scholarly journals Observing Enforcement: Evidence from Banking

2021 ◽  
Vol 2021 (049) ◽  
pp. 1-104
Author(s):  
Anya Kleymenova ◽  
◽  
Rimmy E. Tomy ◽  
Keyword(s):  
Financial Institutions ◽  
Regime Change ◽  
Bank Failure ◽  
Public Disclosure ◽  
The Public ◽  
Capital Ratios ◽  
Asset Quality

This paper finds that the disclosure of supervisory actions is associated with changes in regulators' enforcement behavior. Using a novel sample of enforcement decisions and orders (EDOs) and the setting of the 1989 Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), which required the public disclosure of EDOs, we find that U.S. bank regulators issue more EDOs, intervene sooner, and rely more on publicly observable signals after the disclosure regime change. The content of EDOs also changes, with documents becoming more complex and boilerplate. Our results are stronger in counties with higher news circulation, indicating that disclosure plays an incremental role in regulators' changing behavior. We evaluate the main potentially confounding changes around FIRREA, including the S&L crisis and competition from thrifts, and find robust results. We also study changes in bank outcomes following the regime change and find that uninsured deposits decline at EDO banks, especially for banks with EDOs covered in the news. Finally, we observe that bank failure accelerates despite improvements in capital ratios and asset quality.

Real Earnings Management before and after Reporting SOX 404 Material Weaknesses

2015 ◽  
Vol 30 (1) ◽  
pp. 119-141 ◽  
Author(s):  
Tuukka Järvinen ◽  
Emma-Riikka Myllymäki
Keyword(s):  
Earnings Management ◽  
Internal Control ◽  
Internal Controls ◽  
Real Earnings Management ◽  
Public Disclosure ◽  
High Quality ◽  
The Public ◽  
Material Weaknesses ◽  
Internal Control System ◽  
Before And After

SYNOPSIS The purpose of this study is to investigate whether SOX Section 404 material weaknesses manifest in real earnings management behavior. The empirical findings indicate that, compared to companies with effective internal controls, companies with existing material weaknesses in their internal controls engage in more manipulation of real activities (particularly inventory overproduction). This implies that the weak commitment by management to provide effective internal control system and high-quality financial information relates to a tendency to use real earnings management methods. Moreover, we find evidence suggesting that companies employ real earnings management (overproduction and reduction of discretionary expenses) after disclosing previous year's material weaknesses. We conjecture that the public disclosure of material weaknesses induces management to strive to mitigate the expected negative reactions of stakeholders to the disclosure by engaging in real earnings management, which is not easily detected or constrained by outsiders. Overall, this study suggests that material weaknesses in internal controls signal an environment where management is more inclined to employ real earnings management.

scholarly journals LIFE-CYCLE HYPOTHESIS OF HYBRID SUKUK

JURISDICTIE ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 137
Author(s):  
Luthvia Moonda
Keyword(s):  
Economic Growth ◽  
Life Cycle ◽  
Financial Institutions ◽  
Financial Services ◽  
Net Present Value ◽  
Vital Role ◽  
Muslim World ◽  
Present Value ◽  
The Public ◽  
Life Cycle Hypothesis

The development of financial system recently has been contributing to the economic growth of the nation. Its vital role helps many financial institutions to advance their financial services, particularly in investment systems such as Sukuk. As seen in recent years, the involvement of Sukuk in many industries ranging from sovereigns to corporates for both Muslim and non-Muslim world companies. Although its popularity increases, it seems to be widely accepted that the insufficient structures of Sukuk become a big challenge to serve the public needs to be in compliance with Shari’ah principles. In an attempt to fulfil many financial companies in issuing Sukuk and the needs of the Muslim world, this study aims to provide the new structure of Sukuk. The study proposes a design of securitization by combining two contracts of Sukuk into one Sukuk structure. The constructed idea will use a model of life cycle hypothesis to support the Sukuk issuing companies in maintaining their incomes. It also explains the cycle cash flow and asset movement as well as the calculation of Net Present Value (NPV) of the project.

