Financial Management
Articles tagged with Financial Management
Board interpersonal diversity linked to lower tax avoidance
Research shows that diverse boards with members from various backgrounds bring new perspectives, strengthen oversight, and reduce aggressive tax avoidance. This leads to more questioning, debate, and closer scrutiny of management decisions, ultimately resulting in more responsible tax behavior.
Medicaid expansion helped enrollees’ long-term financial health, study finds
A new study found that Michigan Medicaid expansion helped enrollees significantly reduce their medical debt in collections by up to 75% within seven years of enrollment. Additionally, the study shows substantial drops in sub-prime credit scores, improving financial stability and long-term health outcomes.
AI measures business complexity
A new AI model helps measure business complexity by breaking it down into 29 categories, including debt, equity, and financial structures. The tool can identify areas of complexity that require closer analysis for investors and provide insights for standard setters and regulators to simplify reporting standards.
New research reveals high option trading fees and barriers to competition
A new study reveals that option trading fees are substantially higher than stock trades, creating a conflict of interest for brokers. The complex options market also features structural advantages for dominant firms, leading to higher costs for individual investors.
Financial strain of cancer treatment undermines hope and life satisfaction new study finds
A new study analyzing 519 patients with cancer reveals that financial toxicity significantly impacts not only finances but also psychological resources like hope and social support. As these resources weaken, overall life satisfaction declines.
Too much transparency can hurt financial markets
Researchers found that less transparency in bond markets can lead to better economic outcomes, as it imposes discipline on players and makes institutions more selective about bonds they buy. This is in contrast to the 2008 global financial crisis, which was triggered by too much public information and looser credit.
Businesses can either lead transformative change or risk extinction: IPBES
A new report by the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) emphasizes the critical role of businesses in halting and reversing biodiversity loss. Businesses can either drive transformative change or risk extinction, as they rely on and impact nature. The report provides methods and 100+ actions for bu...
New research reveals how dread shapes decision-making
A new study from the Universities of Bath and Waterloo finds that people are more emotionally affected by anticipating negative future outcomes than positive ones, shaping economic behaviour. Individuals with stronger negative anticipatory emotions are more likely to avoid risk and less willing to wait for delayed outcomes.
Leading Danish universities join forces to boost innovation capacity
A partnership between University of Copenhagen and Danish Technical University aims to improve Europe's resilience and competitiveness by boosting innovation. The initiative seeks to develop the innovation ecosystem, drive urban development, and attract talent, companies, and investors.
Cross-border M&A activity predicts changes in economic growth, foreign exchange returns
Researchers found a predictive relationship between cross-border deal activity and future economic growth, with high outflows predicting domestic weakness and inflows predicting stronger conditions. The study analyzed nearly 25 years of data on cross-border deals involving over 40 countries.
The lifesaving potential of opioid abatement funds
Financial settlements from opioid epidemic lawsuits are being redirected to fund potentially lifesaving interventions. These efforts aim to curb overdose deaths and improve public health outcomes.
Family background strongly linked to financial misconduct by corporate executives
A study conducted at the University of Oulu found that senior corporate executives are more likely to commit financial crimes if their parents have previously been charged and convicted. The researchers analyzed nearly 76,000 CEOs and board members and found a strong association between parental convictions and executive misconduct.
Keck Medicine of USC names Christian Pass chief financial officer
Keck Medicine of USC names Christian Pass as its new chief financial officer, bringing extensive leadership and finance expertise to the role. As CFO, Pass will oversee strategic financial planning and collaborations across the health system.
The individual resilience of owners and the entrepreneurial orientation of retail businesses drive their organisational resilience
Research highlights the importance of owner individual resilience and entrepreneurial orientation in driving organisational resilience in small independent retailers. The study reveals that these factors enhance innovation and business performance, leading to improved adaptability and responsiveness to market changes.
Kids’ behavioral health is a growing share of family health costs
The study found that behavioral health care accounted for $41.8 billion of overall health spending in 2022, with families paying an average of $2.9 billion out-of-pocket. The costs have grown more than twice as fast as other types of medical care, with telehealth visits increasing by 99% per year.
