financial in thesis

• How it works

"Christmas Offer"

Terms & conditions.

As the Christmas season is upon us, we find ourselves reflecting on the past year and those who we have helped to shape their future. It’s been quite a year for us all! The end of the year brings no greater joy than the opportunity to express to you Christmas greetings and good wishes.

At this special time of year, Research Prospect brings joyful discount of 10% on all its services. May your Christmas and New Year be filled with joy.

We are looking back with appreciation for your loyalty and looking forward to moving into the New Year together.

"Claim this offer"

In unfamiliar and hard times, we have stuck by you. This Christmas, Research Prospect brings you all the joy with exciting discount of 10% on all its services.

Offer valid till 5-1-2024

We love being your partner in success. We know you have been working hard lately, take a break this holiday season to spend time with your loved ones while we make sure you succeed in your academics

Discount code: RP23720

Published by Nicolas at January 17th, 2024 , Revised On January 23, 2024

How To Write A Finance Thesis (With Free Topics)

The word “thesis” can evoke a range of emotions in a finance student – excitement, trepidation, and perhaps even a healthy dose of imposter syndrome. This guide is your roadmap to writing a stellar finance thesis. Before reading this, make sure that you know whether you are writing a dissertation or a thesis .

Table of Contents

What Is A Finance Thesis

A finance thesis is an academic document that explores a specific topic within the field of finance in a detailed and comprehensive manner. It is a substantial piece of scholarly work typically required as part of an advanced degree program, such as a master’s or a Ph.D. in finance or a related discipline.

The primary purpose of a finance thesis is to demonstrate the author’s understanding of financial concepts, theories, and methodologies, as well as their ability to conduct original research and contribute new insights to the field.

Structure Of A Finance Thesis

A finance thesis follows a typical research paper format but with an in-depth analysis of each section. Here are the elements that you must include in your finance thesis. 

Introduction   

To captivate your audience from the outset, begin with a compelling hook that sparks interest in your finance thesis. This could be a thought-provoking statistic, a relevant anecdote, or a compelling question. By engaging readers early on, you set the tone for an impactful thesis.

Following the hook, provide a brief but comprehensive overview of the background and context of your finance thesis. Explain the relevance of your chosen topic. This section serves as a foundation for readers, ensuring they understand the context before delving into the specifics of your research.

Introducing The Thesis Statement

The crux of your introduction lies in presenting a clear and concise thesis statement . Articulate the main argument or hypothesis of your finance thesis. Ensure that it is specific, focused, and indicative of the direction your research will take. This roadmap prepares your readers for the journey they are about to embark on throughout the remainder of your thesis.

Literature Review

In the literature review section, write about the existing body of knowledge related to your finance thesis. Provide a comprehensive review of relevant literature, identifying key theories, concepts, and empirical studies. Demonstrate your understanding of the current state of research in your chosen area and highlight any gaps or unresolved questions that your thesis aims to address.

• Identify key academic journals and publications in your field.
• Critically analyze relevant research papers , and understand their methodologies and findings.
• Build upon existing research by identifying gaps or proposing alternative approaches.
• Take meticulous notes and maintain proper citation practices.

Methodology

Clearly articulate the methods and procedures employed in your research. Detail the rationale behind your chosen methodology, whether it involves quantitative or qualitative approaches, surveys, case studies, or a combination. 

By providing a transparent account of your research design, you establish credibility and enable others to replicate or validate your findings.

Present the findings of your research in a systematic and organized manner. Use tables, graphs, and charts to illustrate key data points. Ensure that the results align with your research questions and hypotheses . 

This section should be objective, presenting the outcomes without interpretation or analysis—save that for the next section.

Engage in a critical analysis and interpretation of your results in the discussion section. Relate your findings to the existing literature and theories. Address any unexpected results and explore their implications. 

Consider the limitations of your study and propose avenues for future research. This section is where you showcase your analytical skills and contribute to the scholarly conversation in your field.

Summarize the key points of your thesis, emphasizing the significance of your findings in the broader context of finance research. Revisit your thesis statement and demonstrate how your research has contributed to the understanding of the topic. Leave your readers with a lasting impression and a sense of closure.

Abstract And Acknowledgments

Craft a concise yet informative abstract that provides a snapshot of your entire finance thesis, including the research question, methods, results, and conclusions. In the acknowledgment section, acknowledge the contributions of others who have supported and influenced your research journey. 

Express gratitude for mentorship, guidance, and any financial or logistical assistance received during the thesis process.

The finance homework we write have:

• Precision and Clarity
• Zero Plagiarism
• High-level Encryption
• Authentic Sources

Bonus Finance Thesis Tips

• Seek guidance and support: Use your advisor, professors, and peers for feedback and mentorship.
• Manage your time effectively: Prioritize tasks, set realistic deadlines, and avoid procrastination.
• Maintain a healthy work-life balance: Take breaks, exercise, and prioritize your well-being.
• Celebrate your achievements: Recognize your progress, reward yourself for milestones reached, and enjoy the journey!

Free Finance Thesis Topics

Here is a list of free finance thesis topics to help you start your journey. These topics will help you, especially if you are studying at a university in Canada .

• The Role of Financial Education in Improving Personal Financial Management
• Impact of Interest Rate Changes on Investment Decisions
• Evaluating the Effectiveness of Financial Derivatives in Risk Management
• Behavioural Biases in Investment Decision-Making
• Corporate Social Responsibility and Financial Performance: A Meta-Analysis
• The Influence of Credit Rating Agencies on Financial Markets
• Dynamics of Exchange Rates and International Trade: A Comparative Study
• Private Equity Investments and Value Creation in Portfolio Companies
• Assessing the Impact of Regulatory Changes on Banking Sector Stability
• Islamic Finance: Principles and Practices in Contemporary Banking

MBA Finance Thesis Topics

• Mergers and Acquisitions: Evaluating the Financial Performance and Success Factors
• Credit Risk Management in Commercial Banks: A Comparative Analysis
• Financial Innovation and its Impact on Investment Strategies
• Portfolio Management Strategies for Long-Term Wealth Creation
• Analysis of the Relationship between Dividend Policy and Stock Prices
• Financial Distress and Corporate Turnaround Strategies: A Case Study Approach
• Impact of Corporate Governance on Financial Reporting and Transparency
• Real Options Analysis in Capital Budgeting: A Comparative Study
• Role of Microfinance in Promoting Financial Inclusion and Poverty Alleviation
• Hedging Strategies in International Financial Management: A Case Study of Multinational Corporations

Master Thesis Finance Topics

• The Impact of Financial Technology (FinTech) on Investment Strategies
• Analyzing the Efficiency of Financial Markets: A Study of Random Walk Hypothesis
• Venture Capital and Start-up Financing: Trends and Challenges
• Corporate Financial Strategy: An Empirical Analysis of Successful Companies
• The Role of Central Banks in Economic Stability: Lessons from Recent Financial Crises
• Cryptocurrency and Blockchain Technology: Implications for the Financial Industry
• Environmental, Social, and Governance (ESG) Investing: Performance and Trends
• Derivatives and Risk Management: A Comparative Study of Hedging Strategies
• Financial Modeling for Valuation: Techniques and Applications
• Sustainable Finance and Green Investments: Assessing Long-Term Viability

Accounting And Finance Thesis Topics

• The Impact of International Financial Reporting Standards (IFRS) on Corporate Accounting Practices
• Fraud Detection and Prevention in Financial Statements: A Case Study Approach
• Auditor Independence and the Quality of Financial Reporting
• Blockchain Technology in Accounting: Opportunities and Challenges
• Corporate Governance and Financial Reporting Quality: An Empirical Analysis
• Tax Planning Strategies for Multinational Corporations: A Comparative Study
• The Role of Accounting Information in Investment Decision-Making
• Sustainability Reporting: Assessing the Integration of Environmental, Social, and Governance (ESG) Factors
• Financial Statement Analysis for Credit Risk Assessment: A Comparative Study of Industries
• Impact of Accounting Information Systems on Organizational Performance

Banking And Finance Thesis Topics

• The Role of Banking in Economic Development: A Comparative Study
• Analysis of the Impact of Interest Rate Changes on Banks’ Profitability
• Digital Transformation in Banking: Opportunities and Challenges
• Credit Risk Management in Commercial Banks: A Case Study Approach
• Islamic Banking and Finance: Principles and Contemporary Practices
• Financial Inclusion and its Impact on Economic Growth: A Global Perspective
• Regulatory Compliance and Risk Management in the Banking Sector
• The Effectiveness of Central Bank Policies in Controlling Inflation
• Financing Small and Medium Enterprises (SMEs): Challenges and Solutions
• Financial Market Integration and its Implications for Banking Institutions

Corporate Finance Topics For Thesis

• Capital Structure Decisions: An Empirical Analysis of Firm Performance
• Corporate Valuation Methods: A Comparative Study of DCF, Comparable Companies, and Precedent Transactions
• Dividend Policy and its Impact on Shareholder Value
• Financial Distress and Restructuring Strategies: A Case Study Analysis
• Mergers and Acquisitions: Value Creation and Integration Challenges
• The Role of Corporate Governance in Shaping Financial Policies
• IPOs and Firm Performance: A Longitudinal Analysis
• Working Capital Management: Strategies for Efficient Cash Conversion
• Corporate Risk Management: Hedging Strategies and Their Effectiveness
• Financial Fraud in Corporations: Detection and Prevention Measures

Public Finance Thesis Topics

• Government Expenditure and Economic Growth: A Cross-Country Analysis
• Tax Policy and Economic Development: Case Studies from Emerging Economies
• Public-Private Partnerships (PPPs) in Infrastructure Development: Successes and Challenges
• Fiscal Policy and Macroeconomic Stability: An Empirical Investigation
• The Impact of Social Welfare Programs on Poverty Alleviation
• Analysis of Government Debt: Causes, Consequences, and Management Strategies
• Efficiency of Public Sector Budgeting: A Comparative Study
• Environmental Taxation and its Role in Sustainable Development
• Evaluating the Effectiveness of Anti-Corruption Measures in Public Finance
• The Role of Fiscal Federalism in Regional Development: Lessons from Different Countries

Sports Finance Thesis Topics

• Financial Management in Professional Sports Franchises: Challenges and Strategies
• Impact of Sports Sponsorship on Brand Equity and Financial Performance
• Economic Impact of Major Sporting Events: A Case Study Approach
• Player Contract Valuation and Negotiation Strategies in Professional Sports
• Revenue Generation in Sports: Analysis of Ticket Sales, Broadcasting Rights, and Merchandising
• Financial Fair Play Regulations in Football: Implications and Effectiveness
• Investment and Financing in Sports Facilities: Case Studies of Stadium Construction
• Sports Betting and its Economic Impact on Sports Organizations
• Athlete Endorsements and their Influence on Corporate Financial Performance
• Risk Management in Sports Finance: A Comparative Analysis of Leagues and Teams

Sustainable Finance Thesis Topics

• Impact Investing: Evaluating Social and Environmental Returns
• Integration of Environmental, Social, and Governance (ESG) Criteria in Investment Decision-Making
• Green Bonds and Sustainable Capital Markets: Trends and Challenges
• Corporate Social Responsibility Reporting: Assessing Transparency and Accountability
• Climate Finance and its Role in Mitigating Climate Change
• Sustainable Banking Practices: A Comparative Analysis of Global Banks
• The Influence of Sustainability Ratings on Investment Decisions
• Circular Economy and Sustainable Finance: Promoting Resource Efficiency
• Measuring the Social Impact of Microfinance Institutions
• Sustainable Real Estate Investments: Green Building and ESG Considerations

Frequently Asked Questions

What is the best topic for thesis in finance.

The best topic for a finance thesis depends on individual interests and goals, but potential options include behavioural finance, risk management, fintech innovation, sustainable finance, or financial market anomalies. Choose a topic that aligns with your passion and contributes to the field’s knowledge.

How do I choose a dissertation topic for finance?

Choose a finance dissertation topic by identifying your interests, exploring current financial trends, considering gaps in existing literature, consulting with professors or industry professionals, and ensuring the topic aligns with your academic and career goals.

How do you select a research topic in finance?

Select a finance research topic by assessing your interests, identifying gaps in existing literature, staying updated on industry trends, consulting with mentors, and ensuring the topic aligns with your academic and career objectives. Aim for relevance, originality, and contribution to financial knowledge.

What are the finance research topics for MBA?

Finance research topics for an MBA may include investment analysis, financial risk management, behavioural finance, corporate governance, mergers and acquisitions, the impact of financial technology (fintech), sustainable finance, or financial market efficiency. Choose a topic aligned with your interests and career goals.

