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1 – 10 of 156Research shows that having student loan debt in retirement is associated negatively with life satisfaction, suggesting that student debt is a bane of retiree well-being. The…
Abstract
Purpose
Research shows that having student loan debt in retirement is associated negatively with life satisfaction, suggesting that student debt is a bane of retiree well-being. The rationale for this study is to determine the factors related to owing student debt in retirement, given the adverse effects on the well-being of retired households.
Design/methodology/approach
The study utilizes pooled cross-sectional data from the 2015 and 2018 U.S. National Financial Capability Study. The empirical analysis uses a sample of retired Americans aged 65 years and older (N = approximately 8,000) and estimates two-block logistic regression models to examine the effects of demographic, socioeconomic and behavioral factors on student loan indebtedness in retirement. A sensitivity analysis is performed for the subsample of retirees holding student debt for their children's education. Statistical interpretations use odds ratios.
Findings
The findings indicate that financial literacy, age, homeownership and high subjective financial knowledge are associated with a low likelihood of holding student loan debt in retirement. However, being Black, having postsecondary education, having difficulty covering expenses, having financially dependent children, having high-risk preferences and spending more than income increase the likelihood of holding student debt in retirement. The ensuing discussion will assist financial planners and educators identify practical ways to shape decisions regarding student loan debt in retirement.
Research limitations/implications
The amount of student loan debt is unavailable in the dataset for analysis. One cannot infer causal relations from the study. The factors examined do not reflect the time the student loan was obtained.
Originality/value
The study focuses on the determinants of student loan indebtedness among retired Americans rather than young adults or older adults on the verge of retirement. The paper enhances the understanding of student loan holdings in the decumulation phase of the life cycle. Many US individuals have low retirement savings from which they draw a retirement income. The more the student debt burdens on retired Americans, the greater the likelihood of outliving their resources and experiencing poverty.
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This paper highlights the need for studies that explore the experiences of entrepreneurs based in a family business setting who are considering retirement.
Abstract
Purpose
This paper highlights the need for studies that explore the experiences of entrepreneurs based in a family business setting who are considering retirement.
Design/methodology/approach
This paper is based on a concise review of the literature.
Findings
Retirement planning and subsequent succession management is a significant event in a family business and is an issue that requires research that captures and interprets the perspectives of the different stakeholders.
Originality/value
This paper synthesizes existing research on retirement in an entrepreneurial context, with an emphasis on family business and proposes three key areas of research.
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Kwadwo Opoku, George Domfe and Emmanuel Adu Boahen
The purpose of this paper is to examine the prevalence of labour force participation and the factors affecting labour supply among older persons in Ghana. Both the extensive and…
Abstract
Purpose
The purpose of this paper is to examine the prevalence of labour force participation and the factors affecting labour supply among older persons in Ghana. Both the extensive and intensive margins of older persons’ labour supply were analysed.
Design/methodology/approach
The paper uses nationally representative samples of household and individual data in 2016–2017 – Ghana Living Standard Survey (GLSS 7) data – for the analysis. Heckman’s sample selection model is used to analyse both the extensive and intensive margins of older persons’ labour supply.
Findings
The study found that older persons in Ghana who are pensioners, widowed, have high levels of education, poor health status and live in urban areas are less likely to participate actively in the labour market. On the other hand, being head of a household, married and owning certain assets increase the likelihood of an older person to work. Furthermore, pensions, household headship and post-secondary education have negative effects on the labour supply as having them make older persons work fewer hours per week compared to their counterparts.
Originality/value
This research is the first study to examine the prevalence of old age employment and factors that affect labour market decisions of older persons in Ghana. It also adds to the limited literature on pension and retirement decisions in developing countries.
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Seyed Hadi Arabi, Mohammad Hasan Maleki and Hamed Ansari
The purpose of this study is to identify the drivers and future scenarios of Iran’s Social Security Organization.
Abstract
Purpose
The purpose of this study is to identify the drivers and future scenarios of Iran’s Social Security Organization.
Design/methodology/approach
The research is applied in terms of orientation and mixed in terms of methodology. In this research, the methods of theme analysis, root definitions, fuzzy Delphi and Cocoso were used. The theoretical population is the managers and senior experts of the social security organization, and the sampling method was done in a judgmental way. The tools of data collection were interviews and questionnaires. The interview tool was used to extract the main and subdrivers of the research and develop the scenarios.
