Structural time series: computational efficiency in estimating economic parameters in industry

A growing field is related to automatized Time Series analysis, through complicated due to the dependence of observed and hidden dimensions often presented in these data types. In this report the problem is motivated by a Brazilian financial company interested in unraveling relation structure explanation of the Japanese' CPI ex-fresh Food \& Energy across 157 economical exogenous variables, with very limiting data. The problem becomes more complex when considering that each variable can enter the model with lags of 0 to 8 periods, as well as an additional restriction of admitting only a positive relationship. This report discusses three possible treatments involving models for structured time series, the most relevant approach found in this study is a Dynamic Regression Model combined with a Stepwise algorithm, which allows the most relevant variables, as well as their respective lags, to be found and inserted in the model with low computational cost.

Kepemilikan Keluarga, Tata Kelola Perusahaan, dan Audit Report Lag

The governance of family companies is still a concern for investors and other stakeholders. This study examines the effect of family ownership and corporate governance on audit report lag (ARL). The research sample is a non-financial company with a dominant family ownership and listed on the Indonesia Stock Exchange for the 2017-2019 period. Using the usual least squares analysis method and multiple regression techniques, the results showed that family ownership and the number of commissioners were able to encourage auditors to complete audit reports faster. Meanwhile, the presence of independent commissioners and audit committees does not significantly affect ARL. Additional analysis enriches the research findings that there are unique characteristics in terms of monitoring and expropriation effects of family ownership on ARL that up to a certain level of ownership, family members carry out the supervisory function well and can issue audited financial reports more quickly. Keywords: Family Ownership; Board of Commissioners; Independent Commissioner; Audit Committee; Audit Report Lag.

A Study of Nonbanking Financial Companies in India

In late 2018, the default by a major nonbanking financial company (NBFC) in India led to a credit crunch in the Indian economy. This paper analyzes the evolution of the NBFC sector in India and the sector’s role in extending credit, and it discusses the factors contributing to the 2018 crisis. The paper attempts to understand the advantages and disadvantages of the business model of NBFCs, and the drivers of their rapid rise and subsequent challenges. The paper also briefly discusses the potential impact of the coronavirus disease (COVID-19) pandemic on the NBFC sector.

Long-Term Simultanity Model Of Indonesian Financial Company Value And Debt Policy

Competition in financial companies makes each company increasingly improve its performance so that its goals can still be achieved. The main goal of a company is to get profits, to achieve these goals, management is required to make good planning. Likewise, management in a financial company has a goal, where the Debt Policy and Company Value will affect the company's management in achieving profits. This study aims to analyze as much as possible the effectiveness of profitability, dividend payout ratio, asset structure, Free Cash Flow, company size and sales growth and have an influence on the Debt Policy and Company Value. In this study, researchers used the OLS (Ordinary Least Square) method, the Panel Regression method and the Simultaneous / 2SLS method (Two Stage Least Square). Which aims to analyze the influence of independent variables on the dependent variables both separately and jointly and also see the influence of variables in the short and medium term.

Data Science for Finance: Best-Suited Methods and Enterprise Architectures

We live in an era of big data. Large volumes of complex and difficult-to-analyze data exist in a variety of industries, including the financial sector. In this paper, we investigate the role of big data in enterprise and technology architectures for financial services. We followed a two-step qualitative process for this. First, using a qualitative literature review and desk research, we analyzed and present the data science tools and methods financial companies use; second, we used case studies to showcase the de facto standard enterprise architecture for financial companies and examined how the data lakes and data warehouses play a central role in a data-driven financial company. We additionally discuss the role of knowledge management and the customer in the implementation of such an enterprise architecture in a financial company. The emerging technological approaches offer opportunities for finance companies to plan and develop additional services as presented in this paper.

DHFL Meltdown: The Corporate Governance Lapses

India’s non-banking financial institutions (NBFIs), broadly constituting the less-regulated shadow banking sector, have been plagued with scams, triggering a domino effect in the Indian money market. Major corporate governance issues were highlighted in NBFIs with the unfurling of the ILF&S fraud; it virtually created a sub-prime crisis. In such a scenario, where the shadow banking sector was subject to change in regulations to ensure vigilance, corporate governance lapses had again led to the meltdown of Kapil Wadhawan led Dewan Housing Finance Limited (DHFL). Registering a net profit growth of 25% in the third quarter of financial year 2017, DHFL was one of India’s leading housing finance companies with a value of whopping ₹1.01 trillion as its asset under management (AUM). The company had nose-dived from its coveted position, suffering a loss of ₹22.23 million for the last quarter of the financial year 2018–2019. The company’s credit ratings of commercial papers and non-convertible debentures were downgraded; non-payment of interests led to enforcement of resolution plan, with the board of directors acceding to nationalized banks. The company’s reputation had crashed with its share prices, amidst allegations of lookout notice issued for its promoters for siphoning funds through shell companies. The case describes the oversights and negligence of DHFL in terms of corporate governance practices in the context of the NBFC (non-banking financial company) sector. The jury is out to evaluate whether Wadhawan had followed the rules of corporate governance in letter and spirit, or the tightening noose of regulations and market sentiments around the ‘shadow banking’ sector of India spelt doom for DHFL.

Motivation and Motivation Profiles of the Employees in a Modern Organization

The article presents the results of an empirical study of staff motivation in a large financial company in a case study format. The technique of V. I. Gerchikov to determine the motivational profiles of employees: instrumental, professional, patriot, boss, lumpen. The experience of research conducted using this technique contains limited information on how to implement such research in organizations, and what results can be obtained. The features of the implemented research are the format of the survey (internally, HR research), the motivation of respondents (the possibility of obtaining a personal report), the format for presenting the results (the report and infographics on the internal portal), the breadth of analysis of the data obtained (analytics for certain categories of employees) and the nature of the research – applied. The test results allowed us to understand various aspects of motivation and motivational profiles of employees by category (position, length of service, gender). In the studied organization, the most common were professional and instrumental motives, but employees of different positions differed in terms of motivation and in motivational profiles. Professional motives are more typical for managers, and instrumental ones for specialists. Seniority in the company affects the change in motivation: if professional and patriotic motives are more typical for newcomers, then over time professional and instrumental ones begin to prevail. The most common employee profiles in an organization are “instrumental” and “professional”. An analysis of the differences in the distribution of employee profiles revealed that there are more “professionals” among managers (56%), and among employees working with clients – “instrumentalists” (60%). Employees with profiles “professional-instrumental” and “instrumental-professional” are widespread in the studied company. The results obtained were taken into account when adjusting the current motivation system and personnel development programs.