Financial Options Research Articles

Why Avoid Participating in an Accelerator? Countersignalling by High‐Quality FinTech Ventures

AbstractThis study investigates whether accelerators attract the highest‐performing FinTech ventures. Drawing on countersignalling theory, we present a model of accelerator participation that predicts high‐quality FinTech ventures will avoid accelerator programmes. Using a unique financial reporting dataset of FinTech accelerator participants and a propensity score‐matched sample of comparison firms, we find support for the prediction from our countersignalling model. FinTech accelerator participants have worse performance, both before and after completing a programme, when compared to peer non‐accelerator ventures. Overall, our results indicate that FinTech ventures are less suited for accelerators due to the current breadth of outside funding options available, which provides little incentive for participation from high‐quality ventures. This research has important implications for entrepreneurs, accelerators and investors.

Exploring Risk Management Issues of Financial Options in China

Exploring Risk Management Issues of Financial Options in China

Financial Literacy Education in the Classroom on the Topic of Budget + Financial Options - Teachers Manual

Financial Literacy Education in the Classroom on the Topic of Budget + Financial Options - Teachers Manual

Teaching Aid for Financial Literacy Education in the Classroom on the Topic of <b>Budget + Financial Options</b> - <i>Workbook Student</i>

Teaching Aid for Financial Literacy Education in the Classroom on the Topic of <b>Budget + Financial Options</b> - <i>Workbook Student</i>

ІННОВАЦІЙНІ ІНСТРУМЕНТИ ЗЕЛЕНОГО ФІНАНСУВАННЯ ДЛЯ УКРАЇНИ

The expansion of financing sources holds particular importance in the context of implementing the European Green Deal in Ukraine. Given the escalating climate and environmental threats, the pursuit of new green financing mechanisms for countries burdened with high levels of debt persists. Amidst the full-scale war in Ukraine, the options for state financing of environmental projects and programs are significantly restricted. The article examines the formation of additional financing sources aimed at restoring ecosystems and ecological infrastructure damaged by the war in Ukraine. Drawing upon an overview of international practices, this study elucidates innovative approaches to environmental financing, which involve exchanging a part of the state's external debt for commitments to invest in nature conservation programs and achieve climate neutrality. The analysis highlights significant variations in the implementation of green debt swaps across different countries, underscoring the need to assess the feasibility of adopting such mechanisms in Ukraine, especially given its heightened reliance on debt. Utilizing multi-criteria analysis, a comparative evaluation of key "green debt conversion" instruments was conducted, encompassing Bilateral Debt-for-Nature Initiatives, Debt-for-Nature Swaps, and Debt-for-Climate Swaps. A comparative table has been compiled to illustrate the key characteristics of these instruments and to assess the potential impact of their use in Ukraine. The benefits of exchanging debt for investments in environmental recovery, as outlined in Ukraine's National Recovery Plan, are delineated. The primary sources for accumulating funds to meet the state's obligations resulting from the adoption of green debt swaps have been identified. Recommendations for the implementation of green debt swaps in Ukraine have been provided. It has been concluded that green debt swaps could be employed in Ukraine to finance specific environmental or climate-related projects and initiatives, establishing conservation and climate funds through contributions from both domestic and international ESG investors. To protect against “greenwashing”, it is advisable to bolster oversight of financial transactions and to expand the list of key performance indicators (KPI) used to evaluate investment decisions, considering ESG factors.

Unveiling Equity Crowdfunding Dynamics: An Exploration of Entrepreneurial Finance Horizons

Equity crowdfunding is an emerging form of entrepreneurial finance that has gained significant attention in recent years. It enables startups and small businesses to collect funds from many investors through online platforms. While equity crowdfunding has the potential to overcome traditional funding barriers and democratize access to capital, there is a lack of consensus on its effectiveness and impact on startups and the wider entrepreneurial ecosystem. This paper provides an overview of leveraging equity crowdfunding for entrepreneurial financial support. It discusses the concept of equity crowdfunding, its evolution, and the benefits and drawbacks of this form of financing along with some comparative analysis. It also reviews the existing literature on equity crowdfunding and highlights its practical implications, limitations, and policy implications. Furthermore, the paper discusses the regulatory environment of equity crowdfunding and its impact on entrepreneurs and investors. The research concludes with recommendations for entrepreneurs considering equity crowdfunding as a source of financing. The study's results highlight the pivotal influence of regulatory frameworks on equity crowdfunding outcomes, suggesting that a favorable regulatory environment correlates with increased success rates, creating a supportive ecosystem for entrepreneurs and investors. Policy makers can contribute significantly to providing regulatory clarity to ensure that entrepreneurs have access to equity crowdfunding for a financing option.

