scholarly journals Overconfidence, Financial Advice Seeking and Household Portfolio Under-Diversification

2021 ◽  
Vol 14 (11) ◽  
pp. 553
Author(s):  
Stijn P. M. Broekema ◽  
Marc M. Kramer
Keyword(s):  
Financial Literacy ◽  
Efficient Frontier ◽  
Household Survey ◽  
Policy Makers ◽  
Financial Advice ◽  
Household Portfolio ◽  
Financial Decision ◽  
The Difference ◽  
The Relationship

This paper examines the relationship between overconfidence and losses from under-diversification among Dutch investors. We find that a lack of proper portfolio diversification is positively associated with overconfidence. Part of this relationship is mediated through the lower propensity of overconfident individuals to hire a professional financial adviser. We use data from the 2005 wave of the DNB Dutch Household Survey that provides us with detailed portfolio data of 257 investors. We proxy for overconfidence by exploiting the difference between measured and self-assessed financial literacy, and use this proxy in a regression model (with and without mediation) to explain the difference between the actual households return and the return that could have been obtained by selecting a portfolio on the efficient frontier with equivalent risk. Our results contribute to the current discussion among policy makers on the role of financial advice and self-perceptions in household financial decision-making.

scholarly journals Financial Literacy and Financial Satisfaction: A Moderated Mediation Analysis of Self-Esteem and Financial Behavior

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Financial Literacy ◽  
Self Esteem ◽  
Mediation Effect ◽  
Financial Behavior ◽  
Financial Satisfaction ◽  
Policy Makers ◽  
Domain Specific ◽  
The Relationship ◽  
Self Administered Questionnaire

Recent studies suggest that domain-specific behavior contributes to domain-specific satisfaction. It is believed that finance-specific literacy brings positive financial behavior and healthy financial behavior further contributes to financial satisfaction. In general, this study has been undertaken to examine the effect of financial literacy on financial behavior and financial satisfaction. Data have been collected from 326 participants by using a self-administered questionnaire. Linear regression has been applied to test the hypotheses, while Preacher and Hayes method has been used to estimate the moderation and mediation effect. There is less knowledge about the mechanism that may clarify the link between financial literacy and level of financial satisfaction. This paper is the first of its kind in Pakistan to investigate the relationship between financial literacy and individual’s financial satisfaction with intervening role of financial behavior and moderating role of self-esteem. Study findings reveal that financial literacy is significantly related to both financial behavior and financial satisfaction. Further it is also observed that financial behavior plays intervening role in the relationship between financial literacy and financial satisfaction. Findings also reveal that self-esteem does not affect the link between financial behavior of individuals and financial literacy. This study provides several significant implications for individuals, organizations, academicians and policy makers, in the sense that increasing financial literacy is essential to form positive and healthy financial behavior which ultimately increases individual’s financial satisfaction with financial situation.

scholarly journals The role of financial literacy and advice in financial decision making

2019 ◽  
Vol 20 (1) ◽  
pp. 388-413
Author(s):  
M Reyers
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Financial Advice ◽  
South Africans ◽  
Financial Decision Making ◽  
Financial Decision ◽  
Low Levels ◽  
Key Questions

Financial decision making is complex and individuals either need to have the financial knowledge to make the correct decisions, or they need to ask for advice from experts. However, there are two key questions pertaining to financial advice. Firstly, do financially unsophisticated individuals know that they need advice, and do they therefore ask for assistance? Secondly, if they do ask for advice, are financially unsophisticated individuals able to assess the quality of the advice received? A growing body of research is focused on determining to what extent financial advice can act as a substitute for low levels of financial literacy. To date, studies have found conflicting results. This study used data from a national survey of South Africans to determine whether advice could substitute for low levels of financial sophistication. Additionally, the quality of advice in preretirement cash-out decisions was assessed using survey data collected at a university. The results indicate that professional financial advice complements financial literacy, while advice from other sources could substitute for low levels of financial sophistication. Furthermore, the study found that with respect to pre-retirement cash-out decisions, financially unsophisticated individuals followed advice from human resources departments or fund administrators and received quality advice.

