scholarly journals Solvency effects of taxation: A comparison of Hungarian banks and insurance companies

2017 ◽  
Vol 67 (1) ◽  
pp. 63-75
Author(s):  
Borbála Szüle
Keyword(s):  
Panel Data ◽  
Empirical Model ◽  
Financial Intermediation ◽  
Empirical Relation ◽  
Economic Effects ◽  
Insurance Companies ◽  
Financial Intermediaries ◽  
Empirical Results ◽  
Asset Growth ◽  
Two Sectors

Recently, there has been a growing interest in the solvency of financial intermediaries. Bank and insurer insolvency cases generated numerous adverse economic effects and also promoted academic efforts to design solvency-related taxation methods. The focus of this paper is on corporate taxation and its empirical relation to solvency in the Hungarian financial intermediation sector. Based on the previous literature, a complex empirical model of the interactions between capital formation, asset growth and solvency risk is presented, and panel data results are compared for banks and insurance companies. A comparison with international empirical results is also possible, although it may only be of limited relevance due to some differences in solvency measurement. The paper also aims to highlight the potential differences between banking and insurance. As far as solvency effects are concerned, the empirical results do not reveal significant differences in these two sectors; however, other results point to the heterogeneity of the Hungarian financial intermediation sector.

scholarly journals The effectiveness of capital management strategies used by the investment funds in Poland

2014 ◽  
Vol 15 (2) ◽  
pp. 119-129
Author(s):  
Paweł Trippner
Keyword(s):  
Financial Market ◽  
Financial Intermediation ◽  
Management Strategies ◽  
Financial System ◽  
The State ◽  
Financial Intermediaries ◽  
Investment Strategies ◽  
Capital Management ◽  
Investment Funds ◽  
Location Policy

Abstract Collective investors play an extremely important role in the financial system of the state and in the economy. They operate in the financial market as institutions that enable households and businesses to convert savings into investments. Investment funds are the most conventional institutions which are dealing with financial intermediation. The main purpose of the submitted paper is to characterise the essence of investment funds operation in the role as financial intermediaries, to present the investment strategies and to characterise the methodology for measuring the effectiveness of capital management entrusted by the clients. The author has formulated a research hypothesis, according to which, the strategies of capital location policy used by the investment funds have an impact on the level of their performance, while funds holding higher risk portfolios perform better compared to the funds using passive investment strategies

scholarly journals Determinants of the Capital Structure of Companies Listed on the Stock Exchanges of Argentina, Brazil and Chile: An Empirical Analysis of the Period from 2007 to 2016

2020 ◽  
Vol 12 (6) ◽  
pp. 18
Author(s):  
Marcelo Rabelo Henrique ◽  
Sandro Braz Silva ◽  
Antônio Saporito ◽  
Sérgio Roberto da Silva
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Order Theory ◽  
Future Research ◽  
Stock Exchanges ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Speed Of Adjustment ◽  
Asset Growth ◽  
The Capital Structure

The present investigation refers to the determinants of the capital structure, using the technique of multiple regression through Panel Data of open capital companies in the stock exchanges of Argentina, Brazil and Chile, in order to know the behavior of determinants of the capital structure in relation to Trade-Off Theory (TOT) and Pecking Order Theory (POT). The POT offers the existence of a hierarchy in the use of sources of resources, while the TOT considers the existence of a target capital structure that would be pursued by the company. Sixteen accounting variables were used, in which five are dependent (related to indebtedness) and eleven are independent variables (explaining the determinants of the capital structure). It is observed that, with the use of the Panel Data, the determinants that seem to influence in a more accentuated way the levels of debt of the companies are: current liquidity, tangibility, return to shareholders, return of assets, sales growth, asset growth, market-to-book and business risk measured by the volatility of benefits. Suggestions for future research include the use of Panel Data to analyze other factors that may influence indebtedness, mainly taxes and dividends, as well as a deeper analysis of factors that may influence the speed of adjustment towards the supposed objective level.

