rss_2.0Sciendo RSS Feed for Financial Internet Quarterlyhttps://sciendo.com/journal/FIQFhttps://www.sciendo.comhttps://sciendo-parsed.s3.eu-central-1.amazonaws.com/66e33f217d402026d60a26e2/cover-image.jpghttps://sciendo.com/journal/FIQF140216https://sciendo.com/article/10.2478/fiqf-2024-0015<abstract> <title style='display:none'>Abstract</title> <p>The objective of the study is to explore the motives of investors to invest in derivative markets. It is a quantitative study where a survey method was used to collect data from the investors using a probability sampling method. The data was analyzed using PLS-SEM to test the conceptual model. The results of the study show that speculation, hedging, and financial literacy are strong predictors of investors’ motives to invest in the derivatives market. The R2 was 0.447 implying speculation, hedging, and financial literacy explain 44.7% of the variance of the dependent variable, that is, the motives of investors to invest in equity derivatives, and the adjusted R-square is 0.432 (43.2%) which validates the model. Few studies explore the reasons to invest in derivatives using secondary data. However, to the best of the author’s knowledge studies exploring the motives of investors are rare, and there have been none using primary data from an Indian perspective. The study provides empirical evidence that could be useful to companies, investors, brokers, and policymakers to understand the motives of investors to invest in derivatives.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00152024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0020<abstract> <title style='display:none'>Abstract</title> <p>Payment clearing is important to ensure that the payment is transferred or the cash from one bank account moves to the other bank. The banking system in Iraq follows two sorts of clearance systems which are the IBCS (Inter Bank Clearing System) and C-ACH (Check Automated Clearing House System). Though the Central Bank of Iraq (CBI) has already modernized the payment clearing systems, the country’s banks still use the interbank clearing systems. In this background, the current study is a first-of-its-kind attempt to compare and contrast the IBCS and C-ACH systems so as to understand the benefits and disadvantages associated with these two clearance systems and identify the optimal one. For this study, the researcher used secondary data available from the CBI for the study period between 2018 and 2022. The collected data was analyzed for descriptive statistics and correlation to validate the hypotheses. The Mann Whitney U test and independent sample T-test were conducted in the study. From the study outcomes, it is clear that there exists a significant difference between the systems’ performance in terms of number of transfers in dollars and Iraqi dinars as well as the distribution of bank transfers through checks in dollars and Iraqi dinars. Between the systems (IBCS and C-ACH) under study, the C-ACH system gained prominence with the highest number of transfers and the distribution of bank transfers through checks. The study results confirm the increasing penetration of the electronic clearing system while the policy makers in the government and decision makers at the CBI must devise strategies to bring all the participant banks in the country under a unified clearing system so that the end consumer gains benefits in terms of cost, time, data security, ease and so on.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00202024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0017<abstract> <title style='display:none'>Abstract</title> <p>A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2022. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private -sector investment, which can sustain long-term economic growth.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00172024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0019<abstract> <title style='display:none'>Abstract</title> <p>The theory of fiscal federalism suggests that debt of subcentral levels of government is closely related to the internal organization of the country, defined through intergovernmental fiscal relations. Due to a great importance of subcentral levels of government in the theory and practice of fiscal federalism, the aim of the research is to empirically investigate the determinants of local government units’ (LGUs) debt in the Federation of Bosnia and Herzegovina (FBiH). Based on panel data from 2011 to 2019 and by using a generalized method of moments (GMM), we estimate the model using sets of fiscal, institutional, economic, and demographic variables. The results indicate that the debt of LGUs in FBiH is significantly determined by intergovernmental fiscal relations defined through a group of fiscal and institutional variables and demographic factors. Significant determinants of LGU’s debt in FBiH in the both short and a long term include financing of special expenditure needs of some LGUs together with LGUs within a canton with special expenditure needs. Furthermore, transfers from other government levels are also significant in the short and a long term. Based upon our results, we conclude with several policy implications important for the upcoming intergovernmental decision-making processes in FBiH.