Combined framing effects on attitudes and behavioral intentions toward mortgage advertisements

2020 ◽  
Vol 38 (4) ◽  
pp. 961-986
Author(s):  
David S. Dobson ◽  
Karolien Poels
Keyword(s):  
Decision Making ◽  
Financial Services ◽  
Behavioral Intentions ◽  
Message Framing ◽  
Framing Effects ◽  
Financial Services Industry ◽  
Mortgage Loans ◽  
Content Type ◽  
Positive Message ◽  
Services Industry

PurposeMortgage lenders often combine a variety of framing strategies when developing mortgage advertisements. To date, these frames have mostly been studied separately. This paper, however, studies the combined framing effects of message valence, specificity, and temporality on consumers' mortgage decision-making.Design/methodology/approachA mixed methods design was used. First, 13 unique print ads collected from a Canadian newspaper were analyzed for content. Second, a 2 × 2 × 2 scenario-based experiment with 400 undergraduate participants examined the framing effects of valence, specificity and temporality on attitudes toward the mortgage advertising message, the product advertised, and the brand, as well as on consumers' behavioral intentions toward the advertised mortgage product.FindingsThe content analysis suggests that combined framing does exist in print ads. A positive message with a fixed term and a specific interest rate were the most commonly used frames. The experiment revealed that, for behavioral intentions, the main effect of the message temporality was significant. The effects of advertising a long-term mortgage on behavioral intentions were more favorable than those of advertising a short-term mortgage.Practical implicationsThis research provides a combined framing model for designing advertising strategies for the financial services industry to market complex financial products, such as mortgage loans to consumers. This is relevant to lenders when designing a persuasive package or ads for potential customers.Originality/valueThis study is the first of its kind to investigate the effects of combinations of message frames on consumers' mortgage decision-making, while also advancing the understanding of message framing theory for the financial services industry.

The effects of IFRS adoption and firm size on audit fees in financial institutions in Ghana

2019 ◽  
Vol 32 (3) ◽  
pp. 436-453
Author(s):  
William Coffie ◽  
Ibrahim Bedi
Keyword(s):  
Financial Institutions ◽  
Firm Size ◽  
Financial Services ◽  
Audit Fees ◽  
Financial Services Industry ◽  
Content Type ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
Services Industry ◽  
The Cost

Purpose This study aims to investigate the effects of international financial reporting standards (IFRS) adoption and firm size on auditors’ fees determination in the Ghanaian financial industry. Design/methodology/approach The authors use the annual report of 52 listed and non-listed firms spanning from 2003 to 2014. Guided by the hypotheses, the authors conditioned audit fees on IFRS adoption and firm size and execute robust fixed effects panel regression. Findings The results show that IFRS adoption has a positive coefficient with audit fees suggesting that the adoption of IFRS, indeed, increases the audit fees paid by banks and insurance firms, as well as the industry as a whole. The results are consistent with the idea that IFRS adoption increases auditor efforts with respect to time and complex nature of some aspect of the standards. Again, as expected, the coefficient of size is positively and significantly related to audit fees. This indicates that the size of the auditee plays a vital role in determining audit fees. Research limitations/implications The study is limited by industry (i.e. the financial services industry) and geography (i.e. Ghana). The authors propose further research that will widely consider other sectors and countries to improve the current scanty literature in this area. Besides, theoretically, the study is limited to the lending credibility theory and feels compelled to reiterate the importance of considering alternative theoretical perspective(s) in future research. Practical implications This study is significant to practitioners as it demonstrates the importance of the determinants of the auditors’ fees. It helps auditors to apply the relevant charging formula when determining audit fees, while it helps managers to improve upon the quality of reporting to control audit bill and forecasting their audit expenditure. Originality/value The results of the study extend the literature on the cost side of IFRS adoption by investigating the financial services industry and non-listed firms in a new context, i.e. a developing country where this research is uncharted. The existing studies based their analysis on either cross-section or pooled analysis and shorter post-adoption period (Cameran and Perotti, 2014). However, using an extended post-adoption period data, the authors base the study on analytical panel model, which directly examine the cost side of IFRS adoption with size as joint key explanatory variables with emphasis on financial institutions and external auditors.

Prospects of an online dispute resolution framework for Islamic Banks in Malaysia

2017 ◽  
Vol 25 (1) ◽  
pp. 39-55 ◽  
Author(s):  
Umar A. Oseni ◽  
Sodiq O. Omoola
Keyword(s):  
Dispute Resolution ◽  
Financial Services ◽  
Internet Banking ◽  
Internet Survey ◽  
Islamic Banking ◽  
Financial Services Industry ◽  
Access To Justice ◽  
Content Type ◽  
Online Dispute Resolution ◽  
Services Industry

Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes.

