Financial Model Research Articles

BBC Funding: Much Ado about the Cost of a Coffee a Week

AbstractBBC funding (the licence fee model and the funding level) has been turned into a big issue out of all proportion to the low financial stakes—equivalent to the cost of one takeaway coffee a week for the whole household, excluding those with free TV licences. This article first proposes and explores three possible reasons for all the fuss: that licence payers take the BBC for granted, underestimating the value they get from it; that the attacks on BBC funding are part of a wider ‘war’ against it, driven by commercial or political vested interests; and that at least some of the criticisms of the licence fee reflect genuine, although much exaggerated, disadvantages. The article then evaluates four alternative funding models: advertising, subscriptions, general taxation and a universal household levy. It argues that the best long‐term model would be a flat, universal household levy, with exemptions for those least able to pay, as in Germany, with the funding level set by an independent body organised by Ofcom; and that, because the licence fee is becoming harder to sustain, this new funding model should be introduced at the start of the next BBC Charter in January 2028.

The Logic of Digital Finance in the Age of Digital Economy

This paper explores the development logic, trends, and challenges of digital finance in the era of the digital economy. As a crucial component of the digital economy, digital finance has completely transformed the traditional financial services model through factors such as technological innovation, data intelligence, and personalized user experiences, paving the way for new business models and market opportunities. However, the rapid development of digital finance also faces challenges such as competition, security, and regulation. This paper emphasizes the importance of finding a balance between innovation and security in the development of digital finance and discusses the potential of digital finance in promoting financial inclusion and sustainable development. Through comprehensive analysis, this paper aims to provide valuable insights for academic researchers and industry practitioners, promoting the healthy development of digital finance.

Marketing Strategy Plan of Coca-Cola Company in the UK

Marketing is crucial to the success of an enterprise. This report is to develop a marketing strategy plan for Coca-Cola company, including seven parts: introduction, situation analysis, market segmentation, innovation, resource allocation, conclusion and recommendation. Situational analysis includes macro-environmental factors, such as policy, economy, society and technology; Industry elements like competitors, suppliers and substitutes; Internal factors, such as the strengths and weaknesses of Coca-Cola. Coca-Cola divided the market into different segments and target each segment with suitable products, which including provides Coca Cola range with different varieties for age segment (18-35); Multiple size of bottles target family size segment; Multiple bottles with different materials target income group; Sugar and calories-free drink target health-conscious group; “Christmas Celebration Bottle Bow” target specific occasion - Christmas. In terms of innovation, Coca-Cola launched new products, including Coca-Cola energy, Simply smoothie and Honest cold brew coffee. Moreover, it also developed new packaging material which is KeelClip™ and is going to replace all the plastic packaging from all can multi-packs. In addition, Coca-Cola innovated its service, which is the adding of loyalty scheme to vending machine. Coca-Cola uses financial planning model to determine the budget and other resources that should be allocated to each project, it invested lots of money into Diet coke and new packaging technology. The recommendation for the future development is expanding markets to health and food areas as well as target other age group (50-54) and introduce suitable products.

‘Safe as Houses’: Recalibrating Homeownership in Australian Retirement Planning

AbstractAustralia's longstanding culture of homeownership, symbolising stability and achievement, also impacts positive ageing outcomes across multiple domains. Recently, demographic and economic factors, such as housing affordability issues, insufficient income and barriers to the housing market, pose challenges to homeownership, with implications for retirement planning as the use of home equity to support ageing evolves. Secure housing and financial security are critical for successful ageing, necessitating flexible solutions and innovative financing models like fractional ownership. We raise awareness of the changing dynamics of retirement planning and accentuate the increasing significance of innovative housing solutions in supporting health during retirement.

School Committee Supporting Agency Model in Supporting Education Financing

Financing in the implementation of the education process becomes a benchmark for the success of each planned program. Financing is a major problem in the existing education system. This study aims to explore the Education financing model carried out by the school committee. This research uses a qualitative type of research approach conducted with a case study at SMP Muhammadiyah 1 Weleri, Kendal Regency, Central Java Province. The sampling technique uses purposive sampling, and data collection through in-depth interviews then data analysis with the help of Atlas. ti software version 8. The results of the study explained that the school committee supports education financing, including supporting agencies, funding and support, financing programs, and financing resources. As a recommendation for education financing carried out by the school committee, the financing model carried out by the school committee has proven effective in supporting education financing, can help each school program, and build good relationships between schools, communities, and stakeholders in providing financing support.

