Surplus Funds Research Articles

Characteristics of financial capital flow circulation and the risk transmission effect in China

Financial capital is an important force driving China's economic modernisation. Examining the characteristics of financial capital flow circulation across sectors and risk transmission laws is crucial in guiding financial market operations and deepening financial system reforms. This study establishes a 2011–2020 China matrix that includes capital fund flow statements for non-financial corporations, financial institutions, the general government, households, and foreign sources and examines changes in capital flow circulation by developing a financial flow multiplier system model to measure the direct and indirect transmission effects of capital flows between sectors from the perspective of liabilities. Results show that China's overall scale of financial capital flows has increased, but fluctuations have emerged in the last decade. The sectors' financing structure has changed significantly, with financial institutions remaining the primary capital inflow and outflow sectors of the financial market; however, the proportion of liability and investment in the household sector has increased, resulting in increased risk transmission. Moreover, the sectoral fund surpluses and shortages are highly volatile and uncertain, with non-financial enterprises serving as the primary drivers of real-economy investment. The capital flow from financial services to the real economy shows a fluctuating growth trend, primarily flowing to non-financial corporations; however, the proportion exhibits a downwards trend. Finally, we find that the flow transmission relationship between different sectors and financial transactions in the financial market is complex, with both direct and indirect risk transmission effects between sectors. Changes of financial institutions' liabilities significantly affect the liabilities and investments of other sectors.

Kebijakan Cash Holding Pada Perusahaan Sektor Consumer Cyclicals di Indonesia

This research aims to determine the effect of cash flow, dividends, market to book ratio, net working capital, leverage and Z-score on cash holding in consumer cyclicals sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The type of data used is quantitative data sourced from secondary data. The population is consumer cyclical sector companies listed on the Indonesia Stock Exchange from 2018 to 2022. The sampling technique used purposive sampling and 23 companies were obtained as samples. The research results show that cash flow, market to book ratio, net working capital have a significant and positive effect on cash holding. High cash flow indicates that cash inflow is greater than cash outflow, thus allowing the company to hold cash and use it to finance its operational activities. The market to book ratio indicates investment opportunities for the company, opens up easy access to capital markets and allows for easy acquisition of additional funds. Excess funds saved by the company will increase cash holdings. An increase in net working capital indicates an increase in cash balances because companies with high liquidity will generally hold large amounts of cash. On the other hand, the Z-score shows a significant and negative influence on cash holding. A high Z-score value indicates that the company is in a safe zone and does not need to hold a lot of cash because its financial condition is stable. Meanwhile, dividends and leverage do not show a significant influence on cash holding.

Factors Influencing Public Interest in Using Sharia Microfinance Institution Produsts in Lamongan

Islamic Microfinance Institutions (IMI) have a strategic role with their main function being to collect funds from people with excess funds and channel the funds to people in need effectively and efficiently. The existence of IMI is expected to help people, especially those from the lower middle class, in gaining access to funding. However, the perception and attitude of the community towards bank interests and the profit sharing system show diversity. Some people still choose to accept interest and consider it the same as the profit sharing system, so an analysis of factors that influence the community's interest in using IMI products is needed. The purpose of this study was to determine the effect of knowledge, promotion, service quality, and religiosity on the community's interest in using IMI products in Lamongan. The sample used was 100 samples selected using the purposive sampling method. The data was processed using multiple linear regression analysis techniques. The test results stated that partially and simultaneously, the variables of knowledge, service quality, promotion, and religiosity had a positive effect on the community's interest in using IMI products in Lamongan.

