Generational Differences in Personal Finance Behaviour - A Insight into Investors in Kolkata

Purpose - Similar experiences, values and beliefs shared among people of a generational cohort determines the choices that they make. This explains why people of the same generational cohort have distinct perceptions and tendencies towards investing. This paper focuses on generation differences in personal finance decisions. Objectives- The objective of the paper is to group the different personal finance variables into identifiable factors and to compare these personal finance factors across generations. Methodology - Data is collected through a primary survey with a structured questionnaire, among 140 respondents in Kolkata and Ranchi. Questions have been asked on personal finance behaviour, with their responses on a Likert scale. A Factor Analysis has been conducted on these questions to group them into different factors contributing to personal finance behaviour. These identified factors are also compared across generations. Findings - It was concluded that younger generations invest for the objective of keeping funds for emergency purposes, whereas older generations invest for their retirement needs. Younger generations usually invest for the short run, whereas older generations invest for the long run. Also, younger generations invest in easily accessible and popular investment avenues, whereas older invest in the most effective avenue. The items had clustered around six factors namely, Financial Planning, Use of Technology, Financial Independence, Financial Irresponsibility, Financial Openness and Use of Credit Cards. Originality- Behavioral differences across generations is an area that is studied across diverse topics and disciplines. However, very scarce studies have been conducted to assess generational differences in financial behaviour. Practical Implications- This paper attempts to bridge this gap by collecting financial data from respondents of all generations and making a comparison among them. This helps to understand the reasons for differences in investment behaviour of generations.

Generational Differences in Personal Finance Behaviour – A Insight into Investors in Kolkata

Purpose – Similar experiences, values and beliefs shared among people of a generational cohort determines the choices that they make. This explains why people of the same generational cohort have distinct perceptions and tendencies towards investing. This paper focuses on generation differences in personal finance decisions. Objectives- The objective of the paper is to group the different personal finance variables into identifiable factors and to compare these personal finance factors across generations. Methodology – Data is collected through a primary survey with a structured questionnaire, among 140 respondents in Kolkata and Ranchi. Questions have been asked on personal finance behaviour, with their responses on a Likert scale. A Factor Analysis has been conducted on these questions to group them into different factors contributing to personal finance behaviour. These identified factors are also compared across generations. Findings – It was concluded that younger generations invest for the objective of keeping funds for emergency purposes, whereas older generations invest for their retirement needs. Younger generations usually invest for the short run, whereas older generations invest for the long run. Also, younger generations invest in easily accessible and popular investment avenues, whereas older invest in the most effective avenue. The items had clustered around six factors namely, Financial Planning, Use of Technology, Financial Independence, Financial Irresponsibility, Financial Openness and Use of Credit Cards. Originality- Behavioral differences across generations is an area that is studied across diverse topics and disciplines. However, very scarce studies have been conducted to assess generational differences in financial behaviour. Practical Implications- This paper attempts to bridge this gap by collecting financial data from respondents of all generations and making a comparison among them. This helps to understand the reasons for differences in investment behaviour of generations.

Bilateral Investment Treaty and Foreign Direct Investment in India

India has one of the largest Bilateral Investment Treaty (BIT) networks with other counties around the world. The BITs is to promote foreign investment by increasing investor confidence, empowering individual private parties to take international arbitral proceedings against the threat of appropriation by the government of the host country. This paper analyses the effect of BITs on FDI inflows in India using panel data for 76 countries for the time period 2000-2016 applying a dynamic panel generalised method of moments instrumental variable estimation method. The differenced GMM and system GMM estimates show a significant negative effect of bilateral investment treaties on the FDI inflows in India. While the lagged FDI has a significant positive effect, the financial openness of the source nations is reducing FDI inflows to India. The POLCON index shows that the countries with lesser political constraints have positive FDI outflow towards India. As opposed to domestic variables, the Chinn-Ito and POLCON indices have a greater share of change in FDI inflows to India. It seems that the BITs is not efficient enough to create investor confidence to invest in India.

FOREIGN CAPITAL AND DOMESTIC FUNDING CONDITIONS: A MUNDELLIAN TRILEMMA PERSPECTIVE

This study investigates and evaluates the impact of global funding conditions on private sector credit growth and controlling for the Mundellian Trilemma configuration. We contribute to the empirical literature by investigating the role of other conditioning factors such as the size of economies and their level of economic development. The more specific research goals are as follows: (i) To explore the different Trilemma configurations by income group and size of the economies; (ii) to enrich international macroeconomics literature on the role of Trilemma configurations and countries’ idiosyncrasies in assessing the impact of global financial conditions; and (iii) to formulate policy-relevant conclusions. We argue that — when assessing the impact of global financial conditions — the exchange rate regime and financial openness matter and the size of the economy and its income level. The high volatility in gross and net international capital flows redefined many trilemma configurations in the Great Recession aftermath. Many countries decided to shield their financial markets by reducing the degree of financial openness and moving toward intermediate or middle-ground positions in their Trilemma configurations.

How Does International Financial Integration Really Affect Post-Transition Countries' Growth? Empirical evidence from the CEE-10 countries

This paper seeks to empirically explore how an international financial integration influences a country’s GDP growth. The long run relationship is tested by PMG estimator for the sample of ten EU countries from Central, Eastern and Southeastern Europe (CEE-10 countries) between 1995 and 2017. Prior to the conducting of dynamic panel analysis based on PMG estimators, several panel unit root tests were conducted, as well as panel co integration tests. The findings offer mixed impact financial integration on growth. Among the measures of financial integration, growth of the CEE-10 countries is mostly driven in the long run by FDI inflows as well as remittances and financial openness. On the contrary, the study suggests a reversal relationship between growth and financial integration measured by Gross Foreign Assets and Liabilities in percentages of GDP. It might be explained with a fact that CEE-10 countries have not yet reached a certain level of financial development in order to benefit from financial integration. The study concludes that international financial integration does not per se enhance economic growth and country’s growth in the CEE-10 countries can be reached at a higher level of financial integration, further increase their financial openness and financial development.

Financial development, entrepreneurship and financial openness: evidence from Asia

PurposeThis study examines whether financial development affects entrepreneurship, and how financial openness moderate this relationship.Design/methodology/approachThe study employs panel data consisting of 781 country-year observations of 48 countries of Asia for the period 2001–2018.FindingsThe study provides empirical support for the eclectic theory of entrepreneurship in Asian countries. The findings of the study indicate that effective allocation of resources and ease of transactions increases the entrepreneurial activities in the country. Additionally, the less stringent regulations, allowing for the cross border transactions, increase the funds availability to the entrepreneurs which in turn increase innovation and establishment of new businesses.Research limitations/implicationsThe study only considered the moderating influence of financial openness on the nexus. Other indicators such as governance quality and political stability could also have significant impact on entrepreneurship. Further, our study was based on countries belonging to Asian continent. Since Asian continent has culture distinguished from other regions, therefore, the results cannot be generalized to the other continents.Practical implicationsThe study’s results provide insight to policymakers and regulators that in order to increase the entrepreneurial activities, the financial sector improvement is of paramount importance. The regulators should focus on well-functioning financial system and availability of capital to improve the investor's confidence and boost economic activities.Originality/valueThe study provides novel evidence on the effects of financial development on entrepreneurship and moderating influence of financial openness in the context of the entire Asian region, which is yet an unexplored area. This paper offers a fresh contribution in this area.