Interest Credit Research Articles

On the issue of maintaining a balance of private and public interests in satisfying creditors’ claims in bankruptcy proceedings

The article analyzes the problems of satisfying creditors’ claims in bankruptcy proceedings. In the context of a conflict of interests of creditors caused by insufficient property of an insolvent debtor, the search for an optimal model for satisfying their claims was carried out. Common conflict situations arising between pledgees and authorized bodies have been identified. For example, in cases of satisfaction of claims for mandatory payments secured by the seizure of a taxpayer’s property. The tax authorities, as current creditors, also file claims for payment of income tax, property tax and land tax. The legal positions of the Constitutional Court of the Russian Federation are analyzed. It is concluded that it is necessary to eliminate the imbalance of interests of collateral creditors and authorized bodies, and restoration of the security function of the pledge.

채권자취소권 개정방향에 관한 담론

In this paper, I propose a general direction on how to design a new creditor's right to revoke in preparation for the Ministry of Justice's future work on the revision of the Civil Code regarding the creditor's right to revoke. The Ministry of Justice's 2014 Draft of the Civil Code Amendment(hereinafter referred to as the “2014 revised draft”) proposed 11 articles (10 in the Civil Act and 1 in the Civil Execution Act) related to creditors' right of revocation, and sought to promote balanced discipline among creditor, debtor, beneficiaries, and other creditors. However, the 2014 revised draft is completely silent on the problem of logical inconsistency that arose from the combination of the theory of relative nullity, Article 407, and the compulsory execution that restores the registered title to the debtor's name after the cancellation of the fraudulent transfer. Therefore, if it is revised as in the 2014 revised draft, it seems impossible to solve the fundamental problems surrounding the existing creditor's right of revocation system. Accordingly, I have proposed the following opinions. First, it is desirable that the creditor's right of revocation be operated as a system to protect the interests of individual creditors who have filed cancellation suits. Regarding the effect of cancellation, it will be necessary to decide whether to abandon the concept of ‘cancellation’ of fraudulent transfer like Germany and France and adopt a legal structure that only restores the possibility of compulsory execution of the object of the fraudulent transfer by the creditor who has filed the cancellation suit, or to modify the meaning of cancellation according to the responsibility theory view in Korean or Japan so that cancellation has the effect of nullity in terms of liability law, and to maintain the concept of ‘cancellation’ of fraudulent transfer. Whichever way we take, I think it would better than the current case law’s ‘relative nullity theory’ system, which is ambiguous from the very concept itself. If the creditor’s right of revocation is operated as a system to protect the interests of individual creditors who have filed cancellation suits, the effect of cancellation will naturally not extend to creditors other than the creditor who has filed the suit, and therefore it is desirable to delete Article 407. However, if the legislative decision is made to operate the creditor's cancellation right system as a system to protect the interests of all creditors, as in the 2014 revision, it is logical to abandon the relative nullity theory and completely change the effect of cancellation to apply to the debtor or other creditors, as in the 2017 Japanese revised Civil Code, or to construct a theory according to the Japanese theory of responsibility, which holds that if a fraudulent act is cancelled, the effect of transferring the liability property becomes null and void, and this occurs universally and applies to all creditors. The method of restoration and enforcement after cancellation of a fraudulent act must be changed. There was no change in this regard in the 2014 revised draft, and I think this is the biggest problem. Most of the problems surrounding the creditor's right of revocation system can be resolved if the creditor files a suit against the beneficiary or successor, obtains a revocation judgment, and then directly enforces the object of the fraudulent act while it is in the possession of the beneficiary or the successor. In academic field in Korea and Japan, there is a prevailing opinion that the method of compulsory enforcement can be changed by revising the Civil Code or the Civil Execution Act or by utilizing the current system without necessarily establishing a new system such as the compulsory execution lawsuit in Germany, and I agree with this.

