Finance and Financial Management Commons^™

Addressing The ‘Chicken-And-Egg’ Dilemma: Pension Reform, Market Coordination, And Policy Design, Shujaat Khan, Bo Li, Yunhui Zhao

Journal of Banking and Financial Economics

Why do domestic stock markets in many emerging market economies fail to develop, even in the presence of high savings rates? In this paper, we argue that this may be a ‘chicken-and-egg’ problem, which we formalise as a market coordination failure. We first develop a stylised game-theoretical model, showing that when long-term equity investment is subject to network externalities, the Pareto-optimal, high-investment equilibrium is not robust to noise. Individual investors, fearing defection by others, will rationally choose a low-investment (or ‘run’) strategy, trapping the market in a state of underdevelopment. We then show how a specific institutional design – a …

The Specifics Of Green Mortgages: A Case Study Of Poland, Mateusz Tomal, Ewa Gorlecka-Łabiak

Journal of Banking and Financial Economics

The green mortgage market in Poland has received limited research attention. Therefore, this article aims to present the specifics of the green mortgage market in Poland. To thoroughly investigate the issue, in-depth interviews were conducted with 12 banking sector representatives, each with varying experience and professional roles. The study’s findings revealed that there is no formal definition of green mortgages, which hinders both banks and their customers. Currently, green mortgages are rarely granted due to their limited economic benefit to borrowers and the small number of residential properties that qualify. For banks, green mortgages present an opportunity to expand their …

Socio-Demographic Correlates Of Consumers’ Readiness To Use Ai In Financial Decision-Making, Michał Buszko, Tomasz Szopiński

Journal of Banking and Financial Economics

This study investigates the socio-demographic factors associated with readiness to use AI-driven tools in financial decision-making. It uses data from a representative survey of Poles and conceptualises an AI readiness index. It then estimates the relationships between socio-demographic characteristics and this index using an ordinary least squares (OLS) regression model. Additionally, robustness checks are conducted with heteroskedasticityrobust standard errors and multiple imputation. The OLS results were supplemented by one-way Analysis of Variance (ANOVA) with Tukey’s Honestly Significant Difference (HSD) post hoc tests to identify groups’ differences. The results demonstrate that gender, age, education, and income are significantly associated with consumers’ …

The Effectiveness Of Banks’ Influence On Reducing Greenhouse Gas Emissions In Eu Agriculture, Jan Koleśnik

Journal of Banking and Financial Economics

This article analyses the effectiveness of the banking sector in limiting greenhouse gas (GHG) emissions in European Union agriculture and the impact of EU banking groups‘ policies on their Polish subsidiaries. The study is based on data from 2019–2025 sourced from the Eurostat database, the European Banking Authority (EBA), and capital adequacy disclosures (CQ5 and CR1-B reports). The research sample included 14 EU countries with an agricultural share in GDP of between 1% and 3.6% and 62 EU banking groups at the highest level of consolidation. A linear regression model was employed, using the change in gas emissions as the …

Analysis Of Venture Capital Investment For Financing The Development Of The Palm Oil Industry In Indonesia For Private Companies, Salvatore Yitro, Mustika Sari, Gunawan Saroji

CSID Journal of Infrastructure Development

Indonesia is the world's largest crude palm oil (CPO) producer, accounting for 58.04% of global output from 2018 to 2022 and generating between USD 18.2 billion and USD 28.95 billion in annual foreign exchange earnings from 2016 to 2021. The downstream sector, however, remains largely controlled by foreign markets, and private companies face restricted access to conventional bank financing due to negative campaigns against Indonesian palm oil in European markets. No prior study has examined the financial feasibility of venture capital as a financing mechanism for integrated downstream palm oil development by private companies in Indonesia. This study analysed that …

Cdt-1d Cnn Integration With Simpson-Sobolev Regularization For High-Frequency Options Trading: With Fem-Based Heston Option Pricing, Daniel M. Margolis, Johannes Tausch, Arthur K. Selender

