Synthesizing an Index of Financial Literacy Using Not-For-Purpose Survey Data

2017 ◽  
Vol 47 (2-3) ◽  
pp. 331-352 ◽  
Author(s):  
Tracey West ◽  
Andrew C. Worthington
Keyword(s):  
Survey Data ◽  
Financial Literacy

Financial exclusion and financial capabilities in Canada

2016 ◽  
Vol 8 (2) ◽  
pp. 212-227 ◽  
Author(s):  
Laura Lamb
Keyword(s):  
Survey Data ◽  
Financial Literacy ◽  
Financial Services ◽  
Conclusive Evidence ◽  
Exploratory Research ◽  
Financial Capability ◽  
Content Type ◽  
Financial Exclusion ◽  
Canadian City ◽  
The Relationship

Purpose The financially excluded are often denied basic financial services from mainstream banking institutions, leading them to high-cost fringe finance institutions (FFIs) such as payday loan companies and pawnshops. While strategies to address financial exclusion often include financial capabilities education, there does not appear to be evidence suggesting such education is an appropriate solution. The purpose of this study is to explore the relationship between financial capability and financial exclusion with survey data collected from the Canadian city of Kamloops located in the southern interior of British Columbia. Design/methodology/approach This exploratory research addresses the objective with survey data collected on the banking habits and financial capability levels of fringe finance users in a Canadian city. Findings The results imply that fringe finance users do not have lower levels of financial capability than those who do not use fringe finance, when education and income are controlled. Research limitations/implications Limitations include the relatively small survey sample of 105 people in one urban center in Canada. Originality/value While financial literacy is acknowledged to be an important life skill for all members of society, there is no conclusive evidence suggesting it is a solution to financial exclusion. This is the first research to examine the relationship between financial exclusion and fringe finance use in Canada by collecting data on fringe finance users with face-to-face interviews.

Trust and financial advice

2019 ◽  
Vol 20 (1) ◽  
pp. 9-26 ◽  
Author(s):  
Jeremy Burke ◽  
Angela A. Hung
Keyword(s):  
Survey Data ◽  
Financial Literacy ◽  
Demographic Characteristics ◽  
Important Predictor ◽  
Financial Advice ◽  
American Life ◽  
Advisory Services ◽  
And Behaviors ◽  
To Receive

AbstractWe explore the relationships between financial trust and behaviors, attitudes, knowledge, and preferences related to utilizing professional financial advice. Using survey data from the RAND American Life Panel, we find that financial trust is correlated with advice usage and likelihood of seeking advisory services. Leveraging an experiment that randomized provision of and access to advice, we find that trust is an important predictor of who chooses to receive advice, even after controlling for demographic characteristics and financial literacy. However, providing unsolicited advice has little impact on behavior, even for individuals with high levels of trust.

The performance generating limitations of the relationship-banking model in the digital era – effects of customers' trust, satisfaction, and loyalty on client-level performance

2020 ◽  
Vol 38 (4) ◽  
pp. 889-916
Author(s):  
Kent Eriksson ◽  
Cecilia Hermansson ◽  
Sara Jonsson
Keyword(s):  
Survey Data ◽  
Financial Literacy ◽  
Risk Tolerance ◽  
Equation Modeling ◽  
Relationship Banking ◽  
Actual Performance ◽  
Content Type ◽  
Positive Direct ◽  
The Relationship ◽  
Level Performance

