Financial Management Strategies Research Articles

LOCAL CHURCHES OWNED BUSINESS AS STRATEGIC TOWARD SUSTAINABILTY AND FINANCIAL OTONOMY

The purpose of this paper is to describe and analyze the strategy of local churches, in this case, tribal churches that exist in GKE Resort Tewah, for sustainability and financial independence by building businesses owned by the church. The method used is exploratory qualitative with observation, interview, and documentation study techniques. This paper concluded that the church, as a non-profit organization, can build a business to support church finances. Local churches build businesses as one of the church's financial management strategies sourced from the empowerment of church assets. Empowerment of local church assets is classified as a business in the form of investment in property assets included in non-current assets. Income from church-owned businesses is recognized and recorded as general church income so that the income is used to fund church operations. Business ownership by local churches today can be one of the strategies to achieve the financial independence of the church and the sustainability of local churches that depend on the offerings given by the congregation.

Peningkatan Kesadaran Menabung Bagi Kaum Muda Melalui Sosialisasi The Importance of Saving

The Keling Kumang Institute of Technology (ITKK) is dedicated to fulfilling the Tri Dharma of Higher Education, encompassing the domains of teaching, research, and community service. In the 2022/2023 academic year, the Entrepreneurship study program within the ITKK (Institute of Technology and Knowledge Creation) undertakes community service initiatives under the guidance of faculty members, aligning with the institution's overarching vision and goal. The primary objective of this service program is to enhance the knowledge of young individuals on the need of saving. To effectively promote financial literacy among young individuals, it is imperative that they possess adequate knowledge and skills in financial management. This is crucial as each person possesses varying capacities in addressing their respective needs. We engage in community service initiatives aimed at promoting awareness among young individuals regarding the significance of saving, accomplished through the process of socializing this concept. The introduction of effective financial management strategies is expected to encourage young individuals to allocate a portion of their income towards savings, thereby optimizing the utility of their funds. This practice aims to cultivate a sense of self-control and promote the practice of frugality in financial matters

Village Financial Management Strategy in Improving Village Financial Performance in Bogor District

Development changes village for 10 years experience a very rapid increases with the birth of law number 6 of 2014 about village, but Corruption cases in Indonesia are still very high, especially in Bogor Regency there was a case of arrest of the Bogor Regency Regent, 7 reports of misuse of village funds and 1 arrest of the village head who was proven to be a suspect in corruption in village financial management, the existence of this case will affect the village's assessment, especially in its financial performance requires good management in managing finances in order to create good governance, therefore the purpose of this study is the arrangement of village financial management, data processing methods using the Analytical Hierarchy Process (AHP) with a profusive sampling sample including 7 expert judgments to assess strategy, results This research is based on the dominating criterion, namely planning that must be improved, on the sub-criteria, namely village financial independence, and on the alternative strategy chosen, namely strengthening the quality of human resources and regulations, then carrying out managerial implications by strengthening the quadruple helix model approach between the government, academics/experts, business, and society.

Geopolitical uncertainty and the cost of debt financing: the moderating role of information asymmetry