Mathematics Theses and Dissertations

This dissertation presents a computational framework for high-frequency options trading that combines Cross-Data-Type 1-D Convolutional Neural Networks (CDT-1D CNN) with Simpson-Sobolev regularization for directional prediction, and finite element methods (FEM) for realistic option pricing during backtesting. The core innovation lies in developing a mathematically rigorous regularization approach that maintains the adaptability of modern deep learning while enabling accurate evaluation through stochastic volatility models. The primary contribution is the Simpson-Sobolev regularization scheme, which extends traditional Sobolev regularization by incorporating Simpson’s rule for numerical integration. This approach achieves higher-order accuracy in approximating the Sobolev norms that control function smoothness. Simpson’s rule attains …

Determinan Fungsi Intermediasi Bank Kbmi 4 Di Indonesia, Friestha Sari Putri, Telisa Aulia Falianty

Jurnal Ekonomi dan Pembangunan Indonesia

This study examines the effects of bank-specific characteristics and macroeconomic variables on the intermediation function of KBMI 4 banks in Indonesia during 2014–2023. The variables include NPL, BOPO, CAR, bank size, ROA, GDP, BI Rate, and pandemic and recovery dummies. Secondary data from four KBMI 4 banks were analyzed using a panel-data Fixed Effect Model. The results show that NPL has a negative effect, while BOPO, CAR, ROA, GDP, and BI Rate have significantly positive effects on LDR. Bank size is insignificant. The pandemic and recovery dummies reduce LDR by 10.43 percent and 10.33 percent, respectively.

What We Know About Accounting Ratios: Methodological Considerations, Wojciech Kuryłek, Oskar Kowalewski

Studia i Materiały Wydział Zarządzania Uniwersytet Warszawski

Purpose: This paper provides a comprehensive literature review of the methodological aspects of financial ratio analysis, consolidating dispersed knowledge on the computation, statistical properties, and appropriate usage of accounting ratios.

Design/Methodology/Approach: The study adopts a narrative literature review methodology, systematically surveying published research on financial ratio distributions, normality testing, data transformations, outlier handling, the proportionality assumption, dimensionality reduction techniques, compositional data analysis, and recommended ratio sets for corporate financial research.

Findings: Financial ratios predominantly deviate from normal distributions, exhibiting skewness, excess kurtosis, and sensitivity to outliers. Transformation techniques such as logarithmic, square root, and Box‑Cox methods yield mixed results in …

Analisis Implementasi Clinical Pathway Terhadap Length Of Stay (Los) Dan Biaya Perawatan Pasien Anak Dengan Demam Berdarah Dengue (Dbd) Di Rsi Nu Demak, Akhmad Safi’I, Muhammad Zulfikar Asumta, Abdul Aziz

Jurnal Ekonomi Kesehatan Indonesia

Clinical pathway (CP) is a quality and cost control instrument in hospitals designed to ensure service standardization, efficiency of Length of Stay (LOS), and control of healthcare costs. Dengue Haemorrhagic Fever (DHF) in children is an infectious disease that often requires hospitalization, with considerable variation in LOS and treatment costs. This study aimed to assess the effectiveness of CP implementation on LOS and cost of care among pediatric DHF patients at Rumah Sakit Islam Nahdlatul Ulama (RSI NU) Demak. This research applied a quantitative approach using a retrospective descriptive-analytic design. Data were obtained from medical records of 34 pediatric DHF …

From Metrics To Impact: Exploring Social Dimension Impact Within Employee Lens In Banking Sector, Meiwinda Mariana Sianturi, Marko S. Hermawan

Jurnal Akuntansi dan Keuangan Indonesia

Background: This study explores the integration of the social dimension of Environmental, Social, and Governance (ESG) principles within the banking sector, using the GRI 400 standards as a guiding framework. Method: Drawing on qualitative data from 18 employees at different levels ranging from outsourcing staff to Group Head level at one of Indonesian private bank. Findings: The findings reveal a clear gap between formal ESG metrics and employees’ real-life experiences. Employee awareness and perceptions differ notably by position, with higher level employees often showing greater responsiveness and a stronger intention to integrate sustainability into their daily work. Conversely, outsourced and …