You May Also Like

Discover the factors influencing dissertation length and find guidance on typical page ranges for shorter, average, and longer dissertations.

Mediating variables explain the relationship, while moderating variables influence its strength or direction under different conditions.

Explore the essential elements in choosing effective control variables for robust and valid research outcomes.

Ready to place an order?

USEFUL LINKS

Learning resources.

COMPANY DETAILS

• How It Works

Accounting and Finance Thesis Topics

This page provides a comprehensive list of accounting and finance thesis topics designed to assist students in selecting an impactful subject for their thesis. Whether you are pursuing undergraduate, graduate, or postgraduate studies, the diverse array of topics presented here covers a broad spectrum of specialties within the field of accounting and finance. From traditional areas like audit and taxation to emerging fields like fintech and behavioral finance, this collection aims to cater to a variety of research interests and academic requirements. Each category is meticulously curated to inspire innovative thinking and encourage a deeper exploration of both established and contemporary issues in the discipline.

600 Accounting and Finance Thesis Topics

Academic Writing, Editing, Proofreading, And Problem Solving Services

Get 10% off with 24start discount code, browse accounting and finance thesis topics:.

• Accounting Thesis Topics
• Audit Thesis Topics
• Banking Thesis Topics
• Behavioral Finance Thesis Topics
• Capital Markets Thesis Topics
• Corporate Finance Thesis Topics
• Corporate Governance Thesis Topics
• Finance Thesis Topics
• Financial Economics Thesis Topics
• Financial Management Thesis Topics
• Fintech Thesis Topics
• Insurance Thesis Topics
• International Finance Thesis Topics
• Investment Thesis Topics
• Management Accounting Thesis Topics
• Personal Finance Thesis Topics
• Public Finance Thesis Topics
• Quantitative Finance Thesis Topics
• Risk Management Thesis Topics
• Taxation Thesis Topics

1. Accounting Thesis Topics

• The impact of artificial intelligence on financial reporting and compliance.
• Blockchain technology in accounting: disrupting traditional processes.
• The role of ethical leadership in promoting sustainable accounting practices.
• Comparative analysis of global accounting standards post-IFRS adoption.
• Cultural influences on multinational accounting practices.
• The future of green accounting in corporate sustainability initiatives.
• Digital currencies and their accounting implications within multinational corporations.
• The efficacy of automated accounting systems in small to medium enterprises.
• Forensic accounting as a tool against cyber financial fraud.
• Tax strategy and accounting ethics in the digital age.
• Non-profit accounting challenges in a post-pandemic world.
• Gig economy impacts on financial reporting and tax obligations.
• Continuous auditing in real-time financial data environments.
• Ethical conflicts in accounting decisions: a case study analysis.
• The integration of blockchain for transparency in financial auditing.
• Strategic management accounting techniques in agile organizations.
• Predictive analytics in accounting and its impact on business strategy.
• Cost management innovations in healthcare accounting.
• Regulatory impacts on financial disclosures and corporate accounting.
• Innovative financial planning tools for startup sustainability.
• The role of environmental, social, and governance (ESG) criteria in financial decision-making.
• Public sector accountability and accounting reforms.
• Big data analytics in financial statement analysis.
• Adapting accounting frameworks for emerging markets.
• The dynamics of accounting professionalism and ethical standards.
• Real-time financial reporting: challenges and advantages.
• Mergers and acquisitions: accounting for corporate restructuring.
• Artificial intelligence in audit operations: reshaping traditional frameworks.
• Corporate sustainability reporting: critical analysis of current practices.
• Tax evasion strategies and their impact on international accounting standards.

2. Audit Thesis Topics

• The effectiveness of continuous auditing in detecting and preventing fraud.
• Implementing a risk-based auditing framework in emerging markets.
• Enhancing corporate governance with robust audit committee functions.
• The comparative reliability of external audits versus internal controls.
• The impact of the latest regulatory frameworks on auditing standards.
• Ensuring auditor independence in a complex corporate milieu.
• Blockchain applications in enhancing audit trail transparency.
• Strategies for cybersecurity audits in financial institutions.
• Cultural impacts on audit practices in global organizations.
• The future of auditing: integrating real-time data analytics.
• The relationship between audit quality and investment decisions.
• Leveraging machine learning for enhanced audit precision.
• Auditing ethics in the face of financial technology innovations.
• The role of internal audits in reinforcing cybersecurity measures.
• Auditing challenges in decentralized platforms using blockchain technology.
• Comparative study of traditional and modern audit methodologies.
• The impact of data privacy regulations on audit practices globally.
• Developing effective audit strategies for cloud-based accounting systems.
• The role of audits in enhancing business resilience during economic downturns.
• Fraud detection techniques in an AI-driven audit environment.
• The effectiveness of environmental auditing in promoting corporate sustainability.
• Auditing for non-financial information: challenges and methodologies.
• Enhancing the transparency of public sector audits to improve trust.
• Implementing forensic auditing techniques in corporate fraud detection.
• The evolution of auditing standards in response to global financial crises.
• The role of technology in transforming audit documentation and reporting.
• Impact of auditor-client relationships on audit quality.
• Strategies for overcoming challenges in cross-border audit practices.
• Auditing supply chain operations for financial integrity and sustainability.
• The future of regulatory audits in a dynamically changing global market.

3. Banking Thesis Topics

• The future of digital banking post-COVID-19.
• Analyzing the impact of blockchain technology on international banking transactions.
• The role of central banks in managing digital currency implementations.
• Sustainable banking practices: integrating ESG factors into bank operations.
• The evolution of consumer banking behavior influenced by mobile technologies.
• Cybersecurity strategies in banking: preventing breaches in a digital age.
• The effectiveness of monetary policy in digital banking ecosystems.
• Banking regulations and their impact on global economic stability.
• Fintech innovations and their integration into traditional banking systems.
• The impact of banking deserts on rural economic development.
• Artificial intelligence in banking: reshaping customer service and risk management.
• The role of ethical banking in promoting financial inclusion.
• Impact of Brexit on UK banking: challenges and opportunities.
• Stress testing in banks: approaches and implications for financial stability.
• Consumer data protection in online banking: challenges and solutions.
• The influence of microfinancing on developing economies.
• The impact of interest rate changes on banking profitability.
• Role of banking in supporting sustainable energy financing.
• Technological disruptions in banking: a threat or an opportunity?
• The effect of global banking regulations on emerging market economies.
• Strategies for managing credit risk in post-pandemic recovery phases.
• The growing role of Islamic banking in the global finance sector.
• The impact of non-traditional banking platforms on financial services.
• Data analytics in banking: enhancing decision-making processes.
• Cross-border banking challenges in a globalized economy.
• The future of branchless banking: implications for customer engagement.
• Banking transparency and its effects on consumer trust.
• The role of banks in facilitating international trade.
• Innovations in mortgage banking and their impact on housing markets.
• The effects of banking consolidation on competition and service delivery.

4. Behavioral Finance Thesis Topics

• The psychological effects of financial losses on investment behavior.
• Behavioral biases in financial decision-making: a case study of stock market investors.
• The impact of social media on investor behavior and market outcomes.
• Cognitive dissonance and its effect on personal financial planning.
• The role of emotional intelligence in financial trading success.
• Exploring the herding behavior in cryptocurrency markets.
• Behavioral finance strategies to mitigate impulse spending.
• The influence of cultural factors on investment decisions.
• Psychological factors driving risk tolerance among millennials.
• The effect of behavioral finance education on individual investment choices.
• Overconfidence and trading: an analysis of its impact on stock returns.
• Decision-making processes under financial stress: a behavioral perspective.
• The role of behavioral factors in the success of financial advisement.
• The impact of behavioral insights on retirement savings plans.
• Anchoring bias in financial forecasting and market predictions.
• The role of optimism and pessimism in financial markets.
• Behavioral finance and its role in shaping sustainable investing.
• Understanding the gap between perceived and actual financial knowledge.
• Behavioral interventions to improve financial literacy.
• The influence of personality traits on financial decision-making.
• Behavioral economics: redesigning financial products for better decision outcomes.
• The effectiveness of nudge theory in personal finance management.
• The impact of financial anxiety on decision-making efficiency.
• The behavioral aspects of financial negotiation.
• Market sentiment analysis: behavioral finance in algorithmic trading.
• The psychological impact of financial news on market movements.
• Behavioral finance insights into crowd-funding behaviors.
• Ethical considerations in behavioral finance research.
• The influence of age and life stage on financial risk-taking.
• Behavioral finance in corporate decision-making: case studies of strategic financial planning.

5. Capital Markets Thesis Topics

• The future trajectory of global capital markets in the post-pandemic era.
• Impact of quantitative easing on emerging market economies.
• The role of technology in enhancing liquidity in capital markets.
• Analysis of market efficiency in different economic cycles.
• The effects of political instability on capital market performance.
• Environmental, Social, and Governance (ESG) criteria and their impact on capital market trends.
• Cryptocurrency as an emerging asset class in capital markets.
• The role of sovereign wealth funds in global capital markets.
• Algorithmic trading and its influence on market dynamics.
• The impact of international sanctions on capital markets.
• High-frequency trading: market benefits and systemic risks.
• The role of capital markets in financing green energy initiatives.
• Impact of fintech on traditional capital market structures.
• Corporate bond markets and their responsiveness to economic changes.
• The influence of central bank policies on capital market stability.
• Market anomalies and behavioral economics: exploring the deviations from market efficiency.
• The role of investor sentiment in capital market fluctuations.
• Crowdfunding as an alternative financing mechanism in capital markets.
• Regulatory challenges facing capital markets in developing countries.
• The future of securitization post-global financial crisis.
• Derivatives markets and their role in risk management.
• The impact of technology IPOs on market perceptions.
• Venture capital and its influence on market innovation.
• Corporate governance and its effect on equity prices.
• The role of market makers in maintaining market stability.
• Ethical investing and its traction in the capital market.
• The impact of demographic shifts on investment trends.
• The interplay between macroeconomic policies and capital market growth.
• Leveraging machine learning for capital market predictions.
• The role of media in shaping public perceptions of capital markets.

6. Corporate Finance Thesis Topics

• The impact of global economic shifts on corporate financing strategies.
• Analyzing the role of corporate finance in driving sustainable business practices.
• The influence of digital transformation on corporate financial management.
• Risk management in corporate finance during uncertain economic times.
• The effects of corporate financial restructuring on shareholder value.
• Financing innovation: How corporations fund new technology investments.
• The role of private equity in corporate finance.
• Strategies for managing corporate debt in a fluctuating interest rate environment.
• Impact of mergers and acquisitions on corporate financial health.
• ESG (Environmental, Social, and Governance) factors in corporate finance decisions.
• The future of corporate finance in the era of blockchain and cryptocurrencies.
• The role of financial analytics in optimizing corporate investment decisions.
• Corporate finance challenges in emerging markets.
• Venture capital and its impact on corporate growth.
• Corporate financial transparency and its effect on investor relations.
• The role of CFOs in navigating new global tax laws.
• Financial technology innovations and their implications for corporate finance.
• The impact of international trade agreements on corporate financing.
• Corporate finance strategies in the healthcare sector.
• The influence of shareholder activism on corporate financial policies.
• The future of corporate banking relationships.
• Capital allocation decisions in multinational corporations.
• The role of artificial intelligence in financial forecasting and budgeting.
• The impact of demographic changes on corporate finance strategies.
• Managing financial risks associated with climate change.
• The role of corporate finance in business model innovation.
• Financing strategies for startups versus established firms.
• The effect of corporate culture on financial decision-making.
• Corporate governance and its influence on financial risk management.
• The evolving landscape of securities regulations and its impact on corporate finance.

7. Corporate Governance Thesis Topics

• The impact of governance structures on corporate sustainability and responsibility.
• Board diversity and its effect on corporate decision-making processes.
• Corporate governance mechanisms to combat corruption and enhance transparency.
• The role of stakeholder engagement in shaping governance practices.
• Analyzing the effectiveness of corporate governance codes across different jurisdictions.
• The influence of technology on corporate governance practices.
• Governance challenges in family-owned businesses.
• The impact of corporate governance on firm performance during economic crises.
• Shareholder rights and their enforcement in emerging market economies.
• The future of corporate governance in the digital economy.
• The role of ethics in corporate governance.
• Corporate governance and risk management: interlinkages and impacts.
• The effects of regulatory changes on corporate governance standards.
• ESG integration in corporate governance.
• The role of internal audits in strengthening corporate governance.
• Corporate governance in non-profit organizations.
• The influence of activist investors on corporate governance reforms.
• The effectiveness of whistleblower policies in corporate governance.
• Cybersecurity governance in large corporations.
• Succession planning and governance in large enterprises.
• The impact of international governance standards on local practices.
• The role of governance in preventing financial fraud.
• Corporate governance in the fintech industry.
• The relationship between corporate governance and corporate social responsibility.
• The impact of global economic policies on corporate governance.
• Data privacy and security: Governance challenges in the information era.
• The role of governance in managing corporate crises.
• The impact of leadership styles on corporate governance effectiveness.
• Corporate governance and its role in enhancing business competitiveness.
• The evolving role of board committees in strategic decision-making.