PurposeThis paper aims to study the impact of geopolitical uncertainty on corporate cost of debt and the moderating role of information asymmetry between creditors and borrowing firms.Design/methodology/approachThis study uses 5,223 firm-quarter observations on German-listed firms spanning 2010:Q1–2021:Q4. This study regresses the cost of debt financing on the geopolitical risk, accounting quality and other control variables. Information asymmetry is measured using the performance-matched Jones-model discretionary accrual and the stock bid-ask spread. It uses interaction terms to check if information asymmetry moderates the impact of geopolitical uncertainty on the cost of debts and control for the moderating role of business risk. For the sake of robustness check, it uses long-term cost of debt and bond spread as alternative dependent variables. In addition, this study executes instrumental variables regression and propension score matching to control for potential endogeneity problems.FindingsEstimation results show that geopolitical uncertainty exerts a positive impact on the cost of debt. This impact is found to be more important on the cost of long-term debts. Information asymmetry is found to exacerbate the positive impact of geopolitical risk on the cost of debt. These results are robust to the change of the dependent variable and to the mitigation of potential endogeneity. At high levels of information asymmetry, this impact is more important for firms belonging to “Transportation”, “Automobiles and auto parts”, “Chemicals”, “Industrial and commercial services”, “Software and IT services” and “Industrial goods” business sectors.Research limitations/implicationsGeopolitical uncertainty should be seriously considered when setting strategies for corporate financial management in Germany and similar economies that are directly exposed to geopolitical risks. Corporate managers should design a comprehensive set of corporate policies to improve their transparency and accountability during increasing uncertainty. Policymakers are required to implement innovative monetary and fiscal policies that take into consideration the heterogeneous impact of geopolitical uncertainty and information transparency in order to contain their incidence on German business sectors.Originality/valueDespite its relevance to corporate financing conditions, little is known about the impact of geopolitical uncertainty on the cost of debt financing. To the best of the authors’ knowledge, there is still no empirical evidence on how information asymmetry between creditors and borrowing firms shapes the impact of geopolitical uncertainty on the cost of debt. This paper tries to fill this gap by interacting two measures of information asymmetry with geopolitical uncertainty. In contrast with previous studies, this study shows that the impact of geopolitical uncertainty on the cost of debt is non-linear and heterogeneous. The results show that the impact of geopolitical uncertainty does not exert the same impact on the cost of debt instruments with different maturities. This impact is found to be heterogeneous across business sectors and to depend on the level of information asymmetry.

Strategic Formulations and Financial Distress: Insights from Sales Growth and Profitability Ratios

This research looks into the complex relationship between sales growth, profitability ratios, and financial difficulty in businesses. It aims to provide practical recommendations to firm management for using sales growth and profitability data to identify and avoid financial crisis. Using a quantitative method, secondary data obtained from publicly traded companies' financial statements over a specific time period forms the basis of research. Multiple linear regression models are used to examine the relationship between sales growth and profitability ratios (the independent variables) and financial distress (the dependent variable). Statistical tests, such as ANOVA and t-tests, are used to assess the model's significance and regression coefficients. The findings show a significant relationship between sales growth, profitability ratios, and financial difficulty. Higher sales growth, in particular, is associated with an increased likelihood of financial trouble, as evidenced by the positive coefficient. Similarly, an increase in profitability ratios is linked to a higher probability of financial difficulty. This emphasizes the importance of sales growth and profitability ratios as signs of financial crisis. It is recommended that firm management closely monitor these indicators and include them into the company's financial risk management strategy in order to anticipate or mitigate possible financial difficulties. This study provides diverse stakeholders with critical insights and tools for efficiently understanding, identifying, and managing financial risks.

Adapting Financial Management Strategies Amidst Economic Turmoil: A Case Study of Gama Corporate's Liquidity and Restructuring Initiative

In an era of economic turbulence, organizations face the imperative to adapt their financial management strategies to navigate the uncertain terrain. This research presents a case study of Gama Corporate, a leading financial institution, and examines the liquidity and restructuring initiatives undertaken amidst economic turmoil. Through a qualitative case study approach, involving documentary analysis, semi-structured interviews, and surveys, this research explores the drivers, strategies, outcomes, and lessons learned from Gama Corporate's experience. The results revealed that external economic turmoil, compounded by internal challenges, served as a catalyst for Gama Corporate's liquidity and restructuring initiatives. The company implemented a multifaceted approach, which included liquidity management and strategic restructuring. In the short term, the initiative incurred costs, including staff reductions and one-off losses, but in the long term, it resulted in greater financial stability and sustainable profitability. The lessons learned from this case underscore the importance of proactive liquidity management, the need for strategic restructuring when faced with financial challenges, and the importance of transparent communication with stakeholders. The findings from this study contribute to a broader understanding of financial management strategies during times of economic hardship, emphasizing the role of adaptation, innovation, and resource utilization in achieving financial resilience. The insights gained offer practical guidance for organizations looking to improve their financial strategies in a volatile economic landscape.

