Fintech and financial markets: new research directions

Purpose: The aim of the study was to assess the relationship between financial literacy and investment behavior among millennials. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Several studies have highlighted a significant relationship between financial literacy and investment behavior among millennials. Findings suggest that millennials with higher levels of financial literacy tend to exhibit more proactive investment behaviors, such as saving for retirement, diversified portfolio allocation, and increased participation in the stock market. Additionally, greater financial literacy correlates with better understanding of investment products and associated risks, leading to more informed decision-making. Conversely, those with lower financial literacy are more prone to behavioral biases, such as overconfidence or risk aversion, which can hinder their investment activities. These findings underscore the importance of promoting financial education initiatives targeted at millennials to enhance their investment knowledge and ultimately improve their financial well-being. Implications to Theory, Practice and Policy: Behavioral finance theory, human capital theory and social learning theory may be use to anchor future studies on assessing the relationship between financial literacy and investment behavior among millennials. Financial institutions, educational institutions, and employers should collaborate to develop tailored financial education programs targeting millennials. Policymakers should advocate for the integration of financial literacy into formal education curricula at both the secondary and tertiary levels.

Financial Literacy, Pension Planning, and Investment Behavior - A Comparative Study between Austria and Switzerland

M OST theoretical and empirical work on the determinants of individual earnings has placed special emphasis on an individual's educational attainment and on his or her years of work experience. Although interpreting the effects of education on earnings is relatively straightforward,1 the proper interpretation of the effects of experience on earnings is much less clear. It is certainly true that earnings tend to rise with years of experience, but the nature of the underlying mechanism that generates that increase is still largely an unresolved issue. An understanding of the way in which experience increases earnings is especially critical for the analysis of wage differentials by race and sex. Previous empirical research has shown that black men and both black and white women have flatter experience-earnings profiles than white males and that differences in the returns to experience account for a large portion of observed wage differences.2 The most widely accepted interpretation of the relationship between experience and earnings is that of the human capital model, which considers years of work experience as a proxy for unobservable investment in on-the-job training.3 According to the human capital model, wage differentials among individuals over the life-cycle are largely the result of differential patterns of investment in human capital, primarily in the form of investments in on-the-job training. Most human capital training models have been developed for the case of training that increases worker productivity in more than one firm (general training) as opposed to specific training that increases productivity in only one firm. It is frequently argued that because women expect to have a less regular pattern of labor force participation, they have a shorter work horizon than otherwise similar men and, thus, they have clear economic incentives to invest in less on-the-job training.4 As a result, women will, in general, have accumulated less human capital than men with the same number of years of experience and, consequently, their returns to experience would be expected to be lower. For black males, lower human capital investment is attributed to discrimination and/or their presumed poorer quality of schooling. Discrimination reduces the value of any potential investment, while poor schooling is thought to increase the costs of acquiring training.5 An alternative view of the earnings-experience relationship draws on models of labor market segmentation.6 These models differ from the human capital model primarily in their focus on the characteristics of jobs and job markets, rather than the characteristics of individuals. Earnings are thought to be largely determined by the labor market in which an individual works rather than the skills (or human capital) he or she possesses. Training itself is viewed as being largely technologically determined by the design of jobs, so that a specified amount of training is intrinsic in any given job. An individual acquires training by first gaining access to a job that provides training; that is, jobs and job markets intercede between an individual and investment in on-the-job training. Segmented market theorists usually argue that because hiring decisions involve a considerable amount of subjective input there is ample opportunity to practice discrimination. They cite entry level discrimination as a major institutional barrier between the primary and secondary sector, Received for publication January 17, 1978. Revision accepted for publication November 1, 1978. * Institute for Social Research and University of Michigan, and University of Delaware, respectively. 1 A recent review of this literature is given in Blaug (1976). 2 For example, see Mincer and Polachek (1974), Blinder (1973). 3The basic references are Becker (1964), Ben-Porath (1967), and Rosen (1972). 4 Mincer and Polachek (1974); Johnson and Stafford (1974). 5 The effect of discrimination on investment varies in different versions of the human capital model. It has no effect in a Ben-Porath type model, but reduces optimal investment in Rosen's model. 6 This model was popularized by Doeringer and Piore (1971).

