What are theories about financial education?5 answersFinancial education is supported by various theories that aim to enhance financial literacy among individuals. Cognitive learning theory by Jean Piaget, discovery learning by Jerome Bruner, and social learning theory by Albert Bandura can be utilized to promote financial education in early childhood. Additionally, insights from behavioral finance, learning theories, and game design are integrated into serious games to improve financial decision-making skills. Financial education is crucial for informed decision-making in personal and social spheres, impacting financial fragility and economic independence, especially in old age and for women. Furthermore, different sociological perspectives, including functionalist, conflictualist, and interactionist perspectives, influence the design and implementation of financial education projects aimed at increasing financial literacy in various age groups. Financial literacy is measured through dimensions like perception, knowledge, ability, and application, focusing on topics such as retirement planning, inflation, numeracy, insurance, credit, savings, investment, and risk diversification.
What are the theories of financial management according to experts?5 answersFinancial management theories according to experts include the trade-off theory, pecking order theory, free cash flow theory, and the neoclassical economic theory. The trade-off theory and pecking order theory are prominent in the cash management practices of firms, while the free cash flow theory emphasizes the desire of managers to hold higher cash levels for greater control over financial and investment policies. The neoclassical economic theory forms the foundation of modern financial theory, which focuses on utility maximization and the aggregation of demand functions for investment and consumption. Additionally, the Soviet theory of financial management regulates methods and techniques within business entities or the state, complementing the Western theory that manages external financial flows and risks. These theories contribute to the development of an optimal financial management structure at both macro and microeconomic levels, improving overall efficiency.
What are the key theories and concepts in the political economy of money and finance?4 answersThe key theories and concepts in the political economy of money and finance include the importance of money in financial theory and the recognition of its role in macroeconomic analysis and monetary policy. There has been a rediscovery of the historical understanding of money as a public good rather than a private one, leading to a reevaluation of its value and cost under capitalism. The book by Tirado Cabal provides a coherent theory of value based on production rather than exchange, rejecting the surplus theory and emphasizing the connection between money and labor. The transformation of monetary, financial, and fiscal policy in the European Union has also been a significant development, with implications for the EU's role as an economic actor and its participation in international financial and economic cooperation. The relationship between politics and financial markets is a central focus in political economy, with implications for distributive effects, globalization, state autonomy, and economic credibility.
What are the different theories related to business finance?4 answersThere are several theories related to business finance. One major theory is the Modigliani-Miller theory, which states that firm values and real investment decisions are not affected by financing. Another theory is the trade-off theory, which suggests that firms balance the tax advantages of borrowing against the costs of financial distress. Agency theories propose that financing decisions are influenced by managers' personal incentives. The pecking-order theory suggests that financing adapts to mitigate problems created by differences in information. Additionally, there is the theory of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts, which form the theoretical basis for managerial finance. Veblen's theory of corporation finance also provides an alternative perspective, analyzing present-day corporate financial management.
What is theory about financial with author and year?5 answersThe theory about financial economics is a major theme in theoretical financial economics since 1973. It covers topics such as valuation, economics of uncertainty, and taxation in relation to financial markets and corporations. This theory is presented through reprinted articles followed by substantial essays by leading scholars in the field. Another aspect of this theory is the foundations of corporate finance and corporate governance. It argues that corporate finance and corporate governance must be treated simultaneously as they are complementary. The theory of capital structure, cost-of-capital, and firm valuation is also examined within the philosophical edicts of progress in science. It suggests that reformative thinking within the boundaries of dual rationality could be a solution to the lack of growth in scientific knowledge in this subset of financial economics. Additionally, finance is applied to the field of capital theory, providing a new perspective and analysis of long-standing problems in capital theory and business-cycle theories.
What are the interesting theories about financial mathematics?5 answersFinancial mathematics encompasses various interesting theories. One theory focuses on the interest rate of return and present value, which includes concepts such as compound interest, annuities, and loans. Another theory is the capital asset pricing model, which examines the relationship between risk and return in the valuation of assets. Financial mathematics also involves stochastic optimal control theory, which analyzes decision-making under uncertainty and its application in the financial field. Probability theory plays a crucial role in financial mathematics, providing methods for analyzing random variables, distributions, and simulation techniques. Additionally, non-linear pricing theory and backward stochastic differential equations are explored in financial mathematics to understand market imperfections and equilibrium. These theories contribute to the development and innovation of financial instruments and have a significant impact on the modern financial market.
