ABSTRACT Why did the popping of the housing bubble bring the financial system—rather than just the housing sector of the economy—to its knees? The answer lies in two methods by which banks had evaded regulatory capital requirements. First, they had temporarily placed assets—such as securitized mortgages—in off‐balance‐sheet entities, so that they did not have to hold significant capital buffers against them. Second, the capital regulations also allowed banks to reduce the amount of capital they held against assets that (...) remained on their balance sheets—if those assets took the form of AAA‐rated tranches of securitized mortgages. Thus, by repackaging mortgages into mortgage‐backed securities, whether held on or off their balance sheets, banks reduced the amount of capital required against their loans, increasing their ability to make loans many‐fold. The principal effect of this regulatory arbitrage, however, was to concentrate the risk of mortgage defaults in the banks and render them insolvent when the housing bubble popped. (shrink)

With the rapid development of society, all walks of life need the support of the Internet of Things, and the financial industry is no exception. This article integrates blockchain technology with supply chain finance and builds a supply chain financial alliance architecture based on blockchain technology and an underlying model of the Ethereum blockchain system suitable for supply chain finance. We innovated new supply chain finance models and operating mechanisms and proposed business scenarios for supply chain finance from (...) the perspective of blockchain. Taking into account the actual operation of the blockchain supply chain financial platform, the principal-agent model and the incentive theory are applied, and the supply chain financial accounts receivable model is taken as an example in the case of complete information and incomplete information. The incentive mechanism between the service provider of the chain supply chain financial platform and the core enterprise promotes the better implementation of blockchain technology and supply chain finance. Based on the existing theoretical research, this paper identifies the key influencing factors of the supply chain’s cross-enterprise incentive mechanism. These influencing factors system includes two dimensions: transaction factors and relationship factors. Transaction factors include resource dependence, uncertainty, and cooperation experience; relationship factors include corporate reputation, trust level, and relationship commitment. Based on the nature of the incentive mechanism, information sharing and revenue sharing are extracted as the measurement dimensions of the supply chain’s cross-enterprise incentive mechanism. On this basis, this article draws on the existing enterprise life cycle division method and constructs a hypothetical model of the influencing factors of the incentive mechanism in the incubation period, the growth period, and the maturity period. Relevant data was collected through questionnaires, and SPSS and AMOS software were used to perform statistical analysis, reliability analysis, exploratory factor analysis, confirmatory factor analysis, and structural equation hypothesis testing on the data. The performance of each influencing factor in different stages of the enterprise’s life cycle and the importance of each influencing factor in the same life cycle stage are obtained. (shrink)

The quality of doctoral-level biochemistry (N=139), botany (N=83), cellular/molecular biology (N=89), microbiology (N=134), physiology (N=101), and zoology (N=70) programs at United States universities was assessed, using 16 measures. These measures focused on variables related to: (1) program size; (2) characteristics of graduates; (3) reputational factors (scholarly quality of faculty, effectiveness of programs in educating research scholars/scientists, improvement in program quality during the last 5 years); (4) university library size; (5) research support; and (6) publication records. Chapter I discusses prior attempts (...) to assess quality in graduate education, development of the study plans, and the selection of disciplines and programs to be evaluated. Chapter II discusses the methodology used, focusing on each of the assessment measures. Chapters III to VIII present, respectively, findings from the analyses of the biochemistry, botany, cellular/molecular biology, microbiology, physiology, and zoology programs. Chapter IX includes a summary of results, correlations among measures, several additional analyses, and suggestions for future studies. Among the findings reported are those indicating that cellular/molecular biology programs had, on the average, the largest number of faculty and that students in cellular/molecular biology, biology, biochemistry, microbiology, and physiology received a relatively high fraction of financial support. (Survey instruments and supporting documentation are included in appendices.) (JN). (shrink)

Gold has been used as money for many centuries in human history. In today's markets, it is observed that gold is subject to exchange transactions that are either similar to the ṣarf contract found in classical fiqh texts or much different and more complex than it. At this point, the question of how and in which category the current gold-related transactions will be evaluated in terms of Islamic law and the solution to this problem come to the fore. (...) In this article, Yusuf Erdem Gezgin's work titled " Gold Transactions in Financial Markets: A Review in Terms of Islamic Law", written on the subject, will be introduced. In this work, which he contributed to the literature, the author discussed gold transactions in financial markets. (shrink)

The amount of information that is produced on a daily basis in the financial markets is vast and complex; consequently, the development of systems that simplify decision-making is an essential endeavor. In this article, several intelligent systems are proposed and tested to predict the closing price of the IBEX 35 index using more than ten years of historical data and five distinct architectures for neural networks. A multi-layer perceptron was the first step, followed by a simple recurrent neural (...) network, a gated recurrent unit network and two long-short-term memory (LSTM) networks. The results of the analyses performed on these models have demonstrated a powerful capacity for prediction. Additionally, the findings of this research point to the fact that the application of intelligent systems can simplify the decision-making process in financial markets, which is a substantial advantage. Furthermore, by comparing the predicted outcome errors between the models, the LSTM presents the lowest error with a higher computational time in the training phase. The LSTM was able to accurately forecast the closing price of the day as well as the price for the following one and two days in advance. In conclusion, the empirical results demonstrated that these models could accurately predict financial data for trading purposes and that the application of intelligent systems, such as the LSTM network, represents a promising advancement in financial technology. (shrink)

Depositors have perceived banks as acting unethically during the most recent recession. One area of consternation is the ambiguity of the legal obligations entailed by the deposit contract when it is backed with only fractional reserves. In this article, we apply an existing analysis of the legitimacy and ethicality of banking practices to a wider range of financial transactions, including insurance policies, securities lending, perpetual bonds, and callable loans. Securities lending in particular creates rights violations analogous to those (...) in fractional-reserve banking. Both callable loans and perpetual bonds have clear legal obligations which are not inherently problematic, though we herein clarify what these obligations are. Finally, we apply our ethical framework to demonstrate that insurance products are distinct from banking deposit contracts, and that perceived parallels between the two products underestimate these differences. (shrink)

У статті розкрито роль фінансового моніторингу через аналіз основних показників діяльності центрального органу виконавчої влади в національній системі протидії легалізації коштів та фінансуванню тероризму - Державної служби фінансового моніторингу України.

