Payment Failure Research Articles

The Effect of Over-Confidence on Jiwasraya's 2017-2020 Payment Defaults

Overconfidence is a term that refers to the human tendency to estimate their abilities, knowledge, or results with more confidence than they should. PT. Jiwasraya Insurance (Persero), the oldest insurance company in Indonesia which is owned by BUMN, was declared to have failed to pay its customers' policies in 2020. This failure to pay was caused by errors in managing customer funds, namely by collecting funds for JS Products. Saving Plan and investing with customer funds in high risk stocks. The purpose of this research is to find out why Jiwasraya experienced payment failure. Therefore, the variable prices of high-risk shares purchased by companies from 2017 to 2020 is used as a secondary variable. Secondary data was obtained from the Indonesian Stock Exchange and the Financial Services Authority. This study uses. Vector Auto regressive (VAR) analysis technique with Stata/IC 15.0 software. The research results show that it is the Jiwasraya company's share price that influences Jiwasraya's shares in the short term. In the long term, it shows that the share price of Semen Baturaja does not have a significant effect on Jiwasraya's share price. Meanwhile, the share price of the West Java Development Bank has a significant negative effect on Jiwasraya's share price. Then, PP Properti's share price has a significant positive effect on Jiwasraya's share price. The results of this research can be used as consideration for companies and investors in making investment decisions so as not to take high-risk actions because of too high self-confidence.

LEGAL PROTECTION FOR E-COMMERCE TRANSACTION BUSINESS ACTORS IN THE ERA OF DIGITAL TRANSFORMATION IN INDONESIA

Digital transformation contributes to the growth of trade through electronic media (E-Commerce). This provides a great opportunity for business actors to develop their business and increases the chances of consumer default. One possible cause of payment failure is the transaction method that uses the Cash on Delivery method. This research aims to determine legal protection for business actors in buying and selling transactions via E-Commerce. The research method used is normative juridical with descriptive research specifications, data collection is carried out through documentary studies and literature studies, and data analysis is carried out qualitatively through deductive logical thinking. Legal protection for business actors against acts of default committed by consumers is generally regulated in the Civil Code and specifically regulated in the Electronic Transaction Information Law and Consumer Protection Law. The Civil Code explains that business actors have the right to receive payment if their goods reach consumers. If the consumer commits an act of default, the business actor can ask for compensation for losses caused by non-fulfillment of the agreement. Technically, the Consumer Protection Law does not fully protect the rights of business actors as parties to buying and selling transactions via E-Commerce. Because, since the publication of the Consumer Protection Law in 1999, the era of digitalization has not changed, so the existence of the Electronic Transaction Information Law complements this deficiency. There needs to be an update to the Consumer Protection Law to protect the rights of business actors. Without adequate regulations, it will cause new disruptions to the development of the Indonesian economy.

Analysis of Receivables Turnover at PT. Primarindo Asia Infrastructure Tbk Bandung 2019-2021 Period

PT Primarindo Asia Infrastructure Tbk Bandung, a company specializing in the production and marketing of sports/casual footwear, has faced fluctuations in receivables and an annual increase in provisions for the impairment of receivables during the period 2019-2020. This indicates challenges in receivables management and an escalation of the risk of payment failure by debtors. The objective of this research is to analyze receivables turnover and identify obstacles as well as efforts made by PT Primarindo Asia Infrastructure Tbk Bandung in addressing receivables turnover issues. This research utilizes a descriptive quantitative approach to analyze data by illustrating situations using numerical figures, which are subsequently analyzed to present research findings in the form of a research report. Data collection methods involve non-participant observation and interviews. Data analysis techniques use receivables turnover ratios and average collection periods, applying evaluation standards based on Kasmir's theory. Based on the research findings, it is revealed that receivables turnover from 2019 to 2021 is below the evaluation standard set by Kasmir's theory, stating that the ideal receivables turnover is around 15 times.