Financial risk management strategies of small to medium illicit drug enterprises: considering low-level money laundering

AbstractThe illicit drug trade generates billions of dollars in revenue per year, much of which comes from wholesale and retail sales late in the supply chain. Yet, the methods retailers and low-level wholesalers use to launder this revenue remain poorly understood. Using in-depth interviews with illicit drug entrepreneurs in the United States and the United Kingdom, this article analyses laundering strategies among such market actors. Our findings indicate that a significant proportion of their illicit proceeds are disposed of through relatively small-scale ‘everyday’ cash transactions (< $1,000) that are effectively untraceable. For those generating more substantial revenues, a variety of accessible and uncomplicated laundering strategies are employed, such as reporting such revenues as taxable income, using proxies to launder funds, and using revenues as investment capital within small-scale legal enterprise. Ultimately, we identify uncomplicated, yet largely effective, methods of laundering criminal proceeds amongst our sample of low- to medium-level illicit drug sellers. Though the sums at an individual level are relatively trivial, the ‘mass of minor offences’ of this nature likely accounts for a significant share of laundered drug revenues in Western consumer drug markets.

Pelatihan Peningkatan Kewirausahaan Pada Masyarakat Kelurahan Lewaja

Entrepreneurship Improvement Training in the Lewaja Village Community is a training program that aims to strengthen entrepreneurial skills among the local community. This program is designed to provide the knowledge, skills and support necessary for individuals in Lewaja Subdistrict to develop their own businesses. In this training, participants will learn important aspects of starting and managing a business, including business planning, marketing, financial management, and business development strategies. With this training, it is hoped that the people of Lewaja Village can increase their economic potential, create new jobs and contribute positively to local economic development. This program is a positive step in building community economic independence and reducing the unemployment rate in Lewaja Village.

Influence of Entrepreneurship Education on Students’ Innovation and Creativity in Nigerian Public Universities

Entrepreneurship education is designed to equip students with the skills and knowledge required to start and run successful businesses, as well as to foster an entrepreneurial mindset. Through entrepreneurial courses, students are expected to learn how to identify market opportunities, develop business plans, and acquire the necessary resources to bring their ideas to fruition. They also learn about risk management, financial management, and marketing strategies, which are essential skills for any entrepreneur. Hence, this study examined the influence of entrepreneurship education on students' innovation and creativity. Multiple regression analysis was employed to analyse the data collected from 244 undergraduate students in federal universities in north-central geo-political zone, Nigeria. The findings revealed that (1) there is a positive significant relationship between entrepreneurship education and students’ innovation; (2) entrepreneurship education has a significant influence on students’ creativity. Therefore, it is broadly recommended that universities should not see entrepreneurship education as the courses that must be passed through test, presentations and examinations, rather the courses should be assessed based on success recorded by students in their chosen areas of business or ingenuity (practical evaluation).

Analisis Strategi Pengelolaan Keuangan Dan Strategi Keberlanjutan Usaha Perak Di Gaja Silver Bali Pada Masa Pandemi Covid-19

ABSTRACT
 This study aims to to determine the financial management strategies and business sustainability strategies applied to Gaja Silver Bali to survive the COVID-19 pandemic. The population of this research is several silver craftsmen in Celuk Sukawati Village, where the sample determination uses the saturated sample method. The stages of the analysis technique used are data collection, data reduction, data presentation, and drawing conclusions. In an effort to maintain its business, Gaja Silver Bali made bank credit loans, these efforts were made to help the company's productivity and pay employee salaries. Purchases of raw materials in cash are also carried out in order to avoid trade debts that will burden his business in the future. Various forms of promotion are carried out by utilizing social media, as well as Word of Mount with the aim of introducing Gaja Silver Bali to the wider community. In creating consumer satisfaction, Gaja Silver Bali always maintains product quality, provides good service, and a fast production process for consumers so that later consumers will want to survive to transact with Gaja Silver Bali. Focusing on future changes (forward looking) is the task of all businesses, including Gaja Silver Bali. The owner of Gaja Silver Bali plans to upgrade the company from UD to CV with the aim that business continuity is more guaranteed besides that the company can carry out its business activities officially and legally according to the law. In an effort to maintain its business, Gaja Silver Bali is also restructuring.

