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This article examines public–private partnership as an effective mechanism in the investment market. It also analyzes the advantages of PPP in comparison with budget-investment projects. The author provides the main problems of PPP projects implementation and suggests ways to solve them.

This study investigates the effect of the COVID-19-induced decline in economic activities on the financial and social efficiency of microfinance institutions (MFIs). We find that the pandemic-induced impact decreases the financial efficiency of MFIs; however, the social efficiency of MFIs is increased under the impact of COVID-19. To explore potential channels through which efficiency is influenced by the COVID-19 outbreak, we examine the supply and demand side of MFIs’ funding. We find that the lending rate mediates the relationship between the impact of COVID-19 and MFI efficiency, whereas the mediating role of the funding rate is negligible.

Semi-intensive prawn farming is currently facing difficulties in both the production and consumption processes. Climate change and an unstable output market are the main causes affecting the investment efficiency of semi-intensive prawn farming. The authors carry out the study to evaluate the financial efficiency of semi-intensive prawn farming in My Xuyen District, Soc Trang Province. Research data are collected from 100 households raising prawns. The research results show that, with an average investment cost of 19.8 million VND/1000m2/crop, farmers may earn a profit of 6.5 million VND/1000m2/crop, and the profit margin achieved reaches 0.25 times. Therefore, the model of semi-intensive prawns achieves high financial efficiency and brings a great income for prawn farmers.

This paper explores financial and social efficiency in one assessment framework. In order to measure efficiency level of Islamic Banking Industry, this study uses Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH) methods. The results show that the level of financial efficiency of Islamic banks in Indonesia from 2013 to 2018 tends to decrease. On the contrary, the level of social efficiency of Islamic banks in Indonesia has a tendency to increase. Furthermore, the value of social efficiency of Islamic banks in Indonesia was relatively lower compared to the value of financial efficiency. Within the Financial-Social Efficiency Quadrant framework, the study classified two Islamic banks in quadrant 1, three in quadrant 2, two in quadrant 3, and four in quadrant 4. It is imperative for Islamic banks that are in the low level of ‘social efficiency’ to develop a policy to keep in line with the five factors of maqashid sharia apart of maintaining efficiency in order to reach maslahah. For the regulators, the social efficiency measurement framework could be an alternative in considering Islamic bank performance beyond financial efficiency. Keywords: Financial Efficiency, Social Efficiency, DEA, FDH, Islamic Bank

Since 1995, a national health insurance (NHI) program has been in operation in Taiwan, which provides uniform comprehensive coverage. Forced by severe financial deficit, global budgeting reimbursement was adopted in the healthcare sector to control healthcare expenditures in 2002. A two-stage data envelopment analysis (DEA) approach was used to measure the efficiency of hospital resource allocation among stakeholders in Taiwan’s NHI system, and to further explore the changes in resource allocation after the introduction of a global budgeting payment scheme. The dataset was collected from the annual statistical reports of Taiwan’s Ministry of Health and Welfare (MOHW) and was used to estimate the efficiency of resource allocation in hospital-based healthcare services under global budgeting. In terms of efficiency during the period from 2003 to 2009, one-third of decision-making units (DMUs) improved their productivity in stage I, and seven out of the total of eighteen DMUs saw falls in financial efficiency in stage II. After global budgeting was implemented, there were significant positive impacts on the efficiency of hospital resource allocation in Taiwan. The two-stage DEA model for analyzing the effects of the global budgeting reimbursement system on productivity and financial efficiency represents a key decision-making tool for hospital administrators and policymakers.

Nowadays, the necessity and utilization of Automatic Teller Machine (ATM) technologies increase in rural areas. Financial technology became a crucial thing and created efficiency in their activities. Some previous research uncovers technology that could create efficiency in the economy, including financial technology. This paper, interest in investigating and detect how ATM technology establishes financial efficiency on villagers. This research was conducted in rural communities on the island of Madura, Indonesia. This study uses SFA (Stochastic Frontier Analysis) model to estimate technical efficiency. This research found out that ATMs in rural communities on Madura Island produce highly financial efficiency. It proved that the villagers in Madura need ATM technology for carrying out their economic activities.