Money talks? The impact of excess funding on post-IPO performance

Money talks? The impact of excess funding on post-IPO performance

Asset Allocation and Bank Resilience: China Insights

This research is based on the panel data from the annual reports of Chinese commercial banks for the years 2010-2020. A panel data model is constructed to empirically investigate the influence of commercial banks' asset allocation on financial stability. The study innovatively explores the differences between large-scale banks and general-scale banks in this context, as well as the interaction effects between large-scale banks and their methods of capital application. The findings indicate that: firstly, the higher the proportion of corporate loans in commercial banks, the stronger the stability. With the support of national policies, the operating environment for emerging industries has improved, leading to a reduction in bankruptcy risks and further decreasing the credit risk of related banks, which contributes to the enhancement of banks' financial stability. Additionally, compared to securities investments affected by market fluctuations, corporate loans are less susceptible to significant capital changes, and their risks are primarily determined by the operating conditions of the related enterprises, making them relatively controllable. Secondly, the higher the proportion of personal loans in commercial banks, the stronger the stability. The largest part of personal loans consists of housing mortgage loans, which have a low non-performing loan rate and high quality in China. Therefore, an increase in personal loans helps to enhance the financial stability of banks. Thirdly, large-scale banks exhibit lower financial stability. Due to the redundancy in management personnel in large-scale banks, management costs, adjustment costs, and transaction costs are relatively high. Furthermore, it is worth noting that because large-scale banks hold a significant amount of surplus funds, they are prone to excessive securities investments. Fluctuations in the securities market increase external risks and decrease financial stability.

PENGARUH LEVERAGE, PROFITABILITAS DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN

The economic conditions in the era of globalization have rapidly evolved, leading to fierce competition among companies operating in various business sectors. Competition in the business world drives every company to continually improve its performance to survive and grow, making the company's value a crucial factor for investors in allocating their capital. With the existence of the capital market, entities with surplus funds can invest them, while companies can utilize these funds for investments without waiting for revenue from operational activities. The aim of this research is to determine the influence of leverage, profitability, and dividend policy on company value. The purposive sampling method is employed by selecting companies listed in the IDX30 index on the Indonesia Stock Exchange and consistently listed during the period of 2018-2020, which also consistently issue dividends annually. Data is analyzed using panel data regression. The research findings demonstrate that leverage and profitability significantly affect company value, whereas dividend policy does not significantly influence company value.

Infectious Confidence: Unraveling the Effects of Confidence Contagion on Overfunding in Equity Crowdfunding

Equity crowdfunding campaign overfunding occurs when a campaign generates funds in excess of the funding goal and has hence been touted as the mark of an extraordinarily successful campaign. However, a novel theoretical lens is needed to comprehend funders’ enthusiasm in their support of such campaigns. Building on the extant literature on contagion effect, we constructed a research model that posits confidence contagion invoked by confidence cues embedded in campaign materials as a key driver of overfunding. Our hypotheses were validated in two complementary empirical studies. In Study 1, we manipulated confidence cues in a controlled experiment to verify the activation of confidence contagion at the individual level. Analytical results indicate that individual funders detect self-confidence traits from confidence cues embedded in campaign materials and assimilate the fundraiser’s confidence via a spontaneous social appraisal mechanism. In turn, confidence contagion drives funders to congregate and invest in campaigns. In Study 2, we analyzed a secondary dataset collected from a leading equity crowdfunding platform to discern how confidence contagion drives overfunding at the collective level. By modeling funding activities as a Hawkes process, we derived three key metrics that govern the emergence and magnitude of funding surges. We demonstrated that these metrics of funding surges mediate the impact of confidence cues on the level of overfunding for equity crowdfunding campaigns. The findings from this study could inform future research seeking to untangle the interdependencies between individual and collective mechanisms underlying crowd phenomena, provide strategic guidance to fundraisers interested in promoting the overfunding of their campaigns, and help crowdfunding platforms predict the potential extent of overfunding and advise fundraisers accordingly.

An analytical study on value chain finance to tomato and mango as a component of high value agriculture in the Eastern Uttar Pradesh of India

The study conducted an extensive field survey utilizing pre-tested interview schedules with tomato and mango growers and chain actors. A multi-stage purposive-cum-stratified random sampling method was employed to select sample units. The findings of this study highlight the cost orientation of tomato and mango production, indicating a greater need for consequential credit. The research revealed that growers of both commodities within fragmented value chains had a higher proportionate share in the value addition (price) than growers in integrated chains, primarily due to direct sales of produce to consumers. Additionally, downstream actors such as commission agents, wholesalers, and retailers received a comparatively higher proportionate share in the value additions (price) compared to upward actors, indicating that producers could not effectively compete with increased demand in the marketplace. Observations within the chain indicated that finance for tomato and mango production circulated through a product commitment relationship established between chain participants. Downstream actors provided financing to upstream actors from either their surplus funds or external finance received from financial institutions. The study suggests developing a producer-driven chain financing model as an alternative to the buyer-driven financing model for tomato and mango production. This could be achieved by promoting farmers' organizations as long-term financing strategies for financing institutions.

