Guarantee Companies Research Articles

Compensation, Stress, And Retention: Crafting A Satisfied Workforce In Guarantee Companies

This study examines the effects of compensation and work-related stress on employee retention, with job satisfaction acting as a mediating factor within Indonesia's guarantee company sector. A quantitative approach was used, involving 216 permanent employees from guarantee companies who had been employed for at least one year. Data was gathered through an online survey using a 5-point Likert scale, and analysis was conducted with SMART PLS. The findings reveal that compensation has a positive impact on job satisfaction, while work stress negatively affects it. Additionally, job satisfaction significantly boosts employee retention. Interestingly, the direct influence of compensation and work stress on employee retention was not statistically significant. However, job satisfaction strongly mediates the relationship between compensation and employee retention (suggesting a positive mediation) as well as the relationship between work stress and employee retention (indicating a negative mediation). These results provide valuable insights into the factors affecting employee retention in the guarantee industry and offer practical suggestions for organizations aiming to improve their retention strategies. This research uniquely integrates compensation, work stress, job satisfaction, and employee retention into one framework, particularly within the less-explored context of the guarantee sector

Determinants of the Financial Health of Deposit Guarantee Corporation in the Pandemic Era (Case Study at PT. XYZ Sharia)

PT. XYZ Sharia is a deposit guarantee corporation (“Lembaga Penjamin”), which obliged to maintain its financial health as explained in the Financial Services Authority Circular Letter Number 18/SEOJK.05/2018. During the pandemic era PT. XYZ Sharia is faced with strategic issues relating to the implementation of more effective risk management. This is expected to provide protection for the company against losses and maintain the company's financial health level in the very healthy category. This research aims to analyze the significance of liquidity calculations, Gearing Ratio, ROA, BOPO and claims ratio on the level of financial health of PT XYZ Sharia. The research used multiple linear regression analysis. The data are secondary data originating from the financial reports of PT XYZ Sharia for 2021-2022. The research found that the Gearing Ratio and BOPO had positive and significant effects on the company's health level. Simultaneously, liquidity, Gearing Ratio, ROA, BOPO and Claims Ratio have a significant effect on the company's financial health level. Keywords: BOPO, Claims Ratio, Deposit Guarantee Companies, Financial Health, Gearing Ratio, JEL Classifications: G23, I12, Liquidity, ROA.

Government subsidy policies for guarantee financing: Risk compensation vs. fee reduction

Small and medium-sized enterprises (SMEs) often rely on credit guarantee companies (guarantors) to obtain financing from banks. To encourage guarantors’ engagement and reduce SMEs’ guarantee costs, governments commonly implement two subsidy policies: risk compensation, which shares a fraction of guarantors’ losses, and fee reduction, which reimburses SMEs for a fraction of their guarantee fees. This paper formulates a game theoretical model to analyze the impact of these two policies on the decisions and profits of a capital-constrained SME firm and a profit-maximizing guarantor, and how a government should choose between the two policies. We find that under each policy, the total expected profit improvement of the firm and the guarantor is greater than the government expected expenditure incurred if and only if the firm's default probability is below a threshold. Comparing the two policies with a budget constraint, we find that if the government's objective is to maximize the firm's expected profit, risk compensation outperforms fee reduction. But if the objective is to maximize the total expected profit of the firm and the guarantor, which policy performs better depends on the firm's default probability. Moreover, if the government aims to maximize social welfare, risk compensation performs as well as or better than fee reduction. We also consider the case where the guarantor is publicly owned and not-for-profit; in this case, under each policy, the expected profit improvement of the firm is always lower than the government expected expenditure.

PT Jamkrindo Surety Bond Product Marketing Strategy 2024-2026

The Indonesian government, under the leadership of President Joko Widodo for two terms, gave significant emphasis on infrastructure development, as reflected in the annual infrastructure capital expenditure. Infrastructure development aims to promote balanced development and open up new economic areas. In addition to infrastructure projects, the government also allocates a portion of the capital expenditure to strategic projects. The procurement process for goods and services, both for infrastructure development and capital expenditure, requires Surety Bonds issued by guarantee companies or Bank Guarantees issued by banks. PT Jamkrindo is one of the providers of Surety Bond products, however, its marketing strategy is not aligned with the marketing objectives of increasing the volume of guarantees and profitability. Therefore, a new marketing strategy for Surety Bond products is needed, utilizing the Mullins 4C model approach: context, customer, company, and competitor. These four aspects are analyzed using macro analysis, industry analysis, consumer decision-making process (CDMP), brand image, points of parity, and points of difference. Through this analysis, a new marketing strategy for Surety Bond products is formulated.

