The review of the financial strategies of Polish pulp and paper companies listed on the Warsaw Stock Exchange

The review of the financial strategies of Polish pulp and paper companies listed on the Warsaw Stock Exchange. The main purpose of this paper is to evaluate the financial strategy undertaken by the polish pulp and paper companies listed on Warsaw Stock Exchange in 2018 - 2020. In this paper three most frequently used indicators characterising company’s financing strategy were analysed, namely: equity capital share in total capital, equity capital share in fixed assets and long-term debt share in total debt. The calculations used data from publicly available quarterly financial statements of the analysed enterprises for the period from 1st quarter of 2018 to 3rd quarter of 2020. The calculations showed that Kompap has a more moderate policy of financing its activity. The second company, Arctic Paper, was characterized by a more risky approach to the financing strategy.

Evolutionary Game Analysis of Capital-Constrained Supplier’s and Manufacturer’s Financing Schemes

Purchase order financing (POF) and buyer direct financing (BDF) are both innovative financing schemes aiming to help financial constrained suppliers secure financing for production. In this paper, we investigate the interaction mechanism between suppliers’ financing strategy selection and manufacturers’ loans offering strategy adoption under two innovative financing schemes. We developed an evolutionary game model to effectively investigate the interaction mechanism between suppliers and manufacturers and analyzed the evolutionary stable strategies of the game model. Then we used system dynamics to present the performance of the evolutionary game model and took a sensitivity analysis to verify the theoretical results. The main conclusions are as follows: in the supply chain, to deal with the noncooperation among suppliers and manufacturers on innovative financing schemes, the revenue of manufacturers, the rate of manufacturer loan, and the proper financial risk factor should be relatively high.

Financing Strategy and Carbon Emission Abatement in a Supply Chain considering Retailers’ Competition

This paper investigates the issues of financing channels (bank credit financing, trade credit financing, and dual-channel financing) and carbon emission abatement in a supply chain consisting of one capital-constrained manufacturer and two capital-constrained retailers. Compared with bank credit, we find that every member can make more profit under trade credit when only one financing channel is available. When both bank credit and trade credit are available, the retailers’ financing strategy highly depends on the interest rates charged by the creditors. In addition, we also examine the impact of financing channels on emission abatement. It shows that the manufacturer reduces more carbon emissions under trade credit. Interestingly, the emission abatement has nothing to do with trade credit interest rate when retailers only adopt trade credit, whereas it is closely related to trade credit interest rate under dual-channel financing.

The review of the financial strategies of Polish wood-industry companies listed on the Warsaw Stock Exchange

The review of the financial strategies of Polish wood-industry companies listed on the Warsaw Stock Exchange. The paper focuses on the analysis of the financing strategies of wood industry enterprises listed on Warsaw Stock Exchange in 2018 - 2020. This paper examines three main values characterising company's financing strategy: equity capital share in total capital, equity capital share in fixed assets and long-term debt share in total debt. The data for calculations was taken from publicly available quarterly financial statements of analysed entities from 1st quarter of 2018 to 3rd quarter of 2020. The analysis showed that moderate financing strategy was used by Biofactory and KLON companies and an aggressive strategy was used by Standrew. KPPD financing strategy was not possible to clearly define due to the high volatility of values of examined ratios and depend on the considered period. The highest variability in the structure of foreign capital was observed in KLON - in this company the highest level of long-term debt was observed (above 70% of total debt).

Financing Social Enterprises: An Upper Echelon Perspective

Social entrepreneurship literature is silent on what governs social enterprises’ (SE) financing decisions in contexts where there are no clear legal distinctions between social and commercial enterprises. Using a qualitative multiple case study approach, this research explores how social entrepreneurs decide their financial strategies and evaluate investors in such contexts where such blurred boundaries exist. The case study of nine Indian SEs operating in emerging sectors of health, education, and agriculture reveals social entrepreneurs’ perspectives on SE financing and practical dilemmas faced when moving beyond donation is considered. Our findings present that the organizational factors governing their financing strategy and due diligence criteria used for investor evaluation reflect the social entrepreneur’s value-based lens of self-conceptualizing their own vision of ‘What is a Social Enterprise’ in their financial decisions. Though this does not adhere to popular capital structure theories used in commercial finance, it conforms with Hambrick and Mason’s Upper Echelons Theory, which states that organizations reflect their top executive’s values and belief in their decisions. We observe in our study that self-discretion and value expression is a contextual necessity for social entrepreneurs operating in emerging sectors where there are no clear legal distinctions in organizational forms or theoretical directives on financing decisions.

SDG 3 and financing instruments in Austria and Ukraine: Challenges and perspectives

This study aims to conduct a comparative analysis of the SDG in healthcare achievement in Austria and Ukraine and to determine possible lessons for Ukraine based on best EU and world experiences. To identify existing challenges and perspectives a comparative analysis of key indicators of healthcare expenditures and health financing systems in Austria and Ukraine was carried out. Results indicate that in Ukraine there is a substantial lack of public funding for healthcare (only 682 US dollars per capita in 2018), a poor share of voluntary health insurance (less than 1%), significant amounts (on average 50%) of expenditures of the population in general spending on health. On the contrary, in Austria, there is sufficient public funding for healthcare (5,879 US dollars per capita in 2018), more than 5% share of voluntary health insurance, moderate amounts (on average 25%) of expenditures of the population in general spending on health. Austria’s experience as an EU-member country with a successful example of a financing strategy for the healthcare system is a sound example for Ukraine. The alternative financing tools (e.g. result-based financing, impact investment, public-private partnership) can be used as an additional financing mechanism of healthcare funding in Ukraine. The use of these instruments along with the improvement of the fiscal policy, social security, and governance based on Austrian experience can cut the existing financing gap to achieve SDG targets in healthcare in Ukraine. AcknowledgmentThis study is financed equally by the Austrian Federal Ministry of Education and Science and the Ministry of Education and Science of Ukraine.

