence total BTD and permanent differences. Notably, firms strategically leverage CSR initiatives amidst crises to enhance their corporate image and manage internal challenges like aggressive tax planning. The robustness of these findings was validated through endogeneity analysis and by examining sub-samples from industries most impacted by the pandemic. In the industries least affected by the pandemic, the direct impact of CSR on BTD was found to be negative, indicating that in the general context, the CSR programs held by these industries are largely driven by normative motives. However, when specified in the crisis context, CSR serves as a strategic buffer for these industries, which reaffirms the prevalence of CSR strategic motives during Indonesia’s pandemic challenges. The findings suggest policy implications for shareholders, regulators, and policymakers to ensure CSR transparency aligns with long-term corporate values and societal impact, incentivizing genuine CSR practices amidst economic uncertainty. Despite its contributions, the study recommends future research explore different domains of CSR and validate findings across diverse contexts to enrich the understanding of CSR’s role in corporate resilience strategies.

Service-Based Periodic Payment Provided/PBBL by the Government of Indonesia to Bayung Lencir – Tempino – Simpang Ness Toll Road

In 2020, PT Hutama Karya (Persero), a state-owned enterprise mandated by the government to build the Trans Sumatra Toll Road, appointed a private consultant to conduct a feasibility study and for the proposed construction of the Betung – Tempino – Jambi Toll Road. However, due to the low traffic volume in the Jambi Province, the toll road was deemed financially not feasible to be developed. Given the substantial costs required for the development of the Betung – Tempino – Jambi Toll Road, this toll road segment was divided into several sections. Betung – Tempino – Jambi Toll Road is a segment of the primary route of the Trans Sumatra Toll Road, Phase 2, which spans 171 kilometers across the provinces of South Sumatra and Jambi. Bayung Lencir – Tempino – Simpang Ness Toll Road, which stretches 52 kilometers, is a part of the Betung – Tempino – Jambi Toll Road prioritized for construction and operation. According to Presidential Regulation of the Republic of Indonesia Number 131 of 2022, a funding scheme known as Service-Based Periodic Payments/Pembayaran Berkala Berbasis Layanan (PBBL) shall be provided to PT Hutama Karya (Persero) to enhance the financial feasibility and to ensure the funding, technical planning, construction execution, operation, and maintenance of the toll road. This study will analyze and evaluate the financial feasibility of the Bayung Lencir – Tempino – Simpang Ness Toll Road before and after the implementation of PBBL provided to PT Hutama Karya (Persero) during the estimated duration of toll road concession for 50 years. The duration of the PBBL granted by the Government of Indonesia to PT Hutama Karya (Persero) is 15 years, with an annual payment of 880 billion Rupiah. Based on the financial feasibility analysis without PBBL, the results indicate a negative NPV, an IRR lower than the Weighted Average Cost of Capital (WACC), a Discounted Payback Period exceeding the toll road concession period, and a Profitability Index below 1, indicating that the project is not yet financially viable. On the other hand, the financial feasibility analysis after PBBL implementation shows a positive NPV, an IRR greater than WACC, a Discounted Payback Period within the toll road concession period, and a Profitability Index above 1, indicating that the project is financially feasible. Therefore, PT Hutama Karya (Persero) shall develop the Bayung Lencir – Tempino – Simpang Ness Toll Road with PBBL scheme that contributed by the Government.

Modelling a financial literacy strategy as a life project concept

Financial literacy as a key element of ensuring sustainability and stability of economic systems is becoming important in the process of economic development. Financial literacy contributes to improving the well-being of citizens and the efficiency of financial resource management at the macro level. Thus, the purpose of the present study was to develop models for evaluating the effectiveness of various financial literacy strategies and their impact on the formation of life projects. A complex of scientific methods, including the analysis of statistical data and modelling of financial behaviour, was used to create a strategic model of financial literacy as a concept of a life project. A methodological approach, encompassing the decomposition of the stages of a person’s life and the identification of the peculiarities, connected with the use of money at each of these stages, was implemented in the research. Approaches to financial literacy focused on various forms of interaction with financial resources were suggested, and effective strategies for improving financial literacy were identified. The concept of financial literacy was examined and specified through the lens of knowledge, skills, and confidence for making responsible financial decisions. The advantages and disadvantages of developing financial literacy in Ukraine were identified, and examples of successful strategies of leading countries were provided. The importance of financial education at different stages of a person’s life was substantiated; the key periods of a person’s life and development, when money can act as earnings, expenses, accumulation, preservation, and transfer, were specified. The assessment of the influence of financial literacy on economic behaviour was carried out, and a life project model that takes into account financial decisions and actions was developed. Monetary models of preservation and accumulation of parental income, pocket money, and earnings from employment were considered in detail. The results of this study can be applied in practice when creating a state strategy aimed at increasing the level of financial literacy of the population and ensuring economic security

Pengaruh pembiayaan Mudharabah,Murabahah dan Musyarakah Terhadap Bank Umum Syariah dengan NPF sebagai Variabel Moderasi

The research conducted analyzes the impact of Mudharabah, Murabahah and Musyarakah financing on the profitability of Islamic commercial banks during the period from 2016 to 2020. In this analysis, NPF was used as a moderating variable. Quantitative methods were adopted to analyze monthly time series data from 2016 to 2020, which was accessed via the OJK statistical database. The sample selection process was purposive sampling, referring to certain criteria, with a total of 120 samples examined over the five years. This research uses multiple linear regression analysis method which is conducted through SPSS application to process the data. This research helps to highlight factor affecting the Financial Perfomance of Islamic Banks. The findings of this research can provide valuable information to decision makers in Islamic banks to design more optimal financing strategies and improve credit risk management through a deeper Understanding the relationship between financing and profitability.. The results of this analysis show a significant positive influence between Mudharabah, Murabahah and Musyarakah financing on profitability, which mainly affects ROA in Sharia commercial banks. Although NPF does not significantly moderate the relationship between Mudharabah and ROA, this research reveals the important role of NPF in moderating the impact of Murabahah and Musyarakah financing on ROA.

