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1
Raffer, Kunibert. "International Financial Institutions and Financial Accountability." Ethics & International Affairs 18, no. 2 (September 2004): 61–77. http://dx.doi.org/10.1111/j.1747-7093.2004.tb00468.x.
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While useful proposals to reform International Financial Institutions (IFIs) have been widely discussed, the lack of meaningful financial accountability has received little attention. Considering the substantial damage done by IFIs, this is surprising both from an ethical and an economist's point of view. In a market economy anyone must face the economic consequences of their actions and decisions. If consultants give advice negligently or without obeying minimal professional standards, they have to pay compensation for the damage they have caused. National liability and tort laws serve the purpose of compensating those suffering unlawful damages and of deterring such behavior. By contrast, tortious damage caused by IFIs must be paid by IFIs' borrowers, including many of the world's poorest people. IFIs may even gain financially from their own negligence by extending new loans necessary to repair damages done by their prior loans. One failed adjustment program calls for the next. This mechanism makes IFI-flops generate IFI-jobs and additional income. This perverted incentive system rewarding errors, negligence, and even violations of the very constitutions of IFIs is absolutely at odds with the principles on which Western market economies rest. It must be brought to an end. This essay presents the idea of financial accountability, showing how easily reforms making IFIs financially accountable could be implemented. Moreover, embracing financial accountability would bring IFI operations closer to the intentions of their founders, who wanted IFIs subject to the basic legal and economic concepts of financial accountability not exempt from it. The market mechanism and its beneficial incentive system must finally be brought to IFIs.
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Park, Susan. "How Transnational Environmental Advocacy Networks Socialize International Financial Institutions: A Case Study of the International Finance Corporation." Global Environmental Politics 5, no. 4 (November 1, 2005): 95–119. http://dx.doi.org/10.1162/152638005774785480.
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Environmental organizations, characterized here as transnational advocacy networks, use various strategies to “green” international financial institutions (IFIs). This article goes beyond analyzing network strategies to examine how transnational advocacy networks reconstitute the identity of IFIs. This, it is argued, results from processes of socialization: social influence, persuasion and coercion by lobbying. A case study of the International Finance Corporation (IFC), as a member of the World Bank Group, is used to analyze how an IFI internalized sustainable development norms. The IFC finances private enterprise in developing countries by providing venture capital for private projects. Transnational advocacy networks socialized the IFC through influencing its projects, policies and institutions via direct and indirect interactions to the point where the organization now sees itself as a sustainable development financier. This article applies constructivist insights to the greening process in order to demonstrate how socialization can reshape an IFI's identity.
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Bradlow, Daniel D., and Andria Naudé Fourie. "The Operational Policies of the World Bank and the International Finance Corporation." International Organizations Law Review 10, no. 1 (2013): 3–80. http://dx.doi.org/10.1163/15723747-01001002.
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International financial institutions (‘IFIs’), such as the World Bank and the International Finance Corporation (‘IFC’), have progressively refined their own operational policies and established institutional accountability mechanisms, such as the Inspection Panel and Compliance Advisory Ombudsman, in response to external and internal demands for their enhanced accountability. This article argues that these two developments are instrumental in transforming IFIs such as the World Bank and the IFC into law-making and law-governed institutions. We argue that the operational policies, as well as the institutional processes surrounding these policies (that is, rule-making, rule-application and rule-enforcement processes), should be assessed in legal terms – even though the legal nature of the operational policies are contested, and the policies are only applicable to IFI staff and their borrowers. The main objective of this article is to provide an analysis in support of this contention.
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Mohammed, Aziz Ali. "IFI Conditionality on Governance." Pakistan Development Review 45, no. 4II (December 1, 2006): 565–71. http://dx.doi.org/10.30541/v45i4iipp.565-571.
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This note looks at the dilemmas faced in the application of conditions on governance by the international financial institutions (IFI) in the course of their lending operations in member states. Governance relates to the activities of governments and other public sector entities in the exercise of their financial and regulatory functions and that bear directly on the proper use of funds provided by the IFI. Given the extensive range of state action, conditions relating to governance can apply to diverse areas, including the allocation of public expenditures and the collection of taxes, the rules affecting procurement of goods and services by public authorities, the effectiveness of the judicial system in enforcing contracts and the arbitration of claims and obligations between governments and all the social entities they deal with.
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MOURMOURAS, ALEXANDROS, and PETER RANGAZAS. "INTERNATIONAL LENDING AND THE SAMARITAN'S DILEMMA." Singapore Economic Review 60, no. 01 (March 2015): 1550002. http://dx.doi.org/10.1142/s0217590815500022.
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We analyze how the altruism of an International Financial Institution (IFI) towards its Low-Income member Countries (LICs) alters the effectiveness of its loans. We study IFI loans to a credit-constrained LIC. The IFI's repayment policy is determined by the interplay of its concerns for the welfare of the loan recipient and its fiduciary responsibilities to creditor countries. If the IFI is unable to commit to either the size of future loans or the repayment terms on past loans, conditional loans are superior to unconditional loans. Thus, IFI altruism and the inability to commit are sufficient reasons to equip loans with conditions. Conditional loans produce an efficient allocation of resources, so altruism is not a fundamental reason that loans fail to increase welfare.
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Ebert, Franz Christian. "A Public Law Perspective on Labour Governance by International Financial Institutions." International Organizations Law Review 17, no. 1 (April 18, 2020): 105–32. http://dx.doi.org/10.1163/15723747-01701005.
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Over the last decades, international financial institutions (‘IFIs’) such as the International Monetary Fund (‘IMF’) or the World Bank have emerged as important actors in the area of labour governance. While the conditionality attached to IFI lending programmes is of particular importance in this regard, labour governance by IFIs transcends these well-known mechanisms. Through a variety of other governance instruments IFIs influence labour standards in their members’ territories far beyond the countries that are recipients of their financial support. This paper sheds light on the so far under-researched IMF Article IV Consultations by analysing how they impact labour standards at the domestic level. After providing an overview of the origins, scope, and the procedure of the Article IV Consultations, the paper shows that these have sometimes advocated far-reaching labour law reforms. The paper then employs the International Public Authority approach to better understand the legitimacy concerns created by these Consultations in terms of labour governance. With a view to addressing these concerns, the paper discusses avenues to strengthen the legal framework for the IMF’s Article IV Consultations in substantive and procedural terms.
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Mishchenko, Svitlana, Svitlana Naumenkova, Volodymyr Mishchenko, and Dmytro Dorofeiev. "Innovation risk management in financial institutions." Investment Management and Financial Innovations 18, no. 1 (February 17, 2021): 190–202. http://dx.doi.org/10.21511/imfi.18(1).2021.16.
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The extensive use of financial technologies and innovations in the provision and utilization of financial products and services causes new risks that require constant attention. The article aims to improve innovation risk management methods to increase the operational stability of financial institutions in Ukraine. By generalizing international practice, the types of innovation risks are classified, and their impact on the activities of financial institutions and consumers is characterized. The attention is drawn to the control strengthening over the impact of operational and regulatory risks, based on important theoretical provisions contained in WBG, BIS, BCBS, and FSB documents. An organizational scheme for the interaction of a financial institution and an IT company is proposed to conclude “smart contracts” based on the use of a cloud service and blockchain technology. The authors propose additional methods of insurance protection and compensation for losses caused by the implementation of risks of using ICT and innovation based on creating the Collective Risk Insurance Fund of financial institutions; offer approaches to the calculation of variable and fixed parts of the contribution to the insurance fund for certain groups of financial institutions. It is concluded that to maintain the proper operational stability of financial institutions in Ukraine, it is necessary to introduce additional collective compensation methods for the risks of innovation and the strengthening of cyber threats.
