Financing Mode Research Articles

Modeling of Multitask Principal-Agent Based on Accounts Receivable

The research work on multi-task principal-agent in supply chain seldom considered other factors. In this paper, basing on accounts receivable mode of supply chain finance, we add the financing factor of bank in multi-task principal-agent to study the incentive mechanism between the manufacturer and the supplier. First we develop an incentive model under the condition of symmetric information and work out the optimal result. Next the circumstance with asymmetric information is also discussed. Last, the effort level of supplier is discussed when the receivables business ran normally.

Bond Market Development in Bangladesh: Prospects, Challenges and Required Actions

Purpose – The purpose of this study is to focus on the present scenario of the bond market in Bangladesh and to explore prospects, challenges, and required actions to expand the market to support the growing economy and make it compatible globally. Design/methodology/approach – The qualitative research method is used for collecting and analyzing secondary data from different journals, news articles, working papers, conference papers, regulatory reports, etc. to focus on the existing bond market of Bangladesh and to find out challenges and scope for further development while recommending required actions through narrative inquiry. Findings – The bond market in this country is in a very niche phase compared to the global bond market as well as the Asian bond market, though the economy is booming. The bond market of our country is dominated by government debt securities rather than corporate debt securities. As of 2021, Bangladesh's bond market size stands at $18 billion compared to the global bond market size of $124 trillion. And compared to some East Asian and South Asian countries, the bond market size of Bangladesh is very low through percentage analysis of GDP. Study limitations – Only secondary data is evaluated and scrutinized for this study. Practical implications – For Bangladesh, the creation of the debt market is essential to build an efficient and compatible capital market. Other than the equity market, various financing vehicles need to be created and different financing modes need to be opened by the government or any other public and private concern for the development of mega infrastructural projects. Nowadays, to minimize the budget shortfall to undertake such mega projects, borrowing from the banking sector becomes essential. On the other hand, this market would also create an opportunity for investors as an alternative investment vehicle. Originality/value – This study focused on the current bond market scenario in Bangladesh and showed a comparative analysis of the bond market portfolio of our country with developed countries and other developing countries. The prospects and challenges of expanding the existing bond market and required future actions to build an effective bond market in Bangladesh are also recommended in this study.

Trends and volume of successful application of Musharakah as a major mode of financing in Pakistan: A case study of Meezan bank limited

The objective of this study is to examine the trends and volume of successful application of musharakah as Islamic modes of financing among Islamic financial institutions (IFI) and standalones Islamic branches (SAB) of conventional banks in Pakistan. This study has taken four full Islamic banks and four SAB banks, who provide their services for musharakah financing. The data set for all eight banks has been extracted from annual reports of these banks, started from 2011 to 2018 and used univariate analysis. The findings of this study indicate that Meezan bank leads in running musharakah investment portfolio from both Islamic banks and SAB of conventional banks with four hundreds and seventy two (472.45) billions rupees in total and (86.34%) percent growth in Running Musharakah portfolio annually. Whereas, bank Al-Falah leads in running musharakah investment from SAB with twenty five (25.353) billions rupees. Furthermore, Meezan bank limited (MBL) gains success in running musharakah investment as sixty seven (67.61) billions Pakistani rupees in one year among all banks operating running musharakah investment banks in Pakistan.

Contemporary Shelter in the Built Environment: A Comparative Review of Social Housing Schemes in Selected European and African Nations

Social Housing remains highly essential in providing affordable shelter in urban and peri-urban settlements. However, pressures from liberalisation, public expenditures, and privatisation continue to threaten its availability. This paper reviews contemporary social housing trends and compares Europe’s established social housing scheme to Africa’s emerging schemes. This was achieved by identifying the similarities between social housing in the UK and the Netherlands and social Housing in Nigeria and South Africa and identifying the differences between them. Relevant literature was reviewed to give a detailed but straightforward account of the Netherlands, UK, South Africa, and Nigeria based on allocation policy, target occupants, ownership scheme, mode of finance, and the challenges faced. The studies conclude that there are more similarities between social Housing in Europe and Africa than differences. However, the most fundamental difference is the type of challenges they face. The challenges observed in Europe’s social housing schemes are social problems such as segregation and bad public image. In contrast, Africa’s social housing challenges are socio-economical in terms of lack of funds, poor planning, and implementation of policies. The outcome from this study is targeted at promoting the implementation of sustainable social housing schemes at the policy level.