Background: In 2019, financial literacy level in Indonesia was only 38,03%, while the financial inclusion rate was 76,19%. Financial literacy and inclusion levels related to saving that are identical to the banking sector have the highest values, with 36,12% and 73,88%, while investment in capital market has the second lowest values, at 4,92% and 1,55%. However, the ratio of gross savings to gross domestic product in Indonesia was reported only at 31,01%, while several other Asian countries reached more than 40%. Objective: This study aims to measure the level of financial literacy and inclusion of millennial generations in DKI Jakarta. It analyses the influence of financial literacy and inclusion on saving and investment behaviour, the influence of financial literacy on financial inclusion, and the influence of saving behaviour on investment behaviour. Method: The data analysis used descriptive and SEM-PLS analyses. Results: The results show that the financial literacy rates and the average of inclusion rates of millennial generation in DKI Jakarta are 50% and 60% respectively. Financial literacy and inclusion have an influence on saving and investment behaviour. Also, financial literacy affects financial inclusion, while the saving behaviour does not influence investment behaviour. Conclusion: Financial literacy and inclusion have a positive and significant effect on saving behaviour and investment behaviour. Financial literacy also has a positive and significant effect on financial inclusion. However, saving behaviour does not have a significant effect on investment behaviour. Keywords: financial inclusion; financial literacy; investment behaviour; millennial generation; saving behaviour

We provide an alternative model for evaluating science and technology projects and programs. Our approach, a "scientific and technical human capital" (S&T human capital) model, gives less attention to the discrete products and immediate outcomes from scientific projects and programs - the usual focus of evaluations - and more attention to scientists' career trajectories and their sustained ability to contribute and enhance their capabilities. S&T human capital encompasses not only the individual human capital endowments but also researchers' tacit knowledge, craft knowledge, and know-how. S&T human capital further includes the social capital that scientists continually draw upon in creating knowledge - for knowledge creation is neither a solitary nor singular event. In sum, it is this expanded notion of human capital when paired with a productive social capital network that enables researchers to create and transform knowledge and ideas in ways that would not be possible without these resources. We review literature contributing to an S&T human capital model and consider some of the practical data and measurement issues entailed in implementing such an approach.

For the past decade, human capital has been recognized as one of the crucial assets of any firm’s overall performance. Previous studies widely advocated a linear link between human capital and innovative firm performance, arguing that there are a variety of factors to examine if the relationship between human capital and innovative firm performance is to be properly understood. The focus of this study was to examine the effect of social capital on the relationship between human capital and innovative firm performance. Specifically, it examined the relationship between human capital and social capital and between human capital and innovative firm performance. It also examined the relationship between social capital and innovative firm performance. A total of 294 questionnaires were obtained from managerial staff in automotive companies in Malaysia and the data was analysed using the Partial Least Squares (PLS) test. The results indicated a direct effect between human capital and innovative performance. It was found that human capital is significantly related to social capital and that there is a significant relationship between social capital and innovative firm performance, indicating the ability of social capital to improve innovative firm performance. Finally, it revealed that innovative firm performance could be achieved by human capital through the role of valuable social capital and that good innovative firm performance leads to more prudent and sustainable organisations. The results provide pertinent implications for academia, policymakers and market players while also contributing to the research fields of strategic management, human capital, social capital and performance.