There has recently been much debate about the idea of levying a tax on particular transactions on international financial markets. Economists have argued about how much revenue such an international financial transaction tax would raise and they disagree about what effects it would have on trade volumes, financial stability, and overall growth. Politicians have argued about the feasibility of introducing such a tax internationally and they disagree on its adequacy as a policy response to the current (...) financial and economic crisis. This article contributes to the debate about international financial transaction taxation by bringing the perspective of political philosophy to bear on the politicians’ and economists’ arguments about policy. I shall outline a framework for thinking about justice in finance, and defend the idea of an international financial transaction tax as an instrument for making the international financial system more just. (shrink)

In the spring of 2010, major newspapers in the U.S. announced arrival of a “recovery” from the economic recession precipitated by the 2008 financial crisis. This essay examines the biopolitics of recovery in the wake of the disaster capitalism of the financial meltdown, arguing that twentieth-century social welfare biopolitics that derived wealth from the populace have been replaced by new forms of financial power whose global circulations and convergences exploit wealth informatically and transactionally, rather than biopolitically, through (...) devices such as derivatives and technologies such a high-frequency trading. Carbon derivatives trading is used to illustrate how wealth can be generated informatically from a thanatopolitics of destruction. (shrink)

Fortis, the leading Benelux financial group, had been a success story of successive mergers of bank and insurance companies, with leadership in corporate social responsibility (CSR). One year after the acquisition of the major Dutch financial conglomerate ABN AMRO, the global financial crisis caused the collapse of the Fortis group. The purpose of this article is to use the case study of Fortis’s recent fall as a basis for reflective considerations on the financial crisis, from stakeholder (...) and ethical perspectives. A selected number of key events of the history of the dramatic crisis at Fortis will be analysed from different ethical frameworks. Special consideration will be given to fairness of communication, shareholder activism and conflicts of interests of CEO’s mergers opportunities. A confrontation between the CSR policy and the reality raises the fundamental questions why the powerful CSR guidelines and ethical principles did not help in the assessment of the risks. (shrink)

It is generally assumed that common stock investors are exclusively interested in earning the highest level of future cash-flow for a given amount of risk. This view suggests that investors select a well-diversified portfolio of securities to achieve this goal. Accordingly, it is often assumed that investors are unwilling to pay a premium for corporate behavior which can be described as socially-responsible.Recently, this view has been under increasing attack. According to the Social Investment Forum, at least 538 institutional investors (...) now allocate funds using social screens or criteria. In addition, Alice Tepper Marlin, president of the New York-based Council on Economic Priorities has recently estimated that about $600 billion of invested funds are socially-screened (1992). (shrink)

The purpose of the study is to present the author's accounting mechanisms in relation to the transaction costs of a manufacturing enterprise in relation to the financial, managerial and strategic aspects of this process. The scientific novelty of the research lies in the fact that the paper systematizes views on the existing accounting and analytical support in relation to transaction costs, offers various options for constructing accounting, management and strategic accounting of transaction costs, depending on the assessment available for (...) reflection. As a result, the recommended accounting approaches using accounting, management and strategic accounting of transaction costs are presented on the example of an industrial company. Since transaction costs occupy a significant share in the cost structure of business units engaged in production, it is necessary to organize their reflection using modern accounting principles. The complexity of the monetary assessment of such costs causes the complexity of the management process associated with their accounting. This publication is devoted to the problems of accounting, management and strategic accounting of transaction costs at a manufacturing enterprise. The use of an integrated approach based on accounting principles makes it possible to ensure control over transaction costs for solving urgent tasks of management and owners. (shrink)

Money markets are at the heart of financialized capitalism, as those markets that provide the funding liquidity needed for credit creation and leveraged trading. How have these markets evolved, grown, and become critical for larger financial flows? To answer this question, I distinguish an early period of financial globalization marked by regulatory arbitrage, offshoring, deregulation, and informal trading practices from a period of regime-consolidation marked by formal institutionalization. Concentrating on repo markets as the key funding sources for market-based (...) banking, I demonstrate that new institutional arrangements for these markets were initiated by private sector associations, but supported and authorized by public authorities. Bond trader groups codified new contractual arrangements and these were validated via reforms of bankruptcy codes and changes in central banks’ policy frameworks in the United States and European Union. Through these modifications and re-articulations in institutional conditions, transactions and large exposures on money markets became routine affairs—for shadow banking actors like money market funds as well as for commercial banks. The article concludes by discussing the continuity of regime-consolidation efforts after the transatlantic financial crisis and hypothesizes that they reveal “neo-patrimonial” features. (shrink)

Banks are expected to play a key role in assisting the real economy with the green transition process. One of the tools used for this purpose is the issuance of green bonds. We analyze the characteristics of banks that issue green bonds to understand: (i) which banks are more likely to resort to these funding instruments, and (ii) if the issuance of green bonds leads to an improvement in a bank’s environmental footprint. We find that large banks and banks that (...) had already publicly expressed their support for a green transition are more likely to issue green bonds. Conditional on being a green bond issuer, smaller banks tend to resort to green bonds in a more persistent manner and for relatively larger amounts, while larger banks issue green bonds on a more occasional basis and for smaller amounts. This heterogeneity is also reflected in our findings that only banks that issue green bonds more intensively improve their emissions and reduce lending to polluting sectors, thus contributing to the decarbonization of the financial sector. (shrink)

