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Browsing Research and publications by Author "Richards, Daniel"
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Item Open Access Disclosure effectiveness in the financial planning industry(Emerald, 2021) Richards, Daniel; Safari, MaryamScandals in the Australian financial services industry highlights the conflicts of interest between those who provide financial advice (financial planners) and their clients. Disclosure is a potential governance tool to manage these conflicts of interest by reducing asymmetries in information. Yet, the efficacy of disclosure is questionable as scandals persist, so we research the effectiveness of disclosure in financial planning. This research used a qualitative approach involving the triangulation of data from parliamentary inquiries in financial services with data collected in semi-structured interviews with financial planning professionals. The findings draw a clear portrayal of the disclosure requirements and illustrate how disclosure processes are onerous and complex. Starting with detangling the complex interactions between the beneficial role of disclosure in reducing information asymmetry and unethical behaviour and the detrimental effect of information overload, we then highlight effective disclosure techniques utilised by financial planners, including visualisation of material information. Our study reveals that financial planners perceive their role as filtering information for clients and ensuring clients’ comprehension, due to the onerous disclosure requirements. The study is of interest to researchers, practitioners, policymakers, and society as it implies that how disclosure occurs is as important as what information is disclosed. Those who wish to foster effective disclosure in the financial services industry need to consider the quantity, quality, and process of disclosure. A limitation is our research focuses on financial planning practices and not client outcomes, which could be considered in future research. The study adds to the understanding of how disclosure is utilized as a governance tool, and how the quantity of information may impede the effectiveness of disclosure in the financial planning industry. In addition, the study identifies and elaborates on the influential factors and best practices for enhancing the disclosure effectiveness by financial planners.Item Open Access Female financial advisers: Where art thou?(Sage, 2019-12-30) Richards, Daniel; Roberts, Helen; Whiting, RosalindWe investigate the gender imbalance in the financial advising industry by analysing 32 in-depth qualitative interviews of female and male financial advisers in Australia and New Zealand. Using the framework of organisational structures, advisers’ preferences and stereotypical discrimination, we identify barriers for women and the adaptive strategies they employ to overcome them. Findings show that sales-based structures, servicing client needs, difficulties networking, a dominant masculine management culture and the gendered nature of flexible work inhibit women’s careers in financial advice. Strategies to overcome these barriers are finding the ‘right’ manager, receiving mentoring, selective networking and establishing a partnership arrangement with another adviser.Item Open Access Financial Literacy and Financial Well-being of Australian Consumers: A Moderated Mediation Model of Impulsivity and Financial Capability(Emerald, 2021-06-24) Tahir, Muhammad; Ahmed, Abdullahi Dahir; Richards, DanielWe test a moderated mediation model for a twofold purpose. First, to examine the mediating role of financial capability (FC) in the association between financial literacy (FL) and financial well-being (FW). Second, to analyze if non-impulsive future-oriented behavior (NIB) moderates the associations of FL with FC and FL with FW. We use the PROCESS macros in IBM SPSS Statistics to test the moderated mediation model and analyze the 2016 wave of the Household, Income and Labour Dynamics in Australia Survey. The empirical analysis shows that FC partially mediates the association between FL and FW. Furthermore, the moderated mediation analysis shows that NIB strengthens the associations of FL with FC and FL with FW. Specifically, the positive associations of FL with FC and FL with FW significantly increase for those consumers who score high on NIB. The findings have implications for the financial services industry. Professional financial planners can positively improve the ability of consumers to deal with their financial matters by highlighting the importance of FL and NIB. To our knowledge, this is the first study to assess a moderated mediation model, which examines the role of FC as a mediator variable and NIB as a moderator variable in the association between FL and FW.Item Restricted Occupational boundaries: Gender capital and career progression in the financial planning industry(Wiley, 2021-06-10) Richards, Daniel; O'Dwyer, MonicaGender inequality and occupational segregation in Australian financial services present a stark disparity, with men working as financial planners and women being over-represented in lower-paid administrative positions. This article uses a gender capital theoretical framework to examine gender segregation between financial planning and paraplanning occupations. Analysis of interviews with 26 financial professionals suggested that masculine capital, including confidence and persuasive soft skills, marked success as a financial planner. Feminine capital, including organizational skills, was aligned with the role of paraplanner. These findings contribute a