Financial Decisions Research Articles

COVID-19 research response to immediate demands: setting priorities with key stakeholders to enable health services research in NSW, Australia

PurposeCOVID-19 has caused unprecedented disruption to health systems. There is much to be gained by capturing what was learned from changes and adaptations made by health services and systems. The Ministry of Health in New South Wales (NSW), Australia, sought to prioritise health services research (HSR) to address critical issues arising from the COVID-19 pandemic. We tested a priority setting methodology to create priorities for a specific funding opportunity and to extract generalisable lessons.Design/methodology/approachA virtual roundtable meeting of key stakeholders was held in June 2020. We used a modified Nominal Group Technique (NGT) for priority setting, with potential items (n = 35) grouped under headings. Data was analysed through a reflective deliberative process.FindingsWe engaged 89 senior policy makers, health service executives, clinicians and researchers in the roundtable. The NGT proved an efficient method with participants reaching consensus on eight priorities. Findings included strong support for learning from the rapid response to COVID-19 and addressing needs of vulnerable populations and the health workforce. Opinions differed about strategic areas investment and where learnings should be via internal evaluation rather than funded research. Three of the eight recommended priorities were included in the funding opportunity.Research limitations/implicationsCoronavirus disease 2019 (COVID-19) required unprecedented change and adaptations within health systems, and rapid, applied health services research can help to create, understand and (where relevant) sustain change beyond the immediate impact of the pandemic. While final decisions may be dependent on a wider range of considerations by government, stakeholder enthusiasm for engagement in priority setting exercises may be dampened if they do not perceive their application in decision-making.Practical implicationsA modified nominal group technique can be used to set research priorities in constrained conditions by engaging large numbers of stakeholders in rankings and then using an online delivery of a roundtable and to reach consensus on priorities in real time. Recommended priorities for health services research can be readily generated through rapid engagement but does not guarantee their application.Social implicationsAustralia’s swift response to COVID-19 pandemic in 2020 was perceived as a relative success due to the rapid public health and policy response and a relatively low number of cases. This response was underpinned by systematic knowledge mobilisation including support for targeted and prioritised health services research to fill knowledge gaps.Originality/valueSetting priority processes can provide rich, engaged input to support government funding decisions about HSR. A wide range of dynamic and iterative processes influence decision-making in a rapidly evolving situation in the health system response to COVID-19. It is crucial to consider how major investment decisions will support a value-based healthcare system.

Systematic review of IPSAS standards: The introduction of IPSAS in public establishments

The ultimate objective of this paper is to examine the impact of the adoption of IPSAS in Morocco on the production of accounting and financial information, in order to inform decision-making processes. IPSAS ushered in a global revolution in public accounting reforms, and Morocco is among the nations that have adopted these standards, starting their implementation several years ago. The integration of IPSAS mobilises a theoretical and conceptual framework encompassing the theories and New Public Management (NPM), as well as the theory of public value. The aim is to harmonise accounting practices with global standards, thereby enhancing the transparency, comparability and credibility of financial information. However, the implementation of IPSAS in Moroccan institutions raises a number of issues and challenges, particularly in terms of adapting systems, training staff and managing costs. To deepen our understanding of this topic, we conducted a bibliometric analysis using the VOSviewer tool. This analysis enabled us to identify influential authors, collaborative networks, and the main and emerging themes in IPSAS research. The results show that the implementation of IPSAS helps to ensure good quality and transparency in public sector financial reporting, providing better information for financial management, accountability and decision making. IPSAS, as international accounting standards specific to the public sector, aim to improve the quality of financial reporting by public entities, thereby enabling more reliable resource allocation decisions and contributing to improved financial transparency and accountability.