Pengaruh Kualitas Pelayanan Terhadap Tingkat Kepuasan Masyarakat di Kota Kendari

Services are economic activities that involve interactions between consumers or property, but ownership of these goods does not move. Services are basically individual or group activities offered to consumers to use their services that are intangible and cannot be owned. Guarantee is the activity of providing guarantees by the guarantor for the fulfillment of guaranteed financial needs or obligations to the guarantee recipient. A guarantee company is a legal entity engaged in finance with the main business activity of providing guarantees. One of the guarantee companies, namely PT. Indonesian Credit Guarantee or PT. JAMKRINDO. Researchers feel interested and want to know the services provided by the guarantee company to the satisfaction of the Kendari city community, especially the service users of PT. JAMKRINDO Kendari Branch. The purpose of this study was to determine the quality of service on the level of satisfaction of the Kendari city community who used the services of PT. JAMKRINDO Kendari Branch. This research uses descriptive quantitative research. The technique used to collect data in this study was by distributing questionnaires given to a sample of the population of service users of PT. JAMKRINDO Kendari Branch. The research method used in this study is multiple linear regression analysis with the help of IBM SPSS 25 software. The results of this study are (1) the quality of service partially has a significant influence on community satisfaction which consists of indicators, namely physical evidence, reliability, responsiveness, assurance, and empathy. It is known by the results of the t-test, namely the indicator has a value of Tcount > Ttable (2) The quality of service simultaneously has a significant influence on community satisfaction. It is known from the F test which has the value of influencing people's satisfaction. Service quality has a significant influence on community satisfaction of 69.9%.

Credit coguarantee loan buyback contracts: Equilibrium and coordination strategies

Buyback guarantee financing requires core enterprises to provide both a buyback policy and a credit guarantee. The recent economic downturn has severely weakened the credit guarantee capacities of enterprises. Guarantee companies (GCs) that provide financing credit guarantee services address this issue specifically and have attracted considerable attention. We consider incorporating a GC into the supply chain to fully coguarantee with core enterprises, introduce risk compensation into the model to hedge against default risk, and formulate a multilevel Stackelberg game with the GC as the leader. A credit coguarantee loan buyback (CCLB) contract, integrating a credit coguarantee loan and a buyback contract, is designed to analyze equilibrium strategies. Additionally, we explore the coordination conditions for the CCLB contract and perform numerical analysis to illustrate its effectiveness. The optimal decisions under different financing scenarios are comparatively analyzed to show coguarantee effectiveness. We also investigate the value of CCLB compared to trade credit finance. We find that a higher decentralized optimal order quantity depends on a lower service fee rate, or a higher buyback price and return rate in some cases, while the optimal service fee rate is conditional on the coguarantee share and risk compensation ratio. The results reveal that with appropriate parameters, the proposed contract can achieve coordination. For a supply chain with a higher buyback price and return rate or greater risk compensation, GCs prefer to join; otherwise, they either cover a lower risk or charge a higher service fee rate to achieve a sustainable credit guarantee business.

Background, Development Status and Impact of the Cooperation between Government, Banks and Guarantee Companies: A Literature Review

The cooperation between the government, banks and guarantee companies plays a crucial role in solving the financing problems of SME, and the impact of this cooperation model on the financing activities of SME is also the focus of many scholars’ research, but there is still a lack of literature review related to it. Therefore, this paper systematically sorts out the core journals related to them in recent years, and attempts to paint an overall picture of the background, development status and impact of cooperation between the Chinese government, banks and guarantee companies. It is intended to contribute to relevant research and point the way for other scholars to identify valuable research topics.

