Asset Position Research Articles

Asset home bias in debtor and creditor countries

Why do debtor countries have on average a less diversified international portfolio than creditor countries? With two symmetric countries, the existing literature has showed why portfolios are home-biased to the same degree across countries. We show that, in a model with debtor and creditor countries, a new hedging motive of net external positions implies a short (long) position of both home and foreign assets in the debtor (creditor) country. Marginally, the debtor (creditor) country loses (gains) the net foreign asset (NFA) as a diversified portfolio on top of the above symmetrically biased portfolio, which intensifies (dilutes) the home bias there. An extended model with both equity and bond assets also yields global two-way capital flows that are in consistent with the data. The theory helps understand the financial capital flows between the debtor developing and creditor developed countries during the financial globalization from 1990s, and receives empirical support.

Across-time risk-aware strategies for outperforming a benchmark

We propose a novel objective function for constructing dynamic investment strategies with the goal of outperforming an investment benchmark at multiple points of evaluation during the investment time horizon. The proposed objective is intuitive, easy to parameterize, and directly targets a favorable tracking difference of the actively managed portfolio relative to the benchmark. Under stylized assumptions, we derive closed-form optimal investment strategies to guide the intuition in more realistic settings. In the case of discrete rebalancing with investment constraints, optimal strategies are obtained using a neural network-based numerical approach that does not rely on dynamic programming techniques. Compared to the targeting of a favorable tracking difference relative to the benchmark only at some fixed time horizon, our results show that the proposed objective offers a number of advantages: (i) The associated optimal strategies exhibit potentially more attractive asset allocation profiles, in that less extreme positions in individual assets are taken early in the investment time horizon, while achieving a similar terminal terminal wealth distribution. (ii) Across-time risk awareness leads to more robust performance and a higher probability of benchmark outperformance during the investment horizon in out-of-sample testing. The resulting strategies therefore exhibit desirable characteristics for active portfolio managers with periodic reporting requirements.

How Should Crypto Lending Be Regulated Under EU Law?

The collapse of Genesis is the latest in a cascade of failures of crypto lenders. The last year has seen numerous major crypto lenders, such as Celsius, Voyager and BlockFi, going out of business in domino-like fashion. The failures have revealed the vulnerabilities of crypto-market lenders’ business model, most notably the liquidity and maturity mismatches in their loan portfolios, and their markedly weak corporate governance. The present article explores avenues to regulate crypto lending within the framework of EU financial services regulation. It argues that crypto lenders should be taken as falling within the definition of credit institutions under EU law, and thus, as a result, should be subject to the stringent licensing and prudential requirements introduced by the Capital Requirements Directive and Regulation. Prudential regulation is one of the ways that have been suggested for the regulation of crypto-market operators, alongside the investor protection framework. Taking into account that crypto lenders easily operate on a cross-border basis and that prudential regulation is fully harmonized in the EU, we take an EU-wide perspective and focus our analysis on EU law, rather than member state laws. In addition, prudential regulation can deal with any systemic risk issues with which investor protection regulation cannot deal. However, in order to avoid moral hazard and not give investors the false impression that crypto lenders are safe too-big-to fail institutions, we suggest that crypto lenders should not enjoy the full protection of prudential regulations. In particular, they should not be offered lender of last resort support and they should not be allowed to subscribe into a deposit insurance scheme. Even though it is often said that crypto markets pose no risk to the regulated sector due to limited interconnectedness, it should be noted that due to the high leverage of crypto investors, the real risk to the regulated sector comes from the possibility of crypto investors massively liquidating their positions in other asset markets.

MARITAL PROPERTY IN INDONESIA

This study examines the position of marital assets in the law and customary law of the Dayak ngaju in the Indonesian legal system. Marital assets in the 1974 Marriage Law and KHI are legal products originating, one of them from Customary Law, which still leaves problems in its implementation. As a result, judges differ in decisions in settling marital assets in Indonesia. This paper applies a type of normative research. Besides that, it also uses the library research method, which examines the literature analyzed qualitatively using a statutory approach and a conceptual approach to Islamic Economic Law. The results of this study indicate that UUP marriage can be reviewed, one of which can be sourced from customary law, especially the institutionalized Dayak Ngaju. Marital assets should provide economic guarantees for women's and children's futures through the distribution of marital assets.

