International Journal of Nonlinear Analysis and Applications

Explaining the pattern of implementing new financing methods in order to increase the speed and transparency in financial reporting (case study: private banks of the country)

Document Type : Research Paper

Authors

1 Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

2 Department of Accounting, Borujerd Branch, Islamic Azad University, Borujerd, Iran

3 Department of Economic, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

Abstract

In the past, most of the financing process was to provide cash resources for the purchase of commercial goods, with the complexity of the business process and the way companies operate, the liquidity needs also changed. As a result, traditional financing methods were no longer able to respond to new needs. The expansion and increasing complexity of financing issues, as well as the introduction of new financing tools at the international level, have caused the financial system to require the introduction of new tools in order to achieve its goals. In this research, we seek to explain the pattern of implementing new methods of financing in order to increase the speed and transparency of financial reporting in private banks in the country. In this research, the fuzzy Delphi method has been used to prioritize and present the pattern of financing technologies. The statistical population consists of 25 academic experts in the field of accounting and information technology. The results showed that international money transfer technology, money transfer or remittance technology, payment technology, lending and crowdfunding technology, insurance technology, financial management technology and capital markets technology respectively have the greatest effect on increasing the speed and transparency of financial reporting.

Keywords

[1] M. Ahmadi and A. Moghimi, The effect of debt financing method and capital increase financing on the value of companies, Econ. J. 2 (2016), no. 7, 56–69.
[2] D.W. Arner, J. Barberis and R.P. Buckley, 150 years of Fintech: An evolutionary analysis, Jassa 3 (2016), 22–29.
[3] M. Badavar Nahandi, S. Zamani and P. Abdolmaleki, Transparency of financial reports through new methods of financing and depriving the interests of minority shareholders with an emphasis on the role of financial reporting quality, Financ. Account. Rese. 3 (2018), no. 5, 23–37.
[4] A.N. Berger, The economic effects of technological progress: Evidence from the banking industry, J. Money Credit Bank. 35 (2003), 141–176.
[5] S.A. Borhani and J. Babajani, Adopting blockchain technology to improve financial reporting by using the technology acceptance model (TAM), Int. J. Finance Manag. Account. 6 (2021), no. 22.
[6] B. Bratten, M. Causholli, and T.C. Omer, Audit firm tenure, bank complexity, and financial reporting quality, Contemp. Account. Res. 36 (2019), no. 1, 295–325.
[7] C.A. Cassell, L.A. Myers and T.A. Seidel, Disclosure transparency about activity in valuation allowance and reserve accounts and accruals-based earnings management, Account. Organ. Soc. 46 (2015), 23–38.
[8] F. Chairina and T. Wehartaty, Pengaruh penerapan sistem informasi akuntansi terhadap kualitas laporan keuangan pada BPKPD kota Surabaya, J. Akunt. Kontemp. 11 (2019), no. 1, 31–39.
[9] L. Chen, From fintech to finlife: The case of fintech development in China, China Econ. J. 9 (2016), no. 3, 225–239.
[10] J. Chen, C.M. Sousa, and X. He, The determinants of export performance: a review of the literature 2006-2014,
Int. Market. Rev. 33 (2016), no. 5, 626–670.
[11] W.W. Chin, The partial least squares approach to structural equation modeling, Modern Meth. Bus. Res. 295 (1998), no. 2, 295–336.
[12] I.H. Chiu, Fintech and disruptive business models in financial products, intermediation and markets-policy implications for financial regulators, J. Tech. L. Pol’y 21 (2016),  55.
[13] C.M. Christensen, The Innovator’s Dilemma: The Revolutionary Book that will Change the Way You do Business, Harper Business Essentials, 2003.
[14] M. Coeckelbergh, Q. DuPont and W. Reijers, Towards a philosophy of financial technologies, Phil. Technol. 31 (2018), 9–14.
[15] T. Dapp, L. Slomka, D.B. AG, and R. Hoffmann, Fintech–The digital (r) evolution in the financial sector, Deutsche Bank Res. 11 (2014), 1–39.
[16] R. DeYoung, The performance of Internet-based business models: Evidence from the banking industry, J. Bus. 78 (2005), no. 3, 893–948.
[17] Y. Dou, M.F. Wong, and B. Xin, The effect of financial reporting quality on corporate investment efficiency: Evidence from the adoption of SFAS No. 123R, Manag. Sci. 65 (2019), no. 5, 2249–2266.
[18] M. Dumitru, J. Dyduch, R.-G. Gus, e, and J. Krasodomska, Corporate reporting practices in Poland and Romania–an ex-ante study to the new non-financial reporting European directive, Account. Eur. 14 (2017), no. 3, 279–304.
[19] P. Eslami Milani and S. Esmaeili, A review of new ways and methods of financing projects, Financ. Account. 1 (2018), no. 4, 121–132.
