The Influence of Parental Financial Socialization on Young Black African Adults’ Financial Behavior
Adam Ndou and Sam Ngwenya
Parental financial socialization is becoming increasingly important globally due to poor financial behavior amongst young adults, especially those in developing countries and rural and low-income areas. This study makes a unique contribution to the body of knowledge by investigating the relationship between parental financial socialization and financial behavior. Using a quantitative research approach, parental financial socialization was extended through parental financial teaching, discussions, monitoring, and financial modeling. We collected a self-administered questionnaire from young black African adults in two low-income and rural areas in South Africa (Intsika Yethu and Fetakgomo Tubatse municipalities) and showed a significant positive relationship between parental financial teaching, parental financial discussions, and financial behavior. Results revealed that parental financial discussions had a significant and positive relationship with financial behavior, while parental financial monitoring was adversely associated with financial behavior. Finally, findings demonstrated that parental financial modeling had no relationship with financial behavior. The results suggest that parents should teach and discuss financial matters with young adults to improve financial behavior. Also, financial educators should design financial education programs to assist parents in improving their financial behavior to transfer responsible financial behavior to young adults.
Keywords: Young Black African Adults, Financial Behavior, Parental Financial Socialization
Trade Openness and Income Inequality: A Case of Southern African Development Community Countries
Dorcas Gonese, Asrat Tsegaye, Forget Kapingura, and Sibanesizwe Alwyn Khumalo
This research aims to address one of the SADC regional indicative strategic plans (RISDP) and one of the 17 Sustainable Development Goals (SDG) objectives of reducing inequality in the face of increased trade openness. The paper uses the pooled mean group (PMG) estimation technique to examine the effect of trade openness on income inequality in 16 SADC countries from 1980 to 2019. The findings of the study reveal that trade openness worsens income inequality in the long run. Again, the findings of the results indicate that it is not only trading that matters on income inequality changes. Thus, trade openness reduces income inequality when economic growth, human capital index, and financial development are high. Yet, the mediating variable of trade openness and institutional quality has a positive and significant effect on income inequality in SADC countries. As a result, this study provides SADC policymakers and governments with some recommendations, such as investing more in high-quality education and strengthening financial institutions by reducing inequalities in the financial sector. Furthermore, effective policies to stimulate local production are needed to create jobs and improve the quality of institutions to reduce income inequality in the SADC region.
Keywords: Income Inequality, Trade Openness, Panel ARDL, SADC
Liquid Stock and Financial Performance of Non-Financial Quoted Companies in Nigeria
Rafiu Oyesola Salawu, Segun Wale Olayinka, Momodou Mustapha Fanneh, and Mary Kehinde Salawu
There have been several recent concerns about the deteriorating state of Nigerian companies’ performance. Many investors in Nigeria over the years have accused the quoted companies of not doing enough to improve their performances. Researchers are concerned about the factor that affects performance as a result of this. Therefore, this paper examines the influence of stock liquidity on the financial performance of companies in Nigeria. Data used are sourced from the financial statements of selected companies and the fact book of the Nigeria Stock Exchange for the period between 2012 and 2019. Data are analyzed using both descriptive and inferential statistics. The empirical findings of this study confirm that liquid stock, proxied by the turnover ratio (TOR), greatly impacts the performance of companies in Nigeria. Sequel to this, this paper concludes that the degree of operational success of Nigeria’s corporate entities is commensurate with the liquidity status of their stocks.
Keywords: Financial Performance, Liquid Stocks, Quoted Companies, Nigeria
Aksemsettin Mah. Kocasinan Cad.
Erenoglu Is Merkezi
Fatih – Istanbul, TURKEY
Email: [email protected]
This work is licensed under a Creative Commons Attribution 4.0 International License.