Financial Expectations Research Articles

The confusion of taste and consumption: Evidence from a stated-choice experiment

In this paper, we conduct a stated-choice experiment with German retail investors to examine how labeling sustainability information as financially material or immaterial influences investment decisions. Results reveal a strong non-pecuniary preference for sustainability. However, emotional affect leads some investors to erroneously project sustainability information onto firms’ financial performance, regardless of financial materiality. When poor sustainability ratings are labeled as financially material, investors demand further an additional return premium, indicating a misinterpretation of these labels as financial indicators. This bias is particularly evident among investors who incorporate sustainability for pecuniary reasons in the experiment but do not use such information in real-life investing. Our findings suggest that while sustainability labels can guide investor behavior, they also risk distorting financial expectations. This underscores the need for careful design in sustainability disclosure practices and better investor education on the implications of sustainability information.

Conceptualizing Community Engagement for Mental and Brain Health Research in Low- and Middle-Income Countries: A Case of Kilifi County, Kenya.

Community engagement (CE) has increasingly been recognized as a critical element for successful health promotion and intervention programs. However, the term CE has been used to mean different things in different settings. In this article, we explore how CE has been conceptualized in the field of mental and brain health in Kilifi County, Kenya. We used ethnographic methods encompassing focused group discussions, key informant interviews, and observations with 65 participants, purposively recruited from Kilifi County. Data were transcribed verbatim and thematically analyzed. Our findings show that community members and stakeholders had diverse perceptions of and experiences with CE. Factors such as trust between researchers and community members, sensitization, and awareness creation were key for acceptance of research projects. Partial involvement in research, lack of access to information, poverty and socio-economic challenges, and financial expectations from researchers hindered CE and led to resistance to participation in research projects. For effective CE, there is a need to work closely with community gatekeepers, create awareness of the research projects, use local languages, and ensure continuous engagement that promotes equitable research participation. Our findings suggest that tacit knowledge, context, and mechanisms for research are all critical features of CE and should be considered to enhance acceptance and sustainability of mental and brain health interventions in Kenya.

Motivations for Socially Responsible Investing: The Impact of Attitudes, Subjective Norms, and Financial expectations

This study looks forward to exploring and understanding what the reasons for the desire of retail investors in might be making Socially Responsible Investments (SRI) in the Chinese stock market and to get an estimate of how valid the theory of reasoned action (TRA) could be. This is intended to look at how such factors as attitude, subjective norms, financial expectations, and risk propensity influence investors to engage in SRI in China. This research builds on previous studies that introduced financial expectations as a crucial new construct, enhancing the depth and rigor of TRA model in examining investment intentions. This assumption posits that investors comprehensively consider the investment situation, weighing not only its societal impact but also its financial returns, and only after considering these outcomes comprehensively will they make decisions on SRI. Risk propensity has been used as moderator in this research model relationship. Whether risk propensity influences the association between attitude, subjective norms, and financial expectations with investment intentions has been test in this study. The study results show risk propensity plays a significantly moderate role in relations of attitude, subjective norms, and financial expectation to intentions with the analysis indicating a positive effect. Its results will be able to provide more reference for the SRI studies and a new angle for capital market researchers, market information providers, and investors.

Gender and Social Exclusion in Lake Victoria Basin: A Case of Mara and Simiyu Regions, Tanzania

Tanzania has undertaken several deliberate measures to address the social exclusion of traditionally marginalised groups. Yet, it is still felt by some people that good measures, strategies, and plans implemented in health and education are not handled at the household level. The study was conducted in Bunda TC, Bunda DC, and Busega DC to assess gender and social exclusion in the Lake Victoria basin. Specifically, examining disparities in household children’s education expectations by gender and investigating gendered differentials in health status and care. This study employed a multistage sampling method, combining random and purposive techniques, to select 447 households. Key informants were purposefully chosen for interviews, and 30 households per village were systematically surveyed. Data were collected through various methods, including documentary review and computer-aided personnel interviews, ensuring comprehensive coverage. Findings revealed that the sex of a child influenced the household expectation of the highest education level of children. Financial expectation determines who should be educated. The girls were on the disadvantageous side. The sex of the household head did not distinguish health status, and the exclusion of health care lies not in differential treatment between males and females but in differing affordability and the availability of health facilities. It is recommended that: the right to education of a girl child should be addressed at the household level; measures to improve health care affordability and availability of health facilities should be ensured; the provision of health insurance for all and free health services for complicated health problems of women should be emphasised.

