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Book part
Publication date: 21 October 2019

Omer Unsal and Blake Rayfield

In 1971, the patent for the Automated Teller Machine was awarded to David Wetzel. While possibly not the first application of financial technology, since 1971 time, the…

Abstract

In 1971, the patent for the Automated Teller Machine was awarded to David Wetzel. While possibly not the first application of financial technology, since 1971 time, the innovation in the financial industry has grown beyond expectations. However, most studies in innovation ignore the financial sector altogether. In this study, the authors investigate financial technology firms and innovation. After identifying firms that are considered financial technology, the authors collect innovation outcomes such as patents and data breaches associated with those firms. The authors show that patent activity has enjoyed modest growth year over year; however, firms still have challenges to overcome such as market risk and data security. This study serves as a perspective on financial technology.

Details

Disruptive Innovation in Business and Finance in the Digital World
Type: Book
ISBN: 978-1-78973-381-5

Keywords

Article
Publication date: 25 January 2022

Zhoujing Lai and Hang (Robin) Luo

The authors intend to expand the literature on the relationship between intelligent technology and human resources in operating cost, and firm value of financial

Abstract

Purpose

The authors intend to expand the literature on the relationship between intelligent technology and human resources in operating cost, and firm value of financial institutions in emerging markets by integrating the influence of intelligent technology and contribute to a growing body of literature on the determinants of firm value.

Design/methodology/approach

This paper empirically investigates the impact of intelligent technology investment on employment compensation and firm value using a sample of 86 listed financial institutions in China from 2010 to 2019.

Findings

This paper reports robust evidence that an increase in intelligent technology investment has a significantly negative effect on employment compensation in financial institutions. In addition, this inhibitory effect is persistent. The increase in intelligent investment has a significant two-year lag effect on firm value, which is positive and sustained. This indicates that intelligent technology investment has a short-term “useless” effect but brings long-term “gains” for Chinese financial institutions.

Originality/value

These findings may shed light on the decision-making processes of financial institutions, which helps practitioners better understand that firms need to reasonably deal with the subsequent cost of growth caused by intelligent technology input. Alternatively, they may wish to select the appropriate accounting method of depreciation or amortization to smooth its impact.

Details

International Journal of Emerging Markets, vol. 17 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 4 March 2021

Abhinav Pal, Chandan Kumar Tiwari and Aastha Behl

The purpose of this study is to thoroughly review studies that have used blockchain technology in financial services. This study will help provide a holistic framework…

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Abstract

Purpose

The purpose of this study is to thoroughly review studies that have used blockchain technology in financial services. This study will help provide a holistic framework that would highlight the current state and challenges of the blockchain in the financial services sector.

Design/methodology/approach

The objective of this study is to systematically examine and organize the current body of research literature that either quantitatively or qualitatively explored the use of blockchain technology in financial services. The study uses PRISMA-guided systematic review along with bibliometric analysis to achieve the purpose.

Findings

This study contributes to the existing literature by exploring and analyzing systematic studies available on blockchain with special reference to financial services sector. With blockchain based on five principles, namely, computational logic, peer-to-peer transmission, irreversibility of records, distributed database and transparency with pseudonym has immense potential to unleash and transform the financial service industry. With increasing blockchain-based operations of decentralized banking, insurance, trade finance, financial markets and cryptocurrency market, the subject is rapidly growing and seeking considerable contribution from scholars from around the world.

Research limitations/implications

This study uses systematic literature review approach, which has its own demerits. Like other studies based on Systematic Literature Review, this study also suffers from a certain bias such as sample selection bias, publication bias, data interpretation and the combination of quantitative and qualitative studies in the population. Further, the adoption and resultant benefits of blockchain have not been empirically tested.

Practical implications

This study can help policymakers and institutions in determining their future course of action, as it highlights the state of research in the area of blockchain technology and financial services.

Originality/value

Very few studies have done a comprehensive review of literature on blockchain in financial services.

Details

Journal of Global Operations and Strategic Sourcing, vol. 14 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Book part
Publication date: 24 October 2018

L. Yu. Andreeva, T. V. Epifanova, O. V. Andreeva and A. S. Orobinsky

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency…

Abstract

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency. Business stability is formed due to the introduction of a competence-based management system in financial organizations in the Russian corporate sector.

