Cognitive abilities and financial resilience: evidence from an emerging market

Mundi, Hardeep Singh; Vashisht, Shailja

doi:10.1108/ijbm-05-2022-0216

Cited by 2 publications

(3 citation statements)

References 118 publications

(177 reference statements)

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“…These perspectives could differ across heterogenous groups that have experienced vulnerabilities to varying extents during the pandemic, such as millennials (She et al. , 2023), immigrants (Lee and Kim, 2023), single parents (Mundi and Vashisht, 2023), individuals with disabilities (Wann and Burke-Smalley, 2023) and women (Dutra et al. , 2023).…”

Section: Discussionmentioning

confidence: 99%

“…For example, given the fact that the event study examined firm value, it would be interesting to examine responses to CTRPs from other perspectives such as consumer attitudes, branding outcomes and reputation status. These perspectives could differ across heterogenous groups that have experienced vulnerabilities to varying extents during the pandemic, such as millennials (She et al, 2023), immigrants (Lee and Kim, 2023), single parents (Mundi and Vashisht, 2023), individuals with disabilities (Wann and Burke-Smalley, 2023) and women (Dutra et al, 2023).…”

Section: Limitations and Directions For Future Researchmentioning

confidence: 99%

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Helping consumers weather the storm: the impact of consumer-targeted resiliency programs on firm value

Bahmani,

Yazdanparast

2024

IJBM

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PurposeWith the goal of helping consumers bounce back from the financial challenges they faced as a result of the COVID-19 pandemic, many firms developed and announced consumer-targeted resiliency programs (e.g. Walgreens waived delivery fees, Associated Bank allowed deferred mortgage payments). However, there is a paucity of research examining the unique features of these programs, and whether firms' investors (the first external stakeholder group to provide them with feedback regarding their strategies) were receptive to these programs during a period of time in which firms themselves were suffering financially. Drawing on resilience theory and stakeholder theory, the present research incorporates an event study of consumer-targeted resiliency program announcements to understand their financial implications for firms, and to learn whether firms witnessed different financial effects as a result of firm- and program-specific factors.Design/methodology/approachThis study referred to business news publications and newswire services to collect a comprehensive list of consumer-targeted resiliency programs announced by publicly traded U.S. firms during the pandemic. The resulting dataset consisted of 145 announcements made during the period of February–June 2020. An event study was conducted in order to precisely measure the main effect of consumer-targeted resiliency programs on firm value, as manifested through abnormal stock returns. Finally, a moderation analysis (regression) was conducted to uncover whether firm characteristics or specific features of firms' consumer-targeted resiliency programs lead certain firms to witness stronger financial effects than others.FindingsThe main effect of consumer-targeted resiliency programs on firm value was found to be positive – a 1.9% increase on average. The moderation analysis finds that non-financial firms were rewarded more positively than financial firms (e.g. banks and credit card companies). In addition, financial aid (i.e. allowing customers to defer their payments to a firm for its products/services, versus a reduction in the price of a product/service or offering it for free or giving cash back to customers) and temporal characteristics (i.e. an offer being framed as limited-time, vs being indefinite or for the foreseeable future) are not found to have a moderating effect.Originality/valueThis theory-driven empirical study uncovers practical implications for managers of firms interested in whether investing in corporate social responsibility during times of crisis is a wise allocation of resources. Any form of financial aid for consumers, regardless of temporal limitations, is received positively by investors.

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Section: Discussionmentioning

confidence: 99%

Section: Limitations and Directions For Future Researchmentioning

confidence: 99%

Helping consumers weather the storm: the impact of consumer-targeted resiliency programs on firm value

Bahmani,

Yazdanparast

2024

IJBM

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“…Conceptualize FR to cover ease of access to cash income and emergency funds Tahir et al (2022) Examine FR as the perceived ability to access $3,000 in an emergency Tinta et al (2022) Conceptualize FR as the ability to raise emergency funds as well as savings, access to credit and asset liquidation Mundi and Vashisht (2023) Conceptualize FR to comprise of economic resources, financial resources, financial knowledge and behaviour and social capital Note(s): The authors acknowledge the feedback from the anonymous reviewer in developing this table based on the literature reviewed for the paper Source(s): Authors' design from reviewed literature Table 1.…”

Section: Data Descriptionmentioning

confidence: 99%

Gender disparities in financial resilience: insights from South Africa

Zeka

Alhassan

2023

IJBM

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PurposeWhile the extant literature has explored issues related to the access, usage and availability of financial services, the ability of households to withstand financial adversities, particularly those living under economically vulnerable conditions, requires further attention. The paper presents a gendered analysis of financial resilience behaviour in South Africa.Design/methodology/approachUsing a nationally representative sample of 4,880 households, this paper constructs a financial resilience behaviour index (FRBI) covering savings, credit, insurance, and retirement planning behaviours. The gendered effect of demographic characteristics on financial resilience is examined using the ordinary least square and seemingly unrelated regression techniques.FindingsThe results show that low levels of financial resilience were present across the sample with insurance observed to be the greatest driver of financial resilience, followed by retirement planning, savings and credit respectively. Furthermore, the analysis highlights that a gender gap in financial resilience exists as men are characterized with higher financial resilience behaviour compared to women. The results also suggest that employed women and women with higher levels of education are associated with greater financial resilience.Practical implicationsBased on these results, improving access to higher education and employment opportunities for women will enhance their financial resilience and contribute towards addressing SDG (5) on gender equality.Originality/valueAs far as the authors are aware, this paper presents the first empirical analysis of the gender gaps in socio-demographic characteristics that explain financial resilience in South Africa.

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Cognitive abilities and financial resilience: evidence from an emerging market

Cited by 2 publications

References 118 publications

Helping consumers weather the storm: the impact of consumer-targeted resiliency programs on firm value

Helping consumers weather the storm: the impact of consumer-targeted resiliency programs on firm value

Gender disparities in financial resilience: insights from South Africa

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