Legal Issues Involved in Electronic Payments System in India

The Indian economy has developed rapidly after the induction of digital interfaces in commerce, trade, and industry particularly after the popularisation of electronic payment systems or digital banking. Since 2016 when the Government of India announced demonetization, electronic payments have been rising and are expected to continue in the future because the government has promoted these types of payments. Internet penetration in India was 47 percent in 2022 and it was more than 100 percent in urban areas as compared to rural areas, now with the expansion of the information technology-enabled generation which is using digital modes of payments more in their daily transactions has resulted in more than 140 crore rupees each day through various methods of digital prevailing in India. State Governments are also prioritizing and making more efforts to ensure that the unprivileged people should have to be provided access to web services so that they may also make payments conciliatory through this method. Resultantly, there are 103 billion digital transactions worth Indian rupee 166 trillion in the financial year 2023. It is also expected that digital transactions will also rise to 411 trillion by the year 2027. Consequently, on advent of high tech system of fund transfer and its enormous use several cases of fraud have also been taking place on daily basis. The legislation has enacted various laws in connivance with the global laws, to resolve the problem, but they are still prevailing. The present study has been conducted to identify the legal issues and the results arising from these issues and to recommend some pathways to recover from these obstacles. This study further explains the further way to improvement in fund transfer and making payments using digital mode. Consequently, it is found that the present legal system does not have sufficient provisions to stop such fraud, and blockage of money with the UPI, payment gateways, banks, and merchants. There is no single online solution to these problems. The banking ombudsman is working on resolving some of the issues, but due to the red tapism, such transactions of payment failure and fraud websites could not be resolved. Sufficient amendments dealing with such transactions have not been incorporated in the present Consumer Protection Act. Hence, it is recommended that there should be a virtual hearing in the office of the ombudsman as well as in the court of President Consumers Protection.

Legal Protection of Creditors Against Letters of Undertaking as Additional Agreements

This research aims to learn about the Legal Protection of Creditors Against Letters of Undertaking as Additional Agreements. The research method is normative juridical, using deductive thinking and library data collection. One of them is using the Legal Protection Theory to examine problems in LoUs between debtors and creditors so that debtors commit themselves to fulfilling obligations so that they get their rights by bank rules and applicable laws and regulations in the event of payment failure or default with the conclusion of preventive and repressive measures. This research found that a Letter of Undertaking (LoU) is part of an additional agreement or accessory and an alternative third-party guarantee in the form of a statement of the promissory note to fulfil an obligation made by the Debtor. In this modern and rapidly developing era, LoUs are born as credit guarantees or financing in various fields of construction projects, infrastructure projects, and tender bonds, which are used to facilitate business to help smooth national and international trade transactions.

Analysis of banking credit distribution using the vector error correction model

The business model and consequently, the bank’s risk exposure significantly depends on the source of capital (Riabichenko et al., 2019). This research uses vector error correction model (VECM) data analysis to investigate the influence of capital adequacy ratio (CAR), non-performing loans (NPL), loan to deposit ratio (LDR) on the level of credit distribution at commercial banks in Indonesia. Using secondary data, research data was processed using the EViews 12 application with the research population being banking companies listed on the Indonesia Stock Exchange in 2019–2021. The research results show the variables CAR, NPL, and LDR have a significant effect on long-term credit distribution. In addition, the NPL variable significantly influences the credit distribution variable in the short term. The Granger causality test result shows that there is no two-directional causality relationship between the independent variables CAR, NPL, and LDR on the credit distribution variable. The results of this research are in accordance with financial intermediation theory, where the theory explains that savings and loans with high leverage can reduce the possibility of default (payment failure).

Aspect Analysis Of The Transfer Of Name Receivables (Cassie) Due To Tort

The practice of transferring receivables through the CASSIE (Certificate of Assignment for Debt Security) mechanism has become an important part of cash flow management and risk management in the business world. However, the potential risks arising from default, namely the debtor's inability to fulfill obligations under the agreement, also pose a serious challenge. In dealing with this risk of default, a normative approach based on legal, norm and regulatory aspects is the key to understanding the CASSIE legal framework and formulating effective mitigation strategies. From a creditor's point of view, transferring receivables aims to obtain liquidity more quickly, but the risk of default on the part of the debtor is a potential problem. The strategy of diversifying the transferred receivables portfolio and implementing credit insurance are relevant alternatives to overcome this risk. On the debtor's side, the transfer of receivables can have a negative impact when payment failure occurs. Therefore, debt restructuring steps, negotiations with creditors and efforts to restore financial conditions are very important. The impact that will occur due to default in the CASSIE context also deserves attention, considering that the impact can spread to various stakeholders in the business ecosystem. In the era of globalization, analysis must also consider aspects of international law and the potential impact of defaults that cross national borders. The breach of contract which was the main trigger for the transfer of debtors by CASSIE resulted in the transfer of the right to collect debts from debtors who failed to pay to the injured party and institutions, policy makers and researchers in the fields of law and finance to overcome risks with a sustainable approac.