Socioeconomic Moderators of the Relationship Between Different Quitting Motives and Smoking Cessation in Hong Kong Men

2017 ◽  
Vol 29 (6) ◽  
pp. 516-525 ◽  
Author(s):  
Francisco T. T. Lai ◽  
Wikki W. K. Wong ◽  
Joyce L. Y. Kwan
Keyword(s):  
Hong Kong ◽  
Binary Logistic Regression ◽  
Household Survey ◽  
Socioeconomic Background ◽  
Socioeconomic Indicators ◽  
Policy Makers ◽  
One Year ◽  
Log Linear ◽  
The Relationship

To facilitate effective tobacco control, it is important to identify the socioeconomic strata in which different quitting motives are more strongly associated with cessation. This study aims to examine such a moderating role of socioeconomic background. A total of 2022 past or current daily smoking men from the Hong Kong Thematic Household Survey 2010 who had attempted for cessation were analyzed. Binary socioeconomic indicators, quitting motives, and 1-year abstinence were entered in an exploratory backward-stepwise log-linear model, followed by a binary logistic regression to estimate the probability of one-year abstinence in each socioeconomic stratum. Results suggest that the association between cessation and health motives is stronger in less educated men ( P = .004) and nonmarried men ( P = .003). The estimated probability of cessation ranges from 0.02 (95% CI = 0.00-0.06) to 0.96 (95% CI = 0.89-1.00). Accordingly, policy makers should educate less-educated men and nonmarried men about the adverse health impacts of tobacco use.

POLICY CHANGE – THE ROLE OF IDEAS AND POLICY ENTREPRENEURS

2018 ◽  
pp. 63-72
Author(s):  
Arwanto Arwanto ◽  
Wike Anggraini
Keyword(s):  
Policy Change ◽  
Significant Role ◽  
Policy Process ◽  
Policy Entrepreneurs ◽  
Multiple Streams ◽  
Policy Makers ◽  
Problem Framing ◽  
Exogenous Factors ◽  
The Relationship

ABSTRACT Understanding policy process involves many distinctive approaches. The most common are institutional, groups or networks, exogenous factors, rational actors, and idea-based approach. This paper discussed the idea-based approach to explain policy process, in this case policy change. It aims to analyse how ideas could assist people to understand policy change. What role do they play and why are they considered as fundamental element? It considers that ideas are belong to every policy actor, whether it is individual or institution. In order to answer these questions, this paper adopts Kingdon’s multi streams approach to analyse academic literatures. Through this approach, the relationship between ideas and policy change can be seen clearer. Ideas only can affect in policy change if it is agreed and accepted by policy makers. Therefore the receptivity of ideas plays significant role and it emerges policy entrepreneurs. They promote ideas (through problem framing, timing, and narrative construction) and manipulate in order to ensure the receptivity of ideas. Although policy entrepreneurs play significant role, political aspects remains the most important element in the policy process. Keywords: policy change, ideas, idea-based approach, Kingdon’s multiple streams, policy entrepreneurs.

An Analytical Approach to Cruise Tourism As an Option For Development: a Case Study of the Sultanate of Oman

2020 ◽  
Vol 15 (2) ◽  
pp. 95-109
Author(s):  
Heba Aziz ◽  
Osman El-Said ◽  
Marike Bontenbal
Keyword(s):  
Capital City ◽  
Sultanate Of Oman ◽  
Policy Makers ◽  
Cruise Tourism ◽  
The Impact ◽  
The Relationship ◽  
Average Expenditure ◽  
Return Intention

The objective of this study was to measure the level of cruise tourists' satisfaction as well as the relationship between satisfaction, recommendation, return intention, and expenditure. Also, the impact of factors such as nationality, length of the visit, and age on the level of expenditure was measured. An empirical approach for data collection was followed and a total of 152 questionnaires were collected from cruise tourists visiting the capital city of Oman, Muscat, as cruise liners anchor at Sultan Qaboos Port. Results of the regression analysis supported the existence of a causal relationship between satisfaction with destination attributes, overall satisfaction, recommendation, return intention, and expenditure. It was found that the average expenditure varies according to age and length of the visit. Recommendations for policy makers were suggested on how to increase the role of cruise tourism in strengthening the economy.

Investigating the Personality Variable (LOC) & Impression Management Relationship: Exploring the Role of Demographic Variables & Sectoral Difference of Managers

2016 ◽  
Vol 7 (1) ◽  
Author(s):  
Poornima Madan ◽  
Shalini Srivastava
Keyword(s):  
Locus Of Control ◽  
Impression Management ◽  
Demographic Variables ◽  
Personality Variable ◽  
Public Sector Organizations ◽  
Private And Public ◽  
The Difference ◽  
The Relationship ◽  
Test Correlation

The purpose of the study is to investigate the relationship between locus of control and impression management. The study also examines the variation in locus of control dimensions namely, internality, externality (others) and externality (chance). It further investigates the difference on perception of demographic variables (gender and marital status) and sectoral difference on impression management. The study was administered on 125 Managers who were representatives of different private and public sector organizations in Delhi/NCR. Variables in the study were assessed using validated instruments. Descriptive Statistics, t-test, Correlation and Regression were used for data analysis. Organizations will be better prepared to dig into the arena of one of the personality variable, i.e. locus of control and its relationship with impression management. The current research is imperative in providing insights into role of personality variable (locus of control) and impression management, which will be one of the pioneer researches available till date. Moreover, the research will highlight the significance of locus of control dimensions and impression management.

