Aging, Interest Rates, and Financial Flows

2005 ◽  
Author(s):  
Tuomas Saarenheimo
Keyword(s):  
Interest Rates ◽  
Financial Flows

scholarly journals Illicit financial flows and foreign direct investment in developing countries

2016 ◽  
Vol 6 (4) ◽  
pp. 442-447
Author(s):  
Emmanuel Innocents Edoun ◽  
Alexandre Essome Dipita ◽  
Dikgang Motsepe
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Tax Evasion ◽  
Local Governments ◽  
Direct Investment ◽  
Good Governance ◽  
Transfer Pricing ◽  
Developed Countries ◽  
Financial Flows ◽  
Illicit Financial Flows

Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs) cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI) rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the “Appropriability Theory” to explain the rationale for FDI in Africa.

Income Contingency and the Repayment of Student Loans

1994 ◽  
Author(s):  
J. C.R. Rowley
Keyword(s):  
Interest Rates ◽  
Financial Support ◽  
Student Loans ◽  
Income Growth ◽  
Practical Implementation ◽  
Postsecondary Students ◽  
Tax System ◽  
Financial Flows ◽  
Salient Features ◽  
Current Systems

The current systems of financial support to postsecondary students in Canada and elsewhere are clearly inadequate. Their evident deficiencies have revived interest in the possibility of income-contingent loans and in the use of the tax system to deal with repayments. Some simulative experiments are used here to explore the feasibility of income contingency and to explore the sensitivity of financial flows to various assumptions about interest rates, income growth, age-earning profiles, default, and take-up rates for loans. Evidence from these experiments points to some salient features in the design of new schemes or the support of postsecondary students, and it also permits the identification of relevant issues which might significantly affect the practical implementation of any scheme involving income contingence as a basis for repayments.

scholarly journals Financial stability instruments for the banking systems of Ukraine

2020 ◽  
Vol 59 ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Financial Stability ◽  
Banking System ◽  
Classification Criterion ◽  
Financial Flows ◽  
Organizational Influences ◽  
Policy Goals ◽  
Credit Cycle ◽  
The Impact

The article focuses on the issues of systematization, analysis and development of the classification of instruments for ensuring the financial stability of the banking system, which is a determining factor in the formation of the necessary influences to ensure the financial stability of the banking system. For the selection and application of the toolkit that most precisely meets the goals, current conditions and priorities of ensuring the financial stability of the banking system, its classification was supplemented by the introduction of new classification features. In particular, in order to take into account the importance of maintaining the continuous circulation of financial flows in the banking system, their consistency and synchrony, we developed a classification criterion ‘for influencing the inflow and outflow of financial flows’, which makes it possible to use the appropriate instrument to complete such specific tasks as ensuring continuity, streamlining the cost of resources, smoothing the impact on interest rates of liquidity changes. Based on the presence of different levels of regulatory influences on ensuring the financial stability of the banking system – strategic and operational – the classification criteria ‘to influence the achievement of monetary policy operational goals’ and ‘to influence the achievement of strategic monetary policy goals’ were introduced. The classification criterion ‘impact on systemic/state-owned banks’ is justified by the significance of systemically important banks for ensuring the financial stability of the banking system, since a significant concentration of assets and capital in such banks requires the use of special tools aimed at preventing systemic risks. Taking into account the need for balancing the flows of credits provided by the banking system, the impact of risks on banking activities, the classification features of instruments for ensuring the financial stability of the banking system ‘by impact on the credit cycle’, ‘by key risks’, ‘by organizational elements’ were proposed. Allocation of the classification features of the instruments for ensuring the financial stability of the banking system will contribute to the achievement of targeting of regulatory and organizational influences and compliance with the criteria of rationality and adequacy when choosing specific instruments. This will create the basis for the selection and application of such a combination of instruments that most closely meets the goals, current conditions and priorities for ensuring the financial stability of the banking system.

scholarly journals Financial stability: problems of inter-level and cross-sectoral equilibrium

Equilibrium ◽  
2019 ◽  
Vol 14 (1) ◽  
pp. 53-79
Author(s):  
Galina Gospodarchuk ◽  
Ekaterina Suchkova
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Institutional Environment ◽  
Value Added ◽  
Qualitative Assessment ◽  
Financial Reports ◽  
Financial Flows ◽  
Regulatory Instruments ◽  
The Usa ◽  
The Creation