PurposeThis paper investigates the viability of the relationship-oriented business model. Specifically, it examines the effects of bank customers' satisfaction, loyalty, and trust in bank advisors on two client-level performance measures; client-level non-interest revenue, and client-level revenue on net interest spread. It further investigates how effects are moderated by differences in clients' risk tolerance and financial literacy.Design/methodology/approachThe findings are based on analyses of a data set that combines survey data (collected from 13,525 bank clients in 2013) with bank record data from each respondent. The cross sectional data is analyzed using OLS-regression and structural equation modeling.FindingsOverall, the findings are that the relationship banking model generates non-interest revenue, but not revenue on net interest spread. In more detail, findings show that trust has a positive direct effect on client-level non-interest revenue. Furthermore, trust mediates the entire effect of satisfaction and loyalty on client-level non-interest revenue. Customer satisfaction and loyalty do not lead to enhanced client-level non-interest revenue if there is little trust in bank advisors. Findings further show that the relevance of trust for non-interest revenue is higher for clients with high risk tolerance and high financial literacy. Satisfaction, loyalty, and trust have no effect, however, on client-level revenue on net interest spread.Originality/valueWhile previous literature mainly has used subjective intentions (e.g., repurchase behavior) as operationalization of performance, this paper combines subjective survey data and objective performance data, allowing the investigation of how the customer relationship model affects actual performance. Furthermore, the paper investigates the relational banking model's effect on non-interest and net interest spread revenue, and we show that the relational banking model generates only non-interest revenue, and not net interest spread revenue. The fine-grained client-level data also allows the investigation on how the effect of trust on client-level performance differs among client groups with different cognitive characteristics (i.e., risk tolerance and financial literacy).

FINANCIAL LITERACY AND STOCK MARKET PARTICIPATION: DOES GENDER MATTER?

2020 ◽  
pp. 1-20
Author(s):  
IRFAN ULLAH MUNIR ◽  
SHEN YUE ◽  
MUHAMMAD SHAHZAD IJAZ ◽  
SAAD HUSSAIN ◽  
SYEDA YUMNA ZAIDI
Keyword(s):  
Stock Market ◽  
Survey Data ◽  
Gender Gap ◽  
Financial Literacy ◽  
Discriminant Validity ◽  
Well Being ◽  
Policy Implications ◽  
Market Participation ◽  
Cross Sectional ◽  
Stock Market Participation

In recent years, financial literacy has attracted much attention in the field of household finance as individuals have become more concerned about their financial well-being. Besides, financial products have become more complex over the years. Therefore, financial literacy has become crucial for financial decision making and has received the attention of policymakers, researchers and regulatory bodies. This study investigates the cross-sectional heterogeneity on the relationship between financial literacy and stock market participation in an emerging economy, particularly Pakistan. This study uses the survey data of the 300 individuals residing in Islamabad. Exploratory factor analysis is used to assess convergent and discriminant validity of the survey data. Results are estimated using logistic regression. Results of this study show that individuals with higher levels of financial literacy tend to participate more in the stock market. This study also finds the support for gender gap on the financial literacy and participation in the stock market. Further, it is observed that age, qualification and income are positively associated with stock market participation. In the end, the conclusion of the study is given along with significant policy implications.

scholarly journals Retirement Financial Behaviour: How Important Is Being Financially Literate?

2020 ◽  
Vol 43 (3) ◽  
pp. 543-564 ◽  
Author(s):  
J. C. Hauff ◽  
A. Carlander ◽  
T. Gärling ◽  
G. Nicolini
Keyword(s):  
Life Cycle ◽  
Item Response Theory ◽  
Item Response ◽  
Survey Data ◽  
Financial Literacy ◽  
Representative Sample ◽  
Investment Management ◽  
Response Theory ◽  
Financial Behaviour

AbstractUsing Item Response Theory to analyse survey data from a representative sample of 551 Swedish citizens, a new 16-question measure of fact-based financial literacy is developed and validated. Uni-dimensionality of the measure is verified, and expected correlations are observed with an existing measure of fact-based financial literacy, a measure of subjective financial literacy or confidence, and age, gender, and income. A significant impact of fact-based and subjective financial literacy are found on three time-ordered stages of individuals’ retirement behaviour: planning, saving, and investment management. It is concluded that policies increasing final literacy are important in different phases of the life cycle.