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Halliday, Terence C. "Architects of the State: International Financial Institutions and the Reconstruction of States in East Asia." Law & Social Inquiry 37, no. 02 (2012): 265–96. http://dx.doi.org/10.1111/j.1747-4469.2011.01266.x.
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For international financial institutions (IFIs), it is a continuing puzzle why the global norms they propagate are enacted either reluctantly or not at all. This article shows that failures of enactment and implementation frequently occur because many IFI-initiated law reforms go far beyond changing the law; they amount to a restructuring of the state itself and the accompanying redistributions of power. This article demonstrates how state restructuring can occur in a technical area of commercial law by reanalyzing the ways global and transnational designs of corporate bankruptcy regimes fared between 1998 and 2006 in three countries variously affected by the Asian financial crisis: China, Indonesia, and South Korea. State restructuring occurred by (1) shifting the boundary between the market and state, (2) shifting power inside the state, and (3) vesting new powers in the state. The article identifies the recursive dynamics through which the changes unfolded and shows how variations in the efficacy of international architects of the state can be attributed to the interplay of four sets of factors: the coherence of global norms, the relative power of global versus state actors, domestic demand and mobilization for restructuring, and the extent of state restructuring that reforms will induce.
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Bhattacharya, A. K. "Indian Perspectives on International Financial Institution (IFI) Reforms with Special Emphasis on the International Monetary Fund." Margin: The Journal of Applied Economic Research 4, no. 2 (May 2010): 139–55. http://dx.doi.org/10.1177/097380101000400201.
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Lorenzo-Alonso, Alberto, Ángel Utanda, María Aulló-Maestro, and Marino Palacios. "Earth Observation Actionable Information Supporting Disaster Risk Reduction Efforts in a Sustainable Development Framework." Remote Sensing 11, no. 1 (December 29, 2018): 49. http://dx.doi.org/10.3390/rs11010049.
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Disaster risk reduction (DRR) is a high priority on the agenda of main stakeholders involved in sustainable development, and earth observation (EO) can provide useful, timely, and economical information in this context. This short communication outlines the European Space Agency’s (ESA) specific initiative to promote the use and uptake of satellite data in the global development community: Earth Observation for Sustainable Development (EO4SD). One activity area under EO4SD is devoted to disaster risk reduction (EO4SD DRR). Within this project, a team of European companies and institutions are tasked to develop EO services for supporting the implementation of DRR in International Financial Institutions’ (IFI) projects. Integration of satellite-borne data and ancillary data to generate insight and actionable information is thereby considered a key factor for improved decision-making. To understand and fully account for the essential user requirements (IFI and client states), engagement with technical leaders is crucial. Fit-for-purpose use of data and comprehensive capacity building eventually ensure scalability and long-term transferability. Future perspectives of EO4SD and DRR regarding mainstreaming are also highlighted.
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Abdulmumin, Biliqees Ayoola, Oyebola Fatima Etudaiye-Muhtar, Abdulrasaq Taiye Jimoh, and Ola Ridwan Sakariyahu. "An Investigation into the Level of Financial Inclusion in Sub-Saharan Africa." Scientific Annals of Economics and Business 66, no. 1 (March 1, 2019): 41–63. http://dx.doi.org/10.2478/saeb-2019-0004.
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Abstract Financial inclusion is crucial for redistribution of economic resources between the deficit and surplus units in an economy. Despite the importance of financial inclusion, especially for economic growth of developing regions such as Sub-Saharan Africa, the prevailing level financial inclusion remain an open question. Against this background, this study investigates the level of financial inclusion in Sub-Saharan Africa between 2005 and 2015. This study employs secondary data obtained from the International Monetary Fund (IMF). The data obtained was subjected to Principal Component Analysis to determine the level of financial inclusion in Sub-Saharan Africa. The findings show that Sub-Saharan Africa has a medium level of financial inclusion during the observed period with Index of Financial Inclusion (IFI) value of 0.095023. The study concludes that Sub-Saharan Africa has high propensity to achieve a high level of financial inclusion in the region if more outlets of financial institutions are established.
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Al Kharusi, Sami, and Sree Rama Murthy Y. "Financial sustainability of private higher education institutions: the case of publicly traded educational institutions." Investment Management and Financial Innovations 14, no. 3 (October 5, 2017): 25–38. http://dx.doi.org/10.21511/imfi.14(3).2017.03.
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Public and private education can unlock different doors and help to flood the country with a rising power, sunlight and sustainable development. Hence, this paper argued that there is a need to sustain both public and private higher education. Financial difficulties restrict private higher education from balancing their budget and maintain a balance between a quality education and maximization of shareholders wealth. This paper outlines and analyzes a critical business model for higher education institutions, Dhofar University and Majan College, both of which are publicly traded in Muscat Securities Market. Both the educational institutions are critically examined from profitability, liquidity, long term solvency and asset management perspective using appropriate financial ratios. Five year forecasts of financial statements up to 2021 are estimated to evaluate the financial stability of the two educational institutions. The paper uses Monte Carlo simulation technique to examine the issue of financial sustainability. Overall the finding shows positive financial results for Majan College compared to Dhofar University. The key take away from the analysis is that educational institutions should be funded primarily by equity and not by debt to survive, sustain and provide high quality education.
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Hakim, Lukman. "Efektivitas Peran Audit Internal Syariah: Studi Literatur Terbatas." Jurnal Akuntansi dan Governance 2, no. 1 (July 16, 2021): 14. http://dx.doi.org/10.24853/jago.2.1.14-24.
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The Islamic financial Institutions (IFI) governance structure required an internal shariah auditors to assist the duties of Shariah Supervisory Board (SSB). Internal audit was a key player besides SSB, External auditors and the Audit and Governance Committees (AGC). This study was to examine the effectiveness of the role of internal shariah auditors. By adopting limited literature review of indexed international journals was used in this study. The result of the study based on limited literature data sources were the effevtiveness of internal shariah audit on internal audit organizations ini the Good Corporate Governance (GCG) structure, namely the structure, requirements and processes of internal shariah audit. In addition, internal and external factors also affected the effectiveness of internal shariah audit. The Role of the AGC affected the effectiveness of internal audit. Governance and internal audit of Shariah non compliant income were important parts of risk management in IFI
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Piccolino, Giulia. "Does democratisation foster effective taxation? Evidence from Benin." Journal of Modern African Studies 53, no. 4 (November 4, 2015): 557–81. http://dx.doi.org/10.1017/s0022278x15000750.
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AbstractFiscal sociology has alleged the existence of a mutually reinforcing effect between the emergence of representative government and effective taxation. This paper looks at Benin, a low-income country that successfully democratised in the early 1990s. It finds that Benin appears to have reinforced its extractive capacities since democratisation. However, the effect of democratisation has been indirect, while the influence of the International Financial Institutions (IFI) and the size of the country's informal sector have played a more direct role. Nevertheless, the hypothesis that effective taxation is based on a quasi-consensual relationship between the state and the taxpayers finds some confirmation.
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Dreher, Axel, and Martin Gassebner. "Do IMF and World Bank Programs Induce Government Crises? An Empirical Analysis." International Organization 66, no. 2 (April 2012): 329–58. http://dx.doi.org/10.1017/s0020818312000094.
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AbstractWe examine whether and under what circumstances World Bank and International Monetary Fund (IMF) programs affect the likelihood of major government crises. We find that crises are, on average, more likely as a consequence of World Bank programs. We also find that governments face an increasing risk of entering a crisis when they remain under an IMF or World Bank arrangement once the economy's performance improves. The international financial institution's (IFI) scapegoat function thus seems to lose its value when the need for financial support is less urgent. While the probability of a crisis increases when a government turns to the IFIs, programs inherited by preceding governments do not affect the probability of a crisis. This is in line with two interpretations. First, the conclusion of IFI programs can signal the government's incompetence, and second, governments that inherit programs might be less likely to implement program conditions agreed to by their predecessors.