Research on the Present Situation, Problems, and Countermeasures of New Agricultural Business Entity Financing in the Digital Economy Era of Current China

In the era of the digital economy, the financing problems of some new agricultural business entities have been alleviated to some extent, but some business entities are still facing the dilemma of "Difficult and Expensive financing". Firstly, this paper analyzes the development status of the financing of new agricultural business entities in the digital economy era, then explains the existing problems and reasons for the financing of new agricultural business entities in the digital economy era, and establishes a SWOT analysis model. Finally, it gives some countermeasures and suggestions, such as establishing the intelligent mortgage financing mode for agricultural land, using "Blockchain+Big Data" to improve the credit information system, reducing the financing cost, and appropriately relaxing the financing conditions.

Effect of COVID-19 pandemic on women entrepreneurial sustainability: the role of Islamic microfinance institutions

PurposeThe breakout of the COVID-19 pandemic has forced governments all over the globe to bring radical changes to all walks of life. Strict lockdowns are not only adversely affecting the social, economic, and psychological wellbeing of individuals but also questioning the sustainability of most businesses. In wake of the current scenario, this study is aimed at exploring how the COVID-19 pandemic is influencing the sustainability of entrepreneurship particularly from a female perspective and further providing insights into the role of Islamic financial institutions in the sustainability of businesses during COVID-19.Design/methodology/approachThis is a qualitative study that takes social constructivism approach to study the underlying phenomenon. Semi-structured interviews are conducted to collect primary data. Secondary data are also utilized in this study to theoretically define various concepts relating to entrepreneurial sustainability. The application of thematic analysis revealed various risks associated with sustainability. The interviews reveal the ground realities and tell us about the hardships being faced by the entrepreneurs due to ongoing crises. The participants of the study also shed light on the role of Islamic financial institutions during the pandemic.FindingsThe study results revealed that it may look impossible for women entrepreneurs to halt or avoid the adverse consequences of the pandemic; however, a few female entrepreneurs strived to guard their existing portfolios with the help of Islamic microfinance institutions. Whereas, several women, especially those running home-based businesses, lost their income streams. Despite these rapid challenges, most female entrepreneurs are working on inventive online systems to sustain their business activities during the crisis. Finally, guidelines are suggested which can help achieve sustainability of the entrepreneurial startups.Research limitations/implicationsThe outcomes of this study are expedient for funding agencies, government authorities and Islamic financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during severe disasters like COVID-19. Moreover, the study is a helpful tool for women entrepreneurs to avert the worst impact of the pandemic with the help of Islamic microfinance institutions. The themes of this study help generate realistic information to appraise the strategies to create facilitating business environments that drive the women to carry out the entrepreneurial activity during any crisis like the COVID-19.Practical implicationsThe results of this study provide evidence that crisis can be anticipated up to some extent if entrepreneurs become able to take proactive decisions in case of expected or identifiable threats. The study may also help the women entrepreneurs to comprehend the serious consequences of the pandemic by shifting their mode of financing to Islamic finance. Although this pandemic is a cause of physical discomfort instead this research may encourage the female entrepreneurs not to lose heart, just find the potential opportunities for their home-based and small businesses and manage funding from the Islamic microfinance institutions.Originality/valueThe study adds to the existing literature on entrepreneurial sustainability with a particular focus on the role of Islamic microfinance institutions for women entrepreneurs' sustainability in Pakistan. Secondly, the study employs the entrepreneurial sustainability model (ESM) that, according to the best of our knowledge, has not been used by the researchers earlier to study the given research phenomenon. Thirdly, the study findings are expedient for funding agencies, government authorities and financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during disasters like COVID-19.