8. Finance Thesis Topics

• Financial implications of global climate change initiatives.
• The future of financial markets in the face of geopolitical uncertainties.
• The impact of microfinance on poverty alleviation in developing countries.
• Cryptocurrency: emerging financial technology and its regulatory challenges.
• The role of financial institutions in fostering economic resilience.
• Innovations in financial products for an aging global population.
• The impact of digital wallets on traditional banking systems.
• Financial literacy and its role in promoting socio-economic equality.
• The effect of fintech on the global remittance landscape.
• Risk management strategies in finance post-global financial crisis.
• The influence of behavioral finance on investment strategies.
• The evolving role of central banks in digital currency markets.
• Financing sustainable urban development.
• The impact of artificial intelligence on personal finance management.
• Peer-to-peer lending and its effect on traditional credit markets.
• The role of finance in facilitating international trade and development.
• The implications of Brexit on European financial markets.
• Financial derivatives and their role in modern economies.
• The effects of sanctions on financial transactions and economic stability.
• The future of investment banking in a technology-driven world.
• Financial models for predicting economic downturns.
• The impact of financial education on consumer behavior.
• Securitization of assets: benefits and risks.
• The role of financial services in disaster recovery and resilience.
• Emerging trends in global investment patterns.
• Financial strategies for managing corporate mergers and acquisitions.
• The influence of cultural factors on financial systems and practices.
• The effectiveness of financial sanctions as a geopolitical tool.
• The future of financial privacy in an interconnected world.
• The role of finance in promoting renewable energy investments.

9. Financial Economics Thesis Topics

• The economic impact of quantitative easing in developed versus emerging markets.
• The implications of negative interest rates for global economies.
• Economic predictors of financial market behavior in crisis periods.
• The relationship between government debt and economic growth.
• Economic consequences of income inequality on national financial stability.
• The effects of consumer confidence on economic recovery.
• The role of economic policy in shaping housing market dynamics.
• The impact of global trade wars on financial economics.
• The influence of demographic shifts on economic policy and financial markets.
• Macroeconomic factors influencing cryptocurrency adoption.
• The role of economic theory in developing financial regulation.
• The impact of tourism economics on national financial health.
• Economic strategies for combating hyperinflation.
• The role of sovereign wealth funds in global economic stability.
• Economic analyses of environmental and resource economics.
• The implications of fintech on traditional economic models.
• Economic impacts of global pandemic responses by governments.
• The future of labor markets in a digitally transforming economy.
• Economic considerations in renewable energy finance.
• The economics of privacy and data security in financial transactions.
• The role of international economic organizations in financial regulation.
• Economic effects of technological innovation on traditional industries.
• The impact of economic sanctions on international relations and finance.
• The role of consumer spending in economic recovery phases.
• Economic policies for addressing wealth gaps.
• The economic impact of climate change on financial sectors.
• The role of economic research in crafting sustainable development goals.
• The economics of health and its impact on national economies.
• Global economic trends and their implications for financial forecasting.
• The relationship between educational economics and workforce development.

10. Financial Management Thesis Topics

• The strategic role of financial management in corporate sustainability.
• Impact of global financial regulations on corporate financial management.
• Financial management techniques for optimizing supply chain operations.
• The role of financial management in crisis recovery and resilience.
• Emerging technologies in financial management systems.
• The impact of corporate social responsibility on financial management strategies.
• Financial planning for long-term business growth in volatile markets.
• The influence of global economic conditions on financial management practices.
• Financial management challenges in the nonprofit sector.
• The role of financial management in mergers and acquisitions.
• The impact of digital currencies on corporate financial management.
• Financial risk management strategies in an era of global uncertainty.
• The role of financial management in enhancing operational efficiency.
• Financial management best practices in the tech industry.
• The impact of consumer behavior trends on financial management.
• Financial management in the healthcare sector: Challenges and strategies.
• The influence of artificial intelligence on financial decision-making processes.
• Financial management strategies for small and medium-sized enterprises (SMEs).
• The role of financial management in international expansion.
• Ethical considerations in financial management practices.
• Financial management in the energy sector: challenges and innovations.
• Financial strategies for managing environmental risks.
• The role of financial management in startup success and sustainability.
• The impact of financial transparency on corporate governance.
• Financial management and investor relations: integrating strategic communication.
• The role of financial management in educational institutions.
• Managing financial instability in emerging markets.
• Financial management practices in the gig economy.
• The role of financial managers in driving business model innovations.
• Financial management tools for effective capital allocation.

11. Fintech Thesis Topics

• The impact of blockchain on global payment systems.
• Regulation challenges for fintech innovations: A cross-country analysis.
• The role of fintech in democratizing access to financial services.
• Machine learning and artificial intelligence in predictive financial modeling.
• The evolution of peer-to-peer lending platforms and their impact on traditional banking.
• Cryptocurrency adoption: consumer behavior and market dynamics.
• The future of robo-advisors in personal finance management.
• The impact of mobile banking on financial inclusion in developing countries.
• Fintech solutions for microfinance: scalability and sustainability issues.
• Data privacy and security challenges in fintech applications.
• The role of fintech in enhancing cybersecurity in financial transactions.
• The impact of fintech on traditional banking employment.
• Regulatory technology (RegTech) for compliance management: trends and challenges.
• Fintech and its role in combating financial crime and money laundering.
• The influence of fintech on the insurance industry: insurtech innovations.
• Fintech investments: market trends and future prospects.
• The role of big data analytics in fintech.
• Digital wallets and the future of consumer spending behavior.
• Impact of fintech on wealth management and investment strategies.
• Challenges and opportunities of implementing distributed ledger technology in financial services.
• Consumer trust and fintech: building relationships in a digital age.
• The evolution of payment gateways: fintech at the forefront.
• Fintech’s impact on cross-border payments and remittances.
• The role of fintech in the development of smart contracts.
• The influence of fintech on financial market transparency.
• Fintech as a driver for financial sector innovation in emerging markets.
• The impact of artificial intelligence on risk assessment in fintech.
• Fintech and financial stability: an analysis of systemic risks.
• The role of fintech in streamlining government and public sector finance.
• Ethical considerations in fintech: balancing innovation with consumer protection.

12. Insurance Thesis Topics

• The future of insurance in the age of climate change.
• The impact of artificial intelligence on underwriting and risk management.
• Cyber risk insurance: emerging challenges and opportunities.
• The role of insurance in managing public health crises.
• Innovations in health insurance: technology-driven approaches to coverage.
• The evolution of automotive insurance in the era of autonomous vehicles.
• Insurance fraud detection using big data analytics.
• Regulatory challenges in the global insurance market.
• The influence of behavioral economics on insurance product design.
• The role of reinsurance in stabilizing insurance markets.
• Insurance and financial inclusion: strategies for reaching underserved communities.
• The impact of technological advancements on insurance pricing models.
• The role of insurance in disaster risk reduction and management.
• Customer data management in the insurance industry: privacy versus personalization.
• The future of life insurance: adapting to demographic shifts.
• The integration of IoT devices in home insurance policies.
• Blockchain applications in the insurance industry.
• The impact of social media on insurance marketing and customer engagement.
• Insurance as a tool for sustainable business practices.
• The role of insurance companies in promoting corporate social responsibility.
• The challenges of health insurance in a post-pandemic world.
• Emerging risks and insurance: addressing the needs of the gig economy.
• The role of insurance in mitigating financial risks associated with sports and entertainment.
• Ethical challenges in insurance: discrimination in risk assessment.
• The impact of global political instability on the insurance sector.
• Insurance products tailored for the elderly: opportunities and challenges.
• The role of insurance in fostering innovation in the construction industry.
• Insurance and climate resilience: protecting vulnerable communities.
• The evolving landscape of travel insurance amid global uncertainties.
• The role of insurance in the transition to renewable energy sources.

13. International Finance Thesis Topics

• The impact of currency fluctuations on international trade.
• Strategies for managing foreign exchange risk in multinational corporations.
• The effects of global economic sanctions on financial markets.
• The role of international financial institutions in economic development.
• Cross-border mergers and acquisitions: challenges and opportunities.
• The influence of geopolitical tensions on global financial stability.
• International tax planning and its implications for global investment.
• The future of international financial regulation in a post-Brexit Europe.
• The impact of emerging markets on global finance.
• Foreign direct investment trends and their economic impacts.
• The role of sovereign wealth funds in international finance.
• The challenges of implementing international accounting standards.
• The impact of international remittances on developing economies.
• The role of digital currencies in reshaping international finance.
• The effects of protectionist trade policies on global finance.
• International financial market trends and their implications for investors.
• The role of expatriate remittances in national economic stability.
• The impact of international trade agreements on financial services.
• Global risk management strategies in the finance sector.
• The role of green finance in promoting sustainable development.
• The impact of international environmental policies on financial strategies.
• The future of global banking in the context of rising nationalism.
• The role of international finance in disaster recovery and resilience.
• The influence of international finance on poverty reduction strategies.
• Strategies for financing international healthcare initiatives.
• The evolving role of Islamic finance in the global market.
• The impact of fintech on international banking and finance.
• Challenges in financing international infrastructure projects.
• The role of international finance in climate change mitigation.
• Ethical considerations in international finance: fostering global financial integrity.

14. Investment Thesis Topics

• The role of ESG criteria in investment decision-making.
• The impact of technological innovation on investment strategies.
• Market reaction to unexpected global events and its effect on investment portfolios.
• Behavioral biases in investment: a study of market anomalies.
• The future of real estate investment in a fluctuating economic landscape.
• The role of quantitative analysis in portfolio management.
• The impact of demographic changes on investment trends.
• Strategies for sustainable and responsible investing.
• The influence of regulatory changes on investment strategies.
• The role of artificial intelligence in enhancing investment decisions.
• Cryptocurrency investment: risks and opportunities.
• The impact of global trade tensions on investment strategies.
• Investment strategies for low interest rate environments.
• The role of crowdfunding in the investment landscape.
• The impact of social media on investor sentiment and stock prices.
• The effectiveness of passive versus active investment strategies.
• The role of venture capital in driving technological innovation.
• The future of bond markets in a changing economic context.
• The role of international investments in diversifying portfolios.
• Impact of inflation expectations on investment decisions.
• The evolving landscape of commodity investments.
• Investment opportunities in emerging markets.
• The impact of fiscal policy changes on investment strategies.
• The role of hedge funds in the current financial market.
• The influence of central bank policies on investment strategies.
• The role of pension funds in the global investment market.
• Ethical investing: balancing profit and principles.
• The future of investments in renewable energy.
• The impact of political stability on foreign investments.
• The role of technology in asset management and valuation.

15. Management Accounting Thesis Topics

• The role of management accounting in strategic decision-making.
• Cost management strategies in the era of global supply chain disruptions.
• The impact of digital transformation on management accounting practices.
• The role of management accounting in environmental sustainability.
• Performance measurement and management in diverse organizational settings.
• Risk management strategies in management accounting.
• The evolving role of management accountants in corporate governance.
• The impact of regulatory changes on management accounting.
• The role of management accounting in healthcare cost containment.
• The influence of management accounting on operational efficiency.
• Management accounting practices in nonprofit organizations.
• The role of cost analysis in pricing strategies.
• The impact of technological advancements on budgeting and forecasting.
• The effectiveness of management accounting tools in project management.
• The role of management accounting in mergers and acquisitions.
• The impact of cultural differences on management accounting systems.
• The role of management accounting in enhancing business resilience.
• The influence of management accounting on business model innovation.
• Management accounting in the digital economy: challenges and opportunities.
• Strategic cost management for competitive advantage.
• The role of management accounting in supply chain optimization.
• The future of management accounting in the context of AI and automation.
• The impact of financial technology on management accounting.
• The role of management accounting in crisis management and recovery.
• Performance metrics and their impact on organizational success.
• The role of management accounting in supporting sustainable practices.
• The impact of global economic conditions on management accounting.
• The role of predictive analytics in management accounting.
• The effectiveness of internal controls in management accounting.
• The role of management accounting in international business expansion.