The Economic Impact of Covid-19 pandemic on Labor Market and Stock Market

The pandemic has caused severe unrest and uncertainty in the labor market. Share prices have fallen sharply. However, the reasons behind it and the related policy effects still lack a unified explanation and summary. Therefore, the topic of this paper is the impact of the epidemic on the labor force and the stock market. The research method of this paper is as follows: firstly, the relevant data such as unemployment rate, hiring ratio and purchasing manager index are collected, and then the data are analyzed. The study found that the main reasons for the decline in labor demand may include business shutdowns, more cautious business investment and the psychological impact on workers. Fears of a potential recession, supply chain disruptions and uncertainty over the duration and severity of the outbreak have driven the rapid fall in share prices. The relevant policy recommendations further encourage local governments to use the surplus funds from unemployment insurance and other sources to support enterprises in maintaining employment stability. This paper will encourage the implementation of policies that delay or partially refund social security contributions. And strengthen the strategy of partially refunding unemployment insurance premiums, promoting local employment opportunities, and providing subsidies to ensure the overall stability of the employment situation. These policies are constantly evaluated and adjusted in light of changing economic conditions and employment trends to help maintain employment levels and support businesses during difficult times.

Empowerment of Ultra Micro MSME’s Through Financing of Sharia Non-Bank Financial Institutions

Economic growth, especially MSMEs, cannot be separated from the role of the microfinance institution sector. Financial institutions are intermediation institutions whose function is to connect parties who have excess funds with parties who lack funds. Based on Law No.10 of 1998 concerning amendments to Law No.7/1992 concerning banking, bank financial institutions consist of commercial banks and people's credit banks. The Ministry of Finance of the Republic of Indonesia, issued Ultra Micro Financing Products (UMI) which are The advanced stage program from the social assistance program to business independence targets micro businesses at the lowest levels, which cannot yet be facilitated by banking through People's Business Credits. UMI is a maximum financing facility of IDR 20 million per customer group and is distributed by non-bank financial institutions (LKBB). This research was carried out in North Sumatra (SUMUT) with the aim of identifying differences between Ultra Micro (UMi) business actors before and after receiving financing assistance from sharia non-bank financial institutions. This research was carried out between June and August 2023. This research uses quantitative analysis methods. The Normality Test is carried out with the aim of finding out whether the data used in a regression model is normally distributed or not. If the distributed data is proven to be normal, this means that the sample used can represent the population used by the measurement. If the significant value is 0.05, it can be declared to have a normal distribution. From the results of research on the Empowerment of Ultra Micro MSMEs through Sharia Non-Bank Financial Institution Financing in North Sumatra before and after receiving Ultra Micro Financing (UMi): There is a development between daily income before and after financing. Sales revenue after getting financing is better than sales revenue before getting financing

The Influence of Solvency, Profitability and Company Size on Audit Delay in Property and Real Estate Companies on the IDX 2018-2021

The capital market is a mechanism or place where various financial instruments are traded. These instruments include stocks, bonds, mutual funds and derivatives. The main objective of the capital market is to facilitate the flow of funds from parties who have surplus funds (investors) to parties who need funds (companies or government) for operational or investment activities. Understanding the Capital Market, here tells how the Primary Market and Secondary Market issue securities for the first time. The function of the Market is as a source of funding, investment, setting share prices, reselling securities. Talking about variables that discuss audit delay, namely the period of time between the closing date of the company's fiscal year and the date of completion of the audit report by an independent auditor. Audit delay is a major concern because it has an impact on the timeliness of presenting financial reports to stakeholders. This research aims to analyze the influence of Sovability, Profitability and Company Size on Audit Delay in Property and Real Estate Companies on the IDX 2018-2021. The data used in this research is secondary data taken from real estate and Property financial reports. This research is research Quantitative with the sampling technique used is purposive sampling. It is hoped that the results of this research will provide a clear picture of the influence of Solvency, Profitability and Size Companies regarding Audit Delay. And the results of this study become a reference for investors in making more measured decisions.

