Search results
1 – 10 of over 108000
The purpose of this study was to examine family structure differences in debt types and burdens of American families.
Abstract
Purpose
The purpose of this study was to examine family structure differences in debt types and burdens of American families.
Design/methodology/approach
Data was from the 2016 Survey of Consumer Finances. Eight types of family structures, five specific debts, and two debt burden indicators are examined with multivariate logistic regressions.
Findings
After controlling for several socioeconomic variables, multivariate logistic regression results show that married with children families are more likely than five other family types to have any debt. In terms of specific debt, married with children families are more likely than six other types of families to have mortgages, four other types to have credit card loans, five other types to have to vehicle loans, three other types to have education loans, and one other type to have purchase loans. Married with children families are more likely than three other types of families (childless married couples, single males, and single females) to be late in debt payment for 60 or more days.
Research limitations/implications
The data is limited to one-year cross-sectional data. To gain more insights on this topic, panel data could be used.
Practical implications
The findings can be used for financial service professionals to identify loan demand and risk associated with various family structures and develop effective marketing strategies to serve these clients.
Social implications
The findings are informative for public policymakers to develop family friendly economic policies and for consumer educators who help consumers make effective financial decisions when borrowing various types of loans.
Originality/value
First, this study uses an innovative definition of family structure that counts several nontraditional family structures. Second, this study examines family structure differences in holdings of five specific debts together.
Details
Keywords
In recent decades, research on consumer debt and well-being is emerging. However, research on the potential effect of debt portfolios on family financial well-being is limited…
Abstract
Purpose
In recent decades, research on consumer debt and well-being is emerging. However, research on the potential effect of debt portfolios on family financial well-being is limited. The purpose of this study is to fill this research gap by examining the potential effect of debt portfolios on family financial well-being, measured by three indicators of progressive financial burdens. These indicators include debt pressure (debt payment to income ratio >40%), debt delinquency (60+ days late for debt payments) and insolvency (total liability > total asset). Debt portfolios refer to various combinations of mortgage, credit card, vehicle, education and other loans.
Design/methodology/approach
With data from the 2019 Survey of Consumer Finances in the USA, multivariate logistic regressions are used to identify specific debt types, consumer backgrounds and financial capability factors that are significantly associated with debt burden indicators. The findings are used to create a table demonstrating warning debt portfolios that may lead to undesirable financial outcomes.
Findings
Holdings of different types of debts are associated with different financial burdens. Specifically, holdings of three types of debts (mortgage, vehicle and other debts) tend to increase debt pressure; holdings of two types of debts (education and other debts) tend to increase debt delinquency; and holdings of four types of debts (mortgage, credit card, education and other debts) tend to increase insolvency. These results are used to construct warning debt portfolios that show greater chances of undesirable financial outcomes. Among them, the top warning portfolio for debt pressure is the combined holding of mortgage-vehicle-other debts; for debt delinquency is the holding of education-other debts; and for insolvency is the holding of mortgage-credit card-education-other debts.
Research limitations/implications
This study is limited by using only cross-sectional survey data to examine associations between debt portfolios and financial burdens. To examine the causality of debt portfolios on financial burdens, appropriate panel data are necessary, which is a direction for future research. In addition, this study used data from only one developed country. In future research, data from more countries, including both developed and developing countries, should be analyzed to verify if similar relationships exist among families in other countries.
Practical implications
Results of this study have implications for practitioners in banking and other financial institutions. The study presents a comprehensive list of debt portfolios in the order from high risk to low risk in terms of financial burdens. Banking and other financial service professionals can use the information to help their clients make informed borrowing decisions, predict their debt burdens and offer early preventions based on their clients' debt portfolios. Marketing strategists can use the information for effective segmentation and promotion purposes.
Originality/value
This study utilizes a new concept, debt portfolios and examines its associations with family financial burdens. Financial burdens include three indicators that are seldom used together in previous research. These indicators conceptually indicate various severity levels of debt burdens. This study also presents a conceptual discussion on the association between debt portfolios and financial burdens and provides a better understanding of consumer debt behavior and its consequences. The warning debt portfolios constructed based on the findings have direct managerial implications for banking and other financial service professionals.
Details
Keywords
James Davies, Michael Hoy and Tracy Lynch
The distributional impacts of replacing an income tax that has graduated marginal rates by a flat tax are complex. Typically the flat tax rate will be less than the top marginal…
Abstract
The distributional impacts of replacing an income tax that has graduated marginal rates by a flat tax are complex. Typically the flat tax rate will be less than the top marginal rate under the pre-existing tax, leading to gains for the wealthiest. On the other hand, real-world proposals generally combine this with increases in personal exemptions that benefit some of the lowest income taxpayers. The result is that flat tax proposals usually redistribute from the middle to the extremes.
