Financial Communication Research Articles

Parental Financial Socialisation and Financial Knowledge: A Structural Equation Modelling Analysis

Purpose: The main aim of the study was to investigate the impact of parental financial socialisation on financial knowledge of young black African adults in rural and low-income area in South Africa. This study was guided by family financial socialisation theory which is cognisant of the various family characteristics, such as family size and socioeconomic status, as predictors of financial outcome through their association with family socialisation process. Design/methodology/approach: The study used quantitative approach and survey design. Primary data on parental financial socialisation was collected from structured questionnaires. A survey was carried out on 500 young black African adults in Fetakgomo Tubatse and Intsika Yethu municipalities. The research hypotheses were tested using structural equation modelling (SEM) analysis. Findings: The study found that parental financial behaviour, parental financial discussion, parental financial communication, and parental financial teaching had significant positive impact on financial knowledge. It is observed that parental financial communication had the strongest impact on financial knowledge. Parental financial monitoring had a significant negative impact on financial knowledge. Thus, the overall results showed that parental financial socialisation has an impact on financial knowledge of young black African adults in rural and low-income area in South Africa. Research limitations/implications: Due to the low levels of general literacy among the respondents, which negatively affected data collection; some young adults did not understand the questionnaire and withdrew from participating in the study. Furthermore, even though confidentiality and anonymity were guaranteed, respondents were reluctant to participate in the study. They feared exposing their financial position and displayed a lack of trust. Originality/value: The current study contributed to the body of knowledge differently to the previous studies because it focused on parental financial socialisation of young black African adults in rural and low-income area. There is no study which has been conducted on parental financial socialisation impact on financial knowledge in rural and low-income area in South Africa. This makes this study so important and warrant that it should be carried out to provide the much-needed results that could help to improve the level of financial knowledge of young black African adults.

Parental Financial Socialisation and Child’s Gender

Parental financial socialisation is impactful to children’s development of healthy financial behaviour. This study determined the difference in parental financial socialisation across child’s gender in rural and low-income areas in South Africa. Parental financial socialisation was measured through parental financial behaviour, parental financial monitoring, parental financial discussion, parental financial communication, and parental financial teaching. Quantitative research was used in this study. The research design adopted is the survey design, a non-experimental research design. Self-administered questionnaire was used to collect data from young black African adults in Fetakgomo Tubatse and Intsika Yethu municipalities because they are the most rural and low-income areas in South Africa. Descriptive statistics and T-tests were performed to test hypotheses. The results showed that there is no significant difference in parental financial socialisation according to the child’s gender. Thus, this study does not support the notion that male children are more likely than female children to receive parental financial socialisation as argued in literature. This study recommended that financial educators and government must come up with financial programmes where issues of gender and financial socialisation will be addressed.

Performing financial communication as professional practice: The interplay of consensus and tension in earnings calls

Abstract Financial communication is a form of organizational communication that links strategic and managerial views on the firm with the surveilling gaze of investors and the financial market, thereby functioning as a practice of transparency. In this article, we focus on the interaction between corporate managers and market analysts in an institutionalized, professional genre of financial communication: the earnings call. Our goal is to increase understanding of how the earnings call as a public and interactional genre contributes to the enactment and constitution of financial communication as a professional practice. We conduct a close analysis of four earnings calls, combining a term-based analysis of the conceptual structuring of the calls with a discourse–rhetorical analysis of manager–analyst interaction. The analysis shows how communication of consensus, based on evoking a common body of expertise, alternates with expressions of potential tension in ways that have complex and contradictory effects on transparency. While the evocation of expertise signals common ground and boundaries around the professional practice, the rhetoric of tension constructs boundaries between the professional roles, producing a relation of surveillance. We consider both the ideational consensus and the role-related tension as performative achievements and constitutive elements of the earnings call. Their combination functions to perform earnings call as a site of both specialized expertise and transparency, thus lending legitimacy to financial communication as a professional practice. Through applying a communication-centered theoretical lens, the study adds to the understanding of professions as constructed in and through professional relations, and through the communicative practices that structure and stabilize these relations.