Influence of Intellectual Capital on Financial Performance in the Banking Sector in Indonesia

The aim of this research is to examine the influence of intellectual capital on the financial performance of banking companies which is moderated by good corporate governance. The method used in this research is multiple linear regression analysis with moderating variables using Moderated Regression Analysis (MRA). The population in this study was 45 banking companies. The banking sector is one of the sectors that bridges between people who have excess funds and people who need funds. Not only is the company's financial performance a reference for the company's success, but company resources can also provide increased financial performance for the company's sustainability. Intellectual capital is one of the factors that influences bank performance. The research results show that Intellectual Capital has a positive effect on financial performance and Good Corporate Governance. However, Good Corporate Governance does not moderate the relationship between Intellectual Capital and financial performance. These findings underscore the importance of Intellectual Capital in improving financial performance and Good Corporate Governance practices, but do not support the moderating role of Good Corporate Governance in this relationship.

Equilibrium strategies in a defined benefit pension plan game with regime switching

This paper studies the optimal management of an aggregated overfunded pension plan of defined benefit type as a stochastic differential game in a Markovian regime-switching environment. In this asymmetric two-player game, the worker participants act collectively as a single player that claims a share of the surplus, and the sponsoring firm acts as the player who cares about the investment of the surplus fund assets. We formulate the game model in two scenarios, and use the dynamic programming technique to derive the coupled Hamilton-Jacobi-Bellman equations in each scenario. Furthermore, we propose an efficient algorithm that incorporates a kind of quasi-Newton method and the Runge-Kutta scheme to obtain the equilibrium strategies. Finally, we employ a numerical example to verify our algorithm and analyze the impact of model parameters.

Rulings on Excess Wealth of Unknown Sources According to Islamic Law

Islamic law places a paramount emphasis on safeguarding wealth and preserving it from loss, and it deems its preservation as one of the objectives of Sharia. Islamic law views wealth in a general sense and regards unexplained surplus wealth from a humanitarian perspective. The aim is to elucidate the comprehensiveness, adaptability, and relevance of Islamic Sharia, demonstrating its capability to address contemporary needs by providing rulings that uphold benefits, prevent harm, and contribute to enlightening people about the principles of wealth preservation. Contemporary and emerging issues are numerous and require clarification of their legal rulings, particularly new forms such as the treatment of abandoned funds in customs, the status of deposits in commercial banks, the handling of profits in banks with unknown owners, funds in the possession of money changers, and those held in exchange centers. These issues fall under the purview of Islamic jurisprudence, akin to the concept of "lost property," due to their significant importance in jurisprudential deliberations and contemporary practical applications. The resultant conclusion is that surplus funds of unknown origin are treated akin to lost property. Contemporary and emerging matters necessitate a legal ruling, and if the owner of such funds cannot be found, they are generally allocated to charitable causes, which are broader than the concept of Muslim interests. These causes encompass various charitable endeavors, such as aiding the poor and constructing mosques, as they are considered avenues of charity.

Analisis Sistem Penyaluran Kredit Perbankan (Studi Kasus Pada PT BPR Supra Artapersada Kantor Pusat Operasional)

The banking industry has a role to support the economy which can be done through collecting funds and channeling it back in the form of credit, so that the bank is tasked with being a financial intermediary that connects existing funds from economic units with excess funds to economic units that need financial assistance (deficit), whether it's for working capital, investment and consumption (Effendi 2020). This study aims to find out whether the credit distribution system implemented by PT BPR Supra Artapersada at the Operational Head Office is based on procedures. Use of Qualitative Description as a method in this study, the data used is by collecting data from research objects and analyzing procedures and credit distribution systems. The research data was collected through interviews, observation, and documentation. The results of the research show that credit distribution processes are carried out in various stages of the procedure, namely: the credit application stage, the interview stage, data analysis, debtor visits, collateral assessment, credit analysis, credit decisions, credit binding, and credit disbursement. By having an in-depth understanding of this process and the factors that influence it, we can identify areas for improvement and implement relevant measures to enhance the success of the credit distribution system.

The Effect of Financial Distress Model Altman Z-Score on Stock Prices in Food and Companies Beverages Listed on the Indonesian Stock Exchange Period 2017-2021

The capital market has an important role in supporting a country's economy because the capital market has two functions at once, namely the economic function and the financial function. The capital market is a meeting place between parties who have excess funds (investors) and parties who need funds (companies) by buying and selling securities. The presence of the capital market has an important role for investors, both individual investors and business entities. They can channel the excess funds they have to invest, so that entrepreneurs can obtain additional capital funds to expand their business network from investors in the capital market. Issuers are parties conducting public offerings or companies that obtain funds through the capital market, both private and state-owned companies that seek capital from the stock exchange by issuing securities such as bonds, rights issues, warrants or shares (Malkan et al., 2021).

