Financial Services
Articles tagged with Financial Services
Profit alone is a poor measure of success, study shows companies can look efficient while harming the planet
A new study from the University of Surrey shows that firms celebrated for strong financial performance may actually be inefficient when environmental impact is included. The research developed a new way to measure sustainable corporate efficiency, combining traditional financial metrics with environmental data.
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.
Stablecoins need robust regulation, says cryptoasset expert
Professor Iwa Salami argues that stablecoins require strong regulation to support safe growth and innovation in UK finance. The expert calls for clear legal protections, robust operational standards, and close international cooperation to mitigate risks and ensure consumer protection.
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.
More banks mean higher costs for borrowers
Research from the University of Texas at Austin reveals that increased bank competition can result in higher interest rates for borrowers. With more banks competing for loans, each additional bank is associated with a 7 basis point increase in interest rates. This is due to the 'winner's curse' effect, where lenders become risk-averse ...
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.
Investor attention on individual stocks can predict marketwide performance
Research from the University of Notre Dame finds that retail investors' buzz can lead to lower future returns, while institutional investors' attention acts as an early signal for higher returns. The study also reveals a bottom-up approach measuring individual stock attention works better than top-down approaches.
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.
Exposing security loopholes in modern contactless payments
Researchers found critical weaknesses in offline payment systems that can be bypassed to enable fraudulent high-value transactions. The study highlights the need for better coordination between providers to ensure convenience doesn't create new opportunities for fraud.
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.
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.
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.
Collaboration on finances can help repair relationships for military couples
Financial stressors significantly affect relationship happiness, but collaborating on finances can change this. Military couples who budget and make financial decisions together report better interactions with their partners and a stronger relationship.
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.
Systemic risks in the leveraged US loan market may herald new financial crisis – study
Researchers at University of Bath warn that underpriced leverage risk could trigger a new banking or credit crisis. Default rates on US leveraged loans are at their highest level in four years, with many borrowers resorting to distressed exchanges.
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.
How does climate policy uncertainty affect energy stock returns?
A recent study by International Studies of Economics found that climate policy uncertainty causes stocks to plummet globally, as investors fear damage to economic activity and carbon costs. The study also revealed that rising oil prices have a negative impact on stock returns, except in the Gulf Cooperation Council region and Kuwait.
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.
inait announces collaboration with Microsoft to deploy novel AI based on digital brains across industries
The collaboration aims to accelerate the development and commercialization of inait's innovative AI technology, using its unique digital brain AI platform. It will focus on joint product development, go-to-market strategies, and co-selling initiatives, initially targeting the finance and robotics sectors.
Secure your future and maximize impact: Free webinar on charitable giving strategies
The American Heart Association's webinar will explore the benefits of charitable gift annuities and qualified charitable distributions, helping donors maximize their giving potential while ensuring a reliable income stream. Participants will also gain insights into how to create a lasting legacy for causes close to their heart.
KIT invests in spin-off validaitor
Validaitor offers a unique platform for AI governance, risk management, and automated testing, reducing certification costs by up to 80%. KIT's investment supports the development of trustworthy AI solutions, combining expertise in cybersecurity and energy sectors.
Powerful legal and financial services enable kleptocracy, research shows
A new study reveals how legal and financial industries enable kleptocracy through deregulation and under-enforcement of the law. This 'enabling' allows elites to offshore wealth, enhance reputations, and influence via philanthropy and politics. The UK's punitive libel regime also facilitates this process.
ChatGPT errors show it cannot replace finance professionals, yet
A study by Washington State University found that ChatGPT struggles with nuanced financial tasks, even when compared to human professionals. The AI model performed well on broad concepts but showed significant inaccuracy on specialized topics such as determining clients' insurance coverage and tax status.
United Nations ratifies framework to protect people on cash app
A comprehensive framework for securing mobile money applications has been ratified by the United Nations, marking a significant step toward safer digital financial transactions. The framework includes 120 detailed recommendations and controls to ensure comprehensive protection for users and transactions.
Do commercial ties influence ESG ratings?
A study published in Journal of Accounting Research finds that conflicts of interest from commercial ties lead to biased ESG ratings. ESG ratings for existing clients increased by 17.16% after the acquisitions, highlighting the need for regulation and investor awareness.
