Why does subjective financial literacy hinder retirement saving? The mediating roles of risk tolerance and risk perception

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linh Thi My Nguyen ◽  
Phong Thanh Nguyen ◽  
Quynh Nguyen Nhu Tran ◽  
Thi Tuong Giang Trinh
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Equation Modeling ◽  
Supporting Evidence ◽  
Negative Effects ◽  
Content Type ◽  
Retirement Saving

PurposeThe purpose of this study is to examine a mechanism through which subjective financial literacy can exert negative effects on the retirement saving intention and behaviors, which has not been well understood in prior research. Particularly, the authors draw on the relevant risk literature to introduce financial risk tolerance and risk perception as important mediators that transfer subjective financial literacy into reduced retirement saving intention which in turn affects the saving behaviors.Design/methodology/approachThe authors test the model with a sample of 347 adults using factor analysis and structural equation modeling.FindingsConsistent with the notions about the negative side of subjective financial literacy, the authors find supporting evidence for the proposed indirect effects of financial literacy on retirement saving intention via risk tolerance and risk perception. In addition, the authors observe that an individual's retirement saving intention strongly predicts their retirement saving behaviors.Originality/valueThe study offers insights into the mechanisms that subjective financial knowledge might also inhibit individual's responsible financial behaviors (e.g. retirement saving).

Understanding perceived risks in mobile payment acceptance

2015 ◽  
Vol 115 (2) ◽  
pp. 253-269 ◽  
Author(s):  
Yongqing Yang ◽  
Yong Liu ◽  
Hongxiu Li ◽  
Benhai Yu
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Financial Risk ◽  
Perceived Value ◽  
Value Theory ◽  
Equation Modeling ◽  
Mobile Payment ◽  
Negative Effects ◽  
Content Type ◽  
Risk Dimensions

Purpose – The purpose of this paper is to examine and quantify how various uncertainties result in different perceived risk dimensions that hinder mobile payment (m-payment) acceptance. Design/methodology/approach – An uncertainty-risk-value framework was proposed based on perceived risk theory, prospect theory, and perceived value theory. Structural equation modeling method was used to test the research model. Findings – Perceived information asymmetry, perceived technology uncertainty, perceived regulatory uncertainty, and perceived service intangibility are confirmed as the main determinants of perceived risk, while perceived performance risk, perceived financial risk, and perceived privacy risk were found to have strong negative effects on perceived value and acceptance intention. Practical implications – The findings may help businesses and policy makers better understand the sources of perceived risk and help support the development of appropriate strategies to mitigate the risk concerns consumers have regarding m-payment. Originality/value – Although the hindering effects of perceived risk regarding m-payment acceptance have been confirmed in previous studies, the sources of perceived risk were rarely investigated. By examining the determinants of perceived risk in m-payment acceptance, this paper offers insights into how consumers perceive risks when adopting new innovations. Additionally, it bridges the gap between the antecedents and consequences of perceived risk.

A qualitative phenomenological exploration of social mood and investors’ risk tolerance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Humaira Asad ◽  
Iqra Toqeer ◽  
Khalid Mahmood
Keyword(s):  
Theoretical Model ◽  
Thematic Analysis ◽  
Financial Literacy ◽  
Financial Risk ◽  
Theoretical Perspective ◽  
Emerging Economy ◽  
Risk Tolerance ◽  
Validity And Reliability ◽  
Content Type ◽  
Depth Analysis