16. Personal Finance Thesis Topics

• The impact of financial technology on personal savings strategies.
• Behavioral insights into personal debt management.
• The role of personal finance education in shaping financial literacy.
• The influence of economic downturns on personal investment choices.
• Retirement planning: trends and strategies in the current economic climate.
• The effectiveness of digital tools in personal budgeting and financial planning.
• Analyzing the gender gap in personal finance management.
• The impact of cultural factors on personal saving and spending habits.
• Personal finance challenges for the gig economy workers.
• The role of personal finance in achieving long-term financial security.
• Cryptocurrency as a personal investment: risks and rewards.
• The impact of peer-to-peer lending platforms on personal finance.
• The influence of social media on personal financial decisions.
• Ethical considerations in personal financial advice.
• The evolution of consumer credit markets and its impact on personal finance.
• Strategies for managing personal financial risk.
• The role of emergency funds in personal financial planning.
• The impact of student loans on financial planning for millennials.
• Personal finance strategies for different life stages.
• The effect of inflation on personal savings and investment strategies.
• The future of personal finance in the age of AI and automation.
• The role of insurance in personal financial planning.
• The impact of tax laws changes on personal finance strategies.
• The psychology of spending: understanding consumer behavior.
• Personal financial planning for expatriates: strategies and challenges.
• The role of estate planning in personal finance.
• Impact of healthcare costs on personal financial stability.
• The role of financial advisors in the era of self-directed financial planning.
• Financial planning for sustainable living: integrating environmental considerations.
• The challenges and opportunities in personal wealth building.

17. Public Finance Thesis Topics

• The role of public finance in addressing income inequality.
• Fiscal policies for sustainable economic growth.
• The impact of taxation on small businesses.
• Public finance management in times of economic crisis.
• The role of government spending in stimulating economic development.
• Strategies for managing national debt.
• The effectiveness of public welfare programs.
• The challenges of healthcare financing in public sectors.
• The impact of international aid on public finance.
• Public finance strategies for environmental conservation.
• The role of public finance in urban development.
• Tax evasion and its implications for public finance.
• The impact of public finance on education quality and access.
• Financing public infrastructure: challenges and solutions.
• The role of public finance in disaster management.
• The effectiveness of fiscal decentralization.
• Public finance reforms and their impact on service delivery.
• The challenges of pension financing in the public sector.
• The impact of political stability on public financial management.
• Public-private partnerships: financial implications and models.
• The role of transparency in public finance.
• The impact of corruption on public financial management.
• Financing renewable energy projects through public funds.
• The role of public finance in health care reform.
• The effectiveness of government subsidies in promoting economic sectors.
• The challenges of financing sustainable transportation systems.
• The impact of demographic changes on public finance.
• The role of digital technologies in improving public finance management.
• The global trends in public finance and their implications for domestic policy.
• The impact of climate change on public financial strategies.

18. Quantitative Finance Thesis Topics

• The application of machine learning algorithms in predicting stock market trends.
• The role of quantitative methods in risk management.
• Developing advanced models for credit risk assessment.
• The impact of high-frequency trading on market stability.
• The use of big data analytics in portfolio management.
• Quantitative approaches to asset pricing in volatile markets.
• The effectiveness of quantitative strategies in hedge funds.
• The role of algorithmic trading in enhancing market efficiency.
• Quantitative models for predicting bond market movements.
• The impact of quantitative finance on regulatory compliance.
• The application of blockchain technology in quantitative finance.
• The challenges of quantitative finance in cryptocurrency markets.
• The integration of environmental, social, and governance (ESG) factors in quantitative analysis.
• The role of quantitative finance in private equity valuations.
• Developing quantitative approaches for derivatives pricing.
• The impact of quantitative finance techniques on financial advising.
• Quantitative methods for assessing market liquidity.
• The role of sentiment analysis in quantitative finance.
• Quantitative trading strategies for commodities markets.
• The application of game theory in financial strategy.
• Quantitative finance and its role in insurance underwriting.
• The impact of geopolitical events on quantitative financial models.
• The use of quantitative finance in forecasting economic downturns.
• Machine learning models for real estate investment analysis.
• Quantitative finance techniques in sports betting markets.
• The impact of artificial intelligence on financial market predictions.
• Quantitative methods for managing currency exchange risks.
• The role of quantitative finance in managing pension fund assets.
• The effectiveness of quantitative models in emerging financial markets.
• The future of quantitative finance in a globally interconnected economy.

19. Risk Management Thesis Topics

• The role of risk management in enhancing corporate resilience.
• Cybersecurity risks in financial institutions: management strategies.
• The impact of climate change on risk management in insurance.
• Risk management techniques in the fintech sector.
• The effectiveness of enterprise risk management (ERM) frameworks.
• Risk management in global supply chains.
• The role of risk management in sustainable business practices.
• Financial risks associated with political instability.
• The challenges of operational risk management in complex organizations.
• Risk management strategies for digital transformation projects.
• The impact of regulatory changes on risk management practices.
• Risk assessment techniques for investment in volatile markets.
• The role of data analytics in risk identification and mitigation.
• Risk management considerations in mergers and acquisitions.
• The impact of reputation risk on corporate strategy.
• Risk management in the healthcare industry.
• The challenges of risk management in the energy sector.
• The role of risk management in nonprofit organizations.
• Implementing risk management in public sector entities.
• The future of risk management in the context of AI advancements.
• Credit risk management in banking post-global financial crisis.
• Risk management strategies for emerging technologies.
• The role of psychological factors in risk management decision-making.
• Legal risks in international business operations.
• The impact of cultural differences on risk management strategies.
• Environmental risk management and corporate responsibility.
• Risk management techniques for protecting intellectual property.
• The role of insurance in comprehensive risk management.
• The challenges of liquidity risk management in financial markets.
• The future of risk management education and training.

20. Taxation Thesis Topics

• The impact of digital economy on global taxation frameworks.
• Tax policy as a tool for economic recovery post-pandemic.
• The effectiveness of tax incentives in promoting renewable energy investments.
• The role of taxation in addressing wealth inequality.
• International tax competition and its implications for global economic stability.
• The challenges of implementing value-added tax (VAT) in developing countries.
• Tax evasion and its impact on national economies.
• The role of tax policy in encouraging corporate social responsibility.
• The impact of tax reforms on small and medium-sized enterprises.
• Comparative analysis of progressive versus flat tax systems.
• The effectiveness of digital services taxes in the global economy.
• The role of taxation in sustainable development goals.
• Taxation strategies for digital currencies and blockchain transactions.
• The impact of tax policies on consumer behavior.
• The role of taxation in healthcare financing.
• Tax compliance challenges in the gig economy.
• The implications of tax havens on international relations.
• The role of automated systems in improving tax collection efficiency.
• Taxation and its impact on foreign direct investment flows.
• The future of estate taxes and their role in wealth distribution.
• Taxation of e-commerce transactions.
• The impact of international tax treaties on cross-border investments.
• The role of taxation in the informal economy.
• The challenges of carbon taxes in combating climate change.
• The role of tax audits in enhancing fiscal transparency.
• The impact of tax policies on retirement planning.
• Taxation challenges in the pharmaceutical industry.
• The role of taxation in funding public education.
• The impact of taxation on agricultural development.
• The future of consumption taxes in an increasingly digital world.

This comprehensive list of accounting and finance thesis topics has been curated to reflect the latest challenges and emerging trends within the field. Whether you are exploring traditional areas like taxation and corporate finance or delving into the evolving realms of fintech and international finance, these topics are designed to provide a robust foundation for your thesis research. Each category is intended to spark innovative thinking and encourage a deep exploration of issues that are pivotal to the current and future landscape of accounting and finance. By selecting a topic from this extensive collection, students can ensure their research is relevant, timely, and contributes meaningfully to their academic and professional growth in the field of accounting and finance.

The Range of Accounting and Finance Thesis Topics

Accounting and finance stand as critical pillars in the modern economic and corporate world, guiding everything from daily business operations to global financial strategies. The study of these disciplines is not just about learning to balance books or manage corporate assets; it’s about understanding the forces that drive economic activities and shape financial landscapes. Research in accounting and finance is paramount as it provides the empirical evidence needed to develop robust financial models, innovative management practices, and effective regulatory policies. The relevance of accounting and finance thesis topics is thus foundational to nurturing informed, adept professionals capable of navigating the complexities of financial markets and addressing the challenges of economic flux.

Current Issues in Accounting and Finance

• Globalization and Regulatory Complexity : As businesses operate across borders, the complexity of regulatory compliance increases. Researchers are tasked with exploring the implications of global regulatory frameworks and their synchronization, or lack thereof, which affects multinational corporations and global financial stability.
• Technological Disruptions : The rapid integration of technologies such as blockchain, AI, and machine learning in financial operations presents both opportunities and challenges. Studies focus on their impacts on financial privacy, security, and new types of financial crime, as well as their potential to improve efficiency and transparency.
• Ethical and Sustainability Challenges : With rising concerns over corporate responsibility and sustainable development, research is increasingly focusing on how financial practices can be aligned with ethical standards and sustainability goals. This includes studies on green financing, ethical investing, and the financial implications of corporate sustainability initiatives.

Recent Trends in Accounting and Finance

• Automation and Data Analytics : The adoption of advanced data analytics and automation tools is transforming traditional accounting tasks. Research topics explore the impact of these technologies on workflow efficiencies, data accuracy, and strategic decision-making within financial departments.
• Sustainable Finance : As the demand for environmentally and socially responsible investment options grows, there is an increasing focus on how financial markets can support ESG principles. Researchers examine the integration of sustainability into financial analysis and decision-making processes.
• Fintech Innovations : The emergence of fintech and its components like mobile payments, peer-to-peer lending, and cryptocurrencies are reshaping the financial services industry. Theses may focus on the regulatory challenges, market dynamics, and consumer behavior influenced by these innovations.

Future Directions in Accounting and Finance

• Digital Transformation : Future research will likely delve deeper into the consequences and potentials of continued digital transformation in finance, such as the widespread adoption of internet of things (IoT) technologies and further advancements in AI for automated trading and personal finance management.
• Predictive Finance and AI : With AI’s increasing capability to predict financial outcomes, future topics could include the development of AI-driven models for credit scoring, risk management, and investment strategies, emphasizing their accuracy, ethical considerations, and regulatory needs.
• Sustainability and Finance : An emerging research frontier is the intersection of finance with global sustainability challenges. Potential topics include the financing of climate change initiatives, the role of financial institutions in promoting sustainable practices, and the creation of innovative financial products that support sustainable economic growth.

The breadth of accounting and finance thesis topics is indicative of the field’s extensive scope and its significant impact on societal and economic frameworks. Continued research is essential for advancing theoretical foundations and developing practical applications that address both current challenges and future opportunities. This ongoing academic inquiry is crucial for fostering a financial landscape that is not only robust and dynamic but also ethical and sustainable, ensuring that the field of accounting and finance remains at the forefront of economic innovation and societal advancement.

iResearchNet’s Thesis Writing Services

At iResearchNet, we understand the unique challenges and pressures that come with academic thesis writing. Our custom thesis writing services are designed to be a valuable resource for students who are striving for excellence in their academic endeavors. Whether you are tackling complex accounting and finance thesis topics or any other subject, our expert team is here to support you every step of the way, ensuring that your academic journey is smooth and successful.

• Expert Degree-Holding Writers : Our team consists of highly qualified writers who hold advanced degrees in their respective fields. They bring a wealth of knowledge and experience to each project, ensuring that your thesis is handled with expert care.
• Custom Written Works : Each thesis is crafted from scratch, tailored to meet your specific requirements and academic guidelines. This bespoke approach guarantees that your work is unique and original.
• In-depth Research : We commit to conducting thorough and comprehensive research for every thesis, utilizing a wide range of credible sources to enrich your work with valuable insights and robust data.
• Custom Formatting (APA, MLA, Chicago/Turabian, Harvard) : Formatting is key in academic writing, and our writers are proficient in all major formatting styles. Whatever your formatting needs, we ensure that your thesis meets the strictest academic standards.
• Top Quality : Quality is the cornerstone of our services. We maintain the highest standards of academic excellence, ensuring that every thesis is a reflection of deep analytical thought and clear argumentation.
• Customized Solutions : We understand that every student’s needs are different. Our services are highly flexible, allowing for customized solutions that cater to your individual requirements and academic objectives.
• Flexible Pricing : We offer competitive pricing models that are designed to be affordable to students while maintaining the highest quality of work. Our pricing is transparent and tailored to fit various budgets and project scopes.
• Short Deadlines up to 3 Hours : Need your thesis urgently? We can handle tight deadlines, delivering quality work even on a stringent timeline, sometimes in as little as three hours.
• Timely Delivery : We pride ourselves on punctuality. Every thesis is delivered within the agreed timeframe, allowing you to review the work and request any necessary revisions before your submission deadline.
• 24/7 Support : Our support team is available around the clock to answer your questions and provide assistance. No matter the time zone or hour, we’re here to help.
• Absolute Privacy : We guarantee complete confidentiality and privacy in all our services. Your personal and academic information is safe with us, and we never share it with third parties.
• Easy Order Tracking : Stay updated on the progress of your thesis with our easy order tracking system. Log in anytime to see the current status of your work and communicate directly with your writer.
• Money-Back Guarantee : We stand behind our work with a robust money-back guarantee. If you’re not satisfied with the quality of your thesis, we’ll work to make it right or provide a refund.

