The global Covid-19 pandemic has required unprecedented government action at an unprecedented pace. It is vital that policymakers act to slow the spread of the virus, protect people's livelihoods and ensure the economic recovery delivers both prosperity and justice for the long term. This discussion paper has been commissioned to provide rapid analysis and expertise to the UK government with this goal in mind and will be followed by further analysis and recommendations from IPPR.
This article examines how addressing climate-related risks and supporting mitigation and adaptation policies fit into central bank mandates. We conduct an analysis of mandates and objectives using the IMF's Central Bank Legislation Database and compare these to sustainability-related policies central banks have adopted in practice. Out of 135 central banks, only 12% have explicit sustainability mandates, while 40% are mandated to support the government's policy priorities, which mostly include sustainability goals. However, given that climate risks can directly affect central banks' traditional core responsibilities, all institutions ought to incorporate climate-related physical and transition risks into their policy frameworks to safeguard macro-financial stability.
This paper analyses the impact of policy initiatives co-ordinated by Asian national governments on firms' composition of external finance. Using a unique firm-level database of eight Asian countries- Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand over the period of 1996-2012 and a difference-in-differences approach, the results show a significant response of the debt composition to the policy change. We find that firms increased their uptake of long-term debt, while decreased their short-term debt. We also document that less risky and more profitable firms are more significantly affected by the policy change than riskier and less profitable firms. Finally, we show that the improved access to external finance after the policy initiative helped firms to raise their investment spending.
The objective of this paper is to explain the influence of Murabahah finance on the relationship between farm credit and agricultural output.This is because, in most of the advanced countries, agricultural output is a backbone of their economy in terms of food supply, industrial, provision of income, employment opportunities.The importance of agricultural output to the socioeconomic well being, specifically the third world countries are paramount.However, it has been shown that there is a decrease in agricultural output in African economies and Nigeria is inclusive.The decrease of agricultural output in Nigeria is resulted to increase in poverty rate, unemployment, fall in individual and government income, collapsed of the industries etc.Some researchers are of the view that poor credit facilities are part of the main problem hindering the growth of the Nigerian agricultural sector.The current paper proposed a research model which, if validated in an empirical source will assist the advancement of agriculture in Nigeria.Hence, the study seeks to propose the use of Partial Least Square Structural Equation Modelling PLS in relation to analysis of the data. This paper may directly or indirectly contribute to the policy makers of Nigerian agricultural cooperative and rural development banks and agricultural environment.It provides a sufficient approach for Murabahah finance as a potential moderator of the Model.
IMFI (Islamic Micro Finance Institutions) is a microfinance institution that can provide ease of access, especially for people who have SME ( Small and Medium Enterprises). The purpose of this study is to determine how the concept of cooperation network between the government, private sectors and universities in strengthening SME capital through IMFI. The method used in the study is a qualitative method using a discourse analysis data analysis technique. The result of this study indicates that the cooperation between the government, private sectors, and universities in strengthening the capital of SME through IMFI can be implemented using a linear collaborative of partnership model, while capitals that can be utilized such as RLF of government, CSR funds from the private sector (companies), program linkage with Islamic Banks, training and preparation of skilled workforces from universities to support the development of IMFI and SME.
Responses to a questionnaire survey received from PFI financiers, and interviews with senior managers, show that as the credit crunch took hold banks became more risk averse. The prediction of Toms et al. that collusion between the state and the private sector might cease in the face of austerity does not appear to have occurred. Rather the state has intervened to benefit the private sector. We argue that two successive UK Governments intervened in the market to protect the role of private finance in PFIs but whether such interventions represent value for taxpayers' money is a question for future research.
Austerity policies coupled with rising inequality in Europe have resulted in a prolonged stagnation and a vicious circle of chronically low demand, slow down in investment and productivity, and economic, social and political instability. In order to end this vicious cycle, Europe needs directed public investment policies accompanied by industrial policy, higher equality, stimulated demand, and regulation of finance and corporate governance. Our research presents strong empirical evidence that expansionary fiscal policy is sustainable when wage and public investment policies are combined with progressive tax policy; the impact is stronger when these policies are implemented in a coordinated fashion across Europe due to strong positive spill over effects on demand. A strong investment performance also requires a process of de-financialization of the economy and a new approach to corporate governance.