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00192024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0018<abstract> <title style='display:none'>Abstract</title> <p>This study employs the Maximal Overlap Discrete Wavelet Transform technique to analyze the wavelet-based correlations between Bitcoin, bond markets, and thirteen sectoral stock indices in India over the period from 2017 to 2023, focusing on the comparison of pre-and post-COVID-19 pandemic effects. The aim is to investigate the dynamic interrelationships and to understand the impact of the COVID-19 pandemic on these financial assets. The study period is divided into pre-COVID-19 and post-COVID-19. Findings from the study reveal a minimal negative correlation between Bitcoin, bond markets, and the sectoral stock indices in the pre-COVID era, indicating a lack of significant interdependence among these assets. However, the scenario changes markedly in the post-COVID period, shifting towards a positive correlation. This shift suggests that the COVID-19 pandemic has altered the relationship dynamics, leading to a more interconnected financial environment where movements in Bitcoin have begun to show a significant positive correlation with the movements in bond and sectoral stock indices in India. The study contributes to the existing literature by providing empirical evidence of how external shocks, such as the COVID-19 pandemic, can influence the correlation patterns among different financial assets. It highlights the importance of considering the changing dynamics in financial market correlations for investors, policymakers, and researchers in portfolio diversification, risk management, and financial stability analysis. Further, it underscores the role of alternative investments like Bitcoin in the evolving market landscape, particularly in response to global crises.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00182024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0021<abstract> <title style='display:none'>Abstract</title> <p>This study aimed to shed light on the contribution of analytical procedures (APs) to supporting corporate governance. This was achieved through a field study in which a questionnaire was created and disseminated to a random sample of external auditors in Algeria. The data collected underwent analysis using the SPSS. The study concluded that APs play a crucial role in bolstering corporate governance by analyzing the company’s continuity capability and identifying financial problems facing the companies. In addition, APs enhance the quality and efficiency of external auditing, especially considering auditing as one of the key mechanisms that support corporate governance.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00212024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0016<abstract> <title style='display:none'>Abstract</title> <p>The aim of the study is to examine the impact of society’s economic well-being determinants – above and beyond the firm-specific and macroeconomic determinants – on firm profitability in Poland. Based on stakeholder theory we hypothesized that the economic well-being of society can influence firm performance. Therefore, we included real wage and salary growth, internal migration, international migration, and natural increase variables in the regression models. We applied four models with different sets of variables using pooled ordinary least square regression, as well as fixed and random effects regressions with robust standard errors clustered at the firm level. The dataset covers the period from 2004 to 2021, comprising 5400 firm-year observations from Poland in the wholesale and retail trade sector. We found that firm profitability generally increases with higher inflation and exchange rate depreciation. Moreover, in models including society’s economic well-being variables, GDP growth is no longer a significant determinant of firm profitability. Most importantly, the study demonstrates a positive relationship between real wage and salary growth and firm profitability. We also found that international migration is negatively associated with firm profitability. Regarding natural increase, the study suggests that it has a positive effect on return on equity, but not on return on assets.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00162024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0022<abstract> <title style='display:none'>Abstract</title> <p>The article evaluates the development of the tax burden on cigarettes in the Czech Republic from 1993 to the end of 2023. Tax burden is represented by effective tax rate. The research results show that the tax burden on these products is still increasing. Not only does the tax burden increase, but so does the price of these products. The regression analysis results show that quantities such as the price of cigarettes, the effective tax rate or the amount of cigarettes consumed are factories that positively influence tax revenue. Since the tax rate or the price of these products constantly increases, the tax revenue is also increasing. It increased almost six- fold over the entire analyzed period. At the same time, it was found that other factors, such as the average wage, also affect the tax revenue. It is necessary to consider that the cigarette consumption has been showing a downward trend in recent years. However, the reason is not only the increasing tax burden and the price of these products but also the transition of consumers to so-called e-cigarettes. A reduction in cigarette consumption may be reflected in the future by reducing healthcare costs, which will create potential reductions in public health insurance payments.