Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Bücher
Zeitschriften
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
SLX-Digitalkonferenz: Zukunftswerkstatt 2024

Mehr Umsatz mit Top-Kontakten

Am 7. Mai erfahren Sie, wie Vertriebsteams Leadgenerierung, Leadnurturing und Leadstrategien effizient steuern können.
Erweiterte Suche
Anmelden
nach oben

2019 | Buch

Introduction: The Context of Financial Innovations Kapitel lesen Erstes Kapitel lesen

Individual Behaviors and Technologies for Financial Innovations

herausgegeben von: Wesley Mendes-Da-Silva

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Einloggen, um Zugang zu erhalten
insite
SUCHEN

Über dieses Buch

This book offers comprehensive examination of research on the relevance of individual behavior and technology to financial innovations. The chapters cover current topics in finance including integrated reporting, people finance, crowdfunding, and corporate networks. It provides readers with an organized starting point to explore individual behaviors and new technologies used in financial innovations. The explicit and growing speed of the spread of new technologies has hastened the emergence of innovation in the field of finance. Topics like the Internet of Things, semantic computing and big data finance are motivating the construction of financial tools that translate into new financial mechanisms. This book strives help readers better understand the dynamic of the changes in financial systems and the proliferation of financial products.
Individual Behaviors and Technologies for Financial Innovations is organized in 16 chapters, organized in three parts. Part I has eight chapters that review the research on gender differences in attitudes about risk and propensity to purchase automobile insurance, financial literacy models for college students, wellness and attitude of university students in the use of credit cards, impact of programs income distribution and propensity to remain in employment, financial literacy and propensity to resort to informal financing channels, risk behavior in the use of credit cards by students. Part II reviews the research on financing for startups and SMEs, exploring funding through crowdfunding platform, operating credit unions, and using networks of friends to finance small businesses outside the domestic market. The four chapters of Part III describe contexts of financial innovation in listed companies, including society's demands on their behavior - we discuss motivations for companies to participate in corporate sustainability indexes, corporate performance through their profile of socially responsible investments, influence of networks of social relations in the formation of boards, and management of companies, and also the precariousness of financial decisions in large companies, as well as the role of the internet in corporate communication with the market.