Theoretical and methodological foundations of the problem of business planning in the healthcare system

Healthcare business planning is becoming a key tool needed to ensure quality, affordable healthcare while maintaining sustainable financial models. It allows you to adapt to changing conditions, strategically allocate resources, optimize budgetary costs, and improve the availability and qualit y of medical care. Target. Scientifically substantiate theoretical approaches and study the features of business planning in the healthcare system. Results. The theoretical and methodological foundations of the problem of business planning in the healthcare system have been studied; the directions of medical rehabilitation activities in the Khanty-Mansiysk Autonomous Region are described; measures were proposed to improve business planning within the medical rehabilitation system. Conclusion. Business planning for medical rehabilitation is becoming increasingly important in the context of pressures on government agencies, changing health care delivery models and the development of the private healthcare sector.

Option pricing in the illiquid markets under the mixed fractional Brownian motion model

This paper deals with the option pricing in the illiquid markets under the mixed fractional geometric Brownian motion model with jump process. We propose a general long memory financial model, where its featuring parameters are related to demand and supply by showing also the existence of some restrictions on them. Moreover, by using the delta Hedging strategy and replicating portfolio, we obtain an integro partial differential equation (PIDE) for the option price which is solved by the spectral numerical method with suitable diagonal functions and an infinite series. In particular, by using some operational matrices and Gauss–Hermite quadrature rule, we derive a linear system of algebraic equations solved by a standard collocation method. Moreover, we study the existence and uniqueness of the solution of PIDE and prove the convergence of the numerical scheme. The applicability and efficiency of the collocation method are shown on some nontrivial numerical examples.

Affordability of Higher Education in South Africa

This article investigates why South African universities increased their tuition fees above inflation during the period 2010 to 2019 (intentionally excluding the potential distortion caused by COVID-19). The affordability of higher education is the subject of increased debate among stakeholders in South Africa. From a financial point of view, universities, as typical service organisations, should have benefited from an increase in enrolments. The main reason is that their expenses are typically period costs and are hence less affected by an increase in enrolments. However, the key findings of the study on which this article is based were that revenue increased above inflation, with tuition fees the main culprit. In turn, the reason for increased tuition fees is a significant increase in expenses. This suggests that universities did not benefit from economies-of-scale or efficiency in managing their expenses. The research makes a unique contribution to the body of knowledge by assessing why university tuition fees increased using a financial model to project budgeted revenue, expenses and tuition fees (taking inflation and growth in student enrolments into account) for 2019 using actual financial data from 2010.

Under Performance; Why Intrapreneurial Strategies and Operating Environment Matter in Fixing Performance of Public Universities in Kenya

The Kenyan government in 2023 unveiled a new funding model aimed at promoting affordable and equal access to higher education as well as breath life to public universities that would otherwise collapse due to financial challenges. Improvements in performance is seen through intrapreneurial strategies and that is the focus of this study. The unit of analysis was 20 public universities and the unit of observation was 400 participants. A combination of descriptive and explanatory research designs was used. A semi-structured questionnaire was used to collect primary data; which was analysed using descriptive and inferential statistics and content analysis. Multiple regression models were used to test the association between variables. The study found a statistically significant (β-0.620, p=0.000<0.05) and partially moderating influence of operating environment between intrapreneurial strategies and performance of public universities in Kenya. The study concluded that the operating environment moderates the relationship between intrapreneurial strategies and performance of public universities in Kenya. The study recommends that Vice-Chancellors of public universities should adopt innovativeness, pro-activeness, risk-taking and self-renewal intrapreneurial strategies with an awareness of the external and internal operating environment. as they have a significant and positive relationship with performance. The study also recommends that the Ministry of Education, Government of Kenya and relevant policy makers should institute reforms and organise forums that promote intrapreneurship adoption within the public universities to promote overall organisational performance.

