Financial Advice Research Articles

Mechanisms of interaction between banking institutions and aviation enterprises

It is shown that the main mechanisms of interaction between banks and aviation enterprises are: loans, leasing, collateral financing, risk hedging, project financing, financial consultations and services, factoring, guarantees and insurance. The global aerospace market has been proven to have significant growth potential due to an increase in global GDP, growth in global air traffic and record numbers of new aircraft orders. Innovation, efficiency gains and the development of new markets contribute to the sector's long-term positive outlook. It is shown that the aviation industry is subject to strict regulation at the national and international levels, including requirements for safety, ecology, product quality, data protection and many other aspects. Failure to comply with these requirements can result in serious legal consequences, financial loss and reputational damage. Long supply chains have been found to be an integral part of the aviation industry, ensuring the supply of components and materials for aircraft manufacturing. They have their own advantages and challenges that require effective management and coordination. The use of modern technologies, the development of partnership relations and strategic risk management contribute to increasing the efficiency and sustainability of these chains. It has been determined that the management of the risks of execution of key contracts is extremely important for aviation enterprises. Implementation of effective risk management strategies helps reduce the possibility of problems, ensure timely and high-quality fulfillment of obligations to customers, as well as maintain financial stability and competitiveness in the market. It has been proven that the interaction of banks and aviation companies brings numerous advantages to both parties. Aviation enterprises get access to the necessary financing, risk management and consulting services, which contributes to their development and increased efficiency. Banks, in turn, expand their customer base, increase profitability, develop new products and strengthen their reputation. Such cooperation is an important component of the success of both the aviation industry and the banking sector.

Can GPT Help Improve Robo-advisory? The Construction of Robo-advisor for Users with Low Investment Experience Based on LLM

Robo-advisors have emerged as a significant innovation in investment management, offering automated financial advice to investors. However, user acceptance remains a challenge, particularly among those with limited investment experience. This paper explores the potential of large language models (LLMs) to enhance the interaction attributes of robo-advisor products and increase acceptance among novice investors. The study contributes to the existing literature by exploring the application of LLMs in robo-advisors, supplementing the exploration of interaction design, and systematically reviewing the service processes of current robo-advisor products. Findings suggest that existing robo-advisor products have room for improvement in interaction attributes and algorithmic mechanisms. Through theoretical exploration, this paper proposes methods for optimizing robo-advisor products by integrating LLMs. In conclusion, this research lays the groundwork for designing robo-advisor products with integrated LLM functionality, offering theoretical references for practitioners and researchers in financial technology. Future research directions include exploring user expectations and conducting controlled experiments to analyze the impact of LLM integration on user decisions.

Behavioral Insights Into Investment Decision-Making: Evidence From the Nepal Stock Exchange

This paper provides a reliable foundation for investigating how people's behaviors influence investment decisions. The study surveyed 286 individual investors who participated in the Nepal Stock Exchange, employing a purposive sampling procedure and self-administered structured Likert scale questionnaire. The results indicate that behavioral factors, including stock affordability, information availability, third-party opinions, and herding effect, significantly influence individual investors’ rationality in making investment decisions. The study concludes that in a developing and expanding environment, factors such as disposable income, market trends, and external opinions notably shape investment decisions when individuals choose to invest in the stock market. The alignment of our findings with existing literature reinforces the robustness of our results. The implications of these findings extend to investors, financial advisors, and policymakers alike. Recognizing the influence of behavioral factors can aid in developing strategies to promote informed decision-making and mitigate the adverse effects of herding behavior.

Promoting financial inclusion for SMEs: Leveraging AI and data analytics in the banking sector

