María-Celia López-Penabad

This study explores the relationship between financial capability and domestic bias in investment decisions among economics and business students at the University of Santiago de Compostela. Financial capability is defined as the combination of knowledge, attitudes, and behaviors that enable individuals to make informed financial decisions and manage their resources effectively. Employing a deductive approach rooted in the theory of bounded rationality and behavioral finance, a questionnaire was administered to 402 first‐ and fourth‐year students. Structural equation modeling (SEM) tested the hypotheses, revealing that financial capability is negatively related to domestic bias. Factors such as financial knowledge, attitudes, long‐term planning, price and expense analysis, and preventive behaviors significantly reduce under‐diversification in portfolios, thereby benefiting investor's financial well‐being. The relationship is further reinforced by the knowledge acquired during the degree program although no direct effect of academic seniority is observed. Although economics and business training may not directly lead to diversified portfolios, it helps mitigate domestic bias. The findings, situated in the Spanish context, provide implications for financial education and investor behavior.

Purpose: This study investigates how financial knowledge, behaviours, and attitudes shape the prevalence of financial biases among Economics students at the University of Santiago de Compostela. Methodology: Based on survey data from 403 first- and fourth-year students, a composite bias index—covering overconfidence, gambler’s fallacy, and herd behaviour—is constructed using the Benefit of the Doubt method. Truncated regressions explore the influence of financial capability. Findings: Results show attitudinal factors explain biases better than knowledge. Surprisingly, behaviours such as long-term planning and fraud avoidance increase susceptibility to biases. These findings highlight the complexity of financial decision-making and the need for emotionally aware, bias-targeted financial education. Value: This paper introduces a novel approach by constructing multiple financial bias indices and calling for hands-on, behaviour-focused financial education.

This study contributes to the literature on socially responsible investing by examining the diversification potential of green bonds and futures for a commodities’ index, gold and treasury bonds, alongside the SRI-KEHATI Index and the Dow Jones Sustainability Korea Index (DJSKI) from 2014 to 2024. Asymmetric Dynamic Conditional Correlation (A-DCC) models with GJR-GARCH in conditional variance and out-of-sample analysis are employed to explore dynamic conditional correlations, optimal weights and hedge ratios for stocks portfolio that include the SRI-KEHATI Index or the DJSKI. Constructing portfolios with optimal weights proves to be more effective in risk reduction compared to the hedge ratio strategy. The portfolio with optimal weights containing commodities exhibited the highest risk-adjusted return for both countries during the pre-war COVID-19 pandemic period, while in the subsequent period, portfolios containing gold performed best. Our findings provide valuable insights for investors, portfolio and risk managers, policymakers and index managers, aiding in improved risk management and decision-making for optimal portfolio allocation.

This study investigates the integration of Corporate Social Responsibility (CSR) within Microfinance Institutions (MFIs) in relation to Sustainable Development Goals. Through a Systematic Literature Review (SLR) and bibliometric analysis of 281 Scopus-indexed articles from January 1999 to November 2023, we delineate seven essential thematic clusters that define the CSR paradigm in MFIs: performance dimensions, balanced social and financial goals, improved social performance, qualitative perspectives, mission drift determinants, environmental sustainability, and funding sources and lending techniques. The study uncovers emerging research areas including the impact of digital-fintech innovations, climate change adaptations, the rise of Islamic microfinance, and explores significant gaps such as internationalization, corporate governance, gender diversity, and alternative funding mechanisms. These insights are pivotal for framing future research and offer critical guidance for policymakers and practitioners aiming to maximize the societal impacts of MFIs. Our analysis not only maps the current landscape but also sets a comprehensive agenda for enhancing CSR’s role in achieving sustainable development, thus providing a strategic framework for ongoing empirical and theoretical advancements.

The socio-labor inclusion of people with disabilities represents a substantial social challenge in European countries, particularly in Spain. Sheltered Workshops (SWs), a type of Work Integration Social Enterprise, are companies specifically designed to provide employment opportunities for individuals with disabilities, offering ongoing support throughout the integration process. SWs need to be profitable to sustain their social contributions. This study investigates the determinants of profitability for SWs in Spain, analyzing a sample of 1133 entities from 2010 to 2020. Using a static panel data model (random effects) and a dynamic panel data model (Generalized Method of Moments, GMM system), we estimate, among other factors, the impact of efficiency on profitability, with efficiency scores calculated via data envelopment analysis (DEA). Our findings reveal that the positive effect of operational efficiency outweighs the negative effect of social efficiency, resulting in a net positive impact of overall efficiency on profitability. The SWs were able to operate effectively to meet the needs of people with disabilities while achieving financial viability by combining social and economic goals. The study shows no significant differences in these effects when considering the legal status of the SWs (for-profit vs. non-profit). Additional factors influencing SW performance include size, low risk, and leverage, which have a positive impact, while age, liquidity, and tangibility generally have a negative and significant effect. During both the financial and COVID-19 crises, SWs experienced lower profitability; however, a positive and significant relationship between efficiency and profitability was observed during the COVID-19 crisis. The robustness of our results was confirmed through alternative measures of efficiency and performance and by addressing potential endogeneity issues. Understanding how financial and social factors influence profitability helps policymakers develop growth and sustainability policies for SWs and enables practitioners to identify strengths and weaknesses, facilitating better decision-making.

The relationship between Environmental Social and Governance (ESG) activities and financial performance has been explored within large companies. The presence of these activities in Small and Medium Enterprises (SMEs) is still in its early stages in the literature, requiring further empirical evidence. Given the importance of SMEs in economy and based on Stakeholder Theory, a set of hypotheses regarding the influence of ESG on financial and risk performance has been tested using a sample of 538 Spanish SMEs. Specifically, an index has been developed to assess ESG at both global and individual levels. The study analyses the impact of these variables on corporate performance, taking into account factors such as the pandemic period, level of disclosure and the size effect. The results demonstrate the importance of developing and index tailored to measuring ESG within this type of company, as the methodology employed can impact the outcomes. Moreover, at the individual level, all dimensions reflect a significant relationship, but the overall ESG score does not. The social and labor dimensions prove to be the most beneficial indices for enhancing resilience during periods of crisis. Finally, the findings confirm that it is more difficult for SMEs to monetize the results of ESG investment and that disclosing these activities has a positive impact. This study contributes to existing knowledge by constructing a robust measure of the level of ESG implementation and quality, providing valuable insights for SMEs on how to effectively manage their ESG activities.