Moneylending in Myth and Practice in Twentieth-Century Mexico

2018 ◽  
Vol 34 (2) ◽  
pp. 143-164
Author(s):  
Nicole Mottier
Keyword(s):  
Twentieth Century ◽  
Financial Intermediation ◽  
Financial Intermediaries

This article demonstrates that ejidatarios sometimes actively sought loans from moneylenders alongside other lenders, such as the Banco Ejidal, as one strategy for managing the uncertainties that shaped their lives. It asserts that moneylenders proved to be very important financial intermediaries for rural borrowers. By explicating how and why they continued existing alongside formal financial intermediaries such as the Banco Ejidal, this article offers a more nuanced way of understanding financial intermediation. Este artículo demuestra que en ciertas ocasiones los ejidatarios buscaron activamente los servicios de prestamistas–así como de otras entidades de crédito, por ejemplo, el Banco Ejidal–como estrategia para manejar la incertidumbre que caracterizaba sus vidas. El artículo reafirma que los prestamistas resultaron ser intermediarios financieros de gran importancia para los prestatarios rurales. Al explicar cómo y por qué continuaron existiendo estos prestamistas al lado de intermediarios financieros formales como el Banco Ejidal, este artículo contribuye a un entendimiento más matizado sobre la intermediación financiera.

scholarly journals Determinants of the Solvency of Insurance Companies in Palestine

2019 ◽  
Vol 10 (6) ◽  
pp. 188
Author(s):  
Yousef Abdel Latif Abdel Jawad ◽  
Issam Ayyash
Keyword(s):  
Quantitative Analysis ◽  
Panel Data ◽  
Fixed Effects ◽  
Financial Statements ◽  
Insurance Companies ◽  
Insignificant Effect ◽  
Analysis Methods ◽  
Negative Effect ◽  
The Relationship ◽  
Positive Effect

The study aimed to investigate the factors that affect the solvency of the insurance companies in Palestine and to highlight the nature and strength of the relationship between liquidity, investment, leverage, claims and the solvency of the insurance companies in Palestine.To achieve the objectives of the study, the descriptive and quantitative analysis methods were used in the study. Based on the data of the financial statements of seven insurance companies (out of 9 companies) and by using regression of fixed effects of panel data for 2010-2017, the study found that the claims have a positive effect on the financial solvency and leverage has a negative effect on the solvency of insurance companies in Palestine, while investment and liquidity have an insignificant effect on financial solvency.

Shari'ah-Based Financial Intermediation

2020 ◽  
pp. 834-853
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Crises ◽  
Financial Intermediation ◽  
Economic Effects ◽  
Islamic Finance ◽  
The Core ◽  
Banking Business ◽  
Institutional Finance ◽  
Economic Risks

Financial intermediation is the core of the banking business, as its role is to mediate between the owners of surplus funds and those in need of finance, sharing the generated profit with the funds' owners. However, financial intermediation does involve some economic risks in terms of concentration of debt in financial institutions and the possibility of the inability of financed clients to repay their debts. When this happens, financial crises are inevitable, as it occurred in 2008. Islamic finance does not differ in this regard from its traditional counterparts, because the concentration of debts also holds on the concept of Islamic institutional finance, and the possibility of collective default is possible as well. The study treats the issue of financial intermediation and its risks from Maqasidi aspect using home finance as a point of comparison between conventional home finance with Islamic home finance in terms of their economic effects. The study eventually proposes a model for home financing that is free of these cautions.

Technological Revolution in Financial Intermediation

2021 ◽  
pp. 65-83
Author(s):  
Galina Sergeevna Panova ◽  
Irina Vladimirovna Larionova ◽  
Istvan Lengyel
Keyword(s):  
Financial Markets ◽  
Business Models ◽  
Financial Intermediation ◽  
New Technologies ◽  
Financial Intermediaries ◽  
Theoretical Understanding ◽  
Technological Revolution ◽  
Functional Changes ◽  
Disruptive Technologies ◽  
Radical Reduction

