scholarly journals Run for the hills: Italian investors' risk appetite before and during the financial crisis

2020 ◽  
Vol 38 (5) ◽  
pp. 1195-1213
Author(s):  
Andrea Lippi ◽  
Simone Rossi
Keyword(s):  
Financial Crisis ◽  
Risk Tolerance ◽  
Financial Advisors ◽  
Content Type ◽  
Risk Appetite ◽  
The 2008 Financial Crisis ◽  
Asset Allocations ◽  
The Relationship ◽  
Asset Managers ◽  
Practical Implications

PurposeThis paper sets out to corroborate the existing literature on investors' risk tolerance and to assess how the 2008 financial crisis has affected risk tolerance among Italian investors.Design/methodology/approachBased on a unique dataset of real-world portfolio choices made by 1,245 Italian investors over a period of 15 years (from 2003 to 2017), this paper presents two steps of analysis. In step 1, the whole period 2003–2017 is considered with the aim to integrate and corroborate the existing literature on the topic of risk tolerance, considering a complete economic and financial cycle. Step 2 took 2008 as the pivotal point between pre-crisis (2003–2008) and crisis (2009–2017) with the aim to observe the influence on risk appetite of the economic and financial effects of the crisis.FindingsThe results obtained confirm that men are more risk tolerant than women and older people are less risk-taking than their younger counterparts, although the relationship between age and risk tolerance is not necessarily linear. Moreover, our paper demonstrates that a crisis scenario has an influence on Italian investors' risk tolerance.Practical implicationsOur results are of interest to financial advisors, financial planners, asset managers, psychologists, behavioral researchers and more in general to providers of financial products and services.Originality/valueThe results presented in this paper are relevant and original because they are based on real investors who made real choices concerning their portfolio asset allocations.

Saving motives, gender, and the use of financial advisory services

2017 ◽  
Vol 43 (11) ◽  
pp. 1202-1223 ◽  
Author(s):  
Cecilia Hermansson
Keyword(s):  
Gender Differences ◽  
Financial Literacy ◽  
Risk Tolerance ◽  
Financial Advisors ◽  
Probit Regression ◽  
Subjective Data ◽  
Content Type ◽  
Advisory Services ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to understand if and how saving motives can predict bank customers’ use of financial advisory services. In addition, it analyzes possible gender differences regarding this relationship. Design/methodology/approach The study uses a large and unique sample of Swedish bank customers, combining objective bank register data with subjective data from a questionnaire. A probit regression is used. Since decisions regarding the use of financial advisory services can be influenced by, e.g., age, wealth, gender and marital status, the author analyzes results at both the overall level and the group level. Findings All three saving motives are found to be predictors, i.e., motives to save for wealth, retirement, and a rainy day (with opposite sign). Only the motive to save for retirement is significant for both women and men. Wealth differences seem more important than gender differences, except for the rainy day motive where gender differences are observed also among the wealthy. Practical implications The study is important since there is a need for financial advisors to understand their customers’ context, including motives to save. Saving motives involving longer time horizons and more uncertainty are likely to predict the use of financial advisory services. Originality/value This paper is original because it deepens the understanding of the relationship between saving motives and customers’ use of financial advisory services, focusing also on the aspect of gender differences, while controlling for demographics and socioeconomics, and customers’ interest and confidence in financial matters, risk tolerance, and financial literacy.

Wall Street women: professional saviors of the global economy

2015 ◽  
Vol 11 (2) ◽  
pp. 137-155 ◽  
Author(s):  
Melissa Fisher
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
First Generation ◽  
Field Work ◽  
Financial Policy ◽  
Wall Street ◽  
Content Type ◽  
Cultural Power ◽  
The 2008 Financial Crisis ◽  
Practical Implications