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Mykolenko, Olena, and Hanna Strokovych. "Institutional adaptation to abrupt changes during and following the financial crisis." Investment Management and Financial Innovations 15, no. 1 (February 21, 2018): 154–65. http://dx.doi.org/10.21511/imfi.15(1).2018.14.
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The aim of the study is to investigate substantial bases and mechanisms for institutional changes that facilitate the adjustment of an economic system to abrupt changes. To achieve this objective, comparative analysis is carried out in order to disclose different approaches to crisis management and resolution regimes following the financial imbalances in Denmark, Sweden, and the USA that represent three different models of institutional adaptation. Thus, the paper reflects on the multifaceted phenomenon of institutional change, evaluating the theoretical background, which is further adjusted to the concept of institutional adaptation. In turn, the concept of institutional adaptation is developed from crisis management and post-crisis financial policies’ perspective. Built on various resolution procedures, the main mechanisms behind institutional adaptation are highlighted: extension (extended authorities of traditional institutions that have been empowered with additional functions); limited creation (newly-created institutions with restricted opportunity to exercise their discretion); redeployment (utilized and redeployed traditional effective institutions in order to implement new resolution schemes); modified formation (newly-formed institutions that have been modified and adjusted); grafting (grafting the new appropriate elements onto statutory institutional frameworks); transfer (transfer of practices from other domains and markets), and rebuilding (rebuilding functional competences). It is proved that even though policy-makers draw on institutions and logic of actions originally established and developed before the need to respond to new circumstances, they adjust and redesign them to fit and produce a renewed action plan.
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Sharif, Haroon. "Structural Issues and Reforms in Financial (non-bank) Market in Pakistan." Pakistan Development Review 41, no. 4II (December 1, 2002): 915–28. http://dx.doi.org/10.30541/v41i4iipp.915-928.
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A large body of research now links financial sector development, including the depth of the banking system, liquidity in capital market, and financial liberalisation to long-run growth and poverty reduction. According to a recent World Bank report,1 “As the dust settles from the great financial crises of 1997-98, the potentially disastrous consequences of weak financial markets are apparent”. The report further states that the importance of getting financial policy making right has become one of the most critical development issues in this century. In the past, there have been two extreme approaches concerning financial market regulation. One clearly supports the central role of state in the financial markets, whereas, the other sees state intervention more of a problem than as the solution. Of these two rather diverging ideologies, the International Financial Institutions (IFIs) advocate the development of market institutions, more liberalisation and lesser role of state. Pakistan has been following IFI advice in this regard. However, after the East Asian Crisis, a strong point of view has emerged that believes that in developing countries, ruling out state’s role from financial markets is unrealistic. But, the state has to play a developmental role. According to Stiglitz (1991), “governments have played a central role—whether good or ill may be debated—in the development of most of those countries which today belong among the more developed”.
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Alhammadi, Salah, Simon Archer, and Mehmet Asutay. "Risk management and corporate governance failures in Islamic banks: a case study." Journal of Islamic Accounting and Business Research 11, no. 9 (September 2, 2020): 1921–39. http://dx.doi.org/10.1108/jiabr-03-2020-0064.
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Purpose The purpose of this paper is to show how the choice and ongoing evaluation of a firm’s business model, as a matter of strategic guidance, are key aspects of corporate governance (CG), with particular reference to risk management (RM) in Islamic banks. Design/methodology/approach This research uses a case study approach, with a single case, which was chosen as it fits very well the purpose of this research. The data collection was based largely on documentary evidence. Company data were collected from company annual reports, press releases and legitimate web sites. The ORBIS Bank Focus database was also used to produce a comparative financial analysis. Findings The study findings illustrate how an apparently successful business model may fail due to an inherent instability that could have been identified through the application of careful risk analysis (including stress testing) in the choice and ongoing evaluation of the business model, which robust CG and strategic guidance require. In particular, Arcapita’s problems illustrate the dangers to Islamic financial institutions (IFI) from business models that involve undue exposure to liquidity risk. Practical implications The issues raised in the paper are important in that Islamic banking and finance is an integral part of the global banking and finance industry. Investors and regulators are now requesting corporate management to provide improved service to shareholders and other stakeholders alike. IFI rely on the confidence of investors and market participants, just like conventional institutions and when this confidence erodes, it may prove difficult to regain. Social implications The global credit crisis of 2008 caused significant difficulties to firms, especially financial institutions, even with substantial government intervention in the economy, which raised some issues of CG and ethics. Originality/value This paper extends the knowledge of the potential effects of weaknesses in CG and RM, with specific reference to strategic guidance in the choice and ongoing evaluation of a firm’s business model, especially in relation to the Islamic banking sector. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements set out in the various Basel III documents.
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Atmeh, Muhannad Ahmed, and Bassam Maali. "An accounting perspective on the use of combined contracts and donations in Islamic financial transactions." Journal of Islamic Accounting and Business Research 8, no. 1 (February 13, 2017): 54–69. http://dx.doi.org/10.1108/jiabr-07-2014-0024.
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Purpose The purpose of this paper is to investigate the techniques used by Islamic financial institutions (IFIs) to shift conventional instruments to Shariah-compliant instruments. The paper additionally aims to explore the effect of these techniques on financial reporting. Design/methodology/approach The study recognized two techniques used by the IFI: the combination of contracts which compartmentalizes the economic transaction into a series of linked sub-transactions, and the inclusion of donation (Tabarru) in commercial contracts. The paper also reviews the accounting treatment according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and compares it to the concepts adopted by the traditional financial reporting framework concepts (especially substance over form concept). Findings With regard to the combination of contracts technique, the major accounting challenge is whether the substance over form concept is considered. Mixed results are found: in some products, the economic substance is presented in the financial reports, while in other cases, the legal form of the contract is reported. This ambiguity may hinder the faithful representation of financial statements. The Tabarru contract is used to justify the risk-shifting practices by Islamic banks. The accounting effects of such contracts may result in failure to recognize assets or liabilities in the financial reports, earnings management and incomplete financial information for the users of the financial reports. Originality/value This study is a response to the call raised by the consultative group established by the International Accounting Standards Board. It provides an additional insight into the accounting treatments for a combination of contracts and Tabarru contracts. It also contrasts the accounting treatments, as stipulated by the AAOIFI, with the conventional accounting frameworks.
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Wright, Christopher. "Global Banks, the Environment, and Human Rights: The Impact of the Equator Principles on Lending Policies and Practices." Global Environmental Politics 12, no. 1 (February 2012): 56–77. http://dx.doi.org/10.1162/glep_a_00097.
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The Equator Principles are a set of operational principles and standards adopted by more than 70 public and private financial institutions to manage environmental and social risks in project financing. This article assesses the impact of the voluntary framework on lending policies and practices, and the environmental and social accountability of financial institutions. It finds that the direct link between the Equator Principles and the International Finance Corporation (IFC), the World Bank Group's private sector financing division, enhances the legitimacy and potential impact of the framework. However, development of lending policies across financial institutions is greatly uneven, and the framework has not stopped lending to projects with significant environmental and social costs. Although the framework has improved relations between financial institutions and stakeholders, a lack of transparency undermines external accountability. The conclusion considers the scope for increased harmonization of environmental and social lending policies in international banking.
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Hope Quao, Kwami, Lawrence M. Lekhanya, and Nirmala Dorasamy. "An investigation of the financial monitoring policies for microfinance institutions in Ghana." Investment Management and Financial Innovations 14, no. 4 (December 20, 2017): 90–104. http://dx.doi.org/10.21511/imfi.14(4).2017.09.