Coexistence of money and interest-bearing bonds

I construct a monetary model with agents that face idiosyncratic shocks to how they discount future utility. Once shocks are revealed, agents trade money for bonds in a financial market, then money for goods in a goods market, and finally move into the next time period. Away from the Friedman rule, money is scarce so that those who turn out to care little about the future, sell bonds at a discount to obtain money for immediate consumption—in the financial market, they reduce the savings value of their asset portfolio to obtain more liquid asset positions. This generates a net re-distribution of savings from agents that attach a low value to the future, to agents that attach a high value to the future. Ex-ante utility increases because losing savings when the future has low value, is dominated by receiving savings when the future has high value. The scarcity of money, however, leads to binding liquidity constraints in the goods market, which reduces ex-ante utility. The financial-market effect can dominate the goods-market effect, in which case the coexistence of money and interest-bearing bonds arises for an optimal policy.

Technical Analysis in Investing

Technical analysis helps investors to better time their entry and exit from financial asset positions. This methodology relies solely on past information on financial assets price and volumes to predict a financial asset’s future price trend. Modern research has established that combined with other sentiment measures such as social media, it can outperform the standard buy and hold strategy. Moreover, it has been documented that novice and professional investors technical analysis in their investing strategy. An experienced investor should combine fundamental analysis and technical analysis for better trading results. Programmers use technical analysis to create algorithmic trading systems that learn and adapt to the changing trading environments and perform trading accordingly without human involvement. There are hundreds of technical tools offered by known trading platforms. investors must use specific tools that fit their trading style and risk adoption. Moreover, different financial assets such as stocks, exchange trade funds (ETFs), cryptocurrency, futures, and commodities demand different sets of tools. Furthermore, investors should use these tools according to the time frame they use for trading. This paper will discuss different technical tools that are used to help traders of different time frames and different financial assets to achieve better returns over the traditional buy and hold strategy.

UNDERSTANDING ACCOUNTING IN SUPPORTING REPORTS QUALITY FINANCE AT PT. PASANGGRAHAN CITRA PERSADA

Financial statements are a form of accountability for the management of economic resources owned by an entity. Published financial reports must be prepared in accordance with applicable accounting standards so that these financial statements can be compared with the financial statements of the previous period or compared with the financial statements of a clear entity. Quality of financial reports - (financial statement) is the final result of the process of accounting activities or a summary of financial transactions. Financial statements are prepared to provide information about the position of assets, debts and capital that occur in the company's household as well as its profits and losses. The characteristics of financial reports in terms of quality are based on the Accounting Standards Guide (PSAK), namely: Understandability, Relevance, Materiality, Reliability, Honest presentation, Substance over form, Neutrality, Fair consideration and Completeness. Based on the problems mentioned above, we conducted community service at PT Pasanggrahan Citra Persada, which is an l‹loantral‹tor company engaged in structural work, architects and interiors, with an expert and skilled workforce. PT Pasanggrahan Citra Persada emphasizes sustainable company growth to become one of the best quality construction companies in Indonesia with competency development through human resource development, technology management and good corporate governance.

Long‐term determinants of valuation effects

AbstractThe progression of financial globalization increases the importance of valuation changes of foreign assets and liabilities, similar to that of current account in explaining the recent net foreign asset position of countries around the world. This study analyzes the long‐term determinants of valuation effects by using panel regression with 10‐year data span of 188 countries. The main findings are as follows. First, the size of foreign assets and relative portion of risky assets are positively associated with valuation effects, which suggests that general principles for long‐term individual investors also hold for an entire country. Second, current account is negatively associated with valuation effects, which suggests that these two mechanisms stabilize each other in overall international adjustment process. Third, exchange rate changes are often positively associated with valuation effects, which at times depend on foreign asset and liability positions. Fourth, per capita GDP are negatively associated with valuation effects. Fifth, current account is mainly associated with valuation effects due to asset price changes, but exchange rate changes and foreign asset and liability positions are mainly associated with valuation effects due to exchange rate changes. The relative proportion of risky assets is associated with both types of valuation effects.

Kedudukan Aset Milik Pihak Ketiga Yang Dijadikan Sebagai Boedel Pailit Oleh Kurator Berdasarkan UU Kepailitan Dan UU Hak Tanggungan