지방자치단체 출자출연기관 자본잠식에 관한 연구

This study analyzes the capital erosion ratio and trend by dividing local government invested and contributed companies by type (by investment, contribution) using financial report data from the Ministry of Public Administration and Safety during 2014-2020. In 2020, 39 out of 92 invested companies, 39 (42.4%) had no capital erosion, 25 (27.2%) had more than 0% and less than 50%, 11 (12.0%) had more than 50% but less than 100%, and 7 (18.5%) had full capital erosion (100% and above). Therefore, there are 18 institutions with partial and complete erosion, with 19.5% of all invested companies suffering capital erosion. It seems necessary to determine the cause of capital erosion and prescribe for future capital erosion mitigation.
 In the case of contributed companies, 603 (90.1%) out of 669 total contributed companies in 2020, had no capital erosion. However, 43 companies (6.4%) suffer 0% and less than 50%, 10 (1.5%) of partial erosion, and 13 (1.9%) of 100% or more of full capital erosion. Therefore, 23 contributed companies (3.4%) are suffering from either partial or full capital erosion, which seems to be relatively good compared to invested companies.
 As a result of classifying and analyzing contributed companies by sub-type, the largest proportion of capital erosion companies (71%) is medical care center. The type with the highest proportion of institutions capital-infested after medical centers is credit guarantee companies (55%). Both types have the characteristic that the size of capital is relatively larger than other contributed companies. Conversely, the type with a low proportion of capital erosion is female youth institutions, only about 4% of institutions showing capital erosion.

Analisis Pestel Dan SWOT Sebagai Dasar Perumusan Strategi Pada PT. Asrinda Arthasangga Reinsurance Brokers

Reinsurance brokerage business is a consulting and/or intermediary service business in placing reinsurance or sharia reinsurance placement and handling claims settlement by acting for and on behalf of insurance companies, sharia insurance companies, guarantee companies, sharia guarantee companies, reinsurance companies, or sharia reinsurance companies that place reinsurance or sharia reinsurance. This study aims to determine what are the external and internal environmental factors of the company at PT. Asrinda Arthasangga Reinsurance Brokers, then carried out an analysis of these factors using PESTEL and SWOT analysis as a basis for formulating a strategy that will be used by the company so that it is more advanced and developed so that the vision, mission and goals of the company are achieved. This study uses a qualitative method using the research object is PESTEL and SWOT analysis and the research subject is PT. Asrinda Arthasangga Reinsurance Brokers. The results of research using PESTEL and SWOT analysis show that PT. Asrinda Arthasangga Reinsurance Brokers is in quadrant 1 or the position of growth and development (growth). The strategy that must be implemented is a strategy that supports an aggressive growth policy. PT. Asrinda Arthasangga Reinsurance Brokers formulates both short term and long term strategic plans. The short-term strategy is in the form of a functional strategy which is a short-term activity within the company that must be developed by each function area of the company to implement corporate strategy and business strategy in each department or section.

Risk Control and Prevention of Financing Guarantee Companies

Risk Control and Prevention of Financing Guarantee Companies

SME financing with a combination contract of investment and guarantee

A combination contract of investment and guarantee (IGC) is a financial innovation developed to overcome the financing constraints of small and medium-sized enterprises (SMEs) in China. This paper develops a dynamic structural model where SMEs are financed with IGCs and face market and technological uncertainty. We show that as market or technological uncertainty increases, guarantee companies tend to invest in less equity in SMEs and require a larger guarantee cost from entrepreneurs. The success of entrepreneurs and guarantee companies that enter into an IGC is more likely when market uncertainty is moderate and the entrepreneur’s bargaining power is relatively low.

