Implication of Behavioral Finance in Investment Decision-making Process

Behavioral finance is a structure that supplements some parts of standard finance and replaces other parts. It portrays the behavior of investors and management in decision-making; it illustrates the outcomes of interactions between investors and managers in financial and capital markets. As decisionmaking is an art to undertake complex situations and investors make irrational decisions during their investments. Therefore, it is a unique art to choose a certain alternative from various alternatives available. Although behavioral finance does not claim that every investor would suffer from similar illusion, instead it sheds light on to take necessary initiatives to avoid such illusions, which influence the process of decision-making, particularly while making investments

Sector analysis on determinants of capital structure and human capital among non-financial listed firms in Pakistan

Capital structure provides a way of controlling and directing financial mechanism that helps a firm in achieving its desired objectives for maximizing stakeholders‘ wealth. Past studies on aligning the reasonable or optimal capital structure with firm‘s operating, investing and financial requirements are still rare in developing countries and in Pakistan particularly. The current study provides a dynamic framework to investigate the sensitivity of capital structure and how various factors influence the nature of debt and equity financing. The study investigates the relationship of several independent firm-level variables such as, size, tangibility, profitability, growth, non-debt tax shield, dividend payout, firm age, business risk, uniqueness and liquidity with capital structure of firm. Furthermore, this study explores the different dimensions where human capital relation was also examined with all the three measures of dependent variable, i.e., short-term debt, long-term debt and total debt ratios. Analysis was conducted by using the ten years (2003-2012) data of 176 non-financial companies from eight different sectors (i.e., automobile and parts, chemicals, construction and materials, electricity, food processors, oil and gas, personal goods and household goods) listed on Karachi Stock Exchange (KSE). Three different methodologies were employed, i.e., pooled data estimation, panel data estimation and dynamic panel data estimation. Analysis showed that the different sectors behaved differently towards capital structure. However, overall analysis of 176 companies showed that the firm size, profitability, dividend payout and liquidity remained significantly correlated to capital structure. While applying Generalized Method of Moments (GMM), results of long-term debt show that all the variables remained significant except uniqueness of firm. Moreover, firm size also played significant role as a moderator between human capital and capital structure. The findings of this study are discussed in terms of theoretical, practical and conceptual implications for both scholars and policy makers to better understand decisions related to capital structure with a view for future researchers

A Critical Review of Capital Structure Theories

The purpose of this paper is to scrutinize and appreciate the theories of capital structure starting from theory of Miller and Modigliani (1958) of capital structure, which is also known as irrelevance theory of capital structure and also including theory like pecking order theory, trade off theory, market timing theory and agency cost theory. In addition, authors have tried to explain the theories and their contradiction with each other in detail. This paper will be an addition to understand the theories of capital structure

Cybersecurity Challenges and Solutions in the Fintech Mobile App Ecosystem

The rapid growth of the fintech industry, driven by the proliferation of mobile applications, has revolutionized financial services, providing unprecedented convenience to users. However, this innovation comes with inherent cybersecurity challenges that demand rigorous attention. This study delves into the complex and ever-evolving landscape of cybersecurity within the fintech mobile app ecosystem, aiming to identify challenges and present viable solutions. Cybersecurity threats in the fintech mobile app ecosystem encompass a broad spectrum, including data breaches, malware attacks, phishing schemes, and identity theft. As fintech apps handle sensitive financial data and transactions, they are prime targets for malicious actors seeking financial gain. To address these threats, this research examines current cybersecurity strategies and emerging technologies, such as advanced encryption, biometric authentication, and AI-driven anomaly detection. Furthermore, regulatory frameworks and industry standards play a crucial role in shaping cybersecurity practices within fintech. This study assesses the impact of compliance requirements on fintech companies and their ability to protect user data. Real-world case studies and incident analyses provide valuable insights into the consequences of cybersecurity breaches in this sector. Ultimately, this research aims to contribute to a comprehensive understanding of the multifaceted cybersecurity challenges faced by the fintech mobile app ecosystem and offers practical recommendations for fintech firms, regulators, and cybersecurity professionals to enhance security measures. Strengthening the security foundation is paramount to sustaining user trust, fostering continued innovation, and securing the future of mobile fintech

Explaining venture capital and technology commercialization in EU countries through dynamic modeling

Technology commercialization is envisioned as an important indicator of economic growth through academic environment. The assurance of financial capital to accelerate the technology commercialization is a big challenge for European countries and above that, European Venture Capital (VC) market has not been fully exploited according to its potential. Using a dynamic model approach on 21 European Union countries data from 2007 to 2013, we found an empirical stance for an interaction between research and development (R&D) expenditure and VC for accelerating technology commercialization in the form of contemporary patents and startups. The results depict that venture capitalists are more oriented towards startups as compared to patenting activity. The application of dynamic model approach helped to generalize the results across Europe and for other developed countries. Particularly, the study argues that a contemporary knowledge and simulation of VC in framing the innovation system and promising the business formation is much desired. In line with the perspective of innovation led ecosystem, an active contribution and understanding of VC would also be acknowledged. (C) 2018 Published by Future Academy www.FutureAcademy.org.U

Implication of behavioral finance in investment decision-making process

Behavioral finance is a structure that supplements some parts of standard finance and replaces other parts. It portrays the behavior of investors and management in decision-making; it illustrates the outcomes of interactions between investors and managers in financial and capital markets. As decision-making is an art to undertake complex situations and investors make irrational decisions during their investments. Therefore, it is a unique art to choose a certain alternative from various alternatives available. Although behavioral finance does not claim that every investor would suffer from similar illusion, instead it sheds light on to take necessary initiatives to avoid such illusions, which influence the process of decision-making, particularly while making investments

Market power versus capital structure determinants: Do they impact leverage? Market Power Capital Structure Determinants Leverage Market power versus capital structure determinants: Do they impact leverage?

Abstract: The purpose of this study is to investigate the association between market power and capital structure. This study will further provide a logical explanation towards the factors affecting capital structure. This study analysed 176 non-financial Pakistani companies listed on Karachi Stock Exchange over the period of 2003-2012. Capital structure has been tried to investigate with a different perspective by investigating its association with market power. It has been seen that there is a significant and positive relation between market power and capital structure. Size and liquidity remained significantly negative with capital structure, whereas profitability and dividend payout remained significantly positive with capital structure. To the best of authors' knowledge, this is the first study that investigates the relationship between market power and capital structure in any developing economy by employing the data of non-financial Pakistani firms