Area Of Finance Research Articles

Financial awareness, risk aversion and portfolio choice

ABSTRACT “The financial market participation puzzle remains one of the most explored yet unanswered areas in finance. We extend the debate of portfolio choice by examining stock and derivatives market participation by focusing on two key investor traits: financial awareness and risk aversion. We use an investor survey conducted by the Securities and Exchange Board of India (SEBI), covering over 15,000 Indian investor responses. We find that risk aversion is associated with a 20% lower probability of market participation, whereas risk-averse individuals having high financial awareness are around 3.3% more likely to participate in financial markets. Furthermore, financial awareness and risk aversion are more significant in areas with higher economic freedom and lower social capital. Our findings suggest that policymakers may consider tailored financial awareness programmes based on differences in risk aversion among the investors as both these characteristics have a combined relationship with financial market participation.

Public participation in rural areas supported by regional governments in the context of sustainable rural development: The case of Poland

Abstract The processes involved in the sustainable development goals (SDGs) localization, sustainable rural development (SRD), and the use of public participation to support the achievement of the SDGs have gained importance in recent years. The aim of this article is to analyze the solution created by regional governments in Poland to combine these issues. This paper utilizes a qualitative case study-based approach. Firstly, the analysis of the development strategies of 11 Polish regions was carried out. Further, the analyses of the grant process allowed one to determine the SDG targets, which are associated with individual thematic areas of financing and with specific tasks proposed for implementation by the residents. It may be concluded that the analyzed program targets largely corresponded to the selected SDG targets. Such programs may be used as a tool for supporting the bottom-up diagnosis procedure, in the scope of desired activities supporting the achievement of the SDGs.

The impact of financial literacy on financial preparedness for retirement among formally employed individuals in Zimbabwe

Purpose: Changes in global retirement systems have necessitated greater personal responsibility for making retirement financial decisions. The main purpose of this study is to evaluate the effect of financial literacy on the financial preparedness for retirement among the formally employed in Zimbabwe. Research Methodology: The study adopted a positivist philosophy and an explanatory research design. Questionnaires were used to collect data from a target population of employees in Bindura, Zimbabwe. The final sample consisted of 384 participants. The independent variable, financial literacy, was measured using knowledge of financial instruments and computational capabilities of retirement benefits. Data were analyzed by multiple regression analysis using SPSS version 25. Results: The findings show a statistically significant relationship between knowledge of financial instruments and financial preparedness for retirement at the 5% significance level. The computational capabilities of retirement benefits are found to have no effect on financial preparedness for retirement. Limitations: Other factors that affect financial preparedness, such as demographics and financial factors, were not included in the model. Contribution: This study addresses retirement preparedness, which is one of the least-researched areas of personal finance in Zimbabwe. Therefore, the results are useful for policymakers to enhance the framework of retirement financial literacy.

DO CFOs HAVE HEARTS? A REVEALING PHENOMENOLOGICAL INTERVIEW

This article sought to understand how Chief Financial Officers (CFOs) deal with feelings and emotions. Criticized for their strictly positivist view while reconciling scarce resources and diverse needs, financial directors are recognized for their coldness in dealing with sensitive issues such as massive layoffs, benefits, and investments cuts, referring to the numbers through a results-oriented perspective. Through an interview with a financial director using the phenomenological approach, it was possible to reveal little-known aspects of these professionals, related to the management of their feelings and emotions. The answers, based on her real experience, confirm the perceptions of the author, also a financial manager, that statements of positive emotions are better accepted than negative ones, not only in the finance area, but in the corporate environment in general. The importance of a supportive net and gender issues also appeared, such as the connection between feelings and weakness, attributed to women. Finally, the ability to deal with complex situations and external factors through emotional intelligence and a calm and balanced approach constitutes valuable quality to be achieved, inspiring respect and credibility.