The impact of entrepreneurial leadership on innovation management and its measurement validation

2017 ◽  
Vol 9 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Avanti Fontana ◽  
Soebowo Musa
Keyword(s):  
Financial Services ◽  
Innovation Management ◽  
Innovation Performance ◽  
Financial Services Industry ◽  
Entrepreneurial Leadership ◽  
Content Type ◽  
Two Samples ◽  
Measurement Validation ◽  
Services Industry ◽  
The Impact

Purpose This paper aims to validate the measurement of entrepreneurial leadership (EL) in the context of innovation management and strategic entrepreneurship, and to examine the relationship between EL and the innovation process (IP). It proposes the measurement of EL and outlines the reason and the importance of EL in the IP. The study further examines whether the IP would have direct impact on innovation performance. Design/methodology/approach The paper opted for an explanatory and confirmatory study using a quantitative approach employing an online survey/questionnaire distributed to two groups of employees representing middle and senior management having mixed background such as finance, marketing, operations and management. The first group consists of 222 respondents spread across multiple industries, and the second group consists of 60 respondents mainly from the financial services industry to validate the measurement of the EL construct. Findings The paper provides empirical insights into the validation of EL measurement through two samples, and on the impact of EL in fostering all elements in the IP (i.e. idea generation, idea selection and development or idea conversion and idea diffusion). The paper also confirms some of the literature views on the difficulty of identifying a significant relationship between the IP and innovation performance. It suggests counterintuitively that the IP may not necessarily have a positive relationship with innovation performance. Research limitations/implications Most of the respondents were those from the financial services industry, which may have an impact on the overall model but less on the validation of the EL measurement. The research affirms the theoretical concept of the dimensions of EL and validates its measurement. The research also shows intriguing findings on the missing link between the IP and innovation performance. Therefore, researchers are encouraged to identify variables or factors that should link the influence of the IP on innovation performance so that the contribution of innovation management to competitiveness can be clearly identified. Practical implications The research validates the measurement of the EL construct, which could be used as a screening tool in measuring the EL capacity at all levels within an organization as part of its leadership development in fostering its IP. Originality/value This paper fulfills an identified need to have a validated measurement of EL and its relationship with the IP.

Brand knowledge transfer via sponsorship in the financial services industry

2014 ◽  
Vol 28 (6) ◽  
pp. 452-459 ◽  
Author(s):  
Sujin Yang ◽  
Sejin Ha
Keyword(s):  
Knowledge Transfer ◽  
South Korea ◽  
Financial Services ◽  
Corporate Image ◽  
Brand Awareness ◽  
Financial Services Industry ◽  
Content Type ◽  
Brand Knowledge ◽  
Services Industry ◽  
Sales Agents

Purpose – The main aim of this study is to develop a framework of brand knowledge transfer through sponsorship for sponsors within an insurance industry in South Korea. To this end, this study explores: how pre-event brand knowledge and perceived sponsor–event fit contribute to post-event brand knowledge and if and how consumers’ attitudes toward insurance agents play a role as a moderator in the model. Brand knowledge is examined in terms of brand awareness and corporate image. Design/methodology/approach – Using a paper-and-pencil survey method, data were gathered from consumers (n = 330) who participated in a parenting education program in which an insurance company partnered with a baby food manufacturer in South Korea. Hypotheses were tested using structural equation modeling. Findings – The results confirm the occurrence of brand knowledge transfer for sponsors via sponsorship. Pre-event brand awareness and corporate image affect post-event brand awareness and corporate image, respectively, while perceived event–sponsor fit affects both attributes of post-event brand knowledge. Further, consumer attitude toward sales agents partially moderates brand knowledge transfer. Research limitations/implications – Because the data focused on a single segment of sponsorship events in the financial service industry in South Korea, the results must be carefully applied to other forms of sponsorship, industries and cultures. Practical implications – This study highlights the effectiveness of sponsorship in the financial services industry. By aligning sponsorship events with sponsors’ characteristics and managing their brand knowledge, companies can maximize brand knowledge transfer contributing to brand equity. Originality/value – This study identifies consumers’ pre-extant attitudes toward sales agents as a moderator that controls brand knowledge transfer, the pre-event and post-event corporate image relationship, specifically.