Orientation: Access to and use of formal finance can be an epitome for poverty reduction in developing and transitional economies. Most of these economies experienced great growth in gross domestic product (GDP) compounded with exploding inequality, including racial wealth gaps, increasing starvation, exorbitant health and housing costs. Research purpose: The aim of this study was to examine the relationship between financial intermediation and poverty within the context of financial dimensions of financial access, financial efficiency and financial stability. Motivation for the study: Previous literature focuses mainly on the role of financial development in poverty reduction, with a dearth of literature on the other financial dimensions of financial access, financial efficiency and financial stability in reducing poverty. Research approach/design and method: A quantitative approach was used in this study through econometric analysis of the data. A panel data analysis was used for a panel of 35 developing countries, mainly in Africa. The panel heterogeneous estimation method of pooled mean group was employed in a panel autoregressive distributed lags setting for this article Main findings: Financial intermediation, including the other financial dimensions, reduces poverty. The effect of the financial dimensions depended on how poverty is measured. Practical/managerial implications: Policymakers and development agencies should take note of poverty measurement in addressing poverty challenges. Distorted understanding of poverty will result in distorted policies, which yield little or no results for the effective use of formal finance to reduce poverty. Contribution/value-add: Other financial dimensions of the formal financial sector can be considered for the use in poverty reduction strategies.

This study examines the impact of rule of law and government size under the dimensions of economic freedom to the social and financial efficiency of microfinance institutions (MFIs) from Thailand, Philippines, Malaysia, Indonesia, and Cambodia 2011 to 2018. The Data Envelopment Analysis (DEA) approach has been applied to identify the efficiency level of MFIs. At the same time, the Pooled Ordinary Least Square (PoOLS) and Generalized Least Square (GeLS) methods comprising the Fixed Effect (FEMod) and Random Effect (REMod) models are used to examine the impact of dimensions of economic freedom and potential determinants on the efficiency level of MFIs. Overall, the results revealed that the technical efficiencies for both social and financial efficiency are contaminated by managerial inefficiency, which is measured by pure technical efficiency. This indicates, although the MFIs had been operating on a relatively optimal scale, they were facing the inefficiency from the managerial side. Besides, the results from the panel regression analysis have implied that both property rights and government integrity under the measurement of rule of law positively influence the MFIs’ financial efficiency. Meanwhile, the impact of government size shows both tax burden and government spending are significantly positive to the social efficiency of MFIs. As the policy implication, the information provides suggestion to the government on how its role can help in improving the efficiency level of MFIs and implements some useful initiatives to help MFIs to sustain in the long term. In addition to that policymakers can identify the relevant inputs of MFIs and thus revise the policy accordingly and design new policies and regulations based on different economic freedom dimensions. The results of the present study provide a reference to guide them in decision making on their investments. For academicians or researchers, they can obtain more information regarding the efficiency of MFIs that is valuable for further research or study.

Given the present-day economic situation, which is characterized by economic destabilization as a result of the pandemic crisis, auditors are facing the issue of establishing materiality, which is partly based on the fact that a certain level of financial misstatement influences the decisions of the involved parties. The aim of the present study is to suggest an econometric model for readjusting significance threshold levels through quick audit tests used on sustainable companies. The main objectives of the study are to emphasize the causal relationship between the manifestation of constant errors in financial reports and the inconsistency of audit opinions, as well as to put into practice the causal relationship that exists between the improvement of the audit function and sustainability itself, given companies&rsquo, crisis situation. In this particular context&mdash, based on the entire sample of companies listed in the Bucharest Stock Exchange (BVB), Bucharest Exchange Trading Plus category (BET Plus)&mdash, we estimated a number of financial indicators between 2009 and 2018 so that we could determine the materiality of accounting errors identified by auditors in order to express an opinion regarding the reliability and accuracy of financial reporting. The study&rsquo, s key findings show that, given the economic crisis, the significance threshold level is a volatile test and it needs to be reconsidered taking into account the decline in the quality of reporting and, indirectly, the disclosure of financial information. From a holistic point of view, we believe that our study will have a significant impact on both practitioners and regulatory entities by shifting the qualitative approaches of analysis itself towards key prudential regulations stipulated by International Standard on Auditing (ISA) 320, ISA 450 and ISA 700. The study also highlights the process of refining information sources that can impact the significance, understanding and materiality of business decisions.