PENGARUH HARGA JUAL DAN SYARAT KREDIT TERHADAP PENJUALAN KREDIT PT HOME CREDIT INDONESIA CABANG SURABAYA

As the economy changes after the pandemic storm in all countries, especially Indonesia, many parties move very quickly, everyone must survive to survive, from national business corporations to small and medium class MSMEs to develop their businesses. The development of the business provides significant benefits for the company or business, which has an impact on increasing company profits. The company's goal is to sell goods to consumers and users both directly and digitally, so it is necessary to carry out effective and efficient sales. Sales usually consist of sales of goods and services, both cash and credit. Research conducted by Syarial, (2015), shows that the results of his research have a positive and significant effect on purchasing decisions, in this case researchers purchase using credit sales. The rise of credit sales in various regions both online and offline, many people from various walks of life to follow the latest trend. Technological advances have made many digital platforms appear. One that is widely used because of the convenience provided is the sales application. Because of this phenomenon, researchers are interested in examining Credit Sales at PT Home Credit Indonesia Surabaya branch studied through credit prices and credit terms. The purpose of this thesis is to find out the selling price, credit interest rate affects the credit sales of PT Home Credit Indonesia Surabaya branch, Validity test, reliability test, multiple linear regression statistical test, F test, and t test are used in this influence research, a non- experimental quantitative research method. The results found that credit sales (Y) were influenced by selling price (X1) and credit terms (X2), and both variables were influenced by credit sales (Y) if tested simultaneously.

Estimating the market share of electric motorcycles: A system dynamics approach with the policy mix and sustainable life cycle costs

Introducing electric vehicles is critical to maintaining air quality and reducing carbon emissions. The Indonesian government has issued several regulations to stimulate the diffusion of electric vehicles. This research attempts to forecast the electric vehicle market share, especially electric motorcycles, by involving the policy mix and sustainable life cycle costs. We propose a system dynamics approach that takes into account a policy mix including 0% down payment without credit interest subsidies, tax abolition, expansion of charging station network, and sustainable life cycle costs, i.e., total cost of ownership, social, and environment. The system dynamics model has four modules: the electric motorcycle cost, the conventional motorcycle cost, the economy module, and the consumer market. The simulation results show that the electric motorcycle market share will increase positively in 2021–2030, reaching 5.7% in 2030. Based on the scenario simulation results, providing more charging stations and vehicle tax abolition can significantly boost the market share of electric motorcycles in Indonesia. The study provides valuable insights for policymakers in formulating more appropriate policy instruments to promote electric vehicle diffusion in Indonesia.

Study on the Motivation of Corporate Financial Fraud Based on Fraud Risk Factor Theory based on the Acquisition of Longxin Technology by Connie E&M

Financial fraud has always threatened the healthy development of the capital market. Financial malpractice in M&A can cause huge losses to the acquirer and even face the risk of delisting, jeopardizing the legitimate rights and interests of enterprise investors and creditors. Mergers and acquisitions as one of the important forms of enterprise development and expansion, and enterprises as an important pillar of economic growth are of great significance to the stable development of the capital market. The correct M&A of enterprises can form a synergistic effect and improve the competitiveness of enterprises in the fierce market competition. This paper, with the help of fraud risk factor theory, explores the causes of corporate financial fraud in mergers and acquisitions, how to establish an effective preventive mechanism for financial fraud in mergers and acquisitions, and how to reduce the current capital market to minimize corporate financial fraud and reduce its impact and other issues to put forward proposals.

Дефиниция понятия баланса интересов кредиторов и должника в деле о несостоятельности (банкротстве)

The work is devoted to the definition of the concept of balance of interests of creditors and debtor in bankruptcy proceedings. It is necessary to determine the definition of the balance of interests of creditors and the debtor in a bankruptcy case, taking into account the importance of this balance regarding constitutional and civil principles, and the prevention of abuse of law. It is determined that the balance of interests of the persons involved in the case represents the proportionality of rights and obligations at the stage of bankruptcy established by law, which does not allow violating the rights and legitimate interests of the other party established by law. As a result of the conducted research, based on the opinion of scientists and the provisions of the Constitutional Court of the Russian Federation, the author proposed a concise definition of the concept of balancing the interests of creditors and the debtor in a bankruptcy case.

