Modern Finance Research Articles

ІНВЕСТИЦІЙНІ СТРАТЕГІЇ ЕКОІННОВАЦІЙНИХ КОМПАНІЙ В СВІТОВІЙ ЕКОНОМІЦІ

The article emphasizes that global eco-innovative companies not only actively develop internal competencies based on financing their own research and development, but also attract large-scale external financing for their green R&D, while implementing a number of investment strategies. The author identifies the most promising of them, which require additional study from the point of view of understanding the prospects of applying such strategies for Ukrainian eco-business. An analysis of the investment strategy of attracting capital of accredited institutional investors, which is considered the most effective investment strategy of eco-innovative companies in scientific circles, has been carried out in the article. The main advantages of this strategy are low market entry barriers, wide opportunities to save transaction costs, and a significant increase in own liquidity and the raising the scale of the capital, thanks to their institutional sources. The author claims that the modern financing of eco-innovations by accredited institutional investors has led to the development in global coordinates of a qualitatively new field of scientific and technological activity related to the institutionalization of the process of circulation of capital assets on the global market of green innovations. The venture financing as another effective investment strategy of eco-innovative companies has been characterized in the article. The author has emphasized the completion of the process of forming a mature model of the climate technology market in the structure of the global venture market. The growth of the average value of deals has been defined as a specific feature of the modern stage of venture capital investment of climate start-ups. It has been proven that the international competition between investors for climate technologies has intensified significantly. “Mergers and acquisitions” strategy is characterized by the author as one of the effective investment strategies in ensuring the concentration and centralization of capital, strengthening financial stability, as well as increasing competitive positions in various segments of the global market of green innovative developments. It has been proven that mergers and acquisitions allow eco-innovation companies to achieve not only significant savings in financial costs for green technological developments, but also to significantly reduce the time lag for the development of green technological innovations. Finally, the article analyzes the investment strategy of creating green fundraising and crowdfunding platforms. The high efficiency of this strategy in terms of finding and attracting investment resources in the green innovation sector, which is carried out through the channels of so-called "crowd funding", has been proved.

The Problems with Financializing the Economy

While a well-developed financial system can contribute to economic prosperity, if it grows too large or is inadequately regulated it may actually cause more harm than good – adversely affecting socio-economic outcomes and people’s wellbeing. This is one of the key conclusions of a recent survey of the literature in which we document the role of the financial system in society’s development. We find that the trend towards financialization, observed over the past four decades, has gradually transformed modern finance from ‘hero’ to ‘villain’.

The Mysteries of NFT Taxation and the Problem of Crypto Asset Tax Evasion

Cryptocurrencies have long captured the attention of the financial world, revolutionizing how the world does business by providing virtually costless transactions. More recently, however, a new digital token has taken its place on the world stage. Known as NFTs, non-fungible tokens have allowed for the reinvention of modern finance infrastructure consisting of sophisticated trading and loaning systems for different asset types. Despite cryptocurrencies’ and NFTs’ novelty and popularity, they are not immune to the U.S. Tax Code. The Internal Revenue Service (IRS) has provided guidance on the tax framework of cryptocurrencies, but the taxation of NFTs is still relatively unclear, leaving taxpayers to rely largely on the cryptocurrency tax framework to address NFT taxation. The cryptocurrency framework, however, does not fully address all issues that may arise in NFT taxation. Virtual currencies have drawn much excitement, sparking the popularity of cryptocurrencies and NFT investors but have also drawn the scrutiny and worry of tax regulators. The U.S. has been experiencing a significant tax gap between the money taxpayers make from the transactions of these crypto assets and the amount of taxes paid to the IRS. Specifically, to blame for this tax gap are the novelty of these crypto assets, their inherent anonymity, their cross-border nature, and their independence from governmental or financial institutions. This article discusses the taxation of cryptocurrencies, its influence on a potential NFT-specific tax framework, why crypto assets are the weapon of choice for tax evaders, and the possible solutions the U.S. can pursue to remedy crypto asset tax evasion.