Rashmi Singh and Lalatendu Kesari Jena
This paper aims to investigate the effect of parent–adolescent conflict in step versus biological families on family communication patterns (FCPs) and the conflict resolution…
Abstract
Purpose
This paper aims to investigate the effect of parent–adolescent conflict in step versus biological families on family communication patterns (FCPs) and the conflict resolution strategy adopted by adolescents during family destinations or holiday planning (where to visit?).
Design/methodology/approach
The literature on family conflict (i.e. parent–adolescent conflict) and the different types of families (step vs nuclear) supported the proposed framework. The survey was conducted in the Indian subcontinent with a sample size of 437 adolescents. SPSS 22.0 was used for factor analysis (exploratory and confirmatory factor analysis) and structural equation modelling was used through AMOS 26.0 for data analysis.
Findings
Significant relationship was observed between the types of families (step and biological), FCP and the resolution strategy chosen by Indian adolescents. Adopting a resolution strategy by adolescents in both families depends on the type of FCP in the family. Adolescents in stepfamilies have socio-oriented FCP and use “positive problem-solving” and “conflict withdrawal” as a resolution strategy. In contrast, adolescents in biological families have concept-oriented families and use “conflict enhancement” as a resolution strategy. It has also been found that adolescents who fall into high-stress categories used conflict enhancement strategies. In contrast, those who fall under low-stress categories used positive problem-solving and withdrawal strategies.
Practical implications
This study will add a new chapter to adolescents’ decision-making literature in line with the previous research. It has practical implications for tourism marketers, academicians/researchers and policymakers. Marketers can segment adolescents into step versus biological families, and the choice of resolution strategies may introduce efficient and competent marketing strategies and promotional campaigns.
Originality/value
This study favours that family type is a robust construct to predict adolescents’ choice of resolution strategy. So, it is one of the most influential variables in adolescents’ resolution strategy adoption.
Details
Keywords
Julie Tinson, Clive Nancarrow and Ian Brace
The purpose of this paper is to note the growing significance of different family types in the west and explore the relationship between the complexity of family relationships…
Abstract
Purpose
The purpose of this paper is to note the growing significance of different family types in the west and explore the relationship between the complexity of family relationships typified in single parent, blended and intact families and the involvement of children in purchase decisions.
Design/methodology/approach
The quantitative research is a development based on earlier qualitative research on the three family types and large‐scale piloting of the questionnaire. A random sample of mothers with children aged 10‐16 were contacted from the TNS Postal Access Panel. Questionnaires were only used where there were responses from both the mother and child. A total of 524 fully completed questionnaires were used for the analysis.
Findings
The analysis supports the idea that where familial relationships are simpler such as in single parent homes (fewer relationships) then the involvement of the child is greater and in more complex relationships such as in blended homes (where there are step‐parents and step children present) a child's involvement may be less marked. Exceptions to the “rule” are discussed as are the theoretical and practical implications.
Originality/value
Whilst social trends indicate that the composition of the family will continue to change, little research has been conducted on the impact of changing family structures on consumption behaviour.
Details
Keywords
The purpose of this study is to examine the association between financial capability and informal bankruptcy, especially among families in which the respondent and/or spouse…
Abstract
Purpose
The purpose of this study is to examine the association between financial capability and informal bankruptcy, especially among families in which the respondent and/or spouse borrowed student loans to fund their own education and families that did not have such loans.
Design/methodology/approach
US nationally representative data were employed. Three family types were used, families with student loans borrowed to fund respondent and/or spouse's education and education was completed (type 1 holders) or not completed (type 2 holders), and families that did not borrow student loans for respondent and/or spouse's education (non-holders). Informal bankruptcy was measured by being insolvent and late in debt payment for 60 or more days. Financial capability was measured by both an index and its various components. Multivariate logistic regressions were conducted to examine associations between financial capability and informal bankruptcy.
Findings
Generally, financial capability was negatively associated with informal bankruptcy, and student loan holders were more likely to be informally bankrupt than non-holders. However, such negative associations were statistically significant for type 1 holders and non-holders but insignificant for type 2 holders. Two desirable financial behaviors (information search and online banking) reduced the chance of informal bankruptcy for type 2 holders.
Research limitations/implications
First, cross-sectional data cannot establish a causal relationship. Second, findings using data from a single country may not be generalized to other countries.
