A formal account of bullshit jobs

ABSTRACT: Over the last decade or so, Tanzania's economy has registered a significant growth in the rate of financial inclusion. The level of financial exclusion has consistently declined from 55% to 28% between 2009 and 2017 respectively. Moreover, the percentage of the adult population using formal financial services has almost quadrupled between 2009 and 2017. However, available statistics also illustrate that the participation of youth population in the formal banking, insurance, credit and savings products and services remain abysmally low. Furthermore, less than 50 percent of youth borrow from formal financial institutions. Indeed, lack of access to finance is frequently singled out as the major obstacle among youth to engage in entrepreneurial activities. Although much has been done to address financial inclusion, relatively little is known about the determinants of youth financial inclusion as well as the impact of financial inclusion on youth's willingness to engage in entrepreneurship in Tanzania. This study uses World Bank Financial Inclusion Index, (2018) to examine both the determinants of financial inclusion and the effects of financial inclusion on youth willingness to engage in entrepreneurial activities in Tanzania. In doing so, we employ propensity scores matching (PSM) and the treatment effects models. Financial inclusion is measured by using three indicators namely; "formal account", "formal savings" and "formal credit". The results from the logit PSM regression indicate that being employed increases the likelihood of having a current account or a savings account in a formal financial institution amongst the young people. In the case of formal account and formal saving, attaining a secondary education level increases the probability of having a formal account and a formal saving account relative to those with primary education. The estimated results from the Average Treatment Effect, whose computation is built on the propensity scores and the kernel matching algorithm show that having a formal current account, formal saving account and access to formal credit services positively affect the willingness of youths to engage into entrepreneurship. The policy implication is that government policy that enhances expansion of credit to youth remains paramount as a panacea to engage youth in entrepreneurial activities.

PurposeThis study aims to analyze the financial inclusion of individuals living in the Middle East, North African, Afghanistan and Pakistan (MENAP). It intends to show the influence of these individuals’ characteristics on financial inclusion, using the World Bank Global Findex Database 2014 for 16 countries in the region.Design/methodology/approachA probit model is used to examine the marginal effect of financial inclusion of the characteristics of individuals living in the MENAP region. These characteristics include gender, age, income and education. Individual characteristics that are linked to the main financial-inclusion indicators include having a formal account and formal saving and borrowing. The barriers to having a formal account, alternative borrowing sources and motivations for borrowing are also linked to the respondents’ characteristics.FindingsThe results indicate that females and the poor are less likely to be included in financial systems, while education level enhances financial inclusion. As disadvantaged people consider access to credit is important to improving their lives, the study finds that the poor are more likely to borrow for medical issues than for other needs. While Islam is the majority religion in the MENAP region, it is not considered a barrier to having a formal bank account. Furthermore, people in different income quintiles are more likely to use informal financial sources, while the educated are more likely to use formal ones.Practical implicationsThe results show that policymakers in MENAP should make more of an effort to enhance financial inclusion as a way to enhance economic development in the region. Also, governments institutions, such as central banks, financial ministries and other institutions, could build on these results to enhance financial inclusion as a way toward development in the MENAP region.Originality/valueTo the author’s best knowledge, this is the first study to examine the influence of individuals’ characteristics on financial inclusion in the MENAP region.

We extend the literature on accountability in an experimental setting to examine the influence of formal accountability, individual-level perceived accountability and their interactions on accountants’ aggressive judgements in China. Individual-level perceived accountability is based on the phenomenological perspective, which recognises that its intrinsic nature is derived from multiple sources known as the ‘web of accountabilities’ in socialisation processes. Researchers suggest that perceived accountability is fidelity to ‘personal conscience’ in individuals’ moral values and their internal sense of moral obligations. Our findings show that when formal accountability was imposed, accountants were not aggressive in making their reporting judgements, irrespective of their scores on perceived accountability measures. In contrast, when formal accountability was not imposed, accountants who scored higher (lower) on perceived accountability measures were less (more) aggressive in making reporting judgements. Our results further show that imposition of formal accountability is not equally important in influencing the judgements of accountants who scored higher on perceived accountability measures and those who scored lower on those measures. Our findings have implications for determining which accountability frameworks could be developed to assist global standard setters, national regulators and organisations, including accounting firms, constrain aggressive financial reporting so as to improve financial reporting quality.

PurposeThe purpose of this paper is to explore the dynamic relationship between formal and non-formal processes of accountability in a public services context.Design/methodology/approachThe paper presents a case study of the impact of the Health and Social Care Act (2012) on the practices of Health and Wellbeing Board (HWB) members. It draws upon multiple data sources, including in-depth interviews with the members, comprehensive archival data published by the HWB (2011–2019), and observations of HWB public meetings. We utilise the concept of dynamic duality (Li, 2008) to further theorise the relationship between formal and non-formal processes of accountability and how they mutually transform one another.FindingsThe case illustrates the role of formal and non-formal processes of accountability at a HWB in England. Moreover, the case study reveals the relationship and interaction between the formal and non-formal accountability processes and how they change and transform each other over time. We find that whilst non-formal accountability processes were strengthened by a historical legacy of partnership working, over time the dynamics at play led to the development of formal accountability processes through more sophisticated performance systems, which in turn transformed non-formal accountability processes.Originality/valueThe paper presents a more holistic conceptualisation than articulated in prior accountability literature, dynamic duality, on the relationship between formal and non-formal accountability processes. Through application of this conceptualisation to a HWB in England, the paper spotlights the inter-relationship between formal and non-formal processes of accountability, and how they have the potential to transform each over an extended time-period.