Financing model of New urban construction in China

With the continuous development of China's urban construction, China's urbanization rate has increased from 17.92% in the early stage of reform and opening-up to 63.89% now. At present, urban construction in mainland China has reached the present stock stage from the initial expansion stage, and more and more infrastructure has been completed. China is going to strive to create an enabling environment for people to work, live, enjoy and travel, so that government will create a greater sense of gain and create a happier and better life for the people. But a new era for the construction of the urban construction will lead to higher costs, as the stock of the real estate market has reached the age, at the same time, each region of government began to implement measures, for the most of the local government gradually out of the land within the revenue, in this case study the new era of urban construction investment and financing mode is particularly important. Local governments need to attract more social capital to participate in urban construction in the new era by updating their own investment and financing modes. This paper first expounds the background of urban construction in the new era, then analyzes the investment and financing problems existing in Local governments in China, and finally gives suggestions at the national, provincial and project levels according to the current specific policies.

Optimization of agriculture logistics supply chain financing mode based on big data analysis technology

With the rapid development of information technology, supply chain financing mode based on e-commerce platform arises at the historic moment. Starting from the background and significance of supply chain financing of e-commerce platform, this paper compares four Agriculture supply chain financing modes under e-commerce platform with traditional financing modes, constructs the performance evaluation index system of e-commerce platform by using a balanced scorecard, and makes a brief evaluation by using double fuzzy model, In order to realize the optimization design of logistics supply chain financing mode based on big data analysis technology, the practicability of the design method is verified through practical analysis.

The Risk Model of Traffic Engineering Investment and Financing by Artificial Intelligence.

This study aims to analyze the influencing factors and mechanisms of investment and financing risks in transportation projects so that regions do not restrict the transportation investment and financing risk models in all areas to achieve intelligent transportation financial risk assessment. Firstly, the investment and financing modes are studied and analyzed. According to the analysis of intellectual investment and the financing report of traffic engineering infrastructure, a traffic engineering investment and a financing model based on intelligent computing is established, which is based on artificial intelligence (AI) big data analysis technology. Secondly, the investment and the financing risk model of traffic engineering is established based on multimodal learning. Finally, the urban traffic engineering of Xi'an is taken as the research object. Based on its investment and financing data in the construction of urban roads, the risk assessment is carried out. Combined with risk influencing factors, the accuracy of the intelligent calculation in the risk assessment model is calculated. Different grades of urban transportation projects have different risks in the investment and financing of transportation projects. The results show that different levels of urban transport projects have different risks in the investment and financing (IAF) performance of transport projects. Among them, the risk index of the first-class project is the highest, reaching 0.55. The risk index of the second-class project is 0.49. The results before and after using the flow engineering IAF risk model are compared. In the test results of traffic engineering risk, all target risks did not increase after the AI-based traffic engineering IAF is tested. The model test results for credit risk and financial risk are the highest at 70 and 60, respectively. Combined with the actual urban development situation, this study can provide investment and financing risk models for urban transportation projects in different regions and provide a reference for the resource control of transportation projects. This study uses AI to learn and analyze traffic engineering investment and financing data and more accurately provide data references for traffic engineering investment and financing risk models.

Social & Solidarity Entrepreneurship What About the Responsible Finance Industry? Case of Moroccan Cooperatives

This paper aims to present Social and solidarity entrepreneurship as a credible model for the emergence of new managerial practices for the solidarity economy companies (SSE, now). This model, especially in times of crises (Covid-19 health, economic, etc.) is an “alternative” to other forms of entrepreneurship specific to the traditional economy due to their double and sometimes triple ultimate goal - achieving financial, social and environmental goals. In recent years, innovative financing mechanisms such as guarantees, impact investing, Crowdfunding and complementary currencies have emerged to address these challenges and enable SSE organizations to thrive. Our study realized in between 2018-2019, on the various initiatives and financing mechanisms with a population of 390 Moroccan cooperatives in the Agadir Souss￾Massa region, underline that the financing mechanisms are diversified and presented on the one hand, a certain potential to create and preserve decent jobs, create wealth, reduce social inequalities and advance local development. On the other hand, results showed also a deficiency in the management and diversification of these modes of financing.