İşletmelerde Stratejik Planlama ve Bütçeleme ile Finansal Modelleme Uygulama Örneği

Bu çalışmada, işletmelerin finansal tablolarının birbiri ile entegrasyonu ve böylelikle denetiminin daha kolay yapılması ve işletme yönetimine raporlanması; bu yolla gelecek dönem için alınması gereken önlemlerin önceden tespiti amaçlanmış, örnek bir uygulama yapılarak finansal modellemenin bir işletmede nasıl yapılması gerektiği üzerinde durulmuştur. Stratejik planlama doğrultusunda işletme bütçesinin yapılması, nakit akış tablosu, yatırım raporu ve raporlama tablolarının entegre edilmesi suretiyle işletme için daha verimli ve etkin kullanılabilecek ‎bir finansal modelleme ‎sistemi tasarlanıp, uygulamalı olarak anlatılmıştır. Çalışmada ilk olarak “İşletmelerde stratejik planlama” ‎kavramı ele alınıp anlatılmıştır, stratejik ‎planlama ile işletmenin GZFT/SWOT analizi ve işletmelerde bütçeleme konusuna değinilmiştir.‎ Çalışmanın amacı, işletmelerin en büyük problemi olan geleceği ön görememelerine çözüm olarak işletmelerde finansal modelleme sistemiyle gelecek dönemler için işletmenin misyon ve vizyonu doğrultusunda belirlenen hedeflerin takibinin yapılması ve yönetime rapor edilerek gerekli önlemlerin önceden alınmasını sağlamaktır. Finansal modelleme özelinde işletme bütçelerinin yönetim aracı olarak sahip olduğu potansiyel gücü göstermek de çalışmanın amaçları arasında yer almakta ve çalışmada kurgusal örnek bir uygulama çalışması yapılarak daha iyi anlaşılması sağlanmıştır.

Financing and Business Models for Scaling Up Sustainable Business Networks—Building a Circular Economy

AbstractTransition towards a circular economy (CE) requires collaboration amongst stakeholders. Sustainable Business Networks bring together different organisations to learn and disseminate CE innovations. However, without proper financing models, networks struggle to survive and attain financial independence. In this paper, we explore the different models which are used by African networks to finance their activities. The methodological approach involved nine case studies from three African countries (Zimbabwe, Kenya and South Africa) and selected regional networks. Semi-structured interviews were undertaken with key informants of the networks, and a questionnaire was sent to each network. Content analysis of networks was undertaken, and documents were assessed for each network in order to evaluate network activities under different funding regimes. The main funding models that were observed include membership subscriptions, donor funding, conference fees for network events, consultancy services, crowdfunding and selling knowledge products. The challenge of low payments of subscriptions is common in all countries, and networks devised innovative ways of generating funds such as consultancy fees for services rendered by the network. We conclude that there is still a high level of involvement of donor agencies in financing Sustainable Business Networks. However, this donor-funded approach is failing to steer networks to sustainability beyond projects and programmes which involve networking. Based on the existing literature and the information collected during the interviews, it was possible to recommend a hybrid financing model that is based in two crucial elements, (i) on country specific actors and (ii) on ownership of the network at national level.

Research on the Construction of Financial Shared Service Centers for Group Companies

With the rapid development of economic globalization and information technology, the number of global enterprises is growing rapidly, and the scale of enterprises is also constantly expanding. More and more enterprises are expanding their business overseas. The increasing complexity of business management is caused by the increase in business. The models of traditional financial management can no longer meet the development needs of modern enterprises. In order to strengthen internal control and improve market competitiveness, enterprises have begun to apply the financial shared service center model to solve problems in the development process. This article introduces the meaning, role, goals, and differences of financial shared service centers, and explores how to build a financial shared service center model. Finally, a summary is provided.

Financial Modeling and Forecasting in Corporate Finance Management

"The ARIMA, VAR, and GARCH models are examined at in this corporate finance study to see how they affect strategy planning, risk management, and choosing investments. The work explains about how statistical models can be used to guess important financial factors like how the stock market will do, interest rates, and market changes. By adding predicted future cash flows to the equation for how stock prices change, our method makes models better at predicting the future and gives businesses more accurate financial predictions. The review of the study showed that the ARIMA model is very good at guessing how much a stock will return. The VAR model fit past data very well, which means it can be used to make accurate financial forecasts. There are some doubts about how accurate the GARCH model is, but it is still useful for assessing risk because it is very good at predicting market instability. Including expected cash flows in our models improved our research by giving us a clearer picture of how the changes would impact our future investment and financial plans. The results show that mixing ARIMA, VAR, and GARCH models might help in figuring out how well a company will do financially. However, there is not a single model that works perfectly for everyone. This could help decide what decisions to make, come up with plans, and lower the risks. The results of the study helped corporate finance experts to choose better strategies. Based on the data, we need to find new ways to predict the future that can adapt to changing market conditions and help businesses succeed in the long run in an always changing circumstances."