Financial Statement: Language View Points using Genre analysis

This research article examines accounting statements from the perspective of genre analysis and language usage. By applying genre theory and linguistic analysis, we aim to explore the various language viewpoints employed in the construction of accounting statements and their implications for financial communication. Through a comprehensive review of relevant literature and a qualitative analysis of a sample of accounting statements from several Europe countries, US, Asia and Africa, we identify and categorize different genres within the accounting domain. We investigate how the choice of language structures, lexicon, and rhetorical devices within these genres influence the representation of financial information and shape the perceptions of stakeholders. In addition, we investigate the potential impact of linguistic differences in accounting statements on information transparency, correctness, and comprehensibility. The study's findings contribute to a better understanding of the relationship between language and accounting procedures, giving light on the function of genre analysis in improving financial reporting efficacy and encouraging communication efficiency in the accounting industry.

The role of the corporate purpose and how investor relations officers make sense of it

This article addresses the role of the corporate purpose in strategic financial communication from the perspective of investor relations officers (IROs) with particular reference to their sensemaking process. Strategic financial communication increasingly includes intangible assets that contribute to the value of the company. At the same time, more and more companies are publishing corporate purpose statements that are intended to express their relevance. The article acknowledges those trends and aims to assess how IROs make sense of the corporate purpose and how they strategically use it in investor relations communication. Eleven qualitative in-depth interviews with IROs from German DAX40 companies were conducted and analyzed with an abductive method. The results show that IROs focus on cues when making sense of the corporate purpose, especially links to intangible assets and organizational values can be identified. The corporate purpose is only partially used in communication with the financial public. Deepened reflection on the corporate purpose, fueled by discussions and cues, supports the sensemaking process of IROs which can be guided by the organization. The role of the corporate purpose turned out to be complex with – although not always explored – the potential to be used as a descriptive and normative tool in strategic financial communication.

Association of intergenerational relationship and supports with cognitive performance in older adults: A systematic review

ObjectiveAs individuals age, cognitive decline can significantly impact their quality of life. This systematic review aims to investigate the potential association between parent-child relationships among older adults in Eastern Asian countries and their cognitive performance. MethodsFor this research, a systematic search was conducted on several electronic databases including PubMed, Scopus, Web of Science, ScienceDirect, and Google Scholar search engine, up to March 2023. ResultsOut of 418 articles, 6 were eligible for inclusion in the study. The findings suggest that intergenerational relationships, particularly emotional support and two-way financial communications, are associated with maintaining cognitive health in older adults. ConclusionsIntergenerational relationships affect cognitive health in older adults, with implications for healthcare, social welfare, and the economy. Further research is required to investigate the effects of children's visits on cognitive health and explore the complexities of intergenerational relationships on cognitive health in aging populations.

Implementasi Sistem Pencatatan Saldo Sedekah Jumat di Masjid Ar-Rahmat Berbasis Web

Ar-Rahmat Mosque has played an important role in the management of Muslim places of worship. However, to improve financial management, a more modern financial recording system is urgently needed. As a concrete step, the author carried out community service activities with a focus on implementing a system for recording Friday alms balances at the web-based Ar-Rahmat Mosque. The aim is to make it easier for the mosque's prosperity council to submit information on Friday alms balance reports and to facilitate the mosque's financial communication with the community. The author uses data collection techniques such as observation, interviews, and library research to design a system that is easy to use and can display accurate data. The designed information system includes financial data of the Ar-Rahmat Mosque. The author also tests the quality of the system by distributing questionnaires with a Likert scale of 1-5 to respondents. The calculation results show that the average score is 4.5 which indicates that the respondents agree with the application designed.