Research background: As part of the creation of an effective mechanism for managing financial stability, the tasks of providing an inter-level and cross-sectoral financial equilibrium remain unresolved. So far, clear and unambiguous criteria for financial stability have not been formulated, with which monetary and prudential policies could be related, as well as measures to minimize systemic and individual risks. The problem of creating a system of indicators comes to the fore, allowing the creation of new effective instruments for regulation of financial flows that contribute to the prevention of financial crises. Purpose of the article: The paper proposes a system of indicators of financial stability, which allows for solving the tasks of inter-level and cross-sectoral equilibrium in the selection of regulatory tools for monetary and prudential policy. Methods: We have used real interest rates as a measure of financial stability at the macro level. The real rates have been calculated from time series with nominal interest rate and inflation in the credit market (divided into loans to financial and non-financial organizations and individuals), and in the bond market (divided into corporate, municipal, and federal bonds). The analysis of the market and institutional financial stability of the USA, Russia, Japan, Switzerland, Australia over the period 1984–2014 was done. Then, comprehensive investigation on the financial stability in the Russian Federation in 2014–2017 was conducted. The results have been compared against financial stability of individual banks, which was measured using profit to risk ratio. The latter has been calculated from bank’s financial reports using our method, which had been developed earlier. Findings & Value added: We have developed criteria for qualitative assessment of financial stability and the risk map, which helps to identify the level of accumulated imbalances in the market and institutional environment, as well as in the levels and sectors of the economy. The criteria for selecting monetary and prudential regulatory instruments have been formulated depending on the amount of accumulated risks. The criteria for forming a portfolio of regulatory instruments with regard to their rigidity are proposed.

scholarly journals ANALISIS KINERJA KEUANGAN MENGGUNAKAN RASIO KEUANGAN PADA PT GOWA MAKASSAR TOURISM DEVELOPMENT TBK

2019 ◽  
Vol 8 (3) ◽  
Author(s):  
Dirwan Dirwan ◽  
Gusmi Haerani
Keyword(s):  
Interest Rates ◽  
Good Condition ◽  
Tourism Development ◽  
Poor Performance ◽  
Financial Flows ◽  
Financial Ratio ◽  
Financial Condition ◽  
Financial Ratio Analysis ◽  
Time Deposit ◽  
One Year

The formulation of the probelem is research is how performance PT Gowa Makassar Tourism Development Tbk measured based on the analysis of financial flows using financial statements using financial ratio analysis method. The method of analysis used is financial ratios which include: liquidity, solvency, profitability and activity. The results show the performance of PT Gowa Makassar Tourism Development Tbk which was on the liquidity ratio in 2014 to 2016 was in good condition, where the Current Ratio (CR) of the company in 2014 to 2016 was more than 100% which means PT GMTD Tbk able to pay all obligation smoothly with current assets available. Overall quick ratio (QR) had a poor performance due to the increase in the value of current debt. The condition Solvency ratio of PT Gowa Makassar Tourism Development Tbk was good enorghin 2014 until 2016, which Debt To Assets Ratio (DAR) company in 2014 until 2016 more then 100%. This percentage indicates that the financial condition was quite good because their debt as financing for large assets compared with own capital. Performance in debt to equity ratio (DER) Companies was not good because DER greater than 90% indicates that the sources of the companis assets financing comes more from debt than its own capital. Profitability ratio of PT Gowa Makassar Tourism Development Tbk in 2014 until 2016 was good, where the result of the profitabily ratio is higher then one year time deposit interest rates. The activity ratio of PT Gowa Makassar Tourism Development Tbk in 2014 to 2016 was good, where Total Assets Turn Over (TATO) is more then 1 (one), that means the company, was productive in generating sales.

scholarly journals A macro-financial theory of corporate financing and forecast modelling of market movements

2021 ◽  
Author(s):  
◽  
David Sutton
Keyword(s):  
Corporate Finance ◽  
Interest Rates ◽  
Prediction Models ◽  
Theoretical Perspective ◽  
Theoretical Development ◽  
Future Market ◽  
Corporate Financing ◽  
Financial Flows ◽  
Financing Decisions ◽  
Dependent Variables