Interaction between Land Financing Strategy and the Implementation Deviation of Local Governments’ Cultivated Land Protection Policy in China

The deviation of implementation of China’s cultivated land protection policy is the core problem urgently needing to be solved in the process of protecting the country’s cultivated land. This paper aims to explain the universality of this implementation deviation from the perspective of the spatial interaction of fiscal land strategies. Based on the data of 30 provinces in China from 2000 to 2015, the spatial Durbin model is used to validate the corresponding theoretical hypothesis. The results show that: (1) At the national or regional level, the given local government’s behavior with regard to land conveyance and land-orientation investment will aggravate implementation deviations of the cultivated land protection policy in the local area. (2) Land conveyance and land-orientation investment behaviors cause a spatial spillover effect. As a result, these behaviors not only exacerbate the implementation deviation of the cultivated land protection policy in the local area, but also exacerbate this deviation in adjacent areas. (3) The spatial spillover effects of land conveyance and land-orientation investment strategies in the eastern, central and western regions of China show marked differences. However, in general, compared with the land transfer strategy, the spatial interactions of the land-orientation investment strategy represent the more important factor that gives rise to the widespread deviation in the implementation of the cultivated land protection policy. (4) The transformation of the performance appraisal system can help to weaken the interactive behavior of the land financing strategy. This can, in turn, not only alleviate the deviation degree of the implementation of the local cultivated land protection policy, but also the deviation degree of the implementation of the latter in adjacent areas.

Implementation Strategy of the Mutanaqishah Musyarakah Academic at Home Ownership Financing in Sharia Banks in Indonesia

This research aims to: (1) Knowing the obstacles faced in implementing the Mutanaqisah Musharaka Financing (2) The solutions taken to overcome these obstacles; and (3) the right strategy to apply musyarakah mutanaqisah financing. This study uses the Analytic Network Process (ANP) method and the assistance of Super Decision software. ANP is carried out in three stages, namely: first, in-depth interviews with Islamic banking experts and practitioners to identify the factors that influence the minimum amount of musyarakah mutanaqisah. Second, the results of the first step are used to create an ANP framework and a questionnaire addressed to Islamic banking experts and practitioners; and third, ANP analysis to determine the best priorities, solutions and strategies for implementing Musyarakah mutanaqisah financing in Islamic banking.The results showed that: (1) The constraints faced by Islamic banking in implementing Musyarakah Mutanaqisah financing for Islamic banking KPRS financing can be divided into two, namely internal and external problems. Internal problems stem from internal banking, banking human resources, and musyarakah mutanaqisah financing products. External problems originate from customers, authorities, and Islamic banks. The most priority problem faced is internal problems, namely human resources (HR) associated with low knowledge and skills about the MMQ contract. Meanwhile, the most dominant external problem is Islamic banking with a lack of insight into the MMQ contract. (2) The solutions given in determining the financing strategy for the musyarakah mutanaqisah are divided into two, namely internal and external solutions. The most priority solution comes from internal solutions, namely product solutions in the form of Islamic banking that must vary the contract, especially for the MMQ contract; and (3) The alternative with the most priority in determining the financing implementation strategy with the musyarakah mutanaqisah contract in Islamic banking is the Socialization and Education Program, followed by Contract Optimization, Portfolio Development, Image Strengthening, MMQ Segmentation Mapping, and MMQ financing market segmentation.

Trade credit or vertical merger strategy for financial constrained retailer in a supply chain with asymmetric competing retailers

Motivated by the practices that many small and middle-sized enterprises (SME) retailers have financial constraints due to their limited budget and financing access, this paper studies the manufacturer's financial strategy (i.e., trade credit versus vertical merger with a capital-constrained retailer) in a supply chain with two financial asymmetric retailers. We first compare the equilibrium profits under different financing modes and find that if manufacturer's capital cost under trade credit or administrative cost under vertical merger is below a certain threshold, the manufacturer should finance instead of deselect the capital-constrained retailer even though the competition is intensified. Furthermore, manufacturer can choose a financing strategy based on the tradeoff between financing value and cost from trade credit or vertical merger. Under trade credit, the increased horizontal competition intensity is against the capital-constrained retailer while with vertical merger the competition intensity is harmful to the capital-abundant retailer. In addition, through investigating the impact of different financial modes on the equilibrium profits of the supply chain players, we find that whether trade credit can outperform vertical merger for both the manufacturer and the capital-constrained retailer depends on horizontal competition intensity, profit-sharing proportion and administrative cost of vertical merger. Moreover, the capital-abundant retailer will get the lowest profit when other participators act like an alliance. Our study provides a roadmap for the manufacturer to make a financing policy for capital-constrained retailer who competes with a funded retailer.