Beyond Well-Being: The Assessment of the Energy Renovation in Latvia by the Residents

The renovation of the multifamily buildings represents a key policy area and at the same time largely affects the daily life of residents. In the time of energy crisis, when energy price rises and saving energy becomes especially important, the building sector is among the most affected and a key sector to mitigate the consequences. The paper tackles the energy renovations of multi-family buildings in Latvia that use energy performance contracts. Specifically, it investigates how the process of renovation affects the resident’s health and well-being, their perception, and understanding of the renovation process. To evaluate the perception of the residents, a survey was conducted in thirteen buildings renovated by using energy performance contracting in three cities in Latvia. The survey addressed the preparation and execution of the energy renovation project, the state of the building before and after the renovation, and the impact of the renovated building on the residents. The survey revealed the lack of communication between the parties involved and co-design as the roadblocks to upscale the renovation process in Latvia. In particular, the financial communication to the residents on the project costs was insufficient. Additionally, even though the resident’s perception of safety, health, and comfort improved, the survey showed a decrease in communication between the residents of the same building after the renovation. Assessment of the survey results revealed the need to improve the communication by the ESCOs on the costs of the energy renovation projects and address the lack of community engagement after it is completed.

Verbal Qualitative Information in the Daily "La Presse" and the Stock Performance of Tunisian Financial Companies

Relevant financial information is a central concern in the daily life of investors. However, despite the deterioration of the role of classical media channels, the written press, the latter remains an undeniable tool influencing the stock market. In this context, we have collected 1720 articles published in the newspaper the press of Tunis, during 6 years going from 2010 until 2015. In addition, we have used two dynamic models, first to test the impact of verbal qualitative information of print media on the stock returns of Tunisian financial companies and second to test the impact of stock returns on qualitative verbal information of print media. The estimation of the model is performed by the generalized method of moments (GMM) in dynamic panels, using the sofware STATA 12. The results of the empirical study show on the one hand, that the stock exchange of Tunis reacts positively following the publication of positive qualitative information and on the other hand the stock exchange reacts negatively following the publication of negative qualitative information. In sum, despite the deterioration of the place of the written press, we noticed following this study that the qualitative information of classic media remains relevant. Bad information published negatively affects the market and more precisely stock returns. However, it is essential to emphasize good qualitative and quantitative financial communication in the traditional media for the smooth running of the Tunisian financial market.

Money to Marriage, or Marriage to Money? Examining the Directionality Between Financial Processes and Marital Processes Among Newlywed Couples

Researchers have shown that if couples manage their money in sound ways, their marriages may benefit. Scholars have also shown that the quality of a marriage may precede positive financial behaviors. Previous studies have not determined the directionality of these processes, but researchers have assumed that it flows from financial variables to marital satisfaction. Utilizing a sample of U.S. mixed-gender, newlywed dyads ( N = 1220), we examined which is a stronger association: financial processes predicting marital processes or marital processes predicting financial processes. Specifically, we estimated three dyadic, structural equation models to examine cross-lagged associations between husbands’ and wives’ own financial behaviors and their own marital satisfaction, between husbands’ and wives’ own financial communication and their own marital satisfaction, and between husbands’ and wives’ own financial behaviors and their own financial communication across two waves of data. We found that husbands’ marital satisfaction predicted rank-order change in their reports of financial communication more strongly than the reverse. Furthermore, we found that wives’ financial behaviors predicted rank-order change in their reports of financial communication more strongly than the reverse. These results have implications for theory, future research, and improving the financial and marital wellbeing of U.S. mixed-gender, newlywed couples.