Inhaltsverzeichnis

Frontmatter

Financial Innovation in the Personal Level

Frontmatter
Chapter 1. Introduction: The Context of Financial Innovations
Abstract
The main function of the financial system is to facilitate the allocation of financial resources, distributing them well in terms of time and space within an uncertain context. In performing this function, the financial system permits the transfer of financial resources from savers to borrowers as well as the reduction of risk through insurance and diversification (Merton 1992). Since there are uncertainties involved in the future states of many resources, individuals can modify their behavior depending on their aversion to the risk that results from these uncertainties. However, these risks can frequently be addressed through financial instruments that satisfy the demands voiced by participants in the financial system. These financial instruments can contribute as much to the economy as the technologies that support them.
Wesley Mendes-Da-Silva
Chapter 2. Gender Differences and Automobile Insurance Acquisition
Abstract
This chapter examines the associations between driver gender, risk behavior when driving motor vehicles, and the inclination to acquire automobile insurance. To inform this investigation, a random survey was conducted of 566 middle-class adults. By using nonparametric tests and logit models, the results suggest that even when controlling for other variables, women feel a greater need than men to have automobile insurance in the event of possible accidents under rainy conditions and to have access to driver support services. Women also tend to have more respect for speed limits in various situations, such as during the rush hour, on local roads and on highways. The results also showed that men feel safer than women when driving in more precarious situations: at night, in unfamiliar areas, after drinking, or when they are tired. These results, while contributing to the theoretical development of road traffic and transportation safety, are of special relevance to the financial industry and the regulatory agency. The insurance industry may find these results particularly helpful in designing future policies and setting premiums.
Edimilson Costa Lucas, Wesley Mendes-Da-Silva, Angela Christine Lyons
Chapter 3. Economic Crisis and Saving Behavior
Abstract
This study used data from the Survey of Consumer Finances (SCF), 2007 and 2013, to examine the propensity to savings of American households in the pre- and post-economic crisis, based on the two-period consumption/savings model described by Bowman et al. (J Econ Behav Organ 38, 1999. https://​doi.​org/​10.​1016/​S0167-2681(99)00004-9). This model assumes that asymmetry occurs in agents’ savings behavior in response to positive and negative shocks in income. Results obtained by logistic regression suggest that the 2008 global financial crisis has increased the relevance of factors such as the number of children, age, education level, income, and economic uncertainty, while other factors have diminished in relevance such as equity, financial risk tolerance, investment horizon, health, and home ownership. Evidence suggests that events of the magnitude of the crisis may lead to changes in the financial behavior of agents that are not entirely explained by the financial impacts suffered. The information discussed in this study may allow financial professionals and educators to provide recommendations that are more geared to the economic and financial reality of their countries. In addition, the discussions promoted here may offer opportunities for advancement in the study of savings determination.
Israel José dos Santos Felipe
Chapter 4. A Financial Literacy Model for University Students
Abstract
Financial literacy, understood as the mastery of a set of knowledge, attitudes, and behaviors, has assumed a fundamental role in allowing and enabling people to make responsible decisions as they strive to attain financial well-being. In this context, the objective of this chapter is to build and compare models that assess university students’ financial literacy. To this end, models that integrate financial knowledge, behavior, and attitude are integrated. The models are subsequently estimated, and many comparative tests are performed. For an analysis of the collected data, structural equation modeling (SEM) was employed using two strategies. The findings indicate that, in the model estimation stage, the scales for behavior and attitude have been reduced. Among all of the models estimated, the best adjusted model indicates that financial knowledge and financial attitude have positive impacts on financial behavior. In practical terms, the financial behavior expresses the ability to establish long-term aims and savings aimed at future acquisitions and unexpected spending. This behavior is directly influenced by basic and advanced questions of financial knowledge and also by the importance attributed to attitude by establishing aims, control of spending and financial reserves.
Kelmara Mendes Vieira, Ani Caroline Grigion Potrich, Wesley Mendes-Da-Silva
Chapter 5. Credit Card and Financial Well-Being Among Females
Abstract
The literature documents the impact of credit card use on people’s financial well-being, including special interest in women’s credit card behavior. This chapter examines predictors of the financial well-being for female college students living in São Paulo City (Brazil) or New York City (United States), focusing upon behaviors regarding credit card use. The results of structural equation models, based on 784 participants, suggest that financial self-confidence and social comparison impact the respondents’ habits surrounding credit card use and, more largely, influence financial well-being. Although social comparison is more strongly predictive of credit card use among Brazilian women, credit card use behavior has a greater impact on the well-being of American women.
Danilo Braun Santos, Wesley Mendes-Da-Silva, Jill M. Norvilitis, Eduardo da Silva Flores
Chapter 6. Income Distribution and Duration of Poverty-Level Employment
Abstract
In this chapter we use microdata to examine employment duration for families receiving benefits from a distribution income. To achieve this goal, Cox proportional hazard models were used to estimate the job duration for program beneficiaries and non-beneficiaries, using a database of more than three million people. Our findings suggest that the risk of leaving work among beneficiaries of this program is 7–10% lower than the risk for non-beneficiaries. Parametric models were also adjusted to verify robustness, producing results equivalent to those of the Cox model. In all cases, program participation was observed through a covariate that varies over time, extracted directly from the program’s payment records. These results are relevant for the definition of public policies regarding the risk of the income level of poor families, as well as for the financial industry, as it offers relevant empirical evidence for the design of new financial products.
Danilo Braun Santos, Alexandre Ribeiro Leichsenring, Naercio Aquino Menezes Filho, Wesley Mendes-Da-Silva
Chapter 7. Financial Literacy and Informal Loan
Abstract
The finance literature documents associations between family financial literacy and their propensity to borrow. However, there is a predominance of studies that focus exclusively on formal loan markets. In this chapter, based on 2023 observations about financial behavior of families, we examined the impacts of financial literacy on borrowing in informal markets, such as loans obtained from friends or acquaintances or even moneylenders. Using multinomial logit models, we measured the effects of financial literacy on the propensity to take informal loans, comparing two groups: families that did not take any type of loan and those took bank loans. The proxy adopted for the level of financial literacy is the consumption of a particular financial product called capitalization bond. The results suggest that financial literacy may have greater relevance in the propensity for informal loans compared to the formal credit constraint.
Danilo Braun Santos, Wesley Mendes-Da-Silva, Lauro Gonzalez
Chapter 8. Credit Card Risk Behavior in a High Interest Rate Context
Abstract
College students frequently exhibit little skill for using credit cards in a responsible manner. This chapter examines this issue in an emerging market and in a pioneering manner. University students (n = 769), in a high interest rate context, replied to a questionnaire about their habits in credit card use. Logit models revealed associations between personal characteristics and credit card use habits that reflect financially risky behavior. The main results show (i) a larger number of credit cards increase the probability of risk behavior and (ii) those students who alleged awareness of the card’s interest rates were less inclined to engage in risk behavior. These results might prove informative to the financial industry as well as university managers and policymakers. This chapter points to the advisability, indeed necessity, to inform students on responsible use of financial products (notably credit cards) emphasizing the associated high interest rates. The findings regarding student behavior for credit card usage in emerging economies are both significant and relevant. Furthermore, financial literature, while stressing the importance of the topic, has not significantly examined emerging economies.
Wesley Mendes-Da-Silva

