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1 – 10 of over 4000Kerry Bodle, Mark Brimble, Scott Weaven, Lorelle Frazer and Levon Blue
The purpose of this paper is to investigate success factors pertinent to the management of Indigenous businesses through the identification of points of intervention at the…
Abstract
Purpose
The purpose of this paper is to investigate success factors pertinent to the management of Indigenous businesses through the identification of points of intervention at the systemic and structural levels. Through this approach, the economic and social values that First Nations communities attach to intangible Indigenous cultural heritage (ICH) and Indigenous cultural intellectual property (ICIP) may be both recognised and realised as assets.
Design/methodology/approach
This paper adopts a multidisciplinary approach to address a global issue of economic and social significance to First Nation peoples, their businesses and the Australian Aboriginal communities. The authors adopt a First Nation epistemological standpoint that incorporates theoretical perspectives drawn from a diverse range of fields and theories (Preston, 2013), as well as advocate the use of Indigenist methodology for research with First Nation peoples as it is underpinned by critical race theory.
Findings
The authors argue conceptually that accounting, accountability and auditing consideration are required to fully identify what is impacting the successful management of Indigenous enterprises. Specifically, in relation to accounting, Elders should be included to assist in valuing the intangible ICH and ICIP assets. Furthermore, the authors emphasise the need to improve the financial and commercial literacy levels of Indigenous entrepreneurs.
Practical implications
The authors prescribe the use of tools for the accounting treatment of ICH and ICIP as intangible assets within an Australian regulatory environment and define an auditing process and accountability model incorporating cultural, social and environmental measures. A central tenet of this model relates to improving levels of personal and commercial financial literacy in the First Nation participants. Collectively, these factors promote informed participation and decision-making, and may promulgate more sustainable outcomes.
Social implications
Integrated thinking requires all these factors to be considered in a holistic manner, such that a First Nation enterprise and the wider Aboriginal and Torres Strait Islander people can understand, and make decisions based on, the overall impact it has on all their stakeholders and generally on the society, the environment and the economy.
Originality/value
This paper contributes to Australia’s strategic research priorities of maximising social and economic participation in society and improving the health and well-being of the Aboriginal and Torres Strait Islander people. The authors address the inability of current Western accounting standards, practices and models to suitably account for communally held and protocol-bound intangible Indigenous cultural heritage and Indigenous cultural intellectual property assets.
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Susan Whatman, Jane Wilkinson, Mervi Kaukko, Gørill Warvik Vedeler, Levon Ellen Blue and Kristin Elaine Reimer
Stephen Korutaro Nkundabanyanga, Denis Kasozi, Irene Nalukenge and Venancio Tauringana
The purpose of this paper is to investigate the relationship between commercial bank lending terms, financial literacy and access to formal credit by small and medium enterprises…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between commercial bank lending terms, financial literacy and access to formal credit by small and medium enterprises (SMEs).
Design/methodology/approach
In this cross-sectional study, the authors surveyed 384 business owners or managers of SMEs in Uganda. The authors applied confirmatory factor analysis to reduce the number of factors and identify the important elements that capture commercial lending terms, financial literacy and access to formal credit. The authors put forward and tested two hypotheses relating to the significance of the relationship between perceived commercial bank lending terms, financial literacy and access to formal credit using structural equation modelling with analysis of moment structures 18.
Findings
The results suggest a positive and significant relationship between perceived commercial bank lending terms, financial literacy and access to formal credit. Moreover, the ANOVA results serendipitously show that access to formal credit varies with type of business and turnover. However, collateral and loan repayment periods are not observed variables for commercial bank lending terms. The most significant observed variable for commercial bank lending terms is interest rates. This, together with financial literacy, explains 31 per cent of the variances in access to formal credit by SMEs in Uganda.
Research limitations/implications
The study is limited to the SME firms registered and operating in Kampala, Uganda and it is possible that the results are only applicable to these firms in Uganda. Nevertheless, the findings have implications to commercial banks wishing to improve the turnover of their micro-lending schemes.
Practical implications
Efforts by the stakeholders to improve financial literacy of SMEs owners and managers must be matched with favourable interest rates if access to formal credit is to be enhanced.
Social implications
The findings also have implications for governments aiming at improving access to finance to overcome income inequality problems, and also improve their growth.
Originality/value
The results provide initial evidence of the aggregate explanatory power of interest rates and financial literacy for the criterion variable, access to formal credit by SMEs.
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Fátima Sol Murta and Paulo Miguel Gama
What is the impact of financial literacy on the lending activity of banks? Based on the results of the S&P Global FinLit Survey for an extensive sample of countries, this paper…
Abstract
Purpose
What is the impact of financial literacy on the lending activity of banks? Based on the results of the S&P Global FinLit Survey for an extensive sample of countries, this paper aims to provide the first global test for the impact of country-level financial literacy on the lending activity of commercial banks.
Design/methodology/approach
The authors use data on financial literacy by country from the S&P Global FinLit Survey that was completed in 2014 and lending activity and macroeconomic control variables data from the World Bank from 2015 to 2017 to estimate the cross-sectional effect of financial literacy on the importance of loans and of non-performing loans, using different estimation methods.
Findings
The results show that, first, financial literacy favors lending activity, contributing to enhance the importance of credit in the economy. Second, financial literacy prevents bad loans from building up, thus reducing credit risk and favoring the quality of the credit portfolio of banks. These results are robust to several controls for macroeconomic conditions and the quality of institutions. They are also robust to different estimation methods.
Research limitations/implications
The evidence of the positive (negative) impact of population financial literacy on the quantity (poor quality) of loans suggests that the efforts to enhance the financial literacy of the population contribute to the sustainable development of the financial sector and economic growth.