The Difference in Parental Financial Socialisation Across Parental Income Level

Purpose: The effect of parental income on parental financial socialisation is increasingly becoming important. The objective of this study was to determine the difference in parental financial socialisation across parental income levels. This study was guided by financial socialisation theory which is not only about learning financial skills, attitudes, standards, norms, and behaviours from childhood through adolescence, but is more concerned about what the socialisation process contributes to the overall financial well-being of individuals. Design/methodology/approach: Quantitative research approach was adopted for this study. Self-administered questionnaire was used to collect data among 500 young adults in South Africa. Descriptive statistics, Levene’s test, Welch robust test, Tukey HSD test and ANOVA were used to analysed data. Four hypotheses were tested. Parental financial socialisation was measured through parental financial behaviour, parental financial monitoring, parental financial discussions, and parental financial communication. Findings: The results showed that there was a significant difference in Parental financial behaviour, parental financial monitoring, parental financial discussions, and parental financial communication across Parental income. Therefore, the overall results indicated that there was a significant difference in Parental financial socialisation across Parental income. Research limitations/implications: Due to the low levels of general literacy among the respondents, which negatively affected data collection; some young adults did not understand the questionnaire and withdrew from participating in the study. Furthermore, even though confidentiality and anonymity were guaranteed, respondents were reluctant to participate in the study. They feared exposing their financial position and displayed a lack of trust. Originality/value: The current study contributed to the body of knowledge differently to the previous studies because it focused on parental financial socialisation of young black African adults in rural and low-income area This study is the first to investigate the difference in parental financial socialisation across parental income levels. This makes this study so important and warrant that it should be carried out to provide the much-needed results that could help to improve parental financial socialisation across all income levels.

ИНВЕСТИЦИОННОЕ СОТРУДНИЧЕСТВО РОССИИ И АРМЕНИИ В КОНТЕКСТЕ ЕВРАЗИЙСКОЙ ЭКОНОМИЧЕСКОЙ ИНТЕГРАЦИИ НАЧАЛА XXI В.

The article discusses the role of investment cooperation between Russia and Armenia in the development of integration processes in the Eurasian space in the 21st century. The author highlights the key factors that determine the interest of the Republic of Armenia in expanding economic ties with the partner states of the Eurasian Economic Union, primarily with Russia. The article presents facts that testify to the steadily developing cooperation between Russia and Armenia in the field of energy, transport, new technologies, banking, including within the framework of large investment projects that have received support at the government level; shows the expansion of the trade, economic and financial ties between the two countries in a regional format, the interest of the business circles of Russia and Armenia in holding joint industrial exhibitions, forums, business missions. The author notes that the cooperation between Russia and Armenia, which has deep historical roots, is at the same time a relevant trend in the development of international relations in the Eurasian space, is formed in the trend of the projects of the Eurasian economic union and Greater Eurasia on the basis of the strengthening the financial communications, exchange of investment capital, introduction of high technologies. The article concludes that the investment cooperation between Russia and Armenia has a significant long-term significance as a factor of stability and further economic integration in the Eurasian space.

The Relationship between Culture and Parental Financial Socialization

Culture has become an important aspect of parental financial socialization in rural and low-income areas across the world, and there is an increasing need for these studies in this field. This study heeds this call and investigates the relationship between culture and parental financial socialization in rural and low-income areas in South Africa. Parental financial socialization is measured through parental financial behavior, parental financial monitoring, parental financial discussion, parental financial communication, and parental financial teaching. A quantitative research approach is adopted in this study. A self-administered questionnaire is used to collect data in Fetakgomo Tubatse and Intsika Yethu municipalities, as they are the most rural and lowincome areas in South Africa. Correlation analysis is used to analyze data. The results show a negative relationship between Culture and Parental financial socialization. Thus, parents who uphold cultural values are less likely to engage in parental financial socialization. Based on the results, this study provides important recommendations to parents, financial educators, and the government to improve parental financial socialization. This study also offers suggestions for future studies in the field of culture and parental financial socialization

Impact of financial communication practices on investors’ risk perception and decision making

Impact of financial communication practices on investors’ risk perception and decision making

The impact of parental financial socialisation on financial attitude of young black African adults in rural and low-income area in South Africa