Good conscience of the debtor in the bankruptcy procedure: legal and moral and psychological dimension

At the current stage, the issue of bankruptcy of legal entities has been thoroughly worked out, has clearly defined and justified legal and economic mechanisms, works effectively not only in the world, but also in Ukraine. However, the issue of bankruptcy of individuals remains unresolved. The main problem is the ethical and psychological aspect of the bankruptcy procedure of an individual. Here there is a conflict of interests between the protection of the rights and freedoms of an individual as a citizen and the protection of the rights and interests of creditors. The article examines the good faith of the debtor in the bankruptcy procedure, focusing on legal and moral and psychological dimensions. The bankruptcy procedure is a complex process that affects both the legal position of the debtor and his psychological state. The good faith of the debtor is defined as a key principle that ensures the fairness and efficiency of bankruptcy procedures. The legislative framework that regulates the good faith of the debtor in Ukraine is analyzed, in particular the requirements for the behavior of the debtor at various stages of bankruptcy. The legal consequences of unscrupulous behavior are considered, such as the possibility of bankruptcy rejection or the imposition of additional sanctions. The moral and psychological dimension of good faith includes ethical norms and principles that influence the debtor’s decisions and his interaction with creditors and other interested parties. The psychological pressure experienced by the debtor during the bankruptcy procedure can affect his ability to act in good faith, so it is important to take this aspect into account when evaluating his behavior. The article also explores the socio-psychological consequences of bankruptcy, such as stigmatization and loss of reputation, which can affect the debtor’s integrity. Proposals are made to improve legislation to ensure greater transparency and fairness in bankruptcy procedures, as well as recommendations to support debtors on a psychological level. The changes proposed by the authors of the article will contribute to increasing the level of good faith of debtors, ensuring a fair and humane approach to solving bankruptcy problems.

Corporate Viability and the Duty to Consider the Interests of Creditors in the United Kingdom and the European Union

This article contrasts the recent UK Supreme Court case of BTI 2014 LLC v Sequana and the EU Preventive Restructuring Directive, which both examine the duty of directors to consider the interests of the company’s creditors once the company entersfinancial distress. This article firstly contrasts how the two frameworks trigger creditor consideration and what they require of directors. Then it explores how both frameworks utilise the concept of corporate viability either as a framing device for creditor paramountcy or as an independent guide for directorial judgment. The article details how deference towards directorial judgment is facilitated in either framework, particularly in relying on the commercial nature of corporate viability as distinguished from legal insolvency. It also explores how corporate viability positions the interests of different interest holders, namely in how it affects the balance between the interests of shareholders and creditors. The article furthermore explores the extent to which the consideration of broader stakeholders is facilitated by allowing directors to emphasise the importance of corporate viability. Finally, the article explores the broader implications of corporate viability and the creditor duty from the perspective of entity-based theories of corporate form and entity maximisation approaches towards the company’s interests.

Immovable Castles, Movable Companies and the Real Seat Criterion in Troubles (Edil Work, C-276/22)

With Edil Work C-276/22, a decision of 25 April 2024, the Court of Justice of the European Union has solved questions concerning the freedom of establishment of companies incorporated in a certain Member State but operating exclusively in another Member State. The Court holds that the Member State of operation may not require concurrent or exclusive application of its company law, other than in cases where overriding mandatory provisions are at stake, such as for example rules protecting interests of creditors, workers, and minority shareholders.

Granting analysis of the credit financing of the platform-type highway transportation supply chain.

