Financial Wealth Research Articles

The Distribution of Financial Wealth and Its Impact on Enhancing Women's Role in Economic Development

This study examines the distribution of financial wealth and its impact on enhancing women's role in economic development. The primary aim is to explore the reality of development, the distribution of financial wealth, its nature, objectives, and how these factors enable women to achieve economic development when granted rightful access to financial resources under specific conditions, rules, and frameworks. The study addresses key principles and scenarios influencing this relationship, highlighting the recognition of women's entitlement to financial wealth and the rules governing its distribution. It was found that a woman's position in cases of entitlement significantly impacts her share, its limits, and strength. Moreover, the study identifies several scenarios in which women are entitled to financial wealth: some based solely on obligation, others through agnatic inheritance, and yet others through inheritance alongside agnates, with details varying across these cases. The originality of this study lies in elucidating the relationship between financial wealth distribution and the enhancement of women’s economic status, shedding light on how financial policies can contribute to achieving comprehensive economic development.

High-Risk Credit Borrowing Patterns: A Comparison of Cancer With Major Chronic Diseases.

Although financial toxicity from cancer care is well documented, how cancer and other high-mortality chronic diseases affect credit overuse and high-risk borrowing remains unknown. We retrospectively analyzed households in the 2012-2018 Health and Retirement Study. Outcomes included nonhousing financial debt and credit card debt. For homeowning households, outcomes also included access to a home equity line of credit (HELOC) and a loan against HELOC. Linear probability regression models compared changes in financial outcomes among households with new cancer diagnosis or major chronic diseases (diabetes, stroke, or heart disease) with those without health shocks. Analyses were stratified by wealth. Among 14,188 households (age 68 years, 42% male, 21% Black, 13% Hispanic), 33% had financial debt, 26% had credit card debt, and 10% of homeowners used HELOC. Below-median wealth households were more likely to be Black or Hispanic. They were less likely to be headed by a female and to have college-level education. In these households, 22% had negative financial wealth (v 0% for above-median wealth), and new cancer was associated with a 4.9 percentage point (PPT) increase in rates of financial debt (13.1% effect size; P = .03; 95% CI, 0.005 to 0.094) and a 3.9 PPT increase in HELOC use (65%; P = .04; 95% CI, 0.002 to 0.076) compared with households with no new health changes. Households developing major chronic diseases were 3.6 PPT more likely to develop financial debt (9.6%; P = .015; 95% CI, 0.007 to 0.065) without affecting HELOC use. Such differences disappeared in above-median wealth households. Below-median wealth households with cancer incurred higher financial debt and refinanced their home more often compared with those without cancer, highlighting credit overuse and borrowing even in a fully insured population.

Entrepreneurial back-to-landers: Neo-farmers in Turkey

Urban-to-rural migration, particularly back-to-land migration, has become prominent in Turkey. This paper focuses on entrepreneurial back-to-landers or neo-farmers, who have migrated to rural areas specifically to get into commercial agriculture and farming. Through an analysis of semi-structured interviews with 72 neo-farmers, the paper identifies six critical attributes that aid them during entry into farming and later on, when they are running successful farm businesses: possession of financial wealth; ownership of agricultural land; familiarity with agro-food sectors; education (in agricultural and/or food sciences); experience with corporate conduct; and active connections to the local and/or national organizations associated with the food movement. The paper argues that these attributes feature entrepreneurial skills, experience and connections, which in turn provide neo-farmers with economic, social, and cultural capital and comparative advantages to run their farm businesses. Through the case, the paper shows that one, the direction of capital flows, which historically has been rural-to-urban, may change to urban-to-rural (and from non-agricultural sectors to agriculture) through entrepreneurial back-to-land migration; and two, entrepreneurial skills have become vital for smallholders – newcomer or continuer – if agriculture is going to be their primary income generating activity.

