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Supply chain finance (SCF) as a crucial approach plays a key role in improving commitment, trust, financial flows, and profitability in a supply chain (SC). Many industrial organisations finance their SC through two resources: internal financing (buyer) and external financing (bank). The main objective of this paper is to develop an advanced data envelopment analysis (DEA) model for measuring the sustainability of financing resources of Industry 4.0 technologies. To do so, for the first time a non-radial DEA model in the presence of both zero inputs and ratio data is proposed. In this paper, the sustainability factors, including economic, environmental, and social factors are incorporated into the proposed approach. The developed DEA model, for the first time, is applied in SCF. The results show the most sustainable financial resource for investing in Industry 4.0 technologies. Also, the inputs and outputs' inefficiencies are determined. [ABSTRACT FROM AUTHOR]

With almost one-quarter of the 21st century behind us, it's a good opportunity to assess how far we personally, the financial industry, and professionals have progressed in coping with and responding to the present, and planning for the future. So far, it certainly has been both a joyride and a roller-coaster ride for most of us. A century ago, our forebears were dealing with world conflict, economic gyrations, cultural upheaval, lifestyle evolution, and technological disruption. Sound familiar? But they also looked forward to the opportunities that a new century offered along with all the challenges noted. Renowned gerontologist Matilda White Riley was uniquely qualified in 1990 to take on the challenge of assessing where the preceding century had been in regard to aging and where the approaching century not only might be but could be if it reached for its full potential if we focus on optimism, opportunities, and change. [ABSTRACT FROM AUTHOR]

The May 2024 Financial Gerontology column in the Journal of Financial Service Professionals (Vol. 78, no. 3, pp. 35-38) introduced foundational concepts aimed at fostering a balanced perspective on aging. This column offers guidance on the subsequent step--how to practically apply this perspective when engaging with older clients. Given the aging boomer generation's redefinition of aging and heightened awareness of ageism, enhancing one's approach is crucial. Key elements such as language, visual imagery, and mindset play vital roles in conveying a positive perspective on aging. [ABSTRACT FROM AUTHOR]

How does firm-specific human capital shape careers in the finance industry? We build a dynamic model where workers accumulate portable and nonportable (firm-specific) human capital and learn about their match quality with employers. Estimating the model using granular data on M&A advisory bankers, we show that a large fraction of bankers' human capital is nonportable, ranging from 12% to 46% across different firm types. Bankers make a dynamic trade-off between portability and returns on human capital, leading to time-varying job preferences over their life cycle. Our results have broad implications for careers in finance and the provision of financial services. [ABSTRACT FROM AUTHOR]

We analyze how interdependencies in financial networks can lead to self-fulfilling insolvencies and multiple possible equilibrium outcomes. Multiplicity arises if a certain type of dependency cycle exists in the network. We show that finding the cheapest bailout policy that prevents self-fulfilling insolvencies is computationally hard, but that the optimal policy has intuitive features in some typical network structures. Leveraging indirect benefits ensures systemic solvency at a cost that never exceeds half of the overall shortfall. In core-periphery networks, it is optimal to bail out peripheral banks first as opposed to core banks. [ABSTRACT FROM AUTHOR]

This article examines the role of fair value gains or losses related to Level 3 valuations in CEO cash compensation for U.S. financial firms. Our results show that Level 3 income is compensation-relevant. By separating Level 3 income into unrealized and realized Level 3 income, we find that CEO cash compensation is less sensitive to unrealized than realized Level 3 income, which indicates that compensation committees have a higher concern for the clawback problem associated with unrealized Level 3 income. A further analysis separating Level 3 income into positive and negative components shows that Level 3 losses are more compensation-relevant than Level 3 gains, thereby validating the argument that Level 3 losses are more credible than Level 3 gains. Overall, we find that Level 3 income is relevant for CEO cash compensation and that this phenomenon is mainly driven by its realized and loss components. [ABSTRACT FROM AUTHOR]

This article provides a basic overview of the way that financial literacy, financial knowledge, and its application works for one's basic estate planning using the 2021 National Financial Capability Study (NFCS) dataset. Further, the article expands the link between financial literacy and individuals who have established wills. The research offers implications for financial service professionals who are addressing estate planning for their clients. [ABSTRACT FROM AUTHOR]

Restricted stock units (RSUs) are a type of equity compensation that many companies offer to attract top talent and to incentivize their executives to remain employed. RSUs generally have the potential of resulting in the transfer of substantial value to the executive, without a lot of complexity associated with that outcome. To make the most of an executive's RSUs, the financial service professional should make sure that the executive understands how much value they have and should devise a plan for addressing the taxation and cash flow needs following the vesting of the RSUs. [ABSTRACT FROM AUTHOR]

Big data technologies change the way in which data and labor combine to create knowledge. Is this a modest innovation or a data revolution? Using hiring and wage data, we estimate firms' data stocks and their knowledge production functions. Quantifying changes in production functions informs us about the likely long-run changes in output, in factor shares, and in the distribution of income, due to big data technologies. For the investment management industry, our structural estimates predict a 5% decline in the labor share of income; that change is comparable to similar estimates for the industrial revolution. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