Against the background of digital development, this study's research object is the platform-based highway transportation supply chain. It also analyzes two modes of supply chain financial credit financing, namely, upstream, and downstream enterprises of the platform, and network freight platform as the main financing body. Notably, the financial provider sets up a transaction credit based on the principle of business truth, and closed-loop transactions, determine the upper limit of the credit line based on the principle of financing self-compensation, build the expected profit maximization model, and establish the optimal credit line. Combined with the Highway Freight Index and Logistics Prosperity Index, the dynamic early warning value is established for the financing mode, where the platform as the main financing body. Through numerical analysis, the credit line and expected profit increase with the transaction credit, expected freight volume, and credit interest rate under the two modes, and the increase deriving from the credit interest rate is more significant. Finally, this paper describes the two-dimensional credit matrix of the financing subject via transaction credit and credit interest rate, which provides an intuitive credit reference for financial institutions to conduct the credit financing of the platform-based highway transportation supply chain.

Friendly Boards and the Cost of Debt

For a sample of public bond issues by U.S. firms between 2000 and 2019, sourced from the Securities Data Corporation (SDC) New Issues database, we examine the relationship between CEO-friendly boards and the cost of debt. To explore this relationship, we construct proxies for board friendliness based on social connections sourced from the BoardEx database, classifying a board as friendly if it includes at least one outside director who has a social connection with the CEO. Our regression analysis reveals a negative association between CEO-friendly boards and yield spreads and a positive association between CEO-friendly boards and credit ratings. These effects exist after controlling for firm and bond characteristics based on prior literature. The results are robust to an alternative measure of board friendliness and potential endogeneity. These findings imply that firms with a CEO-friendly board experience a lower cost of bond financing. This supports the argument that effective communication between CEOs and directors contributes to the enhancement of creditor interests. Our results carry a practical implication that firms heavily reliant on debt should actively employ CEO-friendly boards. Despite the burgeoning literature on CEO-friendly boards, there is a lack of research on the relationship between CEO-friendly boards and the cost of debt. Our results fill this gap in the extant literature on CEO-friendly boards.

독립성을 상실한 구분건물 담보물의 채권자 보호 방안 연구

Our Constitution stipulates that all property rights that have economic value are guaranteed under public and private law. Nevertheless, the current Civil Execution Act has institutional shortcomings in safeguarding the interests of creditors, and the auction procedures for Sectioned Buildings, for which confirming independent boundaries is challenging, tend to infringe on or damage creditors' rights. The Civil Execution Act states that for Sectioned Buildings for which verifying independent boundaries is difficult, the auction application shall be dismissed or the auction commencement decision shall be canceled, both at the application stage and after the auction commencement decision has been issued. Furthermore, it provides the option to revoke the sale approval decision even after a bid has been placed and the sale approval decision for the buyer has been finalized. There have been numerous cases in which the auction application was terminated or, despite the auction proceeding and a bid being made, the winning bidder could not acquire ownership. Due to the recent establishment of Articles 1-2 of the Condominium Act, which aim to prevent unstable situations in the ownership of Sectioned Buildings and protect people's property rights, the number of cases in which auctions have been recognized or permitted has noticeably increased. However, it is evident that auctions are not permitted in several cases. Therefore, to safeguard the property rights of creditors in cases involving Sectioned Buildings, where it is challenging to confirm independent boundaries, a forced bankruptcy system is suggested under the framework of the Debtor Rehabilitation and Bankruptcy Act. This system allows creditors to apply for a debtor's bankruptcy as a means to enforce their property rights.

The Implementation of Holt-Winters Method to Forecast the Loan Interest Rate of Indonesia

This study aimed to anticipate the rupiah loan interest rates at commercial banks in Indonesia by employing the Holt-winters method. This study employs data on rupiah loan interest rates from commercial banks in Indonesia. The data comprises a time series element, with monthly intervals spanning from January 2013 to November 2015, which was obtained from the official website of BPS Indonesia. The study demonstrates that the Holt-winters technique yields the most accurate forecasts, as indicated by a Root Mean Square Error (RMSE) of 0.19720630. The parameters alpha, beta, and gamma, set at 0.6, 0.6, and 0.6 respectively, constitute the optimal configuration for this method. These results indicate that the Holt-winters method is an effective tool for capturing seasonality, trends, and patterns in credit interest rate data, making it a reliable choice for future loan interest rate forecasting. The findings of this study are expected to significantly contribute to strategic decision-making in the banking sector, particularly in risk management and loan interest rate strategy determination.