Fostering Future Investors: Analysing Determinants of Stock Market Participation Among Malaysian Students using PLS-SEM

Participation in the stock market is crucial for financial engagement and wealth creation. However, specific population segments, such as students from higher learning institutions, may exhibit lower stock market participation levels. Addressing this issue, this study uses the behavioral finance theory to examine how financial literacy, financial well-being, herding behavior, overconfidence bias, risk tolerance, social interaction, and investment intention influence stock market participation. Data was collected through a self-administered questionnaire distributed to 669 university students in Malaysia aged 17-30 years old. The findings reveal that financial literacy, herding behavior, risk tolerance, and social interaction positively influenced investment intention. The study also discovered that investment intention positively influences stock market participation. This study has made significant contributions to both theory and practice. Theoretically, this study contributes to the literature by confirming the positive relationship between financial literacy and investment intention. This study contributes to the development of more effective interventions and policies that not only educate students about an essential aspect of financial literacy but also prepare them for a financially secure future.

ЗАДАЧА ОПТИМАЛЬНОГО СТОХАСТИЧЕСКОГО УПРАВЛЕНИЯ И ОЦЕНКИ СТОИМОСТИ КОРПОРАТИВНЫХ ОБЛИГАЦИЙ, ЗАВИСЯЩИХ ОТ ВРЕМЕНИ И СЛУЧАЙНЫХ СОСТОЯНИЙ ПАРАМЕТРОВ

In the optimal stochastic control problem, one estimates, using the utility indifference method, the bond price and the premium of a default swap contract (Credit default swap) when the model parameters (market interest rate, drift coef-ficient, and volatility of risky underlying assets) are random functions of time and state. Namely, the interest rate of the risk-free asset depends on time, and the prices of risky assets are described by linear homogeneous stochastic dif-ferential equations (SDEs) with multiplicative noise. To do this, the authors consider a portfolio with a risk-free asset and a risky asset with no default risk. For each such portfolio, the authors determine the amount of risky assets that maximizes the expected utility of its final wealth. This quantity allows one to solve the parabolic partial differential equations arising from the Hamilton-Jacobi-Bellman (HJB) equation by transforming them into ordinary differential equations using the method of variable separation to obtain the instantaneous value function of each portfolio. The authors derive the bond price and the default swap-contract premium (CDS) rate, which are the amounts that provide the same level of the expected utility by investing all of one’s wealth in a portfolio that does not contain these credit instruments, or by investing these amounts in credit instruments and the remainder of one’s wealth in the portfolio.

Financial technology, wealth threshold, and wealth inequality in China

This study developed a theoretical model to examine the impact of financial technology (fintech) on wealth inequality from a wealth threshold perspective. The model's numerical simulation results suggest that fintech exerted an inverted U-shaped impact on wealth inequality. Empirical test results based on China Household Finance Survey panel data and fintech index data confirmed this finding. The impact varied across regions and among groups with differing education levels and financial literacy.

How Does Digital Finance Contribute to Sustainable Wealth Growth: Perspective from Residents’ Income

Sustainable growth relies on common prosperity, which is reflected in increasing total income and equitable income distribution. This study first proposes the theoretical mechanisms by which digital financial development affects residents’ total income and income distribution. After that, a two-stage generalized method of moments estimation model with endogeneity treatment is constructed to investigate the impact of digital finance on residents’ total income in 31 Chinese provinces. Moreover, Moran’s I and a spatial autoregression model are used to explore the impact of digital finance on residents’ income distribution. The results demonstrate that digital financial development can significantly contribute to the increase in residents’ total income in both urban and rural areas, thus contributing to regional sustainable wealth growth. In addition, digital finance has a spatial direct effect and a spatial spillover effect on the optimization of residents’ income distribution. This indicates that a region’s digital financial development benefits regional sustainable wealth growth, as it not only can improve residents’ income distribution within the same region but also can promote the income distribution of neighboring regions.