Financial inclusion is crucial for the growth and sustainability of small and medium-sized enterprises (SMEs), which are significant contributors to economic development and job creation. However, traditional banking models often fall short in serving the unique needs of SMEs due to perceived high risks and insufficient credit history. Leveraging artificial intelligence (AI) and data analytics, the banking sector can transform its approach to financial inclusion, offering tailored financial products and services that cater specifically to SMEs. AI and data analytics enable banks to analyze vast amounts of data from diverse sources, including transactional histories, social media activity, and market trends. This holistic view of an SME's financial health and business potential allows for more accurate risk assessment and credit scoring. Machine learning algorithms can identify patterns and predict creditworthiness, enabling banks to extend credit to SMEs that may have been overlooked by traditional models. Additionally, AI-driven insights facilitate the development of customized financial products, such as flexible loan terms and dynamic interest rates, that align with the cash flow cycles and operational realities of SMEs. Automated processes and AI-powered chatbots enhance customer service, providing SMEs with timely support and financial advice, thereby improving their banking experience. Data analytics also play a critical role in fraud detection and prevention, ensuring the security of transactions and building trust among SME clients. By continuously monitoring and analyzing transaction data, banks can quickly identify and mitigate fraudulent activities, protecting SMEs from financial losses. Moreover, AI and data analytics support the creation of financial literacy programs tailored to the specific needs of SMEs, empowering business owners with the knowledge and tools to make informed financial decisions. This educational aspect is vital in fostering a sustainable financial ecosystem for SMEs. In conclusion, the integration of AI and data analytics in the banking sector holds significant promise for promoting financial inclusion among SMEs. By providing more accessible, customized, and secure financial services, banks can support the growth and success of SMEs, ultimately contributing to broader economic development and financial stability.

The influence of emotional intelligence and behavioural biases on mutual fund churning frequency: Evidence from India

Behavioural finance invalidates the rationalistic assumptions of the efficient market hypothesis by proposing a realistic explanation for overreaction and underreaction. These phenomena are caused by investors making financial decisions based on their emotions without realizing them. This study attempts to establish the effect of investors' emotional intelligence on behavioural biases, namely, herding, overconfidence bias, and disposition effects, and its consequences for the churning frequency of mutual fund portfolios. This quantitative cross-sectional study was undertaken to collect data from 499 mutual fund investors using a self-administered questionnaire. We found that the disposition effect has a negative impact and that overconfidence bias positively affects the churning frequency of mutual fund portfolios. Furthermore, emotional intelligence, particularly its subconstructs, affects herding bias and overconfidence bias, ultimately impacting the churning frequency of investors. An investor with a higher level of self-motivation is likely to have a disposition effect and herding bias. Investors with disposition impact may be encouraged to reorganize their portfolio if there are any schemes that have been providing negative returns for more than two years or that are not projected to offer significant returns in the future. By understanding how they stack up on each emotional intelligence metric, investors and financial advisors may focus on avoiding the biases that could jeopardize long-term portfolio returns.

Analisis Perbedaan Penyusunan Laporan Keuangan Konsolidasi pada Perusahaan di Indonesia dengan Konvergensi IFRS dan PSAK 22

The purpose of this study is to determine how IFRS 22 and IFRS 3 differ from each other with respect to business combinations as they relate to the compilation of consolidated financial statements for Indonesian companies. Because this strategy gives researchers an idea of how the topic of debate has evolved, a qualitative method that uses a review literature approach is the type of method used. Secondary data that has been examined to generate a description of the research topic is the source of the data used. The study shows that IFRS 22 and IFRS 3 differ in several areas, including the presentation of long-term liabilities that must be refinanced, minority interest rate requirements, disclosures in financial position statements, and financial statement components. Consolidated financial statements based on IFRS number 3 and PSAK number 22 must be prepared for the combination of companies. Guidelines for reporting consolidated financial statements for companies with subsidiaries are listed in PSAK number 22. Guidance on the accounting treatment of corporate purchases is provided by IFRS 3. The components of the financial statements, the disclosures in the statement of financial position, the term minority interest, extraordinary headings, and the reporting of long-term liabilities to be refinanced are where PSAK 22 and IFRS 3 differ. It is important for all businesses to have a comprehensive understanding of the relevant guidelines and regulations to guarantee the accuracy and compliance of consolidated financial statements with such accounting standards. It is important to speak with a qualified financial advisor or professional accountant if further details or a more thorough explanation are needed.

Normal Asset Allocations and Their Statistical Properties

This study focuses on efficient asset allocations that properly include T-bills, T-bonds, and the S&P 500 stock index. It checks that their annual real rates of linear return are both normal and almost lognormal. It reexamines how efficient portfolios based on the rates of linear return may turn into efficient portfolios based on the rates of logarithmic return. It finds that each efficient asset allocation has the lowest possible standard deviation as well as the highest possible arithmetic and geometric means. It eventually reconsiders the relationship between the confidence interval of a geometric mean and an expected long-run capital accumulation. As a consequence, it bridges a gap in the scientific literature by enabling financial advisors to trade off the mean rate of return on a portfolio more rigorously against the value at risk.