Analisis Kesesuaian Prinsip Syariah Pada Mekanisme Buy Now, Pay Later (Shopee Paylater), Berliana Rizkia

Jurnal Manajemen dan Usahawan Indonesia

The development of financial technology in Indonesia has brought various innovations in payment systems, one of which is the Buy Now, Pay Later (BNPL ) service offered by Shopee through the Shopee PayLater feature. This service allows consumers to purchase goods online with deferred payment. However, this mechanism raises questions about its compatibility with sharia principles, considering Indonesia has the world's largest Muslim population. This research aims to analyze the Shopee PayLater mechanism and assess its compliance with Islamic economic principles, particularly regarding the prohibition of riba , gharar, and maysir. The method used is qualitative research with a descriptive-analytical …

Deep Analysis In Excel Without Vba: New Functionality Could Validate Ai Answers Or Replace Them Altogether, Tom Arnold, Timothy Falcon Crack

Finance Faculty Publications

You can exploit your current knowledge of Excel's formula language to build customized Excel functions. These user-defined functions are so fast and transparent that they may be useful for validating AI answers or replacing them altogether. You can now use loops that previously required VBA or JavaScript. The functions use Excel's new =LAMBDA and =MAKEARRAY functions. You can assign personalized names to functions and their input variables, and they are portable between Workbooks. We present simple examples showing basic syntax, building up to a compact fixed income example: a user-defined function using a Taylor series to estimate the change in …

Does Green Electricity Mitigate Carbon Emission Externalities? Industry-Specific Effects On Firm Profitability, Operational Efficiency, Valuation, And Market Risk In Taiwan Listed Companies, Mutiara Eka Puspita, Wei Hwa Pan, Bon Long Hsia, Huynh Phu Tan

Bulletin of Monetary Economics and Banking

his study explores the relationship between carbon emissions and firm financial performance across industries and how green electricity adoption moderates this effect. Using 9,925 firm-year observations from the Taiwan Economic Journal, we estimate panel regressions and compare Fixed Effects robust and Driscoll-Kraay (1998) standard errors to ensure robustness. Two-way and three-way interaction models reveal a green electricity paradox: biotech firms benefit, while financial and high-tech sectors decline. These findings highlight the need for sector-specific ESG investment models and tailored policy support to ensure an equitable green transition. The study contributes by integrating environmental-financial dynamics with industry heterogeneity in emerging markets

Bank Stability Under Global Risk Uncertainty: The Interplay Of Internal Characteristics And External Regulatory Environment, Erfan Rachmadi, Bowo Setiyono, Bimo Saktiawan, Muizzuddin Muizzuddin

Bulletin of Monetary Economics and Banking

This study examines the impact of global political and climate uncertainty on bank stability, utilizing panel data from 604 banks across 40 countries during the period 2011–2022. Through fixed effects and difference GMM methodologies, the analysis reveals that both geopolitical and climate risks adversely affect bank stability. Notably, tightening governance creates a ‘regulatory compliance paradox’ which leads to lower climate readiness and bank stability. We also identified that capital buffers matter in enhancing bank readiness to face geopolitical and climate uncertainty. However, efficiency plays a dual role. In times of geopolitical risk, it is necessary, but we also can’t achieve …

Expansion, Diversification, And Delinquency In Indonesian Fintech Lending Platforms, Muhammad Miqdad Robbani, Megat Nagainaka, Mahanani Margani

Bulletin of Monetary Economics and Banking

This study examines the impact of loan expansion and diversification strategies on credit risk in Indonesia’s fintech lending sector using panel data from 102 registered platforms between 2022 and 2025. Employing fixed-effects regression models, we analyse how loan growth and diversification influence delinquent loans. The findings reveal a non-linear relationship between loan growth and delinquent loans, implying that while moderate expansion reduces risk, excessive growth is associated with increased credit defaults, and diversification is not significant. These findings emphasise the importance of prudent growth and targeted risk management to ensure the sustainability of the fintech lending ecosystem.