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00222024-09-12T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0011<abstract> <title style='display:none'>Abstract</title> <p>Financial inclusion, for which the keystone is access to a bank account, is crucial to overcome the socioeconomic backwardness of African countries and to improve the African societies’ well-being. The study concentrates on this continent to better understand the nature of its development in terms of financial inclusion. The research aims to identify the institutions’ impact on financial inclusion in 35 African countries in the years 2010-2019. The analysis is based on a panel model with fixed individual effects. Novelty of the study rests in incorporation of four institutional variables: constraints on the executive, resolving insolvency, property rights, and WGI. The results showed a positive and statistically significant impact of resolving insolvency on financial inclusion (a measure covering people with financial institution accounts) across the entire sample. However, this relationship is especially visible in more developed countries, while constraints on the executive turned out to be crucial for low-income countries. Another novelty of the study is creation of an index of financial inclusion covering Mobile Money which was used to verify the obtained results. In this case, no positive impact of any institutional variable was identified which may mean that a favourable institutional environment is not required for the development of Mobile Money.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00112024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0008<abstract> <title style='display:none'>Abstract</title> <p>This paper studies the relationship between risk propensity, education and financial literacy. The results of the empirical investigation confirm the importance of the key explanatory variables of education and financial competence. Since they are both included in the model, the different roles of each are singled out. In particular, while education turns out to be a factor contributing to raising risk tolerance, financial literacy tends to reduce risk propensity. Risk attitude is evaluated by self-reported assessment and modeled through cumulative logit models. In order to handle anomalous data, M estimators with a bounded influence function are considered.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00082024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0009<abstract> <title style='display:none'>Abstract</title> <p>The main purpose of the article is to identify key factors of adaptive potential that can have a significant impact on counteracting crisis situations and increasing the level of financial security and business resilience of enterprises. The object of the study is determination of the factors of adaptive potential that directly affect the system of financial security and business sustainability of a enterprise. The scientific task is to model the hierarchical ordering of the key factors of adaptive potential according to the level of their significance in influencing crisis situations in the context of ensuring the financial security and business sustainability of enterprises. The research methodology involves the use of expert analysis methods with the additional use of the Delphi method, the method of hierarchical analysis, and graph theory. As a result of the study, a list of the most significant factors of adaptive potential for countering crisis situations was presented. As a result, the factors of adaptive potential are hierarchically ordered from the most significant to the least significant in ensuring the financial security of the enterprise. The innovativeness of the results obtained is revealed through the proposed approach to modeling the determination and order of factors of adaptive potential to counteract crisis situations. The study is limited by not taking into account the specifics of specific enterprises. Prospects for further research are aimed at taking into account the specific type of activity of enterprises for a specific country.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00092024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0013<abstract> <title style='display:none'>Abstract</title> <p>This study examines the influence of fiscal councils on public opinion regarding fiscal issues. Using a survey-framing experiment on a representative sample of 900 inhabitants of the Czech Republic, the study evaluates how the framing of a message regarding the negative effects of rising government debt would impact the attitudes of respondents. The results show that framing the message as coming from the Czech Fiscal Council does not increase its credibility. Fiscal councils should not focus on persuading the public of their viewpoint on public finance issues, but rather utilize the knowledge of agenda-setting theory to gain media attention for fiscal issues.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00132024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0010<abstract> <title style='display:none'>Abstract</title> <p>In today`s digital era, it is all the more desirable that all businesses, whether gigantic or minor in operation, should adopt financial technology and grow their businesses within their region and outside of the region. The Micro, Small &amp; Medium Enterprises (MSME) segment is the mainstay of the Indian economic environment thus it is crucial that MSME players adopt financial technology in their routine commercial transactions. The present research study was conducted to investigate the enablers of usage of a Mobile Wallet by MSMEs in rural areas of India using interpretive structural modeling. It aims to categorize the foremost enablers and assess the relative relations between the recognized ten key enablers and proposes a hierarchical outline of vital enablers on MSME entrepreneurs from several hill states of India. The most prominent enabler that promoted the use of mobile wallets among MSME entrepreneurs included risk factors and perceived cost. The study suggested that multi-dimensional determinations are required to make certain of the use of mobile wallets by MSME entrepreneurs so that they can assess maximum economic opportunities and support the fiscal expansion of the state and the country.