Insilico Medicine enters into revolving loan facility of up to US$100 Million with HSBC
Insilico Medicine has entered into a revolving loan facility of up to US$100 million with HSBC, enabling the company's global expansion and AI-driven innovation in biotechnology. The credit line will support Insilico's proprietary novel drug discovery pipeline and its end-to-end diversified AI platform, Pharma.AI.
How some states help residents avoid costly debt during hard times
A national study found that lower-income residents of states with more generous benefits were less likely to take out new credit cards, personal finance loans, and payday loans. More generous unemployment insurance benefits resulted in a 9.7% lower probability of low-income consumers taking out a new credit card.
New study reveals loophole in digital wallet security—even if rightful cardholder doesn’t use a digital wallet
Researchers at UMass Amherst discovered a vulnerability in digital wallet security that can be exploited by malicious actors even if the rightful cardholder doesn't use a digital wallet. The study found that banks prioritize convenience over security, leaving users' credit cards susceptible to unauthorized transactions.
Study finds private equity expanding to mental health facilities
A study by Oregon Health & Science University and colleagues finds that private equity firms have expanded to mental health facilities, mirroring growth in other healthcare sectors. The research suggests that these acquisitions may prioritize profits over access for patients.
Proposed reporting system could help avert bank runs
A proposed reporting system could help prevent future bank crises by providing regulators with detailed disclosure of both good and bad news. The system would shield less risky banks from runs while spotlighting the riskiest ones, protecting them from panic-driven withdrawals.
Resistance to social robots futile
The study investigates relationships between customer equity drivers and trust in social robots, finding that effective customer service creates value equity. Businesses can benefit from social robots by enhancing relationship equity and brand equity, leading to greater trust and positive customer experiences. However, the negative asp...
Do digital technologies offer a better way to loan people money?
A new study found that digital collateral programs lead to positive selection, increased loan repayment, and profitability. Securing loans with digital collateral also increased school enrollment and attendance in developing countries.
Ambitious workers park the office politics when employer is struggling, study suggests
A study by City University London found that employees in competitive industries modify their behaviors when facing threats or opportunities from rival firms. For example, replacement riders in MotoGP tend to overtake teammates more often when the team is doing well, suggesting they want to secure a permanent contract.
Assessing loan applicants’ credit risk via smartphone activities helps improve financial inclusion and business profitability
A study by Carnegie Mellon University found that using alternative data from smartphones is more effective in improving financial inclusion (23% better) and business profitability (42% better) compared to social media data. This approach can help microloan companies adopt cost-effective solutions and offset potential economic loss.
The name game: CEOs with favorable surnames receive higher pay
A new study from Bayes Business School found that CEOs' surnames can significantly impact their total compensation by up to 4.9%. The research highlights organizational bias and inefficient contracting decisions based on surname attributes, which can affect talent recognition and rewards.
EU MiFID II unbundling rules damaged research and liquidity in London’s main stock market – new study
New research from the University of Bath shows EU MiFID II reforms reduced research activity and affected liquidity in London's main market, but had a positive impact on the Alternative Investment Market. The reforms required brokers to unbundled research costs, leading to a decline in analyst coverage and market liquidity.
Pusan National University researchers study the analytic pricing formulas of vulnerable timer options
Researchers from Pusan National University have developed pricing formulas for vulnerable timer options, which can help reduce investment risks. The study found that these options are more effective than standard timer options in managing credit risk.
Are retrospective adjustments to sustainability reports helping CEOs score a bonus?
New research found that companies are altering their sustainability reports to improve their environmental and social performance metrics, which are tied to CEO bonuses. Only 15% of revisions were reported as due to error, while 69% were attributed to changes in measurement, suggesting manipulation may be occurring.
Research finds DEI initiatives during certain presidencies can affect bottom line
Research found that DEI initiatives for vulnerable groups, like LGBT and military veterans, affect stock prices differently depending on the presidency. Companies with DEI for these groups saw higher or lower stock returns during Obama and Trump presidencies respectively.
Why endangered wildlife needs AML law coverage and banks need to share IWT intelligence
The illegal wildlife trade is a significant financial portfolio that creates state-level security and development risks. Implementing AML laws and sharing intelligence with banks can boost IWT law enforcement. Countries like Singapore, UK, and Australia are making progress in combating money laundering and IWT.