Practical implications
Financial service professionals should help loan applicants evaluate the necessity of borrowing. Banking professionals can use the findings to develop products to meet different consumer needs. Financial educators should target different groups with different strategies in financial capability education. Policymakers should develop policies helping student loan holders complete education funded by student loans.
Originality/value
This study examines factors related to informal bankruptcy, providing insights to warning signs of bankruptcy. This study explores the potential effect of a new factor, financial capability, on informal bankruptcy, filling in a gap in the bankruptcy literature. This study recognizes differences in informal bankruptcy among various types of families and examines the different effects of financial capabilities on informal bankruptcy for different types of families.
Details
Keywords
R.P. Mohanty and M.V.R. Krishnaswamy
Some hierarchical approaches for production planning in a batch type manufacturing environment are described. In a single stage production system, three aggregation levels exist…
Abstract
Some hierarchical approaches for production planning in a batch type manufacturing environment are described. In a single stage production system, three aggregation levels exist: types, families and items. The performance of a hierarchical system model is largely dependent on the methods of disaggregation at different levels. This paper reports on a study of hierarchical methods at the family disaggregation level and incorporates a simple modification to improve upon a heuristic proposed by Winters. Results indicate that even a very simple hierarchical planning approach can give a significant reduction in backorders in a production shop having severe capacity restriction.
Details
Keywords
Md Jahidur Rahman, Hongtao Zhu and Md Moazzem Hossain
From an agency perspective, the authors investigate whether family ownership and control configurations are systematically associated with a firm's choice of auditor and audit…
Abstract
Purpose
From an agency perspective, the authors investigate whether family ownership and control configurations are systematically associated with a firm's choice of auditor and audit fees. Agency theory is an economic theory that purposes the existence of a contract between two parties, principals and agents. Auditor choice and audit fees by family firms provide interesting insights given the unique nature of the agency problems faced by such firms.
Design/methodology/approach
The authors employ Big-4 auditors (PWC, KPMG, E&Y and Deloitte) as a proxy for high quality auditor (Big N) for the auditor choice model. For the audit fee model, the dependent variable is the natural logarithm of audit fees (LnAF). The authors use two measures for family firm as explanatory variables: (1) a dummy variable (FAM_Control), which equals one if the firm is classified as a family firm and (2) FAM_Ownership, which is an indicator variable with a value of one if a firm has family members who hold CEO position, occupy board seats, or hold at least 10% of the firm's equity. Data of Chinese listed firms from 2011 to 2021 are used. The authors adopt the Heckman (1979) two-stage model to mitigate the potential endogeneity issue involved in the selection of Big-N auditors.
Findings
The findings suggest that compared with non-family firms, Chinese family firms have a less tendency to employ Big-4 auditors due to less severe agency problems between owners and managers. Additionally, Chinese family firms sustain higher audit fees than non-family firms. Similar to the prior literature, however, Chinese family firms audited by Big-4 auditors incur lower audit fees than family firms audited by non-Big-4 auditors in this study. In contrast to young-family firms, old-family firms are less likely to pick top-tier auditors and sustain lower audit fees. Consistent and robust results are found from endogeneity tests and sensitivity analyses.
Originality/value
The empirical evidence provides a unique insight, for accounting practitioners, policymakers, family owners and other capital market participants concerning the diverse effects of various family ownership and control features on selecting high-quality auditors and audit fees. This study advances the understanding, showing that a lower demand for audit quality occurs in Chinese family firms as they encounter less severe Type I agency problems. However, the more severe Type II agency problems in Chinese family firms sustain higher audit fees due to higher audit risk and greater audit effort.
Details
Keywords
This paper aims to adopt the mutuality perspective from the field of human resource management (HRM) to examine family firms, specifically human resource (HR) practices that are…
Abstract
Purpose
This paper aims to adopt the mutuality perspective from the field of human resource management (HRM) to examine family firms, specifically human resource (HR) practices that are likely to be found in Thai family firms.
Design/methodology/approach
The cross-case analysis of three successful unreformed or authoritarian family firms in Thailand draws on semistructured interviews with top managers and/or HR managers as well as the employees of each family firm, field visits to each firm and a review of archival documents and Web-based resources.