Financial Innovation in the Small Business Level

Frontmatter
Chapter 9. Geographic Distance and Reward Crowdfunding Donation
Abstract
This chapter describes the analysis of a large crowdfunding platform to examine pledges to music production projects and assess the relation between the fundraising accumulation period, the donor-entrepreneur distance, and the donors’ propensity to back projects. Our results suggest a significantly negative association between distance and the value of capital pledged to projects, which is consistent with the notion that the entrepreneur’s network of close contacts might play a central role in funding. Furthermore, our results contradict the idea that crowdfunding reduces the inhibiting effect of donor-entrepreneur distance. In addition, the results show that a long project exposure is associated with higher values of pledges. These results suggest practical implications for the study of crowdfunding as a financing platform. This study contributes to the literature on the use of crowdfunding as an alternative funding source in a major emerging market.
Wesley Mendes-Da-Silva, Luciano Rossoni, Eduardo Francisco, Cristiane C. Gattaz
Chapter 10. Informal Financing of Chinese Entrepreneurs in a Western Environment
Abstract
This chapter discusses the impact of guanxi on the capacity of small- and medium-sized businesses accessing informal financial resources. Entrepreneurs starting a business outside their country of origin can face barriers in accessing capital, customers, or suppliers. Guanxi facilitates interaction between companies and people in Confucianist societies, including when they emigrate to other nations. Does this type of social construct still play the key role, when Confucian entrepreneurs live in Western societies? Based on interviews with Chinese entrepreneurs active in the principal business center of Brazil and nonparametric test data, our results suggest that different levels of guanxi allow SME businesses to access informal financial resources; the entrepreneur’s different levels of guanxi, in terms of parental and nonfamily ties, influence the types of informal financing that might be available; unlike the Western literature on the financial cycles of start-ups, this type of informal financing can extend beyond the initial stage of the business; and finally, an entrepreneur’s lack of speaking the local language presents a barrier for Chinese entrepreneurs to access formal bank loans.
Wesley Mendes-Da-Silva
Chapter 11. Diversification and Performance of Credit Unions
Abstract
This chapter evaluates the impact of revenue diversification with expanding products and services upon the financial performance of credit unions. The diversification effect on credit union performance was verified through dynamic panel data models estimated by two-stage system Generalized Method of Moments. Semiannual information (spanning 2009 to 2014) of 525 unique credit unions informed the study. The analysis revealed that nine models estimated with proxies for performance based on profitability indicators showed that diversification does not affect the return of credit unions. However, in three other models, using the growth of adjusted shareholders’ equity as a proxy for performance, it was possible to capture the effects of the diversification of revenues. These divergent results may indicate that credit union diversification strategies do not aim to increase dividends or profitability. But it may also suggest that this strategy helps cooperatives meet primary obligations by providing extra resources, maintaining their financial market positions, or even their survival.
Laís Karlina Vieira, Valéria Gama Fully Bressan, Aureliano Angel Bressan
Chapter 12. Transactions Among Friends
Abstract
This chapter addresses the inclusion of human behavioral aspects and implications of cognitive psychology and anthropology in decisions relating to the field of behavioral finance. It offers a broad literature review toward identifying opportunities for financial innovations that are based on the notion of friendship. This chapter also presents and discusses empirical results from two evidence-based studies, referencing 400 questionnaires answered by young adults. Principal results suggest that individuals assume different behaviors in transactions among friends rather than among strangers—friends agree about the price attributed to an asset, while strangers show the propensity to bargain. In addition, agents acting on behalf of a friend appear to devote more enforcement, even if they are not receiving any reward or are being monitored.
Wesley Mendes-Da-Silva