Energy and regional factors drive carbon price volatility in China’s emissions trading markets
The study reveals clear regional differences in what drives carbon price volatility, with energy prices and industrial structures playing key roles. The proposed GM-AL model outperforms benchmark models and provides a scalable framework for other countries to establish or enhance their own ETS mechanisms.
For some Latinx college graduates, student loan debt affects mental health
A study by University of California - Merced sociologist Daisy Verduzco Reyes found that Latinx college graduates experience improved emotional well-being after the COVID-19 pandemic student loan repayment pause, with 37 participants carrying over $26,000 in debt.
Greener cryptocurrencies are less volatile as they react less to energy price movements
A new study by Davide Sandretto finds that greener cryptocurrencies, such as those using Proof-of-Stake protocols, respond more steadily to market movements. This reduces volatility and is a win-win for the environment and investors, who face fewer risks from energy price shocks.
Home buyers are overpaying mortgage fees. Shopping around can help.
A new study by the University of Florida finds that most US home buyers are overpaying mortgage fees, with average costs ranging from 1-3% of the loan. Shopping around can help consumers save an average of $32 in fees and more than $1,000 in interest per loan.
Report yields roadmap for Americans to age with health, wealth, and social equity
The report identifies areas necessary for longer lives, including competency in health, financial literacy, and social factors. It also calls for updating the US healthcare system to meet the needs of an aging population, including specialized training in geriatrics.
Why top firms paradoxically fire good workers
Top firms paradoxically fire good workers to maintain reputation and boost profits. Workers accept lower pay temporarily to signal elite status, while those who stay earn higher fees directly from clients. The firm's strategic underpayment of better workers increases profits by creating a stable equilibrium.
Concealed deals drive up 401(k) fees
A new study reveals that many 401(k) plans include mutual funds with higher fees and lower performance due to revenue-sharing deals with plan administrators. Employees may unknowingly invest in these funds, leading to lost returns over time.
Shedding light on the impact of the Bank of Japan’s exchange-traded fund purchase program
A recent study by Waseda University researchers reveals that the Bank of Japan's large-scale ETF purchases have a significant impact on both the equity market and securities lending market, making short selling easier. This suggests that the stock market functions efficiently to some extent, mitigating distortions in stock prices.
Where financial advisors grew up influences their business ethics
A new study found that financial advisors' childhood environment significantly predicts their core code of ethics, influencing their professional behavior. The research suggests that cultural norms from their hometown play a significant role in shaping their ethical foundations. This finding highlights the importance of considering the...
How the fraud protection system is wrongly brandishing thousands of innocent banking customers
Expert research reveals hundreds of thousands of unknowing banking customers could be incorrectly labelled with fraud markers, causing significant stress and hardship. The book highlights the devastating toll of ordinary people being wrongly linked to fraud, often due to third-party errors or fake businesses.
Financial markets are more prone to sharp swings than traditional theory suggests
A new study from the University of Vaasa shows that traditional risk models often underestimate extreme events in financial markets. Power-law models offer a more accurate lens to understand financial markets' risk dynamics, revealing sharp rises and crashes are common across equities, commodities, FX markets, and cryptocurrencies.
How gratitude can offset the effects of financial stress
A new study published in Open Psychology suggests that experiencing higher levels of gratitude can lead to lower financial stress. The research, led by Dr. Rona Hart, explored the complex relationships between psychological and socioeconomic factors in forming individuals' financial behaviors and well-being.
VCs backed Black founders after BLM – but it didn’t last
A new study by Cornell researchers found that VC interest in Black-founded startups peaked after BLM protests, but funding was short-lived. Black-owned startups raised only about a third as much funding as similar non-Black owned startups, even when comparing similar businesses in the same industry, year and state.
Hospital financial health and provision of obstetric and neonatal intensive care unit services
A cohort study found that hospitals with poor financial health were less likely to provide essential perinatal services. This disparity was more pronounced in Southern and rural regions.
