Weiqiang Tan

Purpose: Individuals experiencing financial anxiety often struggle with decision-making, feel financially helpless, and are less likely to seek support for informed decision-making, which can result in prolonged financial distress. This study investigates how financial literacy influences financial anxiety, drawing on the transactional theory of stress and coping (TTSC). Design/methodology/approach: We utilize the data from the 2018 and 2021 waves of the National Financial Capability Study. The potential influencing factor (financial literacy) is the participants’ answers to five objective financial literacy questions. Ordinary least squares regression models are used to detect potential factors associated with financial anxiety. Findings: Results reveal a significant negative correlation between financial literacy and financial anxiety among respondents. Improved financial literacy promotes planning ahead and curbs overspending, which helps lower anxiety. The effect is particularly pronounced among men, highly educated individuals, and those with higher incomes. Practical implications: The findings underscore the importance of enhancing financial literacy to alleviate financial anxiety and improve financial well-being, particularly through targeted education programs. The government and NGOs may put more effort into enhancing the residents’ financial literacy through a financial education program. Originality/value: This study is the first to explore how financial literacy relates to financial anxiety using TTSC. We also provide evidence on the mediating roles of planning ahead and reduced overspending in the negative relationship between financial literacy and financial anxiety.

This literature review comprehensively analyzes the evolving research on digital financial literacy (DFL) and synthesizes findings from 53 articles published between 2005 and 2025. The review was based on a systematic search across major academic databases. The analysis reveals DFL as a multidimensional construct encompassing the knowledge, skills, attitudes, and behaviors necessary for the secure utilization of digital financial services. The absence of a standardized definition and a unified measurement framework causes the field to suffer from conceptual divergence. The review synthesizes evidence regarding DFL's key sociodemographic determinants, such as age, gender, education, and income, and their significant socioeconomic effects. These effects include improved financial behavior, enhanced financial inclusion, and superior individual financial well‐being. Methodologically, the field is progressing beyond fundamental descriptive analyses toward robust techniques, including structural equation modeling and causal inference. Based on these findings, this review outlines a future research agenda to establish unified metrics, address disparities among vulnerable populations, and explore the implications of emerging technologies, such as artificial intelligence. This study provides a consolidated overview of the existing literature to guide subsequent scholarly inquiry and inform targeted educational and policy interventions that foster economic resilience within an increasingly digital financial landscape.

We study how households understand and respond to monetary policy by exploiting the open auctions of early-stage crowdfunding and inferring individuals’ expectations based on their maximum requested interest rates. Using loan listings from Prosper, we find that borrowers adjust their willingness-to-pay interest rates in response to unexpected Federal funds rate changes, whereas anticipated shifts have negligible effects. These responses are more pronounced among high-income, high-credit-score borrowers; large loan applicants; and when Federal Reserve communication is transparent. The responses are highly asymmetric—Borrowers sharply lower rates during unexpected easing but resist increasing them during unexpected tightening. The results are robust to alternative specifications, including regression-discontinuity-in-time designs and alternative measures of monetary policy shock. Lenders also respond to policy shocks and counteract borrowers’ adjustments. Analysis of Robinhood data shows that retail investors mirror this behavior by reducing equity holdings after surprise rate hikes. This paper was accepted by Kay Giesecke, finance. Funding: This work was supported by the general research fund from the Research Grant Council of Hong Kong [Grant 17504925], the Dean’s Research Fund of the Faculty of Liberal Arts and Social Sciences, The Education University of Hong Kong [Grant FLASS/DRF 04635], the Faculty Research Grants of Macau University of Science and Technology [Grant FRG-24-019-MSB], the Seed Funding Grant of EdUHK [Grant 02C11], and the Block Grant Blueprint of EdUHK [Grant 02A23]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2024.04649 .

Purpose: This study investigates how firms adjust their resource base in response to rising labor costs and whether these adjustments influence corporate social responsibility (CSR) performance. Design/methodology/approach: Using a sample of Chinese listed firms from 2010 to 2019, we examine the impact of minimum wage policies on CSR performance and explore the underlying mechanisms. Findings: We find that higher minimum wages significantly reduce firms' CSR performance by increasing labor costs and lowering CSR investments. This negative effect is moderated by product-market power, local economic development, technological orientation and skilled labor risk. We also observe a strategic shift in CSR activities: tactical CSR (e.g. donations) declines, while strategic CSR (e.g. sustainability investments) remains unchanged. Originality/value: This study provides novel insights into the ethical and strategic trade-offs firms face when responding to external cost pressures. By linking labor cost shocks to changes in CSR behavior, this study contributes to a deeper understanding of how economic mandates can indirectly shape corporate social engagement.

This study investigates whether companies strategically address corporate social responsibility (CSR) red flags to minimise their risks during periods of high economic policy uncertainty (EPU). We observe increased investment in social and environmental concerns amid EPU, particularly amongst firms with numerous institutional investors, those in consumer‐oriented sectors, and those with irreversible investments. Addressing CSR issues can enhance firms' trade credit and employee loyalty. Additionally, such investments can reduce firms' performance volatility in the face of elevated EPU. During periods of high EPU, firms actively reallocate resources to CSR while scaling back other investment activities, thereby demonstrating varying industry‐specific CSR priorities and emphasising a proactive risk management approach.

The concept of minimum wage policies is rooted in the ethical principle of ensuring a basic standard of living and fair compensation for workers, but its implementation is controversial. This study examines how firms adjust their resource base in response to labor costs and whether such adjustments affect corporate social responsibility (CSR) performance. We discover a significantly negative relationship between the minimum wage policy and firm CSR performance, using a sample of Chinese listed companies from 2010 to 2019. Channel tests suggest that the minimum wage policy considerably increases labor costs for firms, leading to a reduction in CSR performance by decreasing the level of CSR investments. In summary, our findings offer insights into how the adoption of higher minimum wage policies may engender ethical conflicts among various societal objectives.