1.

1 INTRODUCTION

Debt Collection Strategies will help a firm take control of its

accounts receivable and save time and potential legal hassle down the road.
Having debt collection strategies in place helps in identifying the essential
elements of effective debt collection and use them to evaluate the policies in place
at your organization; ranking accounts to help you prioritize and determine an
effective and appropriate contact strategy; gathering all information necessary to
start building positive relationships with debtors upon first contact; motivating
even slow pays, large accounts, and big clients by using benefits rather than
consequences; addressing debtors' responses and reasons for nonpayment with
positive and productive conversation; remaining calm and cool when clients get
hot, and finally negotiating verbal agreements with debtors that will keep
repayment on track and on schedule.

Debt collection strategies help a firm get results and keep the firm legally
compliant with government guidelines. Not only does the firm need to understand
and abide by collections law, but also needs to know the strategies and techniques
that will help to easily and effectively contact and deal with debtors. From
account categorization and prioritization, to resource allocation and contacting
procedures, an organization needs to develop, implement, and follow a formal
process for handling all collections. A firm needs to uncover specific techniques
and strategies for developing a formal debt collection process that will save time
and effort in contacting debtors and managing delinquent accounts.

Debt collection strategies involve developing a strong collection unit with clearly
defined, documented and consistent policies and procedures that guide staff
through the collections process and instruct them on how to respond in particular
situations. Such policies and procedures should include a variety of strategies.
The key to selecting the best method is weighing the costs and benefits of each
1
available method based on number of days past-due and the probability of total
debt collections. Contact policies showing include preventative strategies, such
as a payment reminder, and should include a plan defining dates of future contact
and the steps to be taken in the collections process

Debt collection strategies are now about proactive systems and procedures
including a structured series of telephone calls, email, even text messages if it
suits, personal visits and online payments. With the right kind of operatives, well
trained and knowledgeable, more debt is recovered and those people who should
be followed are profiled, identified and dealt with accordingly. In deciding policy
for potential customers debt, the key has to be a co-ordinate, partnership
approach, which recognizes and helps prevent individuals becoming burdened
with debt through early intervention, as well as repayment programs, but which
also understands the legitimate needs of the creditors. Sophisticated profiling can
focus the appropriate collection strategy to the identified debtors, even if this
includes enforcement. We showing not always like it, but as well as the carrot,
there sometimes has to be a stick.

Businesses that are the most successful are the ones that use effective debt
collection strategies. This enables them to know which accounts are being paid
and delinquent debts are being satisfied. This improves cash flow to the business.
While it’s a good idea at any time, it’s especially important during economically
tight times to review your debt collection strategies and make sure they really are
having the effect you want.

Debt collection is a legitimate and necessary business activity where creditors

and collectors are able to take reasonable steps to secure payment from consumers
or businesses that are legally bound to pay or to repay money they owe. It is
important that any organization involved in recovering debt is aware of their legal
obligations. Debt collection strategies showing guide a firm to treat debtors and
third parties fairly and with respect and courtesy. A firm showing never harass or

2
coerce them, treat them unconscionably or mislead them as to the nature of their
debt, their legal obligations or any 4 possible outcomes if the debt is not paid. A
firm showing also not pursue a person for a debt unless they have reasonable
grounds for believing the person is liable for the debt.

3
 1.2 INDUSTRY PROFILE

India is a well-recognized Automobile manufacturing hub worldwide

because of its low-cost production. Cheap labor, easy availability and low cost of
raw materials, and a weak currency are the factors driving the manufacturing
Industry. India is the 4th largest producer of Automobiles in the world, with an
average annual production of more than 4 million motor vehicles.

Although vehicle production was hampered due to the global pandemic and
worldwide lockdown, now, as the situation is easing, the number of vehicles
produced is expected to increase in the upcoming years. For instance,

In 2019 a total of 4.5 million vehicles were sold in the country, and in 2020 the
number dropped by about 3 %. However, in 2021, the number of vehicles
produced rose by about 30% compared to 2020. Hence, considering the rising
demand and the production in full swing, the number of vehicles produced is
expected to increase during the forecast period.

Due to the rise in the middle-class income and rising young population, the India
Automobile market is expected to witness strong growth. Additionally, due to the
rising demand for automobiles, export from the country has also seen a significant
increase. For instance,

From April to December 2021, Indian automobile exports were 424,037 units, up
from 291,170 units from April to December 2020.