Dual-Channel Supply Chain Financing Operation Strategy Considering Free-Riding Effect under Different Power Structures

This paper considers a dual-channel supply chain consisting of a manufacturer and a capital-constrained retailer, where the retailer makes certain sales efforts and the manufacturer may hitch a ride on the retailer’s sales efforts. Deferred payment and bank loan financing models under Retailer- and Manufacturer-Stackelberg settings are established, respectively. The equilibrium price and sales effort strategies of both sides of the supply chain under two power structures and financing modes are obtained by the backward solution method, and then the influence of free-riding behavior and financing interest rate on equilibrium strategies is explored, as well as how the power structure affects the financing decisions of enterprises. The results show that deferred payment is more conducive to retailers’ sales effort and order volume, which is the optimal financing model for the retailers under each power structure. Power structure affects the initial capital threshold of retailers and the manufacturers’ financing decisions. The impact of free-riding behavior and financing rate on equilibrium prices exists and varies, depending on the power structure and financing model. Numerical simulation results show that manufacturers should give priority to publishing price strategies, while retailers should decide whether to give priority to publishing price strategies according to financing mode and cross-price sensitivity. This paper’s findings can provide valuable guidance for decision-making in financing, price, and sales effort for the capital-constrained dual-channel supply chain.

Salam As Banking Financing for Agriculture in Developing Countries: Lessons From Sudan

The objective of this study is to measure the impact of commercial bank financing via Salam mode of finance on the Sudanese agricultural production and determine whether the Salam mode is suitable for financing agriculture or not. For the purpose of the analysis, the ordinary least squares method (OLS) was applied to a log - linear form of a simple regression model with a time series data on Sudan’s total annual agricultural production as a dependent variable and the commercial banks total annual financing via Salam for explanatory variable. The empirical results indicated that Salam mode of finance is appropriate for financing agriculture in Sudan due to its significant effects on agricultural production with a significant and positive relationship. In addition, agricultural sector highly contributed to the country economy during the study period and highly positively elastic to bank financing. However, it is hindered by heavy direct and indirect taxes, high marketing cost, long distance with poor rural infrastructure and weak agricultural returns. Therefore, relevant policy implications for both agriculture and bank financing are required. Hence, results of study suggest that banks should increase the provision for Salam mode for high agricultural production, reduce tax burdens, renovate the infrastructure, and facilitate financing procedures to agricultural sector.

Research on Legal Regulations of Infrastructure Leasing and Financial Services

The development of infrastructure construction project has been difficult due to limited sources of funding, and the traditional mode of investment and financing for infrastructure construction has gradually revealed many drawbacks due to such practical factors as limited local financial resources. With the expansion of the periphery of the subject matter, financial leasing has subsequently become one of the most popular forms of infrastructure investment and financing. However, compared with the United States and other developed countries where the financial leasing system originated, the legal system of financial leasing in China is not yet sound. Since real estate can be used as the subject matter of financial leasing transactions, China’s lack of legislation in the legal regulations of infrastructure leasing and financial services has inevitably led to many risks and challenges in the specific operation of the business. Based on the analysis of the legal dilemma faced by China’s infrastructure finance leasing, this paper discusses the way forward to improve infrastructure finance leasing, with a view to providing some reference for the further development of infrastructure finance leasing in China.