In terms of the digital economy as financial and technological companies, we consider large banks and other financial organizations to develop risk-oriented technologies for managing financial stability based on digitization.

The main aim of this chapter is to describe the features, the factors, and the conditions for the competence-based management development system. It highlights the role of the system for the banks and the financial technologies used by companies for sustainable development.

Details

Contemporary Issues in Business and Financial Management in Eastern Europe
Type: Book
ISBN: 978-1-78756-449-7

Keywords

Article
Publication date: 26 September 2022

Xiongying Wang and Xiang Chen

This paper mainly explores the relationship between digital inclusive finance and financing constraints of technological-based SMEs, and how digital inclusive finance…

Abstract

Purpose

This paper mainly explores the relationship between digital inclusive finance and financing constraints of technological-based SMEs, and how digital inclusive finance affects the financing constraints of technology-based SMEs. This paper empirically analyzes the relationship between them through the OLS model, and then further verifies the relationship between them through robust regression and heterogeneity analysis. At the same time, it uses the mechanism test to explore how digital inclusive finance affects the financing constraints of technology-based SMEs. This paper aims to address these issues.

Design/methodology/approach

This paper aims to explain the relationship between digital inclusive finance and financing constraints of technological-based SMEs. Technology-based SMEs always face the difficult problem of “financing difficulty” and “financing expensive” in the development process, which hinders the survival and development of enterprises to some extent. Digital inclusive finance development policy vigorously promoted by the state has alleviated the financing constraints of technology-based SMEs and brought opportunities for their development.

Findings

The results show that the role of digital inclusive finance in alleviating the financing constraints of technology-based SMEs, and incremental supplement and alleviating information asymmetry are the main reasons for digital inclusive finance to alleviate the financing constraints of technology-based SMEs. In view of the availability of digital inclusive financial data, this paper only uses the data from 2014 to 2019.

Originality/value

The authors’ research clearly found that the development of digital inclusive finance alleviates the financing of technology-based SMEs from the two aspects of “incremental supplement” and alleviating information asymmetry, so as to provide corresponding reference basis for the government to formulate a series of plans to support the development of technology-based SMEs.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 April 2020

Heather S. Knewtson and Zachary A. Rosenbaum

The purpose of this study is to define FinTech, differentiating it from financial technology and use the definition to develop an industry framework.

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Abstract

Purpose

The purpose of this study is to define FinTech, differentiating it from financial technology and use the definition to develop an industry framework.

Design/methodology/approach

Using the existing literature on FinTech and incorporating these contributions into a traditional financial structure, characteristics are outlined and placed into a framework that describes the FinTech industry.

Findings

FinTech is a specific type of Financial Technology, defined as technology used to provide financial markets a financial product or financial service, characterized by sophisticated technology relative to existing technology in that market. Firms that primarily use FinTech are classified as FinTech firms. Using these definitions, the paper provides a structure for the FinTech industry, classifying each type of FinTech firm by FinTech characteristics.

Research limitations/implications

Research that would inform the economic importance of FinTech would be served with an increased understanding of FinTech firms and the FinTech industry.

Originality/value

This paper contributes by defining FinTech and developing a comprehensive framework to describe the emerging FinTech industry.

Details

Managerial Finance, vol. 46 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 28 October 2020

Chandrashekar Raghutla and Krishna Reddy Chittedi

The study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia…

Abstract

Purpose

The study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia, India, China and South Africa (BRICS) economies.

Design/methodology/approach

The study uses Johansen Fisher type panel cointegration, fully modified ordinary least square and heterogeneous panel causality tests to examine long-run, long-run elasticities and short-run relationships. For conducting the tests, the study selected five emerging economies, i.e. Brazil, Russia, India, China and South Africa and used balanced panel data for the period between 1998 and 2016.

Findings

The empirical results confirm the presence of a long-run cointegration relationship among the variables. We find that financial development, technology and energy consumption have a considerable positive impact on economic output. Also, financial development, urban population and technology help reduce carbon (CO2) emissions and ensure an improved environmental quality in the long run in the five emerging economies. In the short run, a bidirectional causal relationship is noticed between financial development and CO2 emissions.

