scholarly journals Is knowledge that powerful? Financial literacy and access to finance

2018 ◽  
Vol 25 (6) ◽  
pp. 985-1003 ◽  
Author(s):  
Javed Hussain ◽  
Samuel Salia ◽  
Amin Karim
Keyword(s):  
Capital Structure ◽  
Information Asymmetry ◽  
Financial Literacy ◽  
Financial Management ◽  
Firm Growth ◽  
Small Sample ◽  
Monitoring Cost ◽  
Access To Finance ◽  
Content Type ◽  
The Uk

Purpose The purpose of this paper is to examine the relationship between financial literacy, access to finance and growth among small- and medium-sized enterprises (SMEs) within the Midlands region of the UK. It assesses whether financial literacy assists SMEs to overcome information asymmetry, mitigates the need for collateral, optimizes capital structure and improves access to finance. Design/methodology/approach To gain a deeper insight into the complex relationship between financial literacy, access to finance and growth, a qualitative research is carried out among SMEs that have operated for over five years or longer. Using the purposive sampling technique, 37 firms were selected based on size, location and characteristics, mainly from the city of Birmingham and the joining conurbations. Open-ended and a combination of dichotomous questions were used for the survey. Interviews were recorded, transcribed and thematically analyzed. Findings Financial literacy is an interconnecting resource that mitigates information asymmetry and collateral deficit when evaluating loan applications, therefore financial literacy should be part of school curriculum. The analysis suggests enhanced financial literacy, reduces monitoring cost and serves to optimize firms’ capital structure that positively impacts on SMEs growth. Financial management knowledge is recognized as the core resource that aids an effective decision making by owners of SMEs. Research limitations/implications The limitation of this research is the small sample that limits its generalization. Its findings could be enhanced by a larger sample and by conducting comparative studies in other regions or economies. SMEs growth is seen as a strategic policy to stimulate enterprise but the finance gap tends to constrain that objective. The UK Government’s effort to improve access to finance and to mitigate excessive collateral demands by lenders has proved elusive. This empirical research provides evidence that financial literacy enhances access to finance and, in turn, promotes growth potentials. Practical implications The results of this study advocate the provision of financial literacy at schools and target support for SMEs to acquire financial management skills in order to mitigate information asymmetry between lenders and borrowers. Social implications Findings suggest that financial literacy mediates access to finance, enables enterprises to use optimal financial structure to mitigate business failure, creates employment and reduces public sector support for social benefits. Originality/value This study is novel in that it examines financial literacy and its implications for access to finance and firm growth in the UK. The study is an effort to highlight the role of financial information in mitigating barriers to finance for SMEs.

“There is still a perception that homelessness is a housing problem”: devolution, homelessness and health in the UK

2016 ◽  
Vol 19 (2) ◽  
pp. 33-44 ◽  
Author(s):  
Martin Whiteford ◽  
Glenn Simpson
Keyword(s):  
Qualitative Interviews ◽  
Homeless People ◽  
Small Sample ◽  
Issue Salience ◽  
Structured Interviews ◽  
Healthcare Provision ◽  
Policy And Practice ◽  
Content Type ◽  
The Uk ◽  
Comparative Policy

Purpose The purpose of this paper is to provide an exploratory account of the links between devolution, homelessness and health in the UK. Specifically, it focusses on the policy context and governance structures that shape the systems of healthcare for homeless people in London, Scotland, Wales and Northern Ireland. Design/methodology/approach Empirically the paper draws on semi-structured interviews with a small sample of policy and practice actors from the devolved territories. Qualitative interviews were supplemented by a comparative policy analysis of the homelessness and health agenda within the devolved regions. Theoretically, it takes inspiration from Chaney’s concept of the “issue salience of homelessness” and explores the comparative character of healthcare as pertains to homeless people across the devolved territories. Findings The paper provides clear evidence of areas of divergence and convergence in policy and practice between the devolved regions. These features are shown to be strongly mediated by the interplay of two factors: first, the scope and scale of national and local homelessness prevention strategies; and second, intra-national variation in public health responses to homelessness. Originality/value The paper offers considerable insight from a comparative policy perspective into the nature of healthcare provision for homeless people in the devolved regions.

