Sound Finance Research Articles

Supply chain finance on corporate debt financing behavior under uncertainty

At present, the world is undergoing a major change that has not been seen in a century. How to deal with the increase in environmental uncertainty has become an important problem facing the high-quality development of Chinese enterprises. Chinese enterprises generally face financing constraints, and weak debt financing channels hinder the process of high-quality development of enterprises. How to improve debt financing capabilities has become a practical problem that Chinese enterprises urgently need to solve in response to the increase in environmental uncertainty. This paper first introduces the concept, characteristics and common patterns of supply chain finance , and also explains the definition of uncertainty environment and its impact on corporate operations and financing. By systematically combing through relevant domestic and foreign literature, this paper summarizes the results of existing research on supply chain finance, uncertainty environment and corporate debt financing behavior, laying a theoretical foundation for subsequent analysis. Secondly, this paper demonstrates the specific application of supply chain finance in an uncertain environment and its impact on corporate debt financing behavior through case analysis. By analyzing the success factors of these cases, such as risk management, support from financial institutions and technological innovation, the application value of supply chain finance in an uncertain environment is revealed. It is hoped that theoretical support and practical guidance will be provided for policymakers, financial institutions and enterprises to promote the development of supply chain finance and promote sound financing of enterprises.

Modern Monetary Theory and Energy Conservation: An Institutionalist Approach to Fiscal Policy and Energy Conservation

Abstract: This paper will set out to develop a policy proposal that is couched in the Modern Monetary Theory (MMT) framework of fiscal policy analysis. MMT teaches us that a sovereign government that issues a free-floating currency is not bound by the tenets of what can be termed “sound finance.” Sound finance suggests that all government spending is preceded by the taxing or borrowing of the currency being spent. According to MMT, since the currency is issued by the sovereign nation during the process of spending, then this spending must take place before any taxing or borrowing is done. A federal deficit is not something to be eliminated but is the normal situation, with inflation being the only real measure of spending exceeding economic capacity. Sovereign governments are currency issuers, and the money has value if the government is willing to accept it in payment to itself. This creates policy space for spending programs that are socially and ecologically beneficial. Similarly on the tax side, there is policy space to structure the tax system in a politically determined way. The tax system is one way in which the citizens of a nation engage economically with the government. The tax obligation serves as a value anchor for the fiat currency. The tax system can be designed to incentivize behavior in line with a more ecologically sustainable future. This paper will suggest that by taxing living space in a progressive manner, multiple social and economic goals can be accomplished as the economy is transitioning toward a more environmentally sustainable future.

PEMBERDAYAAN KEMITRAAN MASYARAKAT MELAUI BADAN USAHA MILIK DESA (BUMDESA) SEBAGAI PENGGERAK EKONOMI MASYARAKAT GUNA MENCAPAI SDGs DESA DI ERA DIGITAL

Village-owned enterprises (BUMDesa) are village business institutions managed by the community and village government to strengthen the village economy and are formed based on village needs and potential. In practice, problems have been found related to aspects of BUMDesa development: promotional constraints, weak marketing networks, financial management, and administration constraints, and low human resource skills in mastering communication technology. For this reason, this service program is carried out to provide digital marketing assistance so that BUMDesa Amarta, Pandowoharjo Village, Sleman have digital media that actively market their products through content that stimulates consumers to make purchases. Apart from that, to support the development of BUMDesa, management is targeted to be formed by assisting with rebranding, sound finance, and marketing. The method used by the proposer to realize the target is through workshops related to marketing communications management, virtual marketing communications, management, and finance. Additionally, website creation, social media, and assistance in creating virtual communication content (video profiles, packaging, product photos, e-catalogs, e-pamphlets) are also carried out to support digital-based marketing activities. The service results are in the form of increased knowledge and skills in using websites, e-commerce, and financial systems, as well as skills in creating product photo content. The conclusion from the implementation of the service is that providing training and mentoring contributes to increasing the knowledge, skills, and abilities of Amarta BUMDesa managers utilizing digital technology.