We present a review of the many insightful columns and articles that were published in the Journal of Financial Service Professionals in 2023. By examining this column, members of the Society of Financial Service Professionals and all Journal readers can easily locate important information that will enhance their professional knowledge. [ABSTRACT FROM AUTHOR]

As a financial services professional, you are in a unique position to encourage your clients to think about housing as a key element of their financial plan--not just in terms of the expense but also in considering how where they live can support their lifestyle and changing needs as they age. [ABSTRACT FROM AUTHOR]

An important literature emphasizes that finance grew rapidly after WWII relative to the full economy and the services sector, but these are poor benchmarks because they mask a broad structural shift from low- to high-skill services. We show that i) finance is among the most skill-intensive service industries, ii) the evolution of the finance income share closely tracks other high-skill service industries, and iii) finance grew much slower than the rest of high-skill services in the post-WWII period. The rise of modern finance is not as remarkable as prior research suggests, providing context for debates about the size of finance. [ABSTRACT FROM AUTHOR]

The innovation of mobile financial services (MFS) is a crucial tool in the field of information and communications technology for development (ICT4D). This study investigates the impact of MFS on farmer entrepreneurship in rural China. The findings indicate that MFS adoption has a significantly positive effect on farmer entrepreneurship. However, these effects vary among farmers with different income levels. High-income farmers are most impacted by MFS adoption in terms of entrepreneurial revenue, whereas low-income farmers are most affected by MFS adoption in terms of entrepreneurial engagement and willingness. A significant and positive effect of MFS adoption on entrepreneurial profits is observed for high-income farmers, whereas the effect is insignificant for medium-income farmers. The findings suggest that researchers and policy-makers should pay greater attention to the heterogeneous effects of technology empowerment on rural development. [ABSTRACT FROM AUTHOR]

Internet finance is a new type of financial industry that is different from traditional finance.This study constructs an evolutionary game model between financial regulators and Internet financial institutions and discusses the strategy choices of the two participants under different circumstances. When analyzing the stable equilibrium strategy, the results show that when there are stable points in the game, Internet financial institutions tend to ‘excessive innovation’, while regulators’ strategies are affected by costs and benefits. When there is no stable point in the game, financial regulators and Internet financial institutions are in a continuous game of ‘moderate innovation – maintenance regulation – excessive innovation – strengthen regulation – moderate innovation.’ The study also provides policy recommendations to balance Internet financial innovation and regulation. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) is a popular research topic, but there have not been comprehensive discussions on CSR evaluation in the banking sector. The purpose of this study is to propose a two-stage analysis combining the modified Delphi method (MDM) and Analytic Network Process (ANP) in order to construct a model for evaluating banks’ CSR. First, we use MDM to select and determine the interdependence of the criteria and then employ ANP to obtain their weights and to rank the alternatives. The results show that 5 criteria and 18 sub-criteria need to be considered in CSR evaluation. The most important criterion and sub-criterion are bank governance and regulatory compliance, respectively. The evaluation model constructed herein can be taken as a decision-making guide for evaluating banking organizations’ CSR and to help promote CSR development in China’s financial industry. [ABSTRACT FROM AUTHOR]

The need for stable development and effective use of non-banking financial services market tools, as well as the imperfection of the current legislation in this area characterize the unconditional relevance of the topic of this article. The purpose of the article is to determine the purpose of state regulation of nonbank financial services markets, to define the concept of the principles of state regulation of professional financial activity, and to highlight and analyze the main principles of such regulation. It is noted that one of the main elements of state regulation of non-bank financial services markets is the purpose of such regulation. In view of the analyzed scientific positions and legislative provisions, it is concluded that the main goal of state regulation of non-banking financial services markets is: 1) ensuring transparency, reliability and openness in the markets of non-banking financial services; 2) coordination of activities of state authorities on the functioning of non-bank financial services markets; 3) protection of rights, legitimate interests and satisfaction of socio-economic needs of consumers of non-banking financial services; 4) prevention of abuses and violations in the markets of non-banking financial services. It is proposed to define the principles of state regulation of professional financial activity as the main ideas, basic principles, and general provisions of the implementation by the Regulators of a set of measures to regulate, control and supervise the activities of non-banking organizations and other participants in the markets of non-banking financial services in order to create favorable conditions for their functioning., preventing and countering abuses and violations in the markets of non-banking financial services and ensuring the protection of the legitimate interests of clients. The main principles of state regulation of professional financial activity are highlighted: the principle of legality; principle of commensurability (proportionality); the principle of guaranteeing the rights and legitimate interests of participants in the financial services market (in particular, the rights of consumers); the principle of assessment by the Regulators of transactions, operations, circumstances and events taking into account their economic and factual content; the principle of mandatory licensing of professional financial activity; the principle of exclusivity of professional financial activity. [ABSTRACT FROM AUTHOR]