Regulation has in many cases been delegated to independent agencies, which has led to the question of how democratic accountability of these agencies is ensured. There are few empirical approaches to agency accountability. We offer such an approach, resting upon three propositions. First, we scrutinize agency accountability both de jure (accountability is ensured by formal rights of accountability ‘fora’ to receive information and impose consequences) and de facto (the capability of fora to use these rights depends on resources and decision costs that affect the credibility of their sanctioning capacity). Second, accountability must be evaluated separately at political, operational and managerial levels. And third, at each level accountability is enacted by a system of several (partially) interdependent fora, forming together an accountability regime. The proposed framework is applied to the case of the German Bundesnetzagentur's accountability regime, which shows its suitability for empirical purposes.Points for practitionersRegulatory agencies are often considered as independent, yet accountable. This article provides a realistic framework for the study of accountability ‘regimes’ in which they are embedded. It emphasizes the need to identify the various actors (accountability fora) to which agencies are formally accountable (parliamentary committees, auditing bodies, courts, and so on) and to consider possible relationships between them. It argues that formal accountability ‘on paper’, as defined in official documents, does not fully account for de facto accountability, which depends on the resources possessed by the fora (mainly information-processing and decision-making capacities) and the credibility of their sanctioning capacities. The article applies this framework to the German Bundesnetzagentur.

Constructionism in Logic

Using individual level data from the World Bank Global Findex for 2017, this study analyzes the level of financial inclusion and explores its main determinants in Turkey. In particular, it explores how individual characteristics (i.e. gender, age, income, education) are associated with the usage of formal financial services and impinge on the perceived barriers to account ownership among financially excluded individuals in Turkey. The results of the study indicate that being man, older, richer and more educated increases the likelihood of having a formal account and formal saving. Moreover, mobile banking is found to be driven by identical individual characteristics with that of other traditional formal financial services usage. As regards with the main obstacles for not having a formal account, each one of the individual attributes seems to be significant in explaining different voluntary and involuntary self-reported barriers behind financial exclusion. The findings are of remarkable importance for designing policies to promote financial inclusion in Turkey

In a recent paper, Mammen (Integrative Psychological and Behavioral Science, 50, 196-233, 2016a) brought novel arguments into the discussion concerning the importance of being able to single out and track objects through space and time. Mammen offered a formal account of two basic, yet distinct, ways in which we as human beings encounter objects in the real world, that is, sense and choice categories. In this paper I discuss aspects of his theory and in particular the Theorem of Correspondence. I shall attempt to argue that Mammen's formal account is indeed a novel and powerful analytical generic tool allowing us to see the important relevance in different domains of being able to establish choice categories. Meanwhile, I will attempt to show that evidence from the so-called multiple object tracking studies -- even though these use highly artificial stimuli -- provide compelling evidence in support of Mammen's formal account.

This essay addresses the power of formal analysis, and exemplifies some of the important issues that arise when we use formal analyses to address the substantive issues of kinship terminologies – and, through them, of category systems in general. These examples point to where a broad empirical understanding of kin terminologies can take us and indicate something of the potential import of kinship studies for our understanding of other cultural domains. The notions of ‘formal account’, ‘descriptive theory’ and ‘explanatory theory’ are considered, as is the role of explicitness and the question of what might constitute the (or an) ‘explanation’ of a terminology. The current status of kinship terminological analysis is evaluated.

This paper assesses the determinants of financial inclusion among women petty traders in Dodoma city. Specifically, the paper examines women petty traders’ status of using formal accounts, formal savings, formal credit, and mobile money accounts and socioeconomic determinants of financial inclusion. The paper employed a cross-sectional research design whereby structured and semi-structured interviews and documentary review methods were used for data collection. Non-probability sampling techniques were employed to select a sample of 200 women petty traders. Data analysis employed in this study included both inferential and descriptive analysis. The result of the study indicates that the majority of women petty traders use mobile money accounts, and use informal savings (save money at home, through VICCOBA/ person outside the home), also they lack enough money for opening/maintaining a formal account. The binary probit model result indicates that age, years of schooling, household size, marital status, lack of required documents, costs of financial service, and income are significant determinants of financial inclusion. Therefore, financial institutions should offer basic or low-fee accounts with a reduced/simplified documentation requirement. Government payment should be conducted through banks to promote savings in formal financial institutions and promote financial literacy, and data on financial inclusion among women petty traders should be collected and analyzed to promote the formulation of evidence-based policy