Practical implications

Clean energy, technological development and investments by public–private partnerships are required in the public and private sectors to reduce carbon emissions. This not only ensures improved environmental quality but also increases energy efficiency, thereby reducing dependency on traditional energy consumption.

Originality/value

As its contribution to the extant literature, the study examines the impact of financial development, energy consumption, technology, urbanization, economic output and carbon emissions in BRICS economies. The findings of the research suggest both the governments and policymakers of these five emerging economies to develop more effective policies toward bolstering the financial development and increasing the use of technology. These, in turn, ensure sustainable development with low CO2 emission in the future and, eventually, pushing those five emerging market economies toward sustainable economic growth.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Book part
Publication date: 30 September 2019

Audrey N. Scarlata, Kelly L. Williams and Brandon Vagner

The increasing availability of eXtensible Business Reporting Language (XBRL) financial statements motivates additional investigation of whether XBRL’s search-facilitating…

Abstract

The increasing availability of eXtensible Business Reporting Language (XBRL) financial statements motivates additional investigation of whether XBRL’s search-facilitating technology (SFT) and enhanced viewing capabilities facilitate information search and improve financial analysis decision quality and efficiency. This experiment investigates how using XBRL technology to view financial statements influences novice investors’ decision quality by affecting decision processes such as search strategy and effort, as well as decision efficiency (accuracy/effort) in a financial statement analysis task. In the experiment, randomly assigned student participants (n = 102) invested in companies using either static PDF-formatted or XBRL-enabled financial statements. No differences in decision quality (i.e., accuracy) due to technology use were observed. However, participants in the XBRL condition examined less information, used more directed search processes, and evidenced greater efficiency than did participants assigned to the PDF condition. Hence, the results suggest that XBRL SFT affects the use of differing decision processes relative to PDF technology.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-83867-346-8

Keywords

Article
Publication date: 9 May 2008

Manuchehr Shahrokhi

This purpose of this paper is to provide an overview of the status of e‐finance and discuss related issues and challenges. Provides data about growth of e‐finance in the…

14671

Abstract

Purpose

This purpose of this paper is to provide an overview of the status of e‐finance and discuss related issues and challenges. Provides data about growth of e‐finance in the last decade. Introduces advances and innovations in e‐finance and challenges facing the financial services and IT industries.

Design/methodology/approach

The paper employs the archival method of reviewing related literature (theoretical, applied and empirical) and organizing and presenting the topics to provide an overview of e‐finance status.

Findings

The major contributions and finding of this paper include all areas of e‐finance, application of technology to e‐finance, growth of the e‐finance in the financial services industry.

Research limitations/implications

The paper provides areas of e‐finance that face many different challenges and calls for further research in a number of areas related to e‐finance technology and the interface of financial services and IT.

Practical implications

The paper brings all scattered information and data about e‐finance under one umbrella that would make scholars and practitioners aware of advances in e‐finance and applications of innovations and new technology to financial services provided.

Originality/value

The main value or contribution of this paper is bringing together most of available literature, advances, innovations, application of IT in the financial services industry and showing how organizations could benefit from such innovations. It also provides ideas to scholars for further research in this area.

Details

Managerial Finance, vol. 34 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 12 September 2020

Paulina Roszkowska

The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically…

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Abstract

Purpose

The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments.

Design/methodology/approach

The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature review at the intersection of business, accounting and engineering, provides a foundation to propose technology advancements that can solve identified problems in accounting and auditing.

Findings

The findings show that blockchain, internet of things, smart contracts and artificial intelligence solutions have different functionality and can effectively solve various financial reporting and audit-related problems. Jointly, they have a strong potential to enhance the reliability of the information in financial statements and generally change how companies operate.

Practical implications

The proposed and explained technology advancements should be of interest to all publicly listed companies and investors, as they can help safeguard equity investments, thus build investors’ trust towards the company.

Social implications

Aside from implications for capital markets participants, the study findings can materially benefit various stakeholder groups, the broader company environment and the economy.

Originality/value

This is the first paper that seeks solutions to financial fraud and audit-related financial scandals in technology and not in implementing yet another regulation. Given the recent technology advancements, the study findings provide insights into how the role of an external auditor might evolve in the future.

Details

Journal of Accounting & Organizational Change, vol. 17 no. 2
Type: Research Article
ISSN: 1832-5912

Keywords

1 – 10 of over 125000