This study is based on three Irish operational toll road public private partnership (PPP) case studies, including interviews with 38 key stakeholders. Our findings show that the Irish Government's treatment of risk and its transfer to the private partner in PPPs are changing over time. Regulatory changes, which have led to increased finance costs, coupled with a severe global economic crisis, have exacerbated the difficulties in funding PPPs. The goalposts in Irish PPPs appear to be changing in favour of the private partner at the expense of the taxpayers, who are the losers in the PPP game. The Government are also suggesting that they may potentially step in, if projects experienced financial difficulty and the special purpose vehicle (SPV) may require specific guarantees in order to participate in future PPP projects. Pricing of demand risk also differs from the Government's rhetoric that it is being priced realistically. In practice, we find that it is priced aggressively by the SPV in order to win PPP contracts. The paper discusses the possible implications of these findings for value for money (VFM) and, ultimately, taxpayers.
Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric information among market participants via credit ratings. The credit ratings determined by the credit rating agencies reflect the opinion of whether a country can fulfil the liability or its credit reliability at a particular time. Therefore, credit ratings are a very valuable tool, especially for investors. In addition, the issue that credit rating agencies are generally criticised is that they are unsuccessful in times of financial crisis. Credit rating methodologies of credit rating agencies have been subject to intense criticism, especially after the 2007/08 Global Financial Crisis. Some of the criticised issues are that credit rating agencies' methodologies are not transparent; they are unable to make ratings on time, and they make incorrect ratings. In order to create a more reliable credit rating methodology, the credit rating industry and the ratings determined by rating agencies need to be critically examined and further investigated in this area. For this reason, in this study credit rating model has been developed for countries. Supervisory and regulatory variables, political indicators and macroeconomic factors were used as independent variables for the sovereign credit rating model. As a result of the study, the new sovereign credit rating calculates exactly the same credit rating with Fitch Rating Agency for developed countries, but there are 1 or 2 points differences for developing countries. In order to better understand the reason for these differences, credit rating agencies need to make their methodologies more transparent and disclose them to the public.
We provide new evidence on how deposit funding affects bank lending. For identification, we exploit the 2011 reform of the investment income tax in Italy that induced households to substitute bank bonds with deposits. We find that banks with larger increases in deposits expand the supply of credit lines and long-term credit to low-risk firms. Additional evidence indicates that these results are consistent with theories emphasizing the demandable nature of the deposit contract rather than theories stressing the stability of deposit funding due to government guarantees. In this regard, we show that banks under stress face large runs on retail deposits, but not on retail bonds.
ABSTRACT Mei Lisa Rizki Amalia. 4116500154. The Influence of Capital Structure, Managerial Ownership, Return On Investment and Return On Equity Against Company Value in Hotel, Restaurant and Tourism Sub Sectors Listed on the Indonesia Stock Exchange in 2016-2019. The contribution of tourism in Indonesia can be said to have a very large development and to provide a very broad contribution, not only economically but also socially, politically, culturally, and regionally. So that with the development of the tourism sub-sector, the hotel and restaurant sub-sector will also be affected. The purpose of this study was to determine the effect of capital structure, managerial ownership, return on investment and return on equity on firm value. This study uses secondary data in the form of annual reports of hotel, restaurant and tourism sub-sectors listed on the Indonesia Stock Exchange in 2016-2019. The sampling method uses purposive sampling method. The number of companies that met the sampling criteria were 10 companies, so the total sample was 40 companies. Data analysis techniques used are descriptive statistical analysis, the classic assumption test (normality test, multicollinearity test, autocorrelation test and heteroscedasticity test), multiple linear regression analysis and the coefficient of determination test. The results of this study indicate that 1) Capital structure influences firm value. 2) Managerial ownership does not affect the value of the company. 3) Return on investment does not affect the value of the company. 4) Return on equity has no effect on firm value. 5) Capital structure, managerial ownership, return on investment and return on equity simultaneously affect the value of the company. Keywords: Capital Structure, Managerial Ownership, Return On Investment, Return On Equity and Firm Value.