Do Women Receive Worse Financial Advice?

ABSTRACTWe arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Female clients who signaled high confidence, high risk tolerance, or a domestic outlook were especially likely to receive this suboptimal advice. Our theoretical model explains these patterns as a result of statistical discrimination interacting with advisors’ incentives. Taste‐based discrimination is unlikely to explain the results.

Exploring Financial Behavior: A Qualitative Investigation into Psychological Factors Influencing Risk Preferences and Investment Decisions

This qualitative study investigates the psychological determinants influencing risk preferences and investment decisions. Grounded in phenomenology and interpretivism, the research aims to explore subjective experiences related to financial behavior. Employing purposive sampling, participants were selected based on diverse criteria. Data collection involved semi-structured interviews, participant observation, and document analysis. Thematic analysis revealed intricate interplays between personal experiences, cognitive biases, emotions, social influences, and financial literacy, shaping individuals' risk perceptions and decision-making processes. Findings underscore the multifaceted nature of financial behavior, highlighting the significance of personality traits, cognitive styles, and decision-making biases. Risk-averse individuals prioritized capital preservation, while sensation seekers pursued high-risk, high-reward investments. Moreover, individuals' self-efficacy influenced their investment strategies. Cognitive biases, such as overconfidence and loss aversion, further impacted investment decisions. The study emphasizes the importance of considering psychological factors in designing personalized financial interventions and educational programs. Future research directions include longitudinal studies, cross-cultural comparisons, and interdisciplinary approaches integrating insights from psychology, economics, and finance. This research contributes to the advancement of knowledge in behavioral finance and informs practical implications for financial advisors and policymakers, aiming to enhance individuals' financial well-being and decision-making competence.

Scoring the Ethics of AI Robo-Advice: Why We Need Gateways and Ratings

AbstractUnlike the many services already transformed by artificial intelligence (AI), the financial advice sector remains committed to a human interface. That is surprising as an AI-powered financial advisor (a robo-advisor) can offer personalised financial advice at much lower cost than traditional human advice. This is particularly important for those who need but cannot afford or access traditional financial advice. Robo-advice is easily accessible, available on-demand, and pools all relevant information in finding and implementing an optimal financial plan. In a perfectly competitive market for financial advice, robo-advice should prevail. Unfortunately, this market is imperfect with asymmetric information causing generalised advice aversion with a disproportionate lack of trust in robo-advice. Initial distrust makes advice clients reluctant to use, or switch to, robo-advice. This paper investigates the ethical concerns specific to robo-advice underpinning this lack of trust. We propose a regulatory framework addressing these concerns to ensure robo-advice can be an ethical resource for good, resolving the increasing complexity of financial decision-making. Fit for purpose regulation augments initial trust in robo-advice and supports advice clients in discriminating between high-trust and low-trust robo-advisors. Aspiring robo-advisors need to clear four licensing gateways to qualify for an AI Robo-Advice License (AIRAL). Licensed robo-advisors should then be monitored for ethical compliance. Using a balanced score card for ethical performance generates an ethics rating. This gateways-and-ratings methodology builds trust in the robo-advisory market through improved transparency, reduced information asymmetry, and lower risk of adverse selection.

Influential Financial Planners and Islamic Financial Planning: A Social Media-Based Content Analysis

Financial planning has been increasingly significant where income levels are rising, the financial industry is becoming more complicated and financial products are becoming more complex. With higher income levels and fund excesses, people demand financial assistance services to manage their financial matters. The activities of financial planners continue to grow in line with the varying demand of customers. Conventional financial planning had developed during the 1970s, while the Islamic financial industry had just emerged. From an Islamic perspective, a financial planning framework would require Shariah-compliant products and services and a deep understanding of Islamic values and principles governing economic activities. This study aims to understand to what extent Islamic financial planning has been communicated and shared by financial planners/advisors and to understand their preferences and financial priorities in providing financial advice. This qualitative paper explores the social media of chosen financial planners and Islamic financial planners. Financial planners share their thoughts and ideas on their social media. Several influential financial planners were selected through some stages. Understanding their social media content will provide a picture of their financial planning. Discussion of Islamic financial planning is scant. The paper explores and offers a novel approach of whether financial planners and so-called Islamic financial planners have different financial planning. Using the particular framework of Islamic financial planning, Islamic financial planners are expected to have different financial planning emphasizing Islamic values and principles.