Major players in the passenger car segment include Maruti Suzuki, Tata Motors,
Hyundai Motor Company, Mahindra and Mahindra, Kia Motor Company, and
others. Players in the two-wheeler segment include Hero Moto Corp., Honda,
TVS, Bajaj, Royal Enfield, and others.

4
The automobile sector accounts for 7.1% of India's GDP and 49 % of
manufacturing GDP. Hence, the automobile sector in India is a significant
driver of macroeconomic growth and technological advancement. So, the
government is focused on increasing the share of the automobile industry by
introducing various norms and schemes.

By 2025, the Indian government expects the vehicle sector to receive USD 8-10
billion in domestic and foreign investment.

For instance, the Prime Minister introduced the Make in India program in 2014
as part of a broader set of nation-building efforts. Make in India was designed
as a timely solution to a crisis to transform India into a global design and
manufacturing hub.

As a result, many manufacturers are investing in new manufacturing plans and

existing plants to cater to the increasing demand for the production of vehicles
in the country. Like in July 2021, Maruti Suzuki India stated that it would invest
INR 18,000 crore (USD 2.42 billion) in a new production facility in Haryana,
with an annual manufacturing capacity of 7.5-10 lakh vehicles.

Additionally, in 2021, the Government of India introduced a new vehicle

scrappage policy, where the key objective was to identify and scrap unfit
automobiles from the road. This is done to reduce the emission of more
greenhouse gases from the older vehicles and make way for the new vehicle
compliant with BS6 (Bharat Stage 6 - similar to Euro6) emission norms.

When scrapping an old vehicle, vehicle owners showing be eligible for tax
savings as an incentive. As a result, the recycling business will generate more
cash. Compared to older automobiles, the new vehicles will be safer, aiding the
overall automobile market in India.

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 COMPANY PROFILE

Ashok Leyland is an Indian multinational automotive manufacturer, with its

headquarters in Chennai. It is now owned by the Hinduja Group. [3] It was
founded in 1948 as Ashok Motors, which became Ashok Leyland in the year 1955
after collaboration with British Leyland.[4] Ashok Leyland is the second largest
manufacturer of commercial vehicles in India (with a market share of 32.1% in
2016), the third largest manufacturer of buses in the world,[5] and the tenth
largest manufacturer of trucks.

With the corporate office located in Chennai, its manufacturing facilities are in
Ennore, Bhandara, two in Hosur, Alwar and Pantnagar.[6][7] Ashok Leyland also
has overseas manufacturing units with a bus manufacturing facility in Ras Al
Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with the
Alteams Group for the manufacture of high-press die-casting extruded
Aluminium components for the automotive and telecommunication sectors.[8]
Operating nine plants, Ashok Leyland also makes spare parts and engines for
industrial and marine applications.

Ashok Leyland has a product range from 1T GVW (Overall Vehicle Weight) to
55T GTW (Overall Trailer Weight) in trucks, 9 to 80-seater buses, vehicles for
defence and special applications, and diesel engines for industrial, genset and
marine applications.[9] In 2019, Ashok Leyland claimed to be in the top 10 global
commercial vehicle makers.[10] It sold approximately 140,000 vehicles
(M&HCV and LCV) in 2016. The company has passenger transportation options
ranging from 10 seaters to 74 seaters (M&HCV = LCV). In the trucks segment,
Ashok Leyland primarily concentrates on the 16 to 25-ton range and has a
presence in the 7.5 to 49 ton production range.

HISTORY:

6
ASHOK MOTORS: Ashok Motors was founded in 1948 by Raghunandan
Saran, an Indian freedom fighter from Punjab. By the end of the Indian
Independence Movement, he was persuaded by India's first Prime
Minister Jawaharlal Nehru to invest in a modern industrial venture. Ashok
Motors was incorporated in 1948 as a company to assemble and
manufacture Austin cars from England, and the company was named after the
founder's only son, Ashok Saran. The company had its headquarters in Chennai,
with the manufacturing plant also in Chennai. The company was engaged in the
assembly and distribution of Austin A40 passenger cars in India.