MENA region is undergoing rapid demographic transition, where 50% of the population is under the age 25 and high youth unemployment rates are argued to be one of the main sources of political instability. Fighting youth ex- clusion from work is one of the main challenges in the region. In this paper we evaluate the economic impact of the demographic transition for selected coun- tries which experience di_erent speeds of transition, namely: Iran, Morocco and Egypt. The impact of demographic shift on the evolution of human capital stock and physical capital stock, has been highlighted by the literature. Since _nan- cial markets play a crucial role to allocate capital and channel the funds to the productive sector, it is hence fundamental to take into account the role of the _nancial markets in the growth process associated with demographic change. We have developed a general equilibrium overlapping generations model with a cost for capital mobilisation as a proxy for _nancial markets' e_ciency. We have found that the demographic shift will be an important driver for growth in the upcoming decades. Furthermore, our results show that a more e_cient _nancial sector leads to better economic performance. Speci_cally, youth are the primary bene_ciaries: an increase in the _nancial sector e_ciency can reduce up to 8 percentage points of the youngest age group unemployment.

This study searches the role of the financial system efficiency in renewable energy demand for the case of the 36 OECD countries. Numerous financial system proxies are used between 1990 and 2017. Results show that financial system proxies generally are poorly linked to the renewable energy demand of the OECD member states. Although the coefficient of the overall financial development proxy is positively significant for renewable energy demand, the coefficients of financial efficiency are insignificant. The present study finds significant effects of the overall financial markets and institutions on renewable energy demand; however, any vital link between financial system efficiency and renewable energy demand could not be obtained in the OECD countries. Policy implications regarding this major finding are provided in the current study.

With the advent of corporate social responsibility, practical aspects of environmental responsibility have gained importance and recognition among both manufacturing and service enterprises, including financial services. This trend is also evidenced extensively in the literature. On the other hand, the literature reveals a significant gap in the research into the matter of environmental responsibility of banks in the light of their financial effectiveness. In addition, the European Union (EU) regulations require banking entities to provide reports of any activities related to protection of natural resources. Two important dilemmas arise in this context&mdash, how to measure the environmental involvement of the banking sector and how to relate this type of involvement to the sector&rsquo, s financial effectiveness? We applied Analytic Hierarchy Process (AHP), linear ordering methods&mdash, standardized sum method and synthetic measure of development, Pearson&rsquo, s and Spearman&rsquo, s correlation coefficients, Student&rsquo, s t and Mann-Whitney U tests and boxplots to measure environmental responsibility of banks and to examine the empirical relationship between environmental engagement and bank financial performance data. We also used analytical methods for the study of financial and non-financial reports of banks. We posited three research hypotheses related to measurement of environmental involvement of banks (ecologization) and to correlations between the sector&rsquo, s financial effectiveness and its environmental involvement. The study does not confirm any direct influence of banks&rsquo, financial results upon the scale of their environmental involvement. Based on the above, the we also made an attempt at explaining the results and identifying directions of further research into the subject.

This paper investigates correlation between subsidies to invest in development projects, innovation, financial performance and sustainable growth. The focus of the study is on subsidies for co-financing purchases of new technological equipment aimed at promoting innovation and production of new products. Subsidies are distributed based on the prepared European Union (EU) and national programs for the purposes of faster economic growth in accordance with the policies and guidelines of the EU. The paper employs a combination of enterprises’ accounting data, data on subsidies and unique in-depth data obtained through a survey at the enterprise level. The results revealed a positive impact of subsidies on financial indicators, and only limited effect on innovation. While analyzing sustainable growth, we have established that the enterprises that received subsidies had a higher growth of financial indicators.