Artificial Intelligence (AI): Evolution, Methodologies, and Applications

Abstract: Artificial intelligence, also known as AI, is a technology that enables computers and machines to emulate human intelligence and problem-solving abilities. Computers can perform a wide range of advanced functions thanks to the use of artificial intelligence (AI) technologies. These functions include the ability of machines to see, comprehend, and translate spoken and written language, analyzing data, making recommendations, and more. Artificial intelligence is considered a field of computer science that encompasses other areas like machine learning and deep learning, data analytics, linguistics, software engineering, and so on. These disciplines often involve the development of AI algorithms that are based on the decision-making processes of the human brain, that has the ability to learn and memorize from existing data and allows more precise classifications or predictions over a period of time. AI is the foundation for innovation in modern computing, discovering the value for both individuals and businesses. For illustration, AI is used to extricate content and information from pictures and documents, turns unstructured content into business-ready structured data, and unlocks valuable insights. AI has the ability to perform tasks that would otherwise require human intelligence or intervention, when combined with other technologies such as sensors, and robotics. It is used in many areas of life, including education, finance, healthcare, and manufacturing. Here are some examples of AI in different areas: Facial detection and recognition, Text editors, Digital assistants, Self-driving cars, and many more.

Review: Detect and Overcomes the Problem in Project Finance

Abstract: Despite the increasing investment in constructional development over the past decade, a systematic review of construction project financing is lacking. The objectives of this paper are to conduct a systematic review to examine the policies, practices, and research efforts in the area of project finance in construction projects and to explore the potential opportunities for future research. To achieve these goals, this paper first reviewed the reasons for financial crises in the construction industry and sustainable construction project financing practices implemented by the critical analysis method for Kolhapur district. Project finance refers to the funding of long-term projects, such as public infrastructure or services, industrial projects, and others, through a specific financial structure. Finances can consist of a mix of debt and equity. The cash flows from the project enable servicing of the debt and repayment of debt and equity. This paper contributes to the body of knowledge by reviewing existing policies, practices, and research efforts in the area of construction project financing. Meanwhile, the findings from this paper benefit the industry as well, because they are able to provide practitioners with a holistic view of risk and uncertainty, thereby enhancing their knowledge and skills in this regard

A Comparative study of the Envisaged and Definite Stock Prices of BSE SMEs Using RNN during the COVID-19 Pandemic

The stock market is unstable, but the use of machine learning algorithms allows to predict its future dynamics before spending. The most popular area of scientific research right nowadays is machine learning, which involves enabling computers to perform tasks that often require human intelligence. The purpose of this paper is to construct a model using a network of Long-Short Term Memory model (LSTM) to forecast future stock market values. The paper presents the advantages and disadvantages of machine learning for assessing and forecasting the stock market. A review of literature on the application of machine learning models in key areas of finance using methodological model assessment and data manipulation is also available. This paper focuses on the losses of the SME sector due to COVID-19 by doing a comparative study using secondary data collection between the predicted closed stock prices and actual stock prices of the BSE SME IPO index for the period from 1 January 2018 to 30 April 2021.The LSTM network of Recurrent Neural Networks (RNNs) most effective deep learning model, is used to predict stock prices. The study provides insight and direction on where lockdown has a massive impact on the stock prices of BSE SME IPOs. The authors developed a model for predicting the future value of stock in the market, the application of which gave some positive results, demonstrating the need for machine learning and how it can change the world of finance. The novelty of the study is that in India, machine learning and deep learning methods in the field of finance are used much less often than in other countries.

An Analysis of Cash Management with Reference to Deccan Industries

Cash management refers to a broad area of finance involving the collection, handling, and usage of cash. It involves assessing market liquidity, cash flow, and investments. In banking, cash management, or treasury management, is a marketing term for certain services related to cash flow offered primarily to larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to businesses of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, and automated clearing house facilities. Sometimes, private banking customers are given cash management services. Financial instruments involved in cash management include money market funds, treasury bills, and certificates. Cash management essentially means dealing with an organization's cash so its use provides the most value to the business. This can mean planning to keep the right amount of cash on hand as well as making plans for the cash the company does not need to have available for business operations. Cash managers plan for, protect, and invest cash assets. Basic parts of planning for efficient cash management include knowing how much cash should be on hand, efficiently handling cash transactions, and investing any surplus cash in securities that will grow the value of the company's money.

The Evaluation of the Implementation of the Independent Curriculum E-Report at Ngasinan Elementary School, Semarang Regency

To facilitate teachers in administrative matters related to reporting students' learning outcomes, an E-Report is used as a reporting tool. This research aimed to analyze or evaluate the use of the Independent Curriculum E-Report at Ngasinan Elementary School in Semarang Regency. The research utilized the CIPP evaluation model (Context, Input, Process, Product). Interviews, documentary studies, and observations were employed to collect data. Data collection, data reduction, data presentation, and drawing conclusions were the data analysis techniques used in this research. The research findings on the contextual aspect align with the Curriculum Implementation Guidelines, which emphasize the periodic delivery of student reports through E-Reports. The input aspect in the areas of planning, human resources, financing, and infrastructure is generally in accordance, but there is a need for improvement in certain areas. The process aspect includes pre-implementation procedures, implementation, management of infrastructure, human resources, and financing in accordance with the guidelines. The product aspect involves the improvement of human resource quality, accurate and up-to-date information, accountability, efficiency, convenience, and reports in both print and digital formats. The driving factors include collaboration, awareness, convenience, motivation, transparency, infrastructure, financing, and efficiency. The inhibiting factors include a lack of infrastructure, internet connectivity, skills, and systems.