Capital structure decisions and R&D investment: The contingency role of firm size

This paper explores how the size of a firm influences the relationship between capital structure choices and research and development (R&D) investment. By analyzing data from publicly listed U.S. pharmaceutical firms between 2011 and 2020 and using an instrumental variables regression, we present evidence that the impact of capital structure on R&D investment varies depending on firm size. Our findings show that firm size plays a critical role in shaping financing decisions to support R&D. Specifically, large and small firms employ different strategies for developing and implementing R&D projects. Our results reveal that R&D investment is negatively (positively) and significantly associated with debt financing (equity financing). Moreover, we show that firm size attenuates the adverse effect of debt financing on R&D investment and accentuates the positive effect of equity financing. Our study provides a refined distinction between debt and equity financing and clarifies the importance of structural characteristics in explaining a firm’s R&D investment decisions. Our study assists policymakers and practitioners in designing effective policies to enhance the understanding of the complex relationship between capital structure decisions and R&D investment.

Effects of Neuroticism–Anxiety and Sociability Personality Traits on the Relationship Between Testosterone and Risk Propensity in Finance

Risky financial decisions, defined as rational calculations between expected risk and reward, are subject to various psychological and neurobiological mechanisms. In this context, the relationship between testosterone levels and risk propensity has been investigated, but the results are inconsistent. Here, the effects of some personality traits, neuroticism–anxiety and sociability, on the relationship between testosterone levels and risk propensity were examined in decisions under risk (GDT) and under uncertainty (BART). In a mixed-sex sample of 100 graduate students and experienced decision makers, we found that basal testosterone levels were positively correlated with risk propensity for decisions under risk in males with low neuroticism–anxiety scores, whereas they were negatively correlated with risk propensity for decisions under risk in males with high neuroticism–anxiety scores. However, they were not correlated in i) decisions under uncertainty in males, independent of neuroticism–anxiety, ii) decisions under risk or under uncertainty in males, independent of sociability, and iii) decisions under risk or under uncertainty in females, independent of sociability and neuroticism–anxiety. These results indicate that neuroticism–anxiety, but not sociability, may affect the relationship between testosterone levels and risk propensity only in decisions under risk and only in males, and provide evidence for the complexity of this relationship in males.

Funding priorities and health outcomes in Danish medical research

External research funding is an essential component of the infrastructure of modern, academic research. Priorities in funding decisions drive what knowledge is generated, and how scientists’ careers are shaped. For health research, it can ultimately have implications for health outcomes. The aim of this paper is to illustrate how funding information can be used to track priorities in health research, linking them to disease burdens and research outputs. Furthermore, funding concentrations are analysed from both researcher and disease perspectives, to estimate the influence of personal Matthew-effects on the distribution of health research funding. Denmark is used as the case, including funding information from all major public and private research foundations in the period 2004–2016. Grant information is linked to research outputs and disability-adjusted life-years (DALY rates), for 34,160 publications linked to 2630 grants, receiving DKK 4.8 billion in funding. Data show poor correlation between funding priorities, research activity and disease burdens, with several diseases receiving disproportionate amounts of funding. A research opportunity index is calculated to identify diseases with the highest potential for future investments from a burden-centred point of view. Funding is highly concentrated, both on people and on specific diseases. High funding concentrations on researchers can be a driving factor behind the observed funding-to-burden imbalances, and may risk knowledge stagnation through monopolisation of the market place of ideas. Results indicate that funders of clinical and translational research, as well as some types of biomedical research, need to supplement traditional considerations of scientific excellence with measures of societal challenges and relevance.

Using publicly available UK datasets to identify recruitment sites to maximise inclusion of under-served groups: three case studies

Background There is strong evidence that those recruited into studies are not always representative of the population for whom the research is most relevant. Development of the study design and funding decisions are points in the research process where considerations about inclusion of under-served populations may usefully be made. Current practical guidance focuses on designing and modifying participant recruitment and retention approaches but an area that has not been addressed is recruitment site selection. Methods We present case studies of three NIHR funded trials to demonstrate how publicly available UK population datasets can be used to facilitate the identification of under-served communities for inclusion in trials. The trials have different designs, address different needs and demonstrate recruitment planning across Trauma centres, NHS Trusts and special educational settings. We describe our use of national freely available datasets, such as those provided by NHS Digital and the Office for National Statistics, to identify potential recruitment sites with consideration of health status, socio-economic status and ethnicity as well as clinical and risk factors to support inclusivity. For all three studies, we produced lists of potential recruitment sites in excess of the number anticipated as necessary to meet the recruitment targets. Discussion We reflect on the challenges to our approach and some potential future developments. The datasets used are all free to use but each has their limitations. Agreeing search parameters, acceptable proxies and identifying the appropriate datasets, then cross referencing between datasets takes considerable time and particular expertise. The case studies are trials, but the methods are generalisable for various other study types. Conclusion Through these exemplars, we aim to build on the NIHR INCLUDE project, by providing trialists with a much needed practical approach to embedding EDI into trial design at the grant application stage.