Financial assets prediction based on ARIMA, Random Forest and GRU

As a matter of fact, financial asset prediction is a domain of great interest because of its potential to generate revenue. In reality, financial asset prediction models have evolved from basic time series analysis models to contemporarily hybrid models with the help of machine learning algorithms. To be specific, this study will introduce and analyse three popular financial asset forecasting models and their hybrids in terms of the properties they have demonstrated in the completed studies. In reality, good results have been achieved using a time series analysis method named autoregressive integrated moving average (ARIMA) for capturing linear elements. According to the analysis, in dealing with data noise and interpretability, Random Forest (RF) algorithm, a machine learning technique, produced positive outcomes. Deep learning technique gate recurrent unit (GRU) produced positive outcomes in terms of prediction accuracy. Based on the evaluations, this study indicates future research directions in the field of financial asset forecasting by analysing and organizing the characteristics of three different mainstream models.

Implementation Of Istishna 'Aqd In The Financial Investment Scheme Of Koperasi Syariah Benteng Mikro Indonesia

This research aims to examine the implementation of Istishna ‘aqd in investment financing at Koperasi syariah BMI, Ciawi branch. The issue addressed in this study is that the Istishna ‘aqd, substantively, is not an investment aqd but rather a sales aqd. Therefore, a comprehensive analysis is needed to determine the permissibility of utilizing the Istishna aqd in investment financing or to explore potential changes in the financing model or ‘aqd used. The research employs a qualitative descriptive method with data collection techniques through interviews and secondary data collection from the website, reports, and guidelines of Koperasi Syariah BMI. The study investigates how the Istishna ‘aqd is implemented in investment financing and its compliance with Sharia principles, aiming to conclude the feasibility of applying the Istishna ‘aqd in investment financing at Koperasi Syariah BMI. Based on the research findings, it is observed that the Istishna ‘aqd scheme applied in investment financing at Koperasi Syariah BMI is more aligned with the Fatwa DSN MUI No 06/DSN MUI/IV/2000 on Istishna, which involves a regular Istishna ‘aqd between two consenting parties. This approach deviates from the guidance of Fatwa DSN MUI No 32/DSN-MUI/IX/2002 on Sharia bonds, where Istishna is used in investment schemes, and is also inconsistent with Fatwa DSN MUI No 22/DSN MUI/III/2002 on parallel Istishna, as the cooperative already possesses a company engaged in building material provision. Despite the compliance of Istishna-based financing in Koperasi Syariah BMI with Fatwa DSN MUI No 06/DSN MUI/IV/2000, it is recommended that the cooperative adopt terminologies such as consumptive financing, productive financing, property ownership financing, or other terms in financing schemes involving Istishna ‘aqd. This suggestion is made due to the fact that cooperative members do not function as investors but as buyers seeking financing for development schemes such as housing, sanitation, and the provision of clean water.

CHALLENGES AND SUCCESSES IN RURAL ELECTRIFICATION: A REVIEW OF GLOBAL POLICIES AND CASE STUDIES

Rural electrification is a critical aspect of sustainable development, aiming to bridge the energy gap in remote and underserved areas. This paper provides a comprehensive review of global policies and case studies related to challenges and successes in rural electrification. The challenges in rural electrification are multifaceted and often rooted in economic, geographic, and social factors. Limited financial resources, vast and difficult terrains, and sparse population density pose significant hurdles. Additionally, socio-cultural aspects and community dynamics influence the acceptance and sustainability of electrification projects. Understanding and addressing these challenges is crucial for the success of rural electrification initiatives. On the policy front, various nations and international organizations have implemented diverse approaches to tackle these challenges. This review examines the effectiveness of different policy frameworks, exploring their impact on the speed and sustainability of rural electrification. Policies encompass financial incentives, regulatory frameworks, and technology deployment strategies, with an emphasis on fostering public-private partnerships. The paper also delves into case studies from different regions, providing insights into both successful and unsuccessful attempts at rural electrification. Examining these cases helps identify common patterns, lessons learned, and best practices that can inform future initiatives. Successful projects often involve a combination of innovative financing models, community engagement, and the integration of renewable energy sources tailored to local conditions. This paper underscores the importance of a holistic and context-specific approach to rural electrification. Global policymakers, practitioners, and stakeholders can draw valuable lessons from both challenges and successes to refine strategies and enhance the impact of rural electrification initiatives worldwide. As the world continues to strive for universal energy access, this review contributes to the ongoing dialogue on shaping effective policies and practices in the realm of rural electrification.
 Keywords: Rural Electrification, Global Policies, Renewable Energy, Energy Financing, Review.