Access to financial services linked to lower COVID mortality rates
A study of 142 nations found a strong link between access to formal financial services and lower COVID-19 mortality rates. Access to bank accounts, credit cards, or loans from a financial institution is a key predictor of lower mortality risk, even stronger than comorbidities.
WVU transportation center will bring mobility to rural areas, opening access to country roads
The WVU SMARTER center aims to improve mobility in rural areas through self-driving cars, ride-sharing services, and bike sharing. The center will develop infrastructure and technology barriers to ensure accessibility for all people.
Two out of three corporate frauds go undetected, research finds
A study by researchers at the University of Toronto found that under typical surveillance, about 3% of US companies exhibit financial misrepresentation. However, during a period of heightened scrutiny following the Enron scandal, this rate tripled to 9%, indicating that at least 10% of companies may be involved in fraud.
Financial coaching for parents in clinic leads to higher attendance at well-child health care visits for their young children
A new study found that financial coaching for parents of infants in a pediatric primary care setting reduced missed well-child care visit rates by half and improved vaccination receipt. The intervention, which connected parents to public benefits and cost-saving services, also increased monthly household income.
The secret to fundraising: Allow donors to choose how their money is spent
Researchers found that giving donors control over charitable project allocation increases donations and loyalty. Donors who value agency are more likely to be loyal, active, and generous, increasing fundraising effectiveness.
Relying on customer surveys alone may mask poor service
A new study found that customers from underrepresented racial and ethnic groups rated poorer quality service less negatively than white consumers. This suggests that relying solely on customer surveys to improve service may not be effective in addressing discrimination.
Corporate duty waivers limit organic company growth and innovation, with R&D investment falling by nearly one fifth
A new study co-authored by Bayes Business School found that larger public companies suffer from loss of innovation and lower share price value when managers are permitted to take decisions in their own self-interest. The study examined the effects of waiving fiduciary duties on R&D investment, finding a significant decline.
Financial capability predicts more positive health outcomes, study shows
Research from the University of Kansas found that financial capability can predict positive health outcomes, with higher levels associated with better health measurements. The study highlights the importance of considering both individual financial skills and access to resources in improving population health.
Study: Stock purchases by senators generate abnormal returns for firms
A new study by University of Arkansas researchers found that the firms experiencing greater returns around the date of senator's purchase disclosure have direct jurisdiction over them through a committee assignment or sponsorship. This suggests investors' perception of senators trading on inside information may be inaccurate over time.
Shopping vouchers help women to stop smoking during pregnancy
A UK trial found that offering up to £400 in shopping vouchers to pregnant women can more than double the proportion who remain smoke-free by late pregnancy. However, most women relapsed after giving birth. The study suggests that financial incentives can be an effective tool to reduce smoking during pregnancy and improve health outcomes.
Health insurance companies overpay for some hospital radiology services
A study by the Radiological Society of North America found that health insurance companies often pay more than necessary for radiology services, leading to higher premiums and out-of-pocket costs. The study also suggests that radiologists can play a key role in delivering high-quality, low-cost care to patients.
The share of female managers in finance has increased but their earnings are still lagging far behind male managers
The share of female managers in finance has increased significantly in Finland, but their earnings remain lower than those of male managers. Occupational segregation and differences in educational backgrounds contribute to this disparity. Despite the industry's high wage premium, women are underrepresented in higher-paying roles.
Carnegie Mellon University establishes new initiative to drive financial inclusion in Africa
The new initiative aims to create more equitable digital financial services, expanding access to mobile money and other services for low-income earners and marginalized communities. The Upanzi Network will leverage research and academia across the continent to develop secure and cost-effective open-source digital technologies.
This popular type of investment fund nearly always loses money
Researchers found that specialized ETFs invest in overvalued areas with an average return about 30% lower than diversified funds. These hot-topic funds are often launched when the hype is at its peak, causing them to lose value quickly.
Early physical therapy associated with less health care resource use for patients with acute lower back pain
Patients who received early physical therapy had significantly lower incidence of health care resource use, including ER visits, in the first month and year after symptom onset. They also spent less money on lower back pain-related services in the first 30 days after symptom onset.