The default risk, one of the main risk factors for bonds, should be measured and reflected in the bond yield. Particularly, in the case of financial companies that treat bonds as a major product, failure to properly identify and filter customers' workout status adversely affects returns. This study proposes a two-stage classification algorithm for…

This study develops a conceptual framework to investigate the relationship between households' information search behavior and financial management outcomes. Consumers' information search behavior is examined from both internal and external perspectives. The internal information sources include human capital and psychological and attitudinal…

Studies on financial behavior indicate that emotional intelligence (EI) and personality traits (PTs) explain much of the bias in financial activity. This study aims to identify in which dimensions of theEI and PTs of university students in finance further training is needed to avoid financial behavior bias. To this end, the EI and PT levels of a…

Financial risk tolerance is an important personal characteristic that is widely used by financial professionals to guide the development and presentation of client-centered recommendations. As more baby boomers enter retirement, research on how these individuals perceive their willingness to take financial risks has gained importance, particularly…

Some of the biggest debtors in the twenty-first century are not small business owners or first-time homeowners, but rather university students who take out massive debt in the belief that it is an investment in their future. Like housing loans before the Global Financial Crisis, student loan debt is today being packaged and re-packaged into exotic…

In a world of fluctuating asset prices, many firms find the need to hedge in order to avoid or reduce losses. From a gold miner selling gold derivatives to airlines buying oil futures to protect against rising fuel costs, hedging is common practice across many different industries. In this paper, we provide students with a simplified example of a…

The final topic in a series looking at financial management from a theoretical perspective, working capital management provides the focus of the current article. We investigate how three key axioms--the risk-return tradeoff, agency conflicts, and stockholder wealth maximization--relate to this activity that occupies much of the financial manager's…

This series inspects the major topics in finance, reviewing the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts. The current article, devoted to dividend policy, also reviews the topic as presented in textbooks and the literature.

Objective: Financial strain may directly or indirectly (i.e., through perceived stress) impact students' psychological symptoms and academic and social integration, yet few studies have tested these relationships. The authors explored the mediating effect of perceived stress on the relationship between financial strain and 2 important outcomes:…

Continuing this series on the theory of financial management, the current article investigates capital structure, offering insight into the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts. Much literature addresses this topic, and some of the most recent literature challenges certain theoretical…

This article investigates operating and financial leverage from the perspective of the financial manager, accenting the relationships to stockholder wealth maximization (SWM), risk and return, and potential agency problems. It also covers some of the pertinent literature related specifically to the implications of operating and financial risk and…

This case study explores the use of online games to teach personal finance concepts at the college level. A number of free online games targeting such topics as budgeting and saving, risk and return, consumer credit, financial services, and investments were introduced to the experimental group as homework assignments. Statistical results indicate…

The University of San Francisco School of Law is one of at least a dozen law schools in the United States where students represent small investors facing big headaches, often because their brokers were more interested in maximizing their own commissions than in giving sound advice. Supervised by law professors, teams of students file motions,…

During this period of continued economic uncertainty, higher-education institutions are facing a variety of challenges that by now are very familiar to governing boards and institutional leaders, including poor investment returns, reduced liquidity, limited choices in how they structure debt issues, and threats to flexibility in tuition pricing.…

Both the Financial Services Authority and the Basic Skills Agency are committed to supporting those individuals and organisations working to improve the financial capability of themselves and others. The development of the National Strategy for Financial Capability, coordinated by the Financial Services Authority, and the commissioning of a…