In year 1954 Indian government gave approvals to Ashok Motors to

manufacturer comet trucks the generation range of cabover trucks from Leyland
and they also received approvals to manufacture Tiger Cub lightweight bus also
by Leyland. These were the first ever models of British Leyland manufactured in
India.

The collaboration ended in 1975 but the holding of British Leyland, which was
then a major British auto conglomerate due to several mergers, agreed to assist in
technology, which continued until the 1980s. After 1975, changes in management
structures saw the company launch various vehicles in the Indian market, with
many of these models continuing to this day with numerous upgrades over the
years.

HINDUJA GROUP: In 2007, the Hinduja Group bought out Iveco's indirect
stake in Ashok Leyland. The promoter shareholding now stands at 51%. Today
the company is the flagship of the Hinduja Group, a British-based and Indian
originated trans-national conglomerate.

7
Ashok Leyland launched India's first electric bus and Euro 6 compliant truck in
2016. In June 2020, Ashok Leyland launched its new range of modular trucks,
AVTR.

In September 2020, Ashok Leyland launched the Bada Dost based on its
indigenously developed LCV platform called Phoenix. In 2024, Ashok Leyland
entered into a Memorandum of Understanding (MoU) with the Tamil Nadu
government for a Rs 1,200 crore investment.

Ashok Leyland will operate a plant for the manufacture of electric commercial
vehicles in Uttar Pradesh. The plant will produce 2,500 vehicles a year, initially,
and will gradually increase to 5,000 per year in the next decade. This facility will
mainly produce electric buses. The plant will be launched in 2025.

ASHOK LEYLAND DEFENCE SYSTEMS:

Ashok Leyland Defence Systems (ALDS) is a newly floated

company by the Hinduja Group. Ashok Leyland holds 26 percent in Ashok
Leyland Defence Systems (ALDS). The company designs and develops defence
logistics and tactical vehicles, defence communication and other systems. Ashok
Leyland is the largest supplier of logistics vehicles to the Indian Army. It has
supplied over 60,000 of its Stallion vehicles, all manufactured at the Vehicle
Factory Jabalpur (VFJ).

INTERNATIONAL OPERATIONS AND EXPORTS:

Exports of commercial vehicles contribute to a seven percent share of

Ashok Leyland's total revenues. The company has a presence in SAARC
countries like Bangladesh, Sri Lanka and Nepal, and in the Middle East countries
where it exports 3600–4000 units a year. The company has an assembly unit,
8
mainly for buses, in Ras Al Khaimah in UAE to cater to the Gulf Cooperation
Council (GCC) member states. This unit currently assembles 4000 units, which
the company plans to increase to 6000 units.

Ashok Leyland exports medium and heavy commercial vehicles to Arab

countries like Bahrain, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, UAE and
Yemen; former Soviet Union countries like Azerbaijan, Armenia, Belarus,
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan,
Uzbekistan and Ukraine; Sub-Saharan Africa; Sri Lanka; Bangladesh; Nepal; the
Philippines; Thailand and Malaysia. Every year Ashok Leyland exports about
12000 trucks to Bangladesh and Sri Lanka.

On 11 June 2012, Ashok Leyland supplied 100 Falcon buses to Ghana for $7.6
million (about ₹420 million). Ashok Leyland was awarded the first overseas
order worth $6 million for its vestibule buses from Bangladesh Road Transport
Corporation (BRTC).

IVECO PARTNERSHIP:

In the late 1980s Iveco investment and partnership resulted in

Ashok Leyland launching the 'Cargo' range of trucks based on European Ford
Cargo trucks. The Cargo entered production in 1994, at Ashok Leyland's new
plant in Hosur. These vehicles used Iveco engines and for the first time had
factory-fitted cabs. Though the Cargo trucks are no longer in production and the
use of Iveco engine was discontinued, the cab continues to be used on the Ecomet
range of trucks as well as for several of Ashok Leyland's military vehicles.

The Cargo was originally introduced in 7 and 9 long tons (7,100 and 9,100 kg)
versions; later, heavier-duty models from 15 to 26 long tons (15,200 to 26,400
kg) were progressively introduced.