When crowdfunding meets bank financing: Substitute or supplement?

Crowdfunding is a new financing method that is widely utilized by startup firms to substitute or complement bank loans. We consider the optimal financing problem for a profit-maximizing startup firm, given that both the crowdfunding demand and retail market demand are uncertain and correlated. We find four types of financing strategies: single-source (crowdfunding only) and dual-source (crowdfunding and bank loan) financing, with prudent or aggressive goal-setting in crowdfunding. The four strategies each can be optimal for a specific parameter range with respect to the uncertainty ratio of crowdfunding and retail markets and the cost of crowdfunding. Upon deriving optimal strategies, we analyze comparative statics for the strategies and optimal profits. We show that, among other interesting results, market expansion (through either crowdfunding or the retail market) always calls for a higher crowdfunding goal but may raise or reduce the optimal bank loan depending on which market expands, and market expansion generally increases optimal profit except when the crowdfunding market grows too large which intensifies the overfinancing risk. Moreover, a high correlation between crowdfunding and the retail market does not necessarily favor the use of crowdfunding capital, nor does it always increase profits, and the impacts must be co-examined with the underfinancing and overfinancing risks.

Harnessing the power of AI and IoT for real-time CO2 emission monitoring

Global CO2 emissions have been an essential topic of the environmental discussion. Still, empirical data is needed to support arguments that high-quality government actions could reduce these emissions. By analyzing data from 137 nations from 2000 to 2020, we offer strong evidence that state policies focused on promoting healthy ecosystems, sustainable economic growth, and transcendent legislative changes are capable of decreasing CO2 emissions. Based on our findings, there are essentially three critical institutional factors that need to be improved for environmental policies to be efficient: the concept of law, which protects citizens' intellectual property rights; citizens' speech, which allows them to participate in elections and represent themselves freely, and the management of corruption. Policies aimed at promoting economic growth, lowering oil and gas use, enhancing the usage of green energy by the public and private sectors, and enhancing such institutional factors are all necessary components of a climate-friendly financial strategy.

Corporate Social Responsibility, Intellectual Capital and Leverage on Firm Value with Profitability as a Moderating Variable

The rise in stock prices indicates that a company has promising future prospects, thereby boosting its perceived value among investors. The higher the share price, the higher the firm value. The aim of this research is to determine the role of profitability in moderating the relationship between corporate social responsibility, intellectual capital and leverage on firm value. The population of this research uses mining sector companies listed on the Indonesia Stock Exchange in 2018-2022. Sampling used a purposive sampling technique to obtain 75 data from 15 companies that met the criteria. This research method is quantitative research with data analysis techniques, namely multiple regression analysis and moderated regression analysis (MRA) using SPSS 23 software. The results of this research show that corporate social responsibility has an effect on firm value, intellectual capital and leverage have no effect on firm value. Profitability is not able to moderate corporate social responsibility on firm value. Profitability is able to moderate intellectual capital and leverage on firm value. The implications of this study include the need for companies to carefully consider allocation strategies for corporate social responsibility, taking into account improvements in other financial performances to avoid a decline in firm value. Effective management of intellectual capital should be accompanied by high profitability, and high profitability should be balanced with leverage ratio to maximize firm value. Well-integrated financial strategies considering various factors will help companies enhance their value in the market.

The New EU Industrial Policy: Opening Up New Frontiers for Financial Capital

The EU has implemented a whole array of industrial policy programmes over the past decade to bolster the competitiveness of selected knowledge-intensive industries and to induce a digital and green transition. Responding to shifting competitive challenges in global capitalism, and the adoption of industrial strategies by other major economies, the new EU industrial policy seeks to onshore manufacturing capacity in sectors of geoeconomic importance, and simultaneously reduce dependencies on global value chains. Drawing on a historical materialist perspective, this article historizes and contextualises the financing strategies adopted within EU industrial policy. Faced with tight budgetary constraints, and deficit spending not being an option at the EU level, unlocking private investment takes centre stage, such as by tapping into capital markets or using member state aid or EU structural funds as a precursor, as well as by incentivising private investments through risk-absorbing financial instruments that rely on the EU budgetary resources. As will be shown, the EU has been experimenting with such risk-absorbing financial gimmicks for industrial policy purposes since the 1990s; yet, their usage has reached unprecedented levels with the heightened geoeconomic tensions since the 2008 and Covid-19 crises. The article demonstrates moreover that organised factions within financial and industrial capital have actively advocated for public safeguards, and that their deployment thus is not merely a functionalist response to shifting power dynamics or a desperate last resort in the absence of a supranational fiscal policy.

AI-Driven Financial Modeling Techniques: Transforming Investment Strategies

Artificial Intelligence (AI) has revolutionized financial modeling and investment strategies by introducing sophisticated algorithms and advanced data processing capabilities. This article delves into a variety of AI-driven financial modeling techniques, such as machine learning, natural language processing, and deep learning, providing detailed examples of their applications. These techniques are shown to significantly enhance predictive accuracy, risk management, portfolio optimization, and trading strategies. Through case studies and empirical evidence, the article highlights the transformative impact of AI on financial modeling. Additionally, it addresses the challenges in implementing AI-driven models, such as data quality issues, model interpretability, and regulatory concerns, and identifies future research opportunities to further advance the field. The comprehensive analysis provided offers a clear understanding of how AI is reshaping the financial industry, the potential benefits it brings, and the hurdles that must be overcome to fully harness its capabilities.