Creditor Protection and Enterprise Earnings Management —A Test Based on Bond Covenants

ABSTRACT Excessive earnings management can significantly reduce the quality of accounting information, consequently harming the interests of investors and creditors. In the Chinese market, research on earnings management focuses primarily on corporate governance and external environmental viewpoints, with limited literature addressing debt governance. This paper centers on exploring the protective impact of bond covenants, revealing their inhibitory effect on both accrual and real earnings management through two potential mechanisms (agency conflicts and risk-taking). Furthermore, this study conducts a heterogeneous analysis from various perspectives, identifying how bond covenants influence earnings management in different ways and underscoring the moderating role played by underwriters. The findings offer theoretical insights for the development of a high-quality information disclosure system.

An Investigation of the Determinant Factors of Indonesia Domestic Investment: An Analysis of the Q1 2010 to Q4 2018 Period

The aim of this research is to investigate the impact of inflation, credit interest rates, exchange rates, and labor on domestic investment (PMDN) in Indonesia. Using secondary time series data from government institutions such as the Investment Coordinating Board, Central Statistics Agency, and Central Bank of Indonesia, the research examined these macroeconomic variables from Q1 2010 to Q4 2018. Quantitative data analysis, including multiple regression and models such as Autoregressive Conditional Heteroscedasticity (ARCH) and Generalized Autoregressive Conditional Heteroscedasticity (GARCH), was used to determine the relationship between the independent and dependent variables. The findings indicate that exchange rates and labor have a positive as well as significant impact on PMDN, while credit interest rates have a negative and significant impact. The effect of inflation on PMDN was found to be negative and insignificant. The research concludes that using the best model of E-GARCH, inflation, credit interest rates, exchange rates, and labor affect PMDN in Indonesia.

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

As the expected cost of conservation agriculture (CA) inputs becomes an issue for farmers, financial institutions (FIs) play an essential role in promoting CA, a set of agricultural management practices with multiple positive effects. This research aimed to determine influencing factors, to rank challenges, and identify mechanisms for farmers to access agricultural credit for adoption of CA management practices in Cambodia. It was administered by conducting a survey of 242 randomly selected households for face-to-face interviews and conducting key informant interviews from purposive samples of 28 participants in Battambang and Preah Vihear provinces. The results indicated that influencing factors, including the family, adult labor and total farm size, had a positive relationship with farmers’ accessibility to agricultural credit, whereas age was negative. However, education year, farm size for main crops, on-farm income and farm experience were not significantly associated. High interest rates were the significant first-order challenge ranked, followed by document process complication, limited agricultural credit information, limited collateral security and a few other challenges. Support and improved process mechanisms to enhance credit accessibility are required to engage with multiple stakeholders, including farmers, FIs, non-government organizations (NGOs) and government officers. There has been a reduction in agricultural credit interest rates and incentives for importing CA inputs by the government, while provision of information support for agribusiness plans by NGOs which have implemented development project activities were considered as the main support mechanism. An improved process mechanism at the farmers’ level needs to include access to credit with low interest rates and a straightforward documentation process, whereas the FI level requires a business plan for lending decisions. It is evident that high lending rates hinder access to agricultural credit and the improvement of support and improved process mechanisms are necessary to better promote CA practices among farmers in Cambodia.

Strategi Pengembangan Usaha Jahit di Gampong Meutia Kota Langsa Ditinjau Menurut Ekonomi Islam