This paper aimed to provide empirical evidence on the behavior of the investor toward mutual funds by considering its relationship with risk perception (RP), return perception (Return P), investment criteria (IC), mutual fund awareness (MFA), and financial literacy (FL). Data were collected using a questionnaire from 500 mutual fund investors, from which 460 questionnaires were used for the analysis. In addition, the snowball sampling technique was used to collect data from different cities in Pakistan. The result showed that RP, Return P, and MFA are insignificant and negatively affect the behavior of mutual fund investors. Investment criteria have a negative and significant effect on the behavior of mutual fund investors. Financial literacy has a positive and insignificant effect on the behavior of mutual fund investors. The results provide better information and guidance to investors and policymakers on the factors that affect the behavior of mutual fund investors.

This research tested the effects of human resource (HR) investment through human capital (HC) to hi-tech firm's performance. Eleven hypotheses of relations among HR investment, HC and hi-tech firm's performance are proposed in the article. The research used a sample of Chinese hi-tech firms. A variance analysis indicated that HR investment is significantly related to higher level of HC in a hi-tech firm, and HR investment is indirectly related to overall hi-tech firm performance through firm-level HC.

This study examines a mediation role of saving behavior in the relationship between financial literacy and investing behavior in a sample size of 200 Gen Z women in employment in Andhra Pradesh, India. With the help of PLS-SEM methodology using Human Capital Theory and the Theory of Planned Behavior, the research paper shows that financial literacy has significant influence on the saving behavior (β = 0.622, p < 0.001), which leads to investment behavior (β = 0.685, p < 0.001). The mediation analysis indicates that 52 percent of the total impact of financial literacy on investment behavior can be attributed to saving behavior (indirect effect β = 0.426, p = 0.001). This proves that learning and doing are connected sequentially. The findings indicate that investment decision is directly influenced by financial literacy (β = 0.386), and the indirect impact via the systematic saving patterns is equally significant. These findings highlight the need to have holistic approaches to treatment that deal with cognitive and behavioral components to enhance the economic potential of women. The research offers empirical data to develop policies that would boost financial inclusion in digitally-receptive but economically- settled young women in emerging economies.

PurposeThe purpose of this paper is to examine the mediating role of innovation on the relationship between organizational culture and firm performance.Design/methodology/approachData for the study were collected through a survey from 154 branches of ten prominent banks in Turkey and responses were analyzed to assess the relationships between organizational culture, firm performance and organizational innovation.FindingsThe findings reveal that in the banking sector, although organizational culture and innovation have a direct and positive effect on the firm performance dimensions, organizational culture was found to have an insignificant regression coefficient on the dimensions of firm performance in the presence of organizational innovations.Practical implicationsThese findings provide useful insights for organizations, particularly in the banking industry, seeking to be competitive and responsive to environmental changes by successfully introducing innovations. Conclusions emphasize that mechanisms to encourage and foster an innovative culture in the organization are likely to facilitate the introduction, adoption and diffusion of innovations which, in turn, is likely to result in achievement of superior firm performance.Originality/valueOrganizational culture has been studied in the literature as one of the characteristics impacting the firm's performance. But there is a paucity of research which models andempiricallystudies the relationship between organizational culture and the firm performance. In addition, several researchers have studied organizational innovation as a driver of firm performance but fewer researchers have studied organizational innovations as being impacted by organizational culture. In this study, the paper examines the relationship between organizational culture and firm performance and the role of organizational innovation in this relationship. This research makes an important contribution to the existing literature by empirically examining the relationship between organizational culture, innovations and firm performance.

This study investigates the distinct roles of financial literacy and debt literacy in shaping investment and borrowing behavior among university students in Bangladesh. While financial literacy has been widely acknowledged as a key driver of financial decision-making, limited research has explored the separate contribution of debt literacy, particularly in developing-country contexts. Using cross-sectional survey data from 840 students across major public universities, the study employs logistic and ordered logistic regression models to examine the effects of both literacy types on stock market participation and debt position. Results reveal that financial literacy significantly increases the likelihood of stock investment, supporting existing evidence on its role in promoting proactive financial engagement. In contrast, debt literacy shows no effect on investment behavior but emerges as a strong and statistically significant predictor of favorable debt outcomes. Financial literacy, by comparison, does not significantly influence borrowing status. These findings highlight the domain-specific relevance of financial knowledge and suggest that financial and debt literacy are not interchangeable. Policy implications include the need for targeted financial education programs that differentiate between general financial competence and borrowing-specific knowledge. Tailoring interventions to specific financial behaviors can enhance the effectiveness of national financial literacy initiatives and promote long-term financial well-being among youth.