This study investigated the impact of parental financial socialisation on financial attitude of young black African adults in rural and low-income area in South Africa through quantitative research approach, survey design and self-administered questionnaire. Data was collected from young black African adults in Fetakgomo Tubatse and Intsika Yethu local municipalities, low-income and rural areas in South Africa. Multiple regression analysis was used to test the relationship between parental financial behaviour, parental financial monitoring, parental financial discussion, parental financial communication, and parental financial teaching with financial attitude. The results showed that parental financial communication and parental financial teaching had a significant positive relationship with financial attitude. While parental financial behaviour, parental financial monitoring and parental financial discussion had no significant positive relationship with financial attitude. Therefore, the overall results indicated that parental financial socialisation has no impact on financial attitude of young black African adults in rural and low-income area in South Africa. This study provided recommendations to parents, young black African adults, financial educators, financial services institutions, financial counsellors and the government.

Do financial education workshops enhance parent–adolescent communication about money?

PurposeThe purpose of this study is to evaluate the effect of financial education workshops (FEWs) on parent–adolescent communication about money by controlling for a parent's gender.Design/methodology/approachThis study utilized a pre- and post-survey-based experimental research design for impact evaluation. Assuming that parents often claim that they frequently communicate with their children about money, the researcher asked children to rate their perception of their mothers' financial communication with them. Their mothers completed the pre-survey before agreeing to participate in FEWs. A follow-up survey was conducted for both study groups six months after completing the FEW series. The data consisted of 300 responses on 19 pairs of money communication items from both study groups. Neither the mothers nor the children were aware that data were collected from both the groups.FindingsThe results of the paired t-tests support the notion that financial education enhances monetary communication between mothers and adolescents.Research limitations/implicationsThis study is helpful to policymakers and financial educators not only to understand the need for “family-based financial education workshops” but also to design and implement such programs to open up the line of “money communication” between parents and children.Social implicationsThis important outcome provides a likely assumption that the enhancement in communication that had been previously constrained by factors such as a “parent's inability or unwillingness to discuss financial matters” is improved by empowering the parent on the subject of personal finance. Second, financial educators and policymakers need to understand that parents play a crucial role in the socialization process of their children. Parents' instructions and communications with their children not only impact the children's financial choices but also make them feel more competent about managing their finances. So, importance of financial socialization strategies should be included in the FEWs designed for the adults.Originality/valueExisting research studies evaluated the FEW outcomes by reporting a positive change in various financial behaviors of the participants by considering only one unit of the household. This study extends the impact evaluation of FEWs to measure the behavioral outcomes at the household level by considering two units of the household, the mother parent and adolescent child by studying their communication about money.

Identification of the Influence Factors of Financial Communication in Multiple Crisis Condition - Bibliometric Analysis

Financial communication between companies represents the set of rationally collected information, validly assembled and properly transmitted, so as to satisfy the increasingly heterogeneous requirements of stakeholders, a process that leads to decision-making by them. This process becomes all the more important as the world map is currently going through an extremely difficult period, characterized by crises of several types. In this context, the purpose of our work is to identify the new factors that can positively or negatively influence the financial communication process in the current multiple crisis conditions. The present work is focused around the bibliometric analysis carried out on the concept of financial communication with the help of the VOSviewer program based on the works available in this field on the Web of Science platform. In order to select the most relevant papers for the research subject, their search was carried out according to the keywords financial communication, selecting only four research areas, namely Economics, Business, Management and Business Finance, obtaining a result of 6089 scientific papers available on the Web of Science platform for the period 1975-2022. The way of disclosure and communication of information over time has seen many changes, from traditional communication to digitalized and integrated communication through ERP and blockchain technologies. Thus, new concepts appear in the economic dictionary that ensure the communication process, adapting it to the technological, economic, social and political evolution During the 1990s the issue of adopting an international conceptual framework was raised, which would ensure the disclosure of comparable, reliable and correct information, in periods of economic crisis, for example in the period 2008-2009, the economic-financial communication focused on identifying new information models, which ensure the disclosure of a complete set of information necessary for investors in making decisions. Keywords: Financial Communication; Research Clusters; Multiple Crisis; Digitalization; Stakeholders.