Stakeholder theory provides a framework for investigating the relationship between corporate social performance (CSP) and corporate financial performance. This relationship is investigated by examining how change in CSP is related to change in financial accounting measures. The findings provide some support for a tenet in stakeholder theory which asserts that the dominant stakeholder group, shareholders, financially benefit when management meets the demands of multiple stakeholders. Specifically, change in CSP was positively associated with growth in sales for the current (...) and subsequent year. This indicates that there are short-term benefits from improving CSP. Return on sales was significantly positively related to change in CSP for the third financial period, indicating that long-term financial benefits may exist when CSP is improved. (shrink)

Observations from the Point of View of the Relationship between Economy and EthicsThe main goal of this review is not to discuss the different lectures one by one in order of appearance. In my opinion, it will be much more interesting to analyze the symposium thematically. First, I will discuss the way in which the problem of external debt as such has been presented. Secondly, I will focus on the different points of view from which the problem has been discussed. (...) Finally, I will reflect on the different arguments that have been formulated.The problem of external debt as such was presented by Prof. Garcia . He provided a detailed factual analysis of the problem, well illustrated and presented in its different aspects. Via official figures he showed the implications of external debt for the Third World countries as well as for the First World countries. What are the economic implications for both parties? For HIPC countries, the amount of total debt is situated between 200 and 300 percent of their annual export value and between 3 and 6 times their total annual GNP. For First World countries on the other hand, the cost of debt cancellation is equal to 1/6 of the UK military budget, to one-year's expenditure on cinema in the USA, or to one-year's expenditure on chocolate in the UK.On the social level he points to the following: nowadays, payments by the southern countries, corresponding to the external debt, are four times the official development aid sent by the northern countries. As a result of these payments, public expenditure on basic goods and services for the poorest population of the world is dramatically reduced. From a political point of view this means that the poorest and most excluded people of the world are paying the price for contracted loans about which they did not have anything to say. These were decisions made by the elites and most of the time guided by bad management or even by corruption. The poorest people have never benefited from these decisions, but at present they are undergoing the consequences of the debt. Garcia also shows that the problem of external debt in the South is not a matter of private, commercial affairs, but a matter of the public sector and of social justice. This means that debts are an issue of international politics and debt reduction a matter of international political willingness. (shrink)

The pro tanto duty not to harm is arguably the most widely accepted basis for moral demand. However, in the case of global poverty, even if we accept that individual members of wealthier nations are responsible for harming the global poor (through their constitution of, or participation in or with, global institutions that harm), it remains difficult to claim that individuals violate a negative duty in doing so. For an agent to hold a duty, that duty must be at least (...) (a) recognizable to a reasonably competent observer, and (b) fulfillable, two criteria which do not appear to be met. This paper argues that we have misunderstood the way in which the global community harms the global poor. As a result, there are a range of acts—the provision of financial aid—which the global community largely fails to undertake and which form a part of violating the negative duty not to harm. In relation to these global acts, it is straightforward for individuals both to recognize what they would need to do to avoid participating in the harm of global poverty and to achieve that avoidance: individuals simply need to provide financial aid. As such, assuming that individuals are culpable for the harms committed by intersecting global institutions, then their participation in harm also violates a negative duty not to inflict such harm. This opens up a further remedial duty to provide financial aid for past harms committed. (shrink)

Regulation is often applied to business behavior to ensure that the social costs of doing business are included in the cost and pricing structures of the firm. Because the consumer benefits from the transaction that generated the social costs, asking the consumer to bear the burden imposed by the transaction is fair. However, there may be a lack of Justice m the internal and external distribution of the social costs of doing business if consumers are the only party bearing that (...) burden, or if the costs are being shifted to employees or taxpayers when a closer stakeholder is also benefiting from the transaction – the stockowner. A social justice perspective requires that those benefiting from a transaction share in the burdens of it. We propose that a Tobin-like tax on stock transactions might be a just means of achieving greater justice in the distribution of the social cost burden. (shrink)

The current global economic crisis is historically unprecedented in that it began when poor groups in the United States defaulted on their mortgage-payments and spread fear of 'toxic debt' through an internationalised financial system, bringing the banking system close to collapse and highlighting the very individualised nature of contemporary financial relations. The symposium explores contemporary finance and banking practices in the context of Marxist political economy seeking to develop the notion of financialisation and arguing that banks' increasing reliance (...) on individual households as a source of profits amounts to a form of financial expropriation or additional profit generated in the sphere of circulation. (shrink)

Money is a symbol. Beginning with this simple notion, we have completed a qualitative study of how money exists in people’s everyday lives and how it is used symbolically. A review of the financial, economic, psychological, and semiotic literature shows that even though money is written and talked about exhaustively, little symbol theory appears in economic writing, and we rarely found money mentioned in semiotic texts. We used a qualitative, phenomenological approach to identify critical thematic elements and underlying structures (...) of participants’ experience. We also incorporated an accepted symbol-structure template in our analysis of the functions, emotions, actions, and reactions in the transactions our participants described. Participants refer to money both as wealth in the abstract and as concrete amounts about to be used. Our analysis of money in the abstract describes a structure of experience involving belonging, privacy and secrecy, unequal distribution, quantitative uncertainty, reflections of life history, and values. Our analysis of money in the concrete reveals a symbolic intention and a variety of “Others” engaged in the symbolic action. (shrink)

This study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies. It is found that even after the announcement of Taiwan’s No. 34 and No. 36 bulletins, there are still some problems that are needed to improve in the disclosure of derivative financial product investment information (...) by Taiwan’s listed companies, at least in the disclosure of the reasons for this conduct which is still insufficient. In this study, two-stage regression analysis method is applied to empirical analysis, and it is found that hedging activities are related to corporate characteristics, such as expected financial crisis costs, corporate size, equity issues, growth investment opportunities, and information asymmetry. In the investment of derivative financial products, enterprises should evaluate their own financial characteristics as a reference for the risk avoidance decision. At the same time, it is necessary to investigate different natures of hedging tools used in appropriate risk categories, so as to fully achieve the hedging effect and maximize the hedging benefits. This study also found that companies with higher growth investment opportunities, larger size, and higher financial crisis costs will tend to use derivative financial products for hedging. As for the impact of other industries, it is found that the electronic and electrical machinery industries are more active than other industries in hedging behaviors of undertaking derivative financial products’ transaction. (shrink)