Choosing iResearchNet for your thesis writing needs ensures a hassle-free and professional experience. With our comprehensive suite of services, you gain access to expertise, personalized support, and guarantees that make your academic journey smoother and more successful. Trust us to help you navigate the complexities of accounting and finance thesis topics or any other academic challenge, empowering you to achieve your academic and career aspirations with confidence and ease.

Buy Your Custom Thesis Paper Today!

Take control of your academic success and elevate your studies with iResearchNet’s professional thesis writing services. If you’re dealing with challenging accounting and finance thesis topics or any other complex subjects, don’t hesitate to reach out. We provide expert guidance, custom research, and meticulous writing to help you excel in your academic pursuits. Our dedicated team is ready to support you in crafting a thesis that not only meets but exceeds academic standards. With iResearchNet, you’re not just buying a paper; you’re investing in your future. Order your custom thesis paper today and take a significant step towards academic excellence and professional growth. Join countless other students who have benefited from our tailored services and are now leading successful careers. Don’t wait; your perfect thesis is just an order away!

ORDER HIGH QUALITY CUSTOM PAPER

Research Topics & Ideas: Finance

PS – This is just the start…

We know it’s exciting to run through a list of research topics, but please keep in mind that this list is just a starting point . To develop a suitable education-related research topic, you’ll need to identify a clear and convincing research gap , and a viable plan of action to fill that gap.

Overview: Finance Research Topics

• Corporate finance topics
• Investment banking topics
• Private equity & VC
• Asset management
• Hedge funds
• Financial planning & advisory
• Quantitative finance
• Treasury management
• Financial technology (FinTech)
• Commercial banking
• International finance

Corporate Finance

These research topic ideas explore a breadth of issues ranging from the examination of capital structure to the exploration of financial strategies in mergers and acquisitions.

• Evaluating the impact of capital structure on firm performance across different industries
• Assessing the effectiveness of financial management practices in emerging markets
• A comparative analysis of the cost of capital and financial structure in multinational corporations across different regulatory environments
• Examining how integrating sustainability and CSR initiatives affect a corporation’s financial performance and brand reputation
• Analysing how rigorous financial analysis informs strategic decisions and contributes to corporate growth
• Examining the relationship between corporate governance structures and financial performance
• A comparative analysis of financing strategies among mergers and acquisitions
• Evaluating the importance of financial transparency and its impact on investor relations and trust
• Investigating the role of financial flexibility in strategic investment decisions during economic downturns
• Investigating how different dividend policies affect shareholder value and the firm’s financial performance 

Investment Banking

The list below presents a series of research topics exploring the multifaceted dimensions of investment banking, with a particular focus on its evolution following the 2008 financial crisis.

• Analysing the evolution and impact of regulatory frameworks in investment banking post-2008 financial crisis
• Investigating the challenges and opportunities associated with cross-border M&As facilitated by investment banks.
• Evaluating the role of investment banks in facilitating mergers and acquisitions in emerging markets
• Analysing the transformation brought about by digital technologies in the delivery of investment banking services and its effects on efficiency and client satisfaction.
• Evaluating the role of investment banks in promoting sustainable finance and the integration of Environmental, Social, and Governance (ESG) criteria in investment decisions.
• Assessing the impact of technology on the efficiency and effectiveness of investment banking services
• Examining the effectiveness of investment banks in pricing and marketing IPOs, and the subsequent performance of these IPOs in the stock market.
• A comparative analysis of different risk management strategies employed by investment banks
• Examining the relationship between investment banking fees and corporate performance
• A comparative analysis of competitive strategies employed by leading investment banks and their impact on market share and profitability

Private Equity & Venture Capital (VC)

These research topic ideas are centred on venture capital and private equity investments, with a focus on their impact on technological startups, emerging technologies, and broader economic ecosystems.

• Investigating the determinants of successful venture capital investments in tech startups
• Analysing the trends and outcomes of venture capital funding in emerging technologies such as artificial intelligence, blockchain, or clean energy
• Assessing the performance and return on investment of different exit strategies employed by venture capital firms
• Assessing the impact of private equity investments on the financial performance of SMEs
• Analysing the role of venture capital in fostering innovation and entrepreneurship
• Evaluating the exit strategies of private equity firms: A comparative analysis
• Exploring the ethical considerations in private equity and venture capital financing
• Investigating how private equity ownership influences operational efficiency and overall business performance
• Evaluating the effectiveness of corporate governance structures in companies backed by private equity investments
• Examining how the regulatory environment in different regions affects the operations, investments and performance of private equity and venture capital firms

Need a helping hand?

Asset Management

This list includes a range of research topic ideas focused on asset management, probing into the effectiveness of various strategies, the integration of technology, and the alignment with ethical principles among other key dimensions.

• Analysing the effectiveness of different asset allocation strategies in diverse economic environments
• Analysing the methodologies and effectiveness of performance attribution in asset management firms
• Assessing the impact of environmental, social, and governance (ESG) criteria on fund performance
• Examining the role of robo-advisors in modern asset management
• Evaluating how advancements in technology are reshaping portfolio management strategies within asset management firms
• Evaluating the performance persistence of mutual funds and hedge funds
• Investigating the long-term performance of portfolios managed with ethical or socially responsible investing principles
• Investigating the behavioural biases in individual and institutional investment decisions
• Examining the asset allocation strategies employed by pension funds and their impact on long-term fund performance
• Assessing the operational efficiency of asset management firms and its correlation with fund performance

Hedge Funds

Here we explore research topics related to hedge fund operations and strategies, including their implications on corporate governance, financial market stability, and regulatory compliance among other critical facets.

• Assessing the impact of hedge fund activism on corporate governance and financial performance
• Analysing the effectiveness and implications of market-neutral strategies employed by hedge funds
• Investigating how different fee structures impact the performance and investor attraction to hedge funds
• Evaluating the contribution of hedge funds to financial market liquidity and the implications for market stability
• Analysing the risk-return profile of hedge fund strategies during financial crises
• Evaluating the influence of regulatory changes on hedge fund operations and performance
• Examining the level of transparency and disclosure practices in the hedge fund industry and its impact on investor trust and regulatory compliance
• Assessing the contribution of hedge funds to systemic risk in financial markets, and the effectiveness of regulatory measures in mitigating such risks
• Examining the role of hedge funds in financial market stability
• Investigating the determinants of hedge fund success: A comparative analysis

Financial Planning and Advisory

This list explores various research topic ideas related to financial planning, focusing on the effects of financial literacy, the adoption of digital tools, taxation policies, and the role of financial advisors.

• Evaluating the impact of financial literacy on individual financial planning effectiveness
• Analysing how different taxation policies influence financial planning strategies among individuals and businesses
• Evaluating the effectiveness and user adoption of digital tools in modern financial planning practices
• Investigating the adequacy of long-term financial planning strategies in ensuring retirement security
• Assessing the role of financial education in shaping financial planning behaviour among different demographic groups
• Examining the impact of psychological biases on financial planning and decision-making, and strategies to mitigate these biases
• Assessing the behavioural factors influencing financial planning decisions
• Examining the role of financial advisors in managing retirement savings
• A comparative analysis of traditional versus robo-advisory in financial planning
• Investigating the ethics of financial advisory practices

The following list delves into research topics within the insurance sector, touching on the technological transformations, regulatory shifts, and evolving consumer behaviours among other pivotal aspects.

• Analysing the impact of technology adoption on insurance pricing and risk management
• Analysing the influence of Insurtech innovations on the competitive dynamics and consumer choices in insurance markets
• Investigating the factors affecting consumer behaviour in insurance product selection and the role of digital channels in influencing decisions
• Assessing the effect of regulatory changes on insurance product offerings
• Examining the determinants of insurance penetration in emerging markets
• Evaluating the operational efficiency of claims management processes in insurance companies and its impact on customer satisfaction
• Examining the evolution and effectiveness of risk assessment models used in insurance underwriting and their impact on pricing and coverage
• Evaluating the role of insurance in financial stability and economic development
• Investigating the impact of climate change on insurance models and products
• Exploring the challenges and opportunities in underwriting cyber insurance in the face of evolving cyber threats and regulations

Quantitative Finance

These topic ideas span the development of asset pricing models, evaluation of machine learning algorithms, and the exploration of ethical implications among other pivotal areas.

• Developing and testing new quantitative models for asset pricing
• Analysing the effectiveness and limitations of machine learning algorithms in predicting financial market movements
• Assessing the effectiveness of various risk management techniques in quantitative finance
• Evaluating the advancements in portfolio optimisation techniques and their impact on risk-adjusted returns
• Evaluating the impact of high-frequency trading on market efficiency and stability
• Investigating the influence of algorithmic trading strategies on market efficiency and liquidity
• Examining the risk parity approach in asset allocation and its effectiveness in different market conditions
• Examining the application of machine learning and artificial intelligence in quantitative financial analysis
• Investigating the ethical implications of quantitative financial innovations
• Assessing the profitability and market impact of statistical arbitrage strategies considering different market microstructures

Treasury Management

The following topic ideas explore treasury management, focusing on modernisation through technological advancements, the impact on firm liquidity, and the intertwined relationship with corporate governance among other crucial areas.

• Analysing the impact of treasury management practices on firm liquidity and profitability
• Analysing the role of automation in enhancing operational efficiency and strategic decision-making in treasury management
• Evaluating the effectiveness of various cash management strategies in multinational corporations
• Investigating the potential of blockchain technology in streamlining treasury operations and enhancing transparency
• Examining the role of treasury management in mitigating financial risks
• Evaluating the accuracy and effectiveness of various cash flow forecasting techniques employed in treasury management
• Assessing the impact of technological advancements on treasury management operations
• Examining the effectiveness of different foreign exchange risk management strategies employed by treasury managers in multinational corporations
• Assessing the impact of regulatory compliance requirements on the operational and strategic aspects of treasury management
• Investigating the relationship between treasury management and corporate governance

Financial Technology (FinTech)

The following research topic ideas explore the transformative potential of blockchain, the rise of open banking, and the burgeoning landscape of peer-to-peer lending among other focal areas.

• Evaluating the impact of blockchain technology on financial services
• Investigating the implications of open banking on consumer data privacy and financial services competition
• Assessing the role of FinTech in financial inclusion in emerging markets
• Analysing the role of peer-to-peer lending platforms in promoting financial inclusion and their impact on traditional banking systems
• Examining the cybersecurity challenges faced by FinTech firms and the regulatory measures to ensure data protection and financial stability
• Examining the regulatory challenges and opportunities in the FinTech ecosystem
• Assessing the impact of artificial intelligence on the delivery of financial services, customer experience, and operational efficiency within FinTech firms
• Analysing the adoption and impact of cryptocurrencies on traditional financial systems
• Investigating the determinants of success for FinTech startups

Commercial Banking

These topic ideas span commercial banking, encompassing digital transformation, support for small and medium-sized enterprises (SMEs), and the evolving regulatory and competitive landscape among other key themes.

• Assessing the impact of digital transformation on commercial banking services and competitiveness
• Analysing the impact of digital transformation on customer experience and operational efficiency in commercial banking
• Evaluating the role of commercial banks in supporting small and medium-sized enterprises (SMEs)
• Investigating the effectiveness of credit risk management practices and their impact on bank profitability and financial stability
• Examining the relationship between commercial banking practices and financial stability
• Evaluating the implications of open banking frameworks on the competitive landscape and service innovation in commercial banking
• Assessing how regulatory changes affect lending practices and risk appetite of commercial banks
• Examining how commercial banks are adapting their strategies in response to competition from FinTech firms and changing consumer preferences
• Analysing the impact of regulatory compliance on commercial banking operations
• Investigating the determinants of customer satisfaction and loyalty in commercial banking

International Finance

The folowing research topic ideas are centred around international finance and global economic dynamics, delving into aspects like exchange rate fluctuations, international financial regulations, and the role of international financial institutions among other pivotal areas.

