Search results

1 – 10 of 75
Article
Publication date: 14 October 2021

Ahmad Arslan, Bonnie G. Buchanan, Samppa Kamara and Nasib Al Nabulsi

Fintech is having a profound impact in Sub-Saharan Africa (SSA) because it offers more financial inclusion. In this paper, the authors examine the interrelationship of…

Abstract

Purpose

Fintech is having a profound impact in Sub-Saharan Africa (SSA) because it offers more financial inclusion. In this paper, the authors examine the interrelationship of Fintech, base of the pyramid (BOP) entrepreneurs and social value creation, particularly in the SSA context.

Design/methodology/approach

The current paper uses a qualitative research design with open-ended, in-depth interviews as the main data sources. The authors interviewed respondents from the Sierra Leone Fintech Association and four BOP entrepreneurs operating in different sectors.

Findings

The authors find that Fintech services, specifically mobile money, play a significant role in reducing uncertainty surrounding business operations. FinTech also offers growth possibilities for BOP entrepreneurs and creates social value by providing transactional security, convenience and reducing physical cash robberies. At the same time, Fintech contributes to social value by enhancing BOP entrepreneurs as well as consumers' skills development.

Research limitations/implications

This study highlights the importance of context-specific theorization when analyzing the interlinkage between BOP entrepreneurship, social value creation and Fintech. For example, the possibility of safety from a street robbery may not appear to be part of social value creation by a technological development like Fintech. However, in a country like Sierra Leone, which has experienced both a civil war and Ebola outbreak, insecurity has been one of the biggest concerns expressed by BOP inhabitants. Hence, scholars need to incorporate contextual elements of risk, uncertainty and volatility while theorizing on Fintech's application in BOP contexts.

Practical implications

A key managerial implication relates to micro-firm entrepreneurs and information specific benefits. Fintech offers entrepreneurs the possibility to be in regular contact with customers and evaluate their purchasing patterns as well as emergent needs. Fintech offers BOP entrepreneurs a possibility to further develop their technological skills as learning to use such apps can be used as a basis for further skills development. From a policy perspective, our study highlights the importance of regulating Fintech charges so that the affordability is increased, which is expected to result in significantly more BOP entrepreneurs using these services.

Social implications

The authors find that at the same time, Fintech contributes to social value by enhancing skills development of BOP consumers who interact with case firms.

Originality/value

This paper is one of the first studies that specifically focuses on BOP entrepreneurship and social value creation by Fintech services in an SSA context. It is also one of the few studies that incorporates views from both entrepreneurs and the country's Fintech association, rather than focusing solely on either entrepreneurs or Fintech firms. Finally, there is a specific focus on BOP entrepreneurs engaging in micro-entrepreneurship.

Details

Journal of Small Business and Enterprise Development, vol. 29 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 4 July 2022

Bonnie Buchanan, Minna Martikainen and Jussi Nikkinen

In many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation and research and development. In this paper…

Abstract

Purpose

In many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation and research and development. In this paper, the authors examine the impact of family ownership and owner involvement on the financial performance of unlisted Finnish SMEs.

Design/methodology/approach

This is an empirical paper using a random sample of 1,137 non-listed Finnish SMEs. Through regression analyses and robustness tests, the authors examine the effects of family management, family and employee ownership and involvement.

Findings

Using profitability measures, the authors find family-owned and controlled SMEs perform significantly better than non-family firms. The number of family members actively involved in daily business operations bears a significant negative relation to firm performance. In contrast, non-family firms in which owners are actively involved, provide comparable returns to family firms, suggesting that in non-family firms active involvement contributes to performance. The authors find that employee ownership in SMEs does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.

Research limitations/implications

SME employee ownership does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.

Practical implications

In the case of Finland, family ownership is an effective organisational structure. As the depth of the COVID pandemic remains uncertain, firms with committed ownership are key to the economic recovery.

Originality/value

The authors approach the family ownership and involvement issue from a different angle. Unlike earlier studies, the authors examine the impact of both family ownership and involvement on the financial performance of privately owned SMEs. This paper helps shed light on the role of family ownership and involvement as a possible explanatory factor of overall economic performance.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Content available
Article
Publication date: 28 January 2014

Bonnie G. Buchanan

366

Abstract

Details

The Journal of Risk Finance, vol. 15 no. 1
Type: Research Article
ISSN: 1526-5943

Keywords

Content available
Book part
Publication date: 29 December 2016

Abstract

Details

Risk Management in Emerging Markets
Type: Book
ISBN: 978-1-78635-451-8

Content available
Article
Publication date: 18 May 2015

Bonnie G Buchanan

171

Abstract

Details

The Journal of Risk Finance, vol. 16 no. 3
Type: Research Article
ISSN: 1526-5943

Book part
Publication date: 29 August 2017

Bonnie G. Buchanan and Craig Anthony Zabala

In 2012, the New York Department of Financial Services threatened to revoke Standard Chartered Bank’s U.S. license for alleged money laundering violations involving Iran…

Abstract

In 2012, the New York Department of Financial Services threatened to revoke Standard Chartered Bank’s U.S. license for alleged money laundering violations involving Iran. The bank’s settlement with US regulators and law enforcement cost the bank approximately $1.099 billion. In 2013, as a signal that no bank was too big to jail, the Holding Individuals Accountable and Deterring Money Laundering Act was introduced into the U.S. Congress. We focus on a clinical examination of the Standard Chartered money laundering case and examine the role of the US regulators and law enforcement in the settlement.