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The need to regulate microfinance institutions (MFIs) was advocated and researched yet lacks purposeful in-depth exploring studies of the formulation process of financial monitoring policies, their implementation and accompanying challenges. Consequently, this study contributes by reviewing the specific financial policies for microfinance in Ghana and assesses factors mitigating effective implementation of such policies. It also introduces implementation theory into the MF research arena, thus shifting MF research focus. The study revealed that policies formulated for MFIs in Ghana and elsewhere are skewed and policy implementation, monitoring and supervision found to be less effective. The results further identified inadequate support structures and large unlicensed profit-oriented informal microfinance operations in Ghana as major obstacles to efficient implementation of microfinance policies. This paper therefore recommends the creation of a semi-autonomous institution, the National Microfinance Oversight Authority, to license, regulate and supervise the informal microfinance institutions in Ghana.
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Erin Olayinka, Adedayo, Uwalomwa Uwuigbe, Eriabie Sylvester, Olubukola Ranti Uwuigbe, and Omoike Osereme Amiolemen. "Does enterprise risk management impact accounting quality? Evidence from the Nigerian financial institutions." Investment Management and Financial Innovations 16, no. 4 (October 18, 2019): 16–27. http://dx.doi.org/10.21511/imfi.16(4).2019.02.
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This research empirically looked at Enterprise Risk Management impact on accounting quality of selected listed firms in the Nigerian financial sector. The study engaged the use of content analysis of the selected listed firms’ annual financial reports and corporate websites in determining the ERM disclosure index and its impact on accounting quality for a period of five years (pre-ERM period) (2007–2011) and another five years period (post-ERM period) (2013–2017). In attaining the proposed objectives, the study employed the panel Generalized Method of Moments estimator to test the hypotheses and find out the relationship between the variables. The study observed from the findings that there is no significant association between enterprise risk management and accounting quality during the pre-ERM period. This study adds to the body of knowledge in the area of corporate reporting, risk disclosure, risk management and accounting quality in emerging economies especially the Sub-Saharan African countries.
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Putera, Asrip, and Muh Yani Balaka. "Treatment strategies for bad loans to microfinancial institutions: evidence from Kendari, Indonesia." Investment Management and Financial Innovations 16, no. 1 (February 27, 2019): 144–53. http://dx.doi.org/10.21511/imfi.16(1).2019.11.
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The purpose of the research is to find the right strategic formula to resolve bad loans suitable to environment and characteristics of micro-financial institutions and their consumers. It applies qualitative approach by means of interactive method put forward by Milles and Huberman (2009) as analysis method. Data are obtained from indepth interview with superordinates, staff and consumers of microfinance institutions in Kendari city. A microcredit institution “Harum” needs several strategis to handle bad loans. It includes: institutional reinforcement (improvement in service procedure, increase in human resources’ skill, more branch offices, more new recuitments, the involvement of sub-district government, the use of information system), reinforcement of consumers’ capacity (tight selection process, counseling of business management, advisory service, and special relationship). The research results serve as solutions to microfinancial institutions in handling bad loans, from which development and sustainability can be assured. Consumers might make use of this information to develop their business. They also might serve as references for regional government in making the right policy for the development of micofinancial institutions and small business empowerment. This is the first study exploring formulation of strategy for microfinancial institutions in handling bad loans. The research explores internal and external aspects of microfinancial institution, with holistic view of the right policy in terms of institutions and consumers.
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Carrillo-Hidalgo, Isabel, and Juan Ignacio Pulido-Fernández. "Measuring the inclusiveness of international financing to tourism in Latin America and the Caribbean." Investment Management and Financial Innovations 15, no. 3 (July 5, 2018): 15–34. http://dx.doi.org/10.21511/imfi.15(3).2018.02.
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Globally, tourism has been identified as a means of poverty reduction and development, and as a means of encouragement of females, minorities and small businesses to better engage in the mainstream of economic life. This paper examines whether the international and governmental financial support, grated by international financial institutions, is effectively achieving these aims in Latin America and the Caribbean. A series of indices are established in the paper that assess the extent to which such funding includes non-corporate enterprise while also considering the volume and nature of such funding. It is concluded that the goals of inclusiveness are not being met.
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Hughes, Steve, and Nigel Haworth. "Decent Work and Poverty Reduction Strategies." Articles 66, no. 1 (June 28, 2011): 34–53. http://dx.doi.org/10.7202/1005104ar.
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This article examines how the International Labour Organization’s (ILO) Decent Work agenda integration into poverty reduction strategies has provided the wherewithal for closer cooperation with the International Monetary Fund and the World Bank. It begins by discussing multilateral approaches to poverty reduction and identifying criticisms of structural adjustment programmes and the policy prescriptions of the Washington Consensus as key prompts for closer cooperation with the ILO. The article examines the development of the ILO and identifies the role that successive Director Generals have played in repositioning it as a key player in multilateral approaches to poverty reduction. The complex nature of cooperation between the ILO and the International Financial Institutions (IFIs) is acknowledged and discussed. While the Washington Consensus has not been abandoned, analytical shifts within the IFIs, including greater acknowledgment of the role labour market institutions can make in sustainable growth and development, have prompted closer integration between employment and social policies and international macroeconomic policy strategies. At the heart of this engagement lies the ILO’s Decent Work Agenda and the demand for greater policy coherence among multilateral organizations in poverty reduction. The integration of Decent Work into IFI Poverty Reduction Strategy Papers (PRSPs) is identified as a key platform for these activities. The article describes the ILO strategy for integrating Decent Work into the PRSP process and examines the criticisms this strategy has attracted. In highlighting the importance of worker voice in the national delivery of poverty reduction strategies, the article concludes by promoting the need for representative bodies to have the necessary organization and skills to engage with and implement poverty reduction strategies. For Decent Work and poverty reduction to succeed, this need is of both a national and international concern. Such challenges loom large in future engagement between the ILO and the IFIs.
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Slav’yuk, Rostyslav, Lyudmyla Shkvarchuk, and Iryna Kondrat. "Financial market imbalance: reasons and peculiarities of occurrence in Ukraine." Investment Management and Financial Innovations 14, no. 1 (May 12, 2017): 227–35. http://dx.doi.org/10.21511/imfi.14(1-1).2017.09.
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Financial imbalance is the reason of a macroeconomic instability. This study aims at identifying the institutional causes of financial markets imbalance. The authors consider that financial intermediaries in Ukraine work in a speculative market segment carrying out high-risk transactions with the purpose of earning a huge profit. In fact, in Ukraine the role of these institutions in the investment process financing is insignificant. The authors show that soundness of banks along with the ease of access to loans and a low level of confidence in national banking system are the main reasons of instability in financial market in Ukraine. Due to scarcity of financial capacity and refusal to carry out transactions in a high-risk market segments, insurance companies are unable to entirely perform functions of risk redistribution. Competitiveness of Ukrainian financial market remains low with a limited financial services nomenclature and it may be considered to be attractive for potential foreign investors.
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Zainul Anwar, Aan, Edi Susilo, Fatchur Rohman, Purbayu Budi Santosa, and Edy Yusuf Agung Gunanto. "Integrated financing model in Islamic microfinance institutions for agriculture and fisheries sector." Investment Management and Financial Innovations 16, no. 4 (December 20, 2019): 303–14. http://dx.doi.org/10.21511/imfi.16(4).2019.26.