Perceived Financial Vulnerability, Wealth, and Wealth Change: The Health and Retirement Study

ABSTRACT Objectives The 6-item Perceived Financial Vulnerability (PFV) scale assesses awareness and psychological vulnerability regarding finances. Prior findings using the Health and Retirement Study (HRS) identified significant associations of PFV with wealth, demographics, and health status. This study examines the relationship between wealth, changes in wealth, and PFV. Methods Data from HRS respondents were analyzed (N = 1,056). Total assets at baseline (2016) and changes in total assets over two waves (2016 to 2018) were stratified into deciles and used as primary predictors of PFV in 2018. Multiple linear regression models examined the influence of demographics, wealth change (linearly and curvilinearly), and baseline wealth on PFV. Results Wealth change and baseline wealth were associated with PFV. When controlled for baseline wealth, wealth loss linearly predicted increased PFV. Conclusions These findings support the utility of the PFV. Findings underscore the importance of integrating multifaceted financial and demographic information when conceptualizing subjective financial welfare. Clinical Implications Financial wellbeing is crucial in older clients and should be assessed over time. The 6-item PFV effectively evaluates contextual aspects of financial decision-making across socioeconomic statuses, making it valuable for clinical assessments.

Financial globalization, digital financial system and economic wealth in Africa

The study examines the joint effect of foreign direct investment (FDI) and financial inclusion on economic wealth in a digital system. By employing the dynamic system GMM for a dataset of 54 African economies over the period, 2004–2022, both the FDI and the dimensions of financial inclusion have a positive effect on economic wealth. We also find that FDI and financial inclusion are complements in determining economic wealth. We provide evidence that a digital system induces a relatively greater effect of FDI and financial inclusion on economic wealth compared to its direct effect. The study found that financial inclusion relatively enhances the effect of FDI on economic wealth in countries that operate in a highly industrialized sector of the economy compared to those in a low industrialized economy. In addition, the complementarity effects are more profound in a digitalized technological environment compared to those with less focus on digitalization.

A Study on Relationship Between Personality and the Duration of Financial Product Purchases

The purpose of this study is to analyze the relationship between personality and the duration of financial product purchases. Based on the four dimensions of MBTI model personality, a certain sample is selected for investigation. SPSS is used to analyze the correlation and significance of respondents' willingness to purchase financial products for duration. Survey data shows that the significance of E/I, N/S, J/P dimensions all bigger than 0.05, and the significance is smaller than 0.05 on the T/F dimension. So the E/I, N/S, and J/P dimensions have almost no impact on the purchase duration of financial wealth management products. The T/F dimension has a slight impact on the purchase duration of financial wealth management products.

Optimal early retirement with target wealth

An agent often considers retirement adequacy when making a retirement decision. This paper introduces a target wealth constraint, where financial wealth must exceed an agent-based threshold for retirement, and studies several early retirement models under such a constraint. We present explicit characterizations of the optimal retirement time and demonstrate the influence of the target wealth on the early retirement decision and the consumption-investment strategy. As the target wealth for retirement increases, the agent will increase consumption, decrease investment in the risky asset, and delay the retirement time. Due to the early retirement effect, the proportion of financial wealth invested in risky assets could increase when the financial wealth approaches the target wealth. Our models demonstrate that retirement adequacy is a crucial factor in early retirement decisions.

Who gets the flow? Financial globalisation and wealth inequality

This paper studies whether the advent of financial globalisation has contributed to increasing wealth inequality in the United States, France, and the United Kingdom. I find that (i) positive changes in the benchmark measure of financial globalisation are associated with a positive change in the top 1% and 10% wealth shares and a negative change in the wealth share of the bottom 50% of the distribution. This is equivalent to an average gain of $1 trillion for the top 10% and $1.6 trillion for the top 1%, over the period of interest. (ii) Portfolio equities and financial derivatives appear to be the driving components behind the increase in wealth shares. (iii) The implied change in wealth shares is driven by the accumulation of new financial wealth (flow) rather than the valuation of existing one. (iv) The dynamic is strengthened when a banking crisis hits the economy, possibly because people at the top of the distribution can recover their lost wealth faster than people at the bottom. The main finding is robust to an expanded country sample, albeit reducing the historical context beyond the scope of this paper.