Originality/value
The paper extends to an international and country-level the available evidence of the consequences of the existence (or lack of) of financial literacy for the lending activity of commercial banks, focusing on the amount of credit granted and the quality of such credit. Thus, the paper provides an exploratory analysis of the impact of country-level financial literacy on the lending activities of commercial banks.
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Vera Intanie Dewi and Leo Indra Wardhana
This study investigates the relationship between financial literacy, that is, financial knowledge and financial skills, and market discipline, with financial behavior as the…
Abstract
Purpose
This study investigates the relationship between financial literacy, that is, financial knowledge and financial skills, and market discipline, with financial behavior as the mediating variable. The study uses data from Indonesian depositors in commercial banks to estimate the relationship between the variables.
Design/methodology/approach
This study applied an explanatory method with a quantitative approach by surveying 343 Indonesian commercial bank depositors, in both public and private banks. The responses were collected using the purposive sampling technique. This study applied structural equation modeling (SEM) using AMOS software to analyze the data and then to estimate the relationships between financial literacy and market discipline.
Findings
This study shows that financial knowledge, financial skills, and financial behavior can improve market discipline. This study also provides empirical evidence that financial behavior has a mediation effect on the relationship between financial skills and financial knowledge to the market discipline.
Research limitations/implications
The results show that all financial literacy latent variables have a significant positive effect on market discipline. Financial behavior has a mediation effect on the relationship of financial skills and financial knowledge with market discipline. Depositors with good knowledge of financial products and services, who are skillful in managing their money and who demonstrate good financial behavior can effectively discipline the market. They will punish imprudent banking by actions such as the withdrawal of their funds. Financial literacy significantly enhances market discipline.
Practical implications
This study provides recommendations for regulators, practitioners, academics, and depositors, that is, the actors in the financial industry, on the need to empower consumers with financial literacy, while also promoting market discipline to recognize the importance of these two aspects for the sustainability of financial stability.
Originality/value
This study provides empirical evidence for the market discipline literature, using a behavioral approach, namely, the action of withdrawal of funds. The study then estimates the relationship between financial literacy, that is, financial knowledge and financial skills, and market discipline, with financial behavior as the mediating variable.
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Alyson Vaaler and Jennifer Wilhelm
The purpose of this paper is to describe how librarians used elements of market research, advertising and media literacy in a personal finance class.
Abstract
Purpose
The purpose of this paper is to describe how librarians used elements of market research, advertising and media literacy in a personal finance class.
Design/methodology/approach
Librarians each semester guest lecture one session in a personal finance class “Foundations of Money Education.” Through this class, librarians present engaging material about market research and advertising in an effort to encourage students to think about how these external forces influence their spending behavior.
Findings
Students appreciate learning about advertising through the engaging use of commercials. While responses were mixed as to the applicability of the topic, the majority of students agreed that the topic was a worthwhile addition to the personal finance curriculum.
Originality/value
Topics such as budgets, savings, and mortgages are typically taught in personal finance classes. Teaching information about market research and advertising is a topic that is usually not covered in a personal finance class.
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Ahmad Abbas, Neks Triani, Wa Ode Rayyani and Muchriana Muchran
This paper aims to describe earnings growth and marketability generated by Islamic banks in Indonesia and to find the effects of a moderated mediation model on the nexus between…
Abstract
Purpose
This paper aims to describe earnings growth and marketability generated by Islamic banks in Indonesia and to find the effects of a moderated mediation model on the nexus between Islamic financial inclusion and literacy, marketability and earnings growth.
Design/methodology/approach
The sample of this research was Islamic commercial banks in Indonesia listed on the Financial Services Authority and Bank Indonesia using time-series data of financial statements from 2014 to 2021. This research was designed using the model of moderated mediation.
Findings
Earnings growth experienced by Islamic banks in Indonesia has a positive average value followed by a positive marketability. Based on the significance test, the level of earnings growth is positively affected by marketability. The result indicates that the higher the marketability, the higher the earnings growth of Islamic banks. In a moderated mediation model, the result has found a positive effect on the nexus between inclusion supported by the role of literacy, marketability and earnings growth. It indicates that Islamic financial inclusion moderated purely by the role of literacy enhances Islamic banking marketability so that earnings growth continuously increases.
Practical implications
The increase of literacy is an empirically proven way to strengthen market power, so the finding obtained in this research can be feedback from the scheme made by the Indonesian government in supporting the Islamic business and for the corporate area being eager to grow greater and faster in competing and equalizing its power in the banking industry. In addition, this research implies that other countries continuously promote and increase the role of Islamic financial literacy and inclusion to enhance market power and increase the growth in Islamic banking.
Originality/value
This research extends the limited scholarly work on the role of Islamic financial literacy and inclusion using a different design from prior studies. The framework of market power theory has been elaborated to find the effect of Islamic financial inclusion supported by the role of literacy on earnings growth through marketability. This research is a trailblazer in testing the nexus model between variables allowing the path analysis using the moderated mediation model.
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Mohammed Ali Al-Awlaqi and Ammar Mohamed Aamer
Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several…
Abstract
Purpose
Although Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.
Design/methodology/approach
This study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.
Findings
The study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.
Originality/value
This is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.
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George Okello Candiya Bongomin, Joseph Mpeera Ntayi and Charles Akol Malinga
The main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by…
Abstract
Purpose
The main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.
Design/methodology/approach
The study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.
Findings
The results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.
Research limitations/implications
This study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.
Practical implications
The advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.
Originality/value
This paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.
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