Purpose The authors design a theoretical perspective that explores how different phases of social mood influence financial risk tolerance (FRT) among investors. Risk is involved in almost all financial decision-making. For a better understanding of risk tolerance behavior, the role played by social mood cannot be ignored. This study aims to explore the linkage between social mood and FRT of investors in Pakistan. Design/methodology/approach Using qualitative phenomenology as the guiding framework, 22 interviews were conducted to have a deeper understanding of the lived experiences of investors with at least 10 years of investment experience. Thematic analysis was done to analyze data. Audio-recording, bracketing, triangulation and member checking were done to ensure validity and reliability. Findings A theoretical model is developed using the six themes identified through thematic analysis. This model presents an in-depth analysis of the determinants of social mood, its multiple phases and its impact on risk tolerance behavior. Findings reveal that the level of financial literacy, experience and purpose of investment moderate the effect of social mood on FRT. Practical implications Investors can manage risk and increase their profits by controlling the effects of social mood. They can benefit from the market situation by taking more risk when the market is extremely low. The advisors can frame their advice in the light of the model. Originality/value According to the authors’ knowledge, this is the first study that explores investors’ risk tolerance in response to variations in social mood in the context of an emerging economy. The paper has contributed conceptually and methodologically. It uses phenomenology as the method and develops a theoretical model that describes how different types of investors adjust their risk tolerance in response to changes in their social mood.

Exploring the antecedents of retail banks’ reputation in low-bankarization markets: brand equity, value co-creation and brand experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luís Daniel Martillo Jeremías ◽  
Ana Isabel Polo Peña
Keyword(s):  
Financial Institutions ◽  
Brand Equity ◽  
Low Income ◽  
Financial Literacy ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Equation Modeling ◽  
Brand Experience ◽  
Content Type

PurposeThe present study aims to propose and validate a model to measure certain variables that may contribute to increasing the bankarization rate (uptake of retail banking services) among developing-economy populations characterized by poor financial literacy and low income levels.Design/methodology/approachA quantitative empirical study is carried out in the retail banking sector of a country with low-bankarization rates. Using a self-administered questionnaire distributed online, structural equation modeling is applied to analyze the relationships between value co-creation, brand experience, brand equity and reputation.FindingsThe results show that brand equity is an antecedent of reputation that values co-creation, and brand experience positively influences brand equity and that values co-creation that positively influences brand experience.Social implicationsThe bankarization rate of a developing country is generally taken as an indicator of the socioeconomic wellbeing of its population. Where there is a low-bankarization rate, this renders it more difficult for financial institutions to build their reputation to attract new customers and retain existing ones. Strategies are, therefore, proposed to improve the reputation of financial institutions in such settings and, thus, contribute to increasing the bankarization rate.Originality/valueThe findings of this study provide an original perspective that offers a deeper understanding of the mechanisms that enable banks operating in low-bankarization markets to enhance their reputation through strategies based on customer–company interaction and branding (with the variables of brand equity, brand experience and value co-creation).

Workplace ostracism and deviant behaviour among nurses: a parallel mediation model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Shafique ◽  
Ahmad Qammar ◽  
Masood Nawaz Kalyar ◽  
Bashir Ahmad ◽  
Anila Mushtaq
Keyword(s):  
Structural Equation ◽  
Self Esteem ◽  
Equation Modeling ◽  
Mediation Model ◽  
Negative Effects ◽  
Deviant Behaviour ◽  
Content Type ◽  
Workplace Ostracism ◽  
Moderating Role

Purpose The aim of this study is to examine the influence of workplace ostracism on deviant behaviour and testified the mediating roles of organisational identification, burnout and organisation-based self-esteem (OBSE) by using a parallel mediation model. Then, the moderating role of ingratiation in the interrelation between ostracism, the mediators and deviant behaviour is examined. Design/methodology/approach A survey questionnaire was used to collect data from nurses working in public sector hospitals in Pakistan. Nursing context is appropriate for the study because this occupation involves a greater extent of social interaction among peer nurses, doctors and administration in the provision of health services. A total of 417 nurses provided complete responses, and the study hypotheses were tested using the partial least squares structural equation modeling (PLS-SEM). Findings The study findings show that ostracism is positively related to deviant behaviour of nurses, indicating that workplace ostracism is an important predictor of deviant behaviour. Ostracised nurses experienced higher job burnouts and low OBSE as well as organisational identification. Results also show that ostracism promotes deviant behaviour by reducing OBSE and organisational identification. Moreover, results provide evidence that high ingratiation overcomes the detrimental effects of ostracism on both deviant behaviour and mediators. Originality/value The present study integrates the literature on ostracism and its attitudinal and behavioural outcomes and submits that ostracism negatively affects the attitudes of victims which in turn results in negative behavioural outcomes (i.e. deviant behaviour). This study also suggests ingratiation as a tactic to control the negative effects of ostracism.

