Articles tagged with Financial Services
A Penn State researcher found that Treasury yields influence rates on cryptocurrency lending markets, despite no direct link. Stablecoin borrowing and deposit rates move together with Treasury yields in a systematic way.
A study found that nearly half of retail investors use GenAI to process financial information and inform investment decisions. Investors primarily use GenAI as a research assistant to make sense of complex financial data, with 74% believing it improves processing and 80% planning to continue using it. However, concerns about reliabilit...
Research suggests that strong ESG investor pressure can lead to pollution outsourcing to suppliers, but also enable firms to adopt eco-friendly technologies and improve emissions. ESG investors can mitigate this by engaging with suppliers and supporting green technologies.
Researchers at West Virginia University are studying loss-chasing behavior in West Virginia to identify trends and triggers that cause gamblers to place risky bets. The goal is to promote responsible gaming and consumer protection in gaming markets.
Researchers developed a novel AI framework that optimizes investment decisions directly while accounting for risk. The study found that conventional forecasting-based approaches were outperformed by the decision-focused model in terms of risk-adjusted performance and wealth accumulation.
Research found that companies with more independent board members adjust CEO compensation more quickly towards optimal levels. Boards make calculated trade-offs and consider costs and benefits before changing pay structures.
Mobile money can widen access, help small firms, and cushion shocks, but only with fair rules and safe systems. A study found that mobile money has helped lift around 194,000 households out of poverty, especially for female-headed households.
Research from the University of Texas at Austin found that pandemic loan fraud explained 22.5% of average housing price increases in 2020-2021. This type of fraud hurt individuals who bought houses at inflated prices, and had secondary effects on auto title registrations and other economic indicators.
A study by the University of East London found that simple digital finance tools like mobile money can improve small businesses' long-term competitiveness. The research showed that firms benefited most when digital finance became an integral part of their daily operations, leading to gains in efficiency, customer service, and flexibility.
New research from the University of Surrey found that Brexit-related events significantly increased volatility spillovers between European markets. The analysis shows that large financial markets tend to transmit volatility to smaller ones, with France emerging as the most persistent transmitter of volatility across the EU.
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.
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.
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.
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.
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 ...
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.
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.
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.
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.
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.
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...
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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...
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.