<p>This thesis identifies a gap in existing theories of corporate finance. This gap is an implication of a Keynesian-Minskian analysis of markets and market-based economies. From a founding theoretical perspective rooted in the view that markets are not reliably efficient the case is developed that past price trend extrapolation is an important factor in corporate financing decisions. At a macro-financial level, companies repurchase equity over periods of strong market rises, while increasing debt at the same time. During periods of sustained, substantial market decline debt is retired and large new equity issues occur. This change in corporate financing is implicitly expensive as relatively low prices are realised for the new stock issued at these times. These factors suggest that conventional theories of corporate financing decisions that rely on corporate rationality and optimisation do not provide a compelling fit with observations in the period 1980-2012. Moreover, inference to Minsky’s (1986) argument that companies are compelled through market declines to shore up their balance sheets provides a better fit with the evidence. These arguments form the basis for the development of the ‘extrapolative expectations’ theory of corporate finance. The second major development in this thesis draws on the theoretical development outlined above to create market movement description and prediction models. These models operate on data drawn from the US Standard & Poors 500 index over the period 1980-2012. Two primary models are developed using binomial logistic regressions. The dichotomous dependent variables are drawn as quarters of market rise (1) or no rise (0), and market falls (1) or no fall (0), respectively for the ‘buy’ model and the ‘sell’ model. Variables tested and those found to add to an explanation of the dependent variables include: corporate debt flows, corporate equity flows, corporate dividend flows, interest rates, market volumes, and historical market levels. Each variable is tested for up to ten lags (two-and-a-half years). Collectively, the variables add to our understanding of those factors influencing (or at the least, signalling) market levels, enabling quarter ahead market forecasts to be made with greater accuracy than arises from an assumption of a random walk. This conclusion crystallises the view that company macro-financial flows and prices are an important cause or signal of future market direction.</p>

scholarly journals Assessment of the Efficiency of Implementing the Regional Program of Preferential Lending to Small and Medium-Sized Businesses (Based on Rostov Region)

2020 ◽  
pp. 202-211
Author(s):  
Olga Chernova ◽  
Irina Davydenko
Keyword(s):  
Interest Rates ◽  
Small Businesses ◽  
Financial Support ◽  
Business Development ◽  
Bank Loans ◽  
Financial Resources ◽  
Financial Flows ◽  
Financial Factors ◽  
Rostov Region ◽  
Social And Economic Development

Financial factors are crucial for the development of small and medium-sized businesses. The article dwells on the issue of the effectiveness of regional financial support for small and medium-sized businesses implemented in the form of preferential lending, and it also discusses “failures” that generate problems in the implementation of this support. The research object is Rostov region. The authors prove that it is difficult for small and medium-sized businesses to obtain a loan on normal terms due to instability of financial flows. As a result of the analysis, the authors reveal that the volume of lending to small businesses in Rostov region is steadily declining. The decrease in demand for loans from small businesses is connected with high interest rates on bank loans. The article emphasizes that concessional lending can solve the problem through the encouragement of business development in priority areas for the region. The correlation analysis is carried out on the basis of comparing the main indicators of the regional subprogram “Development of small and medium-sized businesses in Rostov region” and indicators of social and economic development of the region. According to the results of the analysis, there is an increase in the number of economic entities in the section of small and medium-sized businesses due to unemployment reduction in the region. However, this quantitative dependence in Rostov region is functionally unstable and probabilistic. At the same time, inefficient organizational and methodological activities of the state in supporting small and medium-sized enterprises have lead to the emergence of “failures” that generate the problem not of the lack of financial resources but of their low demand.

scholarly journals Finding the derivative price using the Vasicek model with multidimensional stochastic volatility

2020 ◽  
Vol 17 (4) ◽  
pp. 19-30
Author(s):  
Ivan Burtnyak ◽  
Anna Malytska
Keyword(s):  
Spectral Analysis ◽  
Stock Market ◽  
Interest Rates ◽  
Stochastic Volatility ◽  
Wave Theory ◽  
Liouville Theory ◽  
Fredholm Alternative ◽  
Vasicek Model ◽  
Financial Flows ◽  
Profitability Analysis

Methods of calculating the approximate price of options using instruments of spectral analysis, singular and regular wave theory in the context of influence of fast and slow acting factors are developed. By combining methods from the spectral theory of singular and regular disturbances, one can approximate the price of derivative financial instruments as a schedule of its own functions. The article uses the theory of spectral analysis and the singular and regular theory of perturbations, which are applied to the short-term interest rates described by the Vasicek model with multidimensional stochastic volatility. The approximate price of derivatives and their profitability are calculated. Applying the Sturm-Liouville theory, the Fredholm alternative, and the analysis of singular and regular disturbances in different time scales, explicit formulas were obtained for the approximation of bond prices and yields based on the development of their own functions and eigenvalues of self-adjoint operators using boundary value problems for singular and regular perturbations. The theorem for estimating the accuracy of derivatives price approximation is established. Such a technique, in contrast to existing ones, makes it possible to study the stock market dynamics and to monitor the financial flows in the market. This greatly facilitates the statistical evaluation of their parameters in the process of monitoring the derivatives pricing and the study of volatility behavior for the profitability analysis and taking strategic management decisions on the stock market transactions.

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