Expectations of individuals regarding the Ijara Forward contract: the case of healthcare financing

The health sector in Morocco is marked by many achievements, but also by large deficits, especially in terms of healthcare expenditures borne by individuals. With the introduction of Islamic banks (called participative banks) in Morocco, the study aims to determine the extent to which Ijara Forward, as an Islamic financial contract, is adapted to the expectations of Moroccans to finance their health expenditures.The study sample consisted of 200 individuals. The univariate and bivariate analyses are used to identify possible relationships between the study variables. In addition, this paper proposes a model that will predict the demand for Ijara Forward based on the logistic regression method. The results reveal that the financial characteristics of the Ijara Forward contract are in line with the financial expectations of Moroccan individuals. Furthermore, the cost of health services is the main factor that makes healthcare inaccessible. This factor influences the demand of Ijara Forward. In addition, this paper reveals that religious beliefs stimulate Ijara Forward’s demand and encourages people to pay a higher price for Ijara Forward.

Impact of Psychological Contract on Employees' Performance

The performance of employees defines the competitive advantage of the company in current ferocious competition, and it affects the long-standing growth of the company. If a company inspires its workforce merely by the means of financial contract, then the company will not be in the position to gain the effective and efficient performances from its employees. Because apart from this financial contract, psychological contract also upsets attitudes and performance of the employees at the workplace. The spirit of the firms is the employees, and the implementation of the psychological contract can effectually decrease the turnover rate of employees and consequently increase their efficiency at the workplace. In the current chapter, first of all an attempt has been made to elucidate the concept and development process of psychological contract. After that it is endeavored to highlight the positive impact of psychological contract on employees' performances such as job satisfaction, organizational commitment, job performance, organization citizenship behavior, and turnover intentions.

AN EMPIRICAL STUDY FOR LIFE INSURANCES: A CASE STUDY OF PILIYANDALA REGION

Life insurance is a very significant financial contract due to uncertainty of human life. It pave the way for policy holders to plan the future as their beneficiaries safely. However, the insurance industry plays a huge role in both private and public sector as a result of globalization and commercialization. Therefore, a vital competition is exists between private insurance companies in order to expand their businesses all over the world and to gain more profits. Hence, insurance companies often tend to offer different modes of life insurances to gladden customers. In the study, it has been considered the three main life insurances which are; whole life insurance, Term life insurance and Endowment life insurance. The aims of this study are to explore the impact of various demographic factors on customers life insurance investment decision and predict policy holder’s behaviors. This research is significant to understanding existing market trends, develop new trading stations and facing market competition. Multinomial logistics regression was used to analyse the secondary data. The results of the quest indicates that the age, marital status, monthly income, gender, and monthly instalment are significant factors for purchasing a life insurance. Furthermore, endowment life insurance is the most efficient life insurance category in Piliyandala region. However, the insurer is able to form new explorations by conducting this research for other regions

Design of Distributed Electricity Trading Mechanism Based on Contract for Difference

A contract for difference is a medium and long-term financial contract, which can be used in the electricity market to lock the electricity price in advance and avoid the risk of electricity price fluctuations in the spot market. The construction of the domestic power spot market has just started. With the release of relevant policies and the gradual improvement of the market structure, it is urgent to design a corresponding trading mechanism to ensure the smooth transition of the market. The current day-ahead transactions, real-time transactions and other short-term transactions for distributed power generation, on the one hand power load forecasting, electricity price demand response and other related technologies need to be further improved, on the other hand due to the randomness and uncertainty of distributed energy, participating in the short-term spot market has large price fluctuations, which is not conducive to the stability of the electricity market, and it is also not conducive to the consumption of distributed energy. Aiming at the above problems, this paper uses the characteristics of CFDs to restrain market power to design a distributed energy trading mechanism to achieve the purpose of energy saving and emission reduction.

Ruin Probability for Stochastic Flows of Financial Contract under Phase-Type Distribution

This paper examines the impact of the parameters of the distribution of the time at which a bank’s client defaults on their obligated payments, on the Lundberg adjustment coefficient, the upper and lower bounds of the ruin probability. We study the corresponding ruin probability on the assumption of (i) a phase-type distribution for the time at which default occurs and (ii) an embedding of the stochastic cash flow or the reserves of the bank to the Sparre Andersen model. The exact analytical expression for the ruin probability is not tractable under these assumptions, so Cramér Lundberg bounds types are obtained for the ruin probabilities with concomitant explicit equations for the calculation of the adjustment coefficient. To add some numerical flavour to our results, we provide some numerical illustrations.