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Institutional Investors in the Green Transformation of Modern Financial Markets

A wide range of economic, social, environmental, demographic problems is characteristic of the modern world and is focused on achieving the goals of sustainable development, uniting the efforts of civil society, in which the main actors of socio-economic life are involved: political and economic elites, consumers and producers of the entire aggregate of material and intangible goods and services. The world community has come to the concept of sustainable development and the transition to a "green" economy, which combine the achievement of self-sustaining economic growth with the provision of social protection of the population and minimization of negative impact on the environment. Today, institutional investors play a system-forming role in the implementation of this triune development strategy. The purpose of the article is to identify the increasing significance of institutional investors in the “green” socially responsible transformation of the global and national financial markets in the implementation of the UN SDGs in a number of developed and developing economies. Objectives, findings and discussion of the study: consideration of the prerequisites for analyzing the role of institutional investors in achieving the UN SDGs; global investors’ certain initiatives assessment that have been proposed as a paradigm for socially responsible and infrastructure investment at the national and international level; determination the role of various green institutional investors (quasi-public sector, banks, sovereign welfare funds, with the special attention to the insurance companies’ and pension funds' role in green investments process) in the implementation of the green transformation of financial markets in some countries and regions of the world economy; identification the importance of the main investment channels of institutional investors in green infrastructure in the light of types of investment (direct, indirect mixed), kinds of investments (corporate, project, investment-target), general characteristics (description, advantages, scaling, profitability).

Modern Financial Development during Natural Disasters: Evidence from the Early 20th Century China

Modern Financial Development during Natural Disasters: Evidence from the Early 20th Century China

Money Attitudes and Personal Finances During the COVID-19

Background: Most of the research relates to previous major financial crises. The current coronavirus crisis is still ongoing, so the current analysis focuses primarily on people’s current preferences based on surveys.Research objectives: This work focuses on the analysis of the financial preferences of the group of people living and working in the Małopolskie Voivodeship in the last year. The choice of the form of makingpurchases, payments as well as savings and investments in the face of limitations caused by COVID-19 were analysed.Research design and methods: The adopted analytical-synthetic method is calculated to signal specific areas raising ethical doubts. Their exemplification leads to an attempt to define the key problem of modern finance, which is breaking away from the foundation of ethical values and, consequently, abandoning the common good as the social goal of all human activity.Results: The obtained results do not allow for the conclusion that in the analysed group, money attitudes significantly differentiate the financial choices of respondents during the restrictions related to COVID-19. The analysis of other factors related to the preferences of financial management allows for partial confirmation of hypothesis regarding the interest in online shopping and non-cash forms of payment has increased.Conclusions: The papers proved that the restrictions related to the coronavirus resulted in a significant increase in interest in new technologies, online shopping and modern payment methods.

The Crisis and the Social Ethics of Finance. Selected Issues

Background: The crisis of modern finances is part of a longer process of lack of correspondence between economic life and the common social good. It fits in with the diagnosis of an anthropological error underlying contemporary economic activities.Research objectives: The aim of this article is to highlight selected moments related to the failure of the financial system in the context of ethical requirements that should be included in the functioning of this system. Their omission ultimately leads to serious individual and social damage, including the undermining of the freedom foundations of all economic decisions, including in the field of finance.Research design and methods: The adopted analytical-synthetic method is calculated to signal specific areas raising ethical doubts. Their exemplification leads to an attempt to define the key problem of modern finance, which is breaking away from the foundation of ethical values and, consequently, abandoning the common good as the social goal of all human activity.Results: The literature cited in the study, mainly in the area of the broadly understood ethics of economic life, supports its basic thesis about the key importance of ethical values in the process of avoiding eco-nomic crises.: The preseConclusionsnt text is therefore intended to recall the meanings of spiritual goods in the context of the financial crises, and the truth that, in fact, on the spiritual level does a real human encounter and a real multiplication of goods take place

Design and application of agricultural guarantee digital system platform Design and application of agricultural guarantee digital system platform

It is obvious that the modern agriculture needs the support of modern finance. The agricultural credit guarantee system, is an important means to promote the financial capital into the agriculture industry, and to solve its financing difficulties and its high cost. The designing and application of agricultural guarantee digital system platform will not only be beneficial to accelerate transformation and promotion of the mode of agricultural development, but also be positive significance on the steady growth, promoting the reform, restructuring and livelihood. This paper summarizes the relevant literatures on agricultural guarantee system, designs and develops a set of agricultural guarantee digital system platform based on the application of blockchain and big data technology, and finds it achieves a lot of benefits and good effects based on the practice in China.

What digital banks can learn from decentralised finance

Although digital banking has improved upon the traditional banking model, it could do more to revolutionise modern finance. Decentralised finance (DeFi) looks to make banking more accessible and more flexible for today’s global population. Banks should look to DeFi to discover ways to improve their own offerings. In this paper we outline the elements of DeFi we feel would be most beneficial if they were incorporated into digital bank offerings and what the potential benefits could be.