Struggling to make ends meet: can consumer financial behaviors improve?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa K. Meneau ◽  
Janakiraman Moorthy
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Group Analysis ◽  
Self Control ◽  
Thinking Styles ◽  
Financial Health ◽  
Content Type ◽  
Financial Behaviors ◽  
Financial Products ◽  
The Impact

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.

scholarly journals Austerity and financial governance: a UK case study of the National Health Service

2014 ◽  
Vol 27 (3) ◽  
pp. 212-224 ◽  
Author(s):  
Malcolm Prowle ◽  
Don Harradine
Keyword(s):  
Financial Management ◽  
Good Practice ◽  
Management Systems ◽  
Executive Directors ◽  
Structured Interviews ◽  
Content Type ◽  
Financial Governance ◽  
Governance Process ◽  
The Uk ◽  
Finance Directors

Purpose – This research concerns the issue of financial governance within the UK NHS and aims to assess the effectiveness of existing financial governance arrangements in the main providers of health services in the UK. Also considered is the importance of good financial governance in a time of financial austerity. Design/methodology/approach – The primary research for this project was based on the use of a questionnaire to all finance directors in NHSTs in England supported by semi-structured interviews with: finance directors, non-executive directors, executive directors and senior finance staff. Findings – Among the main findings of the study were: certain financial management systems were not prioritised in line with what is seen as good practice; existing financial management systems were not always seen as adequate for the achievement of good financial governance; there was sometimes a lack of understanding of financial issues by non-executive directors; and the complexity of the NHS funding process often resulted in opaqueness of the financial risks. Research limitations/implications – The research is limited by the relatively small coverage of NHS trusts but this has been compensated for by a series of in-depth interviews with key stakeholders in the governance process. Practical implications – Weaknesses in financial governance could result in further scandals which result in loss of life and poor patient care. Originality/value – There are many papers on the issue of governance in the public sector in general and the NHS in particular. However, there is little published on the issue of financial governance in the NHS. Also of great value is the emphasis on strengthening financial governance in an era of austerity

Living beyond one’s means: evidence from Malaysia

2015 ◽  
Vol 43 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Yiing Jia Loke
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Financial Distress ◽  
Financial Management ◽  
Practical Knowledge ◽  
Financial Education ◽  
Financial Knowledge ◽  
Content Type ◽  
Explanatory Variables ◽  
Financial Behaviour

Purpose – The purpose of the paper is to identify the determinants of the probability of living beyond one’s means. The paper also explores the coping mechanisms of those financially distressed as well as the debt taking behaviour of consumers. Design/methodology/approach – The study uses data obtained from the OECD International Network on Financial Education pilot study on Measuring Financial Literacy in 2010 for the case of Malaysia. A logistic regression model is used to identify the main determinants of the probability that a consumer will live beyond his/her means. The analysis is carried out by using a set of socio-economic factors and the individual’s financial behaviour and attitudinal characteristics as explanatory variables. Findings – The findings indicate that low income and seasonal income earners are more vulnerable to financial distress. Furthermore, having a higher education, higher financial knowledge and prudent financial behaviour and attitude do not necessarily translate into better financial management. Family and friends provide the main source of financial assistance in times of need. Research limitations/implications – The assessment of financial knowledge should go beyond individual’s knowledge on financial concepts and theories. Practical knowledge on financial and cash flow management should be assessed. Practical implications – The study reiterates the importance of financial education. It is imperative to include financial education as part of the schools’ curriculum and also to be incorporated as part of the Continuous Professional Development modules for working adults. Originality/value – The study is based on the first nationwide study of consumer finances in Malaysia. It contributes to the literature by integrating financial behaviour and attitudinal factors into the analysis of the ability of individuals to live within their means. The findings also show the limitations of the existing self-assessment of financial behaviour and attitude and the assessment of financial knowledge.

