We study the structure of inter-industry relationships using networks of money flows between industries in 45 national economies. We find these networks vary around a typical structure characterized ...by a Weibull link weight distribution, exponential industry size distribution, and a common community structure. The community structure is hierarchical, with the top level of the hierarchy comprising five industry communities: food industries, chemical industries, manufacturing industries, service industries, and extraction industries.
•Pedagogical intro to industry networks and national accounting to aid researchers.•Money flows between industries described by a Weibull distribution.•Sizes of industries described by an exponential distribution.•Community structure characterized by 5 major industrial sectors and sub-communities.•Results approximately invariant across different national economies.
One of the main goals of the business is to obtain excess money flow, which can be achieved by daily accounting and control over the receipt and spending of money means. The author considers as the ...main instrument for proper management of money flows the Money flow information report, which is a table that shows the daily receipt and spending of money means, as well as the balances of money means in bank accounts and the cash registers of enterprise. The Money flow information report solves several problems: showing the amount of revenue, payments and excess money flow; informs on what days the cash gaps have arisen and what measures have been taken to eliminate them; maintains an appropriate level of solvency. With this in mind, it is proposed to allocate such types: preliminary (planned), operational, reporting (actual), analytical and consolidated reports. The compiling of the planned Money flow information report is suggested to be carried out according to the following steps: determining the amount of money balance at the beginning of the month; composing a payment schedule; drawing up a money flow plan based on avoiding cash gaps. The proposed recommendations for the management of the enterprise’s money flows and, in particular, compiling Money flow information reports will allow to avoid cash gaps in practical use, to balance money payments and revenues, as well as to build an effective system of money flow management to achieve the main goal of the enterprise.
Abstract
This article presents a further development of the existing crime scripting framework to enhance insight in the financial aspects of profit-driven crime: financial crime scripting. By ...drawing on the foundations of crime script analysis, financial crime scripting allows to generate, organise and systematise knowledge about the financial aspects of the crime commission processes of a variety of crime types, and accounts for linking the dots with financial crimes, such as bribery, bankruptcy fraud and money laundering. Viewing these financial crimes as supporting or succeeding offences in light of profit-driven crimes, and at the same time providing guidance to analyse these offences as profit-driven crimes in itself, opens the door for detailed analyses without losing sight of the bigger picture, i.e., the interconnectedness with other crimes. This analytical method helps crime researchers to take into account the financial aspects of crime-commission processes in crime script analyses and could help law enforcement agencies and other crime prevention partners to go beyond a proceeds-of-crime approach and put a follow-the-money approach in practice. Financial crime scripting takes full account of the financial aspects of profit-driven crime and puts relevant concepts in broader perspective, enhancing understanding with conceptual clarity. In addition to outlining the framework, the relevance for policy and practice is unravelled and avenues for future research are discussed.
The main problem of financial management in practical conditions is that because of the many material available on this issue, it is difficult for the head of enterprise to understand where to start, ...what information he needs and what indicators (problems, phenomena) should be paid attention in the first place, as well as how everything is connected. The author proposes an algorithm for building a management system in the enterprise to be submitted in the following form: 1. Determining the financial goals of the enterprise. 2. Allocating the financial management subsystems. 3. Determining the information support for the financial management system. 4. Determining and enforcing financial management rules. For practical application, it is proposed that the enterprise’s financial objectives be presented as the next hierarchical three-tier model: the main goal is to generate excess money flow; additional goals are to make a profit and ensure the solvency of the enterprise; development goals are to increase the value of the enterprise and increase profits for its capitalization. Based on the financial objectives outlined above, the following financial management subsystems are proposed: money flows management; management of solvency; management of costs, income and profit. In addition, the author proposes management reports be conditionally divided into several levels (operational, tactical and final) with the allocated certain rules of financial management. The proposed recommendations will allow in practice to avoid, in particular, such problems as the occurrence of cash gaps, complications of relations with creditors, etc.
This paper provides a critical review of the literature on socially responsible investments (SRI). Particular to SRI is that both financial goals and social objectives are pursued. Over the past ...decade, SRI has experienced an explosive growth around the world reflecting the increasing awareness of investors to social, environmental, ethical and corporate governance issues. We argue that there are significant opportunities for future research on the increasingly important area of SRI. A number of questions are reviewed in this paper on the causes and the shareholder-value impact of corporate social responsibility (CSR), the risk exposure and performance of SRI funds and firms, as well as fund subscription and redemption behavior of SRI investors. We conclude that the existing studies hint but do not unequivocally demonstrate that SRI investors are willing to accept suboptimal financial performance to pursue social or ethical objectives. Furthermore, the emergence of SRI raises interesting questions for research on corporate finance, asset pricing, and financial intermediation.