• Analysing the determinants of exchange rate fluctuations and their impact on international trade
• Analysing the influence of global trade agreements on international financial flows and foreign direct investments
• Evaluating the effectiveness of international portfolio diversification strategies in mitigating risks and enhancing returns
• Evaluating the role of international financial institutions in global financial stability
• Investigating the role and implications of offshore financial centres on international financial stability and regulatory harmonisation
• Examining the impact of global financial crises on emerging market economies
• Examining the challenges and regulatory frameworks associated with cross-border banking operations
• Assessing the effectiveness of international financial regulations
• Investigating the challenges and opportunities of cross-border mergers and acquisitions

Choosing A Research Topic

These finance-related research topic ideas are starting points to guide your thinking. They are intentionally very broad and open-ended. By engaging with the currently literature in your field of interest, you’ll be able to narrow down your focus to a specific research gap .

When choosing a topic , you’ll need to take into account its originality, relevance, feasibility, and the resources you have at your disposal. Make sure to align your interest and expertise in the subject with your university program’s specific requirements. Always consult your academic advisor to ensure that your chosen topic not only meets the academic criteria but also provides a valuable contribution to the field. 

Find The Perfect Research Topic

How To Choose A Research Topic: 5 Key Criteria

How To Choose A Research Topic Step-By-Step Tutorial With Examples + Free Topic...

Research Topics & Ideas: Automation & Robotics

A comprehensive list of automation and robotics-related research topics. Includes free access to a webinar and research topic evaluator.

Research Topics & Ideas: Sociology

Research Topics & Ideas: Sociology 50 Topic Ideas To Kickstart Your Research...

Research Topics & Ideas: Public Health & Epidemiology

A comprehensive list of public health-related research topics. Includes free access to a webinar and research topic evaluator.

Research Topics & Ideas: Neuroscience

Research Topics & Ideas: Neuroscience 50 Topic Ideas To Kickstart Your Research...

📄 FREE TEMPLATES

Research Topic Ideation

Proposal Writing

Literature Review

Methodology & Analysis

Academic Writing

Referencing & Citing

Apps, Tools & Tricks

The Grad Coach Podcast

thank you for suggest those topic, I want to ask you about the subjects related to the fintech, can i measure it and how?

Please guide me on selecting research titles

I am doing financial engineering. , can you please help me choose a dissertation topic?

I’m studying Banking and finance (MBA) please guide me on to choose a good research topic.

I am studying finance (MBA) please guide me to choose a good research topic.

I’m studying Master in Islamic Banking and Finance.

Can you suggest a good research topic. Please

I’m doing Masters in Islamic Banking and Finance. Would you kindly suggest a good research topic. Please

Hi Amen doing MBA in accounting and finance. Could you please subject a good research topic for me. Thanks

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Submit Comment

• Print Friendly

50+ Best Finance Dissertation Topics For Research Students In 2024

Link Copied

Share on Facebook

Share on Twitter

Share on LinkedIn

Finance Dissertation Made Easier!

Embarking on your dissertation adventure? Look no further! Choosing the right finance dissertation topics is like laying the foundation for your research journey in finance, and we're here to light up your path. In this article, we will be diving deep into why dissertation topics in finance matter so much. We've got some golden writing tips to share with you! We're also unveiling the secret recipe for structuring a stellar finance dissertation and exploring intriguing topics across various finance sub-fields. Here is a list of finance dissertation topics that will surely set your research spirit on fire!

What is a Finance Dissertation?

Finance dissertations are academic papers that delve into specific finance topics chosen by students, covering areas such as stock markets , banking , risk management , and healthcare finance . These dissertations require extensive research to create a compelling report and contribute to the student's confidence and satisfaction in the field of finance. Now, let's understand why these dissertations are so important and why choosing the right finance dissertation topics is crucial!

Importance of Finance Dissertation Topics

Choosing the dissertation topics for finance students is essential as it will influence the course of one’s research. It determines the direction and scope of your study. You must make sure that the finance dissertation topics you choose are relevant to your field of interest. Here are a few reasons why finance thesis topics are important:

1. Relevance

Opting for relevant finance thesis topics ensures that your research contributes to the existing body of knowledge and addresses contemporary issues in finance. Choosing a dissertation topic relevant to the industry can make a meaningful impact and advance understanding in your chosen area.

2. Personal Interest

Selecting finance dissertation topics that align with your interests and career goals is vital. When genuinely passionate about your research area, you are more likely to stay motivated during the dissertation process. Your interest will drive you to explore the subject thoroughly and produce high-quality work.

3. Future Opportunities

Well-chosen finance dissertation topics can open doors to various future opportunities. They can enhance your employability by showcasing your expertise in a specific finance area . They may also lead to potential research collaborations and invitations to conferences in your field of interest.

4. Academic Supervision

Your choice of topics for dissertation in finance also influences the availability of academic supervisors with expertise in your chosen area. Selecting a well-defined research area increases the likelihood of finding a supervisor to guide you effectively throughout the dissertation . Their knowledge and guidance will greatly contribute to the success of your research.

Writing Tips for Finance Dissertation

Writing a dissertation requires a lot of planning , formatting , and structuring . It starts with deciding on topics for a dissertation in finance, conducting tons of research, deciding on methods, and so on. Below are some tips to assist you along the way, and here is a blog on the 10 tips on writing a dissertation that can give you more information, should you need it!

1. Select a Manageable Topic

It is important to choose finance research topics within the given timeframe and resources. Select a research area that interests you and aligns with your career goals. This will help you stay inspired throughout the dissertation process.

2. Conduct a Thorough Literature Review

A comprehensive literature review forms the backbone of your research. After choosing the finance dissertation topics, dive deep into academic papers , books , and industry reports . Gain a solid understanding of your chosen area to identify research gaps and establish the significance of your study.

3. Define Clear Research Objectives

Clearly define your dissertation's research questions and objectives. It will provide a clear direction for your research and guide your data collection, analysis, and overall structure. Ensure your objectives are specific , measurable , achievable , relevant , and time-bound (SMART).

4. Collect and Analyse Data

Depending on your research methodology and your finance dissertation topics, collect and analyse relevant data to support your findings. It may involve conducting surveys , interviews , experiments , and analysing existing datasets . Choose appropriate statistical techniques and qualitative methods to derive meaningful insights from your data.

5. Structure and Organisation

Pay attention to the structure and organisation of your dissertation. Follow a logical progression of chapters and sections, ensuring that each chapter contributes to the overall coherence of your study. Use headings , subheadings , and clear signposts to guide the reader through your work.

6. Proofread and Edit

Once you have completed the writing process, take the time to proofread and edit your dissertation carefully. Check for clarity , coherence , and proper grammar . Ensure that your arguments are well-supported, and eliminate any inconsistencies or repetitions. Pay attention to formatting, citation styles, and consistency in referencing throughout your dissertation.

Don't let student accommodation hassles derail your finance research.

Book through amber today!

Finance Dissertation Topics

Now that you know what a finance dissertation is and why they are important, it's time to have a look at some of the best finance dissertation topics. For your convenience, we have segregated these topics into categories, including cryptocurrency , risk management , internet banking , and so many more. So, let's dive right in and explore the best finance dissertation topics:

Dissertation Topics in Finance Related to Cryptocurrency

1. The Impact of Regulatory Frameworks on the Volatility and Liquidity of Cryptocurrencies. 2. Exploring the Factors Influencing Cryptocurrency Adoption: A Comparative Study. 3. Assessing the Efficiency and Market Integration of Cryptocurrency Exchanges. 4. An Analysis of the Relationship between Cryptocurrency Prices and Macroeconomic Factors. 5. The Role of Initial Coin Offerings (ICOs) in Financing Startups: Opportunities and Challenges.

Dissertation Topics in Finance Related to Risk Management

1. The Effectiveness of Different Risk Management Strategies in Mitigating Financial Risks in Banking Institutions. 2. The Role of Derivatives in Hedging Financial Risks: A Comparative Study. 3. Analysing the Impact of Risk Management Practices on Firm Performance: A Case Study of a Specific Industry. 4. The Use of Stress Testing in Evaluating Systemic Risk: Lessons from the Global Financial Crisis. 5. Assessing the Relationship between Corporate Governance and Risk Management in Financial Institutions.

Dissertation Topics in Finance Related to Internet Banking

1. Customer Adoption of Internet Banking: An Empirical Study on Factors Influencing Usage. 2. Enhancing Security in Internet Banking: Exploring Biometric Authentication Technologies. 3. The Impact of Mobile Banking Applications on Customer Engagement and Satisfaction. 4. Evaluating the Efficiency and Effectiveness of Internet Banking Services in Emerging Markets. 5. The Role of Social Media in Shaping Customer Perception and Adoption of Internet Banking. 6. Fraud and Identity Theft are Accomplished via Internet Banking.

Dissertation Topics in Finance Related to Microfinance

1. The Impact of Microfinance on Poverty Alleviation: A Comparative Study of Different Models. 2. Exploring the Role of Microfinance in Empowering Women Entrepreneurs. 3. Assessing the Financial Sustainability of Microfinance Institutions in Developing Countries. 4. The Effectiveness of Microfinance in Promoting Rural Development: Evidence from a Specific Region. 5. Analysing the Relationship between Microfinance and Entrepreneurial Success: A Longitudinal Study.

Dissertation Topics in Finance Related to Retail and Commercial Banking

1. The Impact of Digital Transformation on Retail and Commercial Banking: A Case Study of a Specific Bank. 2. Customer Satisfaction and Loyalty in Retail Banking: An Analysis of Service Quality Dimensions. 3. Analysing the Relationship between Bank Branch Expansion and Financial Performance. 4. The Role of Fintech Startups in Disrupting Retail and Commercial Banking: Opportunities and Challenges. 5. Assessing the Impact of Mergers and Acquisitions on the Performance of Retail and Commercial Banks.

Dissertation Topics in Finance Related to Alternative Investment

1. The Performance and Risk Characteristics of Hedge Funds: A Comparative Analysis. 2. Exploring the Role of Private Equity in Financing and Growing Small and Medium-Sized Enterprises. 3. Analysing the Relationship between Real Estate Investments and Portfolio Diversification. 4. The Potential of Impact Investing: Evaluating the Social and Financial Returns. 5. Assessing the Risk-Return Tradeoff in Cryptocurrency Investments: A Comparative Study.

Dissertation Topics in Finance Related to International Affairs

1. The Impact of Exchange Rate Volatility on International Trade: A Case Study of a Specific Industry. 2. Analysing the Effectiveness of Capital Controls in Managing Financial Crises: Comparative Study of Different Countries. 3. The Role of International Financial Institutions in Promoting Economic Development in Developing Countries. 4. Evaluating the Implications of Trade Wars on Global Financial Markets. 5. Assessing the Role of Central Banks in Managing Financial Stability in a Globalised Economy.

Dissertation Topics in Finance Related to Sustainable Finance

1. The Impact of Sustainable Investing on Financial Performance. 2. The Role of Green Bonds in Financing Climate Change Mitigation and Adaptation. 3. The Development of Carbon Markets. 4. The Use of Environmental, Social, and Governance (ESG) Factors in Investment Decision-Making. 5. The Challenges and Opportunities of Sustainable Finance in Emerging Markets.

Dissertation Topics in Finance Related to Investment Banking

1. The Valuation of Distressed Assets. 2. The Pricing of Derivatives. 3. The Risk Management of Financial Institutions. 4. The Regulation of Investment Banks. 5. The Impact of Technology on the Investment Banking Industry.

Dissertation Topics in Finance Related to Actuarial Science

1. The Development of New Actuarial Models for Pricing Insurance Products. 2. The Use of Big Data in Actuarial Analysis. 3. The Impact of Climate Change on Insurance Risk. 4. The Design of Pension Plans That Are Sustainable in the Long Term. 5. The Use of Actuarial Science to Manage Risk in Other Industries, Such as Healthcare and Finance.

Dissertation Topics in Finance Related to Corporate Finance

1. Study the Relations Between Corporate Governance Structures and Financial Performance 2. Testing the Effects of Capital Structure on Firm Performance Across Different Industries 3. Effectiveness of Financial Management Practices in Emerging Markets 4. Integrating Sustainability and CSR Initiatives Impacts a Corporation’s Financial Performance and Enhances its Brand Reputation. 5. A Comparative Study of the Financing Strategies Employed in Mergers and Acquisitions.