The impact of the green economy on the sustainable development of Kazakhstan

The authors in this study noted that, the world economy is faced with the realities of depletion of natural resources, water, and environmental pollution. The global course around the world today is the “green economy”, which provides not only a careful attitude to nature, but also the introduction of innovative technologies. In addition to the high level of physical and moral depreciation of equipment, which worsens the issue of irrational consumption of raw materials and energy, there is also a lack of innovation due to low demand and restricted funding. The current implementation of the Invest EU investment program aims to attract a minimum of 650 billion rubles between 2021 and 2027 in long-term public and private investments to support the sustainable revitalization of the European economy. A significant portion, 30%, of these funds are earmarked for climate-related projects. This presents a unique chance for funding innovative ventures that carry higher financial risks, with the added security of a $26.2 billion euro EU budget guarantee. The Public Sector Loan Facility offers a unique financing option, serving as a credit line to enhance public funding in specific areas. This facility, offered by the European Investment Bank, combines grants from the European Union with loans to support projects in targeted regions. It also extends assistance to projects that may not generate profits. The Center for Green Finance was founded in Kazakhstan in 2018 at the Astana International Financial Center with the aim of advancing and advocating for environmentallyfriendly financial practices.

Public Finance Options for Recycling Carbon Tax Revenue in Germany

Public Finance Options for Recycling Carbon Tax Revenue in Germany

Inventory management for aging products with supply chain finance: the warehouse financing option

For businesses specializing in ameliorating goods, such as seasoned cheese, traditional financing models pose unique challenges. Inventory financing relies heavily on past performance, often overlooking the inherent value increase associated with proper aging. This can lead to limited access to capital, hindering growth and operational stability. Warehouse financing emerges as a specialized solution specifically designed for businesses with maturing inventory. Lenders recognize the future value potential of these goods, offering secured loans based on anticipated market appreciation. This approach unlocks immediate cash flow, empowering businesses to cover operational costs, invest in expansion, or manage cash flow fluctuations. This study develops and discusses inventory problems for the specific class of "ameliorating" products, integrated with the warehouse financing technique, to combine the two topics and highlight their main features but above all their scientific and practical importance. The models proposed are focused on a decentralized scenario (single actor perspective) and a centralized scenario (supply chain perspective) to compare the optimal solution in terms of the aging period while maximizing the annual profit. Furthermore, from the supply chain perspective, a multi-supplier single-manufacturer supply chain is proposed with a deteriorating raw material (i.e., fresh milk). While cheese is a prime example, warehouse financing can benefit a diverse range of businesses dealing with ameliorating goods (such as wines, coffee, and aged spirits).

Evaluating the Sources of Financing Working Capital of Small Businesses in the Tarkwa Nsuaem Municipality

The role of small and medium enterprises in the development of the economies of third-world countries is by far indispensable. However, the ability of these enterprises to raise their working capital to perform these roles remains laborious. This paper evaluated sources of financing working capital, assessed the accessibility and utilization of traditional financing options, examined the role and significance of alternative financing methods and proposed recommendations to SMEs in the Tarkwa Nsuaem Municipality of the Western Region of Ghana. The study considered 120 (53.3%) out of 225 SMEs in the Municipality. It adopted a quasi-experimental research design and obtained data using a cross-sectional survey. Descriptive statistics was used to evaluate the components of working capital. The study showed that SMEs operators preferred the use of personal funding for their businesses to the use of bank loans. Again, the firms appear to be liquidity conscious and thus, refrained from financing long-term projects with short-term funds. A key recommendation of the paper is that SMEs should make use of entrepreneurial programs offered by the NBSSI and NGOs since these come with education and training.