Findings
This paper proposes that the recruitment of employees via alternative or substream recruitment channels (especially the recruitment of current employees’ relatives or family members), paternalistic employee relations practices and the management of aging employees, specifically with regard to the absence of retirement age, the facilitation of financial planning, reduced workload, the appointment of mentors/advisors and the encouragement of aging employees to transfer knowledge to younger generations tend to be found across Thai family firms, especially the unreformed or authoritarian type. These HR practices are implemented across family firms because they help to manage high levels of debt that have accumulated over many years so that employees attain financial literacy before retirement and to foster and maintain positive relationships between managers and employees across firms. These positive relationships thus foster the retention of capable and loyal, aging employees who have been developed within the firm and who have worked with the firm for a long time (so-called Look-Mor), leading to the maintenance of tacit knowledge and experience within firms and the alleviation of the problem of labor shortage. Theoretically, this paper proposes that a family-like corporate culture typically found in family firms serves as the antecedent to the adoption and implementation of those HR practices (so-called culture determinism). In particular, the fit between corporate culture and HR practices is likely to foster the strong commitment among employees to firms and the feelings of job security among these employees (so-called commitment match in the mutuality of the employment relationship).
Research limitations/implications
An important limitation of this study concerns its methodology. Because this study is based on the case studies of only three unreformed or authoritarian family firms located in Thailand, the findings in this paper only propose substream or alternative HR practices that are likely to be found across Thai family firms; therefore, generalization to all other types of family firms and all other family firms across countries is not possible. Examining whether the HR practices proposed in this paper are uniquely found across family firms should be the subject of future research. Another limitation of this study is that it does not include firms located in other industries, such as the health-care industry and the hotel and restaurant industry. Future research could explore the HR practices implemented by family firms in these industries. Moreover, quantitative studies using large samples of family firms across industries might be useful in deepening the understanding of the HR practices implemented in family firms from the mutuality perspective on HRM.
Practical implications
This paper has practical implications for top managers and/or HR managers across firms not only in Thailand but also in other countries. First, top managers and/or HR managers across family firms, especially those of the unreformed or authoritarian type, should implement the HR practices proposed in this paper that are aligned well with a family-like corporate culture found in family firms to foster the strong commitment among employees to firms and the feeling of job security among these employees. Second, other types of firms (e.g. publicly owned corporations and multinational corporations) that do not have a family-like corporate culture may have to adapt some of these HR practices to their corporate culture and workplace atmosphere within their firms. Third, to manage and retain high-quality aging employees within firms, top managers and HR managers across various types of firms should implement some of the HR practices for managing aging employees proposed in this paper so that the firms can retain invaluable aging employees over time.
Social implications
This paper provides social/policy implications for the government and/or relevant public agencies of Thailand and of several other emerging market economies. These governments should encourage the firms located in their countries to implement some of the HR practices proposed in this paper to maintain and support knowledgeable and skillful aging employees in their firms.
Originality/value
This paper contributes to the two main bodies of literature on HRM and family business in the following ways. First, most previous studies on HRM have focused on the mainstream HR practices used in large firms while neglecting the alternative or substream HR practices used in family firms. Additionally, relatively little research has specifically examined the mutuality perspective with regard to HRM. Thus, this paper extends the literature on HRM and family business settings regarding HR practices that are likely to be found across Thai family firms, corporate culture as an antecedent of the adoption and implementation of those HR practices, and the fit between corporate culture and HR practices with respect to mutuality in the employment relationship. Moreover, the literature on HRM has typically overlooked the underresearched country of Thailand; most studies in this area have primarily focused on developed countries or other emerging market economies, including China and India. The findings of this paper provide an in-depth analysis of HR practices that are likely to be found in family firms located in the emerging market economy of Thailand according to the mutuality perspective with regard to HRM.
Details
Keywords
Julie Gosselin and Katherine Rousseau
Difficulties in defining stepfamily roles remain an important issue for its members. A potentially important factor in defining roles in the family is the identification with a…
Abstract
Purpose
Difficulties in defining stepfamily roles remain an important issue for its members. A potentially important factor in defining roles in the family is the identification with a particular gender type and how it relates to one's expectations about one's place in the family system. The purpose of this paper is to explore how gender typing processes inform our understanding of the stepmother role construction process, and its link with stepfamily adjustment.
Design/methodology/approach
Semi‐structured interview data from six androgynous and six feminine stepmothers were selected based on gender type identification.
Findings
Results from this analysis were analyzed using a phenomenological approach, and are presented with the intent to explore how gender typing processes inform our understanding of the stepmother role construction process, and its link with stepfamily adjustment.
Originality/value
Gender typing has not been studied in the context of stepmother families, even though research on stepmothers’ adjustment has highlighted the ambiguous nature of their role in the stepfamily. Additionally, while qualitative inquiry continues to represent the favoured paradigm in the emerging area of stepmother research, studies of this type remain limited in scope.
Details