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00102024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0014<abstract> <title style='display:none'>Abstract</title> <p>This study aims to investigate the economic characteristics of cryptocurrencies and assess the current legal framework regarding the potential to regulate transactions involving cryptocurrencies and other virtual assets. To achieve this goal, a complex set of general scientific and specialized research methods was applied, including comparative legal analysis, system-structural examination, generalization method, as well as methods of analysis and synthesis, DFD to build a model of the influence of cryptocurrency on the financial security of the state. As a result, we delved into the economic essence of blockchain-based cryptocurrencies as an alternative to traditional fiat currencies based on the principle of decentralization. It has been established that Bitcoin has a unique "hardness", due to which this cryptocurrency is rightly called «digital gold». The article analyzed the dynamics of the development of the use of blockchain technologies for 2009-2022, the results of which indicated the continuation of their annual growth in use. The article presents the results of a study on the introduction of cryptocurrency in Ukraine, which made it possible to systematize the main risks associated with it. In further research, it is possible to continue studying the economic-legal mechanism of the introduction of the national cryptocurrency in Ukraine and the use of blockchain in other financial processes at the state level.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00142024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0012<abstract> <title style='display:none'>Abstract</title> <p>This study examines the existing credit rating methodology proposed in the literature to explore the development of a new credit rating model based on the financial variables of the enterprise. The focus is on the period after the financial crisis of 2018. This study aims to develop a credit rating model using neural networking and tests the same for its accuracy. The goal of this study is to address the issue brought up by previous research on subjectivity in the data used to determine creditworthiness. The database for the study includes financial data up to July 2022 from December 2018. A model is created to assess an enterprise's creditworthiness using neural networking. This study first evaluated the existing credit rating models proposed in the literature. Next, based on financial data and neural networking, a model is developed. It was evident that the model developed in this study has an accuracy of 85.16% and 76.47% on train and test data respectively. There exist several models to determine the creditworthiness of borrowers but all failed to address the concern of subjectivity in the data. The model created in this study made use of cutting-edge technology such as neural networking and financial data. This paper's unique approach and model construction based on a comparison of existing models is rare in the literature and justify the originality of this paper with a practical value at the global level.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00122024-06-20T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0004<abstract><title style='display:none'>Abstract</title> <p>The aim of the article is to analyze the liquidity of non-financial companies listed on the Warsaw Stock Exchange. The article addresses the liquidity of the examined group against the background of the entire market and its relationship with debt, profitability, growth and the risk of bankruptcy, including in the context of the COVID-19 pandemic. The article examines the assertion that COVID-19 influenced the practice of aggressive liquidity management in terms of indebtedness, profitability, value creation, and risk of bankruptcy. The research revealed that public companies behaved differently than the entire sector by pursuing an aggressive management policy and that the pandemic caused an even greater decrease in the static liquidity ratios while cash conversion cycle (CCC) increased. In addition, the decline in EPS growth and the increase in Z-Score during the pandemic could mean that enterprises focused on reducing the risk of bankruptcy rather than maximizing value during the pandemic shock. Before the pandemic, CCC influenced DER, and during the pandemic, static indicators began to play a more important role in the financial strategies of the surveyed companies. The research results add to liquidity theory and its impact on shaping financial strategy, especially during a financial crisis. In addition, an analysis of the impact of liquidity on earnings per share (EPS) growth and Z-Score was conducted. They represent the creation of value and the assessment of the risk of bankruptcy, making this paper particularly insightful. The results obtained provide valuable guidance to decision-makers managing liquidity and debt in corporate finance.