scholarly journals Fiduciary Agreement Implementation in Car Credit Agreement on Financing Institutions of Mandiri Finance of Cirebon Based on Act No. 42 of 199 About Fiduciary

Jurnal Akta ◽  
2018 ◽  
Vol 5 (3) ◽  
pp. 655
Author(s):  
Ardiansyah Alrawi ◽  
Gunarto Gunarto
Keyword(s):  
Financial Institutions ◽  
Legal Protection ◽  
The Public ◽  
Legal Development ◽  
Freedom Of Contract ◽  
Legal Effect ◽  
The Moment ◽  
Credit Agreement ◽  
The City

The emergence of various institutions today's economy helped spur the economy of the community. But unfortunately the growth of the economic institutions are not supported by an adequate legal development. The presence of various financial institutions helped bring a major role in economic development of society, especially the poor. These financial institutions emerged as a form of providing funds or capital goods for the public to purchase goods on payment in installments or periodically by consumers. Construction consumer finance based on an agreement with the principle of freedom of contract as legal bases for both parties. In practice financing undertaken by financial institutions poured in the form of a credit agreement. In each of providing credit to their customers finance institutions always face a risk, therefore the customer's business situation and developments to be followed continuously starts the moment the credit is given to the loan. As for giving legal protection to the parties in the process of providing collateral (guarantee), then one of them is with the enactment of Law Fiduciary. Implementation of lending followed by a fiduciary assurance processes at financial institutions in the city of Cirebon most important is the legal effect if the Borrower defaults which are expected to creditors (financial institutions) can be easily exercised fiduciary object. Constraints faced in a fiduciary guarantee is as follows: a. Any cost of making a deed by the Borrower felt heavy, incomplete b. Any requirements of the Borrower to elaborate on the type, brand and quality of the fiduciary object, c. The office registration still limited fiduciary, fiduciary registration e. The office could not provide information on everything about the guarantee with the issuance.Keywords: Financing Institution, Credit Agreements, Fiduciary.

scholarly journals BİST’DE İŞLEM GÖREN KÂĞIT VE KÂĞIT ÜRÜNLERİ BASIM VE YAYIN İŞLETMELERİNİN TOPSİS, PROMETHEE VE COPRAS YÖNTEMLERİYLE FİNANSAL PERFORMANSLARININ BELİRLENMESİ

2018 ◽  
Vol 6 (3) ◽  
Author(s):  
Fatma AKYÜZ ◽  
Tolga YEŞİL ◽  
İsmail KARA ◽  
Gürsel ERSOY
Keyword(s):  
Decision Making ◽  
Financial Statements ◽  
Assessment Methods ◽  
Production Costs ◽  
Financial Ratios ◽  
Preference Ranking ◽  
Multi Criteria Decision Making ◽  
Public Disclosure ◽  
The Public ◽  
Period Performance

Paper and Paper Products in the printing and publishing sector, production costs have increased due to the recent dependence on imports. At this point, Paper and Paper Products Printing and Publishing sector has been preferred and the leading companies in the sector have been tried to be determined by multi-criteria decision making methods. In this study, the financial performances of the paper and paper products printing and publishing sector traded in Borsa Istanbul between the years of 2012-2017, which is one of the multi criteria decision making methods, are the most important decision making methods, PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluation and COPRAS (Complex Proportional Assessment) methods. The research sample consisted of 14 companies listed in the BIST. Firstly, the financial ratios used in multi-criteria decision making methods were explained and then the application steps of TOPSİS, PROMETHEE and COPRAS methods were included. During the calculation of financial ratios, the financial statements of the related companies between the years 2012-2017 were used in the light of the data obtained from the Public Disclosure Platform. As a result of the research, the 6-period performance of the companies have rewieved, between the years 2012-2017 was evaluated with 10 financial ratios and the results were compared.

scholarly journals PENYELESAIAN UTANG IMPOR, JU’ALAH DAN SERTIFIKAT BANK INDONESIA SYARIAH (SBIS) PERSPEKTIF FATWA DSN-MUI

