Research on consumer financial vulnerability (CFV) was especially encouraged in the aftermath of the 2007–2008 financial crisis, becoming a phenomenon of global interest to academics and policy ...makers. This paper reviews the existing academic literature on CFV with the aim of mapping out four research fields (i.e., the concept, the measures, the methods, and the drivers of this phenomenon) and providing a roadmap for a future research agenda for this field. To this end, we review the last two decades of academic research on households’ financial vulnerability, thereby presenting a hybrid literature review. Evidence from a comprehensive analysis of 98 academic papers suggests that this is still an emerging and highly fragmented field and, therefore, a comprehensive future research agenda is offered, including concrete suggestions for research designs and measurements. The proposal of a homogeneous definition of financial vulnerability, the consideration of measures that include subjective aspects of the phenomenon, the use of qualitative methods, and the development of more detailed theoretical and empirical research on the drivers of CFV, are among the authors’ recommendations for future research.
Purpose: The research intends to verify the relationship between meeting the requirements for joining and staying at PROFUT and the economic and financial situation of Brazilian football clubs listed ...in the Ranking Nacional de Clubes (RNC).
Methodology: The study was operationalized by the deductive method, taking an empirical approach, using the analysis of individuals, facts and consequences researched. As for the procedures adopted, the research is classified as a bibliographic and documentary review and a quantitative approach. The matter was addressed through the application of an investigation of the points of the legislation, through a checklist, and the presentation of economic and financial indicators: indebtedness, current liquidity, tangibility, size and return of net worth.
Results: Given the investigation carried out, it was noticed that, even with the current requirements of the legislation and criteria of enforceability for participation in PROFUT, adherence to the program does not guarantee a better economic and financial situation, mainly related to the factors inherent to the capital structure.
Contributions of the Study: The paper contributes in a theoretical way in the production of a contextualized analysis of the main existing researches and shows new explanations of the studied fact based on different perspectives. With regard to the practical contribution, based on the main findings found, and seeking to relate the level of commitment of the analyzed clubs, which adhered to PROFUT, with the management of their capital structure, it was noticed the absence of a direct relationship between adherence to this type of financing and the management of the sources of capital obtained.
Debt and depression Bridges, Sarah; Disney, Richard
Journal of health economics,
05/2010, Volume:
29, Issue:
3
Journal Article
Peer reviewed
We examine the effect of household financial indebtedness on psychological well-being using a large household survey of families with children in Britain. Existing studies that find a link between ...debt and depression tend to utilise small and highly selective samples of people and only self-reported measures of financial stress, responses to which are likely to correlate with subjective measures of health. From additional household data, we can construct a variety of ‘objective’ quantitative measures of financial stress in order to validate self-reported measures. We show that, although there is a positive association between subjective measures of financial well-being and psychological well-being, individuals differ in their psychological response to objective household financial situations. We also examine how the potential simultaneity of financial and psychological health might be handled.
Objective: Municipality sustainability is crucial for promoting the country's wealth and the citizens' well-being. Therefore, understanding municipalities' indebtedness is relevant to avoid ...situations of severe financial constraints. This work aims to understand the determinants that explain Portuguese municipalities' debt levels (both total and excess of debt), after the introduction of the Regime Financeiro das Autarquias Locais e Entidades Intermunicipais (RFALEI) published in 2013 (Law no. 73/2013). Theoretical Framework: In this work, the indebtedness of Portuguese municipalities is studied, from the perspective of net debt and excess indebtedness in order to give a broader picture of this topic and to be able to characterize the main determinants that explain debt in Portuguese municipalities. Method: Municipalities' debt is measured using not only the net debt ratio (as most of the works) but also the excess of municipalities' indebtedness. Institutional, political, and financial-economic variables are analyzed to explain debt using a linear regression model with fixed effects. The sample includes all Portuguese municipalities for the period from 2014 to 2017. Results and Discussion: Results show that only institutional and financial-economic determinants are relevant to explain municipalities’ indebtedness. Municipalities with less tourism, less State transfers, and with more capital revenues are the ones more indebtedness. Beyond these factors, municipalities with more investments and less tax revenue tend to present more excess debt. Research Implications: The results of this work are useful to a group of users of the information provided by municipalities: By knowing the main reasons that lead to debt, municipal managers can somehow reduce debt; Regulatory entities can create laws to limit debt and citizens know how public money is being managed. Originality/Value: This work analyzed all Portuguese municipalities, during four years, a larger sample than used in previous works. Moreover, institutional, and financial-economic determinants are also used, in addition to political variables, and these determinants show relevance to explain municipalities' debt. Finally, we focus not only on the debt ratio but also on excess of debt which was the main concern of RFALEI.
In Japan, the overall population is declining. Depopulation is severe, resulting in various negative consequences, particularly in rural areas. Rural communities could benefit by collaborating with ...people from other places, mainly urban areas. Typical examples of visitors or tourists from urban areas in these cases are referred to as “
kankei jink
o.” The more fundamental issue, however, is that many rural residents have lost confidence in their ability to live in areas with declining and aging populations. It is important to note the potential for highly mobile people from urban areas to increase the civic pride of rural residents. This raises questions about who these nomadic people, or “affiliative nomads,” are and how they interact with residents. To answer these questions, we analyzed cases of affiliative nomads in previous studies. The nomadic people showed respect for the rural areas to the residents; as a result, they were perceived by the residents as being in a stage of growth. When the nomads and residents interact, they create common values such as nature conservation and economic and community revitalization. Thus, the nomads cultivate civic pride among the residents and could be regarded as affiliative nomads. Furthermore, some coordinators bridge residents and nomads to expand their relationships with other people. Affiliative nomads may be sustainable tourism stakeholders and contribute to solving the problems of depopulated areas in Japan and other developed or emerging countries.