Anglo-Swedish scholarly correspondence from the mid-eighteenth century contains repeated mentions of two merchants, Abraham Spalding and Gustavus Brander. The letters describe how these men facilitated the exchange of knowledge over the Baltic Sea and the North Sea by shipping letters, books and other scientific objects, as well as by enabling long-distance financial transactions. Through the case of Spalding and Brander, this article examines the material basis for early modern scholarly exchange. Using the concept of logistics to highlight and (...) relate several mercantile practices, it examines ways of making scholarly knowledge move, and analyses merchants’ potential motives for offering their services to scholarly communities. As logisticians in the Republic of Letters, these merchants could turn their commercial infrastructure into a generator of cultural status valid in both London and Stockholm. Using mercantile services, scholarly knowledge could in turn traverse the region in reliable, cost-effective and secure ways. The case of Spalding and Brander thus highlights how contacts between scholarly communities intersected with other contemporary modes of transnational exchange, and it shows how scholarly exchange relied on relationships based on norms different from the communalism often used to characterize the early modern Republic of Letters. Thus the article suggests new ways of studying early modern scholarly exchange in practice. (shrink)

Many different but related arguments developed in the Caritas in Veritate converge on one central, yet not clearly stated, conclusion or thesis: economic and business activities are ‘incomplete’. This article will explore the above-mentioned ‘incompleteness’ thesis or argument from three different perspectives: the role, the practice and the purpose of economic and business activities in contemporary societies. In doing so, the paper will heavily draw on questions and, still not fully learned, lessons derived from the present financial and economic (...) crisis. Caritas in Veritate provides an appealing moral framework in which many of these lessons take a deeper sense and a more comprehensive meaning. The notion of ‘incompleteness’ is applied here to economic and business theory and practice in the sense derived from Gödel’s theorems. They state in terms of logical and mathematical demonstrations that no system of axiomatic statements can provide a proof of its own consistency. Such a proof requires the use of statements belonging to another (higher) level system. In the case of economics or business theory and practice these ‘higher level’ statements are value judgments. By stressing the importance of ethics and moral philosophy for daily life, Caritas in Veritate strongly reminds us that neither economy nor business are self-sufficient either in organisational and social, practical or moral terms. (shrink)

Modern payment cards encompass a bewildering array of consumer technologies, from credit and debit cards to stored-value and loyalty cards. But what unites all of these financial media is their connection to recordkeeping systems. Each swipe sends data hurtling through invisible infrastructures to verify accounts, record purchase details, exchange funds, and update balances. With payment cards, banks and merchants have been able to amass vast archives of transactional data. This information is a valuable asset in itself. It can be (...) used for in-house data analytics programs or sold as marketing intelligence to third parties. This research examines the development of payment cards in the United States from the late 19th century to present, drawing attention to their fundamental relationship to identification, recordkeeping, and data mining. The history of payment cards, I argue, is not just a history of financial innovation and computing; it is also a history of Big Data and consumer surveillance. This history, moreover, provides insight into the growth of transactional data and the datafication of money in the digital economy. (shrink)

Islamic family law plays a significant role in minimizing the unpleasant effects of the family break up faced by the divorced women and their children by protecting their rights to financial support after divorce. This study undertakes to discuss the historical development of the financial rights after divorce applicable among the Muslims in the pre and post colonial periods, particularly with reference to the iddah maintenance, mut’ah, arrears of maintenance, and child maintenance. The study indicates that despite the (...) provisions were inconformity with the Islamic principles, the applications were restricted and influenced by the Shafi’i madhhab. However, the amount of iddah maintenance and mut’ah were substantial taking into account the standard of living of the Malay society in the 15th and 16th century. This means that the welfare of the divorced women was taken care of since the codification of the Islamic law and its implementation in the Malay society. (shrink)

Traditional corporate finance endorses the principle of stockholder wealth maximization as the purpose of business. In light of recent scandals and legislation, businesses are increasingly expected to use financial resources in a manner which benefits society and not just the owners of the firm. This imputation of a corporate soul will necessarily reduce investor returns, which has at least two major financial implications for the firm and the economy. The first is that it may cause investors to change (...) their required rates of return and thereby change the amount of capital available to firms, and the economy. The second is that it may implicitly replace equity with debt in the capital structure of firms, with all that implies for financing and corporate governance. The purpose of this article is to examine these implications and evaluate their sometimes counterintuitive consequences. (shrink)

In recent years, there has been an increasing interest in thedevelopment of ontologically well-founded conceptual models for Information Systems in areas such as Service Management, Accounting Information Systems and Financial Reporting. Economic exchanges are central phenomena in these areas. For this reason, they occupy a prominent position in modelling frameworks such as the REA (Resource-EventAction) ISO Standard as well as the FIBO (Financial Industry BusinessOntology). In this paper, we begin a well-founded ontological analysisof economic exchanges inspired by a (...) recent ontological view on the nature of economic transactions. According to this view, what counts asan economic transaction is based on an agreement on the actions thatthe agents are committed to perform. The agreement is in turn based on convergent preferences about the course of action to bring about. This view enables a unified treatment of economic exchanges, regardless the object of the transaction, and complies with the view that all economictransactions are about services. In this paper, we start developing our analysis in the framework of the Unified Foundational Ontology (UFO). (shrink)