Mortgage is one type of guarantee that lenders are interested in offering loan facilities for because it is seen as a good guarantee and simple to implement. In reality, the guarantee granted by the Debtor to the Creditor bound by this Mortgage does not always belong to the Debtor but rather to a Third Party who has hand over their assets as guarantee for the payment of the Debtor's obligation. Of course, this only becomes a problem if the debtor is unable to repay the creditor; in that case, the creditor may decide to use the bankruptcy process as the last resort to address the debt issue. There are frequently issues with the Curator's power to add all assets connected to the Debtor's assets, including Third Party assets pledged as collateral, to the bankrupt estate. With reference to the Law Number 37 of 2004 on Bankruptcy (K-PKPU Law) and Law Number 4 of 1996 on Mortgage, this study intends to perform a deeper analysis relating to the authority of the Curator as well as the situation of assets belonging to Third Parties bound by Mortgage in the bankruptcy case. This study was put together using a qualitative method and a normative juridical approach. Data were collected online through a literature review, and they were processed in an analytical descriptive way. The findings of this study show that, first, the new Curator has the ability to enter Third Party assets if, after two (two) months, Separatist Creditors have not exercised their right to execution as provided for in Article 59, paragraphs (1) and (2) of the K-PKPU Law. Second, under Article 59(1) of the K-PKPU Law, which refers to the principle of lex posteriori derogat legi priori and views the context of the case as bankruptcy, the Curator is actually given the authority to conduct auctions due to the position of assets belonging to Third Parties in the bankruptcy estate, then to resolve this case related to the position of Third Party assets in the bankruptcy estate refers to the K-PKPU Law.

Financial development and real exchange rate misalignments effects on environmental pollution

The research examined the influence of the fundamental exchange rate misalignment and Least Developed Countries (LDCs) in Asia and Africa’s financial development on CO2 emissions in Asian countries using panel data from 1970 to 2021. The methodology consists of ARDL bound testing and PMG/ARDL estimators with dynamic OLS estimators. The results reveal that the long-run real exchange rates for least developed countries (LDCs) are expected to rise in CO2 emissions in Asian and African countries with improved trade and net foreign asset positions. The relative productivity and trade openness also increase the exchange rate, which also plays a vital role in the growth of CO2 emissions. Except for Egypt, all least developed countries (LDCs) currencies are overpriced throughout the research period at the same time; it would be harmed by increased openness, foreign direct investment inflows, and currency misalignment. Overvaluation harms Bahrain’s economic growth. In comparison, undervaluation helps Egypt that currency misalignment does not affect financial growth in any LDCs over the long run. In the short-run, more real investment, net foreign assets, and official assistance inflows would enhance financial growth in Qatar, Bahrain, Singapore, and South Korea. In contrast, trade openness would slow it down in Egypt and Kuwait. The study suggested that the poor economic performance is due to RER misalignment, which occurs when exchange rate policies are improper and causes a rise in CO2 emissions in many developing countries.

Real exchange rate misalignment and economic growth in East African least developed countries

The behavior of real exchange rate remained an important policy concern for small open economies as its poor management adversely affects their economy with substantial welfare losses. This study examined the main drivers of real effective exchange rate (REER) misalignment and its effect on the economic growth of East African least developed countries (LDCs). The study applied Pooled Mean Group (PMG) and dynamic OLS estimators for panel and ARDL Bound testing for time series data over the period 1980–2019. The panel results revealed that the REER of LDCs were significantly misaligned for the study period. The REER appreciates for an improved terms of trade and net foreign asset position, while it depreciates for an increased trade openness and broad money supply in the long-run. The panel results also confirmed that the GDP per capita would improve for an increase in real investment and human capital, while it decline for an increase in openness, net foreign aid inflows and REER misalignment in the long-run. The ARDL bound testing results generally support the panel estimation results. In the short-run, the REER misalignment would impede growth of Ethiopia while it promotes growth of Kenya. Thus, the central banks and policy makers of East African LDCs should initiate a consistent macroeconomic policies and regulatory frameworks focusing on the main drivers of equilibrium REER to correct currency misalignment and to support their promising economic growth.

Research on Factors Affecting SMEs’ Credit Risk Based on Blockchain-Driven Supply Chain Finance

The development of blockchain-driven supply chain finance aimed to solve the financing problems of SMEs. However, credit risk is expanded, and even transmitted to the whole supply chain, due to their connection, so that it becomes more difficult to effectively identify the credit risk of SMEs. The purpose of this paper was to examine the factors affecting SMEs’ credit risk in the mode of block-chain-driven supply chain finance. This research proposed an entropy weight method to construct independent variables and used logistic regression to examine whether the financing enterprises, core enterprises, assets position under financing, blockchain platform, and supply chain operation have significant impacts on credit risk. The panel data, originating from CSMAR on fifty-six quoted SMEs, included eight core enterprises and twenty-six blockchain enterprises, between 2016 and 2020. The results showed that the financing enterprises, core enterprises, asset position under fi-nance, blockchain platform, and supply chain operation have significant impacts on SMEs’ credit risk when the confidence level is 90%. The financial status of financing enterprises can reflect the credit status of SMEs. Core enterprises give credit guarantees to SMEs, and the business transactions between SMEs and core enterprises affect the credit risk through the asset position under financing. Meanwhile, blockchain platforms can solve the problem of the information asymmetry of the par-ticipating enterprises in supply chain operations. At the same time, the supply chain operation is also an important factor affecting the credit risk. This conclusion provides a reference for the ap-plication of blockchains in supply chains, to reduce the credit risk. At the same time, the selected indicators were more comprehensive, which provided a strong basis for the subsequent construc-tion of a credit risk assessment model using key factors.