Tips To Find Good Finance Dissertation Topics 

Embarking on a journey of dissertation reports on finance topics requires careful consideration of various factors. Your choice of topic in finance research topics is pivotal, as it sets the stage for the entire research process. We suggest the following tips that can help you pick the perfect dissertation topic:

1. Identify your interests and strengths  2. Check for current relevance 3. Feedback from your superiors 4. Finalise the research methods 5. Gather the data 6. Work on the outline of your dissertation 7. Make a draft and proofread it

How To Plan Your Work on a Finance Dissertation?

The students are expected to submit their dissertation by the end of the study course. Students are prone to face a lot of difficulties while working on their dissertation. In such cases, proper planning may be your best bet! Keep in mind that the main aim of writing a dissertation is an opportunity to demonstrate the depths of your research abilities. We are providing you with a short step-by-step guide that will help you plan your work.

1. Choose a topic that interests you 2. Make sure to discuss the same with your supervisor 3. Post-discussion, work on the feedback given by the supervisor 4. Narrow down the research methods that will prove the significance of your chosen topic 5. Gather all the required information from relevant sources 6. Analyse the acquired results after a thorough research 7. Prepare a draft and proofread it 8. Connect with your supervisor/advisor and see if any additions are to be made 9. Make the required edits 10. Prepare the final dissertation

Lastly, we have discussed the importance of finance thesis topics and provided valuable writing tips and tips for finding the right topic. We have also presented a list of thesis topics for finance students within various subfields. With this, we hope you have great ideas for finance dissertations. Good luck with your finance research journey!

Frequently Asked Questions

How do i choose a dissertation topic in finance, what is the best topic for a thesis in finance, where can i find a dissertation topic in finance, what is the recommended length for a finance dissertation, how do you write a dissertation in finance.

Your ideal student home & a flight ticket awaits

Follow us on :

Related Posts

10 Best Healthcare Courses in the UK: Your Path to a Rewarding Career!

Top Colleges in London To Study In 2024

Top 10 Courses in Demand in UK 2024: Best Courses For ROI & Job Prospects

amber © 2024. All rights reserved.

4.8/5 on Trustpilot

Rated as "Excellent" • 4800+ Reviews by students

Rated as "Excellent" • 4800+ Reviews by Students

• How It Works
• PhD thesis writing
• Master thesis writing
• Bachelor thesis writing
• Dissertation writing service
• Dissertation abstract writing
• Thesis proposal writing
• Thesis editing service
• Thesis proofreading service
• Thesis formatting service
• Coursework writing service
• Research paper writing service
• Architecture thesis writing
• Computer science thesis writing
• Engineering thesis writing
• History thesis writing
• MBA thesis writing
• Nursing dissertation writing
• Psychology dissertation writing
• Sociology thesis writing
• Statistics dissertation writing
• Buy dissertation online
• Write my dissertation
• Cheap thesis
• Cheap dissertation
• Custom dissertation
• Dissertation help
• Pay for thesis
• Pay for dissertation
• Senior thesis
• Write my thesis

200 Finance Dissertation Topics: Quick Ideas For Students

Finance dissertation topics are on-demand in the 21st century. But why is this so? It may perplex you how everyone is up and down looking for interesting, quality finance topics. However, the answer is simple: because fascinating finance dissertation topics can earn students bonus points.

We will delve into that in just a second. Your finance topic dictates the difficulty of the assignment you are going to handle. Landing on the right topic means that you will not have to toil as much as when you pick a highly complex topic. Does it make sense?

Let’s explore the nitty-gritty of finance dissertation papers before we get into mentioning the top-rated finance research topics list.

What Is A Finance Dissertation?

As the name goes, finance dissertation is a kind of writing that investigates a particular finance topic selected by the student. The topics range from the stock market, banking, and risk management to healthcare finance topics.

This dissertation provides the student with a degree of academic self-confidence and personal satisfaction in the finance field. Finance writing requires extensive research to create a persuasive paper in the end.

Writing Tips For Finance Dissertations

Are you uncertain concerning what you need to do to compose a top-notch finance dissertation? Worry no more! Our professional writers have put together some essential suggestions to kick you off. In the next few minutes, you will be in a position to create a perfect finance dissertation painstakingly:

• Narrow down your topic : Trim down your finance topic to a specific niche. It should focus on one region; either micro-finance, macro-finance, or internet banking.
• Verify your facts : Finance is a field that includes a lot of statistical data to be followed logically. Therefore, verify facts and figures with reliable sources before opting to use them in your paper.
• Write concisely : Unlike other papers with long narrative tales, you should encapsulate a finance paper into a tight, concise paper. The rule of ‘short is sweet’ technically applies here at great length.
• Arrange your data neatly : A paper that is stuffed with numerals and charts all over may turn down a reader at first sight. For an impressive finance thesis, know-how and when to use your data.
• Write simply : Avoid jargon that may confuse an ordinary reader. Where a need is for technical terms to be used, illustrate them with relatable examples. Simplicity is gold in a finance dissertation. So, use it well.

With these tips and tricks, you are all set to start writing your finance paper. We now advance to another crucial part that will make sure your finance paper is refined and at per with your institution’s academic standards.

General Structure of a Finance Dissertation

It is crucial to consult your supervisor regarding your dissertation’s research methodology, structure, style, and reasonable length. Depending on the guidance of your supervisor, the structure may vary. Nonetheless, as a general guide, ensure the following sections are part and parcel of your dissertation:

• Introduction: State the problem that you intend to address in your dissertation. It also includes a definition of key terms, the relevance of the topic and a summary of hypotheses.
• Theoretical and empirical literature, hypotheses development and contribution: It provides the theoretical framework of your study. The hypotheses are based on the literature review.
• Data and methodology: State the model (i.e. dependent and key independent variables) that you want to use the drawing on theoretical framework or economic argument that you may employ for your analysis. Define all control variables and describe the data used to test the hypothesis.
• Empirical results: Describe the results and mention whether they are consistent with the hypotheses and relate them with the existing evidence in the literature. You will also describe the statistical and practical/economic significance of your findings.
• Summary and conclusion: Summarize your research and state the general conclusion with relevant implications.

It is important to have all the dataset you want to use readily available before finalizing the topic. The dataset is essential for testing your hypotheses.

There are thousands of research topics for finance students available all over the internet and academic books. You only have to browse and lookup for the latest research or refer to past readings or course lectures.

Even though this exercise may look simple enough on the surface, it takes a lot of time to consider what makes for interesting finance topics adequately. Not all ideas you find will achieve the academic requirements that your supervisor expects from you.

Here is a list of freshly mint topics to use for numerous finance situations:

Impressive Healthcare Finance Topics

Healthcare involves more than just treating patients and administering injections. There are finance aspects that also come into play, including:

• Strategies for marketplace achievement in turbulent times: Medical staff marketing
• Effects of the employer executive compensation and benefits plan after the Tax Reform Act of 1986
• Improving profitability through accelerating philanthropic giving to healthcare systems
• Acceleration and effective information strategies for cash management in hospitals
• Finding the system’s solution to health care cost accounting
• How hospitals spend money from charitable organizations and donor funding
• Models of enhancing cost accounting efforts by improving existing information sources
• Strategies of increasing cash flow with a patient accounting review
• A systematic review of productivity, cost accounting, and information systems
• A study of the cost accounting strategies under the prospective payment system
• How to manage bad debt and charity care accounts in hospitals
• Achieving more value from managed care efforts in healthcare systems
• Strategies of achieving economies of scale through shared ancillary and support services
• Profitable ways of financing the acquisition of a health care enterprise
• Effects of mergers and acquisitions on private hospitals
• Measuring nursing costs with patient acuity data in hospitals
• Affordable treatment and care for long-term and terminal diseases
• Survey of the organization and structure of a hospital’s administration concerning financing
• Impact of culture and globalization on healthcare financing
• Discuss the necessity for universal health coverage in the United States

Finance Management Project Topics

If you are a finance management enthusiast, this section will impress you the most:

• The impact of corrupt bank managers on its sustainability
• How banks finance small and medium-scale enterprises
• Loan granting and its recovery problems on commercial banks
• An evaluation of credit management in the banking industry
• The role of microfinance banks in the alleviation of poverty in the US
• Comparative evaluation strategies in mergers and acquisitions
• How to plan and invest in the insurance sector and tax planning
• Impact of shareholders on decision-making processes on banks
• How diversity in banks affects management and leadership practices
• Credit management techniques that work for small scale enterprises
• Appraisal on the impact of effective credit management on the profitability of commercial banks
• The impact of quantitative tools of monetary policy on the performance of deposit of commercial banks
• Financial management practices in the insurance industry and risk management
• The role of the capital market in economic development
• Problems facing financial institutions to the growth of small scale business in the USA
• Why training and development of human resources is a critical factor in bank operations
• The impact of universal banking financial system on the credibility
• Security threats to effective management in banks
• The effect of fiscal and monetary policy in controlling unemployment
• The effects of financial leverage on company performance

Topics in Mathematics With Applications in Finance

Mathematics and finance correlate in several ways in that they borrow concepts from each other. Here are some of the mathematics concepts that apply to finance paper topics:

• Linear algebra
• Probability theory
• Stochastic processes
• Regression analysis
• Value at risk models
• Time series analysis
• Volatility modelling
• Regularized pricing and risk models
• Commodity models
• Portfolio theory
• Factor modelling
• Stochastic differential equations
• Ross recovery theorem
• Option, price, and probability duality
• Black-Scholes formula, Risk-neutral valuation
• Introduction to counterparty credit risk
• HJM model for interest rates and credit
• Quanto credit hedging
• Calculus in finance and its application

International Finance Topics

International finance research topics deal with a range of monetary exchanges between two or more nations. Below is a list of international research topics in finance for you to browse through and pick a relevant one:

• A study of the most important concepts in international finance
• How internal auditing enhances good corporate governance practice in an organization
• Factors that affect the capital structure of Go Public manufacturing companies
• A financial engineering perspective on the causes of large price changes
• Corporate governance and board of directors responsibilities
• An exploratory study on the management of support services in international organizations
• An accounting perspective of the need for theorizing corporation
• Impact of coronavirus on international trade relations
• Is business ethics attainable in the global market arena
• How exchange rates affect international trading
• The role of currency derivatives in shaping the global market
• How to improve international capital structure
• How to forecast exchange rates
• Ways of measuring exposure to exchange rates fluctuations
• How to hedge exposure to exchange rates fluctuations globally
• How foreign direct investment puts individual countries at risk
• How to stabilize international capital markets
• A study of shadow banking in the global environment
• A comparative analysis of Western markets and African markets
• Exploring the monetary funding opportunities by the International Monetary Fund

Corporate Finance Research Topics

These 20 topics have the potential to help you write an amazing corporate finance paper, provided you have the will to work hard on your paper:

• Short- and long-term investment needs for working capital trends
• Identifying proper capital structure models for a company
• How capital structure and an organization’s funding of its operations relate
• Corporate finance decision making in unstable stock markets
• The effect of firm size on financial decision making incorporates
• Compare and contrast the different internationally recognized corporate financial reporting standards
• Evaluate the emerging concept integrated reporting in corporate finance
• Managing transparency in corporate financial decisions
• How technological connectivity has helped in integrated financial management
• How different investment models contribute to the success of a corporate
• The essence of valuation of cash flows in financial and non-financial corporates
• Identify the prevalent financial innovations in the USA
• Ways in which governance influences corporate financial activities
• Impact of taxes on dividend policies in developed nations
• How corporate strategies related to corporate finance
• Implications of the global economic crisis in the backdrop of corporate finance concepts
• How information technology impact corporate relations among companies
• Evaluate the effectiveness of corporate financing tools and techniques
• How do FDI strategies compare in Europe and Asia?
• The role of transparency and liquidity in alternative corporate investments

Finance Debate Topics

These finance debate topics are formulated in keeping with emerging financial issues globally:

• Is China’s economy on the verge of ousting that of the US?
• Does the dynamic nature of the global market affect the financial alienations of countries?
• Is Foreign Direct Investment in retail sector good for the US?
• Is it possible to maintain stable oil prices in the world?
• Are multinational corporations good for the global economy?
• Does the country of origin matter in selling a product?
• Are financial companies misusing ethics in marketing?
• Why should consumer always be king in marketing messages?
• Does commercialization serve in the best interest of the consumer?
• Why should companies bother having a mission statement?
• Why should hospitals receive tax subsidies and levies on drugs?
• Is television the best medium for advertisement?
• Is the guarantor principle security or a myth?
• Compare and contrast market trends in capitalism versus Marxism states
• Does the name of a business have an impact on its development record?
• Is it the responsibility of the government to finance small-scale business enterprises?
• Does budgeting truly serve its purpose in a company?
• Why should agricultural imports be banned?
• Is advertising a waste of company resources?
• Why privatization will lead to less corruption in companies

Finance Topics For Presentation

Is your group or individual finance presentation giving you sleepless nights just because you do not have a topic? Worry no more!