Profitability Determinants Analysis at Sharia Guarantee Company in Indonesia

Aims: To research the internal and external factors that influence it in order to conduct an in-depth analysis of the condition of the sharia guarantee company in Indonesia and the company's management strategy in Indonesia.
 Study Design: Quantitative-qualitative design with data obtained from the monthly Management Reports of PT Jaminan Pembiayaan Askrindo Syariah and PT Pembiayaan Jamkrindo Syariah, Indonesian Guarantee Statistics 2014-2019.
 Place and Duration of Study: PT Jaminan Pembiayaan Askrindo Syariah and PT Pembiayaan Jamkrindo Syariah, Indonesian Guarantee Statistics 2014-2019.
 Methodology: The data is gained from four respondents of Presidents Director of PT Askrindo Syariah, Presidents of Director of PT Jamkrindo Syariah, Head of Business Department of PT Askrindo Syariah, and Head of Assurance Business Division of PT Jamkrindo Syariah.
 Results: From the panel data analysis, the variables that affect the company's profitability are Claim Ratio (CR), Return on Investment (ROI), Subrogation Level (SUBR), Company Size (Total Assets) and total Islamic financing carried out by Islamic Commercial Banks (LKS). Based on the results of the analysis of the relationship between internal and external factors above as well as a SWOT analysis, several strategic recommendations for the development of the sharia guarantee industry can be described, including collaboration/synergy with the parent company, business expansion, utilization of information technology, improvement of sharia guarantee product quality, strengthening of asset management functions, developing human resource capabilities, strengthening capital, building communication and seeking support from various relevant stakeholders.
 Conclusion: In order to be able to implement the strategy as intended and in order to increase profitability or maintain business continuity, sharia guarantee companies need the ability of managers to formulate company strategies in the form of appropriate work programs and receive support from various parties including the Government or Regulators (Financial Services Authority) and Shareholders, especially in facing challenges in the current pandemic. For academics, the authors recommend that further research is needed on sharia guarantee companies from other aspects outside of financial performance such as the amount of the multiplier effect resulting from economic growth due to sharia guarantee activities.

Differences between Members and Shareholders of a Friendly Society and the Payment of Dividends: A South African–Australian Perspective

This article focusses on a very specific problem statement, namely how shareholder society relationships are viewed in Australia and South Africa. Friendly societies are special "legal creatures" enjoying legal personality from the date and time of their registration (not as companies). In South Africa friendly societies have been in existence for more than 160 years, with the latest legislation being promulgated in 1956. As an unregistered company, the friendly society forms part of the South African business enterprise landscape and has both members and shareholders. The legal relationships between members and shareholders and the payment of a dividend are unclear in the Friendly Society Act, 1956, and are generally regulated by the constitution or memorandum of incorporation of the friendly society. In Australia friendly societies developed approximately 200 years ago. In 1999 friendly society legislation was repealed by the Financial Sector Reform Act, 1999, in terms of which friendly societies had to convert to companies either as companies limited by guarantee or public companies as regulated by the Corporations Act, 2001. Prior to 1999, friendly societies were largely regulated by the Queensland Friendly Society Act, 1997 as unregistered companies. The Code regulated the relationships between members and shareholders and the payment of dividends. In this article we also focus on Australian friendly societies after 1999 and how they compare with South African friendly societies with regard to the member/shareholder relationships and the payment of dividends.

Will Guarantee, Guarantee Companies a Door to Door Sale?

Will Guarantee, Guarantee Companies a Door to Door Sale?

Financing constraints of Small and medium-sized enterprises (SMEs) in Northeast China

Small and medium-sized enterprises (SMEs) are an important part of regional economies and play an integral role in encouraging development. When we discuss north-east China, it is often in reference to Heilongjiang, Jilin and Liaoning provinces. For historical reasons, the economic policy inclination in this area mainly points to public enterprises and state-owned heavy industrial operations. As a consequence, small and medium-sized non-public enterprises have been restricted and this negatively impacted localised economic activity and development to a certain extent. Financial constraints naturally restrict the development of small and medium-sized enterprises, as is the case in north-east China. In this paper, focus will be placed on SMEs and the nature of economic systems in the aforementioned region. Through extensive research and analysis of enterprises, financial institutions and guarantee companies, this paper will serve as an intimate analysis of the financial status in addition to the difficulties faced by SMEs in north-east China. In turn, It will also make appropriate suggestions or identify specific counter-measures.

Assessing credit guarantee companies in China: Applying a new framework

In this paper, we developed a framework for assessing the quality of credit guarantee institutions and then applied the framework to a sample of guarantee companies in China. Our results suggest that whereas macroscopic environments significantly impact the credit guarantee sector in China, scale, experience, and potential compensatory risk are the most important indicators of competence or performance capability of individual credit guarantee companies. We find that the current situation of the credit guarantee industry in China is unsatisfactory. Well-performing companies are scarce and the gap between those ranking at the top and those at the bottom is significant.