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The uniqueness of micro, small and medium enterprises (MSMEs) in the agriculture and fisheries sector has led to thoughts of innovation in the microfinance institutions (MFIs) that serve it. Service innovations in the agriculture and fisheries sector have been carried out in various countries to facilitate the development of this sector. This study aims to analyze the financing model of Islamic microfinance institutions (Islamic MFIs) based on the characteristics of the agriculture and fisheries sectors and the reconstruction of Salam contracts of Islamic financial institutions for farmers and fishermen. The research method used is qualitative descriptive analysis. The data were obtained through in-depth interviews with the agriculture and fisheries businesses in Central Java, Indonesia. The result showed that Salam contract constructed according to the characteristics of the fishing community to alleviate it from the shackles of moneylenders and wholesalers, including Islamic MFIs, farmers, and fishers as members of Islamic MFIs, buyers, Islamic banks and Islamic insurance. The output of this research is that farmers and fishermen can form a community to help one another with financial needs and are managed by Islamic MFIs that work in synergy with fisheries and agriculture companies, as well as an integrated Salam contract application system for Islamic MFIs.
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Agyemang-Mintah, Peter. "Remuneration Committee governance and firm performance in UK financial firms." Investment Management and Financial Innovations 13, no. 1 (April 8, 2016): 176–90. http://dx.doi.org/10.21511/imfi.13(1-1).2016.05.
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This paper investigates the association between the Remuneration Committee (RC) on firm performance. The research uses a data span of 63 financial institutions for a period of 12 years. Ordinary Least Square (OLS) and Random Effects (RE) regression estimations are used. The ascertained empirical results indicate that the establishment of remuneration committee by the board is positively correlated to its performance, as measured by its Return on Assets (ROA), and is also statistically significant on the Market Value (MV) of the firm. Subsequent tests conducted show that presence of an RC had a positive and statistically significant correlation during the pre/post global financial crisis on the ROA of the firm. The MV measure during the pre-crisis indicates a positive and statistically significant impact, but only positive during the post-crisis. The findings are robust across econometric models that control for different types of endogeneity. The outcome indicates that the establishment of an RC by the board assisted in achieving a positive impact on the profitability of UK financial institutions
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van Deventer, Marko. "African Generation Y students’ personal finance behavior and knowledge." Investment Management and Financial Innovations 17, no. 4 (November 26, 2020): 136–44. http://dx.doi.org/10.21511/imfi.17(4).2020.13.
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Personal financial management is important, given uncertainties in both financial and economic environment. However, published research on African Generation Y students’ personal finance behavior and knowledge is limited. This study aimed to evaluate African Generation Y students’ personal finance behavior in terms of their attitudes towards financial planning and whether this cohort believes that they have the skills to manage their finances successfully. In addition, this study sought to evaluate African Generation Y students’ knowledge regarding personal finance. A convenience sample of 500 African students across the campuses of two South African public higher education institutions situated in the Gauteng province was surveyed using structured, self-administered questionnaires. The t-test results indicate that the sample deems the process of planning personal finances and managing credit, insurance, investment, and estate, as important. Moreover, the students scored low in the broad personal finance knowledge areas of basic finance, saving, spending, and debt, suggesting that this cohort is financially illiterate. The results also indicated that the students think they have the financial skillset to manage their personal finances. A high Pearson’s correlation coefficient was noted between sampled participants’ personal finance behavior and their observed personal finance management skillset regarding the relationship between the constructs. However, an insignificant relationship was found between attitudes towards personal finance and financial knowledge and between financial knowledge and African Generation Y students’ apparent finance skills. Understanding African Generation Y students’ personal finance behavior and knowledge, universities and financial institutions can more effectively identify gaps and deficiencies in students’ personal finance endeavors.
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Poon, Jessie P. H., Yew Wah Chow, Michael Ewers, and Trina Hamilton. "Executives’ observance of zakat among Islamic financial institutions: evidence from Bahrain and Malaysia." Journal of Islamic Accounting and Business Research 12, no. 4 (May 28, 2021): 509–23. http://dx.doi.org/10.1108/jiabr-07-2020-0211.
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Purpose The purpose of this paper is to examine the influence of Shariah board members and managerial networking on zakat observance among executives of Islamic financial firms (IFFs) in Bahrain and Malaysia. Design/methodology/approach The methodology is based on surveys administered to 106 respondents and personal interviews conducted with individuals holding management positions in IFFs. Findings The paper finds that: networking among IFF executives in Bahrain positively influences their observance and perception of zakat in their firms; and higher representation of Shariah on the board of directors increases executives’ favorable perception and observance of zakat in Malaysia. Differences in findings may be explained by Bahrain’s global Shariah institutions where networking offers opportunities for socialization of zakat ethics. In Malaysia, on the other hand, Shariah directorship sets the pace and direction of zakat ethics. Originality/value The seminal work of DiMaggio and Powell (1991) on neo-institutional theory has drawn attention to executives’ agency in creating cognitive frameworks that help promote the development of firm standards and norms. However, application of the theory to Islamic finance is largely absent. This paper contributes to an empirical understanding of the theory by highlighting sources of IFFs’ social agency in the development of zakat norm and its observance, namely, managerial networking and Shariah directors as change agents.
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Buitrago R., Ricardo E., and María Inés Barbosa Camargo. "Home Country Institutions and Outward FDI: An Exploratory Analysis in Emerging Economies." Sustainability 12, no. 23 (November 30, 2020): 10010. http://dx.doi.org/10.3390/su122310010.
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Although the internationalization of economies is driven by specific industry conditions or business-specific differences, the institutions that exist as background conditions directly determine firms’ strategies and interactions in the international environment. This paper contributes to the discussion on the relationship between institutional quality and outward FDI (OFDI). We used 30 indicators in 48 emerging economies in the period 2007–2017; we collected the indicators from alternative secondary sources. After we applied Factor Analysis, six factors were retained. We named the components as follows: “Transparency of government” (F1), “Research, development and innovation, R&D+I” (F2), “Inequality” (F3), “Rules on inward FDI (IFDI)” (F4), “Education and training” (F5), and “Financial market” (F6). The panel data model outcomes suggest that Factor 2, Research, development and innovation, has a significant and positive effect on OFDI. Factor 6, the Financial market, has a significant and negative effect on OFDI. When we include lagged values of OFDI stocks the results also show that the government measures transparency positively and significantly affects OFDI stocks. These findings imply that the institutional environment creates two streams of OFDI: leverage and escapism.
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Kumaraswamy, Sumathi, Bora Aktan, and Zainab Hafedh Al Halwachi. "Why do financial services companies pay dividend? Evidence from Qatar Stock Exchange." Investment Management and Financial Innovations 14, no. 3 (December 1, 2017): 389–403. http://dx.doi.org/10.21511/imfi.14(3-2).2017.09.
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This study identifies the dividend policy determinants of banks and other financial institutions listed on Qatar Stock Exchange (QSE) for a period from 2009 to 2015 through studying the impact on eight factors on banks’ dividends per share. Three models were adopted to investigate the determinants of the dividend policy and the factors that affect a bank’s decision to pay out dividends. The findings indicate that the previous year’s dividends per share, earnings per share, cash flow per share, firm size and return on average equity are positively related to the current year’s dividends per share, as hypothesized. The study shows that the leverage position, bank’s life cycle and growth opportunities are negatively related to the dividend payment. The study also reveals that banks and financial institutions in Qatar do a bit of “earnings smoothing” when comparing the earnings figures with the cash flow.
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Naumenkova, Svitlana, Svitlana Mishchenko, and Dmytro Dorofeiev. "Digital financial inclusion: evidence from Ukraine." Investment Management and Financial Innovations 16, no. 3 (September 19, 2019): 194–205. http://dx.doi.org/10.21511/imfi.16(3).2019.18.
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The article examines the influence of the current stage of economy digitalization on the financial inclusion in Ukraine. The purpose is to assess the level of financial inclusion in the country, to determine the dominant influence of price and non-price barriers to access to financial services for the Ukrainian population when compared to other world countries and to define which part of the adult population is able to join the formal financial services system through the use of innovative channels and financial service systems. Based on the methodological approaches proposed by the World Bank and the G20 Financial Inclusion Indicators, the authors analyze the real traditional and digital access opportunities of the general public to financial services in Ukraine compared to other countries across the world. Particular emphasis is placed on overcoming existing non-price barriers that impede formal financial inclusion of the Ukrainian population. The research findings stress the need to adhere to the basic principles of digital financial inclusion in order to regulate activities of financial institutions and their agents in the digital provision of financial services, strengthen regulatory control over the use of innovative financial products and service systems, and protect the rights of consumers of financial services in Ukraine.
