Financial risk perceptions: a consciousness perspective

2014 ◽  
Vol 6 (1) ◽  
pp. 66-74 ◽  
Author(s):  
Robert A. Olsen
Keyword(s):  
Sample Size ◽  
Risk Perceptions ◽  
Financial Risk ◽  
Design Methodology ◽  
Interpersonal Trust ◽  
Human Consciousness ◽  
Content Type ◽  
Market Participants ◽  
Significant Bias ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate the implications of human consciousness relative to financial risk perceptions. Design/methodology/approach – After conceptually identifying that risk perceptions qualify as a Qualia, survey data are gathered from investment experts to clarify the implications. Findings – Financial risk perceptions are Qualia and as such should have a strong affective influence on risk perceptions. This suggests that aggregate market measures of financial risk may be difficult to obtain and utilize. Research limitations/implications – Sample size could be larger and more complete implications need to be investigated. Sample unlikely to exhibit significant bias. Practical implications – Going to be difficult to devise aggregate measures of financial risk across market participants. Social implications – Risk is going to be heavily affective in orientation and interpersonal Trust is a financial risk attribute. Originality/value – Is quite original as the author has never seen another paper look to the implications of consciousness for financial risk perceptions or even Trust. Breaks new ground!

CFTC overhauls customer protection requirements

2014 ◽  
Vol 15 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Robert M. Brown
Keyword(s):  
Design Methodology ◽  
Commodity Futures ◽  
Regulatory Regime ◽  
Futures Trading ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Policies And Procedures ◽  
Practical Implications

Purpose – The purpose of the paper is to summarize the Commodity Futures Trading Commission's (CFTC) recent overhaul of its customer protection rules, which regulate how futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) handle customer funds. Design/methodology/approach – The paper summarizes the most significant aspects of the CFTC's October 30, 2013 customer protection rulemaking, explains FCM and DCO obligations under the new regulatory regime, and sets forth a compliance timeline. Findings – The CFTC's recent overhaul of its customer protection rules impose significant new requirements on FCMs and DCOs in their handling of customer funds. Practical implications – All FCMs and DCOs that handle customer funds should review these new rules and begin putting into place policies and procedures to ensure their compliance as each new requirement comes into effect. Originality/value – The CFTC's overhaul of its customer protection regime is new and significant. FCMs and DCOs need to understand their new obligations under the rules. As these new rules are the CFTC's regulatory response to the events that led to the insolvencies of MF Global and Peregrine Financial Group, these developments also should be of interest to futures and swaps market participants generally.

ESMA issues Brexit opinions to EU regulators: a warning shot not only to the UK but also to the EU27

2017 ◽  
Vol 18 (4) ◽  
pp. 50-52
Author(s):  
William Yonge ◽  
Simon Currie
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Financial Firms ◽  
Practical Guidance ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose To summarize and analyse four opinions issued in May and July 2017 by the European Securities and Markets Authority (“ESMA”) concerning regulatory and supervisory arbitrage risks that arise as a result of increased requests from financial market participants to relocate activities and functions in the EU27 following the UK’s decision to withdraw from the EU, and the expected regulatory response to those risks. Design/methodology/approach Discusses the possible relocation of financial firms, activities and functions following the UK’s decision to withdraw from EU; the resulting cross-sectoral regulatory and supervisory arbitrage risks that ESMA foresees; nine principles that ESMA enumerates to guide its regulatory response to those risks; some common themes that emerge from ESMA’s July Opinions; and the implications for UK firms and trading venues seeking to establish a presence in the EU 27. Findings ESMA foresees regulatory and arbitrage risks in Brexit and a potential “race to the bottom” as certain national regulators jostle for and grab UK market share. Practical implications UK firms and trading venues seeking to establish a presence in the EU27 from which to operate will need to give detailed consideration and focus to the resources and operational substance which will need to be located in the jurisdiction in which that presence is established. Originality/value Practical guidance from experienced financial services, securities and fund management lawyers.