The paper deals with Forward exchange contracts and Swap exchange contracts, These two types of contracts are among the most prominent types of financial derivative contracts that arose after the collapse of the Bretton Woods system in 1971 or the so-called Nixon shock, where the convertibility of the dollar into gold was stoped, which led to turmoil in the exchange rates of the currencies of many countries and the emergence of the need to stabilize the exchange rate Currencies in (...) transactions where the delivery of the two exchanges is delayed. This research has studied forward exchange contracts and swap exchange contracts in four sections. The first section defines the Forward exchange contract, which is a contract in which the two parties commit to exchange a specified amount of foreign currencies on a forward date, at a price agreed upon in advance. The elements and elements that must be mentioned in this contract, such as the seller and buyer, the size of the contract, the date of delivery and the forward exchange rate, were mentioned in this section, with an illustrative example of the mechanism of conducting this contract. In addition to addressing the differences between forward exchange contracts and future exchange contracts, the characteristics of forward exchange contracts and the purposes of those dealing with them from hedging and speculation are mentioned in this section. The second section has been devoted to the definition of swap exchange contracts, it is for the two parties to the contract to agree that one of them buys from the other a specific amount of a currency in exchange for a specific amount of another currency and at the current exchange rate, provided that the two exchanges are delivered immediately, and in the same contract, the two parties agree to make a forward reverse exchange contract, at a price determined within Contract, and to clarify the picture of swap exchange contracts, an example has been given to illustrate the mechanism for conducting this type of contract. In the third section, the views of contemporaries scholars regarding the İslamic law of the forward exchange contract were discussed, where the opinion of the objectors was mentioned at all and the evidence they inferred from it. And then the opinion of those who advocate the permissibility of forward exchange contracts that are in the form of a dating that is not binding on both parties together, provided that there is nothing in the dating that indicates that it is a contract of sale and provided that a new contract is delivered independent of the dating. Then I discussed the opinion and evidence of the impediments in four points, and I concluded that the most correct opinion at the first is the impermissibility of the forward exchange contract in the form such as the traditional banks do it because of the deception it contains. But I recanted and permitted this type of contract in two cases, the first: the case of need with the absence of an alternative, and the second: the case that transaction is not binding dating for both parties and on some terms. Some contemporary scholars suggested conducting buying and selling operations in the same currency as an alternative to forward exchange contracts, and some of them suggested that Islamic banks should have a common unit of account to settle accounts between the parties to commercial transactions. But in my opinion two solutions are often not feasible. As for the fourth section, I dealt with the opinions of contemporary scholars in the swap exchange contract. it seems likely to me that swap currency exchange contracts are nothing but a usurious loan that is prohibited by Sharia. Because when examining the mechanism of conducting this type of contract, it turns out that one of the parties lent the other an amount in one currency in exchange for the other lending him an amount in another currency under the name of the spot exchange contract. Since one of the two parties requires the other to increase what he lent - if the exchange rate of the Forward exchange contract is different from the Spot exchange rate, which is predominant - under the name of the Forward exchange contract, then this process is nothing but a usurious loan. I supported the proposal to exchange loans in different currencies as a İslamic alternative to transaction contracts, provided that there is no preference for one party over another, and there is no usurious increase. And in order to solve the problem of the high rate of currency inflation of one of the two loans more than the other, the researcher suggested adding the inflation rate to the two loans when they are performed. (shrink)

