Long-term individual financial planning under stochastic dominance constraints

2019 ◽  
Vol 292 (2) ◽  
pp. 973-1000 ◽  
Author(s):  
Giorgio Consigli ◽  
Vittorio Moriggia ◽  
Sebastiano Vitali
Keyword(s):  
Stochastic Dominance ◽  
Financial Planning

scholarly journals Personal Finance Knowlegde and Practice: An Opinion Survey with Employed and Self-employed People in Pokhara

2012 ◽  
Vol 7 (1) ◽  
pp. 80-99
Author(s):  
Puspa Raj Sharma ◽  
Yub Raj Bohara
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Sampling Method ◽  
Personal Finance ◽  
Financial Knowledge ◽  
Short Term ◽  
Business Studies ◽  
Personal Finances ◽  
Knowledge And Practice

The ability to manage personal finances has become increasingly important in today's world. People must plan for long - term investments for their retirement and children's education. They must also decide on short - term savings and borrowing for daily life like a down payment for a house, a car loan, and other big - ticket items. Additionally, they must manage their different risk and insurance needs. This is might be the first survey about 'Personal Financial Knowledge and Practice' survey was conducted in 2011 with employed and Self-Employed people in Pokhara, Nepal. The survey revealed encouraging findings about how Employed and Self-Employed people of Pokhara approach money matters. This Personal financial literacy modeling research has been attempted to measure the literacy of Personal Finance with respect to their financial knowledge of different financial instrument and their practice or investment decisions. This study is based on stratified random sampling method with the help of financial literacy related parameters. This study has the intention to explore the skills of financial literacy; hence the objective was to test the basic financial knowledge of key products that is common to current society. In general, both categories have fairly healthy attitudes towards basic money management, financial planning and investment matters. Minorities of respondents of both categories save, monitor their spending and are generally responsible in the use of credit. Most of the respondents recognize the importance of financial planning and have done some basic financial planning.The Journal of Nepalese Business Studies Vol. Vii, No. 1, 2010-2011Page : 80-99Uploaded date: July 8, 2012

scholarly journals Optimizing Long-Term Bank Financial Products Portfolio Problems with a Multiobjective Evolutionary Approach

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-18
Author(s):  
Jian Xiong ◽  
Chao Zhang ◽  
Gang Kou ◽  
Rui Wang ◽  
Hisao Ishibuchi ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Financial Planning ◽  
Large Scale ◽  
Normal Families ◽  
Evolutionary Approach ◽  
Risk Averse ◽  
Decision Support Model ◽  
Financial Products ◽  
Conflicting Objectives

With the development of economy, the requirement of financial planning for individuals or families is emerging. In the era of the Internet, individual investors can conveniently enter the market and purchase financial products. Traditional portfolio management models focus on risky markets such as stock markets. However, risk-averse investors, such as normal families, may concern appropriate long-term financial planning. This paper considers the problem of portfolio management of bank financial products with a long-term planning horizon. By taking into account the final return and the flexibility, a multiobjective model of long-term portfolio is proposed. A multiobjective evolutionary approach is employed for the handling of conflicting objectives. Test instances are generated to illustrate the problem. Experiment results show that the presented algorithm can efficiently find trade-off solutions. Our experimental results also show that crossover probabilities should be separately implemented for long-term portfolio problems with hybrid encoding. Performance comparison of different crossover operators suggest that, for a real-valued encoding part, the simulated binary crossover (SBX) has a better performance than BLX- operator. While for a binary encoding part, a uniform crossover operator might be appropriate for large-scale instances. The proposed multiobjective model in this paper provides risk-averse investors with an appropriate decision support model for the long-term financial planning and management.

scholarly journals OKRES BUDŻETOWY W UJĘCIU POZNAŃSKIEJ SZKOŁY SKARBOWOŚCI

2018 ◽  
Vol 74 (4) ◽  
pp. 17-24
Author(s):  
Jerzy Małecki
Keyword(s):  
World War Ii ◽  
Financial Planning ◽  
Role Model ◽  
Research Work ◽  
Research Centre ◽  
World War ◽  
Local Finance ◽  
State And Local ◽  
Edward Taylor