Purpose – This paper aims to, by drawing on two decades of field work on Wall Street, explore the recent evolution in the gendering of Wall Street, as well as the potential effects – including the reproduction of financiers’ power – of that evolution. The 2008 financial crisis was depicted in strikingly gendered terms – with many commentators articulating a divide between masculine, greedy, risk-taking behavior and feminine, conservative, risk-averse approaches for healing the crisis. For a time, academics, journalists and women on Wall Street appeared to be in agreement in identifying women’s feminine styles as uniquely suited to lead – even repair – the economic debacle. Design/methodology/approach – The article is based on historical research, in-depth interviews and fieldwork with the first generation of Wall Street women from the 1970s up until 2013. Findings – In this article, it is argued that the preoccupation in feminine styles of leadership in finance primarily reproduces the power of white global financial elites rather than changes the culture of Wall Street or breaks down existent structures of power and inequality. Research limitations/implications – The research focuses primarily on the ways American global financial elites maintain power, and does not examine the ways in which the power of other international elites working in finance is reproduced in a similar or different manner. Practical implications – The findings of the article provide practical implications for understanding the gendering of financial policy making and how that gendering maintains or reproduces the economic system. Social implications – The paper provides an understanding of how the gendered rhertoric of the financial crisis maintains not only the economic power of global financial elites in finance but also their social and cultural power. Originality/value – The paper is based on original, unique, historical ethnographic research on the first generation of women on Wall Street.

Governmental management by trust communication: German organizational rhetoric in the 2008 financial crisis

2015 ◽  
Vol 23 (1) ◽  
pp. 33-45
Author(s):  
Jan C. L. König ◽  
Klaus-Peter Wiedmann
Keyword(s):  
Financial Crisis ◽  
Quantitative Research ◽  
Organizational Rhetoric ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Rhetorical Action ◽  
The 2008 Financial Crisis ◽  
The Government ◽  
Governmental Management ◽  
Practical Implications

Purpose – The purpose of the authors of this paper is to observe the German Government’s rhetorical communication measurements during the 2008 financial crisis. Design/methodology/approach – The authors compiled approaches of organizational rhetoric and pragma-linguistics first to offer a consistent concept and method for observation and analysis. Later on, they give an overview of the problem of trust and confidence according to Luhmann’s approach and its meaning for crisis rhetoric and marketing and managing approaches. Findings – In the following case study, the authors offer a rhetorical text analysis, combined with a pragmatic perspective of accompanying legal measurements of the government as non-verbal communication. The authors show how the government re-established trust among German consumers and eventually overcame the crisis mainly by rhetorical action. Research limitations/implications – Regarding future crises, the authors suggest that the interaction of trust, financial markets and rhetorical approaches could be better understood. This could include both more quantitative research and qualitative rhetorical approaches. Practical implications – Practical implications clearly show the importance of rhetorical education, especially for crises. This counts for governmental managers, as well as entrepreneurs and spokesmen. Social implications – The authors also revealed the problem of unjustified trust which can become dangerous for social welfare, even if it is only produced by misleading communication. This problem can only be solved by a careful public regulation. Originality/value – Finally, the authors could describe the importance of effective language and communication as a tool for the German Government in the financial crisis in 2008. It can be also described as an example for decision-makers in similar situations.

Sustainability reporting and bank performance after financial crisis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Sayed M. Fadel ◽  
Jasim Alajmi ◽  
Shahrokh Saudagaran
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Generalized Method Of Moments ◽  
Sustainability Reporting ◽  
Developed Countries ◽  
Bank Performance ◽  
Content Type ◽  
The 2008 Financial Crisis ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the relationship between sustainability reporting and bank performance after financial crisis in developed and developing countries. Design/methodology/approach This study examines 882 banks from developed and developing countries covering 11 years after the 2008 financial crisis. The independent variable is environmental, social and governance (ESG) scores. The dependent variables are return on assets, return on equity and Tobin’s Q. This study uses bank- and country-specific control variables to measure the relationship between sustainability reporting and bank performance. Findings The findings deduced from the empirical results demonstrate that ESG improves banks’ accounting and market-based performance in developed countries, supporting value creation theory. Using pooling regression and instrumental variable – generalized method of moments, this study finds that ESG weakens banks’ performance in developed and developing countries. Originality/value To the best of the author’s knowledge, this is the first study to investigate and compare the impact of sustainability reporting on banks’ performance in developed and developing countries. The study found similarities in the impact of sustainability reporting and the improvement of banks’ current and future performance.