European banking M&As: The role of financial advisors

We investigate the puzzle of banks contracting the services of external advisors for deals they can self-manage and the role of financial advisors in mergers and acquisitions among European banking firms. We also study the determinants of the choice by bank acquirers and bank targets to either appoint external advisors or manage in-house, as well as between appointing either top or lower tier advisors. Top tier advisors are more likely to be employed in debt financed and cross-border deals. We also find that most European bank mergers are managed in-house, contrary to prior findings reporting mostly externally managed deals attributed to the certification effect. Targets fail to benefit from deals where they do not match acquirer’s decision to appoint external advisors. However, there is an overall propensity to match the counter party’s tier of advisor.

Personal connections, financial advisors and M&A outcomes

Personal connections, financial advisors and M&A outcomes

Understanding the associations between receipt of, and interest in, advice from a healthcare professional and quality of life in individuals with a stoma from colorectal cancer: a latent profile analysis

PurposeTo explore whether profiles derived from self-reported quality of life were associated with receipt of, and interest in, advice from a healthcare professional in people with a stoma.MethodsSecondary analysis of cross-sectional national survey data from England of 4487 people with a stoma from colorectal cancer. The survey assessed quality of life using various scales, receipt and interest in various forms of advice, and physical activity. A three-step latent profile analysis was conducted to determine the optimum number of profiles. Multinomial regression explored factors associated with profile membership. A series of logistic regression models examined whether profile membership was associated with interest in advice.ResultsFive profiles were identified; ‘consistently good quality of life’, ‘functional issues’, ‘functional and financial issues’, ‘low quality of life’ and ‘supported but struggling’. Individuals in the ‘functional and financial issues’ and ‘low quality of life’ profiles were more likely to have received financial advice compared to the ‘consistently good quality of life’ profile. When compared to the ‘consistently good quality of life’ profile, all other profiles were more likely to report wanting advice across a range of areas, with the strongest associations in the ‘low quality of life’ profile.ConclusionFindings indicate that people with a stoma are not a homogenous group in terms of quality of life. Participants in profiles with quality of life concerns report wanting more advice across various categories but findings suggest there is scope to explore how this can be tailored or adapted to specific groups.

Financial Technology for the Sustainable Development

The Sustainable Development Goals (SDGs) are the critical goals for every country in the world. A stable global financial system is needed these days to satisfy its duty to boost private capital mobilization to achieve sustainable development and steady economic growth. However, several obstacles limiting such financial mobilization have been identified by scholars, practitioners, and standard setters. In recent times digital transformation and advancement, specifically in the finance sector, include a wide range of technological developments, and applications such as blockchain, the Internet of things, big data, and artificial intelligence are promised to enhance performance in the financial sector. The potential of digital applications in the finance sector to resolve critical obstacles in financing for inclusive and sustainable growth becomes evident. Financial inclusion is indisputably one of the most significant processes towards achieving the Sustainable Development Goals and FinTech is one of the best methods for these goals to be accomplished. The Fintech industry in India is rapidly expanding and the purpose of this paper is to discuss issues such as fintech drivers, shortcomings of traditional financial services, and the role of technological advancement. The paper also addresses issues relating to fintech investment and disturbance. Financial technology faces challenges such as investment management, customer management, and regulation. The paper examines the evolution of fintech in the banking sector over time. But as we are aware a country like India lacks proper infrastructure and management and the objectives of banking can’t not be attained easily. All the issues and challenges faced by the government and financial institutions have been discussed in this paper along with the important and different strategies adopted by them. The study is based on secondary data and a literature review. India has surpassed the global fintech adoption rate to promote financial transactions with the help of technology. Demonetisation and implementation of the GST (goods and services tax) have also played a major role in the adoption of financial technologies among the masses. Also, the announcement made by the government in 2017 to decrease the amount of paper currency in circulation has elevated its awareness. Blockchain is another financial technology that is being used in the industry. Out of the total “fintech” technologies, blockchain was developed for finance which is directly connected to financial institutions. The main aim of Blockchain in financial services is decentralization where we do not trust a third party to execute transactions. It includes services such as transferring funds between banks and companies. While trading in capital markets, innovative electronic trading platforms facilitate online trade and real-time transfers. Trading networks allow investors to observe the trading behavior of their peers and expert traders and to follow their investment strategies on currency exchange and capital markets. These platforms require either very little or no knowledge about financial markets. An automated financial advisor provides financial advice or online investment management with moderate minimal human intervention.