Technology-Based Financial Risk Management Strategy: Overview of Recent Developments

Technological developments have had a significant impact on financial risk management. In this context, the application of artificial intelligence, the use of data analytics, and the role of blockchain technology are the main focus for increasing efficiency and accuracy in managing financial risks. This study aims to analyze technology-based financial risk management strategies with a focus on the application of artificial intelligence, the use of data analytics, and the role of blockchain technology. This research was conducted using a qualitative approach with a literature study as a research method. The data used comes from the results of previous research and studies that are related to technology-based financial risk management. This study found that technology-based financial risk management provides advantages in the form of operational efficiency, cost savings, and increased accuracy in risk analysis. However, challenges such as data security and privacy and the complexity of technology system integration must be overcome. In developing an effective technology-based risk management strategy, companies need to increase organizational understanding and awareness, develop a supportive regulatory framework, and conduct human resource skills training. Collaboration, continuous evaluation, and a sustainable approach are also keys to success in optimizing the use of technology in managing financial risks.

Pemberdayaan Ekonomi Masyarakat Melalui Pelatihan Pengembangan Kewirausahaan BSI Link

Community economic empowerment is an important aspect in the development of a region. In the context of Peureulak City, community economic empowerment is carried out through entrepreneurship and business development training programs organized by BSI Link. This program aims to increase participants' knowledge, skills, and economic independence, so that they can develop successful businesses and contribute to local economic growth. The method of activity used in this program includes identification of needs, implementation of training, assistance and mentoring, field visits, as well as evaluation and monitoring. By participating in this program, participants gain knowledge about the basics of business, financial management, marketing, and business development strategies. The results of the activities of this training program include increasing the knowledge and skills of participants, developing solid business plans, increasing economic independence, increasing business competitiveness, creating jobs, collaboration and business networks, as well as the impact on sustainable development. Thus, this program has the potential to make a significant contribution to community economic empowerment and sustainable economic growth in Peureulak City. In conclusion, the BSI Link entrepreneurship and business development training program in Peureulak City has clear objectives and structured activity methods. Through this program, participants gain knowledge and skills that will enable them to develop successful businesses and contribute to local economic growth. This program also has the potential to have a positive impact on community economic empowerment and sustainable development.

Cutback management strategies and citizen evaluation of government

AbstractThrough a behavioral approach, citizen evaluations of government performance have been an area of study in public administration. Research has explored how different factors influence citizens’ perceptions of public organizations, such as public sector bias and reference points. Understudied in this literature is how citizens evaluate government based on their use of financial management strategies. The Pandemic and other economic challenges have forced governments to engage in cutback management strategies to balance the budget. How do citizens evaluate governments based on their cutback strategies? To answer this theoretical question, we employ a survey experiment design with over 1600 respondents from the U.S. to explore how four cutback management strategies can influence citizen evaluations of government. Our findings suggest that cutback management strategies do influence citizens’ evaluation of government in trust, satisfaction, performance, and fairness. Citizens are more favorable to infrastructure or materials and contractor cuts than increasing taxes or reducing personnel. Further analysis by respondent partisanship indicates Democrats are more accepting of tax increases. Republicans rate governments lower when they cut capital and infrastructure and rate governments higher when they decrease personnel expenditures.

Assistance in Financial Reporting for Micro, Small, and Medium Enterprises (MSMEs): A Case Study of Frozen Food Segara Biru in South Tambun District

Micro, small, and medium enterprises (MSMEs) play a crucial role in the local economy, including in the South Tambun District. However, MSMEs often face challenges in accurate and effective financial reporting. The lack of understanding of important aspects of financial reporting can hinder the growth and sustainability of their businesses. This activity aims to provide assistance and development in financial reporting to Frozen Food Segara Biru, an MSME located in the South Tambun District. In this assistance program, we collaborate with the business owners and their financial staff to enhance their understanding and skills in transaction recording, financial statement preparation, financial performance analysis, and sound financial management strategies. The methodology used is a collaborative approach, where we involve the business owners and financial staff in every step of the assistance process. We provide training and guidance on the concepts and practices of good financial reporting, as well as practical guidance on the use of accounting software or cloud-based applications to facilitate financial recording and reporting. It is expected that the results of this assistance will enhance the understanding and financial reporting skills of Frozen Food Segara Biru, which, in turn, will assist them in making better business decisions, improving operational efficiency, and accessing better financial resources such as loans or investments. Through this research, we hope to provide new insights into the importance of assistance and development in financial reporting for MSMEs, as well as offer practical recommendations for further development in this area. By supporting MSMEs in improving their financial reporting practices, we contribute to their overall growth and contribute to the local economy's development.