scholarly journals Trade-based money laundering (TBML) empowers criminals to run free post-Brexit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariola Jolanta Marzouk
Keyword(s):  
Developing Countries ◽  
Law Enforcement ◽  
Money Laundering ◽  
Subject Matter ◽  
Small Sample ◽  
Subject Matter Experts ◽  
Structured Interviews ◽  
Content Type ◽  
The Government ◽  
The Uk

Purpose This paper aims to provide unique empirical findings exploring the impact of the UK’s post-Brexit Economic Strategy to boost trade with developing countries on the UK banking sector’s ability to manage trade-based money laundering risks. Design/methodology/approach Exploratory research design that used structured literature review, followed by semi-structured interviews with key subject matter experts employed by large UK banks. Findings Both banks and law enforcement struggle to prioritise trade-based money laundering (TBML) intelligence discovery due to deficient skills, resources, technology and lack of strong regulatory stimulus. The regulated sector calls for the UK anti-money laundering (AML) reform that would better incentivise TBML deterrence, yet the Government underestimates the money laundering risks while trading with high-risk jurisdictions post-Brexit. Research limitations/implications The findings are based on a small sample of six semi-structured interviews with difficult to access population of key subject matter experts. Despite the small sample, participants provided well-articulated and informed insights. Practical implications The UK’s post-Brexit Economic Strategy to boost trade with developing countries downplays the TBML risks it carries. The findings should alert UK banks, law enforcement and the Government who will collectively bear the responsibility to effectively manage TBML while enabling smooth trading. Originality/value The research provides unique perceptions of UK banks’ senior subject matter experts on managing TBML threats from opportunistic criminals.

Identifying the determinants of Malaysian corporate Sukuk rating

2018 ◽  
Vol 11 (3) ◽  
pp. 432-448 ◽  
Author(s):  
Nur Amirah Borhan ◽  
Noryati Ahmad
Keyword(s):  
Information Asymmetry ◽  
Multinomial Logistic Regression ◽  
Small Sample Size ◽  
Small Sample ◽  
Third Party ◽  
Significant Variable ◽  
Content Type ◽  
Rating Agencies ◽  
High Level ◽  
Rating Category

Purpose This study aims to identify the determinants of Malaysian corporate Sukuk rating and attempts to find out which determinant has the most significant impact. Design/methodology/approach The framework tries to establish a relationship between firm’s size, profitability, Sukuk guarantee status and types of Sukuk with Sukuk rating from the perspective of Agency Theory and Information Asymmetry Theory. The data consist of 43 Sukuk issuances from 2006 to 2015. Multinomial Logistic Regression Model is then used to find out the significant determinants of Sukuk rating. Findings The study found that only three variables significantly impact Sukuk rating. The results show that a guaranteed Sukuk Ijarah or a guaranteed Sukuk Musyarakah that is issued by a highly profitable firm has a higher likelihood of getting rating AAA or rating AA as compared to getting rating A. A type of Sukuk, particularly Sukuk Murabahah, is the most significant variable influencing Sukuk rating. However, firm size is not a significant determinant of Sukuk rating in the context of this study. Research limitations implications The first limitation of the study is the relatively small sample size. Second, the study only tested four independent variables. Practical implications Several implications are derived from the results of the study. First, new firms that are planning to issue Sukuk should consistently maintain a high level of profit and consider issuing debt-based Sukuk to ensure that the issued Sukuk have higher rating. To increase the likelihood of getting higher rating, they should also consider providing a third-party guarantor. As for existing Sukuk issuers that are in lower rating category, they should increase their profitability to be upgraded to higher rating category. Second, risk-adverse investors should invest in highly profitable, guaranteed and debt-based Sukuk, as these Sukuk are likely to be in higher rating category and provide guarantee in terms of capital payments during liquidation or bankruptcy. Third, to reduce information asymmetry, policymakers should make it compulsory for all Sukuk issuers to have their Sukuk rated annually and make it mandatory for all rating agencies in Malaysia to publish their Sukuk rating methodologies. Originality/value This paper helps to expand the limited existing literature about the determinants of Sukuk rating, particularly for the Malaysian corporate Sukuk.