Cash flow volatility and trade credit in Asia

2019 ◽  
Vol 15 (2) ◽  
pp. 257-271 ◽  
Author(s):  
Chris Harris ◽  
Scott Roark ◽  
Zhe Li
Keyword(s):  
Financial Crisis ◽  
Cash Flow ◽  
Trade Credit ◽  
Negative Relationship ◽  
Firm Investment ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Cash Flow Volatility ◽  
The 2008 Financial Crisis ◽  
The Relationship

PurposeThe purpose of this paper is to identify the relation between cash flow volatility and trade credit offered by firms in developing Asian economies.Design/methodology/approachThe study conducts country fixed effect regressions testing the relationship between cash flow volatility and firm investment in trade credit. The relationship is then examined with all firms separated into two groups based on firm size, and then again comparing the relation before and after the 2008 finasncial crisis.FindingsHigher levels of cash flow volatility are negatively related to the amount of trade credit offered. The negative relationship with cash flow volatility is greater amongst smaller firms that may have less access to external sources of capital. Additionally, the negative relationship is greater following the 2008 financial crisis.Practical implicationsTrade credit plays an important role in the business process, particularly in developing economies. However, these firms may not be able to maintain their investment in trade credit when experiencing greater levels of cash flow volatility. These results are especially pronounced after the 2008 financial crisis and for small firms.Originality/valueThis study identifies an important connection between cash flow volatility and firm investment in trade credit among firms in developing Asian economies.

Investigating the relationship between working capital management and business performance: evidence from the 2008 financial crisis of EU-28

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali İhsan Akgün ◽  
Ayyüce Memiş Karataş
Keyword(s):  
Financial Crisis ◽  
Business Performance ◽  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
2008 Financial Crisis ◽  
Working Capital Management ◽  
Content Type ◽  
The 2008 Financial Crisis ◽  
The Relationship

PurposeThis study examines the relationship between working capital management and business performance.Design/methodology/approachThe relationship between the working capital management and business performance is examined using panel data analysis for a sample of EU-28 listed firms for the period from 2003 to 2012. To examine this relationship, an ordinary least squares (OLS) regression model is used to analyze the data obtained from the sample. The dependent variable consists of three measurements, namely return on asset (ROA), return on equity (ROE) and earnings before interest and taxes margin (EBITM), which are used as proxies for accounting-based measures of performance.FindingsThe authors examined the aforementioned relationship during the 2008 financial crisis. The OLS regression analysis suggests that there is a negative relationship between gross working capital and business performance for code law countries. The results also show that liquidity measures estimated by current ratio have a statistically significant impact on business performance indicated by ROA for all EU countries. The 2008 financial crisis had a significantly negative impact on ROA. Additionally, the findings regarding financial inclusion show a negative relationship between gross working capital and business performance among EU and other performer countries.Practical implicationsOverall, the empirical findings are consistent with Afrifa's (2016), who suggests that cash flow should increase investment in working capital to improve performance indicated by EBITM for old EU members.Originality/valueWhile many empirical studies investigate the relationship between working capital and firm profitability, most do not consider the impact of the 2008 financial crisis apart from Tsurate (2019). The authors examine whether legal origins are important determinants of working capital management policies and business performance. Thus, empirically, the code law countries have a negative relationship between gross working capital, business performance and EBITM.