World population growth, climate changes, urbanization, and industrialization have all had a negative impact on natural resources, including water resources. Excessive exploitation and pollution have caused more and more regions to have problems with access to fresh water. Rainwater is perceived as a valuable alternative source of water that is most often used in a hybrid system supplementing tap water. Considering the possibilities of designing a rainwater harvesting system as a decentralized or central system, this research was undertaken to determine the hydraulic and financial efficiency of these two systems. The research was carried out for a single-family housing estate located in Poland. For this research, a simulation model was applied to determine the efficiency of water saving and the life cycle cost indicator. In variants where rainwater was only used to flush toilets, the water saving efficiency was 80% and 79% for the decentralized and centralized rainwater harvesting system (RWHS), respectively. The use of rainwater for toilet flushing and watering the garden resulted in a significant reduction in efficiency to 57% (the decentralized system) and 54% (the centralized system). On the other hand, the results of the life cycle cost (LCC) analysis showed that in spite of reducing tap water consumption, both the centralized and the decentralized rainwater harvesting system were not financially viable solutions for the housing estate, and only cofinancing investments at the level of 25% to 50% resulted in a significant improvement in financial efficiency.

The primary aim of this article is to examine financial efficiency and work productivity, as well as their determinants, in selected Polish coal mines in 1998&ndash, 2015. To achieve this goal, after introducing a justification for the choice of subject and the literature studies, the research methodology is presented, and research results are subsequently described and analyzed. Next, based on the main conclusions, model regularities and policy implications regarding efficiency and productivity improvement in Polish coal mining enterprises are established. The research for this study was conducted in five Polish coal mines, which were chosen on the basis of criteria aimed at ensuring the results&rsquo, comparability and the stability of organizational and mining conditions in the analyzed research period.

Economic literature pays a great deal of attention to economic and financial efficiency, expressed in terms of competition, concentration, productivity and profitability. This paper provides an all-embracing framework for the various existing theories in this area and illustrates these theories with practical applications. Currently, changing the size of the production potential in agricultural units in the Republic of Moldova depends to a great extent on the influence of different trends in the modification of production resources: the reduction of labor resources and agricultural land, quantitative and qualitative changes in fixed assets, and in current assets, etc. The notion of resource potential means the totality of the volume of all resources (natural, labor, material, intellectual, information, etc.) on specific enterprises, territories, branches, regions. Evaluating a broad field of research, the paper describes profit maximizing food products and demonstrates how several widely-used products can be fit into this framework. The authors also present an overview of the current major trends in the food sector and relate them to the assumptions for food products, thereby displaying their relevance and timeliness. The results include a set of recommendations for future research on this topic. The design, methodology and approach of this research is to explain why efficiency can help obtain a profit surplus, and to measure this efficiency. For quality of methodology we apply a range of statistical methods, as well as the strategic capability of organisations – made up of resources and competences. One way to approach the stategic capability of an organisation is to consider its strengths and weaknesses (for example, where it has a competitive advantage, profit, efficiency or disadvantage). Based on our research and results, we sought to understand the concepts of financial effciency and to apply these concepts to practical situations. At the start of each analysis entrepreneurship plays an important role. Most organisations have to innovate constantly to obtain profit and efficiency for food products. They need to be first into a market, or simply a follower of customers in developing new products and services. Original studies in Moldova and Poland regarding farm concentration in terms of Gini Coefficient, Gini Index and Concentration Index of the utilized agricultural area. Original calculus formula to determine the Concentration Index of the UAA for the top 10% largest farms in Moldova and UK.