Findings
Through theme analysis, 35 subdrivers were extracted in the form of economic, sociocultural, financial and investment, policy, marketing, environmental and legal themes. Due to the large number of subdrivers, these factors were screened with fuzzy Delphi. Eleven drivers had defuzzied coefficient higher than 0.7 and were selected for final prioritization. The final drivers were prioritized with the CoCoSo technique, and the two drivers of social security holdings governance and state of government revenues had the highest priority. Based on these two drivers, four scenarios of prosperity, resilient social security, unstable development and collapse have been developed.
Originality/value
Some of the suggestions of the research are: using the capacity of FinTechs and financial startups to invest the government revenues of the organization, using digital technologies such as business intelligence for more efficient decisions and developing corporate governance in the organization.
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Eley Suzana Kasim, Noor Rohin Awalludin, Nurazilah Zainal, Allezawati Ismail and Nurul Huda Ahmad Shukri
This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.
Abstract
Purpose
This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.
Design/methodology/approach
Using a questionnaire survey, data was distributed to 200 retirees. A total of 53 responses were obtained. The data was subsequently analysed using PLS-SEM version 3 software.
Findings
Findings indicated that while financial literacy has a significant influence on awareness, there is no conclusive evidence to support the relationship between financial behaviour and financial stress on awareness. These results highlighted the critical need to strengthen financial literacy among retirees as a prevention mechanism for them to avoid from being scammed.
Research limitations/implications
The finding from this study is relevant to regulators and law enforcement agencies to aid potential and actual retirees by educating them on the danger of investment scams.
Originality/value
As there are relatively few studies conducted on investment scams specifically among retirees, this study extends the investment scam literature by examining the underlying factors that affect their awareness towards the fraudulent activities.
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This paper evaluates the risk-adjusted returns, selectivity, market timing skills and persistence of the performance of Nigerian pension funds.
Abstract
Purpose
This paper evaluates the risk-adjusted returns, selectivity, market timing skills and persistence of the performance of Nigerian pension funds.
Design/methodology/approach
Annual return data of 23 pension funds that operated in Nigeria between 2018 and 2022 were obtained from the National Pension Commission (PenCom). Risk-adjusted return was appraised using the Treynor ratio, Sharpe ratio and Jensen alpha, while the Treynor–Mazuy and Henriksson–Merton multiple regression models were applied to decompose selective and timing skills. Performance persistence was assessed using the contingency table and rank correlation models.
Findings
Evidence shows that pension funds deliver excess risk-adjusted returns and exhibit selective skills. However, the evidence does not support the presence of timing skills, and there is overwhelming evidence that good (bad) performance does not repeat.
Practical implications
An evaluation of the investment performance of pension funds is crucial for ensuring the financial stability of retirees, maintaining economic stability and making informed investment decisions. It serves the interests of pensioners, pension fund managers, regulators and the broader economy. Our evidence that pension funds generate positive excess returns is a departure from most of the literature on managed funds. We recommend that more Nigerians should leverage the pension fund industry to grow their wealth and prepare for retirement.
Originality/value
This study, to our knowledge, is the first to appraise all the key facets of the investment performance of pension funds in the Nigerian context.
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Introduction: The Republic of Moldova’s economy faces risks caused by the war in Ukraine and the economic crisis, proving that citizens’ prosperity is essential for national…
Abstract
Introduction: The Republic of Moldova’s economy faces risks caused by the war in Ukraine and the economic crisis, proving that citizens’ prosperity is essential for national stability and that financial knowledge influences the standard of living. A minimum financial education provides information, knowledge, and tools to make correct decisions based on informed consent in an increasingly complex financial system. In the financial-banking and academic environment, in-depth research of consumers’ financial education level helps to optimise, streamline, and balance bank–client relations with fairness. This work is the consequence of studying the level of financial education among consumers of financial-banking services, with direct implications for their financial well-being.
Purpose: The main aim of this research is to measure the financial knowledge of consumers of financial-banking services, developing recommendations for measures to improve the situation.
Methodology: To explain the factors of influence, the following research techniques were used: analysis and synthesis of conceptual approaches to financial education; deduction and induction; analysis of the findings of sociological research on the level of financial education of users of financial-banking services; and recommendation synthesis.
Findings: The research validates that enhancing financial education has a positive effect on individuals and the economy, reinstates confidence in financial markets, makes an innovative contribution to accurately assessing consumers’ financial knowledge enabling the implementation of proactive measures.
