Zoekresultaten

Heuristics in financial decision-making: the selection of SME financing by advisers in an increasingly diverse market

PurposeIn order to better understand how heuristics are used in practice, the authors explore what type of heuristics is used in the managerial domain of financial advisors to small and medium-sized enterprises (SMEs) and what influences the shaping of these heuristics. In doing so, the authors detect possible fast-and-frugal heuristics in day-to-day decision-making of independent financial advisers who help owners of SMEs to acquire capital (e.g. loans, factoring, leasing and equity).Design/methodology/approachThe authors inductively assessed the work of financial advisers of SMEs. Based on group discussions, the authors drew up a semi-structured interview-protocol with descriptive questions about how financial advisers come to a deal for their clients. The interviews of 19 professionals were analysed by relating them to the theory of fast-and-frugal heuristics.FindingsWithin their decision-making, advisers estimate the likelihood of acceptance by a few financial providers they know well in their personal network with a strong bias towards traditional banking products, although there are a large number of alternatives on the Dutch market. “Less is more” seems to be a relevant principle when defined as satisficing. Heuristics help advisers to deal with behavioural and economic limitations. Also, the authors have found that client interaction, previous working experience and the company the adviser is working for influences the shaping of the simple rules the adviser is using.Research limitations/implicationsThe study shows how difficult it is to understand the ecological rationality of a certain group of professionals and to understand the “less is more” principle. Financial advisers to SMEs use cognitive shortcuts and simple rules to advise SME-owners, based on previous experiences, but it is difficult to determine whether that leads to the same or even better solutions for them and their clients than using probability theory and financial optimisation models. Within heuristics, satisficing seems to be a dominant mechanism. Here, heuristics help advisers in recognising possibilities by searching for similarities between a current financing case and previous experiences. The data suggests that if “less is more” is defined as satisficing for one or more stakeholders involved, the principle dominates the decision making of financial advisers of SME's.Practical implicationsThe authors suggest the relevance of a behavioural approach to finance by assessing the day-to-day decisions of financial advisers of SMEs. Also, the authors suggest that financial advisers are guided by previous experiences, and they do not fully assess a wide range of options in their work but need shortcuts to fulfil the needs of their clients.Originality/valueThe study comes close to day-to-day decision-making in finance by assessing how professionals make decisions. The authors try to understand types of heuristics in relation with “ecological rationality” and the less is more principle. The authors assess financial advisers of SME-companies, a group that has gotten little research attention until now. The influence of client interaction and of the company the adviser is working for is remarkable in the shaping of the advisers' simple rules.

A Behaviorally Informed Financial Education Program for the Financially Vulnerable: Design and Effectiveness

Financially vulnerable consumers are often associated with suboptimal financial behaviors. Evaluated financial education programs so far show difficulties to effectively reach this target population. In our attempt to solve this problem, we built a behaviorally informed financial education program incorporating insights from both motivational and behavioral change theories. In a quasi-experimental field study among Dutch financially vulnerable people, we compared this program with both a control group and a traditional program group. In comparison with the control group, we found robust positive effects of the behaviorally informed program on financial skills and knowledge and self-reported financial behavior, but not on other outcomes. Additionally, we did not find evidence that the behaviorally informed program performed better than the traditional program. Finally, we discuss the findings and limitations of this study in light of the financial education literature and provide implications for policymaking and directions for future research.

Vakbekwaamheid en de professional in Finance & Accounting

Kenmerkend voor een hbo-opleiding is de verwevenheid van theorie en praktijk. Studenten worden opgeleid om uiteindelijk als professional het beroepsveld te betreden, voorzien van eenstevige theoretische bagage maar ook met vakmanschap, een onderzoekende houding en eenbrede blik op de context waarin zij opereren. De opleiding biedt daartoe specifieke vakken maaris ook gericht op een meer algemene vorming, de tegenwoordig veelbesproken bildung.

State Machines

Today, we live in a world where every time we turn on our smartphones, we are inextricably tied by data, laws and flowing bytes to different countries. A world in which personal expressions are framed and mediated by digital platforms, and where new kinds of currencies, financial exchange and even labor bypass corporations and governments. Simultaneously, the same technologies increase governmental powers of surveillance, allow corporations to extract ever more complex working arrangements and do little to slow the construction of actual walls along actual borders. On the one hand, the agency of individuals and groups is starting to approach that of nation states; on the other, our mobility and hard-won rights are under threat. What tools do we need to understand this world, and how can art assist in envisioning and enacting other possible futures?This publication investigates the new relationships between states, citizens and the stateless made possible by emerging technologies. It is the result of a two-year EU-funded collaboration between Aksioma (SI), Drugo More (HR), Furtherfield (UK), Institute of Network Cultures (NL), NeMe (CY), and a diverse range of artists, curators, theorists and audiences. State Machines insists on the need for new forms of expression and new artistic practices to address the most urgent questions of our time, and seeks to educate and empower the digital subjects of today to become active, engaged, and effective digital citizens of tomorrow.Contributors: James Bridle, Max Dovey, Marc Garrett, Valeria Graziano, Max Haiven, Lynn Hershman Leeson, Francis Hunger, Helen Kaplinsky, Marcell Mars, Tomislav Medak, Rob Myers, Emily van der Nagel, Rachel O’Dwyer, Lídia Pereira, Rebecca L. Stein, Cassie Thornton, Paul Vanouse, Patricia de Vries, Krystian Woznicki.

Effectiveness of Teaching & Learning Practices in Finance for International Business Students

Beyond maternal education

Objective We examined whether the role of maternal education in children's unhealthy snacking diet is moderated by other socio-economic indicators. Methods Participants were selected from the Amsterdam Born Children and their Development cohort, a large ongoing community-based birth cohort. Validated Food Frequency Questionnaires (FFQ) (n = 2782) were filled in by mothers of children aged 5.7±0.5yrs. Based on these FFQs, a snacking dietary pattern was derived using Principal Component Analysis. Socio-economic indicators were: maternal and paternal education (low, middle, high; based on the highest education completed) household finance (low, high; based on ability to save money) and neighbourhood SES (composite score including educational level, household income and employment status of residents per postal code). Cross-sectional multivariable linear regression analysis was used to assess the association and possible moderation of maternal education and other socio-economic indicators on the snacking pattern score. Analyses were adjusted for children's age, sex and ethnicity. Results Low maternal education (B 0.95, 95% CI 0.83;1.06), low paternal education (B 0.36, 95% CI 0.20;0.52), lower household finance (B 0.18, 95% CI 0.11;0.26) and neighbourhood SES (B -0.09, 95% CI -0.11;-0.06) were independently associated with higher snacking pattern scores (p<0.001). The association between maternal education and the snacking pattern score was somewhat moderated by household finance (p = 0.089) but remained strong. Children from middle-high educated mothers (B 0.44, 95% CI 0.35;0.52) had higher snacking pattern scores when household finance was low (B 0.49, 95% CI 0.33;0.65). Conclusions All socio-economic indicators were associated with increased risk of unhealthy dietary patterns in young children, with low maternal education conferring the highest risk. Yet, within the group of middle-high educated mothers, lower household finance was an extra risk factor for unhealthy dietary patterns. Intervention strategies should therefore focus on lower educated mothers and middle-high educated mothers with insufficient levels of household finance.