Manufacturing firm data and district financial quantity and quality indicators for 2005–2007 combined with heterogeneous firm characteristics were used with a threshold panel to study the effect of financial inefficiency on firm R&D and the financial boundaries of efficiency improvement. The results show that: (1) extensive financial quantity expansion cannot support high innovation efficiency R&D (Research and Development) activities in private enterprises, low- and medium-technology enterprises, and underdeveloped area enterprises, as it causes financial inefficiency problems and a shortage of R&D inputs; and (2) financial efficiency and financial competition have nonlinear effects on firm R&D. Financial inefficiency and either low or excessive financial competition result in a lack of highly efficient firm R&D. Only improvements in financial efficiency and moderate competition can significantly promote firm R&D. The results of this study reveal an important way to improve the influence of financial inefficiency on firm R&D by moving away from simply expanding financial quantity to promoting quality instead.

The main aim of this article is to compare the financial performance of private and publicly traded companies in accordance with ownership structure and size. The analysis carried out in the article leads to the conclusion that in Poland private companies perform better than companies that are publicly traded on the Warsaw Stock Exchange (WSE). Statistically significant results are obtained for medium-sized companies. Moreover, it turns out that medium-sized enterprises operate better than large companies as far as profitability is concerned, at least in the group of private companies where results are statistically significant. The analyses conducted in the article are aimed at filling in the gap in studies comparing profitability between publicly traded and private companies.

The study mainly aims to undertake empirical investigation of relation between social responsibility level as proxied by expenditures on employees’ advanced training and financial performance of the companies. The article provides a detailed review and systematization of empirical studies of the relationship between the policy of corporate social responsibility and the financial efficiency of companies. The methodological basis includes the theories of stakeholders and managerial opportunism, signaling theory, etc. Empirical analysis of balanced panel data using random effects and fixed effects models served as a methodological basis for the investigation. The sample comprises data covering the 2012–2015 period for 20 Russian publicly traded companies representing nonfinancial sectors of economy. Both models have failed to prove statistically significant relation between the chosen proxy variable of corporate social responsibility and financial performance indicators.

This paper studies the relationship of financial development and income inequality in China over the period of 1978-2013. Using the structural vector auto-regression (SVAR), the empirical results are consistent with the G-J hypothesis of an inverted U-shaped relationship between financial development and income inequality. An economy in its initial stages of financial development would present increasing inequality and only in a second or even third stage of development would inequality actually decrease. The evidence is valid for two indicators defined to measure the scale and the efficiency of financial development, respectively. Financial reform aimed at forming an appropriate financial system should be accelerated to help to reducing income inequality in China.

This paper focuses on the possible impact of more efficient credit allocation on a country's processes of structural transformation. We develop a dynamic version of a small-scale general equilibrium model for a dual economy, in which labour reallocation is accompanied by involuntary unemployment in the modern sector, whose degree of financial efficiency varies over time. Counterfactual simulations indicate that structural transformation is faster in economies with greater financial efficiency, because the incentives for intersectoral migration are greater. That is, from the very outset of the transition the expected utility of working in the modern sector is greater. In our simulations, the greater flow of labour does not translate into higher unemployment rates.

One good way to communicate financial performance of a bank to its shareholders is the payment of dividend. The present study is attempted to explore the influence of financial efficiency, safety, risk and profitability on dividend policy using panel data of 10 commercial banks listed at Pakistan Stock Exchange (PSX) for a period of 9 years between 2006 to 2014. The panel regression technique is used to analyze the data. The analysis shows a positive relationship of dividend payout ratio with safety and profitability in banking sector of Pakistan. The study identifies a negative association of dividend payout measure with financial efficiency and risk. The results show the statistically significant association of safety, risk and profitability with dividend payout ratio. Based on these findings it is concluded that safety, risk and profitability measures are relatively strong measures for defining dividend policy. The results are strongly indicating that safer the banks, the greater payout ratio the bank has. Moreover; banks with higher profitability and lower non-performing loans (NPLs) are believed to pay more dividends. JEL code: G21, G23, G35

This article shows that improving financial efficiency may reduce real efficiency. While the former depends on the total amount of information available, the latter depends on the relative amounts of hard and soft information. Disclosing more hard information (e.g., earnings) increases total information, raising financial efficiency and reducing the cost of capital. However, it induces the manager to prioritize hard information over soft by cutting intangible investment to boost earnings, lowering real efficiency. The optimal level of financial efficiency is non-monotonic in investment opportunities. Even if low financial efficiency is desirable to induce investment, the manager may be unable to commit to it. Optimal government policy may involve upper, not lower, bounds on financial efficiency.