CCP의 결제불이행 처리 제도의 문제점과 개선방안

우리나라에서 CCP의 의무청산 제도의 도입에 대한 논의는 2009년 금융위원회 등을 중심으로 당시 금융위기에 따른 금융시장의 안정과 금융 리스크의 완화를 목적으로 시작되었다. 하지만, 이후 큰 관심을 갖지 않았는데, 최근 코로나 19 사태로 인한 세계적인 충격, 러시아-우크라이나 전쟁 등으로 막대한 경제적 불황이 도래하였고, 그 여파는 리스크의 근본적 재평가와 안전자산에 대한 수요가 고조되었다. 이러한 배경 속에서 CCP의 결제불이행 처리 제도에 대하여 다시 한 번 관심을 갖게 되었다. 이에 이 논문은 우리나라 및 국제적인 차원의 CCP의 결제불이행 처리시 리스크 관리제도를 검토하고 그에 따른 개선방안을 마련하고자 한다.BR 검토한 결과로는 첫째, CCP의 청산회원의 범위와 관련하여 기존 투자매매업만을 포함하고 있지만, 그 외의 투자중개업, 집합투자업, 투자자문업, 투자일임업, 신탁업 등에도 확대할 필요가 있다고 본다. 둘째, CCP의 결제불이행 처리는 채무불이행을 대상으로 하고 있는데, 비채무로 인한 손실에 대한 처리도 할 수 있도록 그 대책을 마련할 필요가 있다. 셋째, CCP의 결제불이행 처리시 은행은 무담보채무까지 손실흡수 대상에 포함하고 있지만, 장외파생상품은 대부분 비상장회사이며, 주주나 채권자가 거래소 그룹이나 청산참가자의 중심으로 구성되어 있다는 점을 고려하여 무담보채무의 손실흡수 부분을 제외하는 부분에 대한 재검토가 필요하다고 본다. 넷째, CCP의 결제불이행 처리시 실효성을 담보하기 위해서는 국제적 차원에서 CCP의 권한의 확대가 필요하다고 하는바, 우리나라도 이에 대한 검토가 필요하다. 마지막으로 CCP의 결제불이행 처리 재원 관련하여 우리나라는 재원의 충분성을 평가할 기준을 마련하고 있지 않은데, 이에 대한 기준을 마련함으로서 금융시장의 안정성을 도모할 필요가 있다.

Analysis of the Existence of Insurance Fraud in the Case of Insurance Claim Payment Failure and the Legal Protection for Insurance Clients in the Insurance Company’s Failure to Pay Claims

Insurance is one of people’s needs as a protection from the loss-causing risks. Based on the insurable interest, people then have an insurance agreement. The legal relation between an insurance company and the insured is based on a written agreement called a policy. In reality, not all claims can be done well. Insurance companies often fail to fulfill its obligation (payment failure), which is caused by several factors, including the allegation of frauds. This research is going to discuss the existence of insurance fraud as a factor in the case of payment failure of an insurance claim. The research employs a normative juridical method using the secondary data in the forms of primary legal materials such as relevant regulations, as well as secondary legal materials such as legal books and literature. The research uses legislation and conceptual approaches. The fraud factor is indicated if the element of intent can be proven when, in doing the transaction, the insurance company’s board has abused their authority, and when the transaction is proven to have influenced the company’s financial health.

A Critical Study On The Impact Of Electronic Banking On Customer Satisfaction

The banking sector has been quickly advancing the usage of Internet banking as a useful and practical instrument to add value for customers. One of the well-liked services offered by traditional banks is to give online users faster, more dependable services. Due to the swift commercial advancement of computer technology, Internet banking can be utilised to draw more clients to execute banking activities at affiliated institutions. The main objective of this paper is to analyse how far the customers are satisfied by using the online banking services. The researcher followed an descriptive method and collected samples through a convenient sampling method with a sample size of 205. From the analysis of the data collected it was observed that most of the respondents are satisfied with the introduction and use of banking in electronic platform as it helps in various ways such as easy access, quick fund transfer and also it was seen that majority of the respondents think payment failure as one of the major disadvantage of electronic banking.