[20] A.O. Fazny and H. Setiyawati, The effect of application of the internal control system and the application of good corporate governance principles on the quality of financial reports (case study at Amanah Insani Islamic community financing bank), Int. J. Sci. Res. 8 (2019), no. 5, 20–31.
[21] D. Fortnum, I. Pollari, W. Mead, B. Hughes, and A. Speier, The pulse of fintech Q1 2017: Global analysis of investment in fintech, Amstelveen: KPMG, (2017).
[22] D. Gabor and S. Brooks, The digital revolution in financial inclusion: international development in the fintech era, Material Cultures of Financialisation, Routledge, 2020.
[23] A. Gabossy, New directions in crowdfunding, Public Finance Quart. Penzugyi Szemle 61 (2016), no. 4, 533–544.
[24] L.M. Gaynor, A.S. Kelton, M. Mercer, and T.L. Yohn, Understanding the relation between financial reporting quality and audit quality, AUDITING: J. Practice Theory 35 (2016), no. 4, 1–22.
[25] B. Glumac, Q. Han, J. Smeets, and W. Schaefer, Brownfield redevelopment features: applying Fuzzy Delphi, J. Eur. Real Estate Res. 4 (2011), no. 2, 145–159.
[26] C. Ham, M. Lang, N. Seybert, and S. Wang, CFO narcissism and financial reporting quality, J. Account. Res. 55 (2017), no. 5, 1089–1135.
[27] V. Heshmati, Investigating the impact of new financing methods on audit quality and financial reporting quality, Account. Audit. Rev. 22 (2018), no. 72, 99–118.
[28] D.E. Hirst and P.E. Hopkins, Comprehensive income reporting and analysts’ valuation judgments, J. Account. Res. 36 (1998), 47–75.
[29] D. Iwata, A new relationship between financing and technology in the FinTech era, NEC Tech. J. 11 (2017), no. 2, 12–15.
[30] R.M. Lacasse, B.A. Lambert, N. Roy, J. Sylvain, and F. Nadeau, A digital tsunami: FinTech and crowdfunding, Int. Sci. Conf. Digital Intell., 2016, pp. 1–5.
[31] Y.-J. Lee, K.R. Petroni, and M. Shen, Cherry picking, disclosure quality, and comprehensive income reporting choices: the case of property-liability insurers, Contemp. Account. Res. 23 (2006), no. 3, 655–692.
[32] S.N. Mareev, Understand global capitalism (reflections on the book” Global capital”, by AV Buzgalin and AI Kolganov), Voprosy Filos. 5 (2016), 60–67.
[33] R.J. McWaters, G. Bruno, A. Lee, and M. Blake, The future of financial services: How disruptive innovations are reshaping the way financial services are structured, provisioned and consumed, World Econ. Forum 125 (2015), 1–178.
[34] V. Mehravar, A. Naderi Far, and F. Chari, Examining the relationship between new methods of financing and managers’ skills in internal control weaknesses with an emphasis on the effectiveness of financial reporting quality, Account. Exper. Res. 6 (2018), no. 23, 29–42.
[35] F. Mirazi, Fintech and its position in the future financial markets, Exper. Account. Res. 1 (2018), no. 1, 51–62.
[36] M. Mostafa Pour, A look at new financing methods and tools with an emphasis on the debt market, Econ. J. 7 (2015), no. 8, 17–22.
[37] I. Muda, A.H. Harahap, S. Ginting, A. Maksum, and E. Abubakar, Factors of quality of financial report of local government in Indonesia, IOP Conf. Ser.: Earth Envir. Sci. IOP Pub. 126 (2018), no. 1, 012067.
[38] M. Nagshbandi, A. Najafi, and M. Taherian, Investigating the relationship between financing methods and the quality of financial reporting, Exper. Account. Res. 6 (2017), no. 24, 47–87.
[39] A. Pavlopoulos, C. Magnis, and G.E. Iatridis, Integrated reporting: An accounting disclosure tool for high quality financial reporting, Res. Int. Bus. Financ. 49 (2019), 13–40.
[40] P.R.D. Redjo, Efek moderasi pada pengaruh transparansi penyusunan laporan keuangan terhadap kualitas laporan keuangan, J. Ekon. Bis. Akunt. 20 (2018), no. 2.
[41] P. Schueffel, Taming the beast: A scientific definition of fintech, J. Innov. Manag. 4 (2016), no. 4, 32–54.
[42] M. Shafiee, Technology development in conceptual age: Definitions, concepts, and  equirements, Quart. J. Industr. Technol. Dev. 12 (2014), no. 23, 1–10.
[43] M. Shafiei Dizaji and A. Azizzadeh, Investigating the relationship between the quality of financial reporting and new financing methods, Financ. Account. Empir. Stud. 14 (2019), no. 56, 109–132.
[44] Y. Shim and D.-H. Shin, Analyzing China’s fintech industry from the perspective of actor–network theory, Telecommun. Policy 40 (2016), no. 2–3, 168–181.
[45] W. Szpringer, FinTech-new phenomena in the financial services market, E-MENTOR, 2 (2016), 56–69.
[46] A. Zakernia, M. Khajehzadeh Dezfuli, and M. Fadaie Vahed, Prioritization of factors affecting the selection of new financing method in Iran using TOPSIS method in fuzzy environment based on verbal variables, J. Financ. Eng. Secur. Manag. 11 (2014), no. 27, 65–87.
International Journal of Nonlinear Analysis and Applications
Volume 15, Issue 10
October 2024
Pages 345-358
  • Receive Date: 16 January 2023
  • Revise Date: 13 April 2023
  • Accept Date: 02 May 2023