nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2019‒05‒20
three papers chosen by

  1. The Microfinance Alphabet By Marek Hudon; Marc Labie; Ariane Szafarz
  2. What economics education is missing: The real world By Pühringer, Stephan; Bäuerle, Lukas
  3. The Governance of Risk Management: The Importance of Directors’ Independence and Financial Knowledge By Dionne, Georges; Maalaoui Chun, Olfa; Triki, Thouraya

  1. By: Marek Hudon; Marc Labie; Ariane Szafarz
    Abstract: Much has been learnt in microfinance over the last ten years. But there is yet so much to discover on how to improve financial inclusion and development. This paper offers an—evidently subjective—microfinance alphabet, hoping to so provide the microfinance scientific community with an opportunity to “read together” both where we stand and where we are heading.
    Keywords: Microfinance; Microcredit; Financial inclusion; Social finance; Hybrid organizations; Portsmouth
    JEL: G21 G23 O16 G32 O19
    Date: 2019–05–10
  2. By: Pühringer, Stephan; Bäuerle, Lukas
    Abstract: The global financial crisis (GFC) led to increasing distrust in economic research and the economics profession, in the process of which the current state of economics and economic education in particular were heavily criticized. Against this background we conducted a study with undergraduate students of economics in order to capture their view of economic education. The paper is based on the Documentary Method, a qualitative empirical method, which combines maximum openness with regard to the collection of empirical material coupled with maximum rigor in analysis. The empirical findings show that students enter economics curricula with (1) epistemic, (2) practical or (3) moral/political motivations for understanding and dealing with real-world problems but end up remarkably disappointed after going through the mathematical and methods-orientated introductory courses. The findings further indicate that students develop strategies to cope with their disappointment - all of them relating to their original motivation. The theoretical contextualization of the empirical findings is based on the psychological concept of cognitive dissonance.
    Keywords: Economic education,real-world orientation,cognitive dissonance,Global Financial Crisis,qualitative social research,Documentary Method
    JEL: A10 A11 A12 A20 B49
    Date: 2018
  3. By: Dionne, Georges (HEC Montreal, Canada Research Chair in Risk Management); Maalaoui Chun, Olfa (HEC Montreal, Canada Research Chair in Risk Management); Triki, Thouraya (HEC Montreal, Canada Research Chair in Risk Management)
    Abstract: This paper tests the effects of the independence and financial knowledge of directors on risk management and firm value in the gold mining industry. Our original hand-collected database on directors’ financial education, accounting background, and financial experience allows us to test the effect of each dimension of financial knowledge on risk management activities. We show that directors’ financial knowledge increases firm value through the risk management channel. This effect is strengthened by the independence of the directors on the board and on the audit committee. Extending the dimension of education, we show that, following unexpected shocks to gold prices, educated hedgers are more effective than average hedgers in the industry. As a policy implication, our results suggest adding the experience and education dimensions to the 2002 Sarbanes–Oxley Act and New York Stock Exchange requirements for financial literacy.
    Keywords: Risk management governance; financial knowledge; financial and accounting education of director; financial experience of director; independence of director; policy implications.
    JEL: D83 G18 G30 G32 G34 G38
    Date: 2018–01–04

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.