Non-financial Activities Research Articles

A Football Club's Strategic Performance Management

The current study presented in this article shows that football teams should; generally speaking, implement a multifaceted performance management system that takes into account the opinions of all stakeholders. The Balanced Scorecard (BSC), which offers an integrated framework for measuring and managing performance, can assist clubs in evaluating both financial and non-financial activities. This study's context and content greatly advance our knowledge of the football industry and offer a thorough and all-encompassing set of contributions to the field of business academia. The knowledge acquired on a topic that has naturally shown to have a significant impact on people inherently adds something useful and beneficial to society.

THE IMPACT OF BOARD GENDER DIVERSITY ON ENVIRONMENTAL SUSTAINABILITY

Purpose- The Board of Diversity helps companies make more democratic and correct management decisions. The contributions of gender diversity to the financial and non-financial activities of companies are significant. This research was conducted to show the positive contribution of women executives to the environment. Methodology- The study sample includes 108 American companies in the S&P500 index. The study was organized with panel data of USA companies between 2008 and 2021. OLS regression method was used to analyse the results. Findings- According to the results of the analyses, the environmental impact of women on the company board is positive and significant. Conclusion- This study figures out that women executives have higher sensitivity and responsibility towards the environment than men. According to these results, it is essential both in terms of dealing with global warming and in terms of achieving the UN's 2030 targets

The Influence of Sustainability Reporting on Audit Quality. Empirical Analysis on Companies Listed on the Bucharest Stock Exchange

The entire range of financial and non-financial activities carried out in companies has an impact on the quality of disclosures. The audit, through its specific procedural approach, contributes to enhancing the quality of reporting by balancing the interests of the two parties involved in the reporting process, i.e. the companies and the users of the information. The paper aims to assess the extent to which sustainability reporting influences audit quality, assessed from a dual perspective, namely that of the audited company (through the quality of the information published and insured by the audit) and that of the auditor (through the audit opinion expressed). Using information specific to companies listed on the main market of the Bucharest Stock Exchange, the study analyzes the link between a series of dummy variables associated with carrying out sustainable activities, social and environmental protection and the size of discretionary accruals, i.e. the audit opinion. The results reveal a negative relationship between the two dimensions analyzed. The involvement of companies in sustainable actions is generally interpreted as an effort that diminishes audit quality, measured from both perspectives. The effect of these social and environmental protection activities is correlated with potential manipulation of the results (decreasing the quality of financial information) and with increasing the likelihood of expressing a modified audit opinion, respectively. The results are also robust following the introduction of control variables into the analysis, such as: leverage, company growth, company size or industry.

The preliminary study of carbon x-change rakyat using blockchain application

Today’s air pollution is detrimental to the environment, particularly in Indonesia. Carbon dioxide (CO<sub>2</sub>) and nitrogen oxide (NO<sub>x</sub>) are present in the atmosphere due to air pollution. Many individuals employ reforestation to lessen the influence of CO<sub>2</sub> and NO<sub>x</sub> gases on the atmosphere. However, in the digitalized era, lowering carbon emissions may also be accomplished through a carbon credit exchange. Thus, in this study we investigate the performance of the carbon x-change rakyat (CXR) based on blockchain platform utilizing the stress test approach. We provided four scenarios with 10,000 to 100,000 transactions evaluated on the CXR blockchain system i.e., transfer, insert, remove, and update. The outcome demonstrates CXR’s effectiveness with 100% success and 0% failure rate based on testing and statistical computations calculation. The mean absolute error (MAE), variance accounted for (VAF), and percent error (PE) are obtained with values ranging from 0.38% to 4.67%. In this study, the transaction per-second (TPS) is used to calculate include error request (IER) and exclude error request (EER) values around 312 to 746 milliseconds (ms). In addition, the TPS of CXR based on blockchain platform is a capability to create and trace database carbon certificate ownership (nonfinancial activity). It means CXR based on the blockchain platform has a fast response to process carbon certificate ownership for transactions across local and international countries in the world.