Women’s financial planning for retirement

2019 ◽  
Vol 37 (1) ◽  
pp. 120-141 ◽  
Author(s):  
Satish Kumar ◽  
Sweta Tomar ◽  
Deepak Verma
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Financial Management ◽  
Future Research ◽  
Content Type ◽  
Developed Economies ◽  
Factors Influencing ◽  
The Status ◽  
Socio Demographic Factors ◽  
Women's Retirement

PurposeThe purpose of this paper is to examine the status of the research on women’s financial planning for retirement. This paper provides a brief review of the work carried out so far along with a conceptual framework of factors influencing women’s retirement financial planning. In addition, it lists significant gaps and recommends avenues for future research.Design/methodology/approachThe review is based on 151 articles appearing in various peer-reviewed journals published during 1980–2017. The study establishes its prominence by studying the publication activities based on the year of publication and region, citation analysis, research designs, data analysis techniques and findings from the selected articles.FindingsMost of the literature on women’s financial planning for retirement indicates a lack of financial management amongst women and their susceptibility to poverty in postretirement years. The majority of the research works in this field have taken place in developed economies. Empirical research with regression-based models for analysis is the most popular research design. This review also highlights the significant determinants of women’s retirement financial planning as identified through literature. These include socio-demographic factors, psychological constructs, financial literacy, economic and circumstantial forces.Originality/valueThis paper covers the research works done in this area in the past 38 years. To the best of authors’ knowledge, this is the first attempt to provide a systematic and comprehensive compilation of the knowledge in this subject. It further synthesizes the findings of various studies on factors influencing women’s retirement financial planning and gives recommendations for future studies.

How entrepreneurial resilience generates resilient SMEs

2018 ◽  
Vol 24 (7) ◽  
pp. 1244-1263 ◽  
Author(s):  
Layla Jayne Branicki ◽  
Bridgette Sullivan-Taylor ◽  
Sarah Rachael Livschitz
Keyword(s):  
Best Practices ◽  
Qualitative Data ◽  
Small Sample ◽  
Uncertain Environments ◽  
Policy And Practice ◽  
Content Type ◽  
Organizational Settings ◽  
Multi Level ◽  
The Uk ◽  
Practical Implications

Purpose The purpose of this paper is to investigate how entrepreneurial behaviors support small and medium-sized enterprise (SME) resilience, refine the concept of entrepreneurial resilience, and identify how SME resilience might be promoted. Design/methodology/approach Qualitative data were collected in the UK via 11 focus groups which provided a sub-sample of 19 SME participants. Findings Because of their experience operating in uncertain environments, their direct experience of adversity, and the informal organizational settings they inhabit, entrepreneurs are often highly resilient and possess capabilities that enable SMEs to be resilient. Entrepreneurial resilience provides a basis for SME resilience that differs significantly from best practices as understood in larger firms. Research limitations/implications Exploratory qualitative research on a small sample (n=19) limits the generalizability of this work. Further research could quantitatively test the paper’s findings and/or examine the link between entrepreneurial resilience and the resilience of larger firms. Practical implications Rather than encouraging formal planning and redundancy, policy and practice designed to promote the resilience of SMEs should pay greater attention to building capacities to cope with uncertainty, generating and leveraging personal relationships, and activating the ability to experiment and think creatively in response to crises. Originality/value This paper draws on organizational psychology research to refine understanding of entrepreneurial resilience and to empirically examine and inductively theorize the multi-level relationships between entrepreneurial resilience and SME resilience.