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Hsieh, Lu-Chen, and Ying-Shing Lin. "Inflows and outflows of mutual funds: a performance comparison of funds offered by traditional banks, insurance companies and mutual fund companies." Investment Management and Financial Innovations 15, no. 4 (December 5, 2018): 258–72. http://dx.doi.org/10.21511/imfi.15(4).2018.21.
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The transformations in internet technology and financial innovation have led to the prevalence of direct finance, causing indirect finance to contract and concerns among traditional banks and insurance channel operators to seek transformation to innovate traditional services with advanced technology applications. The research compares the sales revenue flows of traditional banks, insurance companies, and mutual fund institutions, using quantile regression methods with five mutual fund factors: Jensen’s indexes, expenses, risks, sizes, and turnover rates. The sample statistics from 2001 to 2016 were evident, showing the results that sales revenue flows of bank and insurance companies did not decrease when compared to institutional fund investors, but instead, grew substantially, owing to the significant relationship of better technological services and financial innovation by banks and insurance companies. The research contribution is to point out that financial industry should focus, review and strengthen its most competitive core services inside, which are less challenged by outside competitors. By adhering to financial innovation and internet technology, it is still possible for traditional banks and insurance channels to gain substantial market shares with concentration on their core competitive services.
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Aziz Saymeh, Abdul, and Marwan Mohammad Abu Orabi. "Effect of International Direct Investments on Jordan’s Economy." International Journal of Business and Management 14, no. 2 (January 25, 2019): 48. http://dx.doi.org/10.5539/ijbm.v14n2p48.
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The main objective of this research concerns the detailed information advocated by data to the latest developments in the volume of external investments in the Kingdom and their effects on Jordan’s economic growth. The study problem stems from the challenges facing the national economy in general and the role of none Jordanian investments and their effect on upgrading the national economic growth. In this study, researchers have used the descriptive analytical methods through the financial and economic reports and other relevant information available in the annual reports and publications issued by the financial institutions via measuring the effect of international direct investment(IDI) in boosting the national gross domestic product(GDP) in Jordan for 2005-2015 period. Research hypotheses were tested by using Pearson’s correlation formula (IDI) and (GDP). The correlation negative (inverse). Analysis results revealed that the correlation between these investments are not linked to its (GDP) alone, thus, researchers have attributed it to several other variables which might have greater impact on GDP and recommend that Jordan should develop long-term strategies for investments in several productive areas characterized by investment sustainability, rather than directing investments to short-term areas seeking rapid profits. Also taking advantage lessons of successful countries in attracting foreign investments such as Malaysian, Korean and Thai experiences and should encourage specialized studies to examine further variables that might have strong impacts on Jordan's economic growth.
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Yaya, Rizal, Ilham Maulana Saud, M. Kabir Hassan, and Mamunur Rashid. "Governance of profit and loss sharing financing in achieving socio-economic justice." Journal of Islamic Accounting and Business Research 12, no. 6 (August 6, 2021): 814–30. http://dx.doi.org/10.1108/jiabr-11-2017-0161.
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Purpose This study aims to explore the governance practices of profit and loss sharing (PLS) financing in connection to the socio-economic development objective of the Islamic financial institutions (IFIs). Design/methodology/approach The study context included IFIs from Yogyakarta, Indonesia. A two-stage research methodology was used. In the first stage, top ten IFIs – three Islamic commercial banks, three Islamic rural banks and four Islamic micro finance institutions – were considered for in-depth interviews. Formal interview protocol was followed to record and transcribe interviews. In the second stage, a questionnaire survey considered 26 IFIs. Unit of measurement was individuals working at the mid and top level from the selected organisations. Findings The governance process of providing and managing PLS financing involves several critical factors, such as the financing duration, instalment timing, contract approval and cost, basis of sharing, risk management, customer empowerment and Sharīʿah compliance. Contrary to the existing belief, the authors found that PLS financing is primarily available for shorter period of time (three years) and it is unavailable for start-ups. Also, newer IFIs rely less on PLS financing than the older IFIs. In addition to worrying about the higher risk of return, IFIs considered government regulation on PLS to be tighter in terms of provision and rescheduling. Research limitations/implications This study is limited to investigating IFIs in Yogyakarta, Indonesia. This limitation is covered by taking samples from three types of IFIs. Practical implications For IFI practitioners, these findings are expected to improve their confidence in undertaking more progressive efforts in adopting governance policies that contribute to greater socio-economic justice. Social implications If the governance good practices are implemented by all IFIs, a higher degree of social welfare and customer awareness can be achieved. Originality/value Across all types of IFIs, this study’s results confirm that PLS is less preferred for long-term and start-up financing. These findings should be the ingredients to push research on PLS further, as these findings grossly violate the theory. Fulfilling these gaps could strengthen the nexus between PLS and socio-economic justice.
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Qamruzzaman, Md. "Nexus between financial innovations, remittances and credit performance: Evidence from augmented ARDL and nonlinear ARDL." Investment Management and Financial Innovations 18, no. 3 (September 10, 2021): 295–311. http://dx.doi.org/10.21511/imfi.18(3).2021.25.
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The motivation for this study is to assess the impact of financial innovation and remittances on bank-based financial institutions’ credit performance in Bangladesh for the period 1981–2019. The study applies augmented ARDL (AARDL) and nonlinear ARDL (NARDL) to identify both long-run and short-run effects and directional causality by performing non-granger casualty tests. AARDL confirms the presence of a long-run association between financial innovation, remittance, trade openness, FDI, and credit performance, which is measured by non-performing loans. In the long run, financial innovation and FDI volatility expose a positive link with NPLs, but remittance inflows and trade openness establish a negative association. Asymmetry shocks in financial innovation reveal a positive relationship with credit performance. In contrast, the asymmetric shock of remittance and trade openness unveil a negative tie to credit performance, especially in the long run. Furthermore, directional causality provides evidence to support a feedback hypothesis explaining causality between financial innovation and credit performance, as well as remittance inflows and credit performance. These findings suggest that credit performance is guided by future development in remittances and financial innovation; thus, closer attention from policymakers and financial experts is persistent to capitalize or mitigate the impact of the financial system.
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Faisal, Shaha. "Orientation to finance (ORTOFIN) and its relationship with residential status." Investment Management and Financial Innovations 14, no. 3 (October 6, 2017): 74–81. http://dx.doi.org/10.21511/imfi.14(3).2017.07.
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The two of factors Orientation towards Finance (ORTOFIN) Scale tests the financial information and personal financial planning of the respondents. The Scale helps in identifying the personal financial management behavior of a general and non-specific nature. The present study was undertaken to test the relationship between status of residence and financial orientation using ORTOFIN Scale. Towards this the ORTOFIN scale was administered on 167 resident employed Indians and 62 expatriates working in Saudi Arabia. Since most of the expatriates work in unique situations that are often beset with risks, they have to face an uncertain future. This unique situation was hypothesized, would induce in them a different type of financial behavior, distinct from those who are settled and work in the home country. Results of the study, however, show that there is no relationship between the status of residence and financial orientation of the respondents. The results of the study are of great significance and of practical implication to those financial institutions with which expatriates are associated.
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Olugbenga, Sanya, and Polly Mashigo. "The impact of microfinance on microenterprises." Investment Management and Financial Innovations 14, no. 3 (October 11, 2017): 82–92. http://dx.doi.org/10.21511/imfi.14(3).2017.08.