England, known as “the empire without sun settling down” and being among the final winners of the World War I (1914-1918), had one of the heaviest defeats of its history against the Ottoman Empire in the Kut al-Amara, which happened on 29 April 1916 close to Baghdad. Following the defeat of Kut al-Amara, which was the most important war trauma for England during the World War I, the Turks and Germans, as winner side of the battle were evaluated by British (...) prisoners from military, political, cultural and socio-psychological aspects in their memories. Content analysis method is used in the article for qualitative evalution of the data related to the Turkish and German image reflected in the memories of British prisoners after the siege of Kut al-Amara. The alliance between Turks and Germans is regarded as contrast in terms of important elements as national and ethnic identity, language, religion and culture in the main sources of the research as My Compain by Charles Townshend, Besieged in Kut and After by Barber, A Kut Prisoner by Bishop, In Kut and Captivity with the Sixth Indian Division by Sandes, The Secrets of a Kuttite by Mousley which occationally use exaggerated language and the subjective information due to the impact of traumatic defeat.Summary: Being a heroic epic in the war history of Turkey, Kūt al-‘Amāra has been the subject of very fewer researches until recently, despite its importance in Turkey’s history. This argument is supported by the fact that the memoirs by Ottoman soldiers related to the WWI, which also encompass information about Kūt al-‘Amāra, were published half a century after the war at the earliest. Unlike the records of Turkish soldiers participating in Kūt al-‘Amāra, the memoirs and the war diaries of British soldiers were published shortly after the war, as early as possible, between the years of 1918-1921. The authors of these memoirs and war diaries informed the public on the reasons for the defeat of Kūt al-‘Amāra on the one hand, and on the other hand created the Ottoman and Turkish image which was concidered differently in the British society in terms of culture and civilization. They also strengthened this image over that of German’s, with whom they shared many common values despite the fact that they represented the opposite fronts of the war.It is worthy mentioning that the role of the Ottoman army in the victory of Kūt al-‘Amāra was highly underestimated by the memoirs of the British prisoners. According to the authors, it is not the Turkish army that has achieved real victories over the British, but Germany’s support, notably General von der Goltz, the great strategist of Europe. The effects of bad weather conditions and geographical situation are also emphasized among the reasons of the defeat of Kūt al-‘Amāra. Consequently, the success of the Turkish army in the victory of Kūt al-‘Amāra was ignored, except for the role of Halil Pasha. The image of an army that knows the trench and defence techniques well, but fails to attack is one of the prominent evaluations in the memoirs related to the Turkish military characteristics.The British prisoners of war, who evaluate the Turkish and German image through the economic and political situation, draw a very desperate picture of the situation of the Turks in the mentioned areas. According to this image, corruption and bribery prevails at every stage of the Turkish government. The Turks are unable to repay their dept to Germany, which dominates the economy of the country completely. According to these records, besides ordinary people, the army is also facing great difficulties in meeting basic requirements. To convert the Ottoman Empire into their own property and keep the Turks under their control in military, economic and political spheres, the Germans lend a high amount of money.On the basis of Turkish soldiers encountered in Kūt al-‘Amāra, the British prisoners characterizes the Turks as physically large, hard and strong-bodied people. The authors also note that the Turks are not as cold-blooded, calm and obedient as they seem at first sight, rather they become rude people when they get angry. Another feature that British prisoners evaluate as a potential of the Turks, is their childish spirit. In as much as they are happy with small things and can be offended by small things. According to the memoirs, the Germans should not be allowed to benefit from these characteristics of the Turks, but the British should take the advantage of their potential power.The moral characteristics of the Turks and the Germans are among the most emphasized subjects. Written in exceptional time such as war, sometimes the diaries include exaggerated and sentimental phrases related to the moral attitudes enemy soldiers exhibited during siege, as well as captivity. Turks are regarded as negligent and careless rather than cruel or ruthless. They owe these characteristics to their Eastern identity, which is different from the Europeans having virtues such as task responsibility and diligence. The moral characteristic of the Turks regarding the duty, responsibility and kindness is evaluated comparatively with the civilized and humanistic behaviors of the Germans towards the prisoners. Being Europeans, the Germans often come to the fore because of their more polite treatment towards the British prisoners. Although the Germans as an enemy fought against the British on the front, they were kind to them in the Ottoman territories as the only civilized people among the barbarian peoples of the East.The Turks and the Germans are compared in the field of education, as well as other areas of development. The authors emphasize that the education level of the Turks is very low; Armenian and Greek subjects of the Empire are its brain and financial resources, which is the reason why the Turks are anxious about them. The Germans have the superiority in both transportation and communication technology in the Ottoman territories. One of the reasons they had a huge investment on the Ottoman territories is the Berlin-Istanbul-Baghdad-Basra railway. The British prisoners give details on the German communication technology they encountered during both the battle and the captivity days in Anatolia. In addition to the transport and communication technology, they also record much German-made military equipment, from weapons to maps.Evaluating the Turks and the Germans as opposites, the British prisoners draw an image for the latter, with whom they share a common cultural legacy, as a fully equipped enemy in terms of technology and strategy on the front, and the civilized Europeans characterized with their virtue in non-war situations. On the contrary, the Turks are described as a strong defender and daredevil soldiers on the front line, but strategically weak on the front. In terms of duties and responsibilities, the Turkish soldiers are presented with negligent and irresponsible approach towards their prisoners. The images of the Turks and the Germans, which are compared by the British prisoners, are often based on their Eastern and Western identity. The Turks symbolize the East with economic, political and cultural backwardness, yet quite the contrary, the Germans symbolize the West in terms of development, modernity and civilization. The British prisoners sometimes used exaggerated expressions in their approaches regarding both sides, as well as different details in terms of information and interpretation about the same event, due to the trauma of defeat. (shrink)

Creative accounting involves accountants in making accounting policy choices or manipulating transactions in such a way as to convey a preferred and deliberately chosen impression in the accounts. Although it is regarded as unethical by most observers, a defense of creative accounting can be based on the assumption that users of accounts can identify bias in accounting policy choices and make appropriate adjustments. In this paper we take the example of the Barcelona Football Club where the club management made (...) three key accounting policy choices that resulted in the presentation of a favourable position, and a supporters club presented an alternative report choosing three alternative accounting policies that presented an unfavourable position. We presented each of these financial reports to one of two groups of Spanish bank loan officers: we found that the more favourable set of accounts was significantly more likely to attract a positive response to a loan request. This result undermines the validity of defending creative accounting based on the argument that accounts users can identify manipulation. (shrink)

Creative accounting involves accountants in making accounting policy choices or manipulating transactions in such a way as to convey a preferred and deliberately chosen impression in the accounts. Although it is regarded as unethical by most observers, a defense of creative accounting can be based on the assumption that users of accounts can identify bias in accounting policy choices and make appropriate adjustments. In this paper we take the example of the Barcelona Football Club where the club management made (...) three key accounting policy choices that resulted in the presentation of a favourable position, and a supporters club presented an alternative report choosing three alternative accounting policies that presented an unfavourable position. We presented each of these financial reports to one of two groups of Spanish bank loan officers: we found that the more favourable set of accounts was significantly more likely to attract a positive response to a loan request. This result undermines the validity of defending creative accounting based on the argument that accounts users can identify manipulation. (shrink)

Financial ties between physicians and pharmaceutical companies are pervasive and controversial. However, little is known about how patients perceive such ties. This paper describes an experiment examining how a national sample of U.S. adults perceived a variety of financial relationships between physicians and drug companies. Each respondent read a single scenario about a hypothetical physician and his financial ties to the pharmaceutical industry; scenarios varied in terms of payment type of and amount. Respondents then evaluated the (...) physician on several dimensions . Findings revealed that perceptions of the physician were more strongly influenced by payment type than by payment amount. Specifically, respondents were quite critical of doctors who owned drug company stock or received industry payments for meals and lodging, but were more forgiving of physicians who received free drug samples or consulting fees . Interestingly, physicians who received no payments, while seen as honest, were also viewed by some respondents as inexperienced or uninformed about new treatments. Implications for public policy and future research are discussed. (shrink)

Financial relationships and business transactions between physicians and the health care industry are common. These relationships take a variety of forms, including payments to physicians in exchange for consulting services, reimbursement of physician travel expenses when attending medical device and pharmaceutical educational conferences, physician ownership in life science company stocks, and the provision of free drug samples. Such practices are not intrinsic to medical practice, but as the Institute of Medicine described in its 2009 report, these relationships have (...) the potential to produce positive collaborations that improve patient care and public health, and most physicians view it as “ethically proper to accept items ranging from drug samples to a lucrative consultantship.”However, financial relationships between physicians and pharmaceutical, medical device and biotechnology companies can also create negative influences on physician judgment that compromise patient care and jeopardize the public’s trust. (shrink)