Financial Modernization Act - Enterprise value and Reputation

Abstract: The Financial Service Modernization Act of 1999 has been crucial to the financial service industry ever since its creation. There are two primary reasons this Act was mandated to aid the financial service industry- the merger/barrier reason and consumer privacy reason. This paper evaluates whether this policy has achieved this object and how the effect the policy has had on the financial service industry compares to the non-policy effect on wholesale trade industry, retail trade industry and service industry. This paper finds that this policy is one of the significant reasons, If not the primary reason, for the increase in the Enterprise Value (EV) of firms within the financial service industries over the industries. Furthermore, the findings suggest that customer complaints may have lessened within the financial service industries more than Wholesale and Retail trade industries but not the service industries.

A Quantitative Analysis of Value-at-Risk based on Two-factor Pricing Model and GARCH Model

Value-at-risk has become the main instrument for the measurement and management of financial risks. With innovative construction of multi-level capital market system and gradual improvement of functions of financial system in China, financial risks demonstrate some new uncertainties. With regard to quantitative analysis and the management of risks in Chinese financial market, adoption of some methods for quantification of value-at-risk is of greatly importance in the fields of both theory and practice. The constant improvement in research of theory and practice concerning financial development gives birth to all kinds of new instruments for measurement and management of financial risks, among which value-at-risk is a common new instrument applied in measurement and management of modern finance. In this paper, an empirical analysis is conducted on quantification of financial value-at-risk based on Two-factor pricing model and GARCH model.

Virtual Currency as a Modern Financial Tool: Current Problems of Legal Regulation

Virtual Currency as a Modern Financial Tool: Current Problems of Legal Regulation

Modern finance theory and practice and the Anthropocene

ABSTRACT The Anthropocene, as a geological epoch, has come to be defined in terms of the variability within the Earth System’s operations as measured through various markers such as surface temperatures and CO2 emissions. These variations are generated by human activity, characterised by catastrophic processes and outcomes, and beyond any previous natural variability. This paper focuses on how modern finance theory and practice respond to one of the overflows that it has helped generate – namely, adverse anthropogenic effects such as climate change and soil degradation. Although modern finance theory and practice are capable of generating alternative socio-technical arrangements such as socially responsible investing and abatement markets to alleviate such adverse effects, these alternatives, for the very fact of their embeddedness in the financialised form of thermo-industrial capitalism, are prone to suffer from what some scholars describe as capitalism’s creative self-destruction.

Bayesian Estimation For Cox Ingersoll Ross Process

the model of term structure of interest rates are consider the most significant and computationally difficult portion of the modern finance due to a relative complexity of using techniques. This article concerns the Bayesian estimation of interest rate models. Assume the short term interest rate follows the Cox Ingersoll Ross (CIR) process , this process has several feature. In particular mean reverting and the other feature is remanis non- negative , so this is what distinguishes it from previous models. It is implement in the R programing.

Time-Varying Transmission Effects of Internet Finance Under Economic Policy Uncertainty and Internet Consumers’ Behaviors: Evidence from China

The modern finance industry is composed of not only numerous financial intermediaries but also internet-based mechanisms which are operated by mobile phone users and online consumers daily. In the coming 10 years, estimates suggest that over half of banks’ functions will likely be replaced by high-tech artificial intelligence. Given the great ongoing shifts in contemporary financial systems, the transmission effects of internet-based finance practices have introduced an important yet unaddressed empirical question on the coupling relationship between the internet finance industry and economic policy uncertainty (EPU). This paper adopts the time-varying parameter vector autoregressive model with stochastic volatility (TVP-SV-VAR) model and novel data from Alibaba Corp. to investigate this relationship. We find: First, the impact of internet-based financial approaches on EPU is greater than the reversal effect, indicating that China’s gross domestic product (GDP) is largely influenced by the online finance industry. Second, the lag impacts are time varying and become stable after 2016, corresponding to the current Chinese government’s long-term strategic plan that emphasizes maintaining the economy’s overall stability. Lastly, additional evidence shows that the online financial approaches are positively correlated with consumers’ behaviors, implying that the online finance industry is gaining its momentum when people are using e-currency rather than real cash. After all, it takes time to observe the real effect of these macro policies. With internet and information technology developing, artificial intelligence is being used in the areas of big data, credit lending, and risk control. This largely reduces the data analyzing cost for internet finance companies and makes risk control more convenient.

Industry, Firm, and Country Level Dynamics of Capital Structure: A Case of Pakistani Firms

The capital structure appears to be one of the most researched and the most controversial areas in modern corporate finance. Prior literature on determinants of capital structure has concentrated on firm and country level factors by employing static modeling. Static modeling has certain limitations, which do not allow companies to establish an optimum capital structure in line with economic uncertainty. This study makes a worthy contribution to the existing body of knowledge by filling the gap in the evolution of capital structure by employing a dynamic framework of the financial sector of Pakistan. In addition, the study brings into focus sectors’ importance in determining the firm’s financial behavior. Based on secondary financial sector data from 2006–2019, the article addresses the issues by employing two-step system generalized method of moments (GMM). The findings of the study validated the existence of dynamic capital structure across the financial sector of Pakistan and reinforced the substantial impact of sectors’ unique environment on leverage mechanism. The results are robust under alternative estimation approaches and offer useful policy implications.