Age-friendly initiatives – GHANA

The global increase in the population of older persons has profound inter-sectoral implications, necessitating the development of age-friendly initiatives at the global and national levels. While progress has been relatively slower across Sub-Saharan African countries, highlighting existing commendable initiatives is essential to identify the current gaps and promote the development of strategies and interventions to promote age-friendly societies. This mini-review highlights some of the key initiatives in Ghana in the areas of policy, healthcare, finance, social services, education and research and in promoting dementia-friendly communities.

The belt & road initiative and U.S.-China competition over the global South

ABSTRACT The Belt and Road initiative aims to facilitate cooperation in the areas of infrastructure, trade and finance between China and relevant countries. It also seeks to boost soft connectivity in terms of rules, standards and people-to-people exchange. The majority of the BRI participating countries are developing ones in Asia, Africa, the Middle East and Latin America, also known as the global South. China’s efforts to advance the BRI have raised suspicion of the United States. By strengthening its ties with the global South, the United States seeks to divide and conquer between China and other developing countries, and to promote the alienation of the global South from China to realize the goal of outcompeting China. The BRI is a double-edged sword that could complicate its relations with the developing countries. China needs to recognize many difficulties faced by the global South and its pragmatic orientation of non-Western but not anti-Western, and strive to improve effectiveness and efficiency of the BRI.

Comparative Study of the Equal-Weight Method and Hierarchical Risk Parity in Portfolio Construction

Purpose: Portfolio optimization is a process in which the capital is allocated among the portfolio assets such that the return is maximized while the risk is minimized. Portfolio construction and optimization has long been an active research area in finance. For the portfolios with highly correlated assets, the performance of traditional risk-based asset allocation methods such as, the mean-variance (MV) method is limited because quadratic optimizers require an inversion of the covariance matrix of the portfolio to distribute weight among the portfolio assets. Methods: A possible solution to the limitations of traditional risk-based asset allocation methods can be provided by a hierarchical clustering-based Machine Learning method because it uses hierarchical relationships between the covariance of assets in the portfolio to distribute the weight, and inversion of the covariance matrix is not required. A comparison of the performance of a simple non-optimization technique called the Equal-weight (EW) method to the two optimization methods, the Mean-variance method and the HRP method, which is a machine learning method, was conducted in this research. Results: It was found that in terms of cumulative returns, the equal-weight method has outperformed several more sophisticated optimization techniques, the mean-variance method, and the HRP method. For most of the period, the Sharpe ratio of the HRP method was observed to be similar to the mean-variance method and equal-weight method. Implications: This research supports the idea that HRP is a feasible method to construct portfolios with correlated assets because the performance of HRP is comparable to the performances of the traditional optimization method and the non-optimization method.

Mastering the Field: A Critical Analysis of 'Entrepreneurial Finance' by Leach and Melicher

About The Book Book Name: Entrepreneurial Finance, 7th Edition, 2020 Authors Name: J. Chris Leach, and Ronald W. Melicher, Publisher: Cengage Learning Publishing, Identifiers: ISBN 0357130731, 9780357130735 About The Authors J. Chris Leach is a distinguished academic and Professor at the Leeds School of Business, University of Colorado at Boulder. He is known for his exceptional teaching abilities, entrepreneurial background, and research in finance. Leach has received awards for teaching and has played an active role in startups since the 1970s. He is also a faculty advisor and mentor for the Deming Center Venture Fund. Ronald W. Melicher is a distinguished Professor of Finance at the same university. He is celebrated for his teaching abilities and has held key positions in the Finance Division. Ronald's expertise spans various finance topics and has taught at prestigious institutions globally. He is also recognized as an expert in financial management and firm valuation, offering consultancy services and conducting research in critical areas of finance.