Post-acute care in China: development, challenges, and future prospects

Introduction: Post-acute care has been proved to be a crucial component of the health care system which promotes autonomous living functions, reduce unnecessary hospitalization, prevent unnecessary placement in a long-term care facility, and coordinate care between different levels of care.Different countries have built various forms of a PAC systems for decades. In light of the ongoing payment reform and population aging, PAC is becoming increasingly important as a part of the integrated health system in China. Based on comprehensive literature review, this paper summarizes Chinese health policies and progress that addressed PAC system in recent decades and provides outlook for future development.
 Methods: We based our review on published work and grey literature, including reports (international and domestic) and government policy documents. We searched PubMed, Google Scholar, EconLit, MEDLINE, Social Science Research Network, Wiley Online Library, and China Knowledge Resource Integrated Database for relevant research published since January 2009, until June 2022. We restricted our search to works published in English or Chinese and used the search terms “post-acute care”, “rehabilitation”, “nursing care”, “intermediate/transitional care”, “continuous medical/healthcare”, AND “China”, and combinations of these terms.
 Results: In the past decade, China has released various policies to support and regulate the development of rehabilitative and nursing facilities, in order to meet the increasing demand for PAC, including the building of rehabilitation and nursing facilities, strengthening PAC at the primary care level, constructing a tiered rehabilitative network, and experimenting innovative payment methods. However, the challenges and gaps remain. China lacks clinical consensus for PAC delivery and continues to face a severe shortage of PAC resources, both in terms of facilities and professionals. Moreover, quality of PAC at the primary level health facilities needs improvement for the hierarchical care system to function well. The development of a sound financing and payment mechanism for PAC services is still at the initial stage.
 Conclusions: This is the first paper comprehensively examining the current development progress of PAC as a whole, and point direction for future PAC system development in China.In its overall health system design, although the name of PAC is not explicitly stated in domestic policy documents, it is considered as an integral part towards a more continuous system, and a preliminary framework of the PAC system has been established through various efforts. To promote the further development of China’s PAC system, attention should be given to setting up of official definition and clinical guidelines, development of sound financing and payment models, increasing public and private investment in PAC infrastructures, establishing health provider requirements, strengthening the training and retaining of professionals and development of unified information system for PAC based on functional assessment. 
 

Qard Al-Hasan Revitalization as a Financing Alternative for Micro, Small, and Medium Enterprises: An Analytic Network Process Approach

Purpose: The purpose of this research is to explore aspects of the application of qard al hasan that support the successful implementation of qard al hasan as an Islamic crowdfunding instrument to finance Micro, Small, and Medium Enterprises (MSMEs). Theoretical framework: The proper financing model is required to minimize the risk of Non Performing Loan of qard alhasan financing, so it can serve as an alternative access to financing for MSMEs that are classified as feasible but unbankable businesses. Design/Methodology/Approach: This research utilized the Analytic Network Process (ANP) which is the result of a literature study, and the opinions of practitioners and experts. Findings: To successfully implement qard al hasan as a financing instrument, it must be supported by internal and external aspects of the institution providing qard al hasan financing. Internal aspects consist of system and institutional management sub-aspects. The system sub-aspect consists of the qard al hasan distribution system, fund collection system, revenue system, and internal control system. Institutional management sub-aspect consists of human resources, organizational structure, governance, and business segment of the institution. External aspects consist of customer and authority sub-aspects. The customer sub-aspect consists of customer business management, customer segments, and collateral provision. While the authority sub-aspect includes regulations imposed by the authority to regulate the implementation of qard al-hasan. Research, practical & social implications: The results will provide input to all qard alhasan stakeholders, so the quality of financing is sound and sustainable. As a result, there will be more MSMEs that can be financed. Originality/Values: The originality of the research is in the scope of the discussion of qard al-hasan which is focused on revitalizing the financing aspects of qard alhasan by using the principles of sound financing practices produced by the ANP method as an analytical tool with the aim of producing sound and sustainable financing quality. The results of this research are expected to contribute to the concept of a qard alhasan implementation model that can be used by all stake holders to improve qard al-hasan performance.

One Hundred Years Ago. Keynes’s A Tract on Monetary Reform

Keynes’s General Theory is the basis of how we think about fiscal policy today, having displaced the Gladstonian view of what constituted sound finance. His earlier Tract on Monetary Reform, written a century ago, advocated what is now the standard form of monetary policy, varying interest rates to target domestic prices rather than a fixed exchange rate. But it was less influential at the time than was the General Theory. The Tract was also less theoretically innovative, being based on the Cambridge tradition of the quantity theory of money.