Poznań School of Public Finance was created in 1919 by professor Edward Taylor, a member of the Law and Economy Faculty of the Poznan´ University, and a mentor and moral role model for thousands of Polish lawyers and economists that followed. For political reasons, for fifty years after World War II, the research work of the Department of Financial Law of the University’s Law and Economy Faculty concentrated on budget laws. In that period Poznan´ became a leading research centre specialising in state and local finance in Poland. The paper presents selected dissertations of the researchers from the Department of Financial Law, devoted to the pioneering aspects of the budget period and long-term financial planning.

scholarly journals Building a model of strategic financial planning for an organization

2019 ◽  
pp. 174-181
Author(s):  
Olga Rudkovskaya ◽  
Vladimir Gerasenko
Keyword(s):  
Financial Planning ◽  
Life Cycle Stage ◽  
Process Approach ◽  
Point Of View ◽  
Financial Resources ◽  
Financial Strategy ◽  
Key Indicator ◽  
Definition Of ◽  
Goals And Objectives

The article considers approaches to the definition of strategic financial planning, reveals their shortcomings and advantages. Objective: To create a methodological basis for the development of the organization's financial strategy. Methodology: The article is based on the results of research of modern domestic and foreign theories of strategic planning. Application of the results: Increase the validity of the management decisions made based on the results of strategic financial planning. Conclusions: Strategic financial planning is proposed to be considered from the point of view of the system and process approach, which will allow to create an effective functional apparatus, including a system of goals and objectives, principles and tools for the formation and use of financial resources to carry out the activities on developing the directions of organization growth. The formed algorithm of developing a strategic financial planning model allows to take into account the organization’s life cycle stage and its market position in the industry when determining the target parameters of financial development in the long term perspective. An indicator of maximizing the return to capital represented by own and borrowed funds is proposed as a key indicator of the model under consideration. Complying with the set of limitations developed, this indicator provides a more reliable and comprehensive assessment of organization’s development planned directions.

scholarly journals Formation of the Mechanism for Financial Planning at the Enterprise in Conditions of Volatility and Instability of the External Environment

2021 ◽  
Vol 9 (524) ◽  
pp. 207-215
Author(s):  
D. I. Dema ◽  
◽  
L. V. Sus ◽  
Y. Y. Sus ◽  
◽  
...  
Keyword(s):  
Financial Planning ◽  
Financial Management ◽  
Financial Stability ◽  
External Environment ◽  
Cash Flows ◽  
Financial Economic ◽  
Point Of View ◽  
Existing Problems ◽  
Advantages And Disadvantages

The research is aimed at theoretical and practical aspects of financial planning of enterprises in conditions of volatility and instability of the external environment. Based on the generalization of approaches to the essence and the meaning of financial planning, its semantic characteristics are determined in terms of methodology in both broad and narrow context. The process of evolution of financial planning is considered from the point of view of formation of systems of financial economic activity management of enterprises, three stages of its genesis with specification of advantages and disadvantages are distinguished. The principles, types and methods of planning are systematized. The stages of financial planning at enterprises are distinguished and their role in balancing financial stability in the process of formation, accumulation, distribution and use of financial resources is determined. Based on the stages of financial planning, three main subsystems of activity planning (strategic forecasting, ongoing financial planning and operational planning of financial activities) are described. On the basis of the analysis of existing problems in financial management in case of instability and recurrence of crisis phenomena, a mechanism for organizing financial planning at enterprises is proposed. The need to improve the effective generation of cash flows in the long term is distinguished, taking into account strategic and long-term financial plans based on the scenario financial planning method.