Exploring the determinants and consequences of salesperson market orientation behavior

2018 ◽  
Vol 28 (2) ◽  
pp. 170-195 ◽  
Author(s):  
Yen-Chun Chen ◽  
Adriana Amaya Rivas ◽  
Wann-Yih Wu
Keyword(s):  
Market Orientation ◽  
Financial Services ◽  
Sales Performance ◽  
Financial Services Industry ◽  
Orientation Behavior ◽  
Research Attention ◽  
Content Type ◽  
Adaptive Selling ◽  
Services Industry ◽  
Antecedents And Consequences

Purpose While the importance of salesperson market orientation behavior (SMOB) is widely acknowledged, as evidenced by the increasing research attention this concept is receiving, discussion of its antecedents and consequences in the literature remains limited. The purpose of this paper is to focus on the antecedents of SMOB and the underlying process through which it influences sales performance. Design/methodology/approach A causal model was developed to analyze the antecedents and consequences of SMOB. This proposed model and various hypotheses were tested using data obtained from a sample of 264 salespeople in the Taiwanese financial services industry. Findings The learning orientation and behavioral controls of salespeople positively influence SMOB. In addition, SMOB plays a critical role in improving two types of “working-smart” behaviors (i.e., sales planning and adaptive selling), thereby achieving better sales performance. Originality/value This report sheds light on the importance of SMOB in today’s personal sales environment and uncovers the underlying mechanisms through which SMOB contributes to sales performance. It also offers specific guidelines for the assessment and management of SMOB to enhance the performance of salespeople within the financial services industry.

Improving financial services data quality – a financial company practice

2015 ◽  
Vol 6 (2) ◽  
pp. 98-110
Author(s):  
Chuan Shi ◽  
Rajesh Jugulum ◽  
Harold Ian Joyce ◽  
Jagmet Singh ◽  
Bob Granese ◽  
...  
Keyword(s):  
Quality Improvement ◽  
Data Quality ◽  
Six Sigma ◽  
Financial Services ◽  
Financial Services Industry ◽  
Content Type ◽  
Critical Data ◽  
Services Industry ◽  
Data Elements ◽  
Financial Company

Purpose – This paper aims to propose a funnel methodology that selects business data elements for data quality improvement practices at a financial company. Data quality is crucial in post-crisis recovery of the financial services industry. This allows the bank to monitor its critical data assets and improve its business operation by Six Sigma engagement that benefits from the good quality of data. Design/methodology/approach – A funnel methodology is invented. It utilizes a rationalization matrix and statistical methods to identify critical data elements (CDEs) for data quality efforts from numerous candidates across business functions. The “Voice of the Customer” is achieved by including subject matter experts, whose knowledge and experience contribute to the entire process. Findings – The methodology eliminates redundancy and reduces the number of data elements to be monitored, so that attention becomes focused on the right elements. In addition, the methodology ensures that the conduct of the data quality assessment is framed within a context of the functional area’s business objectives. Originality/value – Measuring and improving data quality form a solid foundation of every Six Sigma engagement. When presented with large data elements, determining what to measure can be an arduous task. Having a proven systematic and valid process to reduce the CDE candidate pool becomes an operational necessity of paramount importance, and this justifies the value of the proposed methodology. Its implementation is described by a Basel II case study. The methodology is not restricted to financial services industry, and can be used readily in any other industry that requires data quality improvement.

A consideration of the impact of the Companies and Allied Matters Act (1990) and the Insurance Act (2003) on the board of insurance companies in Nigeria. Part 1

2009 ◽  
Vol 51 (5) ◽  
pp. 336-358 ◽  
Author(s):  
Fidelis Ogbuozobe
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Insurance Companies ◽  
Financial Services Industry ◽  
Content Type ◽  
Governance Practices ◽  
Effective Performance ◽  
The Usa ◽  
Services Industry ◽  
The Impact

PurposeThis paper (which is Part 1 of 2) seeks to explore the development and implementation of good corporate governance in the financial services industry in Nigeria.Design/methodology/approachThe paper reflects upon the identification of current problems and official legislative responses in Nigeria and tests the policy and theory against actual responses and practices.FindingsWith the collapse of such mega companies as Enron in the USA and the near‐collapse symptoms observed in such a relatively big company as Cadbury Nigeria, such research as this, on the issue of compliance or otherwise with corporate governance practices by organizations, could not have been undertaken at a more appropriate time than now. Considering the ever‐increasing scope and complexity of the subject, which cannot be covered by a single project, the particular focus here is on the impact of the Companies and Allied Matters Act (1990) and the Insurance Act (2003) on the Boards of insurance companies in Nigeria. In other words, do the said statutes contain sufficient provisions and sanctions to ensure effective performance by Boards of insurance companies in Nigeria?Originality/valueWhile this research paper may not claim to fill this gap completely, it is hoped that it will create sufficient awareness to serve as a springboard for effective entrenchment and enforcement of corporate governance practices in the Nigerian financial services industry (including insurance) in particular and the economy in general.