Islamic Education Financing Models

Educational administrators need to comprehend various models of educational funding as a guide in executing educational programs. The selection of funding models will impact the policies implemented by the administrators. When administrators exercise wisdom in selecting the appropriate funding model, it will influence the policies adopted and strategic steps taken in educational development. The method employed in this writing is a literature study (library research). The research conducted reveals that there are several models such as the Flat Grant Model, Foundation Plan Model, Guaranteed Tax Base Plan Model, Percentage Equalizing Model, Power Equalizing Plan Model, Full State Funding Model, Resource Cost Model, Choice and Voucher Plans Model, and Weight Student Plan Model, each with its distinct characteristics and impacts in allocating educational funds.

Application of the Black–Scholes Financial Model to Support Adaptability as a Sustainability Strategy for Buildings: A Case Study of an Adaptable Campus Parking Garage

In many construction projects, a “green premium” must be paid to implement sustainable designs that reduce environmental costs. Design for Adaptability (DfA) is a sustainable design philosophy that facilitates incremental renewal and infrastructure adaptation, thereby delaying future demolition and reconstruction. This paper focuses on the potential economic benefits of DfA. Notably, the paper contributes to answering the following question: is the green premium paid for an adaptable design justified by the potential long-term economic benefits? A modified version of the Black–Scholes financial options model is developed and demonstrated to address this question. A hypothetical case study of a parking garage is explored. This case study compares traditional and adaptable three-level parking garages and their potential expansion to a five-level garage at a future time. The “real option value” (i.e., the economic benefit of having the option to expand in the future) is calculated and compared under various assumptions and input parameters. The selection of reasonable model parameters for a given situation and the limitations of the Black–Scholes approach for valuing adaptable buildings are discussed. The model was developed for institutional (i.e., government or university) owners who consider their buildings as a cost of doing business without a direct relationship to revenue. It is concluded from the case study that the option value from the adaptable features of the parking garage exceeds the green premium given certain conditions. The payoff is most sensitive to the green premium, construction costs, and the owner’s inflation value on future additional parking. The work contributes to an economic case for DfA as a sustainability strategy for buildings.

Correction: Including Men in a Female Financial Model: An Analysis of Informal Grassroots Financial Associations

Correction: Including Men in a Female Financial Model: An Analysis of Informal Grassroots Financial Associations

Cryptocurrency assets valuation prediction based on LSTM, neural network, and deep learning hybrid model

Cryptocurrency, a digital currency managed by decentralized networks, has gained immense popularity since the inception of Bitcoin. These digital assets, often characterized by extreme price volatility, have generated substantial interest from investors. Traditional financial models struggle to account for the unique dynamics and complexities of cryptocurrencies, prompting the adoption of deep learning techniques. This study investigates the use of Long Short-Term Memory (LSTM), Neural Networks, and Deep Learning (CNN) in predicting cryptocurrency prices. These deep learning models leverage various data sources, such as technical indicators and sentiment analysis, to gain a comprehensive understanding of cryptocurrency markets. The research evaluates the performance of these models using Root Mean Squared Error (RMSE) as the primary metric. The results demonstrate that the hybrid model, combining LSTM, Neural Networks, and Deep Learning, exhibits the highest predictive accuracy across multiple cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). However, challenges persist, such as model adaptability to unforeseen market events and data noise. Future developments may involve incorporating external factors and interdisciplinary collaboration to create more holistic valuation models. Despite these challenges, the study underscores the potential of hybrid deep learning models in enhancing cryptocurrency valuation accuracy and their relevance in risk management strategies for investors and traders.