The role of Rural Banks is very large in developing Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. MSMEs are large absorbers of labor and play an important role in economic growth in Indonesia. Government through Financial Services Authority (OJK) Regulation No. 4/POJK.03/2015 obliges Rural Banks to implement Governance. Corporate Governance is an internal control system that aims to manage its significant risks to meet its long-term business objectives. This study aims to see how the implementation of Good Corporate Governance (GCG) in the Management of Rural Banks in Sidoarjo Regency, using a qualitative approach. This research uses observation methods in the form of in-depth interviews, participant observation, and a list of questions that informants need to fill in. The results showed that the observed People's Credit Banks had implemented Governance following the Financial Services Authority (OJK) Regulation, seen from 5 pillars: Transparency, Accountability, Responsibility, Independence, and Fairness. The applied GCG also includes planning, management, and operational control of Rural Banks. Fulfillment of the required reports does not prevent fraud from occurring. With the implementation of GCG for Rural Banks, there is still a need for synergy between the Compliance Department and Internal Audit. As for the advice for the OJK as a policymaker, it is better to simplify the requested reports without reducing the risk of fraud so that Rural Banks can carry out their company operations optimally while still implementing good Governance, with the hope that Rural Banks can maintain Going Concern.
State-Owned Enterprises (SOEs) which were previously managed entirely by the Government, have shifted the paradigm to professional management. This research is a quantitative study that examines the influence of Good Corporate Governance (GCG), Intellectual Capital, and Corporate Social Responsibility (CSR) on Financial Performance and Company Value. The study population is a state-owned company listed on the Indonesian Stock Exchange that is not financial, so that 16 companies are obtained. The results showed that: (1) GCG has a positive effect on firm value; (2) Intellectual Capital has a positive effect on company value; (3) CSR has a negative effect on company value; (4) financial performance has a positive effect on firm value; (5) GCG has a positive effect on financial performance; (6) Intellectual Capital has a positive effect on financial performance; (7) CSR has a positive effect on financial performance; (8) Financial performance mediates the effect of GCG on firm value; (9) Financial performance mediates the effect of Intellectual Capital on firm value; and (10) Financial performance mediates the effect of CSR on firm value. This novel research lies in the GCG measurement indicators that use 5 pillars, namely: Transparency, Accountability, Responsibility, Independence, and Fairness (TARIF). The theoretical implications of this research relate to signaling theory that companies that implement GCG, pay attention to intellectual capital, and CSR are captured as a positive signal to investors. In addition, theoretical implications also relate to stakeholder theory that companies that apply GCG, pay attention to intellectual capital, and CSR make managers more focused on managing the company, without being hindered by social cases, human rights, demonstrations from the public, thus making stakeholders protected.
As a tourism city, Surabaya is very capable of providing diverse tourist experiences. One of the best tourist destinations that suit all ages is museum tours. Through a visit to the museum, visitors not only get entertainment but also have a very high educational value. But unfortunately, currently museum tourism has not become a priority for the city government and has not become the main tourist destination for tourists. Many factors make this happen, one of which is the lack of information to the public about the existence of the museum. For that we need a marketing strategy that is able to attract people to visit. The right marketing strategy is to take advantage of internet technology. Through a digital marketing strategy, the existence and introduction of Surabaya Museum Tourism will be maximized. The main objective of this research is to be more active in introducing the existence and benefits of visiting museums in the city of Surabaya to the wider community, using digital marketing strategies. This research uses a qualitative approach with a descriptive analytic method. Data collection techniques in this research are field studies and literature studies. The data used is primary data which is data directly obtained from the field. The data is obtained through observations and interviews with the public and museum officers or managers as well as other informants who are needed to obtain a more complete picture of museum marketing management. Meanwhile, secondary data is data obtained in the form of a digital history museum on the internet. The output of this research is the existence of a digital marketing strategy in the form of a website which contains a collection of information about museums in Surabaya
Good corporate governance is required for BPR (rural banks) to manage significant risks in order to meet their long-term goal of being a going concern. The present study was a qualitative research with the stakeholders as informants. Data were collected by such observation methods as staged interviews, observation, and participation. Results showed that the BPR have been implementing good corporate governance in terms of transparency, accountability, responsibility, independence, and fairness. Implementation of good corporate governance was indeed beneficial for BPR; however, it was only for administrative fulfillment, even capable of interfering with the main operational duties of the company. To prevent fraud, a teamwork of the internal audit and compliance division remained being required. When the auditors did not undertake an audit and were unable to provide recommendations with an impact on the operating division, fraud might remain occurring. Conversely, when the internal audit had a good capability, but the Compliance Division did not undertake the audit recommendations, fraud could also occur. With this study, we hope that the Government, in this case the Financial Services Authority (OJK), can simplify the reporting required for BPR in relation to corporate governance to make it a going concern since they are different from conventional banks.