On lemons and lemonade: the effect of positive and negative career shocks on thriving

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juliana Mansur ◽  
Bruno Felix
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Career Adaptability ◽  
Negative Events ◽  
Negative Effects ◽  
Content Type ◽  
Work Related ◽  
Positive Effects ◽  
Moderated Mediation Model ◽  
Negative Feelings

PurposeThe purpose of this paper is to investigate how positive affectivity (PA) moderates the indirect effects of positive and negative career shocks – unplanned and often unexpected external events whose effects cannot be anticipated or countered – on thriving via career adaptability.Design/methodology/approachThe authors empirically tested the moderated mediation model with a structural equation modeling (SEM) approach. The study was performed with a valid sample of professionals who had experienced work-related career shocks.FindingsThe results indicated that career adaptability mediated the effects of positive and negative career shocks on thriving. In addition, the slope of the relationship between negative shocks and adaptability became positive for high levels of PA. The authors also found an indirect effect of negative career shocks on thriving at all levels of PA and importantly, when PA was high, the effects of negative shocks on thriving became positive.Practical implicationsIndividuals may use emotional reappraisal strategies to counter negative feelings that accompany negative events to mitigate the negative effects of such events. By strengthening their positivity, individuals facilitate their own perception of shocks, thereby minimizing the possibility of a decrease in adaptability resources.Originality/valueThis paper advances understanding of those mechanisms through which negative shocks lead to positive effects that can help individuals improve their career adaptability and thrive.

Reduction of tension effects on partner evaluation

2018 ◽  
Vol 36 (4) ◽  
pp. 425-439
Author(s):  
Ossi Pesämaa ◽  
Peter Dahlin ◽  
Christina Öberg
Keyword(s):  
Structural Equation ◽  
Negative Impact ◽  
Equation Modeling ◽  
Negative Effects ◽  
Data Set ◽  
Content Type ◽  
Business Partners ◽  
Positive Side ◽  
Tension Management ◽  
Business To Business

Purpose The purpose of this paper is to examine how tension management as a means of achieving compromise and overcoming minor conflicts reduces the effects of the opportunism and bargaining costs of relationships on the evaluation of business partners. The paper proposes and tests a theoretical model with a full-information approach using structural equation modeling. Design/methodology/approach The data set was based on 312 observations from a unique survey based on a business-to-business relationship sample in Sweden. The measurements reflect the effects of partner opportunism, bargaining costs, and tension management on partner evaluations. Findings The findings corroborate that partner opportunism and bargaining costs have a negative impact on partner evaluation. In addition, the model shows that tension management weakens the negative effects of opportunism and bargaining costs on the evaluation. Originality/value This study offers evidence on how negative effects are reduced through intervening constructs. With most studies focusing on the positive side of relationships, this paper makes an important contribution to the literature through not only describing negative effects, but also how these can be decreased.

Public value of online financial transparency

2019 ◽  
Vol 32 (5) ◽  
pp. 467-488 ◽  
Author(s):  
Gabriel Puron-Cid ◽  
Christopher G. Reddick ◽  
Sukumar Ganapati
Keyword(s):  
Structural Equation ◽  
Contextual Factors ◽  
Equation Modeling ◽  
Financial Sustainability ◽  
Public Official ◽  
Negative Effects ◽  
Public Value ◽  
Content Type ◽  
The Usa ◽  
Financial Transparency

Purpose The purpose of this paper is to apply Moore’s public value model into the context of e-government research by examining online financial transparency as both an organizational goal and as a driving force for financial sustainability and public officials’ corruption. The empirical context comprises the state governments in the USA. Design/methodology/approach Structural equation modeling is used to examine the relationship between specific contextual factors of the authorizing environment, financial sustainability, public official corruption and online budget transparency. Findings The results show that contextual factors like population explain online financial transparency, while financial sustainability and corruption had moderating and negative effects. Practical implications Governments that struggle with issues of financial sustainability and corruption will rely more on online financial transparency. Transparency increases detection of public corruption. Originality/value The effects of financial transparency and financial sustainability on corruption have been studied separately. This study fills the gap of understanding the effects of both on corruption as one phenomenon.

