Finance and Financial Management Commons^™

Cash Flow And Accrual Anomalies: Evidence From Borsa Istanbul, Emine Kaya

The Indonesian Capital Market Review

This study aims to determine the persistence of earning and its components and whether investors accurately evaluate the information related to the earning and its components. The study covers the firms operating in Borsa Istanbul between 2005-2017 time period. We sort the accruals and cash flows into five portfolios. Then, we employ linear regression and Mishkin test estimations. Moreover, we compare the asset pricing models with nine metrics in explaining the cash flow and accrual anomalies. Linear regression and Mishkin test estimations show that the persistence of earning is high. The other finding is that cash flow and accrual do …

The Analysis Of The Roles Of Bitcoin, Ethereum, And Gold As Hedge And Safe-Haven Assets On The Indonesian Stock Market Before And During The Covid-19 Pandemic, Carla A. Wijaya, Maria Ulpah

The Indonesian Capital Market Review

The uncertainty due to the COVID-19 outbreak has encouraged investors to look for value hedging instruments to minimize risk, which can be in the form of hedging assets or safe-haven assets. In response to it, this study aims to find out whether Bitcoin, Ethereum, and gold can behave as hedging and safe-haven assets before and amid the pandemic in Indonesia. The strategy is by observing the effects of volatility and return of Bitcoin, Ethereum, and gold on the Indonesian stock market. This study employed both quantile regression and simple linear regression models on data of daily closing price taken before …

Monetary Policy And Herding Behavior: Empirical Evidence From Indonesia Stock Market, Retno Puspita K. Wicaksono, Telisa Aulia Falianty

The Indonesian Capital Market Review

This study aims to analyze the role of monetary policy, including the spillover of the US Federal Reserve (Fed) monetary policy, in the existence of herding behavior in the Indonesian stock market. We used beta herding to measure the level of herding behavior and analyze the relationship between monetary policy and beta herding using the VECM model, as well as IRF and FEVD. This study shows that monetary policy plays a role in the existence of herding behavior in the Indonesian stock market. Although the effect of monetary policy on herding behavior is relatively small, Fed monetary policy shocks have …

Waqf Fund Management Through Micro Waqf Bank Program In Indonesia, Fachry Ganiardi Danuwijaya, Nurwahidin M.Ag

Journal of Strategic and Global Studies

Waqf is a muamalah activity that has a very important economic and social role in Islamic history. Waqf is one of solutions to the problem of poverty and social inequality in society. The establishment of the Micro Waqf Bank initiated by the government together with the Financial Services Authority (OJK) has played an important role as one of the new Islamic microfinance institutions in financial inclusion in Indonesia. This paper will discuss how the management of waqf funds through the Islamic Waqf Bank program based on pesantren in efforts to alleviate poverty and social inequality which has become a chronic …

Effect Of Covid 19 Pandemic On Pharmaceutical Industry In Terms Of Inventory And Logistics Management, Shubhabrata Basu, Rimu Chaudhuri

Himalayan Research Papers Archive

The World Health Organization (WHO) declared COVID-19 a pandemic on 11^th March 2020, after the outbreak that was first reported in Wuhan, China in December 2019. The COVID-19 pandemic affected world economy including the pharmaceutical sector. The health crisis unleashed in the world because of this pandemic and the attempts of various countries and organizations in the world to contain it have also fuelled the greatest economic crisis in modern history. This significant fall in world trade in goods and services have been triggered by the interruption and break down of local and global supply chains, generating high levels …

Cryptocurrency, Decentralized Finance, And The Evolution Of Money: A Transaction Costs Approach, James L. Caton Jr, Cameron Harwick

Journal of New Finance

We leverage a transaction costs narrative to provide a theoretically unified presentation of the evolution of exchange, with the latest evolutionary frontier being cryptocurrency and decentralized finance. We show that with each new development in the evolution of money, the new form or medium of exchange must reduce transaction costs relative to relevant alternatives. The development of blockchain and cryptocurrency reduced the cost of transferring currency by removing the need for a trusted third party to intermediate funds while also providing the benefit of anonymity/pseudonymity. Likewise, decentralized finance does not require a third party to intermediate savings and investment and …

Redefining Banking Through Defi: A New Proposal For Free Banking Based On Blockchain Technology And Defi 2.0 Model, Francesco Spinoglio

Journal of New Finance

This article aims to offer a new free banking proposal with a 100% cash ratio that uses the DeFi 2.0 model. The current monetary system, based on Central Banking with fractional reserve, has created a huge debt spiral and has distorted the entire production system, which produces deep recurring socioeconomic crises that increasingly impoverish citizens. This paper presents an innovative proposal that aims to take advantage of blockchain technology using the Defi 2.0 model. It would be a first attempt to merge centralized finance with the DeFi world, laying the foundation for a fairer and more decentralized monetary society.