Sosyal Medyada Din Dili: İçerik Üreticilerin ve Kullanıcıların Bakış Açıları

Nowadays, when the distinction between the digital and physical worlds is becoming less and less clear, social media is becoming the most important platform to meet people's communication needs. People are increasingly using social media to access the information they need about their beliefs as well as many other issues. While some of those who produce religious content on social media continue to convey their messages using traditional religious language, some content producers produce content in accordance with the popular language of social media. In this study, the issue of how the religious language in social media should be addressed by referring to the opinions of both content producers and social media users. In the research conducted within the study, semi-structured interviews were made with 27 social media users and 5 content producers, and the collected data were analyzed by descriptive analysis method. According to the findings, the language that social media users and content producers should use when sharing religious content on social media should be consistent, sincere, away from financial expectations, concise, tolerant, aesthetic, appropriate to the language of youth and holistic. In addition, religious content should be away from prohibitive language and should not distort the essence of religious values for the sake of popularity.

Doświadczenia zawodowe pracujących Polaków a poczucie atrakcyjności zawodowej – wyniki badań empirycznych

The article addresses the issue of working Poles’ work experience and their sense of professional attractiveness as factors shaping the quality of working life. The research sought not only to identify the potential relationship between employees’ work experience and their sense of professional attractiveness but also to analyse factors that may differentiate the indicated variables, such as gender or generational affiliation. To show the factors shaping the quality of work experience, individual aspects of the work performed were examined, taking into account the potential effects of a sense of professional attractiveness, financial expectations and the willingness to change place and position. Achieving the purpose of the study, including verification of the hypotheses set, would not have been possible without the empirical research which was carried out in June 2022 using the CAWI technique on a sample of 384 Poles. The results of the survey were subjected to statistical analysis using the STATISTICA package. The research shows that there is a relationship between the quality of work experience and the level of professional attractiveness. As the positive evaluation of experience increases, so does the positive evaluation of the level of professional attractiveness of employees.

Work and income instability and retirement financial wellbeing for women and men

Financial wellbeing in retirement is contingent on realizations of financial expectations developed earlier in life and may differ substantially by gender. People’s standard of living in retirement is tied to stability in work and income trajectories during working years along with retirement benefits and savings. Women have a greater overall income disadvantage relative to men, including reduced life course labor force exposure that may restrict retirement savings and benefits. Using the Canadian Longitudinal and International Study of Adults (LISA) and 20 years of linked tax record data (N = 2,353), we explore the association between instability in work and income histories and lower perceived retirement standard of living (PRSOL), net of retirement benefits, for women and men in Canada. Results show that for women, life course effects shaping PRSOL are driven by cumulative disability exposure and bouts of social assistance. For men, PRSOL is influenced more by cumulative unemployment. Although retirement benefits do not offset histories of work and income instability for either gender, income assistance is protective for women in retirement while personal investments are protective for men. Overall, our findings suggest that despite Canada’s relatively generous pension program in later life, life course instability in work and income have persisting, gendered effects on financial wellbeing in retirement that underscore financial and health disadvantage for women across the life course.

Factor associated with willingness to pay for prevention of cancer: a study of prostate cancer screening

IntroductionThis study investigates Iranian men’s willingness to pay (WTP) for prostate cancer (PCa) screening and influencing factor, along with the impact of information.MethodWe assessed preferences for prostate cancer screening in 771 Iranian men aged 40 and above using an internet-based questionnaire survey. Participants received basic and complementary information, and their willingness to pay was determined through a payment card approach. A Wilcoxon test assessed the impact of information. We also analyzed prostate cancer screening demand and employed Heckman's two-step model to evaluate factors influencing the willingness to pay. Additionally, reasons for unwillingness to pay were explored.ResultsWillingness to pay significantly decreased with complementary information relative to basic information (16.3$ vs 17.8$). Heckman model, using WTP based on basic information shows age, education, and monthly household expenditure positively influenced the decision to pay. In contrast, health status, expectations of remaining life and prostate problems history positively affect amount of WTP for PCa screening, and insurance coverage has a negative impact on it.Majority of respondents (91%) supported PCa screening, with 82% expressing a willingness to pay. Common reasons for not paying include seeing screening as a public good (43%), financial constraints (35%), and having insurance (20%). The screening demand is price-sensitive.ConclusionThe basic mindset of Iranian men exaggerates the risk of prostate cancer. Reduced willingness to pay after receiving information reassures the reliability of their financial expectation. Taking into account the factors that influence PCa screening is essential for accurate planning and the successful implementation of this program.

