This study aims to measure digital financial literacy of MSME managers and to analyse the relationship between business experience, digital financial literacy and fintech behavioural adoption. The direct and indirect effects of business experience to fintech behavioural adoption are being explored. Dataset from UNSA 2023 Survey of MSME managers’ financial literacy in Sarajevo Canton, Bosnia and Herzegovina, using cross-sectional research design has been utilized. The main methodology relies on Principal Component Analysis, regression analysis and PROCESS method for analysing mediation effects. The findings indicate that the effect of business experience on fintech behavioural adoption is fully mediated by digital financial literacy. Moreover, there is a full serial mediation effect through all three digital financial literacy components, digital financial knowledge, attitudes and behaviour, in a sequence. Interestingly, full mediation is evident also through only digital financial behaviour. To increase fintech adoption, financial institutions should focus on enhancing digital financial literacy and the adept behaviours of MSME managers. These efforts can be leveraged to effectively market and sell fintech products. Policy implications are seen in the need for strengthening overall digital financial literacy competencies of managers and increasing financial inclusion of MSMEs. Regulators should draw effective policies therefore. Educational programs should be directed toward enhancing digital financial knowledge and positive attitudes and behaviour of MSME managers, especially focusing on aged managers, but also on those with short managerial experience. This study makes a unique contribution to the limited empirical evidence of the mediation role of digital financial literacy and its components in the relationship between business experience and fintech behavioural adoption. Digital financial literacy, all three digital financial literacy components in a sequence, and digital financial behaviour serve as mediators in this relationship.
Purpose The purpose of this study is to measure financial inclusion (FI) and to examine the role of digital financial literacy (DFL) and its components, and various socio-demographics in relation to FI. In addition, the mediating effect of digital financial attitudes (DFA) on the relationship between digital financial knowledge (DFK) and digital financial behaviour (DFB), as well mediating effect of DFA and DFB on the relationship between DFK and FI, is being explored.Design/methodology/approach Using a cross-sectional research design, we utilize a dataset from the survey of adults’ financial literacy in Bosnia and Herzegovina, collected from the representative sample of 1,096 adults in 2022. The main methodology relies on logistic and ordinal logistic regression analyses and PROCESS for mediation analyses.Findings The findings suggest that the effect of DFK on DFB is partially mediated by DFA. In addition, the effect of DFK on FI is fully mediated through three pathways: DFA, DFB, and DFA and DFB in serial mediation. Age, education, employment status and residence are significantly related to FI. Internet access is significant only for FI scores but not for adults’ banking status. Although women are almost twice as unbanked as men, we find no gender-based differences in financial product holdings, FI or adults’ banking status.Practical implications There is a need to enhance DFK and DFA to enable adults to use financial products. Financial institutions could use our results in designing and promoting their services.Social implications Policy implications are seen in the need for developing national strategies for financial education, with an emphasis on strengthening DFL, especially DFK and DFA, which will enhance the formal FI of adults. Also, governments should work on expanding Internet access.Originality/value The results make a contribution to the theory of planned behaviour. They contribute to the limited empirical evidence of the mediating role of DFA in relationship to DFB, as well as the mediating role of DFA and DFB in relationship to FI.
Using extensive and comprehensive databases to select a subset of research papers, we aim to critically analyze previous empirical studies to identify certain patterns in determining the optimal number of stocks in well-diversified portfolios in different markets, and to compare how the optimal number of stocks has changed over different periods and how it has been affected by market turmoil such as the Global Financial Crisis (GFC) and the current COVID-19 pandemic. The main methods used are bibliometric analysis and systematic literature review. Evaluating the number of assets which lead to optimal diversification is not an easy task as it is impacted by a huge number of different factors: the way systematic risk is measured, the investment universe (size, asset classes and features of the asset classes), the investor’s characteristics, the change over time of the asset features, the model adopted to measure diversification (i.e., equally weighted versus optimal allocation), the frequency of the data that is being used, together with the time horizon, conditions in the market that the study refers to, etc. Our paper provides additional support for the fact that (1) a generalized optimal number of stocks that constitute a well-diversified portfolio does not exist for whichever market, period or investor. Recent studies further suggest that (2) the size of a well-diversified portfolio is larger today than in the past, (3) this number is lower in emerging markets compared to developed financial markets, (4) the higher the stock correlations with the market, the lower the number of stocks required for a well-diversified portfolio for individual investors, and (5) machine learning methods could potentially improve the investment decision process. Our results could be helpful to private and institutional investors in constructing and managing their portfolios and provide a framework for future research.
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