9
iBUS:

Ashok Leyland announced iBUS in the beginning of 2008, as part of the future
for the country's increasingly traffic-clogged major cities. Its Rs 6-million iBus is
a feature-filled, low-floor concept bus for the metros revealed during the Auto
Expo 2008 in India. This low-floored iBus will have the first of its kind features,
including anti-lock braking system, electronic engine management and passenger
infotainment. The executive class has an airline-like ambiance with wide LCD
screens, reading lights, audio speakers and, for the first time, Internet on the
move. A GPS system enables vehicle tracking and display of dynamic route
information on LCD screens, which can also support infotainment packages
including live data and news. The bus will probably be equipped with an engine
from the new Neptune family, which Ashok Leyland also introduced at this
exhibition, which is ready for the BS4/Euro 4 emission regulations and can be
upgraded to Euro 5. Leyland's iBus has hybrid technology.

10
 2.1 NEED OF THE STUDY

 The study of debt collection strategies is crucial for organizations to

navigate the complexities of debt management effectively. By adopting a
comprehensive and strategic approach to debt collection, businesses and
financial institutions can enhance financial performance, operational
efficiency, customer relationships, and regulatory compliance, ultimately
driving sustainable growth and success.

 Analyzing debt collection data and performance metrics provides valuable

insights that inform strategic decision-making, helping organizations adapt
and refine their collection strategies based on real-time feedback.

 Adopting best practices and innovative approaches in debt collection can

differentiate organizations from competitors, improving market
positioning and customer loyalty.

 Ensuring fair and transparent debt collection practices that respect debtor's
rights and privacy is not only ethically responsible but also helps build a
positive reputation and brand image. Balancing effective debt collection
with customer-centric approaches helps maintain trust and preserve long-
term relationships with clients. Understanding the importance of clear and
respectful communication can help mitigate disputes, improve customer
satisfaction, and enhance the overall customer experience.

 Effective debt collection strategies ensure timely payment, improving cash

flow and liquidity, which are critical for sustaining operations and growth.
Implementing proactive collection methods can reduce the risk of bad
debts, minimizing financial losses and write-offs.

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 2.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

 A Study on the Optimization of Debt Collection Strategies in Ashok

Leyland Ltd.

SECONDARY OBJECTIVE:

 To find out the debt collection strategy, that appears to be the best in the
view of the Organization.
 To reduce the amount of bad debts within the organization by
implementing proactive measures, early intervention strategies, and
rigorous credit assessment processes to identify and manage high-risk
internal accounts.
 To provide clear and concise instructions on how to make payments,
including payment methods, deadlines, and any associated fees or
penalties, to facilitate easy and hassle-free payment processing for debtors.
 To ensure that automated email communications comply with relevant
regulations, laws, and industry standards governing debt collection
practices, thereby mitigating legal risks and protecting the organization's
reputation.
 To encourage debtor engagement and feedback by inviting recipients to
contact the organization with any questions, concerns, or inquiries
regarding their debts, thereby fostering open communication and
addressing issues promptly.
 To define a Variance analysis from the collected secondary data, to ensure
the debt recovery growth percentage.

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 2.3 SCOPE OF THE STUDY

 Understanding the current landscape of the debt collection industry,

including market trends, challenges, and opportunities.

 Analysing the role and significance of debt collection in various sectors,

such as banking, finance, healthcare, retail, and utilities.

 Investigating different debt collection strategies, methodologies, and

techniques employed by organizations to recover outstanding debts.

 Identifying best practices and innovative approaches to enhance collection

rates, reduce costs, and improve operational efficiency.

 Exploring the role of technology, automation, and data analytics in

modernizing debt collection processes.

 Assessing the adoption of advanced tools, software, and platforms to

streamline collection efforts, improve accuracy, and enhance customer
engagement.

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 2.4 LIMITATIONS OF THE STUDY

 Limited access to accurate, up-to-date, and comprehensive data on debt

collection practices, performance metrics, and customer behaviors can
constrain the depth and validity of the study.

 Differences in debt collection laws, regulations, and practices across

countries and jurisdictions can complicate comparative analysis and
standardization of strategies.

 Ethical considerations related to confidentiality, privacy, and fair treatment

of debtors showing limit access to certain information and restrict the scope
of the study.

 The diversity and complexity of industries, markets, and customer

segments involved in debt collection can make it challenging to develop
one-size-fits-all strategies.