An analysis of Risk Tolerance of Individual Investor using Gray Relational Analysis Method

Risk tolerance refers to an individual investor's inclination towards embracing fluctuations in investment values in pursuit of higher income. It reflects their capacity to endure such fluctuations and financial goals, time horizon and emotional comfort various including status influenced by factors. Personal preferences and investment choices with circumstances as it helps to regulate, informed investment decisions one's risk tolerance in taking understanding is important. financial situation, investment objectives, knowledge of the financial market, factors like experience, and emotional intelligence contribute to determining one's risk tolerance. Investors' risk tolerance is often assessed through questionnaires or evaluations conducted by financial advisors, which consider factors like attitudes towards risk, investment goals, time horizon, and financial situation. Based on the assessment, investors may be categorized into different risk profiles such as conservative, moderate, or aggressive, with corresponding investment strategies suggested accordingly. It's essential for investors to honestly evaluate and be realistic about their risk tolerance, as overestimating it may lead to excessive risk-taking and potential losses during market downturns, while underestimating it may result in overly conservative investment choices. Regular reviews of risk tolerance are recommended, especially in light of significant life events or market fluctuations. The concept of risk-return trade-off highlights that higher returns are typically associated with higher levels of risk, implying that investors expecting higher returns must be prepared to accept greater potential losses. However, risk tolerance isn't solely determined by financial factors; emotional elements such as fear, anxiety, and market sentiment also influence an investor's tolerance for risk and their behaviour during periods of volatility. Therefore, a comprehensive understanding of risk tolerance encompasses both financial considerations and emotional factors. the GRA (Grey Relational Analysis) approach at its inception, focusing on the concept of the gray gadget. This technique is particularly effective for selection problems involving multiple attributes within a component. The current literature highlights its applicability in addressing problems associated with multiple factors and variables, especially when dealing with complex relationships. The GRA approach is well-suited for resolving issues related to fixing problems, and various types of GRA techniques have been proposed in the field. The introduction of the GRA approach is both straightforward and environmentally friendly, making it a practical choice for addressing complex problems involving multiple variables. Investment Objectives, Time Horizon, Financial Situation, Knowledge and Experience and Liquidity Needs. Risk Assessment Questionnaires, Investment Experience and Knowledge, Financial Situation, Investment Goals and Emotional Attitude Towards Risk. the Rank of GRA for Risk Tolerance of Individual Investors. Liquidity Needs is got the first rank whereas the Low Risk Tolerance is having the Lowest rank.

Investors’ willingness to use robo-advisors: Extrapolating influencing factors based on the fiduciary duty of investment advisors

Robo-advisors are increasingly seen as a solution for the growing demand for timely and actionable financial advice. However, systematic barriers to their deployment and use persist. Understanding the factors that influence investors' willingness to consult with robo-advisors is key to their wide-scale adoption. This research aims to isolate the factors influencing the willingness to adopt robo-advisors by investment advisory services. We focus on three adoption drivers: (1) performance of robo-advisors, (2) human-computer interaction, and (3) the reputation of software suppliers. Results indicate that ‘performance efficacy’, ‘perceived ease of use’, ‘customer education’, and ‘corporate reputation’ positively influence the perceived value, leading to higher adoption intention. Additionally, ‘performance efficacy’, ‘perceived privacy protection’ and ‘corporate reputation’ positively contributes to the building of trust, which in turn leads to higher adoption intention and asset allocation ratio. We found that low-experience investors were “value-driven”, while highly experienced investors were “trust-driven” when it came to adoption intent. The research highlights the potential of artificial intelligence-based applications for user behavior research and suggests design considerations for robo-advisor developers to influence positive adoption in financial advisory services.