Pricing green financial options under the mixed fractal Brownian motions with jump diffusion environment

Pricing green financial options under the mixed fractal Brownian motions with jump diffusion environment

Metals Streaming and Royalty Financing: A Framework for Assessing Mining Sector Financial Benefit–Sharing Implications for Governments

This chapter offers a simplified approach to assessing the potential impact of metals streaming and royalty financing on government revenues. Subject to the availability and quality of information, a revenue impact ratio can be determined by comparing the potential revenues to the government from more traditional forms of financing with potential revenues to the government from metals streaming or royalty financing.The chapter considers the key features, advantages, and disadvantages of these alternative funding options for mining projects, and then develops an illustrative model to demonstrate their potential impact on government revenues. This forms the basis on which to identify the key challenges, and the policy considerations when addressing them.While metals streaming provides upfront capital and a potential hedge against price risk for producers, it could also limit the upside potential for both the mining company and the host government. On the other hand, royalty financing offers stable income streams and diversification opportunities for investors but may lack direct exposure to metal price increases.The ultimate risk faced by resource-rich governments as a result of an increase in the use of metals streaming and royalty financing arrangements is a suboptimal share of the potential benefits that will accrue from the mining operations. Specifically, the risk is of a reduction in taxable income and royalty revenue.At the heart of the policy considerations pertaining to resolving these challenges and risks is reducing information asymmetry between the government, the mining company and the streaming or royalty company. One important way to do this is to strengthen tax legislation and enforcement mechanisms. Implementing anti-avoidance rules, such as interest limitation rules, can limit the ability of metals streaming and royalty financing companies to exploit tax and other loopholes. Other features with which to strengthen the legislation include clear minerals pricing rules, and clearer provisions regarding withholding taxes.

Effects of Transformation on Outreach Performance of Microfinance NGOs in Kenya

This research examines how transformation affects the outreach performance of microfinance NGOs in Kenya. Specifically, it analyzes the impact of various transformation indicators on outreach performance. Utilizing a quantitative research approach, the study utilizes unbalanced panel data spanning 19 years (1997 to 2015) obtained from the Microfinance Information Exchange (Mix) Market databank, focusing on six surveyed transformed microfinance NGOs in Kenya. Panel data regression models and instrumental variables estimation methods are employed for model specification. The findings reveal that outreach, measured by the average loan balance per borrower, is significantly and negatively influenced by the debt-to-asset ratio but not significantly affected by the debt-to-equity ratio or deposits-to-total assets ratio. The percentage of female borrowers is significantly influenced by the debt-to-equity ratio and debt-to-asset ratio, while the number of active borrowers is significantly influenced by the debt-to-asset ratio, deposits-to-total assets ratio, institutional size, and institutional age. These results suggest a necessity for microfinance NGOs facing capital funding challenges to devise policies that facilitate the utilization of commercial capital sources to expand outreach to impoverished individuals. Nonetheless, the management of transformed microfinance NGOs must implement safeguards ensuring that the pursuit of commercial funding options and public deposits does not compromise their mission of serving the most vulnerable populations.

HIGH-EDUCATED WORKFORCE MIGRATION: CASE STUDY OF NEW ZEALAND

Research and education opportunities in New Zealand are very high. The country has educational institutions of international popularity with a wide variety of world-class programs. The appeal of New Zealand's education system is further enhanced by scholarships and funding options for overseas students. Highly educated individuals seeking to advance their academic and professional goals are invited to the stimulating research environment created by collaborative research initiatives, alliances with industry, and access to cutting-edge facilities and resources. Because of these attractive factors, New Zealand has become a desirable destination for highly educated workers. First of all, the country's high quality of life and work-life balance is a major attraction for professionals. New Zealand offers a unique lifestyle due to its stunning natural scenery, energetic cities and strong focus on leisure activities. The aim of this study is to examine the phenomenon of highly educated workers migrating, sometimes called brain gain or brain drain, in relation to New Zealand. It examines the pull factors from their home country, the pull factors that attract highly educated people to New Zealand, and the effects of this migration on both their homeland and New Zealand. The research also looks at the idea of brain gain through return migration and how overseas students impact the local labour market. Government actions and initiatives aimed at retaining highly educated workers and maximizing the advantages of migration are also covered. By assessing these factors, the research provides insight into the dynamics of highly educated worker migration in New Zealand.

