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Article
Publication date: 7 November 2019

Vikas Sangwan, Harshita, Puneet Prakash and Shveta Singh

This paper aims to undertake a thematic review of academic papers on financial technology (FinTech) to identify three broad categories for the purpose of classifying extant…

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Abstract

Purpose

This paper aims to undertake a thematic review of academic papers on financial technology (FinTech) to identify three broad categories for the purpose of classifying extant literature. The paper summarizes the research and findings in this emerging field. Thereafter, it identifies the gaps and provides directions for further research. Simultaneously, the paper collates technical terms related to FinTech that appear repeatedly in each category and explains them. Finally, the study highlights the lessons that growing FinTech firms and their regulators can learn from the experiences of their counterparts across the globe.

Design/methodology/approach

A systematic review of literature consisting of 130 studies (social science research network [SSRN]-29 papers, Scopus-81, other sources-20) on FinTech is carried out in this thematic paper.

Findings

This thematic paper divides FinTech into three themes, i.e. financial industry, innovation/technology and law/regulation. The paper suggests that a thorough impact of FinTech on various stakeholders can be understood using three dimensions, namely, consumers, market players and regulatory front. It is noted that FinTech is in its nascent phase and is undergoing continuous development and implementation through product and process innovation, disruption and transformation.

Research limitations/implications

The paper reports that FinTech promises huge potential for further study by various stakeholders in the FinTech industry – from academia to practitioners to regulators.

Practical implications

The paper summarizes lessons that could be of significance for FinTech users, producers, entrepreneurs, investors, policy designers and regulators.

Originality/value

The paper is believed to add value to the understanding of FinTech in light of the emerging threats and opportunities for its various stakeholders.

Details

Studies in Economics and Finance, vol. 37 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 20 August 2018

Manu Gupta and Puneet Prakash

This paper aims to study differences in risk behavior between holding companies that undertake both banking activity and insurance underwriting (labeled financial holding…

Abstract

Purpose

This paper aims to study differences in risk behavior between holding companies that undertake both banking activity and insurance underwriting (labeled financial holding companies or FHCs) and stand-alone bank holding companies (BHCs).

Design/methodology/approach

The paper examines the discretionary accruals of FHCs to comparable BHCs and compares their bad loans-to-assets ratio in the future.

Findings

FHCs have lower discretionary accruals (loan loss provisions and realized capital gains) than BHCs. FHCs fare better than BHCs in terms of bad loans-to-assets ratio. Insurance underwriting has a dampening effect on discretionary accruals of FHCs.

Research limitations/implications

This study raises additional research questions. Do shared governance and insurance underwriting serve as substitutes or complements? Will regulatory environment affect this relation?

Practical implications

When reported earnings do not match true earnings, the market participants lose the ability to price correctly, and the regulators lose the ability to effectively regulate banks. From the regulatory perspective, these findings suggest insurance underwriting by banks mitigate potential market distortions.

Originality/value

This paper is the first to study the effect of underwriting insurance risk on earnings management behavior of BHCs and its link to risk governance.

Details

The Journal of Risk Finance, vol. 19 no. 4
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 1 February 2022

Kewal Singh, Anoop Singh and Puneet Prakash

This paper aims to investigate the explanatory power of the Fama-French five-factor model and compares it to the other asset pricing models. In addition, the paper examines the…

Abstract

Purpose

This paper aims to investigate the explanatory power of the Fama-French five-factor model and compares it to the other asset pricing models. In addition, the paper examines the contributions of two additional factors: profitability and investment factor. The authors test the alternative four-factor models.

Design/methodology/approach

The authors use stock returns data of BSE-500 listed firms for the Indian market, an emerging market, from 1999 to 2020, thus covering the post-Asian crisis and pre- and post-financial crisis (2007–2008) periods. The authors employ 75 and 96 portfolios based on different factors. To check the performance of asset pricing models, the authors also used the GRS F-statistics and factor spanning tests.

Findings

The authors find that the five-factor model and alternative four-factor model outperform the three-factor model. Contrary to the findings for the US, but similar to the Chinese stock market, the value factor is significant for the Indian stock market. Simultaneously, the authors also find that the investment factor has no explanatory power in the presence of the profitability factor in their sample.

