The impact of financing policy on the cost of debt

The cost of debt is a key element to define the amount of the regular interest payments of a company and its business value. It is used for indicators that warn of the economic crisis, which is relevant for the countries where most companies are financially dependent on liabilities. The formalized criteria for the types of financing policy, improved procedure for the cost of debt calculation make it possible to reveal policy with the capital structure that minimizes the cost of debt.The study is based on Ukrainian food processing companies for the period 2013–2020. The studied database was distributed by the types of financing policies: 22% of the cases have a conservative policy, 15% – moderate, 26% – aggressive, 37% – super-aggressive. The results show that the highest weighted cost of debt (24.1%) belongs to the conservative policy, which replaces negative equity by the expensive long-term debts, as well as super-aggressive policy (20.8%) with trade payable that is near half of the capital, and long days payable outstanding. A company can reduce the cost of debt relying on non-interest-bearing liabilities and trade payable if its days payable outstanding are kept at the industrial level or below. Moderate and conservative financing policies, which are based on equity and avoid debts, provide the lowest weighted cost of debt: 2.1% and 1.2%.Thus, choosing the desired type of financing policy for the company, it is possible to form a capital structure that will reduce the cost of debt.

Komparasi Determinan Pembiayaan Pada Bank Mandiri Dan Bank Syariah Mandiri

The purpose of this research is to show the differences in financing between Bank Mandiri and Bank Syariah Mandiri; the effect of the inflation rate on financing; the influence of the BI-7 day repo rate on financing; the influence of the number of third party funds on financing; the effect of the statutory reserve requirement on financing. This research uses a quantitative approach with associative and comparative types of research. The sampling technique used was the purposive sampling method. The test uses a hypothesis test and an independent sample test to compare the financial performance of the two banks. The results showed that the inflation rate, BI-7 day repo rate, and the minimum reserve requirement had no effect on financing at Bank Mandiri and Bank Syariah Mandiri. While third-party funds partially have a positive and significant effect on financing at Bank Mandiri and Bank Syariah Mandiri. There is a significant difference between financing between Bank Mandiri and Bank Syariah Mandiri. This research can provide input for Islamic banking, especially Bank Mandiri and Bank Syariah Mandiri, in determining profit-sharing financing policies.

Venture financing in the era of increasing epidemiological risks

The relevance of the study of venture financing development in the era of increasing epidemiological risks is considered within the current situation in society, namely the significant impact of COVID-19 on all sectors of social and economic development. This shows the urgency of a systematic justification of current trends and peculiarities of venture financing development, taking into consideration the COVID-19 situation. The above-mentioned aspects define the purpose of our study. The theoretical basis of our study means the analysis of the specifics and priorities of venture financing, considering the timeframe from venture financing formation to nowadays. Thus, the stages of evolution of views on venture financing are highlighted. The article examines the dynamics of venture financing globally, as well as the change of relevant indicators in Europe, Asia and the United States. In particular, along with the analysis of the total amount of venture financing in each of the considered markets, the volumes of venture financing agreements that were carried out for the first time were estimated. This allowed us to analyze the relevant trends and make conclusions on the priority objects for attracting the resources of venture investors in the era of growth of epidemiological risks, depending on the experience of venture capitalists. The article compares venture funding and the incidence of COVID-19 in some countries in Europe, Asia and the United States. The approaches of European experts to the assessment of the impact of COVID-19 on venture financing are revealed. The analysis of the relevant calculations provides the possibility to structure the priorities of modern venture investors depending on the sectoral distribution of COVID-19 influences. The practical value of the study is considered within a comprehensive analysis of trends in venture financing and assessment of changes in the priorities of venture investors, considering the increasing epidemiological risks. The research may be useful both in the context of developing public venture financing policies and within developing venture financing strategies at the business level.

Governance factors that affect the implementation of health financing reforms in Tanzania: an exploratory study of stakeholders’ perspectives

The development of effective and inclusive health financing reforms is crucial for the progressive realisation of universal health coverage in low-income and middle-income countries. Tanzania has been reforming health financing policies to expand health insurance coverage and achieve better access to quality healthcare for all. Recent reforms have included improved community health funds (iCHFs), and others are underway to implement a mandatory national health insurance scheme in order to expand access to services and improve financial risk protection. Governance is a crucial structural determinant for the successful implementation of health financing reforms, however there is little understanding of the governance elements that hinder the implementation of health financing reforms such as the iCHF in Tanzania. Therefore, this study used the perspectives of health sector stakeholders to explore governance factors that influence the implementation of health financing reforms in Tanzania. We interviewed 36 stakeholders including implementers of health financing reforms, policymakers and health insurance beneficiaries in the regions of Dodoma, Dar es Salaam and Kilimanjaro. Normalisation process theory and governance elements guided the structure of the in-depth interviews and analysis. Governance factors that emerged from participants as facilitators included a shared strategic vision for a single mandatory health insurance, community engagement and collaboration with diverse stakeholders in the implementation of health financing policies and enhanced monitoring of iCHF enrolment due to digitisation of registration process. Governance factors that emerged as barriers to the implementation were a lack of transparency, limited involvement of the private sector in service delivery, weak accountability for revenues generated from community level and limited resources due to iCHF design. If stakeholders do not address the governance factors that hinder the implementation of health financing reforms, then current efforts to expand health insurance coverage are unlikely to succeed on their own.

Impacts of a comprehensive tuberculosis control model on the quality of clinical services and the financial burden of treatment for patients with drug-resistant tuberculosis in China: a mixed-methods evaluation

Background The China National Health Commission-Gates TB Project Phase III implemented a comprehensive TB control model including multiple interventions to address the burden of drug-resistant TB (DRTB). This study aims to evaluate the quality of DRTB clinical services and assess the financial burden of DRTB patients during the intervention period. Methods A mixed-methods approach was used to evaluate the effectiveness of interventions in the three project provinces: Zhejiang, Jilin and Ningxia Hui Autonomous Region. The quantitative data included de-identified DRTB registry data during 2015–2018 in project provinces from China CDC, medical records of DRTB patients registered in 2018 (n = 106) from designated hospitals, and a structured DRTB patient survey in six sample prefectures in 2019. The quality of clinical services was evaluated using seven indicators across patient screening, diagnosis and treatment. Logistic regression was conducted to explore factors associated with the extremely high financial burden. Semi-structured in-depth interviews with policymakers and focus group discussions with physicians and DRTB patients were conducted to understand the interventions implemented and their impacts. Results The percentage of bacterially confirmed patients taking a drug susceptibility test (DST) increased significantly between 2015 and 2018: from 57.4 to 93.6% in Zhejiang, 12.5 to 86.5% in Jilin, and 29.7 to 91.4% in Ningxia. The treatment enrollment rate among diagnosed DRTB patients also increased significantly and varied from 73 to 82% in the three provinces in 2018. Over 90% of patients in Zhejiang and Jilin and 75% in Ningxia remained in treatment by the end of the first six months’ treatment. Among all survey respondents 77.5% incurred extremely high financial burden of treatment. Qualitative results showed that interventions on promoting rapid DST technologies and patient referral were successfully implemented, but the new financing policies for reducing patients’ financial burden were not implemented as planned. Conclusions The quality of DRTB related clinical services has been significantly improved following the comprehensive interventions, while the financial burden of DRTB patients remains high due to the delay in implementing financing policies. Stronger political commitment and leadership are required for multi-channel financing to provide additional financial support to DRTB patients.