DuPont analysis and dividend policy: empirical evidence from Malaysia

2018 ◽  
Vol 30 (1) ◽  
pp. 52-72
Author(s):  
Samuel Jebaraj Benjamin ◽  
Zulkifflee Bin Mohamed ◽  
M. Srikamaladevi Marathamuthu
Keyword(s):  
Design Methodology ◽  
Dividend Policy ◽  
Explanatory Power ◽  
Return On Assets ◽  
Policy Studies ◽  
Content Type ◽  
Market Participants ◽  
Dupont Analysis ◽  
Asset Turnover ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the informativeness of asset turnover (ATO) and profit margin (PM) of the DuPont analysis in explaining dividend policy. Design/methodology/approach Annual financial data from Compustat for the period 2004-2009 were used to analyze a sample of Malaysian firms. Findings This study finds both PM and ATO to strongly explain contemporaneous dividends. The decomposition of return on net operating assets (RNOA) into PM and ATO also improves the explanatory power of dividends. The results of the predictive model show that PM and ATO are useful in predicting the propensity of firms to pay dividends. The results of the change dividend model, however, do not provide any significant results for PM and ATO. Practical implications Understanding the influence of ATO and PM on dividends could enable managers to realize the importance of these factors when making dividend policy decisions. Other market participants, such as financial analysts and lenders, could also recognize the empirical specifics related to decomposing the profitability measure into its two components, one measuring the asset efficiency and the other measuring the profitability per unit of product, in the context of dividend policy. Originality/value This study extends the empirical specifics of prior dividend policy studies by decomposing the popular profitability measure of return on assets into its two components of PM and ATO.

A “family of cycles” – major and auxiliary business cycles

2014 ◽  
Vol 32 (3) ◽  
pp. 306-323 ◽  
Author(s):  
Arvydas Jadevicius ◽  
Simon Huston
Keyword(s):  
Systematic Review ◽  
Business Cycles ◽  
Design Methodology ◽  
Market Dynamics ◽  
Property Market ◽  
Proper Understanding ◽  
Content Type ◽  
Market Participants ◽  
Practical Implications

Purpose – The paper aims to discuss the major and auxiliary types of cycles found in the literature. Design/methodology/approach – The existence of cycles within economy and its sub-sectors has been studied for a number of years. In the wake of the recent cyclical downturn, interest in cycles has increased. To mitigate future risks, scholars and investors seek new insights for a better understanding of the cyclical phenomenon. The paper presents systematic review of the existing copious cyclical literature. It then discusses general characteristics and the key forces that produce these cycles. Findings – The study finds four major and eight auxiliary cycles. It suggests that each cycle has its own distinct empirical periodicity and theoretical underpinnings. The longer the cycles are the greater controversy which surrounds them. Practical implications – Cycles are monumental to a proper understanding of complex property market dynamics. Their existence implies that economies, whilst not deterministic, have a rhythm. Cyclical awareness can therefore advance property market participants. Originality/value – The paper uncovers four major and eight auxiliary types of cycles and argues their importance.

Women wine consumers: information search and retailing implications

2007 ◽  
Vol 19 (4) ◽  
pp. 327-339 ◽  
Author(s):  
Thomas Atkin ◽  
Linda Nowak ◽  
Rosanna Garcia
Keyword(s):  
Information Search ◽  
Financial Risk ◽  
Design Methodology ◽  
Purchase Decisions ◽  
Online Questionnaire ◽  
Content Type ◽  
The Usa ◽  
Purchase Situation ◽  
Communication Methods ◽  
Practical Implications

PurposeThe purpose of this research is to examine gender differences in information search procedures and selection criteria relative to purchase situation and social and financial risk aversion.Design/methodology/approachAn online questionnaire was completed by 497 males and 877 females in the USA. A total of 88 percent of the respondents stated that they drank wine at least once per week. Participants were obtained by sending e‐mails to customer lists provided by wine‐related organizations.FindingsFindings suggest that, if a consumer is unsure about making a wine selection, women are more apt than men to seek information from store personnel, a server, sommelier, or winery personnel. Labels and shelf tags are also significantly more important for women. While winery region is very important to both men and women, women rely on medals and awards more than men.Research limitations/implicationsConsumers who are not necessarily comfortable with using the internet would not have had an opportunity to participate in this study.Practical implicationsThe differences by gender in the importance of and the usage of various information sources could help retailers prioritize their communication methods in US stores. Store personnel, servers, sommeliers, and winery personnel should be well‐prepared to answer questions and make recommendations.Originality/valueWomen buy 80 percent of the wine sold in the USA. This study helps retailers understand their preferences and how to assist them more effectively in their purchase decisions.

Fostering interpersonal trust as a norm in organizations: five key starting points

2015 ◽  
Vol 29 (4) ◽  
pp. 10-13
Author(s):  
Ron Portis
Keyword(s):  
Social Interaction ◽  
Organizational Learning ◽  
Knowledge Sharing ◽  
Design Methodology ◽  
Interpersonal Trust ◽  
Organizational Trust ◽  
Bottom Line ◽  
Content Type ◽  
Key Steps ◽  
Practical Implications