Agent or Borrower? An Incentive of Moral Hazard with China Commercial Guarantee Company

This paper studies the behavior of commercial guarantee company in the game theory framework. Different payoff structures with guarantee company behavior for banks, borrowers, and the guarantors are formed in the presence of credit rationing. We derived and explained the surviving rule of different types of guarantee companies, and we further conclude the condition in which guarantee companies are likely to be involved in a moral hazard problem. We conclude that, in the presence of regulatory arbitrage opportunity, the guarantee company has incentive to switch its role from bank agent to the borrower, being a second-hand lender. When the macroeconomic risk is high, the switching of this role will transfer the risk back to the banks.

Transparencia de las sociedades de garantía recíproca a través de su web corporativa Análisis empírico del caso español

Although in Spain there is no law requiring companies to disseminate information through the Internet, except for those listed in the stock market, the provision of corporate information on line voluntarily through this new channel of communication is becoming increasingly necessary in all sectors of activity. From this perspective, this paper is a descriptive study on the diffusion of information online and also an explanatory one to establish the factors that determine the publication of financial and nonfinancial information in the reciprocal guarantee companies (RGC). To publicize this goal we will analyze the corporate website of the RGC members of the Spanish Confederation of Reciprocal Guarantee, which represent the majority of RGCs operating in the Spanish territory.

Research on the Risk Control Theory Based on the Matching Scale of Credit Guarantee Companies and the Significance of Guarantee Enterprise Grouplization

One of the effective ways in solving difficulties to raise capital for Medium and Small Enterprises (SEMs) is to provide credit guaranty in today’s world. This paper analyzes the defect of risk control in single credit guarantee companies, based on the analysis of the business operations of guarantee companies and the features of credit guarantee. Meanwhile, this paper does mathematical analysis on theory of risk control of guarantee companies with matching scale by using the law of large numbers, and on this basis, elaborates the necessity and significance of enterprise group. Key words: Credit guarantee; Risk control; Grouplization; Law of large numbers

Inefficiencies in the Information Thicket: A Case Study of Derivative Disclosures During the Financial Crisis

Conventional wisdom concerning the causes of the Financial Crisis posits that insufficient disclosure concerning firms’ exposure to complex credit derivatives played a key role in creating the uncertainty that plagued the financial sector in the fall of 2008. To help avert future financial crises, regulatory proposals aimed at containing systemic risk have accordingly focused on enhanced derivative disclosures as a critical reform measure. A central challenge facing these proposals, however, has been understanding whether enhanced derivative disclosures can have any meaningful effect given the complexity of credit derivative transactions.This Article provides an empirical examination of the effect of enhanced derivative disclosures by examining the disclosure experience of the monoline insurance industry in 2008. Like AIG Financial Products, monoline insurance companies wrote billions of dollars of credit default swaps on multi-sector CDOs tied to residential home mortgages, but unlike AIG, their unique status as financial guarantee companies subjected them to considerable disclosure obligations concerning their individual credit derivative exposures. As a result, the experience of the monoline industry during the Financial Crisis provides an ideal setting with which to test the efficacy of reforms aimed at promoting more elaborate derivative disclosures.Overall, the results of this study indicate that investors in monoline insurers showed little evidence of using a firm’s derivative disclosures to efficiently resolve uncertainty about a monoline’s exposure to credit risk. In particular, analysis of the abnormal returns to Ambac Financial (one of the largest monoline insurers) surrounding a series of significant, multi-notch rating downgrades of its insured CDOs reveals no significant stock price reactions until Ambac itself announced the effect of these downgrades in its quarterly earnings announcements. Similar analyses of Ambac’s short-selling data and changes in the cost of insuring Ambac debt securities against default also confirm the absence of a market reaction following these downgrade announcements. Following a qualitative examination of how investors process derivative disclosures, the Article concludes that to the extent the complexity of CDOs impeded informational efficiency, it was most likely due to the generally low salience of individual CDOs as well as the logistic (although not necessarily analytic) challenge of processing a CDO’s disclosures. Reform efforts aimed at enhancing derivative disclosures should accordingly focus on mechanisms to promote the rapid collection and compilation of disclosed information as well as the psychological processes by which information obtains salience.