The inevitability of digital transfer

2019 ◽  
Vol 29 (1/2) ◽  
pp. 224-239 ◽  
Author(s):  
Lale Özdemir
Keyword(s):  
Major Change ◽  
Target Population ◽  
Small Sample ◽  
Original Research ◽  
Content Type ◽  
Transfer Rule ◽  
National Archives ◽  
Research Findings ◽  
The Uk ◽  
Public Bodies

Purpose This paper aims to assess how prepared public bodies are for the transfer of born-digital records to the National Archives (TNA) of the UK in line with the reduction in the transfer rule from 30 to 20 years. Design/methodology/approach The change in the transfer rule means that records of UK public bodies will be transferred to TNA for permanent preservation at 20 years as opposed to 30 years old. This move, which has been described as a major change that is going to be introduced in a manageable and affordable way (20-year rule, The National Archives), will inevitably witness the transfer of born-digital records to the archives much earlier than would have been the case if the change in the transfer rule had not been made. This paper reports on research carried out in the winter of 2017 on the extent to which UK public bodies are prepared for the transfer of born-digital records to TNA. Research was based on a survey of 23 public bodies which included ministries, charities and non-departmental public bodies. The target population was predominantly public bodies that had the highest level of transfer of records to TNA. The justification for this lies in the fact that these bodies, amongst others, transfer the most records to TNA, thus it would be interesting to gain an insight into how prepared these relatively larger public bodies are with regard to born-digital transfer. The remaining public bodies were chosen randomly amongst non-ministerial departments. The primary areas under analysis are plans of public bodies for the transfer of born-digital records, processes for transfer to be undertaken such as selection, appraisal etc., the use of technology in sensitivity review and the trigger date for the transfer of records. Findings An analysis of the research findings found that while a few UK public bodies surveyed had transferred datasets within the framework of the TNA Government Datasets (NDAD) initiative or as part of an inquiry, only one public body had transferred other born-digital records to TNA. The findings also reveal that most public bodies are yet to plan for, or to adjust, their current archival processes to take into account the different mind-set and skills required for the transfer of born-digital records. The level of preparedness is therefore limited primarily because public bodies have yet to undertake a transfer of born-digital records to the archives. The research findings also revealed that public bodies had not as yet made adjustments or changes to current practice to take into account the issues relating to the processing of born-digital records prior to transfer. Research limitations/implications The findings of the research at hand are based on a survey submitted electronically to twenty-three public bodies with the aim of assessing how prepared they are for the transfer of born-digital records to the National Archives (TNA). The survey was sent to 27 public bodies with responses received by 23 public bodies. The survey sent to these bodies comprises eight questions that were deemed to be important in the current digital landscape with regard to the processes involved in the transfer of records, beginning from their creation. Thus, an element of subjectivity exists with regard to the outcome of the research, as the public bodies chosen were guided in prioritising any issues about digital transfer through the questions posed. The research carried out is also limited in that it focuses primarily on ministerial departments (14 of the 23 surveyed) and also constitutes a very small sample of UK public bodies overall. However, the originality of the data obtained through the study carried out by far outweighs the limitations of the research methodology. Originality/value This paper highlights that the transfer of born-digital records through original research amongst the 23 public bodies surveyed is not widespread, and that processes and procedures specifically for the management of processes for born-digital records are yet to be implemented. The study concludes that long-term planning for the transfer of born-digital records is yet to be undertaken and that public bodies are more likely to deal with the issue when their digital records are closer to reaching the point of transfer.