Looking on the (B)right Side of Life: Cognitive Ability and Miscalibrated Financial Expectations.

It is a puzzle why humans tend toward unrealistic optimism, as it can lead to excessively risky behavior and a failure to take precautionary action. Using data from a large nationally representative U.K. sample our claim is that optimism bias is partly a consequence of low cognition-as measured by a broad range of cognitive skills, including memory, verbal fluency, fluid reasoning and numerical reasoning. We operationalize unrealistic optimism as the difference between a person's financial expectation and the financial realization that follows, measured annually over a decade. All else being equal, those highest on cognitive ability experience a 22% (53.2%) increase in the probability of realism (pessimism) and a 34.8% reduction in optimism compared with those lowest on cognitive ability. This suggests that the negative consequences of an excessively optimistic mindset may, in part, be a side product of the true driver, low cognitive ability.

Estimating financial compensation and minimum guaranteed charge for vehicle-to-grid technology

Electric vehicles (EVs) can play an ancillary role in energy and electricity system management. Vehicle-to-Grid (V2G) technology allows EV batteries to be discharged back into the grid. This technology enables charging when electricity prices are low and there is abundance of electricity in the grid and discharging when electricity costs are high and there is high load in the grid. The current study estimates the combination of financial compensation (FC) incentives (reduction in monthly electricity bill) and minimum guaranteed charge (MC) that would be needed to increase the acceptance of V2G technology among Norwegians. Estimating a multi-equation econometric model, we investigate how socioeconomic, geographical, and psychological exogenous variables predict the level of FC and required MC, as well as the relationship between FC and MC. We found that there is a mutual and negative relationship between FC and MC. Based on the MC-FC economic relationship, the V2G system is more likely to be accepted by older people, people who perceive the V2G system as more useful, people who have EV experience, and individuals with a higher level of trust in the V2G system. The group with strong trust in V2G demands less FC for a given value of MC. When MC is reduced, younger age groups (18–22) are more likely to demand higher FC. Our estimations also show that people demand an average reduction in electricity bills of 144 USD (72% of the average monthly electricity bill) as compensation for V2G investment while they would also use V2G if their electric car’s battery had a minimum level of 71% power. Monetary incentives based on socioeconomic status, options in the interface allowing the user to easily override the standards, and trusted methods of calculating the revenue may be considered in order to reduce financial expectations and concerns regarding minimum battery charges.

Managing government commissioning and philanthropic expectations: earnings management in Australian nonprofit disability service providers

PurposeThe purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to understand the motivations for and implications of such practices. This research is important for stakeholders, such as members and funders, as well as the broader Australian community, considering the significant financial resources allocated to these organizations from the public purse.Design/methodology/approachThe authors employ a longitudinal dataset containing financial data from 154 Australian NFP disability service providers, collected over a two-year period (2015–2016). Through the analysis of detailed balance sheets and income statements, the authors seek to uncover evidence of earnings management practices in this sector. The study’s results provide valuable insights into the behaviour of the charitable human services sector.FindingsThe findings reveal that Australian NFP disability service providers engage in earnings management practices, primarily aimed at reducing reported profits to meet the normative financial expectations of stakeholders, such as public sector funders and philanthropists. The executives of these organizations strive to report profits close to zero, being cautious not to report a loss, which might raise concerns about their sustainability.Originality/valueThe authors contribute to the existing literature on earnings management in the NFP sector by focussing on Australian disability service providers, an area that has been under-researched due to a lack of suitable data. The results offer insights into the incentives and implications of earnings management practices in this sector and highlight the need for a revaluation of accounting standards, reporting requirements and audit arrangements applicable to the NFP sector.

Financial Expectations and Household Consumption: Does Middle‐Inflation Matter?

AbstractWe explore the finding that households often expect their financial position to remain unchanged compared to other alternatives. A generalized middle inflated ordered probit (GMIOP) model is used to account for the tendency of individuals to choose “neutral” responses when faced with opinion‐based questions. Our analysis supports the use of a GMIOP model to account for this response pattern. Expectation indices based on competing discrete choice models are also explored. While financial optimism is significantly associated with increased consumption at both the intensive and extensive margin, indices which fail to take into account middle‐inflation overestimate the impact of financial expectations.