Research on the Influence of Supply Chain Finance on Enterprise Operation Performance Under the Background of Digital Transformation

In the economic market, small and medium-sized enterprises are the most solid, the most active and the largest entity for promoting economic development, stimulating the demand for innovation, improving people's lives and increasing employment. However, the problem of financing constraint is always the shackle that restricts the development of small and medium-sized enterprises. As a strong support for national development, the integration of the real economy and the financial supply side has been in constant friction. Efforts should be made to create a sound financing ecology, and further promote the solution of the financing difficulties of the real economy, especially for micro, small and medium-sized enterprises. In reality, the shortage of operating capital is always the main factor restricting the improvement of enterprise operation performance. In view of this situation, supply chain finance is regarded as an effective way to solve the financing problems of small and medium-sized enterprises by the theoretical circle and the industrial circle. Supply chain finance, as a new financing solution, helps to optimize the allocation of resources and funds between the upstream and downstream organizations of the supply chain, and gradually becomes an important way to alleviate the shortage of operating funds for small and medium-sized enterprises. This paper systematically reviews the relationships among supply chain finance, supply chain integration, enterprise digital transformation and enterprise operation performance, and reviews the information asymmetry theory and transaction cost theory.

Measuring the financial performance of insurance companies during the financial crisis

Assessing the financial performance of insurance firms during periods of global economic difficulty has been a topic of great importance to the insurance industry. Interest in sound finance practices peaked in the years following the recession of 2008. Yet, there has been relatively little analysis of the UAE insurance industry and its performance during the financial crisis.The aim of this study is to measure the financial performance of three insurance companies operating in United Arab Emirates during the financial years 2006 to 2009, with the specific goal being to measure the impact of the financial crisis on performance. The analysis examines company performance on key performance indicators such as profitability, liquidity, capital structure and market performance indicators over the years 2006 to 2009. The findings show generally high levels of instability for profitability indicators. Regarding both liquidity and capital structure indicators, the firms in question experienced lower levels of variability and instability across the board. Performance on the earnings per share measure experienced a higher level of volatility, in contrast to the market value per share indicator which remained relatively stable throughout the period in question. Furthermore, profitability levels showed a systemic & notable decline in the crisis year 2008.

Perencanaan dan Pengelolaan Keuangan Keluarga di Masa Pandemi Covid-19

This activity aims to provide training and understanding to the community on the importance of family financial planning and management. This activity was motivated by the current conditions of the Covid-19 pandemic. When the wheels of the economy became disrupted, many companies went out of business and went bankrupt, resulting in many companies that laid off their employees. This will undoubtedly have a significant impact on disrupting the family economy on a small scale and the country's economy on a larger scale. Therefore, this service activity needs to be carried out because, through the ability to plan and manage sound finances, it is believed that it will help the family in planning their grievances so that financial problems can be minimized. The activities carried out were workshops and seminars involving homemakers in Padang. The selection of homemakers in this activity was because a mother is a financial manager in a family. So that the mother's ability to manage finances determines the family's financial condition, this activity was carried out for one day. The result of this activity was an increase in the ability of homemakers to manage and plan finances.

Effectiveness of Mergers and Acquisitions in Maltese Listed Companies: Financial Performance, Market Reactions and Shareholder Value

Purpose: W The objectives of the paper are to assess the effectiveness of mergers and acquisitions (M&A) in Maltese listed companies on acquirers’ financial performance, to examine the market reactions to M&A announcements and to seek to obtain further insights on the perceived value arising from M&A activity. Methodology: The methodology involved an Event Study on acquirers’ share price movements and semi-structured interviews with relevant company representatives and Maltese stockbrokers. Findings: The findings of the paper indicate that the few M&A cases wherein profitability -measured by growth in earnings before EBITDA - was enhanced and operational efficiency was improved took sound financing decisions despite facing challenging circumstances. The Maltese market was generally non-reactive within relatively short timeframes around announcements although with positive reactions within longer estimation periods. Furthermore, the perceived value by acquirers and stockbrokers varied considerably, yet such value was commonly attributed to effective due diligence and successful integration. The study therefore concludes that recent M& A activity in Malta has often been limited in its effectiveness towards enhancing shareholder value. Originality/Value: the paper provides both corporate managers and stockbrokers with insights into M&A activity particularly in a small-state market.