You Can Bluff but You Should Not Spoof

Spoofing is the act of placing orders to buy or sell a financial contract without the intention to have those orders fulfilled in order to create the impression that there is a large demand for that contract at that price. In this article, I deny the view that spoofing in financial markets should be viewed as morally permissible analogously to the way bluffing is permissible in poker. I argue for the pro tanto moral impermissibility of spoofing and make the case that spoofing is disanalogous from bluffing in at least one important regard—speculative trading serves an important economic role, whereas poker does not.

Probabilistic evaluation of renewable energy curtailment under forward electricity market

Forward electricity market has emerged as a pivotal section for the electricity transaction to keep stakeholders away from price risk and electricity shortage. But the forward contract of conventional unit partially limits the unit output before operation, leading to the curtailed generation share of renewable energy source (RES). Modeling and assessing this impact is of great significance for system planning and market supervision. The central thesis of this paper is to find out the impact of forward market on RES curtailment. A probabilistic evaluation model for RES accommodation is proposed, taking the curtailment rate as a main evaluation index. We mainly research financial contract and physical contract, modeling the impact of them on thermal unit minimum load capacity and power load in evaluation model. The simulation is conducted in a simplified system, which reveals the change of RES curtailment with renege penalty, contract price and execution generation curve.

Impact of Psychological Contract on Employees' Performance

The performance of employees defines the competitive advantage of the company in current ferocious competition, and it affects the long-standing growth of the company. If a company inspires its workforce merely by the means of financial contract, then the company will not be in the position to gain the effective and efficient performances from its employees. Because apart from this financial contract, psychological contract also upsets attitudes and performance of the employees at the workplace. The spirit of the firms is the employees, and the implementation of the psychological contract can effectually decrease the turnover rate of employees and consequently increase their efficiency at the workplace. In the current chapter, first of all an attempt has been made to elucidate the concept and development process of psychological contract. After that it is endeavored to highlight the positive impact of psychological contract on employees' performances such as job satisfaction, organizational commitment, job performance, organization citizenship behavior, and turnover intentions.

Venture waqf in a circular economy

Purpose This paper aims to enhance the impact of incorporated waqf institutions by blending their resources to promote responsible small businesses that are inclusive of human development, service to society and preservation of ecological environment and other species. This is expected to shift the paradigm of businesses from the current waste-oriented linear economy to ideally a zero-waste circular economy. Design/methodology/approach This is an analytical study building on the experience of European Venture Philanthropy Organizations (VPOs) that work with the primary objective of making impactful businesses successful, with capital protection and return on investment being of secondary concern. This paper suggests an incorporated institutional design that blends resources for promoting responsible businesses using a new hybrid financial mechanism, namely, equity-at-default (EaD) to replace collateral and foreclosure requirements with responsibility and compassion. Findings The research calls for changing the business paradigm from linear to circular, an incorporated institutional framework for venture waqf, purpose of the waqf to make impactful small businesses successful and designing a financial contract to loan in favor of responsible businesses that convert to equity stake for the waqf in case of default (EaD) replacing collateral and foreclosure requirements. Research limitations/implications This is a theoretical study motivated by the success of VPOs but assigns a new role to waqf institutions. Furthermore, the incorporated nature of waqf is a new idea and EaD is a new mechanism. Being new, these ideas have the risk of not being implemented. However, the broader message that waqf shall promote businesses that are inclusive of ecological concerns is generally applicable. Practical implications The paper has a significant practical implication to transform the responsibility and consciousness of businesses. Waqf is fundamentally a compassionate institution, and it must enhance the responsibility of businesses to become more inclusive of the environment and other species. It should also become more compassionate toward businesses that are in distress and default. In this sense, the paper tries to internalize compassion in financial contracting that can potentially change the architecture of lending. Social implications Altering businesses’ mindset from a waste-driven extractive linear economy to inclusive circular economy has a tremendous transformative role. This will have implications for enhancing business consciousness and responsibility. As poverty is a phenomenon of state of mind, changing the society’s state of thought in Muslim communities is expected to have basic positive implications. Entrepreneurs with a new mindset can have far-reaching positive impacts on the society. Originality/value The paper offers potentially innovative perspectives in four key areas and blends the different resources in an incorporated waqf that makes responsible entrepreneurs assume a partnership role in times of distress through EaD. Furthermore, the integration of compassion in financial contracting could have better implications for return on investment as well. The ideal state of an economy is where waste is turned into wealth and well-being is something that all policymakers must keep on the top of their agendas.