The Risk Management of Gold Pawn Product in Bank Syariah Indonesia (BSI) Krian Branch

The purpose of this research is to analyze the risk management of the BSI gold pawn product in the BSI Krian branch. This research is a qualitative research. In this research, the official of BSI Krian branch served as key informants which have a adequate knowledge about financing process BSI gold pawn. Data collection conducted through interview, documentation, and observation techniques. The result of this research shows that BSI Krian branch implements risk management on the BSI gold pawn product. There are four steps in the process of implementing risk management on the gold pawn product BSI Krian branch; risk identification, risk measurement, risk monitoring, and risk control. Besides implement risk management BSI Krian branch has prepared risk mitigation on the gold pawn product. The mitigation processes are to mitigate the miss gold estimation accuracy, the gold storage risk, the risk of payment failure or jamming, the last but not least is mitigate the gold price drop. In the implementation of risk management and risk mitigation by BSI Krian Branch there are two obstacles those are from internal and external banks. In the effort to face that obstacles, BSI Krian branch has had an effort to overcome both from internal and external banks. With the implementation of risk management on the gold pawn product by BSI Krian branch can prevent and minimize the risk which arise from that financing

Analisis Pengaruh Faktor Internal dan Faktor Eksternal Terhadap Non Performing Financing pada Bank Umum Syariah

Islamic banking at the moment is one of the most important things in the economy in Indonesia. Non Performing Financing (NPF) is one of the ratio that is considered by Islamic banking. NPF is an indicator that shows the risk of payment failure in the financing provided by Islamic banking. This study aims to analyze the influence of internal factors and external factors on Non-Performing Financing. The study was conducted at Islamic Commercial Banks in Indonesia for the 2014-2018 period. The internal variables used are the Capital Adequacy Ratio (CAR) and the Financing to Deposit Ratio (FDR) and the external variables used are the inflation rate, Gross Domestic Product (GDP) and the BI Rate. The results of the research shown by the t test show that partially the CAR and BI Rate variables have a negative effect on NPF meanwhile FDR, inflation and GDP variables have no effect on NPF.

PENGUKURAN KUALITAS WEBSITE PENJUALAN TIKET DENGAN MENGGUNAKAN METODE MCCALL

Ticket reservations through agents or ticket sales points are very conventional. The web is the choice media to sell tickets for now. Customers can easily buy tickets like transportation ticket, events, and playground tickets through the web. Problems faced by some web users are the lack of responsiveness of the web, unstable connections, difficult usage, and the possibility of payment failure when transaction is done. Therefore, it is necessary to measure software quality using the McCall method. From the measurement results, web ticket sales get 80.56% which means the quality of the ticket sales web is good. Although the overall result is considered good, but ticket sales service providers must continue to improve the quality of the web.

Mobile Payment Failure during Travel

ABSTRACT The ‘cash-free’ phenomenon in China has been noted worldwide, thereby indicating that tourists in this country heavily depend on mobile payments during their travel. However, this dependence may become problematic when mobile payment transactions fail. Thus, the present study systematically evaluates mobile payment failure by examining the awareness of tourists, explores the parties involved in mobile payment, and proposes a conceptual model of failure assessment on the basis of the multi-hazard risk assessment model. Results show that mobile payment failure is related to four parties, namely, merchant, network operator, service provider, and user. Practical implications are further discussed in this paper.

The Influence of Accounting Information Quality on Trade Credit with Inventory Liquidation Cost as Moderating Variable

This research is aimed to examine (1) effect of accounting information quality on trade credit, (2) moderating role of inventory liquidation cost on the effect of accounting information quality on trade credit. Research sample are 122 manufacture companies listed in Indonesian Stock Exchange 2013-2016. Data analysis uses multiple regression test. Results show that accounting information quality has effect on trade credit usage. It indicates that suppliers advantages of free of information asymmetric, direct involvement to company’s business activities, and higher recovery rate of payment failure makes suppliers are less likely to use accounting information to evaluate company’s credit worthiness; further, it leads to high trade credit fund resource used by company with low accounting information quality. Inventory liquidation cost moderates the effect of accounting information quality on trade credit usage. It indicates that suppliers will give trade credit for company with low accounting information quality if inventory liquidation cost is low. Keywords : Accounting Information Quality, Trade Credit, Inventory Liquidation Cost DOI : 10.7176/RJFA/10-12-14 Publication date :June 30 th 2019

Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market

Despite the globalisation of European soccer, each professional league exhibits specificities. French Ligue 1 sometimes contends with the trading-off of financial performance against sporting performance of its teams in European soccer competitions, and its inner auditing body, the Direction Nationale du Contrôle de Gestion (DNCG), is in charge of controlling clubs’ financial accounts. Moreover, Ligue 1 operates with one of the best competitive balances in the Big Five, which is detrimental to its clubs’ success at the European level. However, the league and a number of clubs have not been able to curb payroll inflation and have not avoided being recurrently run in a deficit and accumulating debts, in particular payment arrears and player transfer overdue. Lax management occurs, since very few clubs have been sanctioned by a payment failure, even fewer by liquidation, and there has been no bankruptcy. The concept of a soft budget constraint theoretically encapsulates such empirical evidence. The novelty of the paper is to establish a link between the soft budget constraint and the players’ labour market where it crucially triggers market disequilibria: an excess of demand for superstars’ talents and an excess of supply for journeymen players are modelled. Data paucity about player individual wages hinders econometric testing of the aforementioned link and the model. However, a look at transfer fees that concentrates on a few of the top European soccer clubs provides a first insight into the arms race for talent that fuels an excess of demand for superstars and dips a number of clubs’ finance into the red.

The CLoTH Simulator for HTLC Payment Networks with Introductory Lightning Network Performance Results

The Lightning Network (LN) is one of the most promising off-chain scaling solutions for Bitcoin, as it enables off-chain payments which are not subject to the well-known blockchain scalability limit. In this work, we introduce CLoTH, a simulator for HTLC payment networks (of which LN is the best working example). It simulates input-defined payments on an input-defined HTLC network and produces performance measures in terms of payment-related statistics (such as time to complete payments and probability of payment failure). CLoTH helps to predict issues and obstacles that might emerge in the development stages of an HTLC payment network and to estimate the effects of an optimisation action before deploying it. We conducted simulations on a recent snapshot of the HTLC payment network of LN. These simulations allowed us to identify network and payments configurations for which a payment is more likely to fail than to succeed. We proposed viable solutions to avoid such configurations.

Customer Satisfaction on e-SERVQUAL in Islamic Online Banking Services

The recent development in the ecommerce services has shown a variety of established companies participating in the web business environment including Islamic banks. Business with the mostexperience and success in using ecommerce are beginning to realize that the indicator of success or failure of the ecommerce environment was included in the online services. Nowadays, the trend ofa business is to serve the customer with best quality of services to enhance the consumer satisfaction and compete with the global competitors as online services enabled registered user to make productspurchase transaction only through website such as check and manage financial standing, transfer funds, bill payment, prepaid reload and so forth. However, in recent times, Islamic banking users faced problems with the online system such as cannot log in to the system, payment failure and mostly security and privacy hindrance. Therefore, this study aimed to investigate the relationship between electronic service quality (e-SERVQUAL) and customer satisfaction towards IslamicOnline Banking Services users. Based on the sample size, only 76 respondents were selected to participate in this study by using a convenience sampling. Further, Pearson correlation and multipleregression were reported to analyze the mentioned relationship. The findings have shown that there is a positive relationship between e-SERVQUAL and customer satisfaction in using Islamic onlinebanking services. Based on the findings, Islamic online banking developer is recommended to improve more on their responsiveness in order to provide quick response to their customer’s requirements. Moreover, they also should be more reliable in providing accurate information in performing the promised services. They must assure that all of their customers can quickly get responds and true feedback regarding their problems to ensure customer satisfy with service provided. Besides, the safety of the website and the protection of customer information alsoconsidered a vital action that should be concerned in order to increase the customers’ satisfaction.

Insolvency in French Soccer

This article examines insolvency (payment failure) in the top three divisions of French soccer. Between 1970 and 2014, we observed 79 cases of insolvency arising from participation in the top two or three (since 1993) divisions. We find that demand (attendance) shocks can account for insolvency to a significant degree. We also find that insolvency can be explained by club status and ownership structure, with professional status and the association structure being more likely to lead to insolvency. We also examine the postinsolvency performance of soccer clubs and find that the adverse consequences of insolvency are long lasting.

Internal and External Validity of Experimental Risk and Time Preferences

Using a unique field experiment from Canada, we estimate individual preference over risk and time and show considerable heterogeneity in both dimensions and relatively stable distributions across our various specifications, which include hyperbolic, quasi-hyperbolic discounting as well as subjective failure probability over future payments. We investigate the prediction power (transportability) of the estimated preference parameters when used to explain the take-up decision of higher education grants where financial stakes are approximately seven to fifty times larger than the cash transfers used to elicit preferences. We find that both long-run discount factors and subjective payment failure risk parameters have a high degree of transportability across tasks, while parameters characterizing short-run discount preferences are irrelevant when considering higher-stakes decisions.