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The provision of and access to financial services, particularly credit, can contribute greatly to the development of microenterprises in South Africa. Such provision has been an issue ignored by conventional banks or formal financial institutions. The problem associated with this ignorance includes high transaction and operation costs, lack of collateral, and the inability to obtain information about microenterprises resulting in difficulties to extend such credit. Microfinance therefore becomes an alternative to conventional banking and a mainstream and sustainable development activity for extending credit to microenterprises. However, the benefits of microfinance, which include, among others, the ability to provide the much-needed financial support for microenterprises, have not been fully harnessed in South Africa. The objective of this article is to evaluate the impact of microfinance on microenterprises in a typical South African township and to propose specialized financial mechanisms to support and improve the provision of credit to microenterprises. The article draws on the findings of a study undertaken in the Ga-Rankuwa township located in the Tshwane Metropolitan area in the Gauteng province of South Africa. It further draws on a wide range of extensive review of literature that documents the impact of microfinance on microenterprises. A case study approach is adopted and mixed method research paradigm (qualitative and quantitative) is used to gather information. Structured questionnaires and interviews were used to solicit information from the randomly selected microfinance institutions and microenterprises in the Ga-Rankuwa township.
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Woldie, Atsede, Bushige Mwangaza Laurence, and Brychan Thomas. "Challenges of finance accessibility by SMEs in the democratic republic of Congo: is gender a constraint?" Investment Management and Financial Innovations 15, no. 2 (April 27, 2018): 40–50. http://dx.doi.org/10.21511/imfi.15(2).2018.04.
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Small and medium enterprises (SMEs) play a significant role in income generation, job creation, poverty reduction and reducing income inequality of all countries, regardless of the level of development. Nevertheless, in developing countries, they are exposed to several challenges affecting their business operations and growth. Among others, access to external financing has been cited to be the most pressing challenge for SMEs in developing economies. The lack of accessibility has been indicated to result from the deficiencies observed from both financial institutions and SMEs. Further, it has been discovered that from the SMEs’ perspective, gender, among other entrepreneurial characteristics, has a role in accessing finance. This paper surveys a sample of 109 SMEs in the Democratic Republic of Congo not only to find what are the challenges faced in seeking finance, but also to investigate the extent to which gender impacts access to finance. The evidence gathered shows that finance is really constraining, there are more rejections than approvals of finance due to the lack of collateral, high interest rates and the inability of SMEs to develop attractive and bankable projects. With regards to gender, the findings were somehow assuring in the sense that when both women and men apply for external finance, they stand the same chances of accessing finance. Recommendations were established to all the actors. SMEs must put more effort into regulating their businesses in order to reduce their risks and build strong relationships with lenders. Financial institutions should not only reconsider the interest rates as they were perceived to be extremely high, but also train SMEs to be “more bankable”. Lastly, the Government should implement policies to support firms and render the business environment more appealing for both SMEs and financial institutions.
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Lament, Marzanna, and Blanka Jarolímová. "Foreign capital as a determinant of the non-financial reporting development in insurance companies of the Visegrad Group countries." Investment Management and Financial Innovations 18, no. 1 (February 18, 2021): 203–14. http://dx.doi.org/10.21511/imfi.18(1).2021.17.
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Insurance companies are institutions of public trust, and this affects their corporate culture, strategies and management systems. One of the image concerns is reporting on socially responsible actions in non-financial reports. The prime objective of the research presented in this paper is to analyze the dependence between the level of non-financial reporting in the insurance market and the share of foreign capital, measured based on the market size of foreign insurance companies compared to all insurance companies, and the share of foreign insurance companies in non-financial reporting. The study concerned insurance markets in the Czech Republic, Hungary, Poland and Slovakia, and the overall market of the Visegrad Group countries. The theoretical section provides a review of the literature and applicable legislation to indicate the causes of non-financial reporting by insurance companies. Next, the correlation was used to determine the relationship between the variables studied, the regression method was applied to determine the impact of the variables studied, in particular foreign capital, on the level of non-financial reporting. A model was constructed, and the results of its estimation were analyzed. Analysis of the data demonstrated that the greater the share of foreign capital, the higher the level of non-financial reporting. The study results indicate that the share of foreign insurance companies can become a determinant in the development of non-financial reporting.
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wa Muiu, Mueni. "African Countries’ Political Independence at Fifty: In Search of Democracy, Peace and Social Justice." African and Asian Studies 12, no. 4 (2013): 331–51. http://dx.doi.org/10.1163/15692108-12341271.
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Abstract What lessons can we draw from the past fifty years of political independence in African countries? Which mistakes can we avoid in the future? Can there be peace without social justice? Four mistakes must be avoided if democracy, peace and social justice are to be achieved in African countries. Drawing on lessons from Central, East, North, West and Southern Africa, I use Fundi wa Africa – a multidisciplinary approach based on a long term historical perspective to argue that individual nationhood (the first mistake) has not resulted in democracy and peace. Only Pan-Africanism (based on the needs and interests of Africans as they define them) will lead to democracy and peace. The second mistake is that leading international financial institutions (IFI) and some Africans assume that democracy has to be introduced to Africa. This assumption is based on the belief that Africans and their culture have nothing to contribute to their own development. As a result liberal democracy is promoted by these agencies as the only option available for African countries. The third mistake is the belief that a colonial state which was developed to fulfill the market and labor needs of colonial powers can lead to democracy and peace for Africans. The fourth mistake is African leaders’ and their supporters’ conviction that neither African intellectuals nor women have any place in African development and may only be given symbolic positions. Without economic independence, the political gains of the past fifty years will be lost. The founding fathers and mothers of Africa’s freedom fought and achieved political independence, but it is up to the next generation to strive for economic empowerment. Only then will African countries cease to be homes for bankrupt ideas as they are freed from conflict and hunger.
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Petrushenko, Yuriy, Liudmyla Kozarezenko, Aldona Glinska-Newes, Maryna Tokarenko, and Maryna But. "The opportunities of engaging FinTech companies into the system of cross-border money transfers in Ukraine." Investment Management and Financial Innovations 15, no. 4 (December 18, 2018): 332–44. http://dx.doi.org/10.21511/imfi.15(4).2018.27.
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Despite the increasing role of cross-border payments within the globalization processes and rapid growth of venture sector, an issue of its implementation remains to be a debatable point for many countries. The paper identifies disruptive challenges for financial institutions need to adapt. The research investigates the value and the investment flows structure as most obvious indicators of FinTech and describes types of payments relationships there. The paper considers relationships between enterprises, financial institutions and individuals, which are formed in digital payments. To understand the difference between regular cross-border money transfers and P2P cross-border money transfers with TransferWise, both mechanisms were researched and the benefits underlined. For Ukraine, the improvement of existing cross-border payments system with FinTech is a crucial challenge. That is why it is important to focus on providing knowledge for people, supporting start-ups in the sector and learning the best implementation practices. A great example of cross-border payments of FinTech in Ukraine is TransferWise. The difference between regular cross-border money transfers and peer-to-peer (P2P) money transfers appears in its benefits, such as lower and more expectable transfer fee, mid-market exchange rate, less transaction period. By transforming existing cost structures and mitigating market imperfections, they provide innovative services that meet the users’ needs for speed, trust, low cost, usability, security and transparency. The results show high potential of FinTech for cross-border payment processing.
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Jawaid, Syed Tehseen, Shujaat Abbas, and Shaikh Muhammad Saleem. "Democracy and international financial integration in Pakistan." Indian Growth and Development Review 10, no. 1 (April 10, 2017): 16–31. http://dx.doi.org/10.1108/igdr-07-2016-0031.