Spillover effects in the European financial services industry from internal fraud events

2019 ◽  
Vol 20 (3) ◽  
pp. 249-266 ◽  
Author(s):  
Christian Eckert ◽  
Nadine Gatzert ◽  
Alexander Pisula
Keyword(s):  
Financial Services ◽  
Spillover Effects ◽  
Investment Banks ◽  
Contradictory Result ◽  
Financial Services Industry ◽  
Content Type ◽  
Positive Effects ◽  
Market Values ◽  
Services Industry ◽  
Negative Spillover

Purpose Previous research observed that large internal fraud events in the general financial services industry imply negative spillover effects, whereas internal fraud in investment banks can imply significantly positive effects for other banks. This paper aims to shed further light on this contradictory result. Design/methodology/approach For this purpose, the authors compare the spillover effects of the three largest cases of rogue trader events in investment banks (Company 1, 1995; Company 2, 2008; Company 3, 2011) on the largest competing non-announcing banks and insurance companies in Europe based on an event study. Findings The results show that while the respective announcing firm suffered significant market value losses that even led to bankruptcy in case of Company 1, spillover effects on other banks and insurers were twofold. In particular, in case of Company 2 and Company 3, spillover effects on other financial firms were significantly positive depending on the event window, indicating a dominating competitive effect, whereas the Company 1 event with its resulting bankruptcy led to significantly negative spillover effects and thus contagion. Originality/value The results offer a first indication that the severity of the event in terms of its consequences for the announcing firm is crucial, as internal fraud events have the potential to significantly worsen the market values of other financial services firms, which is in contrast to the typically observed positive effects.

“Best interest” of whom?

2016 ◽  
Vol 17 (1) ◽  
pp. 83-100
Author(s):  
Jeffery E. Schaff ◽  
Michele L. Schaff
Keyword(s):  
Conflict Of Interest ◽  
Financial Services ◽  
Conflicts Of Interest ◽  
Standards Of Care ◽  
Financial Services Industry ◽  
Valuable Insight ◽  
Best Interest ◽  
Content Type ◽  
Services Industry ◽  
High Standards

Purpose Explains the US Department of Labor’s newly proposed “Conflicts of Interest” rule and provides a critical analysis of its impact should it be adopted as proposed. Design/methodology/approach Explains the DOL’s proposed Conflict of Interest rule and discusses how it changes the current fiduciary standards of care under ERISA. The article then probes more deeply into the practical matters involved in implementing the rule, and into the realities of how it would impact fiduciary standards generally, investors, the financial services industry and securities arbitrations. Reactions to the proposed rule are then explained against the backdrop of the practical implications thereof. Findings This article concludes that the DOL’s proposed Conflict of Interest rule, albeit well-intended, is not reasonably designed to achieve its stated goal and would instead likely harm those whom it purports to help. Ironically, it also potentially waters down the existing high standards of current fiduciaries. The article supports the DOL’s goal of greater responsibility for financial service professionals and proffers an alternative solution that could achieve the desired result more effectively. Originality/value This article offers valuable insight on the realities of the proposed law and practical guidance on its implications to the investing public, the financial services industry and securities attorneys.

The potential negative impact of the misuse of Transparency International’s corruption index by the financial services industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Graham Baldock
Keyword(s):  
Financial Services ◽  
Service Industry ◽  
Negative Impact ◽  
Financial Service ◽  
Financial Services Industry ◽  
Content Type ◽  
Academic Knowledge ◽  
Financial Service Industry ◽  
Compliance Officers ◽  
Services Industry

Purpose This paper aims to raise awareness of the potential misuse of Transparency International’s Corruption Perception Index (CPI) within the financial services industry and outline the potential negative impact this may have on society in certain developing countries. Design/methodology/approach This piece of research adopted a mix-method approach across three strands; an online line anonymous survey, consisting of 24 questions, face to face interviews with 10 anti-bribery and corruption compliance officers and three focus group, one in Hong Kong, India and Mexico. Findings The results of the research have evidenced that there is a lack of understanding of the methodology used to compile the CPI within the financial services industry and there is a potential adverse impact if misused. Research limitations/implications A potential limitation was the fact that the survey was written in English yet was distributed to some countries where English was not the respondents’ first language. As such, it was accepted that there may have been context challenges or a misunderstanding of what the question asked. Practical implications By raising awareness of the methodology of the CPI and the advantages and disadvantages of its use, it will enable the financial service industry to better understand the implications of using such an index and the impacts of its misuse. Social implications This research highlights that through the potential misuse and lack of understanding of the CPI by the financial services industry this may have an adverse financial, growth and development impact on societies in low ranked countries. Originality/value This paper draws on a sub-set of results from a wider piece of research that was undertaken for a Professional Doctorate. This research combined academic knowledge with practitioner research skills, providing an original contribution to knowledge surrounding corruption from a more targeted focal point, particularly with input from anti-bribery and corruption compliance officers in the financial service industry.

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