Registrations open for São Paulo School of Advanced Science in Systems Change and Sustainability
The São Paulo School of Advanced Science in Systems Change and Sustainability brings together leading academics to discuss cutting-edge knowledge on sustainable transformation. Applications will be selected based on résumé, academic transcript, letters of recommendation, and proposal submission.
The patterns of elites who conceal their assets offshore
A Dartmouth study reveals distinct patterns associated with offshore secrecy, tied to home country governance. Elites from authoritarian countries use a 'confetti strategy,' while those from transparent democracies employ 'concealment' and 'hybrid' strategies to hide assets.
The ultra-wealthy’s concealment of finances offshore is influenced by politics at home
A new study reveals how political conditions in ultra-wealthy elites' home countries influence their offshore finance strategies. Elites from countries with high corruption and unfair law application used blacklisted financial centers, while those from risk of government confiscation employed identity-concealing strategies.
Brexit: is it farewell to capital? The UK has turned off the tap for EU startups. Europe still invests across the channel
A recent study by Politecnico di Milano found that UK investors cut back on European investments after Brexit, while EU investors waited for clarity before increasing their investments. This suggests that Brexit raised uncertainty in the market for financing innovative entrepreneurship.
Younger workers not adjusting to rising state pension age, study finds
A study from the University of Bath found a clear gap between expected and actual retirement behavior among younger workers. Those without active workplace pensions or outright home ownership are more responsive to State Pension age reform and adjust their expected retirement age upwards.
The death of a partner and financial stress have been linked to an increased risk of Alzheimer's disease and differences in brain structure
A recent study suggests that stressful life events can impact brain health differently depending on gender and educational level. The death of a partner was associated with changes in biomarkers related to Alzheimer's disease, while unemployment and economic losses were linked to structural differences in the brain.
Retirement is about confidence as well as money
A new study by Ramesh Rao and colleagues found that subjective financial knowledge (SFK) has a significant impact on retirement readiness. People with higher levels of SFK are more likely to feel confident about their retirement savings.
Firms raise the bar after missing the target: Strategic use of overestimated earnings targets
Researchers found that firms set overly optimistic goals for the next period after missing their target, and surprisingly, this tactic often pays off. However, large institutional shareholders and female directors can restrain such behavior by demanding accountability and compliance with rules.
Car dealers don’t rip off subprime borrowers
A study by the University of Texas at Austin reveals that car dealers provide implicit subsidies to subprime borrowers. The dealers incur a loss of an average of $301 when arranging loans for these buyers.
BRICS banks at the crossroads: ESG lending and tech investment drive stability and growth
The study examines how ESG lending and technology investment impact BRICS banking performance, offering timely guidance for banks and policymakers. It analyzes the effects of high-ESG firms and borrowers' technology-related capital expenditures on return on risk-weighted assets and non-performing loans.
Mapping financial - new energy risks in China via multilayer networks
A new study uses multilayer network analysis to investigate the interconnectedness between financial sectors and new energy companies in China. The research provides a more granular understanding of systemic risk propagation between critical sectors, offering insights into monitoring financial stability during green transformation.
Over confidence in finance bosses leads to environmental rule-breaking
A study of nearly 600 US companies over 17 years found that firms in states with stakeholder-focused laws are better at avoiding environmental issues. CFOs' personalities, especially if they're overconfident, can lead to risky decisions harming both the environment and the company.
How good money habits make cents for mental health
Researchers found that individuals with regular savings habits and on-time credit card payments had better mental health. The study also showed that even small amounts of saving can lead to positive outcomes.
Income inequality undermines support for higher minimum wages
Research by the American Psychological Association found that high levels of income inequality weaken support for higher minimum wages, as people infer that the rich should earn more than the poor. The study suggests that emphasizing the potential benefits of lower inequality could be a more effective approach to raising minimum wages.
OECD nations show mixed progress toward energy and economic convergence
The study found no overall convergence among OECD countries, but identified convergence clubs for each factor. Technological progress significantly improves per capita income and energy diversification, while financial development has a bi-directional relationship with energy diversification.