Role of Financial Literacy in Household Investment Decisions in Iraq

Purpose: The aim of the study was to assess the role of financial literacy in household investment decisions in Iraq. 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: The study indicated that households with higher levels of financial literacy tend to make more informed and effective investment choices, which lead to better financial outcomes. These households are more likely to participate in financial markets, diversify their investments, and utilize a broader range of financial instruments, which helps in mitigating risks and enhancing returns. Financially literate individuals are also more adept at understanding complex financial products, assessing investment risks, and planning for long-term financial goals such as retirement. Conversely, a lack of financial literacy can result in poor financial decisions, leading to lower participation in the stock market, inadequate savings, and suboptimal investment portfolios. Thus, enhancing financial literacy is essential for empowering households to make sound investment decisions, ultimately contributing to greater financial stability and wealth accumulation. Implications to Theory, Practice and Policy: Behavioral finance theory, portfolio theory and agency theory may be used to anchor future studies on assessing the role of financial literacy in household investment decisions in Iraq. In terms of practical recommendations, developing and implementing targeted financial education programs is essential. These programs should focus on improving specific aspects of financial literacy relevant to investment decisions. From a policy perspective, advocating for policies that support the integration of financial literacy education into school curricula at all levels is essential.

Wealth in the Perspective of the Qur'an: An Exploration Through the Maudhui’s Exegesis Approach

<p class="06IsiAbstrak">Humans cannot be separated from wealth. Even as Muslims, in performing acts of worship or transactions, wealth is needed, for instance, in performing Hajj. The reality is that many Muslims are unable to perform Hajj due to financial constraints. This situation is exacerbated by stereotypes from preachers, such as on Teuku's YouTube channel, where he stated that Allah hastens the rewards for non-believers in this world while Muslims will receive them in the hereafter. This can become a mental block for Muslims, causing them to resign to their circumstances and be reluctant to strive for stable financial goals. Additionally, there is a ḥadīṡ narrated by at-Tirmiżi where the Prophet prayed to live and die in a state of poverty because the poor will enter paradise earlier than the wealthy. However, upon closer examination, this ḥadīṡ is considered ḥadīṡ garib and cannot be used as a binding proof. It can be seen that being wealthy is not prohibited, as it can make many things easier for us. However, everyone's definition of wealth is different. To address this issue, the author employs a Maqasidi interpretation approach using descriptive analysis. The article finds that the orientation of wealth according to the Qur'an is not solely focused on material possessions but rather towards spiritual orientation (inner wealth). Abundance holds significant importance in fulfilling life's needs, both in worship (<em>ibadah mahdlah</em>) and transactions (<em>muamalah</em>). However, the article highlights that true wealth lies in richness of the heart, as financial wealth not used for the good of Allah's path may be in vain and provide no benefit in the afterlife. Therefore, a balance between worldly and hereafter aspects is needed in attaining wealth.</p>

HANK Comes of Age

We study the aggregate and distributional effects of monetary policy in a heterogeneous agent New Keynesian model that explicitly represents the life cycle of households. The model matches the age patterns in the level and dispersion of labor income and financial wealth in the U.S. despite the absence of preference heterogeneity and portfolio adjustment costs. Monetary policy affects the consumption of young households mainly through labor income and the consumption of old households mainly through asset returns. More than half of the aggregate consumption response to an expansionary monetary policy shock comes from those below the age of 40. The shock redistributes welfare from the wealthiest old to the poorest young and increases average welfare of most cohorts.

ADOPTION INTENTION FACTORS OF ROBO-ADVISORY INVESTMENT

Participation in various financial instruments is crucial for financial engagement and wealth creation. However, lower investment adoption intention and participation levels, especially in robo-advisory instruments, need to be discussed further. Understanding the determinants of adoption intention on robo-advisors is essential for developing effective investment decision-making, thus promoting financial literacy and investment behavior. Thus, this qualitative study aims to identify the adoption intention factors of robo-advisory investment. The researcher analyzed 28 indexed journal articles using NVivo. The result highlighted that financial literacy, perceived risk, and perceived trust are the most dominant factors derived from the analysis. By shedding light on the factors influencing adoption intention, the research informs the development of more effective interventions and policies to encourage individuals to invest in their financial future.