Originality/value

To the best of the authors' knowledge, this is the most comprehensive study using data more than two decades. These results are based on 75 (25 × 3) portfolios based on size, value, profitability and investment. The authors also tested these results based on 96 (32 × 3) portfolios to check robustness, and these results still hold. Furthermore, the authors find that factors based on 2 × 3 sorting have higher explanatory power than those based on 2 × 2 and 2 × 2 × 2 × 2 sorting.

Details

International Journal of Managerial Finance, vol. 19 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 18 June 2019

Seth A. Hoelscher

This paper aims to investigate the implications of governance quality on a firm’s information environment in the context of voluntary changes in hedging disclosures made by oil…

Abstract

Purpose

This paper aims to investigate the implications of governance quality on a firm’s information environment in the context of voluntary changes in hedging disclosures made by oil and gas companies.

Design/methodology/approach

The research utilizes a Factiva-guided search to hand-collect public disclosures related to changes in hedging policies along with the hand collection of financial derivatives positions and operational hedging contracts data using 10-K filings. The paper addresses self-selection bias, which typically plagues voluntary disclosure studies, by implementing a Heckman (1979) two-step model to estimate the decision process, make changes in their hedge program and, conditional on making changes to their hedging activities, provide disclosure.

Findings

Oil and gas firms with relatively poor governance are more likely to voluntarily disclose hedging changes and do so more frequently (substitution hypothesis). There is evidence that poorly governed firms in the presence of large shareholders (i.e. high institutional ownership) are more likely to provide transparency of hedging policy changes.

Originality/value

This is the first study to combine hand-collected changes in hedging voluntary disclosures and hand-collected derivative position data to investigate the interaction of corporate governance and voluntary disclosure. The sample allows for analysis between three sub-samples: companies that do not make changes in hedging and do not hedge, firms that make changes in their hedging policies but do not disclose the changes during a given year and companies that change their hedging activities and provide voluntary disclosure. This unique setting helps to alleviate concerns of self-selection bias associated with voluntary disclosure.

Details

Review of Accounting and Finance, vol. 19 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 20 October 2023

Line Lervik-Olsen, Tor Wallin Andreassen and Bob M. Fennis

Compulsive social media use has the potential to reduce well-being. In this study, the authors propose that there are two main paths to compulsive social media consumption. One is…

Abstract

Purpose

Compulsive social media use has the potential to reduce well-being. In this study, the authors propose that there are two main paths to compulsive social media consumption. One is behavioral and based on habit; the other is motivational and rooted in the fear of missing out. This study aims to test the antecedents of these two drivers as well as their consequences for the tendency to engage in compulsive social media consumption.

Design/methodology/approach

The authors applied a quantitative research design and collected data through a survey of 600 respondents from a representative sample. The authors used structural equation modeling to test their conceptual model and hypotheses. Gender and age were included as moderators to investigate the model’s boundary conditions.

Findings

The authors found support for all the suggested relationships in the conceptual model. The findings indicate two main manifestations of compulsive social media use – always being logged in (i.e. the frequency of social media consumption) and excessive use (the intensity of consumption) – that in turn spurred a reinforcer of compulsivity: disconnection anxiety. The findings also indicate two main paths to compulsive social media consumption. One path is behavioral, based on habit, and the other is motivational, based on fear of missing out. Moreover, the authors identified the key antecedents of both paths. Habit formation was observed to be a function of situational cues (technological nudges in the online sphere) and consumer engagement. Fear of missing out was shaped by both injunctive norms (a consumer norm to be online) and descriptive norms (social proof).

Research limitations/implications

Although the antecedents of compulsive social media consumption suggested in this study have a strong and significant effect, the explained variance in the dependent variables being always logged in and excessive social media use indicates that there might be other drivers as well. These should be explored along with moderators other than gender and age to identify the potential boundary conditions of the model.

Practical implications

The main implications of the present work point to the “ease” with which typical or normal social media use may spiral out of control and become compulsive, with adverse implications for consumer health and well-being.

Originality/value

The behavioral and motivational paths to compulsive social media consumption have been less explored and have not yet been studied in conjunction, nor have their antecedents and consequences. Thus, this is a novel approach to understanding how social media use can potentially lead to reduced control and well-being.

Details

European Journal of Marketing, vol. 58 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

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