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Purpose The purpose of the study is to investigate the relationship between international financial integration (IFI) index and democracy (DEM) in Pakistan by using long-time series data from 1975 to 2013. Design/methodology/approach The IFI index is constructed by principal component analysis. IFI consists of foreign direct investment (FDI), remittances (REM) and external debt (ED), whereas the Polity IV index is used for DEM. Johansen and the autoregressive distributed lag method for cointegration methods are used to find a long run relationship. Dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS) and canonical regression (CR) have been used to find the nature of the relationship. Rolling window analysis has been done to find the year wise coefficients. Findings DOLS, FMOLS, canonical regression CR and cointegration results suggest a significant negative long-run relationship between IFI and DEM in Pakistan. Rolling windows analysis highlights that DEM has improved IFI in Pakistan from 2008 to 2013. Originality/value This study constructs an index for financial integration using principle component analysis on capital inflows, i.e. FDI, REM, ED, to explore the impact of DEM on IFI in Pakistan from 1975 to 2013. This study investigates for the first time ever the relationship between IFI index and DEM in Pakistan.
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ELFakir, Adil, and Mohamed Tkiouat. "A multiagent game theoretical approach to adverse selection in corporate financing." Investment Management and Financial Innovations 13, no. 2 (July 14, 2016): 292–99. http://dx.doi.org/10.21511/imfi.13(2-2).2016.04.
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In this research the authors tried to solve the adverse selection problem in the Mudaraba contracts with respect to the projects privately known prospects. The authors introduced a model of two contracts characterized by an adverse selection index for each contract. They have managed to find that a case of market breakdown can occur because the efficient agent might mimic the inefficient agent. The authors, then, managed to develop a ‘Mimicking Likelihood Index’ whereby one can infer whether a type of an agent has a tendency to mimic the other type. In the same context, the authors developed a “Relative Adverse Selection” index to measure which type of agents has more tendencies to select a specific type of contracts. These findings should help Islamic financial institutions in their agent selection process and hedge its risky Mudaraba contracts
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Okoloise, Chairman. "“Humanizing” investments in the extractive industries in Africa through the IFC’s sustainability policies." Journal of Sustainable Development Law and Policy (The) 11, no. 1 (November 10, 2020): 106–37. http://dx.doi.org/10.4314/jsdlp.v11i1.6.
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International financial institutions face enormous challenges in Emerging Markets and Developing Economies (EMDEs). They finance infrastructure projects, manage vast investment portfolios, offer advisory services, and contribute to economic development in EMDEs. In the process, they areexposed to huge risks and face reputational damage if they act recklessly or have little or no regard for their projects’ adverse impacts on thirdparties. In the context of natural resource exploitation in Africa, the weak governance of environmental and social risks often results in devastating consequences for communities proximate to investment projects. Promises of infrastructure and social services, job opportunities and economic boom have only often delivered land grabs, forced displacement, cultural infringements, environmental pollution, conflicts, health disasters, misery and sometimes deaths. As calls for greater corporate scrutiny increase, investment project facilitators in the extractive industries like the International Finance Corporation (IFC) must respond appropriately. To preserve its reputation and long-term market access, the IFC needs to apply a higher degree of due diligence and sustainable business conduct that proactively treat risks and limit its exposure. With the rising number of complaints against IFC policy compliance, including projects tainted by scandals and the debarment of companies from accessing international finance, this article demonstrates that merely promoting sustainable investment policies on paper is inadequate. Using a human rights-centred approach to development project financing, the article critically assesses the extent to which the implementation of the IFC’s sustainability framework can practicably protect resource-rich communities, safeguard human rights and ensure sustainable development outcomes in Africa.
Keywords: Extractive Industries, Human rights, Project Financing, IFC, Compliance, Sustainable Development.
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Myskiv, Galyna, Tetyana Andreykiv, and Viktoriya Rudevska. "Forecasting of the state of the credit market in Ukraine." Investment Management and Financial Innovations 13, no. 4 (December 29, 2016): 235–41. http://dx.doi.org/10.21511/imfi.13(4-1).2016.10.
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The article highlights the forecasting of development of the credit market in Ukraine on the basis of regression analysis and based on a number of macroeconomic factors. It provides a matrix of coefficients for pair correlations for the calculation of the volume of loans given by banks and non-bank financial institutions, foreign economic agents and inter-economic actors. It gives partial regression models for determining the volume of loans according to the market’s segments. It carries out the forecasting of the credit market and the volumes of loans given by its segments. Keywords: credit market of Ukraine, forecasting, regression analysis, pair correlation. JEL Classification: G21, G23, Е51
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Heiderich Lizardo da Silva, Wanderson, Michele Nascimento Jucá, Anderson Luís Saber Campos, and Eli Hadad Júnior. "Influence of collateral and age on corporate capital structure." Investment Management and Financial Innovations 16, no. 4 (December 3, 2019): 123–32. http://dx.doi.org/10.21511/imfi.16(4).2019.11.
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Being financed by third-party capital requires the companies to put up collateral or assets in guarantee, consisting of real estate, inventories, and accounts receivable that in turn depend on specific life cycles, among other aspects. The main object of this study is to analyze whether corporate debt is related to age and collateral. To do so, a sample of 194 public and private Brazilian companies was studied between 2010 and 2017. The findings indicate that more mature businesses have lower debt levels. In terms of the collateral variable and interactions between collateral and age, a negative relation was noted with financial leverage, contrary to what was expected. This fact indicates a possible lack of quality in collateral over time. Furthermore, it is noted that there is no directly proportional relationship between progression in age and collateral. The contribution of the study consists of analyzing the relationships between collateral and age in terms of the debt levels of public and private Brazilian businesses. The distinctions between these groups may throw light on organizations in the emerging countries in terms of how to handle financing decisions with financial and capital market institutions.
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Binda, Jacek. "Cryptocurrencies – problems of the high-risk instrument definition." Investment Management and Financial Innovations 17, no. 1 (March 27, 2020): 227–41. http://dx.doi.org/10.21511/imfi.17(1).2020.20.
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Money is a widely accepted commodity, which enables us to determine the economic value of purchased goods and services and make payments. The dynamic development of technology and social expectations has expanded the spectrum of available types of payment instruments, including e-money and cryptocurrencies. Among dematerialized means of payment, cryptocurrencies began to play an important role due to their independence from central financial institutions and a highly effective form of saving money. The paper aims to present legal authorization, referring to cryptocurrencies, in countries of the European Union and prove that bitcoin is a high-riskу financial instrument. The methodology of the study was based on the review of available legal acts and literature (regarding the nature and function of money) and Value at Risk (VaR) model on the example of risk assessment of cryptocurrencies with respect to investing in the selected currencies. The outcomes showed several discrepancies in the definition of cryptocurrencies. They indicated that bitcoin, as one of the best-known cryptocurrencies, does not fulfill the functions of money formulated in economic theory (in relation to e-money). Besides, cryptocurrencies have been shown to be high-risky instruments.
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Elsharkawy, Mohamed, Audrey S. Paterson, and Mohamed Sherif. "Now you see me: diversity, CEO education, and bank performance in the UK." Investment Management and Financial Innovations 15, no. 1 (March 16, 2018): 277–91. http://dx.doi.org/10.21511/imfi.15(1).2018.23.
Full textAbstract:
This paper investigates the impact of board diversity and CEO educational background on bank performance. Based on a sample of 54 UK publicly listed banks over the period 2005–2015, we examine the relationship of both static and dynamic modelling frameworks, which controls for individual specific effects and potential sources of endogeneity. The study reports a positive but insignificant relationship between CEO education and bank performance, and a positive significant association between gender diversity and bank performance. It further denotes a negative and significant impact of nationality diversity on bank performance. Our findings provide empirical support for the significance of the association between board diversity and firm performance. Our study also provides support for theories concerned with how corporate governance differs in financial institutions.