Pemenuhan Hak Suami Dalam Kitab Dlau Al-Misbah Fi Bayani Ahkam Al-Nikah Karya Hasyim Asy’ari

Husband's rights are a separate unit from several other rights and obligations that must be understood in the household. It is undeniable that households become a field of problems when husbands feel they are not getting their rights because the nature of husband's rights is not concrete and not in the form of material. However, it is more about the adab obligations of a wife. Many wives today are less concerned about their obligations. This is because the references or sources of religious knowledge are contained in large books so that not everyone can reach them. So, in the end, they are influenced by changes, some of which are contrary to the teachings of shari'a. This research has 3 objectives, namely first, knowing the fulfillment of husband's rights. Second, to know the thoughts of Hadlratus Shaykh Hasyim Asy'ari about the concept of fulfilling husband's rights. Third, to know the reality of fulfilling husband's rights from the perspective of Hadlratus Shaykh Hasyim Asy'ari in modern households. The research in this thesis uses library research (library reseach), and a character study approach. The use of personal documents as data sources, and documentation methods as data collection techniques. The results showed that the fulfillment of husband's rights was explained by Hadlratus Syaikh Hasyim Asy'ari in detail and easy to understand so that it could be used as a guide for wives who intend to get married. Among them are; 1) Obey the husband, 2) Behave well towards the husband, 3) Always ready to serve the husband, 4) Always reluctant to the husband, 5) Glorify the husband and the husband's family, 5) Keep yourself busy at home. Meanwhile, the fulfillment of husband's rights in modern households, there are things that are not in line with the thoughts of Hadlratus Syaikh Hasyim Asy'ari. Starting from a wife who is too active in the public world so that it seizes attention by not maximizing her role in the household as a wife and mother. Also the management of household assets that makes a wife a family bank, so that all financial assets or wealth are in the hands of the wife under the pretext of mere maintenance. In the end, the husband becomes limited to holding his own property.

Beyond financial wealth: The experienced utility of collectibles

We argue that the utility of specific assets, in our case collectibles, is not only derived from the financial outcome, but also from the conditions that prevail until a financial outcome may be realized. Therefore, we derive a multi-attribute utility function that measures financial returns — using a mean-variance utility function — on the one hand, and non-financial returns — using an experienced utility function — on the other. We then reveal the trade-off between financial and non-financial utility by analyzing 363 owners of collectibles. We divide the owners into the group of collectors and the group of investors, based on their self-reported motivation. Our results suggest that collectors receive almost no utility from financial returns, but rather from experience. The opposite is the case for investors. Our findings help to explain the reported financial underperformance of collectibles and suggest to adjust existing models of utility.

Understanding the Crime of Money Laundering in the Concept of Criminal Law in Indonesia

<em><span lang="EN-US">Nowadays, the patterns and behaviors of Money Laundering constitute efforts to conceal or disguise the origin of money or wealth resulting from criminal activities through various financial transactions, making the money or wealth appear as if it comes from legal activities. Several common or frequent actions are taken in the process of committing money laundering to "cleanse" the proceeds of crime. Firstly, the money generated from criminal activities is transformed into a form that arouses little or no suspicion through placement into the financial system using various methods. The second step involves engaging in complex, layered, and anonymous financial transactions with the aim of separating the proceeds of crime from their source into various accounts, making it difficult to trace the origin of the funds, essentially hiding or disguising the origin of the wealth resulting from criminal activities (layering). The final step is where the perpetrator reintroduces the funds that have been obscured in their origin into legitimate wealth, whether to be enjoyed directly, invested in various forms of material or financial wealth, used to finance legitimate business activities, or to fund further criminal activities (integration).</span></em>

Stress testing for IInd pillar life-cycle pension funds using hidden Markov model

AbstractThis paper presents a stress testing technique based on a hidden Markov regime switching model and scenario generations. Firstly, we assume that investor’s risk preferences and beliefs are primarily observed in main world indices and then transmitted to other markets such as IInd pillar life-cycle pension funds. This enables both regime (market state) identification and regime-switching detection. Second, we apply stress to the transition matrix by increasing probabilities of moving to a worse market state, i.e., we increase the transition probabilities on the upper-right side of the main diagonal and decrease the diagonal probabilities correspondingly. Third, future scenarios (evolution) of returns of pension funds are generated using stressed transition matrices and basic risk and performance measures of the final wealth are presented. Finally, three different strategies for pension managers are considered and compared to each other. The results show how the best strategy depends on the stress level.