This paper uses the bankruptcy proceedings for Enron to discuss the role of financial institutions in business transactions. Using recent work by Dixit a business transaction is portrayed as a prisoners' dilemma problem between competing firms. The financial institution's role in this world is to provide information and enforce contracts so that the parties to the business deal act cooperatively. This role is recognized in the law under the heading of Fiduciary Responsibility. In the Enron case the (...) bankruptcy examiner has argued that the Tier 1 financial institutions for Enron failed to carry out their fiduciary responsibility. As a result, the examiner has asked a fact finder to subordinate the claims of the Tier 1 financial institutions to other debt holders for Enron. (shrink)

Ethics has been identified as an important factor that potentially affects auditors’ professional skepticism. For example, prior research finds that auditors who are more concerned with professional ethics exhibit greater professional skepticism. Further, the literature suggests that professional skepticism may lead the auditor to more vigilantly resist the client’s position in financial reporting disputes. These reporting disputes are generally resolved through negotiations between the auditor and client to arrive at the final reported amounts. To date, the role that professional (...) skepticism potentially plays in the negotiation process has been relatively unexplored. The literature prior to the enactment of Sarbanes–Oxley (SOX) suggests that auditors are more likely to approve a client position when the matter in dispute is relatively ambiguous and when changing the client’s position will result in the client failing to meet analysts’ expectations. However, changes resulting from SOX have led auditors to be more vigilant and therefore results found in the pre-SOX environment may not hold in the current environment where auditors are held more accountable for their actions. Results from an experiment with experienced audit managers and partners suggest that in the post-SOX climate, auditors’ negotiations do not appear to be substantively influenced by management being able to meet or beat forecasts. Moreover, we find that when auditors exhibit heightened professional skepticism, they are more ethical by being conservative and they stand more resolute than when auditors do not exhibit heightened professional skepticism. Finally, although we do not find a main effect for the influence of earnings forecast, we do find a significant interaction between earnings forecast and heightened professional skepticism. Implications for practice and research are then presented. (shrink)

This article starts with the analysis of the existing electronic commerce system, summarizes its characteristics, and analyzes and solves its existing problems. Firstly, the characteristics of the relational database My Structured Query Language and the distributed database HBase are analyzed, their respective advantages and disadvantages are summarized, and the advantages and disadvantages of each are taken into account when storing data. My SQL is used to store structured business data in the system, while HBase is used to store unstructured data (...) such as pictures. These two storage mechanisms together constitute a data storage subsystem. Secondly, considering the large amount of data in the e-commerce system and the complex calculation of the data mining algorithm, this paper uses MapReduce to realize the parallelization of the data mining algorithm and builds a Hadoop-based commodity recommendation subsystem on this basis. We use JavaEE technology to design a full-featured web mall system. Finally, based on the impact of cloud computing, mobile e-commerce is analyzed, including relevant theories, service mode, architecture, core technology, and the application in e-commerce, which can realize e-commerce precision marketing, find the optimal path of logistics, and take effective security measures to avoid transaction risks. This method can avoid the disadvantages of the traditional e-commerce, where large-scale data cannot be processed in a timely manner, realize the value of mining data behind, and realize the precision marketing of e-commerce enterprises. (shrink)

The purpose of the study is to analyze the scale of development of the shadow economy in the construction sector during the pandemic. The article presents the dynamics of shadow financial transactions in the construction industry in the period 2020-2021. The scientific novelty lies in forecasting the development potential of the shadow economy in a pandemic, including the construction sector of the economy. As a result, it was revealed that in the structure of the branches of the Russian (...) economy that formed the demand for shadow financial services during the pandemic, the construction sector is in the first place. An analysis of the growth rates of construction works in 2020-2021 showed that anti-pandemic restrictive measures still slowed down the positive dynamics in the construction sector. Reducing the volume of the shadow economy in the construction sector must be carried out comprehensively, including, on the one hand, identifying the benefits of leaving the "shadow sector", while improving, on the other hand, official institutions. (shrink)

Financial modelling is an essential tool for studying the possibility of financial transactions. This paper argues that financial models are conventional tools widely used in formulating and establishing possibility claims about a prospective investment transaction, from a set of governing possibility assumptions. What is distinctive about financial models is that they articulate how a transaction possibly could occur in a non-actual investment scenario given a limited base of possibility conditions assumed in the model. For this (...) reason, it is argued that the epistemic contribution of financial models is that of enabling the model users to envision exactly how a prospective investment could be achieved in various ways through a detailed understanding of the available transaction mechanisms. Thus, financial models provide information about the possibility of an investment scenario by showing how a specific transaction mechanism could result from a small set of initial possibility conditions assumed in the model. (shrink)

The globalization movement in recent decades has meant rapid growth in trade, financial transactions, and cross-country ownership of economic assets. In this article, we examine how the globalization of national business systems has influenced the framing of corporate social responsibility (CSR). This is done using text analysis of CEO letters appearing in the annual reports of 15 major corporations in Sweden during a period of transformational change. The results show that the discourse about CSR in the annual reports (...) has changed from a national and communitarian view of social responsibility (cf. a negotiated view of CSR) toward an international and individualistic view of social responsibility (cf. a self-regulating view of CSR). The article contributes theoretically (1) by adding a national–global dimension to previous conceptualizations of CSR and (2) by showing that the rise of CSR discourse and activities in the last 10 years does not have to imply an increased commitment and interest in corporate responsibility per se, only that there are increased societal expectations that corporations should develop the capability to act more independently as moral agents. (shrink)