Market discipline in the behavioral finance perspective: a case of Sharia mutual funds in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umi Widyastuti ◽  
Erie Febrian ◽  
Sutisna Sutisna ◽  
Tettet Fitrijanti
Keyword(s):  
Mutual Funds ◽  
Behavioral Finance ◽  
Financial Literacy ◽  
Financial Risk ◽  
Market Discipline ◽  
Risk Tolerance ◽  
Exogenous Variables ◽  
Content Type ◽  
Withdrawal Behavior ◽  
Financial Risk Tolerance

Purpose This study aims to determine antecedents of market discipline. A model was constructed by extending the theory of planned behavior (TPB) to explore the cognitive, psychological and social factors that influence the market discipline in the form of withdrawal behavior. Design/methodology/approach This study applied a quantitative approach by surveying 181 Indonesian retail investors in Sharia mutual funds, which were represented by civil servants. The samples were collected using the purposive sampling technique. This study used the partial least square–structural equation model to analyze the data. Findings The results revealed that the Islamic financial literacy, the attitudes toward withdrawal, the subjective norms and the perceived behavioral control had a positive significant effect on the withdrawal intention, whereas financial risk tolerance had an insignificant impact. Then, all the exogenous variables and intention to withdraw had a significant contribution in explaining market discipline. Contrary to the proposed hypothesis, the attitude toward withdrawal had a negative impact on market discipline. The structural model indicated that the TPB could be extended by adding some exogenous variables (i.e. Islamic financial literacy and financial risk tolerance) in determining the intention to withdraw and withdrawal behavior, which indicated the market discipline in Sharia mutual funds. Research limitations/implications This study was limited to individual investors who work as civil servants. This study did not accommodate different demographic factors such as age and gender, which influence fund withdrawal behavior. Practical implications The government must focus on the inclusion of market discipline in Sharia mutual funds’ regulation to encourage the risk management disclosure, specifically that related to Sharia compliance. Originality/value Previous studies applied a traditional finance theory to predict market discipline, but this study contributes to filling the theoretical gap by explaining the market discipline from a behavioral finance perspective that was found in Sharia mutual funds.

scholarly journals E-mail load, workload stress and desired e-mail load: a cybernetic approach

2019 ◽  
Vol 32 (2) ◽  
pp. 430-452 ◽  
Author(s):  
Jean-Francois Stich ◽  
Monideepa Tarafdar ◽  
Patrick Stacey ◽  
Cary L. Cooper
Keyword(s):  
Structural Equation ◽  
Workplace Stress ◽  
Equation Modeling ◽  
Full Time ◽  
Negative Effects ◽  
Content Type ◽  
The Usa ◽  
The Relationship ◽  
E Mail ◽  
Cybernetic Theory

PurposeUsing e-mail is a time-consuming activity that can increase workload stress. The purpose of this paper is to investigate the relationship between the individual’s e-mail load, workload stress and desired e-mail load, drawing from the cybernetic theory of stress.Design/methodology/approachBased on prior theory, the authors first hypothesized relationships among e-mail load, workplace stress and desired e-mail load. The authors then tested these relationships on a sample of 504 full-time workers in the USA, using survey data and covariance-based structural equation modeling techniques.FindingsThe authors find that higher e-mail load is associated with higher workload stress; higher workload stress is associated with lower desired e-mail load; lower desired e-mail load is associated with lower e-mail load; and higher workload stress is associated with higher psychological strain, higher negative emotions and lower organizational commitment.Originality/valueThe study provides a novel understanding of workload stress due to e-mail load, through the lens of cybernetic theory. It contributes to the e-mail overload and technostress literatures by conceptualizing desired e-mail load as a potential outcome of workplace stress and as a regulator for e-mail load. For practitioners, the study highlights the importance of managing employees’ e-mail load to prevent the negative effects of workplace stress and associated strains.

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