Dave Snowden on KM and big data/analytics: interview with David J. Pauleen

2017 ◽  
Vol 21 (1) ◽  
pp. 12-17 ◽  
Author(s):  
David J. Pauleen
Keyword(s):  
Big Data ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Theory And Practice ◽  
Content Type ◽  
Face To Face ◽  
The Relationship ◽  
A Company ◽  
Practical Implications ◽  
Scientific Officer

Purpose Dave Snowden has been an important voice in knowledge management over the years. As the founder and chief scientific officer of Cognitive Edge, a company focused on the development of the theory and practice of social complexity, he offers informative views on the relationship between big data/analytics and KM. Design/methodology/approach A face-to-face interview was held with Dave Snowden in May 2015 in Auckland, New Zealand. Findings According to Snowden, analytics in the form of algorithms are imperfect and can only to a small extent capture the reasoning and analytical capabilities of people. For this reason, while big data/analytics can be useful, they are limited and must be used in conjunction with human knowledge and reasoning. Practical implications Snowden offers his views on big data/analytics and how they can be used effectively in real world situations in combination with human reasoning and input, for example in fields from resource management to individual health care. Originality/value Snowden is an innovative thinker. He combines knowledge and experience from many fields and offers original views and understanding of big data/analytics, knowledge and management.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

Overconfidence of vocational education students when entering higher education

2015 ◽  
Vol 57 (4) ◽  
pp. 429-447 ◽  
Author(s):  
Mark P. Bowden ◽  
Subhash Abhayawansa ◽  
John Bahtsevanoglou
Keyword(s):  
Higher Education ◽  
Self Efficacy ◽  
Further Education ◽  
Small Sample ◽  
First Year ◽  
Education Students ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose – There is evidence that students who attend Technical and Further Education (TAFE) prior to entering higher education underperform in their first year of study. The purpose of this paper is to examine the role of self-efficacy in understanding the performance of students who completed TAFE in the previous year in a first year subject of microeconomics in a dual sector university in Melbourne, Australia. Design/methodology/approach – The study utilises data collected by surveys of 151 students. Findings – A student’s self-efficacy is positively associated with their marks in a first year subject of microeconomics. However, the relationship between final marks and self-efficacy is negative for those students who attended TAFE in the previous year suggesting that they suffer from the problem of overconfidence. When holding self-efficacy constant, using econometric techniques, TAFE attendance is found to be positively related to final marks. Research limitations/implications – The findings are exploratory (based on a small sample) and lead to a need to conduct cross institutional studies. Practical implications – The research points to the need for early interventions so that TAFE students perform well in their first year of higher education. It also points to potential issues in the development of Victorian Certificate of Applied Learning (VCAL) programs. Originality/value – To the best of the authors’ knowledge, this is the first paper to examine the inter-related impact of attendance at TAFE in the previous year and self-efficacy on the subsequent academic performance of TAFE students.

The impact of project methodologies on project success in different project environments

2016 ◽  
Vol 9 (2) ◽  
pp. 364-388 ◽  
Author(s):  
Robert Joslin ◽  
Ralf Müller
Keyword(s):  
Project Success ◽  
Research Model ◽  
Content Type ◽  
Industrial Sectors ◽  
Project Environment ◽  
Project Governance ◽  
The Impact ◽  
Matching Techniques ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to qualitatively validate the constructs of a theoretically derived research model while gaining insights to steer the direction of a greater study on methodologies, their elements, and their impact on project success. In doing so, to investigate whether different project environments, notably project governance, impacts the relationship between methodologies and project success. Design/methodology/approach – A deductive approach was applied to validate a theoretically derived research model. In total, 19 interviews across 11 industrial sectors and four countries were used to collect data. Pattern-matching techniques were utilized in the analysis to deductively validate the research model. Findings – There is a positive relationship between project methodology elements and the characteristics of project success; however, environmental factors, notably project governance, influence the use and effectiveness of a project methodology and its elements with a resulting impact on the characteristics of project success. Research limitations/implications – Project governance plays a major role in the moderating effect of a project methodology’s effectiveness. Contingency theory is applicable to a project’s methodology’s selection and its customization according to the project environment. Practical implications – Understand the impact of project methodologies and their elements on the characteristics of project success while being moderated by the project environment, for example, the risk of suboptimal project performance due to the effectiveness of methodology elements being negatively impacted by the project environment. Originality/value – The impact of a project methodology (collection of heterogeneous-related elements) on the characteristics of project success is identified while being moderated by the project environment, notably project governance.

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