Abstract: Men and women have different approaches towards investing, both in terms of strategies and risk attitudes. This study aims to focus mainly on investigating the financial risk behaviors of Arab women investors and to examine the financial risk tolerance levels of Arab women relative to Arab men investors. Using survey data on 547 Arab men and women investors, the results of Wilcoxon Signed-Rank (One-Sample) test Mann-Whitney U test reveal that Arab women are risk-averse investors and have lower financial risk tolerance levels relative to Arab men. Such findings can be explained by the fact of women's nature and lower investment literacy levels. Further, the current political uncertainty in the Arab region may be considered as another explanation of Arab women’s risk aversion behavior. The study's findings support the existing literature by validating the stereotype of “women are more risk-averse than men” in the Arab region. Overall, when it comes to investment and financial behaviors, women around the world behave similarly.
Abstract: A crucial component to the success of any financial advising relationship is for the financial professional to understand the perceptions, preferences and thought-processes carried by the financial clients they serve. Armed with this information, financial professionals are more quickly able to understand how they can tailor their approach to best match the individual preferences and needs of each personal investor. Our research explores the use of a quantitative assessment tool in the financial services industry to assist in the identification of the personal investor’s consumer behaviors, especially in terms of financial risk tolerance, as it relates to their financial decision making. Through this process, the Unitifi Consumer Insight Tool (UCIT) was created and refined to capture and categorize personal investor financial behavioral categories and the financial personality tendencies of individuals prior to the initiation of a financial advisement relationship. This paper discusses the use of this tool to place individuals in one of four behavior-based financial risk tolerance categories. Our discoveries and research were aided through administration of a web-based survey to a group of over 1,000 individuals. Our findings indicate that it is possible to use a quantitative assessment tool to assist in predicting the behavioral tendencies of personal consumers when faced with consumer financial risk and decisions.
Abstract: Financial literacy is a widely discussed topic on the
national and international level by governments, organizations and
academia. For this reason, this study analyses financial knowledge,
financial behavior, and financial attitudes of students of finance. The
aim of the paper is to determine whether the financial literacy of
university students studying finance differs from the level of financial
literacy in selected OECD countries. The research was conducted at
Masaryk University in the Czech Republic. The empirical study
comprises questions related to several aspects of financial literacy,
such as financial knowledge, personal finance behavior, or decisionmaking.
The results indicate that improvement in financial literacy of
university students is still required, even though their major is finance
related.
Abstract: Reduction of energy consumption in built
infrastructure, through the installation of energy-efficient
technologies, is a major approach to achieving sustainability. In
practice, the viability of energy efficiency projects strongly depends
on the cost reimbursement and profitability. These projects are
subject to failure if the actual cost savings do not reimburse the
project cost promptly. In such cases, refinancing could be a solution
to benefit from the long-term returns of the project, if implemented
wisely. However, very little is still known about the effect of
refinancing options on financial performance of energy efficiency
projects. In order to fill this gap, the present study investigates the
financial behavior of energy efficiency projects with focus on
refinancing options, such as Leveraged Loans. A System Dynamics
(SD) model is introduced, and the model application is presented
using an actual case-study data. The case study results indicate that
while high-interest start-ups make using Leveraged Loan inevitable,
refinancing can rescue the project and bring about profitability. This
paper also presents some managerial implications of refinancing
energy efficiency projects based on the case-study analysis. Results
of this study help to implement financially viable energy efficiency
projects so that the community could benefit from their
environmental advantages widely.
Abstract: This study explored the relationship between
psychological traits, demographics and financial behavioral biases for
individual investors in Taiwan stock market. By using questionnaire
survey method conducted in 2010, there are 554 valid convenient
samples collected to examine the determinants of three types of
behavioral biases. Based on literature review, two hypothesized
models are constructed and further used to evaluate the effects of big
five personality traits and demographic variables on investment biases
through Structural Equation Model (SEM) analysis. The results
showed that investment biases of individual investors are significantly
related to four personality traits as well as some demographics.