The behavioral biases on investment decision behavior: Evidence from Indonesia

The purpose of this study to analyze the behavior of investors in making financial investments in Indonesia. Although the overall financial literacy level in Indonesia has increased, individuals with higher levels of financial literacy tend to make more rational investment decisions. Being well-literate can be interpreted as the personal ability to understand and create financial concepts. However, some individuals still need help understanding investment products and services in Indonesia. This is due to the fact that there are still individuals who invest in illegal products. This study focuses on four biases: overconfidence bias, optimism bias, herding effect, and flexing, using quantitative analysis. The decision to invest is influenced by the thoughts of each investor and their optimistic behavior in seeking the highest return on their investment. This study used primary data with descriptive quantitative analysis. The number of respondents used in the overall research was 400, with criteria for investment products. The result of this study shows that the variable of overconfidence, optimism, and flexing affects the behavior of financial investment decisions. However, the variable bias herding effect does not affect the behavior of financial investment decisions. In conclusion, investors should be more cautious in making investment decisions by paying attention to the variables of overconfidence, optimism, herding effect, and flexing social media in Indonesia.

Robust Financing Decisions of Green Supply Chain under Market Risk

Robust Financing Decisions of Green Supply Chain under Market Risk

The Effect of Financial Risks on Financing Decisions of Saudi Commercial Banks - A Field Study on Commercial Banks Operating in Arar City

The Effect of Financial Risks on Financing Decisions of Saudi Commercial Banks - A Field Study on Commercial Banks Operating in Arar City

Beyond age: Decoding the investment DNA of generations Z and Y in Indonesia

Investment decisions are a matter of how individuals should allocate funds into investment forms that provide future benefits. This paper investigates the impact of financial literacy, perceptions of risk and returns, family background, income, and financial technology proficiency on investment decisions among Generations Z and Y in Indonesia. This study uses a quantitative approach, using primary data from 240 respondents through purposive sampling. Primary data were collected through a questionnaire survey to collect respondents’ perceptions and investment decisions. The Likert scale assesses indicators by eliciting responses to statements and questions. The Structural Equation Model Partial Least Square (SEM-PLS) approach was employed for analysis utilizing WarpPLS 8.0 software. The results show that financial literacy, risk and return perception, income, and fintech proficiency significantly influence investment decisions (p < 0.05), while family background does not (p > 0.05). In addition, fintech proficiency mediates the effects of financial literacy, risk perception, family background, and income on investment decisions (p < 0.05). These findings suggest that improving financial literacy and fintech skills can lead to better investment decisions among young investors. This study highlights the need for targeted financial education programs and innovative fintech solutions to support informed investment choices. Further research is recommended to explore additional factors influencing investment decisions and to develop strategies to improve financial decision-making in this demographic group.

Generational differences in payment habits and solutions in the digital space

With the rise of digitalisation, payment habits and solutions have undergone a significant transformation, which is also driven by generational differences. Our study aims to explore how the payment preferences and habits of each generation differ in the digital space. Older generations tend to prefer more conservative payment methods, such as credit cards or cash, while younger generations are more open to modern, innovative solutions such as mobile payments and cryptocurrencies. Our paper highlights the extent to which technological developments and digital literacy are influencing the payment habits of different generations, and how the role of security and convenience is shaping the payment choices of different age groups. The study focuses on the financial literacy of each generation, including how to navigate 21st century finance. It is no exaggeration to say that not everyone has the same knowledge or understanding of modern finance. However, effective financial decision-making requires not only an understanding of traditional finance, but also the ability to keep abreast of the financial changes of the modern age. This study will hopefully shed light on the importance of the subject and the importance of developing financial literacy. We can strongly assume that financial literacy can be characterised at very different levels when looking at different generations, so it seems worthwhile to look more closely at the level of financial literacy among different generations. However, the present study focuses on financial habits and solutions.