•Over-indebtedness is an interdisciplinary, complex, and multifaceted phenomenon.•Antecedents of over-indebtedness can be consumer-related, creditor-related or ...macroenvironment-related.•Over-indebtedness is multicausal and the problems associated rarely manifest in isolation.•The consequences of over-indebtedness for consumers can be disturbing, destabilizing, and de-structuring.
Consumer over-indebtedness has increased globally in recent decades, along with consumer credit. This article presents a systematic literature review on the topic of consumer over-indebtedness, consolidating extant knowledge, identifying broad patterns, and establishing future directions for this fast-growing research domain. We develop a comprehensive analysis and integrative review of the topic, analyzing 136 articles published in 76 journals over 50 years (from 1969 to 2019) across the academic disciplines of Economics, Marketing, Finance, Psychology, and Social Sciences. We present a framework for organizing the literature streams, theories, and main variables related to consumer over-indebtedness. Finally, we identify inconsistencies and under-researched areas, suggesting a future research agenda relevant to academics, practitioners, and policymakers.
•Heterogeneity within family businesses leads to different levels of debt.•Boards of directors and generational stage are key determinants of heterogeneity.•Family involvement on the board of ...directors is positively related to debt level.•Generational stage is negatively related to debt level.
This paper re-examines the factors influencing debt-financing decisions in family firms, considering the importance of socioemotional wealth and heterogeneity issues. In particular, we explore the board of directors and generational stage as key explicative factors of heterogeneity in family businesses. Focusing on a large sample of Spanish family firms, we estimate a partial least squares model, whose results show that the higher the level of family involvement on the board of directors and the lower the generational stage, the higher the debt level of the family firm. Consequently, in addition to traditional determinants of the level of debt, the above variables should be considered to better understand the heterogeneous debt-financing decisions of family firms, and this has practical implications for them and their internal and external relationships.
The COVID-19 pandemic crisis and the associated lockdown measures have exerted significantly adverse effects on corporate sectors globally. Archanskaia et al. (2023) provide a novel empirical ...strategy to timely assess corporate financial distress in the EU. The contribution is two-fold. First, this paper’s notion of financial distress considers both the equity position and corporate indebtedness. Second, the methodology proposed in this paper allows the authors to estimate corporate financial distress in the EU at a highly granular level and link micro-level simulations to sectoral macroeconomic outcomes. The methodology employed by Archanskaia et al. (2023) consists of three steps. First, the authors apply a nowcasting model to acquire monthly industrial turnover data. Second, they feed the obtained monthly industrial turnover into a profit-generating process via an accounting identity to estimate monthly firm profits at the firm level. Third, the authors use the estimated firm profits with a snapshot of information on pre-existing liquid assets to deduce the firm-level liquidity needs and the depletion of equity through the focus period during COVID-19. These estimated results on firm equity position and indebtedness enable the authors to quantity corporate financial distress in the EU via various angles (e.g., country-level heterogeneity, industry heterogeneity, and the targeting of COVID support policies). The primary advantage of this approach is that it deals with large datasets at the granular level and produces firm-level results almost in real-time. Therefore, it can help policymaking track the effects of crises over time. However, one can quickly critique this three-step approach for its susceptibility to the usual Lucas critique. That said, since the objective here is to estimate firm-level financial distress, a large structural model being more or less aggregate in nature, though able to mitigate the Lucas critique concern, will encounter significant challenges in estimating firm-level results with the requisite level of granularity offered by the available data. Therefore, I broadly concur with the authors’ position that ‘the specific contribution of this paper consists in striking a better balance between the need to carry out a multi-country evaluation of the pandemic’s effects on industrial activity in a strongly integrated region like the EU and the difficulty of capturing time, industry, and country variation in turnover with sufficient granularity.’
This paper systematically reviews the relationship between personal unsecured debt and health. Psychinfo, Embase and Medline were searched and 52 papers were accepted. A hand and cited-by search ...produced an additional 13 references leading to 65 papers in total. Panel surveys, nationally representative epidemiological surveys and psychological autopsy studies have examined the relationship, as have studies on specific populations such as university students, debt management clients and older adults. Most studies examined relationships with mental health and depression in particular. Studies of physical health have also shown a relationship with self-rated health and outcomes such as obesity. There is also a strong relationship with suicide completion, and relationships with drug and alcohol abuse. The majority of studies found that more severe debt is related to worse health; however causality is hard to establish. A meta-analysis of pooled odds ratios showed a significant relationship between debt and mental disorder (OR=3.24), depression (OR=2.77), suicide completion (OR=7.9), suicide completion or attempt (OR=5.76), problem drinking (OR=2.68), drug dependence (OR=8.57), neurotic disorder (OR=3.21) and psychotic disorders (OR=4.03). There was no significant relationship with smoking (OR=1.35, p>.05). Future longitudinal research is needed to determine causality and establish potential mechanisms and mediators of the relationship.
•A number of studies show a relationship between unsecured debt and health.•This relationship is especially strong for mental health in particular depression.•There are also relationships with substance use and suicide.•Research suffers from inconsistent use of standardised measures.•A lack of longitudinal studies makes it difficult to demonstrate causality.
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