Research on Development Strategy of Henan Aviation Economy under the Background of Regional Economy

There is no doubt that economic globalization creates a golden opportunity for the development of aviation economy in the world; meanwhile, the world economy has entered the aviation century of the 21st century from the navigation century of the 20th century. As a new type of regional economy, the aviation economy is attracting more and more attention from all sectors of society and becoming a significant field for many countries and regions in the world. As the city that has been strategically promoted as the first pilot zone for airport economy development in China (Liang, 2013), Zhengzhou is endowed with remarkable geographic advantage. Coupled with policy advantages from Chinese government, its development is crucial to the development of regional economy in the entire province; therefore, this research paper studied its advantages, disadvantages, opportunities, and threats for developing aviation economy and analyzed its possibility for developing a well-established aviation industry. Secondly, the current condition of airport logistics in Henan province was analyzed, especially the current situation and noticeable problems. Thirdly, the gray analysis was carried out to analyze the relationship between aviation industry and economy development in Henan. Finally, the according development strategy and suggestions for developing aviation economy were put forward, such as innovating industrial development models, exploring new modes of financing, establishing a sound transportation system and airport supporting facilities, and improving the talent introduction program in airport industry. Overall, this paper researched the aviation economy in Henan province from the perspective of regional economy development, analyzed the current issues occurred in the aviation economy development process, and offered suggestions accordingly.

The role of digital finance in reducing agricultural carbon emissions: evidence from China's provincial panel data.

As a vast agricultural country that emits a high level of agricultural carbon, China faces significant pressure to reduce its agricultural emissions. In recent years, digital finance has become a crucial part of China's financial system and has reshaped China's mode of green finance. Based on the 2011 to 2020 panel data of 31 provinces in China, this study discusses the effect and mechanisms of digital finance on agricultural carbon emissions. A two-way fixed effect model, threshold effect model, mediating effect model, and moderating effect model have been adopted to investigate the nexus of digital finance and agricultural carbon emissions. The results show that: (1) digital finance can reduce agricultural carbon emissions, and this effect is nonlinear, with two thresholds. (2) A reduction of agricultural carbon emissions through digital finance can be realized via digital finance's impact on farmers' entrepreneurship and agricultural technology innovation. (3) Urbanization has a positive moderating effect on digital finance's agricultural carbon emissions reduction effect. Based on the above conclusions, specific recommendations are proposed with regard to digital finance reducing agricultural carbon emissions.

Participative Finance, Microfinance, and Self Entrepreneurship in Morocco

The main purpose of this study is to investigate the role of participative Finance and Microfinance in Morocco to enhance and empower entrepreneurship. The new banking law N° 103-12 reinforces the legal framework. It offers an opportunity to the participative financial institutions to implement their products and participate in the financial inclusion strategy in Morocco, which can facilitate the access of VSMEs and auto entrepreneurs to several modes of financing. For this reason, it is necessary to determine the place of participative Microfinance in the ecosystem of participative Finance and the necessary conditions for its implementation. It is also necessary to know if the formal financial system is well designed to serve the financing needs of auto entrepreneurs in Morocco. The study proposes a conceptual framework to establish the relationship between participative Finance, Microfinance, and entrepreneurship in the case of auto-entrepreneur schemes. In this regard, it seems necessary to know the degree of importance of financial inclusion and if it is enough to empower the auto entrepreneurs, which also helps to determine the contribution of participative Finance and Microfinance in entrepreneurship. Understanding the overall socio-economic structures in Morocco will help determine the obstacles and level of awareness on the demand or supply side. It will help to know whether the Shariah-compliant products can meet on expectations of the VSEs segment. For this purpose, the perception and attitudes of auto entrepreneurs were analyzed using an online survey. A group of experts' perceptions was also analyzed using a qualitative approach, in which semi-structured interviews were conducted.

Islamic accounting research between 1982 and 2020: a hybrid review

PurposeThis study aims to explore the Islamic accounting literature and attempts to identify the worldwide research trends of accounting for Islamic financial institutions.Design/methodology/approachThis study adopts a mixed review approach combining the bibliometric method with content analysis. Consulting Scopus database, the authors collect 195 documents (articles and reviews) relative to the Islamic accounting field from 1982 to 2020. VOSviewer, RStudio (biblioshiny) and Excel analysed the data.FindingsThe study revealed the influential scientific actors in the Islamic accounting field, categorising the intellectual structure into seven streams: accounting for Waqf, accounting for Zakat, Shariah auditing, corporate Shariah governance and screening, accounting for different modes of Islamic financing, education and ethics. The study further provides future research directions for researchers.Social implicationsThe findings highlight the efforts of academicians, researchers and practitioners in this emerging field. This effort provides awareness to different stakeholders on Islamic accounting, which will lead to better stewardship, accountability and information-based decision in line with Islamic economic principles.Originality/valueThis study is among the first Islamic accounting bibliometric papers that would help researchers stand on a firm basis concerning the development of the literature in this scientific domain.