빅블러시대의 합리적 금융규제

Purpose - The 4th industrial revolution brings the “Big Blur”, challenging the ‘Principle of Separation of Banking and Commerce’ by blurring distinctions between traditional and non-traditional financial sectors. This paper examines separation regulations and suggests adaptive financial regulations tailored to the challenges posed by the ‘big blur’.
 Design/Methodology/Approach - We assess existing regulations for financial and non-financial institutions amidst evolving industry and business convergence using theoretical documents, reports, and news articles. Recognizing asymmetries in the application of laws, we propose optimal regulatory schemes to promote innovative financial ventures.
 Findings - The principle of separation of banking and commerce presents a regulatory dichotomy with ‘over-regulation’ burdening financial firms, and ‘under-regulation’ favoring big tech. Dual convergence is evident as non-financial big techs enter financial sectors, and financial institutions diversify into non-financial activities. This calls for globally cohesive regulatory frameworks for a level playing field.
 Research Implications - The paper advocates regulatory innovation for the ‘big blur’ era, aiming to establish a level playing field and enabling financial firms to enter non-financial services. The proposal encourages expanding business scope through diversified models supported by negative regulation systems.

A Longitudinal Analysis of Economic Activities’ Relative Efficiency Using the DEA Approach

Economic activities’ efficiency represents the level of performance that uses the lowest quantity of inputs to achieve the highest possible amount of output. This paper presents the process of calculating the relative efficiency of separate non-financial activities in an economy using the DEA methodology. The purpose of this paper was to create the DEA model for monitoring the relative efficiency of individual non-financial activities of the economy. The purpose was achieved through the realization of two objectives. The first one included the determination of the relative efficiency of the above-mentioned activities in the period from 2002 to 2020 using the data from non-financial entities in the Republic of Croatia. The second objective consisted of ranking the economic activities according to their relative efficiency. An output variable that measures the efficiency was presented using the return on assets, while the total debt to EBITDA, EBITDA per employee, assets turnover and human capital efficiency were used as input variables. Research results indicate that the DEA methodology could be used as an economic activity’s relative efficiency measurement tool, giving the possibility to rank it according to its relative efficiency using the accounting ratios. Research results show that service sectors’ economic activities were the most efficient ones according to the lower assets engagement and the respective sources of financing that dominate. The highest average relative efficiency in 19 years was scored using wholesale, retail and repair activities as well as information, communication and education. The lowest average relative efficiency was achieved in construction, water supply, sewerage, waste management and remediation activities as well as accommodation and food service activities, which is the consequence of their low level of activity and profitability and high indebtedness in the analyzed period. The relative efficiency scores calculated using the DEA methodology could be used as a benchmark for companies on a micro level, while on the macro level decision-makers can obtain a deeper insight into the relative efficiency of the nonfinancial activities.

Interlinkages between stability, carbon emissions and the ESG disclosures: Global evidence from banking industry

The main aim of this paper is to investigate the interlinkages between bank stability, emissions and the ESG activities. The findings can be summarized as follows. First, we find statistically and economically significant association between bank stability and the carbon emissions. Second, banks can partially negate the adverse consequences of emissions through more non-financial (ESG) activities. Moreover, we find lower deposit and lower asset quality to be the main channels through which emissions adversely impact the bank stability. These findings have strong implications for the banking industry as well as the policymakers.

Do companies that generate profits make economic value added?

This paper focuses on determining the differences between economic value added (EVA), net operating profit after tax (NOPAT), earnings before interest and taxes (EBITDA), and net income or loss for non-financial business entities operating in the Republic of Croatia in the period 2002–2021. The main objective of this paper is to determine whether non-financial activities create economic value added, and rank them according to selected indicators based on EVA. Research results indicate that there were only 27 out of 309 cases where EVA was positive, indicating that only the information and communication sector generated, on average, positive EVA during this twenty-year period. Positive EVA was generated in certain years in companies conducting human health and social work activities, education, mining, and quarrying, as well as in wholesale and retail trade activities, but the average EVA for this twenty-year period in these sectors was negative. At the same time, net income was achieved in 246 cases, and NOPAT in 285. Meanwhile, EBITDA was positive in all cases, demonstrating an obvious discrepancy between EVA and other financial performance measures. Correlation analysis results indicate that there is a statistically significant moderate correlation between EVA and net income/loss, although the correlation is generally stronger between EVA and EBITDA-based indicators. According to research results, the answer to the question in the title of this paper is negative, emphasizing the possibilities of intensive introduction of EVA as a financial performance indicator.