Understanding Full Investment and the Potential Role of Public Banks

ABSTRACT In this paper, we argue that Keynes correctly diagnosed the principles of ‘sound finance' as limiting human progress, but did not map out a viable alternate solution of ‘full investment', and seems to even warn against it. E.F. Schumacher critiqued Keynes's position that until the problem of production is solved, only following ‘the money motive' could lead humanity out of the tunnel of economic need. Now a half century since Schumacher’s critiques, the production problem can be seen in a new light, and the debate surrounding the money motive can be reevaluated with greater context. We build upon the debate and the lessons of recent history, and within the context of other thinkers such as Veblen and Polanyi, to argue that the money motive does not need to be abandoned, but rather placed within a reformed institutional and monetary framework. We argue that full investment can only be properly addressed by shifting the overall objective of economic activity from production to human advancement. We conclude the paper by offering several considerations on why public banks are ideal institutions to shepherd a transformation of mentality into the creation of new markets and activities dedicated to human advancement.

The modern railway and the Swedish state – competing storylines about state capacity, modernisation and material dependencies in the Swedish high-speed rail discourse, 1995–2020

ABSTRACT In contrast to its successful decarbonisation of the electricity system, Sweden has failed to achieve momentum in its attempts to decarbonise transport. This paper examines the reasons for this failure by investigating the discourse around investment in Swedish transport infrastructure. Our analysis focusses specifically on discussions about establishing high-speed rail (HSR) spanning 25 years. We identify three central discursive themes: the issue of financing, the role of the state in socio-technical change, and fatalism. We then trace these themes to storylines within the HSR discourse that each tell a story about good transport governance, informed by a specific interpretation of Swedish modernisation. Four storylines converge in a ‘‘deflationary’’ discourse coalition, characterised by ideas of sound finance and depoliticised governance, that reinforces material dependencies on existing transport infrastructure. A competing, ‘‘Weberian’’ discourse coalition is united through a contrasting storyline that instead highlights state capacity as evidenced by Swedish modernisation.

Breastfeeding versus free distribution of infant formulas by the Public Health System.

ABSTRACTObjective:To characterize the situation of breastfeeding and the adequacy of prescription of infant formulas to infants assisted by a secondary care program of the Public Health System.Methods:This is a cross-sectional study with analysis of medical records of 350 infants from zero to 6 months, followed up between February to April 2019.Results:The possibility of breastfeeding was present in 97.0% of mothers and no infant presented an acceptable medical condition for proscription of breastfeeding. Despite this, only 47.2% of cases were on exclusive breastfeeding before being referred to the program. Regarding the reasons for the introduction of infant formulas, complementation to breast milk was the most present (75.8%), followed by mothers returning to the job market (20.1%). The general rates of inadequacy of those prescribed were 65% before arriving at the program, increasing to 69% (standard formulas) and 80% (formulas for special purposes) during follow-up.Conclusion:The low rate of exclusive breastfeeding and the indiscriminate prescription of infant formulas are a concern for damage to maternal-child healthcare and sound finances of the Public Health System.

Absolute Poverty and Sound Public Finance in the Eurozone

The respect of fiscal parameters is supposed to be – according to the official position of the European institutions – the best recipe for granting stability and growth. This optimistic view appears to be in contrast with the recent increase in poverty. The aim of this paper is to individuate the existence of a relation between governments’ decisions about fiscal policy and absolute poverty in 19 Eurozone countries from 2005 to 2017. The attempt is to answer the question as to whether the effect on growth generated by fiscal policy measures can account for the objective of poverty alleviation. The results support the conclusion that absolute poverty increases in the presence of a restrictive fiscal policy, while it decreases in the opposite case. During declining macroeconomic conditions, national governments belonging to the Eurozone appear to be unable to reconcile the objective of sound public finance with that of poverty alleviation.