Effects of Computerized Accounting Procedures on the Quality of Financial Reporting of Crop Boards in Kilimanjaro

In today's technological world, the use of computerized accounting procedures has become increasingly prevalent across various organizations. Computerized accounting procedures have been employed by organizations for financial record keeping and reporting. Financial reports are an essential source of information needed for different decision makers and other stakeholders. Therefore, this study aimed to establish the effects of computerised accounting procedures on the quality of financial reporting of crop boards in Kilimanjaro region, Tanzania. The study was grounded by Resource-Based View (RBV) developed by Barney in the 1990s. The study applied a descriptive research design under quantitative research approach. Eight (8) crop boards in Moshi Municipality were targeted comprising of Forty (40) staff dealing with accounting and finance. Sample size was obtained through Sample Size Calculation for Finite Population. Data was collected through questionnaires. Face and content validity was used to ensure the validity of the research instruments, and then the instruments were piloted Three (3) accounts and finance employees at Tanzania Coffee board to clarify any ambiguities and checked for consistency of the data to be collected. Reliability was ensured through Cronbach’s alpha test which was run through Statistical Package for Social Sciences (SPSS) and obtained a coefficient of 0.81 which is reliable. Data was analysed through the aid of SPSS and then presented in form of tables, frequencies, percentages and means. Ethical considerations and ethics ethical values were adhered throughout the research process. The study found that computerized accounting procedures had effects on the quality of financial reports of Crop boards in Kilimanjaro region, Tanzania. Basing on the findings it was concluded that the computerized accounting procedures have a positive effect on the quality of financial reporting of Crop Boards in Kilimanjaro. Further, it was concluded that computerized accounting procedures were effective in facilitating decision making and improving the overall quality of financial reporting. This study recommended that Crop Boards in Kilimanjaro should continue using computerized accounting procedures and enhance the system for improved efficiency, accuracy, and accessibility of financial data. Further, it is recommended that Crop Boards should provide training and skill development programs to their accountants. Also, this study provides area for further studies, recommending that further studies could be conducted on the influence of Computerized accounting systems on the Financial Decision Making.

Assessing the Role of Financial Literacy in Enhancing Personal Financial Decision-Making among Students

As students develop long-term financial habits, financial literacy has been increasingly recognised as an essential skill for effective personal financial management. The objective of this research is to assess the impact of financial literacy on improving personal financial decision-making of students. Efficient money management is facilitated by the basic understanding of financial concepts which includes budgeting, saving, investing and managing debt. Financially literate students tend to make informed decisions in the allocation of their resources effectively to meet short-term and long-term goals. The study emphasises the importance of incorporating thorough financial literacy programmes into the university curriculum to equip students with vital skills necessary for prudent financial handling. Personal financial management is essential for students as it lays the foundation for their financial well-being both during their academic years and beyond. The need for financial literacy education among students is further underscored by broader economic benefits such as increased savings rates, lower debt levels and improved economic stability. The research explores obstacles in acquiring financial literacy such as socio-economic limitations, lack of practical financial experience and limited access to financial education resources. The data for the analysis was collected through a questionnaire from 100 respondents using a convenience sampling technique to evaluate how financial literacy helps students make better financial decisions.