Calm Advice: How Digitalizing Pen-and-Paper Practices Improves Financial Advice-Giving

AbstractBank clients’ expectations for enhanced service experiences have increased with the digitalization of banking services and the rise of FinTech. However, despite the availability of online banking services, many clients still prefer personal financial advice due to the personal interaction involved. There has been a growing interest in IT-supported advisory services to meet this demand, aiming to improve customer experience and reduce the cognitive burden on advisors. While previous studies have shown the positive effects of advisory-support systems, they also highlighted downsides such as unnatural interactions, technology’s domination of the interaction space, and impaired impression management. This paper investigates the potential of pen-and-paper user interfaces to resolve the relationship/decision-making tension in advisory services. It evaluates the design of an artifact called bankNotes with eight bank advisors and 24 clients in a within-subject study by drawing on a rich data set consisting of interviews, surveys, and video analysis of the encounters. The results indicate that bankNotes was well-received by advisors, who embraced both existing pen-and-paper practices and new practices facilitated by the system. The clients also benefitted from the system: using bankNotes improved customer orientation, shared understanding, and overall service quality. This research provides valuable insights into the design of advisory support systems that prioritize customer satisfaction and support the needs of both advisors and clients in the banking sector.

EXPLORING THE INFLUENCE FROM FINANCIAL KNOWLEDGE FOR RETIREMENT AND RETIREMENT SELF-EFFICACY ON LIFE SATISFACTION THROUGH THE MEDIATOR - RETIREMENT READINESS AMONG WORKING ADULTS IN CHINA

Objective: The main purpose of this study is to explore the influences of Financial Knowledge for Retirement and Retirement Self-efficacy on Life Satisfaction, with a specific focus on the mediating role of Retirement Readiness among working adults in China. Theoretical Framework: The study is grounded in the context of China’s aging population and slowing economic growth, highlighting the increasing importance of Retirement Readiness. It posits that Financial Knowledge for Retirement and Retirement Self-efficacy are key determinants of Retirement Readiness, which in turn impacts Life Satisfaction. Method: Utilizing a quantitative research methodology, data were collected from a stratified sample of working adults in China, covering diverse age groups, regions, and occupational backgrounds. Results and Discussion: The findings confirm all five proposed hypotheses, demonstrating that both Financial Knowledge for Retirement and Retirement Self-efficacy have a statistically significant impact on Retirement Readiness. Retirement Readiness, in turn, has a statistically significant influence on Life Satisfaction. This suggests that enhancing financial knowledge and self-efficacy in retirement planning can improve Retirement Readiness and, consequently, Life Satisfaction among working adults in China. Research Implications: The study highlights the importance of financial education and tailored guidance for retirement planning. It suggests that working adults, policymakers, educators, financial advisors, and researchers should focus on improving Financial Knowledge for Retirement and Retirement Self-efficacy to help individuals better prepare for retirement. Originality/Value: This study provides a comprehensive investigation into the determinants of Life Satisfaction among working adults in China, with a particular emphasis on the mediating role of Retirement Readiness.

Social isolation and risk-taking behavior: The case of COVID-19 and cryptocurrency

This study examines the impact of social isolation on risk-taking behavior in highly uncertain environments with the potential for significant gains and losses. We uncover both direct and indirect effects of social isolation on risk-taking behavior, mediated through perceived stress, sense of control, and neuroticism. The COVID-19 pandemic provides a pertinent context to explore these dynamics, while the volatile cryptocurrency market serves as a topical context for investigation. The analysis based on covariance-based structural equation modeling (CB-SEM) of survey responses from 216 consumers reveals that social isolation significantly increases risk-taking behavior, primarily mediated by heightened perceived stress. Contrary to expectations, sense of control and neuroticism did not mediate this relationship, indicating specific pathways through which isolation affects risk decision. This finding suggests that while social isolation intensifies perceived stress, yielding riskier purchase decisions, it does not universally impact other psychological aspects like resilience (sense of control) or vulnerability (neuroticism). The observed direct (main) and indirect (mediation) effects highlight the importance of targeted interventions to address psychological well-being, particularly at times of enforced isolation. Understanding these dynamics can help advisors (e.g., financial consultants), marketers, and policymakers (e.g., government agencies/lawmakers) formulate strategies to curb excessive risk-taking among isolated individuals, particularly in high-risk financial settings.