Классификация затрат на охрану труда в части медицинских осмотров в Республике Казахстан

The results of the study of the classification of occupational safety costs, in particular the classification of costs for medical examinations, according to the current requirements of the regulatory legal acts and documents of the Republic of Kazakhstan are presented. The Labor Code of the Republic of Kazakhstan does not regulate the cost of financing occupational safety costs in the organizations. In addition, there are no state-approved methodology for planning and occupational safety budgeting costs. International research in the field of occupational safety confirms the positive effect of the investments in occupational safety on the competitiveness, productivity, and sustainability of the enterprise at the market. At the same time, the methodologically sound organization of planning and financing of occupational safety costs depends on their correct classification, which further contributes to the construction of a rational budgetary system of the enterprise in the field of occupational safety. The need for cost classification is due to the fact, that the existing occupational safety activities have different signs and types of costs. In the process of the study the empirical data is used, for example, codes, laws, and other regulatory legal acts of the Republic of Kazakhstan, as well as the scientific research from near and far abroad. The paper offers three signs of the classification of occupational safety costs. In accordance with the proposed signs of cost classification, the types of medical examinations that employers are legally required to conduct for their employees are distributed. Thus, the classification of occupational safety costs, which is aimed at the cost management, should consider all the main options for solving managerial tasks of the enterprise in the field of occupational safety, and should be applicable in practice. At the same time, the classification of costs with varying degrees of detail contributes to the sound planning and financing of the costs for employee occupational safety, which will lead to a positive result from the investment.

Perceptions of Stakeholders Toward "Hospital at Home" Program in Singapore: A Descriptive Qualitative Study.

Hospital at Home (HaH) programs have been shown to improve quality of care and patient satisfaction, and reduce bed occupancy rate in hospitals. Despite the prevalence of HaH in Western countries, studies in Asia are limited and the perception of HaH remains underexplored in Asian context. Understanding the perceptions of stakeholders is vital before implementing HaH in any new settings. Thus, the aim of this study is to explore the perceptions of referring physicians, care providers, patients, and caregivers on HaH programs in a multiracial country such as in Singapore. This study used a descriptive qualitative design. Participants from 2 tertiary hospitals in Singapore, including 13 referring physicians, 10 care providers, 15 patients, and 3 caregivers, were interviewed between June 2020 and September 2020. Data were analyzed using inductive thematic analysis. The overarching theme titled "The stakeholders' perception on HaH" was pillared by 4 main themes: (1) patients suitable for HaH; (2) perceived advantages and benefits of HaH; (3) perceived risks, anxiety, and concerns about HaH; and (4) potential enablers of HaH. Overall, the findings reported that most of the stakeholders embraced HaH. Timely medical interventions and support from care providers were reportedly important factors to maintain patient safety and quality of care. The importance of having adequate resources and sound financing mechanisms to develop a successful HaH program was also highlighted. This study offered insights into HaH from the perspectives of stakeholders in Singapore and facilitate the planning of future HaH pilot programs in multiracial Singapore and other Asian countries.

Extraordinary Funding and a Financially Viable Football Industry—Friends or Foes? A Norwegian Football League Perspective

Financial distress has been frequently addressed in the sports business and management literature; however, surprisingly little attention has been devoted to implications for financial viability derived from funding beyond what the Union of European Football Association (UEFA) defines as relevant income in football, henceforth referred to as extraordinary funding. This study critically discusses and reflects upon whether extraordinary funding can contribute to financial viability. To address this issue, we draw on approximately 100 financial statements for Norwegian top division clubs and their cooperating companies for three fiscal years. Results indicate that, although extraordinary funding contributes with sorely needed funds, thus from the outset contributing in making clubs more robust, the manner in which extraordinary funding occurs is still of great importance from a viability perspective. In this respect, it is useful to distinguish clearly between ex ante and ex post funding. While ex post funding can be argued to be counter-productive to financial viability (e.g., cloaking inadequate finances, providing incentives for overspending, and rewarding clubs that overspend), ex ante funding is more in line with sound financial management (e.g., funds that are contingent upon a history of sound finances, incorporated in budgets). One important implication of this study is that ex post funding can contribute to crowding out of good practices, as clubs that overspend can be rewarded for their actions by having funds injected ex post.