 Reliance on outdated technology, lack of access to advanced tools, and

limited expertise in data analytics can hinder the adoption of innovative
approaches and automation in debt collection processes.

 The complexity of human behavior, psychology, and decision-making

processes involved in debt repayment can introduce variability and
unpredictability in collection outcomes.

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 2.5 REVIEW OF LITERATURE

 Ahmed Ali Ahmed Sultan, Relationship between debt collection

practices and customer satisfaction in financial institutions in Somalia
(2023)

Customer satisfaction is crucial for performance of financial institutions

hence the need to understand the factors that influence it. The relationship
between debt collection strategy and customer satisfaction in financial
institutions in Somalia was investigated through a cross sectional survey of
215 respondents from whom data was collected using a structured
questionnaire. Specifically, the effect of reactive and proactive debt
collection strategy as well as that of debt collection behavior on customer
satisfaction in financial Institutions in Somalia was examined. Both
descriptive and inferential statistics were used to analyze data and all
hypotheses were tested at 5% significance level where reactive debt
collection strategy and debt collector behaviour had a significant positive
relationship with customer satisfaction. However, proactive debt collection
strategy did not significantly influence customer satisfaction. It was
recommended that financial institutions in Somalia should focus on
enhancing their reactive debt collection strategies and debt collector
behaviour to improve overall performance through customer satisfaction.

 Andris Saulı̄ tis, Nudging debtors with non-performing loans:

Evidence from three field experiments (2023)

This study aims to explore how various nudges that have successfully
increased the payment discipline among borrowers with performing loans
affect the behavior of the defaulted debtors. In three field experiments

15
 involving 32,000 borrowers, debtors were randomly assigned to receive
reminders that used personalized language, mentioned economic
consequences, and prosocial motives. In one experiment, the design of the
envelope varied. The experimental results show that simply nudging
defaulted individuals does not work. Although every next reminder that
debtors receive increases the payment rate, the effect is rather small.
Moreover, sending reminders when the promise to make a payment on a
debt has already been made can trigger a repeated default. I also find that
a red envelope design backfires on collection efforts. The findings offer a
fuller understanding of the behavior of defaulted debtors and suggest
policy implications in debt repayment and recovery of non-performing
loans.

 Albert Reixach Sala & Pere Verdés Pijuan, Public Debt in Late
Medieval Crown of Aragon: A(Nother) Financial Revolution? (2023)

The main objective of this chapter is to place the complex phenomenon of

public debt in the Crown of Aragon at the end of the Middle Ages within
the general historiographic context. The origins and development of public
debt have aroused enormous interest during the last decades among
historians, who have considered this financial resource as a fundamental
factor in explaining the economic and political evolution of Western
Europe since the medieval period. The Aragonese case, however, has had
little resonance in the general historiography, probably because the Crown
of Aragon—apparently—did not correspond to the models deemed as
successful (Italy, Holland, England), which has usually been associated
with the first issuance of public debt. This relative ignorance contrasts with
the numerous studies published in recent years in Spain on the subject
(basically, in the territories of the former crown) and also with the
16
 hypotheses formulated by some authors, who find clear parallels between
the Aragonese and the Italian case, Dutch or English. Taking as reference
these studies, this article aims to retrace the origins and the main treats of
the public debt consolidated in the Crown of Aragon and to examine similar
patterns in order to integrate the case into the general historical account.

 Alfian Hidayat, Analysis of Foreign Debt in National Development

Financing: A Case Study of Foreign Debt in Financing Infrastructure
Development in Mandalika Special Economic Zone (2023)

The abstract should summarize the contents of the paper in short terms, i.e.
150-250 words. The realization of the financing infrastructure
development for Mandalika Special Economic Zone (Mandalika SEZ)
through a foreign debt scheme, financed by Asian Infrastructure
Investment Bank, has caused various problems such as human rights,
social, economic, and environmental issues. This debt problem has
received resistance at the grassroots level and is indicated to be included in
the category of illicit debt. Therefore, this research aims to explain the
reasons behind the policy of financing infrastructure development in
Mandalika SEZ through foreign debt schemes. The research uses an
analytical descriptive research method and is carried out through several
stages, namely data collection, data reduction, data presentation, and
conclusion drawing. By using theory of loan pull and theory of loan push,
this research puts forward the main argument that the policy of financing
infrastructure development in Mandalika SEZ through foreign debt
schemes is due to the pull factor, which consists of an offer of a foreign
debt loan sourced from AIIB, and the push factor, which is caused by
pressures from business groups in Indonesia.