The analysis of National Health Accounts and financial communications network in Iran health insurance ecosystem

BackgroundOne of the major reforms in the health system of any country is the financing reform. Network analysis as a practical method for investigating complex systems allows distinguishing prominent actors in the relation networks. Leading to the identification of the effective actors and key links between them, the analysis of financial networks helps policymakers to implement reformations by providing appropriate evidence. This study aimed to design and analyze the network of National Health Accounts (NHA) and the cost network in the Iran health insurance ecosystem.MethodsThe present study is a network analysis study based on the data from NHA, and both cost and referral rates that was conducted in 2021. Data, which was for the years 2014 to 2018 and related to NHA, was collected from the Statistical Center of Iran, and cost data and referral rates, which were both related to Basic Insurance Organizations (BIOs), were collected from statistical yearbooks. To analyze the network and identify the key actors, macro indicators, such as network size and density, and micro indicators, such as centrality indicators and the combined importance index, were used.ResultsIn the financing of the health system in Iran, insurance organizations, as agents and sources of financing, do not have a very good position, so direct payments have become a key element in the network of NHA. Providing treatment-oriented services is quite prior. Regarded to health services, hospitals and outpatient services, such as pharmacies and physicians are the key elements of cost and referral rates respectively.ConclusionConsisting of several organizations with different insurance policies and being supervised under different ministries, Iran's health financing system lacks a coherent structure. It is suggested to create a coherent insurance system by creating a single governance system and paying more attention to health-oriented instead of treatment-oriented services. The health insurance ecosystem has become a health-oriented system to reduce the direct payments as well as cost management.

Analysing the Macrostructure of Spoken Strategic Communication: An Application of Argumentation Analysis on High‐Technology Newly Public Firms’ Earnings Conference Calls

AbstractA firm's ability to fulfil their strategic goals largely depends on how they communicate their strategies with stakeholders. Argumentation plays a prominent role in the process of communicating with stakeholders, with the intention of persuading them and achieving goals of strategic significance. In this respect, analysing argument structure is of particular importance, since determining the components that comprise an argument is a prerequisite for evaluating its acceptability and, consequently, its ability to persuade. Therefore, employing a framework that is specifically developed for the analysis of argument structure can help address questions that are not otherwise tractable. The relatively few available empirical studies in strategic communication employ frameworks that are not optimized for spoken communication. As such, there is scope to adapt/refine existing frameworks to facilitate meaningful analysis of spoken strategic communication. In this paper, therefore, we draw on existing frameworks and posit an adaptation that enables us to analyse the macrostructure of spoken arguments. We demonstrate the application of this adapted framework by analysing earnings conference calls involving three high‐technology firms and financial analysts. By doing so, our study contributes to management practice and the literatures on strategic communication, as well as financial communications and investor relations.

Financial communication as a mediator between financial values and marital outcomes

AbstractObjectiveWe test whether perceived similarity of partners' financial values is associated with marital satisfaction and stability and whether financial communication mediates these associations.BackgroundAlthough many studies have found links between finances and marital satisfaction, marital stability has been understudied. Additionally, many studies have examined the impact of couple financial behaviors on marital outcomes but have failed to account for the role of financial values in shaping those behaviors. Couple and finances theory motivated the study and guided our hypotheses.MethodWe used dyadic data from the Couple Relationships and Transition Experiences project, a nationally representative sample of newlyweds (N = 1,700 different‐sex couples). We conducted an actor–partner interdependence model to test direct and indirect associations.ResultsPartners who perceived similar financial values are better able to communicate with their spouse about money, which in turn predicts marital satisfaction and stability. We found both actor and partner associations and evidence of both full and partial mediation.ConclusionOur results support previous research demonstrating the importance of shared financial values in understanding relationship outcomes. Additionally, financial communication is a mechanism linking these constructs.ImplicationsOur findings may inform interventions for increasing marital satisfaction and stability and for improving couple financial communication.