Factors influencing the adoption of public–private partnership in low-cost housing development in Myanmar

Purpose To provide low-cost housing, the Myanmar Government is attempting to use public–private partnership (PPP) to attract private investors. However, there is little information concerning the influencing factors for implementing PPP low-cost housing projects in Myanmar. This paper, therefore, aims to identify and analyse these factors. Design/methodology/approach A total of 51 in-depth interviews were conducted with interviewees involved in various kinds of housing projects implemented through the adoption of PPP or other approaches. The methods of data collection and the analysis are based on grounded theory (GT) methodology. Findings Using the GT method to analyse the interviews, five categories emerged from 50 influencing factors regarding the establishment and implementation of the PPP model for low-cost housing in Myanmar: provision of incentives; obstacles in implementing PPP for all stakeholders; barriers to private sector participation; public sector responsibilities and challenges; and attraction factors and challenges for financial institutions. Among 12 newly found factors, the three most important for PPP low-cost housing in Myanmar are the availability of project funding, the resolution of land-acquisition issues and the development of a sound financing system. Research limitations/implications Our findings strengthen previous studies by identifying factors affecting PPP low-cost housing either specific to Myanmar or common among other countries. Of the 50 factors identified, 38 factors were found in previous studies, but 12 are likely specific to Myanmar. Practical implications Our findings can be used by governments, particularly the Myanmar Government, and financial agencies to understand the low attractiveness of PPP low-cost housing for investors and to develop/improve policies to stimulate PPP low-cost housing, especially in Myanmar. Originality/value Many previous studies have been undertaken to identify factors that influence the implementation of PPP for low-cost housing. However, to the best of the authors’ knowledge, there are no prior studies specific to Myanmar in this context.

Formation of the “Green Economy” in the Innovative Model of Sustainable Ukraine’s Development

The purpose of the study- is to substantiate the problems and prospects of forming a "green" economy and a way to implement sustainable development at the national level. Regional and global levels in the long run. The active growth of "green" enterprises, the introduction of innovative technologies and the reduction of waste and harmful emissions in various sectors of Ukraine's economy, the transition to energy-saving technologies and biofuels and "greening" of agriculture promise to ensure the country's energy security. This allows for increased incomes and formal employment in these sectors of the economy in the short and long term, while providing more environmental, economic and social benefits, which in general leads to a higher level of well-being of the population and the country. At the same time, although the transition to a "green" economy will require large-scale investments, these investments can be mobilized through sound government policies and innovative financing mechanisms.

ANALYSIS OF THE POTENTIAL AND OPPORTUNITIES FOR AGRICULTURAL PRODUCTION AND AGRICULTURAL PROCESSING IN UKRAINE

The objective of the article is to study the possibilities of agricultural production and agricultural processing and search for the prospects of development of the industry of Ukraine. Methodology. The following analyses are carried out: profitability and cost-effectiveness (rate of return) of the agricultural products, the level of consumption of basic food products in Ukraine, availability of agricultural machinery at agricultural enterprises, the structure and growth rate of purchase of agricultural machinery at agricultural enterprises of Ukraine. Results. It is proved that a low level of profitability in the agricultural sector is a significant violation of price parity – there is a deterioration in the ratio of the prices of agriculture producers for sold products, and prices for acquired industrial goods, and for the services of commercial and technical purpose, i.e. there is a situation of non-conformity of revenues and costs of agricultural production. It should be noted that the level of the development of the agricultural complex, first of all, is determined by the quality and volume of food consumed by the population. Practical implications. During the country's independence, the profitability of production of all major products has decreased significantly and negative trends are observed. Comparing the data of 2019 with 1990, we can see that part of the profitable production has transferred to the unprofitable. The analysis of the dynamics of consumption of major food groups over the past two decades shows that for the period from 2000 to 2014 there was an increase in consumption of milk and dairy products by 12%; meat and meat products by 65%; eggs by 86.7%; potatoes by 4%, vegetables and melons by 60.5%; fruits, berries and grapes by 78.5%; fish and fish products by 32.1%; oils by 39.4%. During this period, there was a decrease in the positions of bread and bread products by 13% and sugar by 1.4%. Value/originality. The low intensity of the agricultural sector of Ukraine is largely due to the neglect of the requirements of agricultural machinery and production technology. It is important to apply the required amount of mineral fertilizers, which is one of the important technological requirements for growing crops. Therefore, the effective development of this industry requires a modern, effective and scientifically sound financing program by attracting investment and soft loans.