Interpretations and explanations of experience that make consequences interpretable and actions imaginable are said to be given by accounts. Formal accounting systems used in economic, social and political institutions are seen as portraying their political realities. The purpose of this study is to explore connections and tensions between the realities portrayed in the accounting systems and the governance structures of local governments in two counties, one in Norway and one in Russia. The formal accounting and governmental systems of these two counties are described, analyzed and compared using accounting and democratic governance perspectives. The article ends with a discussion of interrelationships and tensions between accounting and democratic governance. Through comparing the democratic governing structures of these two counties with the accounting systems employed, three main conclusions are presented. Firstly, it is shown that principal–agent relations influence accounting procedures that symbolize democratic governance. Secondly, the accounting language applied does not portray local politicians. Thirdly, accounting norms do not reflect democracy and democratic governance. In summary, the study shows that even very formalized accounting offers flexibility by way of giving meaning to processes and structures in organizations characterized by strictly formalized structures.

This paper identifies the firm-specific information events that drive economically relevant stock price and trading volume changes. It employs a novel methodology that is not constrained by an arbitrarily determined set of information events and allows for event anticipation and information leakage prior to public disclosure. We find that no less than 65% of significant price changes and trading volume movements in our sample can be readily explained by public domain information. In addition, we find that a parsimonious set of news categories represent the key drivers. Sell-side analyst stock recommendations and earnings forecast revisions as a class, unaccompanied by other newsreleases, dominate all other news categories in terms of significant market reaction. They explain 17.4% of major market-adjusted price changes and 16.1% of significant trading volume activity triggered by reported corporate news events. In particular, this compares with 17.0% (15.2%) of economically significant price changes (trading volume movements) driven by firms' formal accounting releases. However, taking into account the relative magnitude of market response to different news releases, firms' formal accounting disclosures dominate within this domain. As such, we conclude these are not fully anticipated by apparently more timely market disclosures, and that the existence of news services and the activities of the sell-side analyst are not substitutes for a firm's interim and preliminary results.

Financial inclusion is considered one of the important determinants for improving the incomes of households. This research analysis is to estimate the impact of financial inclusion on household incomes in China. The data was obtained from China Household Financial Survey (CHFS) for the year 2017. This paper measures financial inclusion through its four dimensions, namely formal account, formal saving, formal credit, and formal insurance, based on the definition of financial inclusion by the World Bank, 2017. Three different econometric techniques, namely Ordinary Least Squares, Quantile Regressions, and Instrumental variable methods, are used to empirically test the influence of inclusive finance on income in China. The instrumental-variable method was used to cope with the problem of endogeneity. The results of this research showed a significant relationship between households’ incomes and formal accounts, formal savings, formal credit, and formal insurance in China. This study found that the main driver of household income is financial inclusion, as these two are positively correlated. The main determinants of financial inclusion are significant variables for households’ incomes in China. Thus, this study concluded that financial inclusion helps to reduce income inequality. Hence, this research work recommended that policymakers in China should devise such policies to further improve the status of financial inclusion, ensuring a reduction in income inequalities.

At 47e–53c of theTimaeusPlato presents his most detailed metaphysical analysis of particulars. We are told about the construction of the physical universe, the ways we can and cannot talk about the phenomena produced, and about the two causes – Necessity and Intelligence – which govern the processes and results of production. It seems to me that we are told too much and too little: too much, because we have two accounts of the generation of phenomenal particulars – one, the ‘formal account’, which makes use of the receptacle, Forms and form-copies, and a second, the ‘geometrical account’, which appeals to geometrical shapes, the Demiurge and, apparently, matter; too little, because there is insufficient guidance as to how to relate the two accounts.

PurposeIt is common to hear the phrase “I have a bank account, but I rarely use it”. This phrase describes what formal account inactivity means. This study explores formal account inactivity and how it is a setback for financial inclusion.Design/methodology/approachThe study relies on the technology acceptance model and the technology impact model, and it draws insight from the 2021 global findex dataset.FindingsFormal accounts may remain inactive if adults feel that they have no need for an account, or the bank or financial institution is too far away from them, or they do not have enough money to use an account, or they don’t feel comfortable using the account by themselves or they do not trust banks or financial institutions. Women, uneducated people, unemployed people and poor people are more likely to have an inactive formal account than men, educated, employed and rich people. Asian countries (e.g. India, Nepal, Sri Lanka, Lao DPR), African countries (e.g. Ethiopia, Comoros, Morocco) and South American countries (e.g. Ecuador) have higher number of inactive formal accounts. The consequences and costs of formal account inactivity include decrease in the accountholder’s financial and economic empowerment, increased reliance on cash-based transactions, lack of awareness about new financial services and products, increased reliance on exploitative informal financial service providers, decrease in economic growth, insolvency risk for financial service providers and lower tax revenue for the government.Originality/valueThis study contributes to the literature that examines the consequences of financial inclusion, but which have not examined formal account inactivity as a consequence of financial inclusion.