The Role of Accountants and the Accounting Profession in Achieving the Sustainable Development

Abstract Sustainability, an increasingly addressed business principle, has begun to take place in modern business systems and become a focus for ways of assessing corporate performance in all three dimensions of the environmental, social, and economic spheres. Thus, the accounting profession and accountants have a key role in the core of active business for the achievement of sustainable development objectives. This aim at enabling financial and non-financial activities to be carried out in an honest way towards society the environment and according to universally valid principles that want to improve the quality of life and business. The literature frequently highlights the need to expand the evolution of sustainable development through various spheres of action. This paper intends to outline the current context on the contribution made by accounting professionals towards sustainable development and their efforts towards this direction. Using a qualitative research methodology, the initiatives organized by accounting regulatory bodies and representatives of the accounting profession will be analyzed. The aim of the current paper is to contribute to the literature in the field of finance and accounting by highlighting the role of accountants around sustainable development and presenting the various attempts, which have started from the accounting profession, to support the goals for sustainable development, presented in the framework of the 2030 Agenda for Sustainable Development - 2015 by UN.

Credit Portfolio Management in Nepalese Microfinance Institutions (MFIs): A Shifting Guide to Credit Risk Management

This paper attempts to provide a first step toward understanding the role of credit portfolio management in Nepalese microfinance institutions (MFIs) and overcome those problems associated with credit risk management. The credit portfolio management (CPM) has become most crucial functions of the Nepalese MFIs for sound loan portfolio quality. This study is based on descriptive research design. Several findings are made through the review of the literature that is parallel to achieving the objectives of the study. MFIs are financial intermediaries ("banks") that have a direct impact on economic and social transformation, such as job creation, income generation, social change, and poverty alleviation via financial and non-financial activities. The findings show that a credit appraisal system, scientific interest rate, credit monitoring, loan portfolio diversification system, capital optimization, risk framework development, regulatory management, credit control, credit advisory, and credit research, have reduced credit risk and ensured high-performing loans and financial sustainability. The study recommends that MFI’s portfolio management strategies focus more on the internal causes of delinquency which they have more control over and seek practical and achievable solutions to reimbursement delinquency problems. The study's findings will be useful to BFIs, institutional lenders, microfinance experts, regulators, economists, policymakers, and institutional credit rating agencies. The result reveals that portfolio diversification has a significant impact on credit portfolio management in Nepalese MFIs.

ESG information extraction with cross-sectoral and multi-source adaptation based on domain-tuned language models

Along with future sustainability, factors such as environmental protection, co-prosperity, and ethical management are also gaining attention, resulting in the increased significance of the non-financial performance of companies. Accordingly, many institutions are evaluating the non-financial activities of companies using environmental, social, and governance (ESG) as evaluation indicators. However, the use of the current ESG rating as a reliable indicator has a limitation as the criteria are different for each evaluation institution and the ESG rating for the same company may differ when provided by different evaluation institutions. Accordingly, it is important to directly extract non-financial information generated by various media to provide objective ESG information, but the studies that focus on the need for automatic and direct extraction and classification of ESG information are limited. Therefore, this paper proposes a classifier that can discriminate ESG information. To train the ESG classifier, a dataset was constructed by manually labeling ESG data, and the ESG classifier recorded a classification accuracy of 86.66% for the 4-class classification problem of the constructed dataset. In addition, three application experiments were conducted to verify the usability of the proposed model. First, the results confirmed that the ESG classifier showed a significant performance of 83.96% accuracy for sectors not included in the training data. Second, the results qualitatively confirmed that the proposed model properly extracts ESG-related information from multi-source text data. Finally, the ESG dataset was additionally constructed through the pseudo-labeling technique, and the performance improvement of the data augmentation and classifier was verified. The ESG classifier proposed in this paper will provide appropriate ESG information to stakeholders. In future studies, we intend to extract and classify ESG-related information from more diverse types of data through an advanced ESG classifier. Further, we will use the information for investigating methods for reflecting the non-financial performance of companies in ESG ratings.

Evolution of management consulting and its siginificance in the sustainable development of agrarian enterperises

During the industrial revolutionary period, the regulatory environment changed and outlawed the consultative services preventing banks from engaging in non-financial activities. As a result, the “Institutional Entrepreneurship” evolved into growth of early consulting firms which further developed and earned the professional status to consultants and to consulting firms. Evolution of consulting service in management or management consulting boosted their activities identifying and investigating problems concerned with policy, organization, procedures, and methods. Nowadays a new modern concept, “Sustainability” is added in consulting management. Sustainability in business management enhances efficient resource use system while maintaining a high value for the final products as well as to cost reduction, leading to innovation and new business models. Sustainable development is a good business which creates opportunities for suppliers of ‘green consumers’, developers of environmentally safer materials and processes, firms that invest in eco-efficiency, and those that engage themselves in social well-being. Consulting service in management plays a huge role in the sustainable development of Agriculture sector businesses which have been recognized as one of the core sector in any economy that have a tremendous effect in improving the life of people socially, economically and sustaining human life. Management consulting in agricultural enterprises and in agribusiness encourages farmers and agribusiness on implementing sustainable strategies that increases the efficiency of the value chain through the preservation of environment, protection of health and sustaining the economically viable communities. It helps the agricultural enterprises to have a competitive advantage by earning their local community’s goodwill and their efforts reflected in the bottom line.