Numeracy And Financial Wellbeing During The Covid-19 Pandemic, Nora Wikoff

Numeracy

This paper examines the role of numeracy in smoothing financial difficulties during the COVID-19 pandemic. The results show that numeracy was associated with a 30% reduction in late or non-payment of bills and a 20% reduction in the odds of feeling financially squeezed. The effect of numeracy on financial wellbeing was remarkably consistent across levels of education, ethnicity, and gender, suggesting that improving numeracy levels in the population may be an effective strategy to increase financial capability across the board. However, while numerate individuals were less likely to experience financial difficulty, high numeracy did not predict narrower gaps between Whites …

The Motivations And Practices Of Impact Assessment In Socially Responsible Investing: The French Case And Its Implications For The Accounting And Impact Investing Communities, Diane-Laure Arjalies, Pierre Chollet, Patricia Crifo, Nicolas Mottis

Business Publications

This research note elaborates on the impact assessment practices of the French Socially Responsible Investing (SRI) industry. The research was conducted by the Scientific Committee of the French public SRI label based on interviews, participative observation, a survey, and documentary evidence. SRI is usually distinguished from impact investing in terms of investors’ different intentions (contributing to sustainable development in a financially savvy way for SRI vs. demonstrating a societal impact for impact investing). We show that, beyond this distinction, the meanings and motivations behind impact assessment in the SRI community are broadly different from impact assessment practices in impact investing, …

The Standards Controlling The Islamic Finance Designs, Ashraf Dawaba

Al Jinan الجنان

الهندسة المالية قديمة قدم المعاملات المالية ذاتها ، وإن كانت كمصطلح عرف طريقه للوجود والانتشار في الثمانينات من القرن الماضي لمواجهة المخاطر التي تتعرض لها منشآت الأعمال . وقد كان سوق رأس المال المنطلق الأساسي للهتدسة المالية، فمن خلاله ابتكرت العديد من الأدوات والعملياتالمالية وعملت على صياغة حلول خلافة لمشاكل التمويل. وبات مصطلح الهندسة المالية لصيقاً بالمشتقات المالية بدرجة كبيرة.

ومن خلال مصطلح الهندسة المالية الإسلامية، وإن كان مضمونه يمتد عبر جذور الماضي من عهد الرسالة، فقد عرف المسلمون الأوائل إدارة المخاطر والابتكار والتطوير ووضع حلول مبدعة لمشاكلهم المالية في إطار البيئة التي كانوا يعيشون فيها.

وتسعى هذه الدراسة إلى …

Covid-19’S Impact On Financial Markets In Spain, Billy Fleurima

CISLA Senior Integrative Projects

Late December 2019, emerged what would be recognized as the world’s worst global pandemic since the Spanish Flu. In a 23 month period, roughly 4 million people have died. Everyone’s life has now forever been changed as we move to a virtual world. Remote learning and remote work have dominated both 2020 and 2021. Surprisingly, markets in the United States flourished, dominated by a relatively new trend: Special Purpose Acquisition Companies or SPAC. Across the globe, as countries enforce strict lockdown restrictions, major trends start to emerge worldwide such as a global dearth of semiconductor chips, rise in inflation and …

Analytical Model For Predicting Bitcoin Price, Bianca Berman

Theses and Dissertations

The purpose of this research is to examine the relationships between Bitcoin and several financial metrics, such as indices and commodities, in efforts to reveal any influential significance between a specific variable and the price value of Bitcoin. The interested parties pertaining to this research include investors of crypto, university students specializing in business, or current shareholders of Bitcoin. The indices being analyzed for this research consist of the following: Nasdaq 100, S&P 500, Dow Jones Industrial Index, Russell 2000, Nikkei 225, S&P 500 Volatility Index (VIX), and the Shanghai SE Composite Index. The commodities being analyzed for this research …

Spacs: Is It For Real Estate?, Melvyn Teo, Ronald Tan, Indran Thana, Yin Mei Lock