Dance of Dollars: State Funding Effects on Local Health Department Expenditures.

We examined changes in total local health department (LHD) expenditures in the state of Washington following introduction of a new state funding program to support core public health services and infrastructure. We used a pre/posttest design regression model to evaluate changes in LHD expenditures 1, 2, and 6 years into the new state program. To address potential endogeneity in the model, we repeated all 3 analyses using 2-stage least squares regression. In the base case, overall spending among LHDs significantly increased with receipt of the new state funds in the first years of the program (2008 and 2009). However, those increases were not sustained over the longer term (2013). In subpopulation analyses, total LHD spending increased more among larger LHDs. Between 2006 and 2013, new state investments in core public health functions increased Washington State LHD expenditures in the short term, but those increases did not persist over time. For public health financial modernization efforts to translate into public health infrastructure modernization successes, the way new investments are structured may be as important as the amount of funding added.

Analisis Implementasi Akad Hybrid Contract Murabahah bil Wakalah di Bank BJB Syariah Kc Bogor Jabar

Financing is one of the important activities in the banking world because it is the main source of income and is one of the supporting businesses of the bank. Murabahah is a sale and purchase contract in sharia economy where the selling price of the goods is in the form of the cost of goods plus profits and has been agreed upon by both parties. Wakalah is giving or delegating the power of a job to another person as long as it does not violate the syara' law. Hyrid contract is two contracts that are united in one transaction (multi contract). One of the hybrid contracts in Islamic banks is the murabahah bil wakalah contract. Murabahah bil wakalah contract is a combination of two contracts in which the wakalah contract is used before the murabahah sale and purchase contract. The purpose of this study was to analyze how the implementation of the hybrid contract agreement on murabahah bil wakalah at Bank BJB Syariah Bogor Branch. This research uses descriptive qualitative method. The data used comes from primary data in the form of documentation and the results of interviews with staff account officers of Bank BJB Syariah Bogor Branch. The results of this study indicate that in its implementation Bank BJB Syariah Bogor Branch has complied with the DSN-MUI fatwa No.4/DSN-MUI/IV/2000 regarding murabahah. The advantages of murabahah bil wakalah are that it makes it easier for banks to process financing, is more flexible in modern financing needs and is less risky. While the weakness of the murabahah bil wakalah contract is that there is often misuse of funds by customers, such as the purchase of goods that are not in accordance with the RAB that has been agreed upon by the bank and the customer. With this result, Bank BJB Syariah Bogor Branch must continue to be consistent in managing sharia banking products so that the sharia economy can continue to grow and develop.

Analisis Implementasi Akad Hybrid Contract Murabahah bil Wakalah di Bank BJB Syariah Kc Bogor Jabar

Financing is one of the important activities in the banking world because it is the main source of income and is one of the supporting businesses of the bank. Murabahah is a sale and purchase contract in sharia economy where the selling price of the goods is in the form of the cost of goods plus profits and has been agreed upon by both parties. Wakalah is giving or delegating the power of a job to another person as long as it does not violate the syara' law. Hyrid contract is two contracts that are united in one transaction (multi contract). One of the hybrid contracts in Islamic banks is the murabahah bil wakalah contract. Murabahah bil wakalah contract is a combination of two contracts in which the wakalah contract is used before the murabahah sale and purchase contract. The purpose of this study was to analyze how the implementation of the hybrid contract agreement on murabahah bil wakalah at Bank BJB Syariah Bogor Branch. This research uses descriptive qualitative method. The data used comes from primary data in the form of documentation and the results of interviews with staff account officers of Bank BJB Syariah Bogor Branch. The results of this study indicate that in its implementation Bank BJB Syariah Bogor Branch has complied with the DSN-MUI fatwa No.4/DSN-MUI/IV/2000 regarding murabahah. The advantages of murabahah bil wakalah are that it makes it easier for banks to process financing, is more flexible in modern financing needs and is less risky. While the weakness of the murabahah bil wakalah contract is that there is often misuse of funds by customers, such as the purchase of goods that are not in accordance with the RAB that has been agreed upon by the bank and the customer. With this result, Bank BJB Syariah Bogor Branch must continue to be consistent in managing sharia banking products so that the sharia economy can continue to grow and develop.