The Systemic Risks and Regulation of BigTech : “Too Big(Tech) to Fail?

When it comes to systemically important financial institutions, people usually think of banks, insurers or financial holding companies, but large technology firms (socalled BigTech) are increasingly part of this category. This paper examines regulatory approaches with which the systemic importance of BigTech firms in financial services could be addressed. According to the analysis, of the three regulatory frameworks identified in the literature (“restriction”, “segregation”, “inclusion”), when a balanced approach is used, the segregation of financial and non-financial activities seems to be the most promising regulatory solution, as this model works best for taking account of the practical aspects of operation, regulation and supervision.

Assessing the value factors of agricultural companies

Subject. The article investigates the correlation between economic and geographical factors and the value of agricultural companies. Objectives. The purpose is to construct an econometric model of dependence of agricultural companies’ value on economic and geographical factors and interpret the obtained results, considering industry characteristics. Methods. The study employs general scientific methods of research, like generalization, analysis, synthesis, analogy, deduction and induction, as well as methods of logical, statistical, and econometric analysis. Results. Testing the regression model based on the data of more than two hundred agricultural companies, presented in the Standard&Poor's international database for 2012–2019, demonstrated a positive correlation between company's value and its size, return on assets and equity, and negative correlation between company's value and age, leverage, debt ratio, as well as its belonging to an economically developed country on its value. Conclusions. The focus on sustainable development, consumption and production changed the paradigm of business valuation: non-financial activities are treated on a par with financial performance. The transformation to ESG (Environmental, Social, and Governance) standards encourages key stakeholders to assess issues related to corporate governance, social responsibility, innovative cooperation, "sustainable" development, etc., when making strategic decisions. The scientific novelty of the study is to identify negative relation between the value of agricultural companies and their belonging to economically developed countries, which may be caused by the distrust of key stakeholders of the industry in modern, often contradictory in terms of ethics, biotechnology developments.

The Future of Business Reporting in Accounting and Finance:(LEARNING FROM THE COVID 19 PANDEMICS)

This proposed research work aims in filling a gap in the literature by explaining how corporations' lack of understanding of non-financial activities, notably biodiversity, can lead to global economic crises like Covid-19. Work with established companies to improve the quality of their reporting by accounting for non-human components and making it more comprehensive for stakeholders. To back up our argument that nature contains both human and non-human components, we employ Actor Network Theory (ANT) and the Natural Inventory Model. Offering a theoretical framework for the consequences of businesses' non-financial reporting Based on our experiences of the Covid-19 problem and a review of the existing relevant literature on CSR, Covid-19, non-financial reporting, and integrated reports (IR), we developed (IR). Suggesting that businesses implement/adopt the Circular Economy idea as a long-term business model, as well as report on biodiversity and extinction accounting in a more organized and required manner by creating IR to produce value in the close, mid, and longer - term. This is the first research to look at the Covid-19 issue and make suggestions for future reporting. The discoveries will help both academia and society. Advances in information technology are expected to have a significant influence on the future of accounting and reporting. The majority of prior research has focused on technology as the most important factor impacting accounting and reporting in the future.

Green Banking Disclosures: Are they Beneficial and Important to the Stakeholders?

The study attempts to explore stakeholders’ perceptions on the importance and benefits of Green Banking disclosures. The study also analyzes the association of demographic variables with the importance and benefits of Green Banking disclosures. The data for the study is collected from 630 bankers and customers using a structured questionnaire. Demographic variables used for the study are gender, marital status, bank categories (public or private), and nature of stakeholder (banker or customer). Statistical tools applied for analysis are Frequency Analysis, Cross-Tabulation, and Mann-Whitney U Test. The study reveals that the majority of the stakeholders (92%) agreed that it is important to disclose Green Banking activities, 94% of the stakeholders agreed that it is important to communicate Green practices, and 79% of the stakeholders agreed that Green Banking Disclosures are important for the social image of a bank. Mann-Whitney U Test reveals that Bankers and Customers differ significantly in their perception towards the importance of Green Banking disclosures. The study additionally reveals that majority of the stakeholders agreed on the various benefits of Green Banking disclosures. The results of the Mann-Whitney U Test tell that stakeholders of different gender differ in perception regarding the following benefits of Green Banking disclosures: enhancement of knowledge on Green Banking, helps to handle new technologies, and gives a positive impression of bank’s prospects. Stakeholders of different nature (banker and customer) differ in their perception towards the following benefits of Green Banking disclosures, namely: Green Banking disclosures contribute towards the environment, Green Banking disclosures gives a positive impression of bank’s prospects, and Green Banking disclosures helps in long term sustainability of banks. This study will help the banking community to understand the need to disclose their non-financial activities (environmental activities) to both their internal and external stakeholders.

