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Book part
Publication date: 16 December 2016

Sébastien Lleo and Jessica Li

The purpose of this chapter is to study the mathematisation of finance – excessive use of mathematical models in finance – which has been widely blamed for the recent…

Abstract

The purpose of this chapter is to study the mathematisation of finance – excessive use of mathematical models in finance – which has been widely blamed for the recent financial and economic crisis. We argue that the problem might actually be the financialisation of mathematics, as evidenced by the gradual embedding of branches of mathematics into financial economics. The concept of embeddedness, originally proposed by Polanyi, is relevant to describe the sociological relationship between fields of knowledge. After exploring the relationship between mathematics, finance and economics since antiquity, we find that theoretical developments in the 1950s and 1970s lead directly to this embedding. The key implication of our findings is the realization that it has become necessary to disembed mathematics from finance and economics, and proposes a number of partial steps to facilitate this process. This chapter contributes to the debate on the mathematisation of finance by uniquely combining a historical approach, which chronicles the evolution of the relation between mathematics and finance, with a sociological approach from the perspective of Polyani’s concept of embedding.

Details

Finance and Economy for Society: Integrating Sustainability
Type: Book
ISBN: 978-1-78635-509-6

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Article
Publication date: 1 June 2000

Lewis Guodo Liu

The emergence of business information resources and services on the Internet is discussed and its impact on business librarianship. Important resources in various business…

Abstract

The emergence of business information resources and services on the Internet is discussed and its impact on business librarianship. Important resources in various business areas are identified, such as economics, finance, marketing, international business, and real estate. It is argued that business information on the Internet has become a very important part of business information services and that it poses great challenges to business librarianship. Subject knowledge in business has become increasingly crucial for business librarians to effectively identify, evaluate, select, and organise business information on the Internet. Without subject knowledge, or with a lack of subject knowledge in business, business librarians will not be able to maintain the quality of business information services. The article further argues that, given the fact that a large percentage of business librarians in the USA do not have formal training in business, it is time for library and information science schools and libraries to address this issue by setting high standards for recruiting instructors in business information and by setting high standards for employing business librarians.

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Online Information Review, vol. 24 no. 3
Type: Research Article
ISSN: 1468-4527

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Book part
Publication date: 5 February 2019

Les Coleman

Abstract

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New Principles of Equity Investment
Type: Book
ISBN: 978-1-78973-063-0

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Article
Publication date: 6 July 2021

Usman Farooq, Fu Gang, Zhenzhong Guan, Abdul Rauf, Abbas Ali Chandio and Faiza Ahsan

This study aims to investigate the long-run relationship between financial inclusion and agricultural growth in Pakistan for the period of 1960–2018.

Abstract

Purpose

This study aims to investigate the long-run relationship between financial inclusion and agricultural growth in Pakistan for the period of 1960–2018.

Design/methodology/approach

The autoregressive distributed lag (ARDL) approach, the Johansen co-integration test and the dynamic ordinary least squared (DOLS) method are used for the evaluation.

Findings

The results show that in both short- and long run, domestic credit has a significantly negative impact on the agricultural growth, while broad money and cropped area positively affected the agricultural growth in Pakistan in both cases.

Practical implications

The government and policymakers need to develop strategies that bring together agriculturalists on a single platform so that the government can clearly distinguish the interests of these farmers and can obtain precise information for allocating agricultural expenditure and easing access to credit for small-scale agriculturalists.

Originality/value

This is the first study to evaluate the impact of financial inclusion on the agricultural growth in Pakistan by using different econometric techniques, including the ARDL-bound approach, Johansen co-integration test and DOLS method.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Book part
Publication date: 1 March 2021

Abstract

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Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

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Article
Publication date: 12 April 2019

Ebenezer Bugri Anarfo, Joshua Yindenaba Abor, Kofi Achampong Osei and Agyapomaa Gyeke-Dako

The purpose of this paper is to investigate the dynamic link between financial inclusion and financial sector development (FSD) in Sub-Saharan Africa.