scholarly journals Corporate share repurchases in the UK

2016 ◽  
Vol 17 (3) ◽  
pp. 331-355 ◽  
Author(s):  
Alpa Dhanani
Keyword(s):  
Income Distribution ◽  
Survey Data ◽  
Financial Literacy ◽  
Univariate Analysis ◽  
Value Added ◽  
Content Type ◽  
Dividend Payments ◽  
Secondary Information ◽  
Private Investors ◽  
The Uk

Purpose The purpose of this paper is to examine motivations underlying UK repurchase activity. Specifically, the paper inquires into the relevance of a range of different explanations for repurchases and perceptions of regulation surrounding them. Emphasis of the paper is, however, on motives linked specifically to repurchases rather than income distribution, more generally. Design/methodology/approach The study uses a survey approach to capture the views on repurchases of corporate managers and investors. It supplements the survey data with secondary information about the companies to better understand repurchase behaviour. Findings Results indicate that repurchase use is influenced by motives linked specifically to this tool rather than those associated with income distribution, more generally. In particular, repurchases are used to return surplus cash to investors, signal undervaluation and influence gearing and earnings per share levels. In the latter case, companies appear to use repurchases to perform a value added role, alongside manipulating the EPS level and thus the latter may simply be a by-product of the former. Private investors may nevertheless be vulnerable to such manipulation, given their limited financial literacy. Research limitations/implications The study relied on a survey of managers and investors and univariate analysis. In the former case, respondent numbers, particularly for the investor community were low, raising questions as to the generalisability of the data. In the latter, the results may be mis-stated owing to the simplicity of the analysis. Practical implications Overall, the survey results suggest that firms use repurchase programmes in different contexts to dividend payments and in appropriate circumstances. While managers and investors broadly share similar views, private shareholders may be in a vulnerable position given their limited financial literacy. Originality/value This is the first UK study on repurchases that examines the relative importance of a range of motives underlying repurchases. Moreover, it assesses in detail the core hypotheses that are linked specifically to repurchase programmes to better understand UK repurchase behaviour. It does so by supplementing the survey data with additional company information and comparing the views of the different audiences surveyed.

Financial literacy and financial capability: definitions, measurement methods, and analysis in the case of Russia

2015 ◽  
pp. 129-148 ◽  
Author(s):  
O. Kuzina
Keyword(s):  
Survey Data ◽  
Financial Literacy ◽  
Measurement Methods ◽  
Trust Fund ◽  
Financial Capability ◽  
Time Horizons ◽  
Country Comparison ◽  
Lack Of Control ◽  
Cross Country

The main purpose of the study is to assess the level of financial capability of Russians by using the methodology of cross country comparison developed by the Russia Financial Literacy and Education Trust Fund. The paper gives a brief description of the methodology of financial literacy and financial capability measurements, as well as the results of the survey in Russia. From the analysis of the survey data, it is concluded that the weak areas of the financial capability of Russians concern issues related to planning of expenses and keeping these plans completed, creating reserves to pay for major planned or unexpected expenditures, lack of control over money spent using written records of incomes and expenses, developing regular saving habits, and lengthening time horizons.

Financial Socialization, Financial Literacy, and Financial Behavior of Adults in New Zealand

2020 ◽  
Vol 31 (2) ◽  
pp. 313-329
Author(s):  
Rashid Ameer ◽  
Robert Khan
Keyword(s):  
New Zealand ◽  
Survey Data ◽  
Financial Literacy ◽  
Financial Behavior ◽  
Financial Socialization ◽  
Adult Males ◽  
Cross Sectional ◽  
Financial Behaviors ◽  
Adult Females ◽  
Personal Finances

We used survey data from a cross-sectional New Zealand sample of adults to examine whether financial socialization and financial literacy are associated with their financial behavior. The results show different financial socialization experiences of adult males compared to adult females are associated with higher financial literacy and higher financial confidence. Adults with education in finance and economics had higher financial literacy and financial confidence in managing their personal finances. Furthermore, those with high self-assessed confidence in managing personal finance but low financial literacy, have a higher propensity to engage in undesirable financial behaviors.

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