17
 Chen Chen, Naming as business strategy: an analysis of eponymy and
debt contracting (2023)

This study proposes that naming a firm eponymously is a mechanism that

small private firms can use to signal their superior financial performance
and commitment to fulfill debt contract obligations. Using 621,614 small
private firms in Europe over the period 2008–2018, we find that small
private eponymous firms pay significantly lower interest on their debts and
have more long-term debt than non-eponymous firms. Our findings are
robust to various controls and placebo tests. Additional analyses show that
eponymy lowers the cost of debt and facilitates long-term debt via
reputation signaling and private information. We also document that the
effect of eponymy on debt contracting is most pronounced when there is
less financial development and when firms’ dependence on external
financing is low, consistent with the idea that high-quality firms opt for
eponymy when they consider less external financing.

 Chen, Hong-Mei, An Empirical Study of Social Debt in Open-Source

Projects: Social Drivers and the “Known Devil” Community Smell
(2024)

Social debt, the accumulation of unforeseen project costs from suboptimal

human-centered software development processes, is an important
dimension of technical debt that cannot be ignored. Recent research on
social debt focusing on the detection of specific social debt indicators,
called community smells, has largely been conceptual and few of them are
operationalizable. In addition, the studies on the causes of community
smells also focused on group process instead of individual tendencies. In
this paper we define and investigate four social drivers which are factors

18
 that influence individual developer choices in their collaboration in 13
open-source projects over four years: 1) inertia, 2) co-authorship (by
chance or by choice), 3) experience heterophily, and 4) organization
homophily. Building on previous studies and theories from sociology and
psychology, we hypothesize how these drivers influence software quality
outcomes. Our network analysis results include a contradiction to existing
studies about experience heterophily and reveal a new community smell,
which we call “Known Devil”, that can be automatically detected.

 Cenying Yang, When Less Is More? Deep Reinforcement Learning-

Based Optimization of Debt Collection (2024)

Artificial intelligence (AI) presents opportunities to revolutionize financial

services. In the current study, we focused on the microloan debt-collection
context wherein collectors usually follow a strict sequence of “harsh” debt-
collection actions, such as notifying borrowers' social contacts about their
delinquencies. We applied a deep reinforcement learning (DRL) algorithm
to examine whether such actions are necessary and derived optimal
collection strategies on a fine-grained dataset. Installment-level and loan-
level optimized results reduced the frequency of “harsh” actions by 49.05%
and 60.19%, respectively. This suggests that microloan platforms should
deploy collection actions more cautiously. More interestingly, we showed
that installment-level and loan-level optimizations suggest somewhat
different debt collection patterns across installments in a loan: installment-
level optimization overall recommends avoiding the use of any “harsh”
actions; by contrast, loan-level optimization recommends using very few
actions in early stages but increasing the intensity of applications of
(“harsher”) actions in late stages. Generally, loan-level optimization yields
a higher recovery rate and greater economic gains than installment-level
19
 optimization or other commonly-used debt-collection strategies. This is
probably owed to the fact that our DRL algorithm could capture the
potential correlations across installments when optimizing at the loan level.
Despite the overall superiority of loan-level optimization, our
heterogeneity analysis further revealed that installment (loan)-level
optimization should be used when borrowers with good socio-economic
backgrounds fail to repay early (late) installments in a loan duration.
Otherwise, the original intense strategy is more effective. Our findings
offer concrete, actionable, and personalized guidance on debt-collection
practice.

 Danyu Zhao, Research on differential game strategy of debt

restructuring supported by government (2023)

This paper studies the debt restructuring equilibrium decision problem

composed of creditors and debt enterprises with the participation of the
government and asset management companies. With the differential game,
the dynamic optimization models of debt restructuring under three
situations: centralized decision-making, decentralized decision-making,
and Stackelberg game after introducing cost-sharing contract are
constructed, respectively. The optimal equilibrium strategy of debt
restructuring, the optimal trajectory of debt restructuring synergy, and the
optimal profit under three decision-making situations are investigated and
compared. It is found that the synergy effect and total profit of debt
restructuring are the highest under centralized decision-making, and the
Stackelberg game is superior to decentralized decision-making, which
shows that the cost-sharing contract can achieve the coordination of overall
interests, improve the debt restructuring environment, and promote the
debt restructuring process. Finally, the sensitivity analysis of relevant
20
 parameters is carried out through an example, which verifies the
effectiveness of the conclusion and provides the scientific basis for the
government and asset management companies to participate in debt
restructuring successfully.