This research was conducted with the aim of determining the strategy of sewing business development in Gampong Meutia Langsa City using qualitative methods. The research location in this study is on sewing entrepreneurs in Gampong Meutia, Langsa City. The subjects studied were 6 sewing entrepreneurs and village equipment in Gampong Meutia. Data collection techniques are carried out by observation, interviews and documentation. The technical data analysis used is descriptive analysis by going through the data collection stage through the data reduction stage, presenting data and drawing conclusions. The results of this study show that the sewing business in Gampong Meutia Langsa City is run by the business owner himself, where the business owner is fully responsible for management. The management of the sewing business in Gampong Meutia is quite good and the development of the sewing business in Gampong Meutia has developed quite well compared to neighboring villages, although there are still obstacles in several fields. The obstacles faced by sewing entrepreneurs in Gampong Meutia Langsa City are obstacles in capital, namely the difficulty of obtaining additional capital, obstacles in labor, namely the owner difficulty in obtaining labor, lack in the number of workers and lack of discipline of employees and obstacles in the use of machines. The business development strategy is to ask for additional capital and the government seeks this assistance and facilitates the community so that they succeed in getting the assistance through MSME assistance by making proposals, where the proposals are made as well and attractive as possible. And promote their efforts using social media. However, in terms of getting additional capital, these entrepreneurs still use conventional banks that apply credit interest rates. While the kerdit flower in Islam is included in riba which is prohibited by the Shari'a.

ANALISIS DAMPAK IMPLEMENTASI STRATEGI CROSS SELLING PADA PENAMBAHAN DANA PIHAK KETIGA SERTA PENAMBAHAN JUMLAH NASABAH FUNDING DI PERUMDA BPR BANK DAERAH KOTA MADIUN

The main objective of this research is to investigate how the cross-selling strategy is applied and how it affects the collection of third party funds. Second, examine the obstacles to cross selling strategies in raising third party funds. Third, look into how the cross-selling approach is being used and how that is affecting the amount of money raised for third party funds. This study uses a field research methodology and is qualitative-descriptive in nature. Madiun City Regional Bank, People's Credit Bank (BPR), and Regional Public Company (Perumda) served as the research subjects. This study's objective is to develop a cross-selling strategy that will boost third-party funding. Documentation, interviews, and observation are methods used to collect data. The three stages of the data analysis procedure were data reduction, data display, and conclusion drawing. To determine the veracity of the data, take into account using source triangulation. First, the research's findings indicate that the Tabunganku Product becomes the primary account when cross-selling is implemented. Furthermore, you can get other services, namely having more than one savings product account, lower credit interest, receiving deposit interest and disbursing credit through your Tabunganku account. Second, the obstacles are competition with conventional banks, savings cannot be disbursed at any time, and lack of communication with customers. Third, the impact that arises is customer loyalty, increasing income, reducing time and costs, and maintaining public trust in using third party fund products.

Недействительность части сделки как результат оспаривания соглашения об уплате алиментов в деле о банкротстве гражданина

This paper examines minors' rights to maintenance, parents' alimony obligations and their right to a reasonable amount of alimony versus bankruptcy creditor rights to fulfilment of obligations by insolvent alimony payors. Based on the analysis of judicial practice, the article considers the issue of challenging the alimony agreement concluded by the debtor in the personal bankruptcy case. The author studies the legal positions of arbitration courts and the Russian Supreme Court cases where the interests of children take priority over the interests of bankruptcy creditors in the challenges of alimony agreements.

Parent-Subsidiary Responsibility in the Development of Multinational Enterprises

As a core subject in the current international market economic activities, the parent-subsidiary company not only plays an important role in the development of multinational enterprises themselves, but also plays an important role in the bonding of cooperation between countries. However, the limitations of the traditional corporate law governance model, especially the limited nature of liability, make multinational corporations in the actual operation of many problems. Among them, the issue of responsibility sharing between parent and subsidiary companies is still one of the core issues that need to be continuously focused on at this stage, because the assumption of responsibility by parent and subsidiary companies not only has an important impact on the development of the international market economy, but also pays direct attention to the acquisition of creditor's interests. Through comparative research, historical research, and other research methods, the issue of responsibility-sharing among parent-subsidiary companies of multinational enterprises will be studied. The role of the corporate veil piercing system in responsibility-sharing will be analyzed based on domestic and foreign legislation and judicial experience. The aim is to identify a responsibility-sharing approach that promotes the development of multinational enterprises while safeguarding the interests of creditors.