2018 ◽  
Vol 2 (2) ◽  
pp. 217-225
Author(s):  
Khozainul Ulum
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Financial Institution ◽  
Letter Of Credit ◽  
The Public ◽  
Islamic Financial Institutions ◽  
Monetary Control ◽  
Debt Repayment ◽  
Level Of Risk

Sharia financial Institution is one of the economic supporters of Indonesia. It is evidenced by the number of Islamic financial institutions that have sprung up this year, both sharia bank and non-bank sharia financial institution. It accommodates the aspiration and need of the society. The public is given the widest opportunity to establish a bank based on sharia principles, including convert from commercial banks whose business activities are based on conventional patterns into sharia patterns. The more sharia financial institutions that emerge, the more products offered by Islamic financial institutions to customers with the level of risk that can be overcome. The writing aims to answer the formulation of problem of settlement of import debts, contract of ju’a>lah and Sharia Certificate of Bank Indonesia (SBIS) in perspective of DSN-MUI fatwa. The result of research shows that in the DSN-MUI fatwa, it is explained that the settlement of imported debt or we know as letter of credit (L/C) may use the kafa>lah contract by taking a fee. It is also explained that one of the forms of kafa>lah contract is kafa>lah bi al-ma>l which is the application of kafa>lah contract which guarantees the payment of goods or debt repayment. This guarantee may be provided by the sharia bank to its customers in return for a fee. For the settlement of import debt there are several contracts that can be used, namely the contract of h}iwa>lah bi al-ujrah, waka>lah bi al-ujrah, and kafa>lah bi al-ujrah The Sharia Certificate of Bank Indonesia which used to be wadi>’ah with Wadi>’ah Certificate of Bank Indonesia which is now changed with Sharia Certificate of Bank Indonesia uses ju’a>lah contract. In this contract, Bank Indonesia pays the repayment upon maturity of SBIS with the relevant sharia banking record having performed and achieving the objectives expected by Bank Indonesia. If the sharia banking concerned is not able to achieve the desired objectives or stipulated by Bank Indonesia in terms of monetary control based on sharia principles, the relevant sharia banking will not receive any compensation from Bank Indonesia.

ANALISIS TINGKAT KESEHATAN KOPERASI PADA KOPERASI SYARIAH BAITUL QIRADH SURYA MADINAH BANDA ACEH TAHUN BUKU 2009-2010

2014 ◽  
Vol 2 (1) ◽  
Author(s):  
Aliamin
Keyword(s):  
Small And Medium Enterprises ◽  
Health Assessment ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Microfinance Institutions ◽  
Descriptive Research ◽  
Capital Ratios ◽  
Capital Financing ◽  
Asset Quality ◽  
Medium Enterprises

             The health assessment of Microfinance Institutions (MFIs) is a cooperative incorporated descriptive research study that aims to get the description of health BQ Surya Madinah (Islamic MFIs). The period for this study was raised in 2009 and 2010. The guidelines for use of cooperative health assessment, formulated by the Ministry of Cooperatives and Small and Medium Enterprises Republic of Indonesia, which poured through the Minister's decision No. 35.3/Per/M.KUKM/X/2007 for cooperative health assessment sharia. In a co-operative health assessment consists of eight aspects of sharia that aspects of capital valuation, asset quality, management, efficiency, liquidity, and growth kemadirian, cooperative identity, sharia compliance. However, in this study only four financial ratios studied the aspects of capital, asset quality, liquidity, and the independence and growth.             The results calculation (score) of each component aspect ratio shows the ratio of the components are not all aspects can be expressed well, only three ratios that can yield the best assessment of the capital adequacy ratio of the given conclusion score "HEALTHY" financial ratios for the funds received were conclusions scores "LIQUID" profitability and capital ratios are given conclusion score "HIGH".To obtain better achievements in the future, it requires a proper measures to raise awareness of all members of the cooperative to jointly participate in the implementation of cooperative activities, either in the form of capital, financing and deposits. Key words: health assessment, Islamic MFIs, and BQ Surya Madinah 