Financial Innovation in the Corporate Level

Frontmatter
Chapter 13. Corporate Sustainability, Capital Markets, and ESG Performance
Abstract
This chapter discusses associations between the financial profile of a firm and superior environmental, social, and governance (ESG) performance, considering firms from Brazil, Russia, India, China, and South Africa (the so-called BRICS countries). In particular, the study analyzes ESG performance in sensitive industries, i.e., those subject to systematic social taboos, moral debates, and political pressures and those that are more likely to cause social and environmental damage. We applied linear regressions with a data panel collected from 365 listed companies between 2010 and 2012. Our results suggest the market capitalization as the main predictor of ESG performance. In general, larger companies have higher levels of performance. We also found that companies in sensitive industries present superior environmental performance even when controlling for size and country. Our conclusions provide insights for future studies around ESG performance.
Alexandre S. Garcia, Wesley Mendes-Da-Silva, Renato J. Orsato
Chapter 14. Board of Directors and Corporate Networks
Abstract
Social network analysis (SNA) is an emerging research field in finance. This chapter references SNA and knowledge of corporate governance, to deal with a similarly emerging topic in finance, board interlocking, and shall examine the validity of the small-world model in a relevant emerging market and the existence of associations between the firm’s worth and its network of corporate relationships. This study references official data relating to more than 400 listed companies. The main results suggest that the network configuration of the relationships between board members and companies reflects the small-world model. Furthermore, there seems to be a significant relationship between the firm’s worth and its network centrality, described according to an “inverted U” type curve, which suggests optimum values exist for social prominence in the corporate network.
Wesley Mendes-Da-Silva
Chapter 15. Corporate Disclosure via the Internet and Implied Cost of Capital
Abstract
The classical literature of finance establishes arguments that emphasize the negative impact of corporate transparency on the level of return required by investors, or the cost of capital of the firm. However, even as the growing sophistication of technologies at the disposal of listed companies, the corporative communication with its stakeholders is still predominantly supported in the technological device that precedes the Internet. Therefore, this chapter discusses the relationship between voluntary disclosure via corporate websites and the implied cost of equity capital of listed companies. Based on data from more than 300 companies, our main results are three. First, on average, the companies listed on the New Market showed a lower cost of capital. Second, the companies deemed to be the most aggressive showed a higher cost of capital (≈3% points higher than the conservative companies. Third, the metrics of corporate website disclosure did not appear to be related to cost of capital.
Wesley Mendes-Da-Silva, Daniel Reed Bergmann
Chapter 16. Stock Exchange Listing and Capital Budgeting Practices
Abstract
This chapter compares capital budgeting techniques employed in listed and unlisted companies. We surveyed the chief financial officers (CFOs) of 398 listed companies and 300 large unlisted companies, and based on 91 respondents, the results suggest that the CFOs of listed companies tend to use less simplistic methods more often, for example: NPV and CAPM; while CFOs of unlisted companies are less likely to estimate the cost of equity, despite being large companies. These findings indicate that stock exchange listings may require greater sophistication of the capital budgeting process.
Wesley Mendes-Da-Silva, Richard Saito
Backmatter
Metadaten
Titel
Individual Behaviors and Technologies for Financial Innovations
herausgegeben von
Wesley Mendes-Da-Silva
Copyright-Jahr
2019
Verlag
Springer International Publishing
Electronic ISBN
978-3-319-91911-9
Print ISBN
978-3-319-91910-2
DOI
https://doi.org/10.1007/978-3-319-91911-9

Premium Partner

    Bildnachweise