Strategi Manajemen Keuangan Perusahaan Pariwisata dalam Menghadapi Pandemi Covid-19

Tourism is one sector that has a major impact on the community's economy. The tourism sector absorbs a lot of labor, increases regional income, and increases the country's foreign exchange. Since the Covid-19 case appeared in Indonesia in March 2020, the tourism sector has experienced a drastic decline in income. This is due to a policy that prohibits mobility between regions and the closure of tourist destinations in red-zone areas. The right financial management strategy is very important because companies must be adaptive and innovative to survive. This study aims to analyze the financial management strategy of Perumda Owabong and BUMDes Serang Makmur Sejahtera in dealing with the Covid-19 pandemic. The method used in this study is a qualitative method with a comparative approach. The informants in this study were top management at Perumda Owabong and BUMDes Serang Makmur Sejahtera. The results of this study indicate that the financial management strategies used by Perumda Owabong and BUMDes Serang Makmur in dealing with the Covid-19 pandemic are broadly the same, namely defensive and diversified management strategies but with their own uniqueness

THE IMPACT OF CASH MANAGEMENT PRACTICES ON LIQUIDITY IN PRIVATE HIGHER EDUCATIONAL INSTITUTIONS (HEIS) IN DISTRICT IV OF LAGUNA

In this study, the focus was on analyzing the impact of cash management practices on the liquidity of private higher educational institutions (HEIs) located in District IV of Laguna. The study collected data by surveying ten private HEIs in the district. The survey asked questions related to the cash management practices employed by the institutions and their liquidity levels. The researcher used descriptive statistics and regression analysis to analyze the data. The study found a significant positive relationship between cash management practices and liquidity in private HEIs. This meant that better cash management practices could lead to improved liquidity levels in these institutions. Specifically, the study found that effective management of cash inflows, short-term investments, and accounts receivable positively impacted the liquidity of private HEIs. Finally, the study concluded by emphasizing the importance of prioritizing cash management practices as part of the financial management strategy of private HEIs in District IV of Laguna. The recommendation was based on the study’s finding that better cash management practices led to improved liquidity and financial sustainability for these institutions. Private HEIs should focus on implementing effective cash management practices to enhance their financial performance and long-term sustainability.

The Tanda: An Informal Financial Practice at the Intersection of Culture and Financial Management for Mexican American Families.

Tandas, the Mexican variation of lending circles, are an informal financial practice used among Mexican American communities. Tandas are an important asset in families' resource management strategies, yet the practice is largely unrecognized in the resource management literature and devalued by traditional financial institutions. A qualitative study was conducted to investigate tanda participation of twelve Mexican American individuals across the midwestern United States. This study aimed to develop a better understanding of participants' motivations to enter, the other financial management strategies employed by participants, and the tanda's significance to family resource management. Findings revealed that participants' motivations to participate in a tanda relate to financial accessibility and cultural preferences; participants utilize a range of complementary financial management strategies concurrently with the tanda; and participants perceived the tanda as conducive to their family's financial goals and well-being, despite acknowledging the risks associated with participation. Developing a better understanding of the tanda provides insights into the ways culture serves as a conduit through which family and individual goals are realized, financial capability is bolstered, and uncertainty wrought by economic and political contexts is reduced.