The chapter presents current issues in innovative modernization of financial intermediation. Development of financial innovation in recent years has led to significant structural and functional changes in the system of financial intermediation. New technologies open broad prospects allowing the radical reduction of the costs of information transmission and processing, while exacerbating competition and stimulate the emergence of new financial intermediaries. This chapter analyzes the debate on the theoretical understanding and analysis of financial intermediation, the disruptive technologies influence the economy with focus on organizational changes in financial markets, the use of digital currencies, exploration of blockchain technologies applications, etc. The chapter discusses how technologies have changed the market and the perception of customers as they foster entrepreneurial creativity and disrupt existing financial markets through an introduction of innovative business models of modern credit institutions.

Determinants of United Kingdom General Insurance Company Performance

2004 ◽  
Vol 10 (5) ◽  
pp. 1079-1110 ◽  
Author(s):  
Y. Shiu
Keyword(s):  
United Kingdom ◽  
Panel Data ◽  
Performance Measures ◽  
Panel Data Analysis ◽  
Ordinary Least Squares ◽  
Insurance Companies ◽  
Company Performance ◽  
Insurance Company ◽  
Data Set ◽  
General Insurance

ABSTRACTDynamic financial analysis has become one of the important tools that actuaries use to model the underwriting and investment operations of insurance companies. The first step in carrying out the analysis is to investigate the most important factors affecting company performance. This paper identifies the determinants of the performance of United Kingdom general insurance companies using a panel data set consisting of economic data and Financial Services Authority/Department of Trade and Industry returns over the period 1986 to 1999. Three performance measures are used to capture different aspects of insurance operations. These measures are related to a number of economic and firm specific variables, chosen on the basis of relevant theory and literature. An ordinary least squares regression model and two panel data models are estimated for each of three performance measures. This paper also addresses several important econometric problems that are usually ignored in applied work in the context of panel data analysis. Based on the empirical results, this study finds that liquidity, unexpected inflation, interest rate level and underwriting profits are statistically significant determinants of the performance of U.K. general insurers.

scholarly journals Financial Depth and Efficiency, and Economic Growth Nexus in Saudi Arabia and Oman

2018 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Abdullah Saeed ◽  
Shayem Saleh
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Panel Data ◽  
Causal Relation ◽  
Policy Implications ◽  
Financial Deepening ◽  
Empirical Results ◽  
Financial Depth ◽  
Detrimental Impact

AbstractThis paper aims to examine the financial depth and efficiency and economic growth nexus in the context of Saudi Arabia and Oman. In particular, this paper addresses on how financial depth and efficiency relate to economic growth and the causal relation between financial depth and efficiency and the economic growth in Saudi Arabia and Oman. Methodological wise, this study employs a panel data of Saudi Arabia and Oman over the period of 1990 - 2015 and uses the determination of line of best to analyze the causal relations. The empirical results show that financial deepening have desirable effects on the economic growth in Oman, while increasing financial depth and efficiency has detrimental impact to economic growth of Saudi Arabia. Based on these empirical facts, we conclude that the financial deepening in Saudi Arabia is not an economic prioritized strategy, but financial deepening is an economic prioritized strategy in Oman. Two main policy implications are reached.

scholarly journals Theory of Financial Intermediation: A Portfolio Approach

1978 ◽  
Vol 3 (2) ◽  
pp. 133-138
Author(s):  
Ramesh Gupta
Keyword(s):  
Conceptual Framework ◽  
Financial Institutions ◽  
Financial Intermediation ◽  
Balance Sheet ◽  
Portfolio Theory ◽  
Preference Function ◽  
Function Approach ◽  
Financial Intermediaries ◽  
Portfolio Approach

Repid growth of financial institutions in recent years has resulted in a need to provide a conceptual framework for explaining their portfolio behaviour. By and large, literature on the theory of financial intermediation has concentrated on either the asset side or the liability side of the balance sheet. In this study, an attempt is made to explain the behaviour of financial intermediaries by explicitly considering the dependence between securities bought and securities sold in terms of the portfolio theory using a preference function approach. The model presented in this article will provide a framework for further research.

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