THE IMPACT OF PUBLIC EXPENDITURE ON INFRASTRUCTURAL AND ECONOMIC DEVELOPMENT IN NIGERIA (1986-2022)

The paper examined the impact of public expenditure on infrastructural and economic development in Nigeria from 1986-2022). The study was a time series thereby employing Secondary data sourced from the Central Bank of Nigeria (CBN) Statistical bulletin 2022. The data were subjected to unit root diagnostic test to determine whether they are stationarity or otherwise. The data were integrated of order 1(0) and 1(1). Therefore, the Autoregressive Distributed Lag (ARDL) model was adopted, the Error Correction Model (ECM) technique was also adopted to check for the cointegration. The study reported along run relationship between public expenditure on infrastructural and economic development. The result shows that Public expenditures on health and construction infrastructures negatively affect economic development in Nigeria. While public expenditures on education, transportation and communication, and economic and services infrastructures positively affects economic development in Nigeria. The study concludes that pubic infrastructural expenditures influence economic development in Nigeria and the paper recommend that the financing options for closing Nigeria’s infrastructure gaps should focus on broadening the sources of finance and a better allocation of public resources. In this wise, the government should intensify the utilisation of the public-private-partnership (PPP) framework as government alone cannot finance infrastructural development in an emerging market economy like ours. Therefore, Nigeria needs to be more pragmatic in her infrastructural development, in order to create employment and reduce poverty.

How caring communities become part of the health system of the future in the Netherlands. Developments, bottlenecks, and impact.

In the past decade the Netherlands has seen major reforms in health- and social care. These reforms accomplished a shift from a social democratic welfare state to a ‘participation society’; people with care and support need to live at home longer and have to rely on their informal network for support. In order to provide an answer to the retreat of state organized support we see an increase of citizens initiatives for care, wellbeing and support in The Netherlands.
 The growing movement of citizens initiatives, or ‘caring communities, is diffuse. ‘They vary in target groups, activities, organisation and goals. However, they have in common that they are filling the gap care and support provisions that the government has left behind. In order to get a better image of this movement, their impact and the challenges they face in collaborating with the Dutch care system, Vilans and the Dutch umbrella organization of citizens initiatives (NLZVE) bundled their forces in a variety of research projects.
 This collaboration started in 2020 with the ‘Monitor on the Movement of Caring Communities’. In co-creation with key figures from the movement of caring communities we developed a survey. The results of this survey (n=346) gave us insight in the activities, goals, partners and bottlenecks of these initiatives and initiated new participatory action research projects. These focused on reliable and sustainable financing for citizen initiatives, how initiatives measure their impact and how caring communities and ‘system parties’ work together.
 Together with different initiatives we explored different financing models and their pros and cons. The lack of sustainable financing options for citizen initiatives is a bottleneck for the development of these initiatives and for durable collaboration with the system parties. Simultaneously we found that many initiatives struggle to show their impact. This impact is often implied (i.e. less loneliness or a healthier population) but hardly mapped. We found that the lack of a clear message about the impact of an initiative hinders a durable financial model. Municipalities and other financiers need to know what the effect of their investment is. To help the movement of caring communities better map their impact and organize sustainable financing we developed, through co-design, two different tools.
 Another bottleneck for caring communities is the collaboration between these communities and the ‘system’. Caring communities often exist because of discontent with and/or inaccessibility of care and wellbeing services. However, we see that when initiatives want to expand their services (i.e. in the field of home- or social care) they have to collaborate, or in some cases even become part of, the care system. Our project focused on how these worlds come together without both of them losing their strengths and identity. The lessons learned will, together with the survey outcome and both tools, presented during the oral presentation. Additionally we will present our next steps, which include a qualitative and participatory research project on the impact of citizens initiatives and a data driven approach to identify the complete movement of caring communities in The Netherlands.

Data-Driven Decision Making: Financial and Risk Analysis on Equipment Procurement at PT ABC Using Predictive Data Estimation, NPV Analysis, Owner Estimate, and Monte Carlo Simulation

This research delves into strategic financial management solutions for PT ABC during the COVID-19 pandemic, concentrating on the procurement of vital airport equipment. It examines the feasibility of securing essential equipment such as ARFF vehicles, X-ray machines, ambulances, and narcotics & explosive detectors amidst financial challenges. Utilizing financial models like predictive data estimation, Net Present Value (NPV) analysis, owner estimates, and Monte Carlo simulations, the study evaluates risk probabilities and distributions linked to different procurement strategies. The research underscores the pandemic’s profound impact on the global aviation sector, notably the steep decline in passenger traffic and resulting financial strains on PT ABC. Facing stringent regulatory obligations and the urgent need for equipment upgrade, the study investigates cost-effective procurement avenues, weighing the benefits of leasing against purchasing, given the company’s constrained cash flow. The study navigates through the challenges of limited RFI data and internal corporate regulations that restrict leasing durations. It provides a detailed financial analysis to pinpoint the most economical vendors and procurement approaches, leveraging owner estimates as a negotiation tool. Risk evaluation is conducted via Monte Carlo simulation, offering insights into the likelihood and impact of procurement-related risks. Concluding, the research finds that PT ABC can best manage its procurement needs by opting for leasing over buying. This approach aligns with the company’s financial strategy amidst the crisis, allowing for the acquisition of necessary equipment within financial limits. The study identifies Vendor A for ARFF vehicles, Vendor D for X-ray machines, Vendor E for ambulances, and Vendor G for narcotics & explosive detectors as the most cost-effective choices. Leasing, particularly on a 3-year term, emerges as the most viable financial option, in compliance with PT ABC’s internal regulations and operational requirements. Utilizing owner estimates for negotiations ensures more cost-effective procurement. The Monte Carlo simulation proves invaluable in evaluating procurement risks, indicating a higher risk associated with buying than leasing. This research aids PT ABC in strategic decision-making for equipment procurement, offering lessons for the broader aviation sector navigating post-pandemic recovery.