Using panel data on 30 provinces in China from 2005 to 2012, this paper conducts an empirical test on the threshold effect of the relationship between financial development and carbon emission intensity from the perspectives of financial scale and financial efficiency. The results show that at a low level of per capita GDP, the expansion of the financial scale and the enhancement of financial efficiency will increase carbon intensity. When the per capita GDP is greater than the threshold value (RMB 37,410), the expansion of the financial scale will also increase carbon intensity, but the potency of this effect will be weaker. At the same time, the improvement of financial efficiency will help reduce carbon intensity. Most provinces with per capita GDP greater than the threshold value (RMB 37,410) are located in the eastern coastal areas of China, whereas most provinces with per capita GDP less than the threshold value are located in the central and western areas of China. Both raising the level of openness and improving the industrial structure will have significantly positive effects on carbon intensity.

Economic theory suggests that sound and efficient financial systems channel capitals to its most productive uses are beneficial for economic growth. Sound and efficient financial systems are especially important for sustaining growth in developing countries. This paper examines the impact of banking sector liberalization on long-term economic growth in Pakistan by using a time series data for the period 1971–2011. The results show that there exist a significant positive long run relationship between banking sector development and economic growth in the country. The sensitivity analysis also shows that the relationship remain positive and significant no matter what combination of the omitted variables are used in the basic model. Thus, our findings support the core idea that banking sector development stimulates long term economic growth in a country.

International audience; Microfinance institutions face a double bottom-line. They perform financial tasks by giving microcredits to their customers and support projects aiming at reducing poverty. In doing so, they have to be financially self-sufficient and to target poor people excluded from the traditional financial systems. However, a trade-off may exist between financial sustainability and poverty outreach for these institutions. By using a multi-DEA approach, this paper shows that even if a trade-off exists for 15% of the MC2 (Mutuelles Communautaires de Croissance) in Cameroon, there is no trade-off for 46% of them. In order to increase, without trade-off, financial and social performance of inefficient MC2, a benchmarking approach combing DEA and performance indicators has been developed. DEA is used for identifying best-practices and setting benchmarking goals. Performance indicators are used for characterizing areas needing improvements and following the evolution of MC2 toward their goals, i.e., for implementing benchmarking. Complementarity of both approaches provides a tool box for improving financial and social efficiency and reducing the trade-off between financial sustainability and poverty outreach of microfinance institutions.

Small firms must design business models that leverage the resources of others to succeed in domestic and global markets. This study investigates the variance in business models of small firms seeking to prosper through networking within an intensely competitive landscape. We use explorative quantitative methods to analyse the link between networking, business models and financial performance of 90 small and industrial Finnish firms. The results reveal five types of business models: two of them are oriented internationally and three are oriented domestically. We mapped these business model types within a financial outcomes matrix to capture the differences in business model performance and found that competitiveness and financial performance of small firms under globalisation depend on their business model and networking strategy. In particular, inter-organisational networking contributes to sales growth and international expansion contributes to improved profitability.

International audience; This paper presents the results of an optimisation algorithm for biogas use. There is considered the case of the big farms. Generated biogas from manure is an important energy resource. The goal of the research is to estimate how biogas can cover the energy demand of the farms. Special software has been developed for managing the energy, environmental and economy balances. The best approach is to use biogas for producing heat and power. One can assume different heating schedules and electricity needs. Energy consumption for hog, poultry, beef and dairy farms can be simulated. The potential of the generated biogas is estimated using specific indicators. The software is able to find the optimal size of the biogas engine and boiler for different cases. The energy production is compared with the needs of the farm. As a result, there are presented financial analysis of valorisation projects for different types of animal farm.