Implications: This chapter provides insights into consumers’ financial education level, serving as a crucial indicator for institutions and public authorities in formulating and promoting effective educational initiatives to ensure minimal skill gaps.
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Shan Lei and Ani Manakyan Mathers
This study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal…
Abstract
Purpose
This study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal characteristics.
Design/methodology/approach
Using the 2019 Survey of Consumer Finances, the authors utilize an ordinary least squares regression to identify the presence of endowment bias and home bias in individual investors' direct stock holdings and use a Heckman selection model to examine determinants of the extent of endowment bias and home bias.
Findings
This study finds that investors with higher income and more education, men, non-white investors and people with greater risk tolerance are actually at a greater risk of endowment bias. This study also identifies a profile of investors that are more likely to have a home bias: with less financial sophistication, lower net worth, older, female, more risk-averse, with a positive expectation about the domestic economy and a relatively shorter investment horizon.
Originality/value
This paper is among the first to use US investors' directly reported stock holdings to examine the individual characteristics that are correlated with greater familiarity bias, providing financial professionals with information about how to allocate their limited time in providing education to a variety of clients.
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Comfort foods consumption and linkages to stress coping strategies have received little attention in the business research on food products and services. This paper aims to…
Abstract
Purpose
Comfort foods consumption and linkages to stress coping strategies have received little attention in the business research on food products and services. This paper aims to explore comfort foods consumption among older Americans and how stress-coping strategies are related to their consumption frequency and variety of comfort foods.
Design/methodology/approach
Older Americans aged 50–99 years (N = 1,428) in the Health and Retirement Study were surveyed on their frequency and variety of comfort foods consumption and their consumption coping strategies. Data were analyzed and regression models were estimated.
Findings
Demographically, baby boomer, male, and non-Hispanic whites reported higher frequency and variety of comfort foods consumption. Comfort foods consumption in frequency and variety was significantly higher (lower) when “eat more” (“use alcohol”) was the endorsed coping strategy.
Originality/value
Research findings furthered research on the consumption of comfort foods among older American adults and added new insights into their coping behavior, both of which may help businesses be more targeted in serving comfort foods to the mature market and the public sector to tailor their services to older adults.
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Issam Tlemsani, Mohamed Ashmel Mohamed Hashim and Robin Matthews
This study aims to examine the implementation of International Financial Reporting Standards (IFRS) in Saudi Arabia. It investigates how the adoption of IFRS has affected four…
Abstract
Purpose
This study aims to examine the implementation of International Financial Reporting Standards (IFRS) in Saudi Arabia. It investigates how the adoption of IFRS has affected four critical areas in the financial statements of publicly listed companies: profit and loss statement, balance sheet, cash flow statement and retained equity statement in Saudi Arabia. The paper also explores the essential factors/drivers that influence the adoption of IFRS and its implication in Saudi Arabia.
Design/methodology/approach
Data was obtained from Saudi Stock Exchange (Tadawul) listed companies from eleven industries in Saudi Arabia. This cross-sectional study analyses critical financial data across eleven distinctive industries. To identify the impact of adopting IFRS, the researchers use a paired t-test to evaluate seven key elements of financial statements underlying the critical areas: non-current asset, current asset, total assets, shareholders equity, non-current liability, current liability and total liability. The sample captures cross-sectional data from well-developed global industries in Saudi Arabia, pre- and post-implementation of IFRS. Thus, the analysis of the sample data gives a representative picture of the population of the Saudi Arabian industry.
Findings
The results reveal significant differences between GAAP and IFRS reporting standards in the measurement, recognition and classification of non-current assets and liabilities. The differences are expressed in the variance between the GAAP and IFRS. Specifically, the differences between GAAP and IFRS demonstrated by the t-value are significant and reliable (respectively, 5.3 and 4.1). Additionally, the t-value is validated by the p-value, which in both was significant.
Research limitations/implications
The outcomes of this research will benefit accounting information users, practitioners, researchers and regulators. Since Saudi Arabia’s policymakers have mandated the full adoption of IFRS in financial reporting, the study contributes to the adoption of IFRS practices throughout the Saudi industry. Adopting full IFRS standards requires widespread IFRS expertise to cope with the transition.
Originality/value
This study advances research into the perennial issues associated with changes in reporting towards IFRS standards, especially in Saudi Arabia. The contribution to theory and practice enters new and fruitful areas.
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