Socially responsible investors buy financial securities with two goals: to make a market-based return, and to make companies act in a more socially responsible way. Most research on socially responsible investment deals with investing in stocks traded on major exchanges. We add the case of loaning small amounts of funds to microentrepreneurs through a discussion of a particular case. The case is that of Calmeadow which, in conjunction with the Royal Bank of Canada, set up a microlending project in (...) rural Nova Scotia (Canada). Using Hirschman’s analysis of “exit” and “voice”, we show that while socially responsible investors may make market-based returns for their investments in stocks traded on major exchanges, they have no effect on corporate behaviour because their action consists of exit, and they are easily replaced by other investors. They attain their first goal but not their second. On the other hand, in the Calmeadow/Royal Bank of Canada case, we see that those who lend money to microenterprises can more easily use voice. The relative power difference between the lender and the microentrepreneur enables the lender to make the microentrepreneur act in a more socially responsible way, although only marginally. But because of the market imperfections existing in this case (the very high transactions costs associated with administering small loans), the lender concluded it could not attain a market rate of return. In this case, then, the lender attained its second goal but not its first. (shrink)

This paper sets out a framework for understanding the impacts of the financial crisis and its aftermath that is based on the idea of three interacting spheres: finance, production and reproduction. All of these spheres are gendered and globalised. The gendered impact of the current crisis is discussed in terms of the impact on unemployment, employment protection and security, public sector services, social security benefits, pensions, and the real value of wages and living standards. Drawing on the analysis of (...) the UK Women's Budget Group, the paper demonstrates that the biggest falls in disposable income as the result of austerity policies by the Conservative-led government since 2010 have been borne by the most vulnerable women—lone mothers, single women pensioners and single women without children. Working-age couples without children have been least affected. The paper then goes on to discuss what an alternative economic strategy, based on feminist political economy, might look like. It utilises the notion of the ‘reproductive bargain’, first developed to understand the transition in Cuba in the 1990s. It sets out a possible feminist economic strategy that insists on the incorporation of reproductive and care work into the analysis of alternative economic policies and links employment, wages and social security payments to public provisioning of trans-generational reproductive services. It suggests feasible strategies to finance the proposed Plan F—a feminist economic strategy. (shrink)

We can calculate financial fraud, but how do we measure bad faith? How can we evaluate the words of the pharmaceutical industry or of eco-scientific ideologies, or the subtle deception found in political scheming? Henri Atlan sheds light on these questions through the concept of _ona'ah_, which in Hebrew refers to both fraud in financial transactions and the verbal injury inflicted by speech. The world of _ona'ah_ is a world of an "in-between," where the impossible purity of (...) absolute Platonic truth gives way to a more relative notion—the near-theft, the quasi-lie. Today it seems that no discourse is safe from fraudulent excesses, be they intentional or no. As both philosopher and biologist, Atlan works on several registers. He forges links between the Talmud, the Kabbalah, and the big questions of our time, multiplying the bridges between science, philosophy, and current ethical dilemmas. In a context of financial and moral crises that appear to be weakening our democracies, Henri Atlan's work allows us to rethink the status of fraud in the contemporary world. (shrink)

This Article discusses the impact of the international financial crisis on Brazilian capital markets. While the banking industry was not severely affected, leading nonfinancial corporations experienced severe financial turmoil. Two Brazilian corporations cross-listed in the United States - Sadia S.A. and Aracruz Celulose S.A. - suffered billion-dollar losses when the Brazilian real unexpectedly plummeted in relation to the dollar. Despite earlier disclosure that these companies had engaged only in pure hedging activity, these great losses were found to be (...) the result of their highly speculative trading in currencyderivatives. Consequently, several private lawsuits were filed both in the United States and in Brazil. This Article takes a novel approach to the transnational securities litigation debate by examining the particular consequences of private litigation in a developed and in an emerging country. It compares the types of lawsuits filed and their final outcomes. Despite substantially similar alleged wrongdoing, the outcomes for securities holders in each jurisdiction contrast strikingly. Only U.S. investors of both companies were able to obtain substantial financial recoveries; Brazilian investors obtained none. This Article examines the reasons behind these discrepant results and the consequent economic distributional effects on global securities markets after the U.S. Supreme Court decision in Morrison. The Article argues that Morrison aggravates such shareholder cross-border non pro rata compensation and transfers of company value from foreign to U.S. investors. It identifies a set of costs borne by foreign investors, and so far neglected by scholars, as a consequence of the current status of U.S. and international securities law regimes. These costs are the result not only of the typical “circularity problem” in securities litigation, but also of a “double circularity problem” as they fall on foreign shareholders who also suffered equivalent damages to those experienced by the U.S. class being compensated. The Article then discusses potential policy reforms for fixing transnational securities litigation. (shrink)

The Organization Department of the Communist Party of China announced the Opinions on Further Regulation on Party and Political Leaders and Cadres Working Part-Time in Enterprises to force the resignation of government officials holding the position of independent director in listed companies. This paper empirically examines the impact of the GID resignation on firm performance using a difference-in-differences model, which is an exogenous event with a “natural experiment.” The study finds that after the promulgation of the Opinions, firms that lose (...) some of their political resources and their corporate performance decreases significantly compared to firms that do not experience GID resignations. A good external governance environment, while somewhat weakening, is not sufficient to offset the negative impact of the loss of political resources on firm performance. This paper further explores the mechanism by which the GID resignation affects firm performance: one important way in which the resignation of GIDs cause the loss of political resources on which the firm's development depends is that the loss of the firm's tax benefits after GID resignation directly leads to a decline in performance; it also leads to a reduction in the firm's financial subsidy income and a reduction in the amount of bank loans, but both of these do not have a significant effect on the decline in firm performance. The study suggests that GIDs play more of a resource-providing “official” role than an “independent director's” supervisory and advisory role in Chinese listed companies. The findings of this paper reveal the phenomenon of “Political-Business Spin” in China, which has some implications for developing countries, represented by China, to improve the independence of the board of directors and the corporate governance. (shrink)