Congressional stock trading severely undermines public trust and compliance with the law
A study by University of California - San Diego reveals that exposure to reports of Congressional stock trades significantly reduces Americans' trust in Congress and their willingness to comply with the law. Researchers found that knowledge of politician stock trading alone can undermine legitimacy, regardless of profit involvement.
So, our city’s shrinking—Now what?
A study analyzed per capita municipal expenditures and their correlation with population changes in small and medium-sized cities in Japan. The results revealed that prioritizing child welfare expenditures is a key strategy to sustain populations, while city planning expenditures on street maintenance and construction were also effective.
Deregulation of banks in America has fuelled corporate deception
A new study from the University of Surrey reveals that deregulated banks have led to a significant shift in corporate earnings management strategies, with companies opting for riskier real earnings management (REM) over accrual-based earnings management (AEM). This shift poses long-term risks to sustainability and innovation.
Term or permanent life insurance? A new study offers guidance
A new study by Ohio State University researchers found that households with both term and permanent life insurance policies were most likely to be financially prepared in case of an income earner's death. The study suggests having both types of insurance may be a strong option for many consumers, as most do not have enough coverage.
Join us at the 2025 MRS International Risk Conference!
The conference aims to promote research broadly related to global financial risk management. It will feature an AI and Climate Risk Forum at MIT, as well as a submission platform for scholars to share their work.
Financial well-being varies across generations
A new study from the University of Georgia found that millennials have lower levels of financial well-being and knowledge, while boomers have the highest. Financial skills and behavior also tend to improve with age. Insights from this study could help develop programs to improve financial well-being across generations.
Resident physician intentions regarding unionization
A survey study found that most resident physicians are either in a union or support unionization due to pay and financial security concerns. The study suggests that future research should investigate other factors and the effectiveness of unionization in achieving its goals.
Stricter oversight needed as financial misconduct drives risk-taking in banking
Researchers found that banks referred for violations are significantly more likely to engage in risk-heavy strategies and speculative lending. Stronger boards with larger and more independent membership can dampen the negative impact of misconduct.
New research reveals how asset owners can leverage ESG shareholder engagement across the world
The study identifies two chains of influence - company-centric and owner-centric - highlighting varying power dynamics between asset owners and companies worldwide. By understanding these differences, asset owners can foster stronger ESG shareholder interaction with local companies across different global contexts.
Stock market performance enhanced through integrated reporting
A new study from Murdoch University found that companies adopting Integrated Reporting and Combined Assurance practices can significantly improve their stock market performance. Key findings include the importance of non-financial information, the detection and reduction of earnings management, and the enhancement of report credibility.
Weathering the storm: Professor’s new book explores how local governments can adapt and recover from natural disasters
A new book by Komla Dzigbede explores the ability of local governments to learn, adapt, and innovate in the face of major crises. The book analyzes disaster preparedness, response, and economic development post-disaster, offering practical lessons for local leaders.
The Frontiers of Knowledge Award goes to Blanchard, Galí and Woodford in recognition of their profound influence on modern macroeconomics and the design of monetary and fiscal policy rules
Olivier Blanchard, Jordi Galí and Michael Woodford received the BBVA Frontiers of Knowledge Award for establishing rigorous foundations for business cycle fluctuations analysis. Their New Keynesian paradigm integrates monopolistic competition and nominal rigidities into dynamic general equilibrium models with rational expectations.
Burnout from financial stress may lower job satisfaction
A recent study by the University of Georgia found that financial stress can contribute to burnout and reduce job satisfaction. The researchers surveyed over 200 employees and discovered that current worries about money management increased levels of burnout, while expected future financial security improved views on one's job.
Tennessee professor receives SAEA Emerging Scholar Award
Charles Martinez, assistant professor at the University of Tennessee Institute of Agriculture, has received the SAEA Emerging Scholar Award for his distinguished research and outreach work. He is recognized for his contributions to farm and financial management, experimental economics, and livestock market economics.
Do embedded counseling services in veterinary education work? A new study says “yes.”
A groundbreaking study by University of Missouri researchers shows that embedded counseling services in veterinary programs lead to significant reductions in psychological distress among veterinary trainees. The study also highlights the critical role of mental health support in high-stress professional education, with implications for...