The capital structure decisions of Islamic banks in the GCC

2020 ◽  
Vol 11 (3) ◽  
pp. 745-764 ◽  
Author(s):  
Sayed Hashem Al-Hunnayan
Keyword(s):  
Capital Structure ◽  
Financial Markets ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Monitoring Cost ◽  
Content Type ◽  
Regulatory Bodies ◽  
Financial Regulatory ◽  
The Capital Structure

Purpose This study aims to find the determinants of the capital structure of Islamic banks in the Gulf Cooperation Council countries (GCC). The uniqueness of the case of Islamic banks stems from the fact that they are not only subject to the supervision of financial regulatory bodies that organize the banking sector (e.g. central banks) but also subject to the guidelines of Shari’ah law governing their financial transactions, products and contracts. Such characteristics are expected to have an impact on the capital structure decisions of Islamic banks compared to their conventional counterparts. Design/methodology/approach To achieve the research purpose, an empirical model was constructed to describe the relationship between leverage and the independent variables. The empirical model was tested through multivariate regression analysis using a panel data approach of 12 Islamic banks in the GCC for the period 2005-2014. Three types of regression analysis were used as follows: ordinary least squares (OLS), fixed-effect and random-effect regressions on panel data. Findings The research findings show that the leverage of Islamic banks in the GCC is positively related to size of the firm (SIZE) and growth opportunity (GROWTH); and it is negatively related to profitability of the firm (ROA), tangibility of the firm’s assets (TANG) and financial market development (MRKT). The results indicate that larger Islamic banks tend to be relatively more diversified with higher credit ratings, which lower their cost of funding and relatively increase its profitability and the bank’s customer/depositor base. The results also show that higher profitability ratios indicate relatively more internal funds to cover future investments, which leads to less reliance on external funds in the form of debt and/or equity. However, the higher the growth opportunities of Islamic banks, the faster the depletion rate of internal funding, and the more external debt financing is acquired to cover the expansion plans. In addition, the results show that in developed financial markets, savers tend to purchase less traditional depository products, and they prefer to invest directly in the financial markets to avoid higher commissions. The results are in line with the pecking order theory, which states that Islamic banks in the GCC tend to prefer sources of funds that have the least transaction cost and reveal minimal information to competitors. Hence, bank management resort to internally generated funds by its operations rather than acquiring external funds. Furthermore, the results are weakly explained by the agency theory, which states that as the firm assets become more tangible, the required monitoring cost is reduced; and hence, shareholders will have less tendency to raise more debt for the purpose of sharing the monitoring cost with debt holders. Research limitations/implications This research study contributes to the theory of capital structure in re-validating the findings of a previous theoretical and empirical study on capital structure in the GCC and abroad. It helps understand the capital structure of Islamic banks in comparison with financial and non-financial firms. Future research is recommended in several areas. In terms of the methodology, it is recommended to conduct the research topic surveying management and financial executives of Islamic banks in the GCC; this will validate the results using a triangular approach supported by the findings of this paper. It is also recommended to apply the research methodology in other parts of the world where Islamic banking exists. Finally, as studies on the capital structure of financial institutions and other regulated sectors are rare, it is recommended to intensify research effort in these sectors to strengthen our knowledge of capital structure. Practical implications From a practical perspective, this research bridges the gap between theory and practice in many aspects. The findings can serve Islamic bank executives as guidelines to understand the market and competitive reaction in response to capital structure decisions. On the other hand, research analysts and equity holders can use the findings in their debt and equity research valuations, assessment of the size of dividends and profit distributions, and to make more informed decisions to buy/sell financial securities. Furthermore, the findings help regulatory bodies to issue informed regulations in relation to capital adequacy ratios, reserve requirements, provisions and payout decisions to achieve policy intended purpose. In addition, organizations that are responsible for setting accounting and audit standards for Islamic banks will learn more about the industry practice; and hence, be able to pass practical standards. Moreover, the findings realize the recommendations of international financial regulatory bodies, such as the International Monetary Fund (IMF), the World Bank (WB) and other concerned organizations that emphasize the importance of further understanding of financial institution practices, to enable more effective formulation of risk management techniques, which may prevent future financial crisis. Originality/value This paper was amongst the few research studies conducted on determinants of capital structure in the GCC and specifically on the Islamic banking sector.

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