Effect of Currency Devaluation on Performance of Small and Medium Firms in Beirut, Lebanon

Currency devaluation refers to a deliberate and official reduction in the value of a country's currency in relation to other currencies. It can occur through various mechanisms, such as adjusting interest rates, intervening in foreign exchange markets, or implementing monetary policies aimed at reducing the supply of domestic currency. Currency devaluation can create financial challenges for SMEs. Financial institutions may be more cautious in extending credit due to increased risks associated with exchange rate fluctuations. Devaluation reduces the value of collateral assets, making it harder for SMEs to secure financing.  The research used the descriptive research design. The target population was 200 small and medium firms in Beirut, Lebanon.  The study did sampling of 150 participants that were chosen from the target population of 200 small and medium firms in Beirut, Lebanon. Questionnaires were utilized to gather data. In conclusion, the devaluation of the Lebanese currency has presented numerous challenges for these businesses, impacting their competitiveness, profitability, and sustainability. It is crucial for SMEs to understand the direct and indirect impacts of currency devaluation. Increased import costs, inflationary pressures, and reduced purchasing power have placed significant strain on SMEs. By recognizing these challenges, SMEs can develop effective financial management strategies and explore hedging mechanisms to mitigate currency risk. The study recommended that Lebanese SMEs should consider developing export-oriented strategies, including identifying new export markets, conducting market research, and adapting their products and services to meet international demand. By capitalizing on export opportunities, SMEs can diversify their revenue streams and reduce their vulnerability to the domestic economic challenges caused by currency devaluation. Keywords: Currency Devaluation, Performance, Small and Medium Firms, Lebanon

A Study on Risk Management Strategies

This research paper explores the significance of risk management practice and corporate hedging strategies in achieving financial stability and resilience for organizations. The study emphasizes the need for comprehensive risk identification, assessment, and mitigation to navigate uncertainties and capitalize on opportunities in today's complex business landscape. The paper highlights the multifaceted nature of risks that organizations face, including economic factors, regulatory changes, technological advancements, natural disasters, and cybersecurity threats. It emphasizes the importance of risk management in various sectors, such as individuals, businesses, and governments, to protect interests and ensure long-term success. Enterprise Risk Management (ERM) is discussed as a holistic approach that considers the interdependencies and cumulative effects of risks across functional areas and business units. The research delves into risk identification, assessment, and quantification, as well as the implementation of appropriate risk response measures to mitigate potential impacts. Furthermore, the study explores the concept of corporate hedging as a financial risk management strategy to protect against adverse market fluctuations. It discusses various hedging instruments and their role in offsetting potential losses or gains from currency exchange rates, interest rates, commodity prices, and other market variables. The benefits of effective risk management and corporate hedging are examined, including financial predictability, enhanced competitiveness, and improved access to financing. The research highlights the importance of fostering a risk-aware culture, establishing robust governance frameworks, and continuously monitoring and reporting on risks. Overall, this research paper emphasizes the importance of proactive risk management and corporate hedging strategies in safeguarding organizations' financial stability, ensuring resilience, and facilitating informed decision-making in an ever-changing business environment.

The lived experience of financial harm from gambling in Australia.

The financial consequences associated with harmful gambling create significant health and social stressors for individuals, their families, and communities. However, there has been limited research exploring how people impacted by gambling harm conceptualise and experience the financial impacts on their lives. To help fill this gap, this study used in-depth qualitative interviews with gamblers harmed by their own gambling and affected others harmed by someone else's gambling. Reflexive thematic analysis was used to interpret the data. The study had three key findings. First, prior to experiencing harm, gamblers and affected others did not consider the financial risks associated with gambling and only recognised the risks once the financial losses negatively impacted other areas of their lives. Second, gamblers and affected others managed the day-to-day financial impacts of gambling by adjusting their financial priorities, reducing spending in other areas, or accruing debt. Finally, the financial impacts of gambling and the associated financial management strategies led to broader and long-term problems for gamblers and affected others. This study demonstrates that financial harms from gambling are complex and contribute to the stigmatisation of people who experience harm. Current educational messages and tools simplify this complex issue and may legitimise gambling as a leisure activity which can be managed by making 'responsible' financial decisions. Public health and health promotion initiatives must recognise this complexity, developing approaches that are independent from the gambling industry and informed by lived experience.