new perspective on why gender segregation occurs in financial planning. These findings bear relevance as financial planning professionalizes.Item Open Access The professionalization of financial planning in Australia: an institutional logics perspective(Emerald, 2021-09) Richards, Daniel; Ukwatte Jalathge, Sarath Lal; yapa, premPurpose – This paper researches the professionalization of financial planning in Australia. We investigate how the institutional logic of major institutions inhibits this occupation from moving toward a professional status. Design/methodology/approach – The study uses documentary analysis of government inquiries into Australian financial services from 1997 to 2017 to ascertain the various institutional logics relating to the professionalization of financial planning. The method involves generating ideas from the data and applying an institutional logic framework to make sense of impediments to the professionalization of financial planning in Australia. Findings – The regulator adopted a self-regulation logic that empowered financial institutions to govern financial advice. These financial institutions have a logic of profit maximization that creates conflicts of interest in financial planning. The financial planning professional bodies adopted a logic of attracting and retaining members due to a competitive professional environment. Thus, financial planners have not been defined as fiduciaries, professional standards have not increased, and an ineffective disciplinary resolution system exists. Research limitations/implications – This research illustrates the various institutional logics that need to be addressed to professionalize financial planning in Australia. However, the data used is limited to that drawn from the parliamentary inquiries. Originality/value – Prior research on the emergence of professions such as accounting has shown that financial institutions are sites of professionalization. Our research shows that financial institutions impede professionalization in financial planning. Also, where the state granted legitimacy to other professions, our research indicates the state regulator’s logic of self-regulation has not legitimized financial planning.Item Open Access The role of financial risk-taking attitude in personal finances and consumer satisfaction: Evidence from Australia(International Journal of Bank Marketing, 2023-03-20) Tahir, Muhammad; Richards, Daniel; Ahmed, Abdullahi DahirPurpose – Financial risk-taking attitude (FRT) plays an important role in consumers' financial decisions, thereby determining consumer well-being. Motivated by the recent research on consumer well-being, this paper explores the relationships between financial literacy, a propensity to plan (PTP), a financial risk-taking attitude (FRT), financial satisfaction, and life satisfaction. Design/methodology/approach – We use the Household, Income and Labour Dynamics in Australia (HILDA) survey to achieve the purpose of this paper. Furthermore, we use the variance-based Partial Least Square Structural Equation Modelling (PLS-SEM), also known as the PLS path modelling approach to test our proposed hypotheses empirically. Findings – We find a strong partial mediation of FRT between financial literacy and financial satisfaction. Moreover, the analyses reveal that a high PTP combined with a high FRT results in achieving high financial satisfaction, which leads to improved life satisfaction. Practical implications – Our findings show the importance of creating financial plans in accordance with risk tolerance. While increasing financial literacy is relevant, our research suggests that tools that help consumers plan and invest in appropriate risky investments will lead to better outcomes. Originality/value – Though scholarly acumen of consumer well-being is rapidly developing, little remains known regarding the collective roles of financial literacy, a PTP, and FRT. We address this gap by showing that financial literacy, risk-taking attitudes, and planning propensities are all interconnected and necessary ingredients to improve financial and life satisfaction.Item Open Access The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction(International Journal of Bank Marketing, 2022-03-15) Tahir, Muhammad; Shahid, Ahmad Usman; Richards, DanielThis paper explores the direct and indirect associations between financial resilience and life satisfaction, using the moderation of non-impulsive behavior and mediation of financial satisfaction. We analyze the Australian household dataset, named the Household, Income and Labour Dynamics in Australia (HILDA) Survey, to meet the objectives of this paper. Furthermore, we use the PROCESS Models 4 and 7 to test the mediation and the combined moderated mediation relationships, respectively. We find the complete mediation of the relationship between financial resilience and life satisfaction by financial satisfaction. Also, we find that both financial resilience and non-impulsive behavior positively contribute to financial satisfaction, which is positively associated with life satisfaction. Our research supports the need for consumers to build emergency funds as financial resilience is related to consumer well-being. Our research also recommends that impulsive behavior should be addressed by the personal finance curriculum and financial advisors. Our research contributes by showing that financial satisfaction is an important predictor of consumers’ well-being. The ability to access financial resources, which increases for non-impulsive consumers, is associated with increased life satisfaction but only via financial satisfaction.