ANALISIS STRATEGI LIKUIDITAS, KUPON, MATURITY DAN RATING OBLIGASI DALAM MENCEGAH GAGAL BAYAR OBLIGASI EVERGRANDE

The second largest property company from the Bamboo Curtain country, the Evergrande Company, experienced an inflated debt worth USD 300 billion which also made it one of the companies that almost defaulted on the bonds issued. It is feared that this phenomenon will have a negative impact on similar companies. The purpose of this study was to analyze the Liquidity Strategy, Coupon, Maturity and Bond Rating in Preventing Default of Evergrande Bonds. Strategy analysis using SWOT analysis. In this study, the researcher used a qualitative descriptive approach. Based on the SWOT analysis, it was found that the financial and non-financial management activities of Evergrande's company were considered bad, thus placing the company in a position of liquidity difficulty, as a result, the company chose to pay off its bonds debt by issuing new bonds until finally the three of red policy emerged, making Evergrande difficult to pay its maturing bonds.

The Impact of ESG Factors on Company Share Prices in the European Energy Sector

ESG factors are increasingly becoming an inseparable part in company reports. Despite many difficulties connected with reporting of non-financial activities, there are more and more companies which undertake this difficult task each year. This kind of information is especially important for contemporary investors, who do not only look at the profit on a given investment, but pay more and more attention to the company’s image, methods of operation, approach to employees and the closer and farther environment. The hypothesis was as follows: the ESG factors have an increasing influence on stock prices. A panel study was used for the analysis. The study covered European energy companies which closed their financial year at the end of the calendar years 2010–2021. However, the results of the study did not reliably reflect the impact of ESG on the achieved rates of return because only in the last few years have they begun to gain significance. Previously, their impact was too weak to be shown in studies on larger samples.

Microfinance as a Measure of Poverty Alleviation- A Survey of Longding District of Arunachal Pradesh

The supremacy of microfinance services emerges from the fact that the various financial services and its other allied complementary non-financial activities that the micro financial institutions deliver are friendly and reliable for the poor individuals. Similarly, another significant essence of microfinance institution is that, in the process of delivering microcredit services it is generally the micro finance institutions that reach out towards the door steps of the poor clients, instead of the poor individuals arriving at the gateway of the financial institutions seeking for assistance. The outcome of microfinance services on poverty alleviation has been measured on the basis of multiple dimensions such as increased in income of the family, improvement in the living standards, increase in family expenditures, rise in socio economic status, advancement in children’s education etc. Hence, though many studies supported that role of microfinance in achieving the long term goal of poverty alleviation, the main challenge in order to draw a proper conclusion is to obtain reliable data for better analysis and understanding

Keeping Up with Power/Corruption in a Pandemic: A Study of an Investigative Journalist’s Twitter Handle

Investigative journalists have the special role of conducting investigations and reporting on them. In Nigeria, studies have confirmed that a lot of investigative reports are found in the traditional media, both broadcast and print, and most of these reports, which are about financial scandals, originate from government agencies saddled with the responsibility of battling corruption. This paper applies the social responsibility theory of the press to investigate the transformation and change in investigative reporting in Nigeria as occasioned by the COVID-19 pandemic and disseminated on the social media. The study focuses on the COVID-19 tweets of Fisayo Soyombo, an acclaimed Nigerian investigative journalist who has over 101,000 followers on Twitter. Soyombo’s tweets from 1 April 2020 to 30 June 2020 harvested from his eponymous Twitter handle formed the study sample. By identifying narratives of corruption, scandal stories and follow-up stories in the tweets, the paper finds out that unlike what obtains in the traditional media, Soyombo initiates investigation into the non-financial activities of people in positions of authority and seizes the opportunity of asynchronous communication on Twitter to report his findings regularly. However, the same asynchronicity as well as the unfolding events of the pandemic also cause him to end up with many questions and not enough answers. Nonetheless, the paper concludes that such questions can form the basis of further investigations beyond the pandemic.