A Smart Contract Framework For Project Financing In Gold Mining Operations: Implications For Improved Financial Forecasting, Silvia Lydia Priskilla, Mohammed Ali Berawi, Mustika Sari Dr.

Smart City

Gold mining projects are characterized by high capital intensity and significant operational variability, making financial forecasting particularly sensitive to the quality and timing of cash-flow data. In practice, conventional financing systems rely on multi-stage administrative processes that create delays between work completion and payment realization, reducing the reliability of financial records used for investment evaluation.

This study aims to develop a smart contract-based financing framework to improve the accuracy of profitability projections in gold mining projects. A case study approach is employed using operational and financial data from a mining project in Sumatra over the period 2023–2026. The analysis combines …

Customer Adoption And Trust In Indonesian Islamic Banking: A System Dynamics Perspective, Imam Wahyudi Mr., Komarudin Komarudin, Prof. Rifki Ismal

ASEAN Marketing Journal

Research Aims: This study reframes the growth challenge of Indonesia’s Islamic banking as a financial-service marketing problem: strengthening customer adoption, trust, and perceived value to expand market penetration in a dual-banking environment while maintaining resilience.

Design/Methodology/Approach: Using a system dynamics perspective, the study develops a causal loop diagram (CLD) grounded in a review of policy-document and prior empirical marketing/Islamic banking literature. A multi-actor lens is applied to map how regulators, government, customers, conventional banks, fintech, and ESG investors shape adoption and competitive dynamics.

Research Findings: The CLD identifies seven reinforcing loops that can accelerate adoption and market share (capability reinvestment, …

Modeling Volatility Dynamics In The U.S. Public Real Estate Stock Market: Evidence From Conditional Volatility Decomposition And Sector Benchmarking, Mariam Mohamed El Naghi

Theses and Dissertations

This study examines volatility dynamics between the U.S. public real estate stock market and the broader equity market, with a focus on sectoral conditional volatility sensitivity to market conditional volatility across different volatility regimes. Using daily stock price data from  to , conditional volatilities of real estate stocks and the market index are estimated through a GARCH-framework that incorporates Monday and Friday dummy variables in both the conditional mean and conditional variance equations as controls for calendar-based anomalies. The estimated conditional volatilities are used to estimate volatility-to-volatility elasticities at the firm and aggregate levels and are benchmarked against other equity …

Does Green Pay Less? Global Corporate Bond Evidence On Primary And Secondary Yields, Youssef El Kenawy

Theses and Dissertations

The greenium, or green premium, refers to the lower yield that arises from a bond’s green label, conditional on otherwise identical contractual features and credit risk. In our study, we estimate the greenium by combining causal matching techniques with a neural network–based propensity score approach to construct a closely comparable set of green and conventional bonds. Our empirical framework incorporates issuer fixed effects and currency × issuance-year fixed effects, ensuring that our estimates reflect the impact of the green label itself rather than differences in macro-financial conditions or issuer composition.

Our findings indicate that, once currency-specific issuance-year conditions are absorbed, …

Creating User-Defined Financial Statement Analysis Functions In Excel, Tom Arnold, Xia (Summer) Liu, Cassandra D. Marshall

Finance Faculty Publications

KEY TAKEAWAYS:

Using Excel’s =LAMBDA and =MAKEARRAY functions, user-defined functions are created to generate (1) sets of ratios covering net working capital, DuPont analysis, and leverage, and (2) a set of related cash flow calculations.

Computing and presenting related ratios and cash flows as a unified set allows for more efficient financial statement analysis.

User-defined functions can be copied from a referenced source file into any new spreadsheet, allowing immediate use in the new file because all associated programming is transferred.