The capitalization of crime in the city of real estate

This article explores how the relationship between crime and property values is reshaped by the transformation of houses into investible assets. Departing from neoclassical economics of crime, we introduce the notion of “capitalization of crime” to illustrate how crime is utilized to generate forward-looking financial expectations and shape housing markets in gentrifying neighborhoods. The study, based in Haifa, Israel, combines quantitative and qualitative data to demonstrate how investors and renters each play a role in constructing the value of crime by capitalizing crime in opposite directions. First, using a geographic information system to map crime alongside real-estate prices, we show that the effect of crime on property values is offset by prospects of future gentrification, thereby contributing to housing speculation. Second, using digital ethnography, we show how renters use “crime” to dampen investor expectations, reduce rents, and delay their displacement. Thus, our study adds to the established body of critical criminology, which examines the manipulation of crime for economic and political gains. It further contributes to emergent debates in urban criminology by explicating how the financialization of rental housing is remaking urban politics of crime and criminalization.

Blockchain technology-based FinTech banking sector involvement using adaptive neuro-fuzzy-based K-nearest neighbors algorithm

The study aims to investigate the financial technology (FinTech) factors influencing Chinese banking performance. Financial expectations and global realities may be changed by FinTech’s multidimensional scope, which is lacking in the traditional financial sector. The use of technology to automate financial services is becoming more important for economic organizations and industries because the digital age has seen a period of transition in terms of consumers and personalization. The future of FinTech will be shaped by technologies like the Internet of Things, blockchain, and artificial intelligence. The involvement of these platforms in financial services is a major concern for global business growth. FinTech is becoming more popular with customers because of such benefits. FinTech has driven a fundamental change within the financial services industry, placing the client at the center of everything. Protection has become a primary focus since data are a component of FinTech transactions. The task of consolidating research reports for consensus is very manual, as there is no standardized format. Although existing research has proposed certain methods, they have certain drawbacks in FinTech payment systems (including cryptocurrencies), credit markets (including peer-to-peer lending), and insurance systems. This paper implements blockchain-based financial technology for the banking sector to overcome these transition issues. In this study, we have proposed an adaptive neuro-fuzzy-based K-nearest neighbors’ algorithm. The chaotic improved foraging optimization algorithm is used to optimize the proposed method. The rolling window autoregressive lag modeling approach analyzes FinTech growth. The proposed algorithm is compared with existing approaches to demonstrate its efficiency. The findings showed that it achieved 91% accuracy, 90% privacy, 96% robustness, and 25% cyber-risk performance. Compared with traditional approaches, the recommended strategy will be more convenient, safe, and effective in the transition period.

Does Meeting Financial Expectations Boost Employee Satisfaction?

Does Meeting Financial Expectations Boost Employee Satisfaction?

Behavioral Biases Affecting Decision-Making in the Financial Market

For decades, the advent of behavioural finance has challenged market finance theories. The latter has been the subject of many criticisms from advocates of behavioral finance especially with regard to the rationality of investors. Indeed, recent studies have shown that investors are subject to bias arising from their own daily behaviour, which can distort their investment decisions. This article is intended to be a study of the different behavioural factors affecting decision-making among retail investors. The analysis of the data was carried out on a sample of 100 Moroccan individual investors. The results enabled a number of factors to be obtained which significantly influenced both the investment intention and the equity market participation. Thus, the financial expectations variable, overconfidence and financial literacy represented significant relationships with the intention to invest, while the financial situation, financial self-efficacy and investment intent significantly affect the equity market participation variable. Moreover, the study rejected the hypothesis that there was a mediating effect of the intention to invest between all the variables taken separately and the variable participation in the stock market.