Pricing strategy and coordination of small‐ to medium‐sized enterprises based on bank‐insurance cooperative financing

With the increasingly serious environmental problems, the concept of environmental protection has been deeply rooted in people's minds. The development of small‐ to medium‐sized enterprises (SMEs) is also highly concerned, but such technology‐led enterprises are still subject to more constraints in financing. This paper introduces the loan guarantee insurance, establishes the income model of each participant under the two financing modes of traditional accounts receivable financing and accounts receivable financing under the cooperation of bank and insurer, and explores the role of loan guarantee insurance in financing of SMEs based on the Stackelberg game model. If the manufacturer's default risk premium is high, at the same time, when the loan interest rate announced by the bank under bank‐insurance cooperation is lower than the traditional model, the manufacturer under the loan guarantee insurance model produces and sells more products. However, while guaranteeing their own profits, the bank and insurer can lower the loan interest rate and insurance premium rate as far as possible, which can stimulate the market. By analyzing the complexity of the system, it is found that the decision‐maker's choice of adjusting speed and initial value affects the development state of the system.

Relationship between Enterprise Financing Structure and Business Performance Assisted by Blockchain for Internet of Things Financing Mode.

Financing structure is an important and very complex issue in the financial theory and the rights and obligations of relevant stakeholders of enterprises are also concentrated in the financing structure. Therefore, the financing structure has a significant impact on the value of enterprises. A reasonable financing structure is conducive to standardizing the behavior of enterprises and improving the value of enterprises. The change of corporate financing structure is often used as a signal to external investors about the company's future income expectations, especially because the financing structure has a certain impact on the company's performance, which makes the problem of financing structure more valued by the theoretical and financial circles. For the empirical information about company financing, this paper explores the influencing elements of the company's running overall performance assisted with the aid of the blockchain, and the net of matters provides a chain model and constructs the operating performance indicators according to the comprehensive score. We select the commercial credit financing rate, short-term loan financing rate, long-term loan financing rate, debt financing rate, equity financing rate, and endogenous financing rate. The control variables are total capital, ownership concentration, and average age of the company. The conclusion is drawn by regression analysis. Commercial savings financing rate, fairness financing fee, and endogenous financing fee are positively correlated with the working performance; short-term loans and average age of the company are negatively correlated with the operating performance; and long-term loan financing rate, bond financing rate, and equity concentration are not significantly correlated with the operating performance.

Business Model and Management Decision-Making Method of Comprehensive Apartments for the Elderly

With the development of the aging structure of the social population, ensuring the survival rights and interests of the elderly group and realizing the cultivation of the elderly are important issues that need to be solved urgently for the sake of social development. In recent years, the development of apartment industry for the elderly has provided new ideas and experience for the development of the pension system. However, at present, the development of elderly apartments in China is still in the initial stage, and there are many deficiencies to be solved. Therefore, this paper puts forward the business model and management decision-making method of comprehensive apartments for the elderly, so as to provide scientific and reasonable decision-making reference for the development of comprehensive apartments for the elderly. This paper evaluates the different combinations of operation and management decision-making modes of comprehensive old-age apartments through fuzzy set pair and fuzzy analytic hierarchy process. The experimental results show that the financing mode of comprehensive old-age apartments has a great impact on its operation and management decision-making. Through the corresponding screening and testing, among the five qualified old-age apartment combination modes and private nonenterprise team operation and management modes, financial fund policy capital combination mode is the best choice.