Menyoal “Kerugian BUMN” Dalam PP Nomor 23 Tahun 2022 Tentang Pendirian, Pengurusan, Pengawasan, dan Pembubaran BUMN

BUMN is always in the spotlight. BUMN promotes public welfare and owns at least 51% of the state's shares. This 51 percent share creates the impression that BUMN's riches are the state's wealth, hence its loss is the state's loss. BUMN losses are linked to corruption. The legality of the loss is being disputed. There's nothing improper because of the legal position of BUMN assets. Currently, the government has changed PP No. 45 of 2005 about the Establishment, Management, Supervision, and Dissolution of SOEs to add "BUMN losses" to Article 27 paragraph (2). By adding "BUMN loss," the government aims to underline that BUMN losses are not state losses. If accurate, this statement merits praise, but it's not enough to absolve SOEs of state losses. Thus, laws and regulations pertaining to the legal position of public financing in SOEs must be harmonized at the highest legal level.

KEWENANGAN ISTRI DALAM PENGGUNAAN HARTA SUAMI MENURUT FIQH AL-SYAFI’IYAH

This study is very interesting because it explains the position of the husband's property and how the provisions for the use of the wife against the husband's property according to Fiqh Al-Syafi'iyyah. This research is a library research with a descriptive qualitative research type through a normative approach, using a documentation data collection technique, while the data analysis uses a transferability technique. The results of his research that the position of the husband's assets obtained during marriage can be categorized as joint assets between husband and wife which are included in the concept of syirkah abdān or syirkah muwafadlah. According to Fiqh Al-Syafi'iyyah, the use of a wife against her husband's property is not permissible without the permission of the husband. However, if the husband gives permission or the wife knows that the husband allows his wife to take only what is rightfully hers, then the wife may take and use it. This is because the husband's personal property is wholly owned by the husband, even though some of the property belongs to the wife. Unlike the case with husband and wife syirkah assets, where they can use it as much as their respective rights in the property.

SONOMA: a Small Open ecoNOmy for MAcrofinance

We develop a new small open economy model (SONOMA) in which domestic corporate debt and equities are affected by shocks to both external credit and equity markets. In a novel empirical analysis of several small-but-developed economies, we show that both external debt and equity shocks are important determinants of domestic economic fluctuations, corporate leverage, and net foreign asset positions. SONOMA replicates our empirical facts about asset prices, financial flows, and economic activity.

Universal Basic Income in a DevelopingEconomy with a Large Informal Sector

We analyze the implication of a Universal Basic Income (UBI) policy introduction in a country with a large informal sector. The model features frictions in the labor market, incomplete markets, risk-averse workers, and heterogeneity in occupation and asset position. A payroll tax on formal firms finances policies to insure workers. We calibrate the model to the Brazilian economy. The introduction of a budget-neutral UBI that replaces an existing Unemployment Insurance (UI) policy reduces welfare by around 1%. However, introducing UBI together with the UI policy increases the welfare of workers by around 0.8%. Poorer households are the ones that benefit the most from the UBI. The maximum welfare gain is achieved with a combined UBI+UI policy with an ex-post payroll tax of 20%. When replacing UI, UBI cannot increase aggregate welfare for any value of the transfer.