Purpose
This paper aims to demonstrate the utility of a target-centric approach to intelligence collection and analysis in the prevention and investigation of ransomware attacks that involve ...cryptocurrencies. The paper uses the May 2017 WannaCry ransomware usage of the Bitcoin ecosystem as a case study. The approach proves particularly beneficial in facilitating information sharing and an integrated analysis across intelligence domains.
Design/methodology/approach
This study conducted data collection and analysis of the component Bitcoin elements of the WannaCry ransomware attack. A note of both technicalities of Bitcoin operations and current models for sharing cyber intelligence was made. Our analysis builds on and further develops current definitions and strategies for sharing cyber threat intelligence. It uses the problem definition model (PDM) and generic target network model (TNM) to create an analytic framework for the WannaCry ransomware attack scenario, allowing analysts the ability to test their hypotheses and integrate and share data for collaborative investigation.
Findings
Using a target-centric intelligence approach to WannaCry 2.0 shows that it is possible to model the intelligence problem of collecting and analysing data related to inflows and outflows of Bitcoin-related ransomware transactions. Bitcoin transactions form graph networks and allow to build a target network model for collecting, analysing and sharing intelligence with multiple stakeholders. Although attribution and anonymity prevail under cryptocurrency usage, there is a means for developing transaction walks using this method to target nefarious cryptocurrency exchanges where criminals are inclined to cash out their proceeds of crime.
Originality/value
The application of a target-centric intelligence approach to the cryptocurrency components of a ransomware attack provides a framework for intelligence units to break down the problem in the financial domain and model the network behaviour of illicit Bitcoin transactions relating to ransomware.
•We analyze product differentiation in the SR mutual fund industry.•We used a text-based indicator based on information from fund prospectuses.•Younger SR funds and funds belonging to smaller ...families are more differentiated.•Differentiation allows SR funds to charge higher fees and attract more money flows.•Differentiation is effective regarding other funds applying the same SR strategies.
In this study, we analyse the effect of product differentiation on prices and client attraction in the socially responsible (SR) mutual fund industry. Using three proxies for differentiation, including a text-based indicator, a return-based indicator, and a portfolio-holding indicator, we analyse a sample of US SR equity mutual funds in the period 1999–2019. Our findings show that the text differentiation measure better explains the product differentiation impact on prices and flows than the measures based on fund characteristics. Our text differentiation results indicate that younger SR funds and funds belonging to smaller families are more differentiated. In addition, differentiation allows SR funds to charge higher fees and attract more money flows. Finally, our results indicate that SR fund investors are sensitive to differentiation regarding other funds implementing the same SR strategies, but not in relation to other funds in the same Morningstar financial style category.
Government officials in China have taken different views regarding shadow banking. Some have seen the industry as overly risky, potentially undermining the formal financial system, while others have ...asserted that it is an increasingly important part of the financial system, filling a gap in finance provision to particular sectors and smaller firms. Do their views matter? Regulators have striven to crack down on the riskiest practices in shadow banking, but are the policies effective? In this article, we analyze the impact of government attitudes and actions on the shadow banking sector. Using a unique data set based on information collected from various sources in a difference-in-difference model, we find that shadow banking regulation plays a strong role in China’s financial sector, while contradictory government views (in the form of commentary in the People’s Daily) on shadow banking do not. This reveals that shadow banking is strongly affected by political authority when it is codified into regulation. Only some aspects of shadow banking can be legitimized through regulation, while the remainder of China’s financial system remains constrained due to state dominance over the financial sector. This underscores the “funny” nature of shadow banking’s money flows. This article is one of the first to study the effects of government views and regulations on the shadow banking system.
Bankers’ acceptance drafts (BADs) are transferrable promissory notes that are designed to facilitate trade and that circulate among firms much like large-denomination bank notes. They play an ...important role in facilitating sales between industrial companies in China, particularly during straitened economic times. They have also been used to commit widescale fraud as bankers took advantage of the lack of insight regulators had into BADs’ circulation. However, BADs’ true value is as a tool that banks—and, to a lesser extent, companies—have repeatedly used to meet the often contradictory demands made of them by Beijing as it regulates the economy. In the years after the 2008 stimulus, banks used BADs to harvest deposits (companies must place a portion of the face value of a BAD issued on their behalf on deposit at the issuing bank), allowing them to meet strict loan-to-deposit ratios even as the practice resulted in ballooning off-balance-sheet credit creation. When Beijing cracked down on local government borrowing, some local governments got around the strictures by structuring BADs in creative ways that ensured ongoing access to funding. And starting in 2018, banks met Beijing’s demand that they reduce risk while increasing lending to small private companies—a group banks regard as the riskiest potential borrowers in the economy—by massively increasing their discounting of BADs, an approach that technically realized the competing demands but had none of the stimulatory effects Beijing had hoped for. This article will look at how BADs—and their counterpart, commercial acceptance drafts—give banks and state firms the flexibility to balance the political demands of the state with their own perceived interests. It will focus on how banks used BADs in 2018 and 2019 to deal with Beijing’s concerns about lack of funding for small private firms.
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