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00042024-03-19T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0001<abstract><title style='display:none'>Abstract</title> <p>Guarantee of autonomy and stability of economic subjects from the government can be considered an important gauge of state security. Due to the financial, migration and energy crisis, we can observe a notable increase of social problems, which gives more importance to the policy for social security of the population. In this article we address the ongoing problem of an excessively high number of debts owed to the Slovak Social Insurance Agency in recent years. The social security system for trade-licence holders, its financing and the method of enforcement are briefly characterised. The development of the payment/non-payment of taxes and levies to the Social Insurance Agency is tracked against the background of legislative changes. In the conclusion, the ineffectiveness of selected legal provisions and processes of exacting taxes and social security contributions is evaluated in terms of their impact on the financial disciplines of trade-licence holders in the Slovak Republic. Severity of the deficit in money collected on social insurance poses a threat in several areas, such as providing social security to all citizens in some required quality as guaranteed by the government, or sustainability of the public finance which poses a risk for the whole economic security of the country.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00012024-03-19T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0002<abstract><title style='display:none'>Abstract</title> <p>The study analyzes and assesses the economic and linguistic complexity of individual retirement products in Poland. For this purpose, an original multidimensional approach was used and various research methods were applied. We analyzed 75 out of 86 individual pension products (IKEs and IKZEs) offered in Poland in the first half of 2017, covering our analysis of nearly 90% of Poland’s market of individual pension products. We performed the nonparametric Spearman’s rank correlation analysis, we used hierarchical cluster analysis, analysis of variance, and a chi-square test to verify if there was a statistical relationship between the clusters and the type of financial provider and the type of individual pension product (IKE or IKZE). We also built also a map of the products that shows their economic and linguistic complexity. We find that high-fee products tend to have the most complex fee systems, suggesting that the complex fee system may be a strategy used by the providers of individual retirement products. Our results also indicate that individual retirement products are too complex for most individuals.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00022024-03-19T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0007<abstract><title style='display:none'>Abstract</title> <p>In this study, we aimed to investigate the financial implications of website performance on restaurant visitor traffic. It is crucial to address the current challenges faced by the restaurant industry, such as decreasing diner numbers due to rising prices, which can have a negative impact on the financial results of companies. Recognizing the significance of maximizing profitability, especially for small businesses operating in a highly competitive industry, we sought to explore the potential of website performance as a driver of increased visitor traffic and daily menu sales. We conducted a two-month field experiment in which we measured morning website visits and daily lunch menu sales for a restaurant with a slower website and one with a quicker website. However, we did not find any statistically significant increase in visits to the restaurant as a result of improving the website’s speed. We conclude that there may be other ways to improve daily menu sales beyond website speed. The restaurant industry is highly competitive, and small businesses in particular need to carefully consider how to allocate their resources in order to maximize profitability. The results of our study suggest that investing in website redesign as a means of increasing visitor traffic may not be the most effective tactic for small restaurants. Our research highlights the importance of conducting experiments and gathering data to inform decision making, as it can help small businesses in the restaurant industry to make more informed choices about how to allocate their resources. By understanding the factors that do and do not impact sales, small restaurants can make more informed decisions and achieve their business goals.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00072024-03-19T00:00:00.000+00:00https://sciendo.com/article/10.2478/fiqf-2024-0005<abstract><title style='display:none'>Abstract</title> <p>This study aims to investigate the effects of financial bootstrapping and government support on working capital, as well as the moderating role of entrepreneurial orientation towards the impact of working capital on financial performance. The study was conducted on 260 MSME owners in the food and beverage sector in Semarang, Surakarta, and Salatiga, in Central Java Province, Indonesia. By using a Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis, the determinant effects and consequences of working capital were determined. The findings of this study indicate that financial bootstrapping and government support are proven to have a significant positive effect on working capital. Working capital has a significant positive effect on financial performance, but entrepreneurial orientation is not confirmed to moderate the effect of working capital on financial performance.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/fiqf-2024-00052024-03-19T00:00:00.000+00:00en-us-1