Perspectives@SMU

SPACs are gaining popularity but investors should do their homework

Laborem Exercens And The Subjective Dimension Of Work In Economics And Finance, Geoffrey Frieson

Department of Finance: Faculty Publications

The objective dimension of work involves the person acting on external objects through the process of economic production. But because persons tend toward self-realization, and because work is an integral part of this process, the person is also the subject of work. The subjective dimension of work involves work as a creative process operating on the person performing the work. In the encyclical Laborem Exercens, John Paul II argues that the subjective dimension of work is primary and that the primary basis of the value of work is the subject: man himself. This does not mean that the economic …

The Evolution Of Women In Business: During The Covid-19 Pandemic And Beyond, Carleen Ellerbruch

Senior Honors Projects

No abstract provided.

The Covid-19 Pandemic And The Importance Of Financing The Biotechnology Industry In South Africa, Ramazan Uctu, Karen Eksteen

The Journal of Entrepreneurial Finance

Whether it is a government research institution, a public-private partnership, or a private enterprise, the South African biotechnology industry requires funding for the biotechnology industry. Our goal with this research is to look into the role of venture capital (VC) in financing biotech enterprises and demonstrate how VC finance could aid in the development of diagnostic kits and vaccines for Covid-19 or future pandemics in South Africa.

The study aims to provide policymakers with a clear image of the importance of funding the biotechnology sector, notably during the Covid-19 period, as recognized by the industry's key players. We employed a …

Prison Break From Financialization: The Case Of The Pri Reporting And Assessment Framework, Diane-Laure Arjaliès, Daniela Laurel, Nicolas Mottis

Business Publications

Purpose

This article seeks to unravel the mechanisms through which financial actors agreed upon a sustainability accounting standard without financializing social and environmental issues, i.e., assigning a monetary value to sustainability.

Design/Methodology/Approach

The article examines the Reporting and Assessment Framework created by the United Nations Principles for Responsible Investment (UN-PRI), the leading reporting sustainability framework in the asset management industry. It relies on a longitudinal case study that draws upon interviews, participant observation, and archival data.

Findings

The article demonstrates that the conception of the framework was a funnelling process of sustainability valuation comprising two co-constituted mechanisms: a process of …

The Impact Of Assets Structure And The Components Of Cash Conversion Cycle On The Egyptian Smes Financial Failure Predictability, Dr. Hassan Mounir El-Sady, Hatem Ahmed, Dr. Hosny Hamdy

The Journal of Entrepreneurial Finance

This study investigates determinants of Egyptian SMEs financial failure predictability based on a sample of 32 failure SMEs and 28 non-failure SMEs for the period 2013 and 2019. The determinants of SMEs financial failure are categorized into four groups; Working Capital, Asset Structure, Liquidity, and Leverage. The factor and logistic regression analysis are employed to identify the most significant independent variables that classify between failure and none-failure Egyptian’s SMEs and determine the driver of SMEs financial failure. Our findings significantly show that failing SMEs suffer from long cash conversion cycles resulting from long inventory holding period, average collection period, and …

When The Social Networks And Internet Come To The Rescue Of Entrepreneurs: The Problematic Of Crowdfunding In Africa, Omenguele Rene Guy, Mbouolang Yimpi Cedric

The Journal of Entrepreneurial Finance

Since 2007, crowdfunding platforms have abounded on the web. It is estimated at 2.5 billion dollars the potential of the crowdfunding market in sub-Saharan Africa by 2025. The objective of this paper is to make an inventory of Crowdfunding activities in Africa, region with a most restrictive access to bank loan by SMEs, start-ups and young entrepreneurs. It appears from the economic and socio-cultural realities that Africa is a region with more potential catalyst for crowdfunding industry takeoff. However, there are many factors which are presented in this study as potential inhibitors of African CF market competiveness. This study has …

Sme’S Cost Of Debt: A Meta-Analysis Of Borrower, Creditor And Financial Statement Verification Attributes, Thomas R. Loy, Stefan Mohrmann

The Journal of Entrepreneurial Finance

Private firm financing, given the far-reaching importance of non-publicly traded companies for global output and employment, is still a relatively underexplored area. Since the seminal work of Petersen and Rajan (1994), only a small branch of research into private firms’ cost of debt has been established. We aggregate the full body of this research that has empirically investigated antecedents of private firms’ cost of debt in a meta-analysis. The foremost antecedents can be categorized into either borrower, creditor or financial statement verification attributes. Our results reveal a set of 11 highly significant and robust determinants.