Representational visuals of abstract financial concepts: A means to foster financial literacy

Financial literacy is crucial for making sound financial decisions and living a better life. However, the field of finance is full of abstract concepts, such as inflation, liquidity, asset allocation and credit. Abstract concepts may be harder to comprehend than concrete concepts due to their lack of tangible referents in the physical world. In contrast, concrete concepts (e.g., car or house) have a palpable form and can be directly experienced through the senses. Against this background, the question arises of how instructional material can be designed in a way that helps people acquire knowledge about abstract financial concepts. Multimedia learning theories suggest complementing verbal information with visuals that represent the respective topic or concept. Since abstract financial concepts lack palpable, concrete forms, these representational visuals are not simply available but have to be developed. Based on grounded cognition theory, this article discusses three approaches, ‘situations’, ‘emotions’ and ‘metaphors’, which might be used to generate representational visuals of abstract financial concepts. This study aims to provide ideas and enhance our understanding of how grounded cognition theory can be utilized as a guideline to create representational visuals of abstract financial concepts and thus multimedia learning material, which in turn may support increasing people's financial literacy.

Unraveling Investor Behavior: The Role of Hyperbolic Discounting in Panic Selling Behavior on the Global COVID-19 Financial Crisis.

In financial markets, irrational behaviors such as hyperbolic discounting and panic selling are prevalent. However, their widespread empirical associations remain unexplored. Numerous behavioral theories discuss how cognitive biases exacerbate panic selling through the lens of immediate loss aversion, a phenomenon in which individuals exhibit impulsive decision-making tendencies due to an intense fear of financial loss during market upheaval. Despite the theoretical elucidation, empirical investigations of these dynamics are lacking. Using a robust dataset comprising 121,293 active investors sourced from a collaborative effort between Hiroshima University and Rakuten Securities Inc., this study used mean comparison tests and probit regression to analyze hyperbolic discounting's role in panic selling behavior on the global COVID-19 financial crisis. The findings reveal that hyperbolic discounting plays a central role in triggering investors' impulsive panic selling behavior, which is driven primarily by fear of potential losses. Other factors that influence panic selling behavior include age, male gender, low education level, financial literacy, household income, household assets, risk aversion, and overconfidence in financial knowledge. Our study explicates the need to address cognitive biases in financial decision making during market crises through strategies such as targeted financial education, regulatory interventions against market manipulation, and the provision of professional advice to investors.

The development of a capability wellbeing measure in economic evaluation for children and young people aged 11-15

The capability approach provides a broad evaluative space for making funding decisions for health and care interventions, with capability wellbeing as the outcome of value. A range of capability measures have been developed for the economic evaluation of health and care interventions for adults. However, such measures have not been previously developed for children and young people for this purpose and may be valuable. This study aimed to identify important capabilities for children and young people aged 11–15, and to develop these into attributes for an economic measure that can inform funding decisions. Thirty-three qualitative in-depth interviews were undertaken with children and young people aged 11–15 (n = 19) and parents (n = 14) in urban and rural areas of England between September 2019 and November 2021. Purposeful maximum variation sampling ensured representation from different backgrounds. Children and young people were asked to think of things important to them and place these on sticky notes around a drawing/photograph of themselves; the interview asked them about these important things. Parents were asked to identify factors that enhanced and negatively impacted their child's quality of life. Analysis using constant comparison facilitated exploration of similarities and differences in important capabilities. A second phase of semi-structured interviews with children and young people (n = 15) explored how these attributes should be expressed in a meaningful way. Eight overarching capability wellbeing themes were identified, with some variation across children and young people, and parent groups: Fun and enjoyment; Learning and experiencing; Attachment; Emotional security andsupport; Achievement; Identity and choice; Physical safety; Aspiration. Potentially, this information will help to provide an alternative approach to the measurement of benefits to children and young people for economic evaluation of health and care interventions, one that will be better able to capture benefits associated with interventions to improve the social determinants of health.