Finance Option and Growth Prospect of Production Based Firms in Nigeria: A Post-Financial Crisis Analysis

Purpose: Firms' funding strategies have grown more fluid and unpredictable since the global financial crisis of 2007, particularly for developing nations like Nigeria. This research looked at the years 2010–2022, after the financial crisis, to see how different types of financing affected the expansion opportunities for production-based businesses in Nigeria. In particular, the research looked at how different types of financing—equity, debt, and retained earnings—impacted the expansion of assets for Nigerian production-based businesses. Design/Methodology/Approach: A panel regression estimate was used to evaluate the data gathered from the financial accounts of fifteen production-based enterprises. Findings: The most effective and reliable estimate, which was a random effect, showed that total equity had a positive and statistically significant influence on asset growth rate. Asset growth rates were negatively and insignificantly affected by total debt and retained earnings, according to the result. Compared to the internal option (retained earnings), this study found that the external source of finance option—particularly equity—has a strong propensity to accelerate the rate of expansion of a production-based corporation in Nigeria. Original/Value: A post-financial analysis of production-based enterprises is the innovative aspect of the study that aligns with Pecking Order Theory's postulates about the relationship between finance and economic prospects in developing nations like Nigeria. Practical implications: Consequently, producing organizations should include whole equity in their financing options for growth enhancement rather than seeing it as a last resort.

IDENTIFYING FACTORS THAT CONTRIBUTE TO THE FINANCIAL STRAIN OF HISPANIC CAREGIVERS OF OLDER ADULTS

Abstract Informal caregiving has been shown to have negative effects on the caregiver’s physical, mental, and financial health. To date, studies have mainly focused on the physical and mental health of caregivers; however, finances too are an area of caregiver vulnerability. In this study we examined which types of financial hardships are the greatest predictors of financial strain in Hispanic caregivers (N=184) for persons 50 or older. Data were obtained from the American Association of Retired Persons (AARP) Caregiving in 2020 survey, which oversampled for Hispanic caregivers. A hierarchical regression analysis was conducted to predict caregiver financial strain. Independent variables were entered in three steps: (1) age and gender, (2) emotional strain, physical strain, length of expected caregiving, and attitude towards caregiving (3) taking on more debt, borrowing money, unable to afford basic expenses, late/unpaid bills, using short-term savings, using long-term savings, being unable to save, and moving to a less expensive home. Age and gender were not significant (ΔR2=.007, p=.531). Emotional (β=.309, t=3.512, p<.001), and physical strain (β=.229, t=2.627, p=.009) were both predictors of financial strain (ΔR2=.312, p<.001). Additionally, the specific financial hardships related to financial stress above and beyond steps one and two (ΔR2=.137, p<.001) were being unable to afford basic expenses (β=.356, t=4.161, p<.001), and using long term savings (β=-.308, t=-4.372, p<.001). These results have implications for education and interventions concerning financial hardships and options for Hispanic caregivers of older adults.

International evidence on extending sovereign debt maturities

Portfolio diversification is as important to debt management as it is to asset management. In this paper, we focus on diversification of sovereign debt issuance by examining the extension of the maximum maturity of issued debt. In particular, we are interested in the potential costs to the U.S. Treasury of introducing 50-year bonds as a financing option. Therefore, we first examine international evidence from four developed foreign government bond markets with such long-term debt. The results show that 50-year bonds in these markets trade at an average yield that is at most 20 basis points above that of 30-year bonds. Results based on extrapolations from a dynamic yield curve model using just U.S. Treasury yields are similar.