Abstract

Purpose

The purpose of this paper is to investigate the dynamic link between financial inclusion and financial sector development (FSD) in Sub-Saharan Africa.

Design/methodology/approach

This paper employs a panel vector autoregressive framework to examine the dynamic link between financial inclusion and FSD in Sub-Saharan Africa.

Findings

The findings indicate that there is a reverse causality between FSD and financial inclusion in both the Sub-Saharan Africa countries sample and the full sample. It is evident that financial inclusion is a driver of FSD and vice versa.

Practical implications

The practical implication of this study is that financial inclusion should not only be pursued as a policy objective but it could also be an outcome variable of FSD and vice versa. This implies that African economies and governments in their effort to enhance financial inclusion, FSD can serve as a policy tool. This means that policies aimed at promoting financial inclusion will not impede FSD because the two are complementary. This suggests that we can achieve financial inclusion without sacrificing FSD and vice versa.

Originality/value

This paper provides first empirical evidence of the link between financial inclusion and FSD from the Sub-Saharan Africa perspective using data sourced from World Development Indicators spanning from 1990 to 2014 for 48 Sub-Saharan African economies and 217 economies in the world for the full sample.

Details

International Journal of Managerial Finance, vol. 15 no. 4
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 28 September 2010

Thomas Willett

The purpose of this paper is to discuss implications of the global crisis for economic and financial research and policy.

Abstract

Purpose

The purpose of this paper is to discuss implications of the global crisis for economic and financial research and policy.

Design/methodology/approach

The paper reviews many recent studies on the crisis and offers the author's views on some of the most important lessons to be drawn from the crisis

Findings

The review counters views that the crisis reflected a basic failure of economics, but agrees that it undercuts some particular theories and approaches to economics. More attention needs to be given to imperfections in the operation of both markets and governments, drawing on insights from behavioral and neuro economics and finance and political economy analysis and recognizing the importance of limited information and uncertainty about correct models. The creation of perverse incentive structures explain a large part of the financial excesses that led to the crisis. Financial considerations need to be integrated much more closely with macroeconomic analysis and financial risk analysis needs to pay more attention to economic considerations. Useful insights can be drawn from many different theories and approaches and we should not expect any one theory to have all the answers. The excesses observed in the advanced economies do not imply that there are not enormous benefits to be gained from further financial liberalization in emerging market economies, but they do show that great care must be taken in establishing strong supervision of such liberalizations and highlight many of the dangers to look out for.

Originality/value

The paper offers a guide to the literature for those interested in learning more about the causes and effects of the crisis and policy responses and offers a number of suggestions for fruitful research topics and policy strategies.

Details

Indian Growth and Development Review, vol. 3 no. 2
Type: Research Article
ISSN: 1753-8254

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Article
Publication date: 3 April 2020

Mostafa Harakeh, Ghida Matar and Nagham Sayour

The literature of financial economics documents a causal relationship between the level of information asymmetry in the firm and its dividend policy. Nevertheless, this…

Abstract

Purpose

The literature of financial economics documents a causal relationship between the level of information asymmetry in the firm and its dividend policy. Nevertheless, this relationship suffers endogeneity problems arising from reverse causality and omitted variable bias. The purpose of this study is to examine how the dividend policy reacts to changes in asymmetric information in an exogenous research setting.

Design/methodology/approach

To overcome endogeneity concerns, the authors employ the enactment of the Sarbanes-Oxley Act (SOX) in the US in 2002 as a source of an exogenous variation in the level of information asymmetry to study the potential effect that this variation might have on the dividend policy. In doing so, we utilize a difference-in-differences research design, in which the treatment group is US publicly traded firms that were exposed to the policy and the control group is publicly traded companies in the UK where SOX was not enacted. Both countries have similar institutional settings and enforcement of laws, which makes them comparable in this research context.

