{"title":"评估小额信贷机构的现金流风险:自下而上的方法和蒙特卡罗模拟","authors":"Xianghua Tang","doi":"10.1142/s1084946724500092","DOIUrl":null,"url":null,"abstract":"Microfinance institutions (MFIs) play a crucial role in the emerging financial system as well as in the innovation of rural financial systems. MFIs significantly promote capital flow, alleviate financing difficulties for small and micro enterprises, and address poverty in underserved areas. However, the demands to address poverty through development and meet social goals expose MFIs to financial risks, particularly cash flow risk associated with capital repayment, which can hinder normal operations. Therefore, it is essential to systematically study the cash flow risk faced by MFIs to enhance their sustainable development capabilities. This research utilizes the bottom-up approach along with Monte Carlo simulation (MCS) to compute the value at risk (VaR), assessing the financial flow of listed microfinance firms in China. The analysis provides a straightforward and specific measure of cash flow uncertainty for management, investors and analysts of microfinance institutions. By comparing the VaR of corporate cash flow and evaluating the VaR of cash flow, the study identifies the existence of cash flow risks within the entire microfinance industry. The study provides policy recommendations to mitigate cash flow risk in microfinance institutions, focusing on business strategy and internal control, to improve the industry’s ability to manage risks and promote sustainable development.","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":" 42","pages":""},"PeriodicalIF":16.4000,"publicationDate":"2024-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"ASSESSING CASH FLOW RISK IN MICROFINANCE INSTITUTIONS: A BOTTOM-UP APPROACH AND MONTE CARLO SIMULATION\",\"authors\":\"Xianghua Tang\",\"doi\":\"10.1142/s1084946724500092\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"Microfinance institutions (MFIs) play a crucial role in the emerging financial system as well as in the innovation of rural financial systems. MFIs significantly promote capital flow, alleviate financing difficulties for small and micro enterprises, and address poverty in underserved areas. However, the demands to address poverty through development and meet social goals expose MFIs to financial risks, particularly cash flow risk associated with capital repayment, which can hinder normal operations. Therefore, it is essential to systematically study the cash flow risk faced by MFIs to enhance their sustainable development capabilities. This research utilizes the bottom-up approach along with Monte Carlo simulation (MCS) to compute the value at risk (VaR), assessing the financial flow of listed microfinance firms in China. The analysis provides a straightforward and specific measure of cash flow uncertainty for management, investors and analysts of microfinance institutions. By comparing the VaR of corporate cash flow and evaluating the VaR of cash flow, the study identifies the existence of cash flow risks within the entire microfinance industry. The study provides policy recommendations to mitigate cash flow risk in microfinance institutions, focusing on business strategy and internal control, to improve the industry’s ability to manage risks and promote sustainable development.\",\"PeriodicalId\":1,\"journal\":{\"name\":\"Accounts of Chemical Research\",\"volume\":\" 42\",\"pages\":\"\"},\"PeriodicalIF\":16.4000,\"publicationDate\":\"2024-07-18\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Accounts of Chemical Research\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.1142/s1084946724500092\",\"RegionNum\":1,\"RegionCategory\":\"化学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q1\",\"JCRName\":\"CHEMISTRY, MULTIDISCIPLINARY\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/s1084946724500092","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
ASSESSING CASH FLOW RISK IN MICROFINANCE INSTITUTIONS: A BOTTOM-UP APPROACH AND MONTE CARLO SIMULATION
Microfinance institutions (MFIs) play a crucial role in the emerging financial system as well as in the innovation of rural financial systems. MFIs significantly promote capital flow, alleviate financing difficulties for small and micro enterprises, and address poverty in underserved areas. However, the demands to address poverty through development and meet social goals expose MFIs to financial risks, particularly cash flow risk associated with capital repayment, which can hinder normal operations. Therefore, it is essential to systematically study the cash flow risk faced by MFIs to enhance their sustainable development capabilities. This research utilizes the bottom-up approach along with Monte Carlo simulation (MCS) to compute the value at risk (VaR), assessing the financial flow of listed microfinance firms in China. The analysis provides a straightforward and specific measure of cash flow uncertainty for management, investors and analysts of microfinance institutions. By comparing the VaR of corporate cash flow and evaluating the VaR of cash flow, the study identifies the existence of cash flow risks within the entire microfinance industry. The study provides policy recommendations to mitigate cash flow risk in microfinance institutions, focusing on business strategy and internal control, to improve the industry’s ability to manage risks and promote sustainable development.
期刊介绍:
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.