Digital loans and buy now pay later from LendTech versus bank loans in the era of ‘black swans’: Complementarity in the area of consumer financing

Research background: People who take non-banking loans are primarily perceived as excluded from accessing bank services. The growth of e-commerce and the increasing digitalisation of customer interactions with banks was particularly accelerated by the COVID-19 pandemic (the first ‘black swan’). These processes have also influenced the rapid growth of the LendTech (LT) sector within FinTech with its digital loans and buy-now-pay-later (BNPL) services. The war in Ukraine (the second ‘black swan’) has led to an energy crisis, increased inflation, interest rates and credit costs, and reduced credit accessibility. In this context, the following research questions are addressed: Are the LT and banking sectors complementary or substitutive in the area of consumer financing? Does complementarity apply to all customer segments and loan amounts? How does the extent of complementarity or substitutability of the LT sector depend on, and to what extent do changes in the regulatory and macroeconomic environment affect, the interaction between the banking and LT sectors? Purpose of the article: The aim of the article is to identify trends in the LT sector within FinTech in the context of assessing the scale and determinants of current and future complementarity of the non-bank sector and the banking sector in the area of consumer credit in time of black swans. An additional purpose of the article is to estimate revenues from the basic operating activities of companies from the on-line channel. Methods: The research process was multi-stage and the research procedure was structured. Due to the lack of a uniform source of data on LT products and services, the study used many data sources — data from the Credit Information Bureau, a primary nationwide survey on LT users a primary survey of people representing LT's managerial staff. The selection of LTs was carried out according to the concept of the monetary sampling unit. The Horvitz-Thompson estimator with Sen‐Yates‐Grundy variance form was used to estimate net operating income for LT from the online channel in 2021. Findings & value added: The LT companies surveyed state that black swans (the COVID-19 pandemic and the war in Ukraine) and the current macroeconomic situation have not significantly affected demand for non-banking loans. The reduction in the opportunities for the LT sector as a result of anti-usury regulations will only lead to a shift in consumer demand to the pawnshop sector and the shadow economy, which will be detrimental to consumers. Complementarity between LT and the banking sector is revealed especially in crisis situations, thus limiting the effects of market shock (limited supply of loans offered by banks). In periods of stabilisation, a rather clear division of preferences is noticeable – in the case of seniors and loans for higher amounts, banks dominate, while in the case of lower amounts and in younger age groups, non-bank institutions are more popular. The mechanism by which shrinking banking services are replaced by LT in short-term crises confirms the importance of LT in balancing the Consumer Finance market in the face of unstable periods. From a medium- and long-term perspective, it should be noted that inflation and rising interest rates will increase the scale of credit exclusion in commercial banks, shifting part of the demand to the non-bank sector. These phenomena have an international dimension. Similar observations were made already in 2012 by the CFPB in the USA and the British FTA, when analysing the consumer finance market immediately after the subprime crisis, emphasising the effects of limiting access to bank consumer loans and the resulting growth of the LT market (Gębski, 2013).

Sustainable Investing and Islamic Finance: Evidence from the Organisation of Islamic Cooperation (OIC) Countries

Sustainable investing and Islamic finance have been two of the fastest-growing areas of finance. In Islamic finance, equity markets play an important role. In the literature on Islamic equities, there are relatively few studies that have integrated sustainability factors into Islamic finance. In this paper, our objective is to contribute to the line of research on the integration of sustainable investing into Islamic finance. To that end, we first examine the comparative performance of investing in the sustainability indices from those Organization of Islamic Cooperation (OIC) countries that are partners of the Sustainable Stock Exchanges (SSE) initiative. We then conduct a case study of Borsa Istanbul in Turkey, which has the best-performing sustainability index from OIC countries. Overall, our findings reveal the heterogeneity in sustainable investment performance, and suggest the potential of obtaining superior risk-adjusted returns in certain economies from OIC countries. This study draws implication on how sustainable investing can help bridge the gap between Islamic and conventional financial markets.