Customer Perception and Awareness of Green Banking Practices

2022 ◽  
pp. 20-41
Author(s):  
Niranjan Devkota ◽  
Rekha Rai ◽  
Ghanashyam Khanal ◽  
Ihtsham Ul Haq Padda ◽  
Udaya Raj Paudel ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Environmental Sustainability ◽  
Logit Model ◽  
Environmentally Friendly ◽  
Primary Data ◽  
Kathmandu Valley ◽  
Customer Perception ◽  
The Public ◽  
Binary Logit Model ◽  
Baking Industry

The governments, business firms, policymakers, advocacy groups, and even the public recently are hotly debating on the issues of environmentally friendly practices. In this context, being a part of 'going green', green banking, which plays an important role in environmental sustainability, has been a buzzword in the global baking industry. This study identifies how the customers perceive the emerging concept of green banking initiatives of banks and also analyzes the factors that influence such practices of the customers. Using a structured questionnaire, the primary data were collected from 403 commercial banks of Kathmandu valley, Nepal. The awareness index was prepared, and the binary logit model was applied for the econometric analysis. This study observed that the customers are positive towards the environmentally friendly practices of banks and ready to adopt the green banking practices. The research implies that in order to promote environmental sustainability, banks and financial institutions should be able to educate the customers about green banking practices and their benefits.

Whistle-Blowing

2016 ◽  
Keyword(s):  
Financial Institutions ◽  
Public Interest ◽  
Original Form ◽  
Whistle Blowing ◽  
The Public ◽  
Pension Schemes ◽  
Unfair Dismissal ◽  
Key Concepts ◽  
Statutory Protection ◽  
Employment Legislation

The principal focus of Chapter 19 is on the statutory protection from victimization of employees and other ‘workers’ who disclose information in the public interest under the provisions introduced into employment legislation by the Public Interest Disclosure Act 1998. It describes the purpose and scheme of the provisions (in their original form and as amended in 2013), and explains key concepts such as ‘protected disclosure’, ‘qualifying disclosure’ and ‘worker’. It then outlines the procedures and remedies applicable in the event of unfair dismissal or subjection to detriment for making a protected disclosure. How the legislation works in practice is illustrated by reference to cases decided in employment tribunals, the Employment Appeal Tribunal, and the higher courts. The chapter also takes a brief look at whistle-blowing duties imposed on auditors and actuaries of financial institutions and persons involved in administering pension schemes following the BCCI and Maxwell affairs in the 1990s.

How does public disclosure of performance information affect politicians’ attitudes towards effort allocation? Evidence from a survey experiment

2020 ◽  
Author(s):  
Sebastian Desmidt ◽  
Kenn Meyfroodt
Keyword(s):  
Self Determination Theory ◽  
Self Determination ◽  
Public Disclosure ◽  
Survey Experiment ◽  
Effective Strategy ◽  
Performance Information ◽  
The Public ◽  
Effort Allocation ◽  
Media Attention ◽  
Negative Valence

Abstract Does relative performance information (PI) still impact politicians’ attitudes when the potential for external blame or credit is limited? And, if not, is the active disclosure of PI about government activities with a low propensity for media attention an effective strategy for increasing the effect of PI? Despite the tendency to progressively disclose PI, empirical evidence on the effectiveness of publicly disclosing PI is almost non-existent. Hence, a survey embedded experiment was developed, building on self-determination theory and blame-avoidance theory, to assess how the provision of PI with a low propensity to attract media attention affects politicians’ attitudes towards resource allocation and whether this effect is altered by the public disclosure of PI. Data from 795 Belgian (Flemish) local councilors indicates that PI with a low propensity for media attention does impact politicians’ attitudes towards effort allocation but that public disclosure of PI mitigates the effect size in the case of negative-valence PI. Thus, the results draw attention to the unintended—and potentially dysfunctional—effects of the disclosure of PI.

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