Empirical work on the causes and effects of inventive activity has had difficulty in finding measures that can indicate when and where changes in either inventive inputs or inventive output have occurred. The recent computerization of the U.S. Patent Office's data base may prove helpful in this context, but there is the problem that a priori we do not know the relationships between patent applications and economically meaningful measures of these inputs and outputs. To help solve this problem, this paper investigates the dynamic relationships among the number of successful patent applications of firms, a measure of the firm's investment in inventive activity (its R & D expenditures),\tand an indicator of its inventive output (the stock market value of the firm).

Through the mediating function of access to resources (AR), this study investigates the effects of digital transformation, human capital, social capital, and business model innovation (BMI) on the firm performance of Vietnamese firms. The study analyses survey data from 394 Vietnamese businesses in a variety of industries using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that BMI and digital transformation are strongly impacted by social and human capital. Fur

PurposeThe authors examined intellectual capital (IC) components, namely human, structural and relational capital, on firm performance (FP) and innovation performance (IP), while also examining the role of knowledge management (KM) in this context.Design/methodology/approachThe authors employed a meta-analysis using 81 studies from 2006 to 2020 using bivariate analysis, meta-analytic structure equation modeling (MASEM) and fuzzy-set qualitative comparative analysis (fsQCA) to study IC components on FP and IP.FindingsThe MASEM results show that IC affects positively on FP, but not in a significant level and affects positively and significantly on IP. The findings also reveal that the moderation effect of KM affects positively on FP but not on IP. Additionally, the fsQCA analysis shows that KM and its multidimensional role has a positive impact on FP and IP and has a potential to be consistent as a dynamic component for IC.Research limitations/implicationsThe results may be limited by different statistical biases and inverse causality issues or associated with contextualities related to the studies of the sample selected by our criteria.Practical implicationsManagers can identify the appropriate IC elements and act accordingly. The study suggests that mobilizing human, structural, relational and knowledge capital must begin from the firms' birth and continue further during firms' stages of the business.Social implicationsIC is the bridge of evolution for future societies. Knowing how its components impact all levels of corporate environment indirectly influences how societies build up their social bases and policies to fulfill new professional generations.Originality/valueBy using the MASEM and fsQCA, the authors have more detailed insights into the multidimensional context of KM in IC components on firm and innovation performance identifying configurations of intangible resources.

This research work draws attention to the value of the correlation between intellectual capital, knowledge sharing, innovation performance, and firm performance. The study focused on Jordanian manufacturing sector, where this sector has a substantial role in the Jordanian economy. The study employed a quantitative research approach, through designing a questionnaire survey in purpose of collecting data from manufacturing firms in Jordan. The data were obtained from 216 questionnaires out of 250 distributed. The study findings revealed a positive relation between intellectual capital and innovation performance, knowledge sharing, and firm performance. It can be concluded that intellectual capital components, structural, human, and relational capital, positively impacted knowledge sharing within firms. Additionally, the study findings indicated that knowledge sharing is found to partially mediate the relationship between intellectual capital and both innovation performance and firm performance. The study also highlights the potential for manufacturing firms to boost their innovation and overall performance by paying more attention to their intellectual capital, in addition to promoting a culture of knowledge sharing among employees. This study as well provides valuable insights for decision makers on achieving a sustainable competitive advantage through effective knowledge management and innovation strategies.