ПОДАТКОВА АМНІСТІЯ В УКРАЇНІ: ОСОБЛИВОСТІ ЗДІЙСНЕННЯ ТА РЕЗУЛЬТАТИ

The article is devoted to the study of the peculiarities of tax amnesty in Ukraine. In the course of the research, it was found that tax amnesty is not only a need for the socio-economic life of society, but also the implementation of the pre-election program of the current government. It is emphasized that this is the first comprehensive attempt to implement tax amnesty in practice as a tool of financial and tax regulation of the economy. The classification of amnesties in economic activity (tax amnesty, capital amnesty, economic amnesty) was carried out and it was concluded that the Ukrainian version of the amnesty belongs to economic amnesties. The experience of the most successful foreign countries in this field (Indonesia, Argentina, the Republic of Kazakhstan, Italy) was studied. It has been established that world practice proves that the economic benefit of the state during the amnesty can be realized in 3 main ways: depositing legalized funds by declarants in interest-free deposits in state banks for a specified period of time; payment of a one-time tax, which is either equal to the basic rate of income tax, or, as is very often the case in practice, much lower (by 2–3 times) than the basic level; the purchase of government debt securities (usually bonds) with a long period of rotation on the conditions of the absence of fines or the payment of a fixed tax at a small rate. The fiscal, regulatory, investment and social functions of the tax amnesty are characterized and the characteristic features of its implementation in Ukraine are summarized. The opinion was expressed that, despite possible positive benefits in the course of the tax amnesty, it contradicts certain provisions of the Constitution of Ukraine and the principles of taxation, which are reflected in the Tax Code, and may lead to negative expectations among domestic businesses. It was found that according to the results of the tax amnesty, it cannot be considered successful, taking into account the financial expectations that were at the beginning of its implementation and the actual results achieved. this is a long-overdue objective process that requires its implementation in Ukraine. It was concluded that, despite the urgent need to hold a tax amnesty in Ukraine, the failure was due to the incorrectly chosen time of its holding, which fell on the period of the active phase of Russian aggression; lack of significant changes in the current fiscal legislation, trust in the domestic judicial system, effective fight against corruption; conducting active public outreach work among society.

Acceptance of New Standards for Financial Inclusion by Financial Service Providers in Bangladesh

This study looked at the readiness of investors to raise the post-COVID 19 year, using access to financial services as a consideration of their customer’s financial expectations in the future. Standard of living in the financial expectations of their customer. A random sampling modeling method and a survey-based research method were also used in this study. A sample of the research methodology was also used in this study. A total of 110 respondents from the insurance, financial, and banking and non -banking sectors in Bangladesh participated in the survey and provided responses. Hypotheses were tested using descriptive and inferential data, with a threshold of significance of 5 percent considered significant. There has been a significant link between Bangladesh’s socio-economic progress and the adoption of financial intermediation as a new norm in financial transactions, according to the findings. Public finance agencies and individuals are encouraged to create a conducive environment in developing financial technology as a driver of investment in Bangladesh’s rapid growth, it is expected.

Rural Parents' School Choices: Affective, Instrumental and Structural Influences

The paper discusses qualitative findings from an in-depth study of the school choices of 65 parents living in rural and remote areas of Tasmania and their views about the need for their children to move out of the area to pursue education at secondary and post-secondary level. A constructivist analysis of open-ended survey questions and focus group discussions formed part of a broader mixed-methods approach and probed the affective 'subtext' of instrumental survey responses. Findings contribute to our understanding of the interaction of affective, instrumental and structural factors influencing rural parents' educational decision-making in the neo-liberal policy context, especially with regard to decisions perceived by parents as 'risky' with respect to their own future employment and financial expectations. External threats to rural livelihoods, such as economic downturns and natural disasters create parents' feelings of anxiety about children's educational futures and are experienced differently by those living on farming properties or in small rural towns. Parents' perceptions of local and urban school availability, access and quality differ by locality and region. Educational outcomes reflect multidimensional structural, socio-economic and cultural constraints shaping school choice. Membership of voluntary associations, which provides supportive informational networks and develops shared social capital, appears to help parents to overcome socio-economic inequalities and improve their children's prospects of educational success. The interplay of social class, gender and place attachment is examined with reference to Bourdieu's concepts of habitus and disposition, as well as the processes by which parents try to transmit intergenerational advantage through educational choices.

The role of risk attitudes and expectations in household borrowing: evidence from Estonia

ABSTRACT This study investigates the role of risk attitudes and financial expectations in households’ borrowing behaviour. The central research question is whether risk aversion and optimistic expectations provide additional information beyond the main economic and sociodemographic characteristics in predicting applications for credit and the size of debt. The paper uses microdata from the Estonian Household Finance and Consumption Survey (HFCS) and estimates probit and Heckman models. My analysis shows that risk-tolerant households apply for loans more often than risk-averse households do and that their loans are larger. The variables describing the household's expectations for its future financial situation are on their own related to the decision to apply for a loan, but they do not contain any relevant additional information beyond the main economic and sociodemographic characteristics of the household.