EXAMINING THE TREND OF INNOVATIVE WORK BEHAVIOUR LITERATURE: A BIBLIOMETRIC ANALYSIS

The concept of innovative work behaviour (IWB) has received attention as a strategy to be competitive for an organisation. Given the intricate nature of the global landscape, the emergence of new risks, and the need to enhance organisational resilience in times of crisis, the significance of IWB becomes pertinent, particularly for the public sector. This paper examines the development and the current trends of IWB research from the perspectives of bibliometric indicators. This study retrieved a total of 1,574 documents from the Scopus database between the years 1963 and 2023. The analysis of this study used several tools – Microsoft Excel, VOSviewer, and Harzing's Publish or Perish. The findings of this study show the increasing trends over the last ten years in various disciplines. Research results indicate that IWB research mostly appears in the subject areas of Business, Management, Accounting, Social Sciences, Psychology, Economics and Finance. This study also reveals that China, the United States, Pakistan, Indonesia, and Malaysia have become the five major countries that have created collaborative IWB research. In light of this, the results of this investigation furnish crucial data for advancing IWB research in the realm of multidisciplinary studies.

Diffusion of Mobile Technologies in the Area of Financial and Insurance Activities in Poland

The diffusion of innovation in the area of banking and certain financial services is a topic eagerly taken up in empirical research, but in the case of Poland the study of this phenomenon in the area of finance and banking that utilizes the econometric models in question is practically non-existent. This article attempts to fill this research gap to some extent. The main objective of the article is to present a comparative analysis of the rate of mobile technologies diffusion among 3 groups of enterprises in the financial and insurance sectors: banking and lending, insurance and reinsurance, and brokerage and other activities. The occurrence of diffusion of mobile technologies and its rate was studied with the help of a logistic function. Results show that in companies operating in the insurance industry, the phase of rapid growth of mobile innovation diffusion lasted longer than in other groups of enterprises, but the highest dynamics of mobile innovation diffusion in the first phase of this phenomenon was achieved by companies conducting brokerage and other activities.

Gender Based Violence in the Commercialisation of Religion in Neo-Pentecostal Churches

The focus is women suffering due to commercialisation of religion in Neo-Pentecostal Churches. Most of the religion commercialists are men with women as victims of Gender Based Violence (GBV). The CRL Commission discovered that women participation in religious commercial practices is quite alarming in terms of the ratio between men and women. There is a very serious gender bias in these churches in terms of abuse and outrageous practices. This paper focuses on vulnerability of women caused by marriage expectations, barrenness, divorce, and lack of leadership. The methods and techniques of religious commercialists will be used as demonstrations that women are indeed the victims of these malpractices. The area of finances will be highlighted to capture the truth that indeed women are victims of commercialisation of religion. Literature and social media will be engaged to validate facts. Theology of dialogue (God-talk) contributes towards the solution to these practices that have tainted the Pentecostal faith with negative outlook. Appeal is made to male perpetrators to reevaluate their patriarchal egos at the expense of women and that their theology should take a new turn of embracing feminist theology, which helps to understand the women’s value as God’s image carriers.

The Inflation Reduction Act as an Element of Shaping the US Grand Strategy and the UN Strategy of Global Goals

Abstract The purpose of this article is to present the US Inflation Reduction Act (IRA), signed by the US president on 16 August 2022, which provides the legal basis for the largest nationwide public investment in the economic, social and environmental spheres since the 1930s. The Act is an offshoot of the 2020–2021 legislative effort known as the Build Back Better Plan, which aims to create synergies between the US Grand Strategy to maintain the ‘exorbitant privilege’ of being the economic hegemon (resulting from the balance of power in the global economy and international politics, the status of the US dollar as an international currency and the oversight of the global reserve currency that has protected US sovereignty, security and prosperity to date) and the Agenda 2030 for Sustainable Development, adopted in 2015 by 193 UN Member States. The assessment of the US IRA is relevant not only because of the attempt made to holistically assess US strategic policy goals, including in the area of sustainable finance, but also to isolate global development trends in economic, social and environmental areas.

Issues of financing economic entities of the cluster for the production of flower products in the Kaluga region using the potential of state support

In the flower industry at the regional level and in the country as a whole, problems related to the geopolitical situation have worsened, and accordingly, with the organization of production, sales, logistics supply chains, and financing of activities. Effective functioning and development of floriculture in difficult modern conditions is impossible without appropriate sources of financing and optimization of their structure. The main directions, levels, and structure of funding sources are an important component of the strategy for the creation, operation and development of a cluster for the production of floral products in the Kaluga Region.Based on a critical analysis of the state and prospects for the development of the floriculture industry in the region in a cluster design, the article substantiates approaches to the formation of an optimal structure of sources in two main areas of financing based on the types of activities of economic entities. The emphasis is placed on the levels of potential financing when planning business processes and the possibility of using government support. The provisions of the article were used in the development of a strategy for the creation and development of a cluster for the production of floral products in the Kaluga region.