Digital Financial Capability Scale

Financial digitization is an irreversible phenomenon. The objective of this study is to construct the Digital Financial Capability Scale (DFCS). Starting with the development of a definition, we created a multidimensional scale composed of digital financial knowledge, digital financial behavior, and digital financial confidence. The validation process involved a qualitative stage, consisting of focus groups, expert validation, and pre-testing, and a quantitative stage, with exploratory and confirmatory factor analyses and structural equation modeling. The DFCS assesses an individual’s perception of their ability to apply financial knowledge, adopt appropriate financial behaviors, and feel confident in making financial decisions in a digital environment. The final version of the DFCS consists of a set of 33 items divided into the three dimensions. The scale can be very useful for researchers who wish to study financial capability in the digital environment, for financial agents to evaluate clients, and for assessing the outcomes of public policies aimed at enhancing the financial capability of the population.

Current status, challenges and analysis of financial investment for students: A case study of Vietnam

In the dynamic landscape of global finance, the necessity for financial literacy has become increasingly prominent, especially among younger generations who face unprecedented financial risks and complexities. The paper outlines the critical role of financial education within school curricula, emphasizing its importance in preparing youth to navigate the complexities of financial products and services effectively. As financial responsibilities and decision-making increasingly shift from institutions to individuals, the need for comprehensive financial education from an early age is more pronounced than ever. The paper explores various aspects of implementing financial education in schools, addressing the challenges of integrating such programs into existing curricula, securing necessary resources, and adequately training educators. Through a review of successful case studies from different countries, such as Australia, Brazil, and the United States, effective strategies and practices are highlighted. Particularly, we focus on the analysis the financial case studies of Vietnamese students. These examples demonstrate the importance of political support, stakeholder involvement, and sustainable program implementation to ensure the longevity and impact of financial education initiatives. Additionally, the paper provides a comparative analysis of financial education learning frameworks, which illustrates the diverse approaches tailored to specific educational and national contexts. This analysis underscores the importance of adapting financial education to meet local needs while aligning with broader educational goals. Furthermore, some key policy recommendations are offered to guide schools in supporting and committing to financial education. These include developing clear, measurable objectives for financial literacy programs, creating high-quality teaching materials, and fostering collaborations among governments, educational institutions, and financial experts. Lastly, the paper discusses methods for monitoring and evaluating the effectiveness of financial education programs. It stresses the need for both quantitative and qualitative assessments to ensure these initiatives meet their goals and contribute to the overall financial well-being of students. The conclusion calls for a sustained commitment to financial education, advocating for its integration into national educational policies and curricula. This strategic approach aims to leverage significant economic events to reinforce the value of financial literacy, ensuring that future generations are equipped to make informed financial decisions and contribute positively to the economy.

Assessing Financial Stability through ESG: The Impact of Sustainable Finance on Commercial Banks listed in Pakistan Stock Exchange (PSX)

The notion of sustainable finance, which encompasses environmental, social, and governance (ESG) considerations, has become increasingly prominent in assessing the financial resilience of companies, particularly within the banking industry, in recent times. The primary objective of this research is to examine the influence of ESG practices on the financial stability of commercial banks that are publicly traded on the Pakistan Stock Exchange (PSX). The study utilizes an extensive dataset of 10 years from 2014 to 2023 that includes significant ESG indicators as well as financial performance metrics, spanning multiple years. The study seeks to analyze the impact of sustainable finance practices on the overall financial stability of the chosen banks using advanced statistical techniques and regression analysis. The results of this study are anticipated to provide insight into the possible advantages and drawbacks of incorporating ESG factors into the operational plans of commercial banks. Moreover, this study will make a valuable contribution to the current body of knowledge on sustainable finance, particularly in the context of emerging economies like Pakistan. In such markets, the importance of ESG factors in shaping financial decision-making is undergoing rapid transformation.

Emotional Education for Proper Money Management, Promoting Human Development

This study examines the relationship between emotional education and effective money management, with a particular focus on its impact on human development. It is proposed that the identification and proper management of emotions enables individuals to make more informed financial decisions and to create new economic opportunities. A review of the literature and an empirical analysis demonstrate that digital platforms can be effective in promoting educational content that addresses both emotional and financial backwardness in Mexico. The findings highlight the necessity of integrating emotional education into financial education programs to enhance the general well-being of the population. Furthermore, the “Puntoencomún” platform is presented as an innovative model to promote a positive vision of work and the development of emotional and financial skills.