The Profit-Sharing System in Financing Islamic Banking

Sharia Banking is a business entity that carries out the function of collecting funds from parties with a surplus of funds and then channeling them to parties with a deficit of funds and providing other financial services based on Islamic sharia principles. This article analyzes. This type of research uses normative legal research, using a conceptual approach and a statutory approach as well as the Koran and hadith, primary and secondary. Legal materials obtained and analyzed qualitatively and then presented descriptively. The article aims to explain in general, the principles of sharia financing business activities include justice ('adl), balance (tawazun), kemashlahatan (maslahah), universalism (alamiyah), and do not contain gharar, maisir, usury, zhulm, risywah, and other haram objects. Financing or financing is funding provided by one party to another to support planned investments, both carried out by themselves and institutions. In other words, financing is funding issued to support planned investments. Law Number 10 of 1998 states that financing based on sharia principles is the provision of money or bills that are equated with it based on an agreement or agreement between a bank and another party that requires the financed party to return the money or bill after a certain period of time in return or profit sharing.

Persepsi motivasi mahasiswa dalam minat investasi green sukuk berdasarkan gender

Research was conducted to investigate the motivational perspectives of scholars regarding investing in Green Sukuk based on gender concepts. This concept provides meaning for scholar investment decision-making in carrying out investment strategies. Qualitative methods with a phenomenological approach were employed in this research. The findings revealed that both male and female scholars are motivated to invest in Green Sukuk. These motivations align with the values of environmental preservation, reducing greenhouse gas emissions, the potential for high returns, safe investments guaranteed by the government, and the fact that this investment can avoid usury. Green Sukuk is also perceived as a means to invest surplus funds. Males are more inclined in Green Sukuk due to environmental concerns, while females are attracted by the investment security it offers. This can be explained by the findings that males tend to have higher environmental awareness compared to females, whereas females are more inclined to avoid investments with high risks. Hence, females are more cautious in their investment choices. However, when examining investment decision-making, there are no differences between males and females except in terms of income.

The Effect of Fund Transfer Pricing on Brazilian Bank Branch Performance

Financial institutions have implemented fund transfer pricing in response to demands from regulatory bodies to better manage their risk and as part of their cash-pooling strategies. For banks, implementing a fund transfer price causes a redistribution of income between the various bank branches depending upon the determined transfer price and the volume of resources demanded or offered by each branch. In this context, this study's objective is to examine the effect of the potential implementation of fund transfer pricing on the performance of Brazilian bank branches. This study examines and runs a linear regression of 21 years of monthly banking statistics (2000-2020), lists the most relevant factors contributing to interbranch transfer volume, and demonstrates how an interbranch transfer volume analysis determines the fund transfer price effect in the performance of bank branches. Contrary to the expectations of prior studies, the total volume of interbranch transfers between Brazilian bank branches for the period examined is not zero, which means that, on average, bank branches generate resources that are allocated to other parts of the bank that are not bank branches. This study finds evidence that branches short of funds may be financing their income with resources from branches with excess funds and that implementing funds transfer pricing does not have a null effect in Brazilian bank branches. On average, the branches' incomes increase. While implementing a price for the transfer of funds leads to an increase in the bank branches' average income, it is not necessarily the case that a greater number of bank branches will register an increase in their income. This evidence is important because it demonstrates that a bank's strategy regarding the supply or demand of interbranch resources should inform decisions on whether or not to implement a fund transfer pricing policy.

Penyusunan Rencana Anggaran Pendapatan dan Belanja Koperasi (RAPBK): Pelatihan Perkoperasian bagi Pengelola Koperasi se Jawa Barat

One of the tasks of cooperative management is to prepare the Cooperative Budget and Expenditures (RAPBK) which is usually done at the Annual Member Meeting. Preparing this budget is important to know what the cooperative will implement in the future or next year. Preparing a budget requires several conditions so that the budget and realization do not deviate too much, namely the budget must be realistic and enforceable and based on valid data so that it is not taken carelessly in its preparation. By preparing the RAPBK, it will also be known when the cooperative will get a surplus of funds and when it will get a deficit. So that the shortage of funds could have been anticipated beforehand. and can anticipate what must be done to cover the funding shortfall.