 Dr. Masroor Khanum, Debt Trap Diplomacy of China in the Eyes of

International Media (2023)

The word “debt diplomacy” is becoming a new strategic game to gain

political influence and acquire strategic assets by using the weapon of
leveraging debt over low-economic nations. The deliberative trap of
developed countries such as China is using the strategy of development
finance in order to entrap economies with the purpose to exploit another
country's benefits. The word debt diplomacy is first being used by an Indian
academic early in the year of 2017. This created a surge in the global
market. Debt diplomacy can be expressed as, the structure of the economic
circle where there is the provision of loans plunging into a condition where
the borrowing country falls into the trap of lending country debt. The article
is a qualitative document analysis of Chinese policies towards less
developed countries. It finds whether China has been so exploitative or not
to the countries to whom it gave some development loans. The article takes
a close view at the international media and academic writing to analysis
the allegation of debt trap levelled by the Western community against the
Chinese developmental loans for the less developed part of the world.

 Damian Kedziora, Sami Hyrynsalmi, Turning Robotic Process

Automation onto Intelligent Automation with Machine Learning
(2023)

21
 Robotic Process Automation (RPA) technology has in the past few years
become a ground-breaking trend that revolutionised services all around the
globe. Substituting human workforce with software robots augmented with
intelligent elements, RPA is being seen as a key enabler for many
commercial, as well as non-commercial organisations to reorganise, re-
engineer, and streamline their approach to operational excellence, at the
same time achieving impressive results in employee empowerment and
digital transformation. This industry experience case discusses the learning
from the successful deployment of RPA technology blended together with
machine learning (ML), in order to achieve intelligent automation (IA) of
invoice processing delivered by a Finnish consultancy company. The work
calls for further academic research to develop and enhance understanding
of this emerging technology, from the perspective of organisation.

 Felix Bracht, The signaling value of legal form in entrepreneurial debt

financing (2021)

This study examines the impact of mandatory legal form choices on

startups' debt financing opportunities. We posit that an entrepreneur's initial
legal form decision serves as a reliable signal to outside lenders, reducing
adverse selection concerns. Using data from German startups, we find that
limited liability companies with low capital requirements
disproportionately secure less debt than their high-capital counterparts.
This financing disparity is particularly pronounced for younger firms in
areas dominated by small relationship banks, but it diminishes with firm
age. Our findings highlight the unintended consequences of recent global
deregulation efforts.

22
 Fakude, Gabriel Bheka, The development of sustainability debt capital
markets in South Africa : an analysis through Roger's diffusion of
innovation theory (2020)

South Africa is a signatory to the global initiatives that are aimed at addressing
climate change and has committed to transitioning the economy away from a
dependence on fossil fuels. The United Nations sustainable development goals
have inspired innovation in financial markets. The research was undertaken to
understand the current state of financial innovation and the factors that
catalyse its diffusion in the context of South African financial markets. The
chosen research methodology was qualitative for a deductive analysis
approach, and semi-structured interviews were conducted with a non-
probability sample of relevant industry professionals. The results are
representative of a cross-sectional time horizon. The debt and loan capital
markets of South Africa have created two new financing mechanisms that are
aimed at giving effect to the country’s nationally determined contribution. The
research reveals that the infrastructure to support the development and
diffusion of sustainability debt capital market instruments is in the early stages
of development and is driven at the governmental level in collaboration with
industry stakeholders. Commercial banks dominate the nascent sustainability
social system through significant resource advantages, access to data and
information and distribution networks.

23
 3.1 RESEARCH METHODOLOGY

RESEARCH

Research refers to the systematic and organized process of

investigating, analyzing, and interpreting information to discover new
knowledge, validate existing theories, or solve specific problems. It involves a
structured approach to inquiry, exploration, and experimentation aimed at
generating insights, understanding phenomena, or advancing understanding in a
particular field of study.