The Effect of Ambiguity Aversion on Precautionary Effort

2018 ◽  
Vol 26 (3) ◽  
pp. 371-389
Author(s):  
Jimin Hong
Keyword(s):  
Stochastic Dominance ◽  
Ambiguity Aversion ◽  
Sufficient Conditions ◽  
Background Risk ◽  
Risk Averse ◽  
Income Risk ◽  
Order Stochastic Dominance ◽  
Second Order Stochastic Dominance ◽  
Period Model

This study analyzes the effect of ambiguity aversion on precautionary effort under a two period model when background risk like income risk is added to loss. Precautionary effort only affects the probability of loss occurrence. The sufficient conditions under which a risk averse and ambiguity averse individual makes more effort than a risk averse and ambiguity neutral one are as follows. First, the distribution of background risk changes in type of first order stochastic dominance. Second, the distribution of background risk changes in type of second order stochastic dominance and the utility function shows prudence. In both cases, AAA (absolute ambiguity aversion) should not increase. That is, AAA denotes DAAA (Decreasing Absolute Ambiguity Aversion) or CAAA (Constant Absolute Ambiguity Aversion). The effect of AAA is not observed in the existing literatures which assume a one-period model. In a one period model, the effect of AAA on precautionary effort of a long term may have ignored. Lastly, precautionary effort increases if and only if AAA is not increasing in cases when the background risk follows binary distribution or an individual is risk neutral and ambiguity averse.

Consumer centric antecedents to personal financial planning

2019 ◽  
Vol 36 (6) ◽  
pp. 858-868 ◽  
Author(s):  
Francisco Guzman ◽  
Audhesh Paswan ◽  
Niranjan Tripathy
Keyword(s):  
Decision Making ◽  
Consumer Behavior ◽  
Financial Planning ◽  
Research Attention ◽  
Content Type ◽  
Self And Other ◽  
Short And Long Term ◽  
Personal Financial Planning ◽  
Other Orientation

Purpose Personal finance influences everything we buy and is a key driver of all economies. It has attracted significant research attention, mostly grounded in rational economics. However, it has not received adequate research attention in the consumer behavior literature. This study aims to address this gap by looking at some of the consumer-centric antecedents of short- and long-term personal financial planning, i.e. self-other orientation, cognitive style and time orientation. Design/methodology/approach A self-administered survey was used to collect data from full time employees. Hypotheses were tested using multiple regression analyses. Findings Both short- and long-term financial planning are positively associated with non-impulsive and analytical decision-making styles; whereas self and other orientation are only associated with short-term financial planning. Intuitive decision-making is not associated to either short- or long-term financial planning. Research limitations/implications While analytical and long-term orientation are still important for personal finance, in the short run, consumers are also driven by self and other orientation. Practical implications The results are relevant for both products and services that have long-term and short-term financial implications for consumers. Originality/value This study explores financial planning decision-making from a consumer behavior perspective, and addresses a gap in consumer behavior literature.

Strategies of financial behavior of Russians: Concept, dynamics, factors

2021 ◽  
pp. 71-88
Author(s):  
O. E. Kuzina ◽  
D. V. Moiseeva
Keyword(s):  
Higher Education ◽  
Financial Planning ◽  
Positive Relationship ◽  
Planning Horizon ◽  
Demographic Variables ◽  
Demographic Characteristics ◽  
Financial Behavior ◽  
Financial Strategy ◽  
One Year

The article presents the justification of the methodology for studying the strategies of financial behavior of the population, the dynamics of their prevalence in Russia in the period 2009—2020, as well as the assessment of the influence of socio-demographic variables on the probability of having a financial strategy in the household. The analysis of the data obtained from “Monitoring of the financial behavior of the population” for 2009—2020 has demonstrated that the financial planning horizon of the majority of Russians does not exceed one year, about 50% of Russians have long-term financial goals, and about 30% have strategies to achieve them. A positive relationship has been revealed with a number of socio-demographic characteristics that fit into the logic of the life cycle: age, presence of children, higher education and income.

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