ANALISIS KEDUDUKAN HARTA BERSAMA DALAM HUKUM ISLAM DAN KOMPILASI HUKUM ISLAM

This study discusses the analysis of the position of joint property in Islamic law and the compilation of Islamic law articles 96 and 97. The purpose of this study is to determine the position of joint property based on the view of Islamic law and compilation of Islamic law articles 96 and 97 as well as the similarities and differences in the position of joint assets according to Islam law and compilation of Islamic law. The author uses a type of library research, which is to become library material as the main data source, by writing, clarifying, and reducing data, especially those related to joint property, both in the study of compilations of Islamic law and Islamic law. The results showed that 1). The position of joint property based on the view of Islamic law can be understood that joint property is syirkah in the sense that it is a form of cooperation or partnership between husband and wife. Syirkah in joint property is a form of cooperation between husband and wife to build a sakinah, mawaddah, warahmah family, including property in marriage. Regarding this joint property, the husband or wife can act to do something or not to do something on the joint property through the agreement of both parties. 2). The position of joint property based on the view of the compilation of Islamic law articles 96 and 97 can be understood that ownership of property in marriage determines the balance between husband and wife in married life. Because they are still married. They have the same rights to the joint property. 3). Equality in the position of joint property according to Islamic law and compilation of Islamic law lies in the distribution of property, in the event of a divorce, the distribution of joint property can be carried out in peace. The division of joint property according to Islamic law and compilation of Islamic law is not absolute because in principle the philosophy in the distribution of joint property is a value that can be achieved by deliberation based on the principles of faith, justice, balance, legal protection, deliberation and compassion. While the difference lies in the concept of joint property. Islamic law does not recognize the name of joint property, Islam views that the wife gets good protection regarding physical, spiritual, moral, material, housing, maintenance costs, and the education of children is the full responsibility of the husband as the head of the family. Meanwhile, according to the compilation of Islamic law, it is explained that joint property is property obtained during marriage as joint property.

Integrating heritage assets in large commercial complexes: de-contextualization and re-signification of memory in Shanghai

Since early this century, multiple large-scale commercial projects in Shanghai and other Chinese cities incorporate heritage assets for the creation of new identities after de-contextualisation trough demolition of complete city blocks. This tabula rasa approach resulted in a discontinuity of the meaning and use that local communities gave to these heritage buildings and a re-appropriation by new users in a context of consumerism. This paper studies two cases in Shanghai city center: Jing An Kerry Centre and Greenland Bund Centre, where heritage buildings related to the memories of Communism, trading societies and Christianity are incorporated into high-density high-end commercial redevelopment. As we argue, the study of heritage conservation methods and urban design approaches reveals profound discontinuities in the position and meaning of heritage assets, which respond to important political and economic performance requirements. This paper puts forward two main arguments. Firstly, that the choice of heritage conservation methods and design approaches aligns with the new official narrative of the desired image of Shanghai as a prosperous global city rooted in Communism. Secondly, that the de-contextualisation of heritage assets within a new corporate urban context motivates specific heritage-related landscape, urban and architectural design responses, that contribute to their re-contextualisation in a new sanitized urban environment.

KEDUDUKAN HUKUM HARTA PERKAWINAN DALAM PERKAWINAN SIRRI DALAM PERSPEKTIF HUKUM INDONESIA

Marriage is a human right that is protected by laws and regulations, the role of the state in regulating the occurrence of marriage. The marriage that occurs causes a series of legal relationships that occur both before and after the marriage. One of the objects of the legal relationship is the existence of marital property. In this study using normative research as well as a law approach and a conceptual approach. This study will examine more deeply about the position of assets from the results of sirri marriages in the legal perspective in Indonesia. If their marriage is legal then the consequences of their marital property can also be enjoyed by husband and wife so that the opposite applies if the marriage is not valid then their marital property will not benefit them. . Sirri (secret) marriages, or often sirri marriages, are known to those who are Muslim. Sirri marriages are unregistered marriages. In the Compilation of Islamic Law (KHI) the rules for those who are Muslim. Also do not know sirri marriage. KHI also regulates the obligation to register marriages, in addition to fulfilling the pillars and requirements of marriage.

Determinants of indebtedness and institutional credit to rural agricultural households: an empirical evidence from South India

PurposeThis article attempts to understand the pattern of credit (loan) among agricultural households and identify the correlates of their access to institutional credit for policy imperatives. It also focuses on the inclusivity of institutional credit and debt pattern in terms of outstanding loan in the southern region of India.Design/methodology/approachThis study employs the Tobit model along with the Heckman selection model to study the impact of various factors on the institutional borrowing and the amount outstanding.FindingsThe findings reveal that the access to credit is strongly associated with the socio-economic and demographic characteristics of agricultural households in South India. Asset position of households and size of holding are positively related with the probability of household having access to institutional credit. Education and family size are also found to be associated with higher access to formal credit. On the other hand, the socially disadvantaged households have lower access to formal credit. Similarly, other variables – assets, holding size and education – are associated with higher credit per household.Research limitations/implicationsThe findings indicate that the strategies to develop agriculture in southern India must encompass efforts to bring the small and marginal farmers under the coverage of institutional credit.Originality/valueThere are very few studies that have explored the credit access in South India from the perspective of land class despite the government’s attempts to include small and marginal farmers in the ambit of formal financial services.