Findings

The authors’ findings show that, compared to UK companies, US firms increase their dividend payments following a reduction in asymmetric information as a result of the SOX enactment.

Originality/value

The study contributes to the literature of financial economics by showing that policy makers can mitigate agency conflicts and protect shareholders by improving the corporate information environment and reducing asymmetric information.

Details

Journal of Economic Studies, vol. 47 no. 6
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 3 December 2020

Rodica Ianole-Calin, Geoffrey Hubona, Elena Druica and Cecilia Basu

The purpose of this paper is to investigate the extent to which financial behavior and financial well-being are affected by cognitive and non-cognitive factors in a…

Abstract

Purpose

The purpose of this paper is to investigate the extent to which financial behavior and financial well-being are affected by cognitive and non-cognitive factors in a specific Romanian post-communist context. This study shows that financial well-being is significantly linked to both financial education and to a set of non-cognitive factors. This paper offers strategic insights on what financial services should communicate to consumers and how they should be communicated, achieve the mutual benefits of the transformative paradigm.

Design/methodology/approach

This study uses an online sample of 1,602 participants, representative of the general population in Romania concerning income and education, to collect data on financial anxiety, financial security and financial saving behavior (dependent variables), self-control, optimism, future orientation, deliberative thinking and financial literacy (independent variables). This paper measures the latent constructs – as composite indices, using partial least squares – path modeling. Working with WarpPLS software version 6.0 allows exploration of both linear and non-linear relationships involved in the model, along with their practical and managerial implications.

Findings

The results indicate that the key component to address in the development of financial services (in the post-soviet context) is financial anxiety. This study finds that, in contrast to Western countries, in Central, Eastern and Southeastern Europe (CESEE), financial education is not always a panacea. Additionally, financial security is not always the most important goal for consumers.

Practical implications

This paper suggests managerial recommendations for redefining the relationship between banks and the Romanian population, focused mainly on diminishing financial anxiety and increasing financial security, as key elements of transformative financial services.

Originality/value

The study highlights the significant role played by behavioral variables in shaping financial well-being in Romania, being among the very few investigations illustrating the relevance of the topic in post-communist countries. This research shows unique challenges for the design of transformative financial services in a specific (post-communist) setting and provides insights on how financial services marketing can become more effective in the CESEE region.

Details

Journal of Services Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 13 September 2011

Swee‐Hoon Chuah and James Devlin

It has been argued that the insights provided by behavioural economics have profound implications for the study and practice of marketing. The purpose of this paper is to…

Abstract

Purpose

It has been argued that the insights provided by behavioural economics have profound implications for the study and practice of marketing. The purpose of this paper is to provide a detailed analysis of how such insights help enhance understanding of aspects of marketing and consumer behaviour in financial services markets.

Design/methodology/approach

This paper looks at various facets of behavioural economics which it is felt provide particularly important and salient insights in the context of financial services. In particular, it studies loss aversion and prospect theory, status quo bias and defaults, framing and anchoring effects, hyperbolic discounting, availability effect and salience and over‐confidence. In doing so, it provides a number of examples from the financial services context which provide insightful and informative insights for both commercial practitioners and policymakers. In each case, relevant phenomena are introduced and explained before providing a number of applications and examples from the financial services domain.

Findings

The authors find that the insights afforded by behavioural economics are useful in helping to explain various aspects of consumer behaviour in financial services markets. It is shown that an understanding of the implications of behavioural economics may help in fashioning a choice architecture that is more likely to bring the desired consumer response, from either a commercial or policymaking perspective.

Practical implications

This analysis provides important insights for those responsible for the marketing of financial services, policymakers in the financial services domain, third sector agencies seeking to foster greater engagement with financial services and other interested parties.

Originality/value

The paper adds value by drawing together various aspects of behavioural economics, providing an analysis of their relevance to financial services marketing and offering numerous examples and applications.

Details

International Journal of Bank Marketing, vol. 29 no. 6
Type: Research Article
ISSN: 0265-2323

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