Financial access and economic development: the moderating role of financial consumer protection

2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor
Keyword(s):  
Economic Development ◽  
World Bank ◽  
Financial Literacy ◽  
Compliance Monitoring ◽  
Financial Access ◽  
Policy Makers ◽  
Content Type ◽  
The World Bank ◽  
Moderating Role

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).

scholarly journals What Difference Does Posthumanism Make?

2021 ◽  
pp. 1-7
Author(s):  
Rachel J. Crellin ◽  
Oliver J.T. Harris
Keyword(s):  
Productive Force ◽  
The World ◽  
The Status ◽  
The Difference ◽  
The Relationship

In this paper we argue that to understand the difference Posthumanism makes to the relationship between archaeology, agency and ontology, several misconceptions need to be corrected. First, we emphasize that Posthumanism is multiple, with different elements, meaning any critique needs to be carefully targeted. The approach we advocate is a specifically Deleuzian and explicitly feminist approach to Posthumanism. Second, we examine the status of agency within Posthumanism and suggest that we may be better off thinking about affect. Third, we explore how the approach we advocate treats difference in new ways, not as a question of lack, or as difference ‘from’, but rather as a productive force in the world. Finally, we explore how Posthumanism allows us to re-position the role of the human in archaeology,

scholarly journals The role of L/W in the solar radiation for Saharian cities

2019 ◽  
Vol 91 ◽  
pp. 05006
Author(s):  
Rami Qaoud ◽  
Alkama Djamal
Keyword(s):  
Solar Radiation ◽  
Solar Energy ◽  
Energy Levels ◽  
Direct Solar Radiation ◽  
Test Field ◽  
Natural Lighting ◽  
The Difference ◽  
The Impact ◽  
The Relationship

The urban fabric of the desert cities is based on the principle of reducing the impact of urban canyons on direct solar radiation. Here comes this research, which is based on a comparative study of the periods of direct solarisation and values of the solar energy of urban canyons via two urban fabrics that have different building densities, where the ratio between L/W is different. In order to obtain the real values of the solar energy (thermal, lighting), the test field was examined every two hours, each three consecutive days. The measurement stations are positioned by the three types of the relationship between L/W, (L≥2w, L=w, L≤0.5w). According to the results, we noticed and recorded the difference in the periods of direct solarization between the types of urban engineering canyons, reaching 6 hours a day, the difference in thermal values of air, reaching 4 °C, and the difference in periods of direct natural lighting, reaching 6 hours. It should be noted that the role of the relationship between L/W is to protect the urban canyons by reducing the impact of direct solar radiation on urban canyons, providing longer hours of shading, and reducing solar energy levels (thermal, lighting) at the urban canyons. This research is classified under the research axis (the studies of external spaces in the urban environment according to the bioclimatic approach and geographic approach). But this research aims to focus on the tracking and studying the distribution of the solar radiation - thermal radiation and lighting radiation - in different types of street canyons by comparing the study of the direct solarization periods of each type and the quantity of solar energy collected during the solarization periods.

IFRS Adoption and Audit Delay: The Role of Shareholders in the Audit Committee

2018 ◽  
Vol 8 (1) ◽  
pp. 325
Author(s):  
Ishaq Ahmed Mohammed ◽  
Ayoib Che-Ahmad ◽  
Mazrah Malek
Keyword(s):  
Audit Committee ◽  
Unobserved Heterogeneity ◽  
Value Relevance ◽  
Stock Exchange ◽  
Delay Model ◽  
Corporate Reporting ◽  
Ifrs Adoption ◽  
The Difference ◽  
The Relationship

This study examined the relationship between audit delay after IFRS adoption and the role of shareholders in the audit committee as well as testing the difference of pre-and post IFRS adoption periods. A sample of 101 firms with 505 firm-year observations over five year period for firms listed on the Nigeria Stock Exchange was employed for the study, utilizing data from the annual report and accounts of the sample firms. Generalized Methods of Moment (GMM) estimation was used to check the effects of unobserved heterogeneity in audit delay model, while the test of difference in R2 value for pre-and post-adoption periods was determined using Cramer’s Z-statistics. Findings indicate that audit report lag is faster with shareholders in the audit committee. The study proved that brand named auditors such as Big4 can significantly perform faster audit task than non-Big4 firms in IFRS regime. The importance of the study’s findings demonstrates statistical inference on value relevance increase based on the unique IFRS adoption in Nigeria. Thus, regulators should consider increasing the tenure of shareholders in the audit committee to enable them to become more familiar with the corporate reporting under IFRS regime.

Sign in / Sign up

Export Citation Format

Share Document