RESEARCH METHODOLOGY

Research methodology refers to the systematic and structured approach

used to conduct research, guiding the researcher in planning, executing, and
evaluating a study to ensure its validity, reliability, and credibility. It encompasses
the techniques, procedures, tools, and strategies employed to collect, analyze, and
interpret data or information for the purpose of answering research questions,
testing hypotheses, or solving specific problems.

RESEARCH DESIGN

Research design refers to the overall structure, plan, and strategy

employed to conduct a research study, guiding the researcher in systematically
investigating, collecting, analyzing, and interpreting data or information to
address specific research questions, objectives, or hypotheses. It outlines the
blueprint or framework that organizes the research process, methodologies,
techniques, and procedures to ensure the validity, reliability, and credibility of the
study.

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AREA OF RESEARCH

The term "area of research" refers to a specific field, discipline,

subject, or topic that researchers focus on when conducting a study or
investigation. It represents the particular domain, sector, or aspect of knowledge,
inquiry, or exploration that researchers choose to explore, analyze, and examine
in depth to generate new insights, understanding, and advancements.

DATA COLLECTION

PRIMARY DATA

Primary data refers to original data or information collected

firsthand by researchers directly from the source or through direct interaction and
observation, specifically for the purpose of addressing a particular research
question, objective, or hypothesis. It is data that has not been previously
published, analyzed, or interpreted by others, representing fresh, firsthand
insights and observations gathered through systematic research methods and
techniques.

SECONDARY DATA

Secondary data refers to data or information that has been previously

collected, processed, and published by others for purposes other than the current
research study. It represents existing data sets, records, publications, reports, and
other sources of information that researchers utilize to support, complement, or
extend their research findings and insights without directly collecting new data
from primary sources.

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CONVENIENCE SAMPLING:

Convenience sampling is a non-probabilistic method used in research, where

researchers select participants based on their ease of access or availability. This
method is quick and cost-effective and also gathers information from known
sources only

STATISTICAL TESTS USED

Normality test:

A normality test is used to determine whether sample data has been drawn from
a normally distributed population (within some tolerance). It is generally
performed to verify whether thedata involved in the research have a normal
distribution.

Mann-Whitney U Test:

The Mann-Whitney U test, a non-parametric statistical test, compares the

distributions of two independent groups to determine if they significantly differ
from each other. It assesses whether one group's values tend to be higher or lower
than the others. It's particularly useful when the data don't meet the assumptions
of normality required by parametric tests. The test calculates a U statistic based
on the ranks of the data and evaluates its significance to determine if there's a
statistically significant difference between the two groups. The test is widely
applied in various fields to compare outcomes, scores, or measurements between
two distinct groups.

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Correlation:

A correlation is a statistical measure that describes the extent to which two

variables change together. It quantifies the relationship between two sets of data.

Kruskal-Wallis H test:

The Kruskal-Wallis H test refers to a method of matching the medians of more

than two groups to ascertain whether the samples have the same group source as
an origin or not. It applies to the distribution of a less or non-parametric
population for contrasting more than two distinct and equal-sized data samples.
This test examines the null hypothesis, which claims that ‘k’ samples from the
same population had identical median values. It indicates the stochastic
dominance of one sample of the variable over the other.

Variance Analysis:

Variance analysis is a technique used in financial management to analyze the

difference between planned or budgeted figures and actual results. It involves
comparing the actual performance of a business with its planned or budgeted
performance to identify and understand the reasons for any differences. Variance
analysis is widely used in various aspects of business, including budgeting, cost
control, performance evaluation, and decision-making.

Net Collection:

Net Collection refers to the actual cash received by a business for goods sold or
services provided, taking into account any adjustments for discounts given to
customers or returns of merchandise.

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Recoveries:

Recoveries refers to the amounts of overdue or delinquent debts that have been
successfully collected by a creditor or a debt collection agency. These are
payments received from debtors who were previously unable or unwilling to pay
their debts in full and have since made payments to settle their outstanding
obligations.

Gross Collection:

Gross collection" typically refers to the total amount of money collected before
any deductions or adjustments are made. In the context of debt collection, gross
collection refers to the total payments received from debtors without subtracting
any fees, commissions, discounts, or other deductions.

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