Details

The Handbook of Business and Corruption
Type: Book
ISBN: 978-1-78635-445-7

Keywords

Article
Publication date: 1 July 2007

Tom Arnold and Bonnie Buchanan

This paper develops visual aids for the understanding of two asset portfolio mathematics. Specifically, visual aids are utilized in teaching portfolio variance and…

Abstract

This paper develops visual aids for the understanding of two asset portfolio mathematics. Specifically, visual aids are utilized in teaching portfolio variance and correlation coefficient concepts. The presentation is simple, yet powerful, and is useful for an audience with varying levels of statistical sophistication. Consequently, the visual aids can replace or complement standard presentations of basic portfolio theory.

Details

Accounting Research Journal, vol. 20 no. 1
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 2 September 2014

Peter Brous, Bonnie G. Buchanan and Tony Orcutt

The “raise your rate” (RYR) certificate of deposit (CD) allows investors to raise the rate on their CD to the current market rate over the life of the CD. The purpose of…

Abstract

Purpose

The “raise your rate” (RYR) certificate of deposit (CD) allows investors to raise the rate on their CD to the current market rate over the life of the CD. The purpose of this paper is to present a binomial option pricing model to value this option to raise the rate. The model also demonstrates conditions under which the investor should choose to exercise their option and raise their rate prior to maturity. Understanding the value of this option is useful to both banks setting rates, and investors comparing alternative investment opportunities. The results of this model suggest that, for CDs with short maturities and low yields, the value of the option is relatively small, roughly one to four basis points, however, for CDs with longer maturities and higher yields the value of the option can be as much as 50-80 basis points.

Design/methodology/approach

This paper demonstrates how to value raise your rate CDs by applying a binomial option pricing model and provides the value of this option over a range of current CD yields and over a range of CD maturities.

Findings

When CD rates are low and maturities are short the value of the option is small (one to four basis points), however, when CD rates are high with longer maturities, the value of this option can be significant (50-80 basis points).

Research limitations/implications

The research implication is that the rate discount that the institution offers and the investor accepts should reflect the value of the option to raise the rate. The benefit to the institution and the cost to the investor reflected in the rate discount can be determined by the procedures presented in this paper regarding the valuation of the option to raise the rate.

Practical implications

The purpose of this paper is to demonstrate how to apply a binomial option pricing model to value the option that is attached to a raise your rate CD. Knowing the value of this option should be useful both to banks, in determining the discounted rate they should offer on these CDs, and to investors choosing among alternative investment opportunities. An additional benefit of applying a binomial model to value the option is that the model can be used by investors to determine the optimal point at which to exercise their option and lock in the current higher rate.

Social implications

Given the recent financial turmoil, pressure has been placed on banks to increase their liquidity and deposit base. CDs are crucial to this. Understanding the value of the RYR option is useful to both banks setting rates and investors comparing alternative investment opportunities.

Originality/value

Given the current economic climate, deciding which strategic investment options to pursue is of paramount importance. To the best of the knowledge this is the first study that applies binomial option pricing to certificates of deposit to help investors make these decisions.

Details

Managerial Finance, vol. 40 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 29 December 2016

Denis Davydov and Steve Swidler

The analysis considers the use of Benford’s Law as a forensic tool to audit the quality of accounting information reported by banks in emerging market countries. History…

Abstract

The analysis considers the use of Benford’s Law as a forensic tool to audit the quality of accounting information reported by banks in emerging market countries. History suggests that lack of financial standards and reporting transparency can ultimately lead to bank failures in these nations. We use the Benford Distribution to analyze the first digits of bank financial statement entries and show the value of accounting standards in producing information of high quality. Benford’s Law maintains that the first digits of an unconstrained, large array of numbers might follow a lognormal pattern. It can be applied, for example, to financial statements issued by banks to infer their data integrity. To illustrate the importance of accounting standards and reporting transparency, the analysis utilizes Russian bank statement data from 2001 to 2011. The main finding is that accounting standards matter. After the Russian Central Bank required all banks to adopt International Financial Reporting Standards in 2004, the financial statement data largely conformed to Benford’s Law. While the Benford distribution can be used to infer the overall quality of bank financial statement data in emerging market countries, it is less effective in spotting troubled banks that commit reporting fraud. One possible reason is that the Benford distribution is scale invariant, and violation of Benford’s Law is a sufficient but not necessary condition for accounting irregularities.

Book part
Publication date: 29 December 2016

Roland Füss, Dieter G. Kaiser and Felix Schindler

This chapter aims to determine whether diversification benefits accrue from adding emerging market hedge funds (EMHFs) to an emerging market bond/equity portfolio, and…

Abstract

This chapter aims to determine whether diversification benefits accrue from adding emerging market hedge funds (EMHFs) to an emerging market bond/equity portfolio, and subsequently whether the type of exposure hedge funds provide is justified by their fees. We use multivariate cointegration analysis to show that the advantages of adding hedge funds to balanced portfolios are limited for the three regions of Asia, Eastern Europe, and Latin America, as well as for the entire global emerging market universe. In summary, we find that emerging market hedge funds are generally redundant for diversifying long-only emerging market investment portfolios with long-term investment horizons. This result also holds when we extend our sample by the global financial crisis in 2008 and 2009 and allow for structural breaks according to the Gregory-Hansen (1996) test. Hence, even during the global financial crisis in 2008 and 2009, when risk diversification was most needed, long-term comovements between hedge funds and traditional assets is, with the exception of the Eastern European region, not disrupted. Because EMHF returns are heavily influenced by the emerging market equity and bond markets, we conclude that the “alpha fees” charged by EMHFs may not always be appropriate for the three main regions under consideration. This also holds, however, to a lesser extent, for a global diversification among hedge funds and traditional assets in emerging markets.

1 – 10 of 75