Purpose – The purpose of this paper is to suggest ways that organizations can foster “interpersonal trust”. The author explores how the implementation of specific strategies can be used to “contextually cue” or “signal” the formation of interpersonal trust. Design/methodology/approach – The author reviews two seeming disparate streams of literature: interpersonal trust and the psychology of habit formation. The author shows how the use of “contextual cuing” can be used to create dispositions of trust and how that trust can become an organizational norm, expectation or habit. Findings – The author identifies five key steps that can be used to foster interpersonal trust. Practical implications – Organizational commitment, knowledge sharing and collaboration and organizational learning have all been shown to have significant impacts on the organization’s bottom line. Given the demonstrable importance of “trust” then must ask, “what can organizations do to more effectively foster interpersonal trust?” The author identifies five key steps that can be used to foster interpersonal trust. Social implications – Where there are two or more persons, there is “social interaction”. And, for that interaction to be civil, positive or productive, trust is required. Originality/value – There is an abundance of literature regarding the importance of interpersonal trust, organizational trust and their implications. Yet, there is very little that speaks to the operationalization of the concepts with specific and targeted strategies. The author proposes five possible strategies.

scholarly journals Evernote in the research consultation: a feasibility study

2017 ◽  
Vol 45 (1) ◽  
pp. 67-78 ◽  
Author(s):  
Justin Kani
Keyword(s):  
Sample Size ◽  
Design Methodology ◽  
First Century ◽  
Digital Environment ◽  
Note Taking ◽  
Content Type ◽  
Search Terms ◽  
Interactive Service ◽  
Larger Sample ◽  
Practical Implications

Purpose The purpose of this paper is to examine the feasibility of using the Evernote note-taking application in research consultation as a way to respond to the challenges of doing research in the twenty-first century digital environment. Design/methodology/approach This study examines the results of surveys conducted at the time of research consultation and at the end of the semester when the students had completed the research needed for their assignments. Findings The study found that students are open to having a tool like Evernote used in the research consultation and that the tool can be helpful in organizing the information and search terms discussed in the consultation. Research limitations/implications Due to the size of the sample in the study, further research with a larger sample size should be conducted. Practical implications This paper outlines a promising method of collaborating and documenting resources in the research consultation. Originality/value Using the note-taking application Evernote in research consultations creates a more interactive service.

Basel III: where should we go from here?

2019 ◽  
Vol 11 (4) ◽  
pp. 457-469 ◽  
Author(s):  
Quang Thi Thieu Nguyen
Keyword(s):  
Design Methodology ◽  
Banking System ◽  
Capital Regulation ◽  
Risk Sensitivity ◽  
Effective Mechanism ◽  
Content Type ◽  
Market Participants ◽  
Basel Committee ◽  
Capital Ratios ◽  
Practical Implications

Purpose This paper aims to propose the directions for potential reforms for the capital regulation. The focus is on the simplicity and comparability of the regulation, in addition to its risk sensitivity. Design/methodology/approach The author reviews the development of the Basel standards and identify the existing issues. On this basis, the recommendations are suggested. Findings The paper found that the capital regulation has become so complexed that it undermines its own efficiency in promoting the safety and soundness of the banking system. In addition, the current framework prevents a comparison of capital ratios across countries and over time. This discourages the market participants to supervise the bank’s operations. Therefore, there are still a need for the capital regulation reform. Practical implications By making the regulation simpler while ensuring the credit sensitivity, the market participants can play the most of their role and support the regulators in supervising banks. Originality/value The directions for the revised framework would be useful for the Basel Committee and central bank governors in designing an effective mechanism to supervise and discipline banks.

The SEC’s Municipal Advisor Rule will prompt new practices for market participants

2014 ◽  
Vol 15 (2) ◽  
pp. 10-17
Author(s):  
David Bannard ◽  
Reed Groethe
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Securities Market ◽  
Information Flows ◽  
Content Type ◽  
Market Participants ◽  
Financial Products ◽  
Practical Guidance ◽  
Flow Of Information ◽  
Practical Implications

Purpose – To explain the new Municipal Advisor Rule that will take effect on July 1, 2014, which regulates persons and firms that provide advice to municipal issuers and obligated parties regarding municipal financial products or the issuance of municipal securities or that engage in certain solicitation of municipalities or obligors on behalf of third parties. Design/methodology/approach – Explains who is treated as a Municipal Advisor, the standards applicable to Municipal Advisors, how the Rule may affect municipal securities issuers and obligated persons (collectively referred to as “Borrowers”) as well as other market participants, describes the exceptions and exemption s to the requirements of the Rule, and concludes with suggestions as to how Borrowers and other market participants may promote the flow of information. Findings – The Rule will carry out a requirement of the Dodd-Frank Act, which provides that any party that provides advice to a Borrower regarding municipal financial products or the issuance of municipal securities must register with the SEC and the MSRB as a Municipal Advisor, unless such party qualifies for an exception or exemption under the Rule. Practical Implications: The Rule will change how information flows in the municipal securities market. Some consequences of the Rule may disadvantage Borrowers and other market participants. The Rule may restrict the flow of information provided to Borrowers by participants in the municipal securities marketplace that are not Municipal Advisors. Originality/value – Practical guidance from experienced financial services lawyers.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

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