• The role of diplomatic ties in enhancing financial relations between countries
• Should banks use force when recovering loans from long-term defaulters?
• Why mortgages are becoming difficult to repay among the middle class
• Ways of improving the skilled workforce in developing
• How technology creates income disparities among social classes
• The role of rational thinking in making financial decisions
• How much capital is necessary for a start-up?
• Are investments in betting firms good for young people?
• How co-operatives are important in promoting communism in a society
• Why should countries stop receiving foreign aids and depend on themselves?
• Compare and contrast the performance of private sectors over public sectors
• How frequent should reforms be conducted in companies?
• How globalization affects nationalism
• Theories of financial development that is still applicable today
• Should business people head the finance ministry of countries?
• The impact of the transport sector on revenue and tax collection
• The impact of space exploration on the country’s economy
• How regional blocs are impacting developing nations
• Factors contributing to the growth of online scams
• What is the impact of trade unions in promoting businesses?

Finance Research Topics For MBA

Here is our best list of top-rated MBA financial topics to write about in 2023, which will generate more passion for a debate:

• Evaluate the effect of the Global crisis to use the line of credit in maintaining cash flow
• Discuss options for investment in the shipping industry in the US
• Financial risk management in the maritime industry: A case study of the blue economy
• Analyze the various financial risk indicators
• Financial laws that prevent volatility in the financial market
• How the global recession has impacted domestic banking industries
• Discuss IMF’s initiatives in tackling internal inefficiency of new projects
• How the WTO is essential in the global financial market
• The link between corporate and capital structures
• Why is it important to have an individual investment?
• How to handle credit crisis in financial marketing
• Financial planning for salaried employee and strategies for tax savings
• A study on Cost And Costing Models in Companies
• A critical study on investment patterns and preferences of retail investors
• Risk portfolio and perception management of equity investors
• Is there room for improvement in electronic payment systems?
• Risks and opportunities of investments versus savings
• Impact of investor awareness towards commodities in the market
• Is taxation a selling tool for life insurance
• Impact of earnings per share

Public Finance Topics

These interesting finance topics may augur well with university students majoring in public finance:

• Financial assistance for businesses and workers during Coronavirus lockdowns
• Debt sustainability in developing countries
• How we can use public money to leverage private funds
• Analyze the use of public funds in developed versus developing countries
• The reliability of sovereign credit ratings for investors in government securities
• Propose a method of analysis on the cost-benefit ratio of any government project
• The role of entities in charge of financial intermediation
• The reciprocity and impact of tariff barriers
• Impact of the exempted goods prices on the trade deficit
• Investor penalties and its impact in the form of taxes and penalties
• Public government projects that use private funds
• Ways of measuring the cost of sustainability
• Maintaining economic growth to avoid a strong recession
• The impact of the declining income and consumption rates
• Effects of quarantine and forced suspension of economic activity
• Innovative means of limiting the scale of pandemic development
• The growing scale of the public debt of the public finance system
• A critical analysis of the epidemiological safety instruments used in countries
• The growing debt crisis of the state finance system
• How to permanently improve and increase the scale of anti-crisis socio-economic policy planning

Business Finance Topics

You can address the following business finance research papers topics for your next assignment:

• How organizations are raising and managing funds
• Analyze the planning, analysis, and control operations and responsibilities of the financial manager
• Why business managers should take advantage of the federal stimulus package
• Economical ways of negotiating for lower monthly bills
• Evaluate the best retirement plans for entrepreneurs
• Tax reform changes needed to spearhead businesses to the next level
• How politicians can help small businesses make it to the top
• Setting up life insurance policies from which you can sidestep the banks and loan yourself money
• Why every business manager should know about profit and loss statements, revenue by customers and more.
• Advantages of creating multiple corporations to business entrepreneurs
• Why good liquidity is a vital weapon in the face of a crisis
• Reasons why many people are declaring bankruptcy during the coronavirus pandemic
• Why you should closely examine the numbers before making any financial decisions
• Benefits of corporations to small scale business ventures
• How to start a business without money at hand
• Strategies for improving your company’s online presence
• Discuss the challenge of debt versus equity for small-scale businesses
• The impact of financial decisions on the profitability and the risk of a firm’s operations
• Striking a balance between risk and profitability
• Why taking the ratio of current assets to current liabilities is important to any business

You can use any of the hot topics mentioned above for your finance dissertation paper or opt for our thesis writing services. We have competitive finance dissertation writing experts ready to tackle your paper to the core.

Try us today!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Comment * Error message

Name * Error message

Email * Error message

Save my name, email, and website in this browser for the next time I comment.

As Putin continues killing civilians, bombing kindergartens, and threatening WWIII, Ukraine fights for the world's peaceful future.

Ukraine Live Updates

• Write my thesis
• Thesis writers
• Buy thesis papers
• Bachelor thesis
• Master's thesis
• Thesis editing services
• Thesis proofreading services
• Buy a thesis online
• Write my dissertation
• Dissertation proposal help
• Pay for dissertation
• Custom dissertation
• Dissertation help online
• Buy dissertation online
• Cheap dissertation
• Dissertation editing services
• Write my research paper
• Buy research paper online
• Pay for research paper
• Research paper help
• Order research paper
• Custom research paper
• Cheap research paper
• Research papers for sale
• Thesis subjects
• How It Works

The List of 70 Accounting Thesis Topics for Students

Accounting describes the process of recording and consolidating financial transactions in business. It involves analyzing, reporting, and summarizing financial transactions to organizations, businesses, tax agencies, and regulators. This is usually presented via a financial statement, a concise summary of all the financial dealings over a stipulated period. It provides clear documented information of a company’s operations, cash flow, and present financial standing. High accounting standards improve the credibility of financial statements. These financial statements can range from cash flow statements, income statements, loss statements, balance sheets, etc. This constant and customary method of financial reporting enables shareholders and other beneficiaries of a business to examine the performance of the said business.

Accounting Thesis For Students

Accounting research topic ideas, topics for accounting thesis, interesting accounting topics for your paper, accounting research questions, accounting dissertation topics, research papers topics on accounting, financial topics to write about.

Accounting is essential for majorly business and management students. They start the basics of the subject in their lower levels, and some progress to further the subject in their higher studies. During this period of education, there will come a time they will require accounting topics for the thesis. They will need to focus on all the elements of the thesis in accounting and compile topics that will suit their interests.

Accounting thesis topics for students are tailored towards a particular aspect of the profession. In this manner, picking an accounting thesis topic and nurturing it will be based on your stage of education, be it an undergraduate, master’s, or PhD level.

Usually, there are areas of improvement and weaknesses in the world of finance. These errors are often the birth of research and analysis to create accounting research paper topics, buying a dissertation , or thesis topics in finance for students.

Trying to focus on many problems at a time can make you not finish your research topic in accounting at the appointed time. As a student, this is one error you want to avoid.

Naturally, you cannot master all the accounting subjects with the same ease. Hence, focus on the ones your strength resides in and discard the ones that posed a certain level of difficulty during the study. This is an important tip and recommendation when picking accounting topics for research. Here are some good examples of accounting research topics ideas.

• Accounting origin
• The Ethics of Accounting and Its Relevance in The Society
• Company structure influence on Accounting
• Information Systems For Accounting
• Accounting and Taxes
• Accounting as Relates to Personal Finance
• Profit Management
• Financial Markets and Accounting
• Accounting Methods Applied Throughout History
• The Age of Virtual Accountants

Accounting thesis topics for accounting students can be chosen according to the interests, and strengths each student shows in a certain period of their education. This can involve multiple accounting research paper topics, with the student now being left to choose the one they master more appropriately.

Usually, companies have weaknesses in different areas, it is a case of whether they are notable. When trying to pick accounting research topics as an undergraduate, you should focus on a singular problem and view it from various angles of prescriptive solutions.

• Inventories of Merchandise
• System Control and Inventory Management
• Manual of Different Accounting Principles
• International Financial Reporting Standards of Negligible Assets
• Procedures for Adopting Financial Reporting Standards
• Tax Culture as a Method of Keeping Companies in Check
• Accounting Guidelines of a Business
• Management Accounting Research
• Automation of Accounting Processes and Its Effects on Businesses
• Data Technology in Accounting Functions

These accounting topics come in forms that pique the interest of accountants and everyday business people. It should be bold, descriptive, and tally with a trending and important issue in all areas that concern the accounting sector. Getting topics like these are not as easy as you would imagine. It usually takes broad-spectrum research and paying rapt attention to business accounting flaws or potential problems.

• Modern Techniques of Debt Management
• Latest Technologies in Digital Accounting
• Fundamental Forensic Accountancy Skills
• Importance of Fast Information Integration for Modern Accounting
• Analysis and Design Risk in Accounting Systems
• Accounting Management and Financial Markets
• Issues in Implementation of Theoretical Accounting Processes in Applied Accounting
• Strategies to Make Organizational Finances Transparent
• Offshore Accounting Processes
• Significance of Financial Markets in Different Economies

When looking for accounting research topics ideas, determining the reason behind the question is the most challenging and vital decision in writing topics for accounting research papers. This difficulty arises because the foundation of your entire accounting topic depends on that one question.

Getting it wrong or mixing up the wrong statements can greatly impair the direction of your accounting topic for a research paper. Some good accounting research questions include:

• How to Investigate Forensic Accountancy?
• How to Avoid Debt Growth in Businesses?
• The Process of Making Accurate and Informed Accounting Decisions?
• How Does Culture Influence the Accounting System?
• Steps to Follow to Become a Certified and Chartered Accountant?
• How to Discover Effective Accounting Systems for Accountants?
• When Do You Need to Hire Personal Accountants?
• What are the limitations of digital Technology Evolution for the Accounting Niche?
• What Factors Facilitated the 2008 Worldwide Financial Crisis?
• What are the Processes Involved in Tax Assessment in Organizations?

In choosing an accounting topic for a project, you need to pick a topic that interests you, writing becomes easy and fast when you do. You can seek out simple accounting research topics if that’s what you can handle, or you could go for current accounting topics and interesting topics in finance.

However you choose to make that decision is up to you, but whatever topics you eventually come up with must not be vague or narrowly written. There should be a balance. Finally, you should extensively research and review your dissertation topic before making your topic decision. Having all these in mind, let’s look at some project topics on accounting.

• Quality in Quantitative Management Accounting Research
• Management Accounting and Supply Chain Strategy
• Notable Trends in Business Research and Accounting Finance and Management Control
• Effect of Auditing On Financial Reporting
• Importance of Fraud Detection in a Digital Environment
• The Globalization of Auditing Standards- an investigative analysis
• Studying the Effects of Intellectual Capital on the Development of Large Industries
• Tax Legislation in Freelance Businesses
• Critical Analysis of the Effects of Small Business Budgeting on Tertiary Institutions

Research papers on accounting involve a great deal of interest in the subject matter being researched. The aim is to enlighten and provide analytical detail to the readers. Also, in choosing a research paper topic, you should aim to acquire your readers’ attention.

This can be achieved by having sound knowledge of the research topic and gathering relevant information to explain the research better. Here are some good examples of accounting topic research papers.

• A Review on Government Management Accounting: Research in 2022
• Business Correspondence Analysis: Its Application in Management Accounting Research
• The Conceptual Framework of Strategic Management Accounting
• Meaning of Accounting Theories for Business
• What Impact Does Accounting Information Systems Have on Business Performance?
• Best Accounting Practices for Online Businesses
• Problems with the Normative Theory of Accounting
• Implementation of the International Public Sector Accounting Standards Board in the University System
• The Relationship between Public Sector Expenditure Accounting and Infrastructural Development
• Application of Accounting Standards in Critical Business Processes of Financial Conglomerates.

In the world of finance, various improvements are to be made with various issues that need solving. Highlighting the need for change and evolution brings about the intention of addressing these issues.

With the inception of digital currencies, new online databases for recording and carrying out financial transactions, there is a wealth of financial discussions to be had. With this fact also comes greater financial issues that need attention. Some eye-opening financial topics you can write about to address some financial systems include:

• Need for Accounting Technology
• Issues of Financial Ethics
• How to Develop and Improve Financial Systems
• Perspectives on Earnings Management
• Effective Methods of Tax Reduction for Organizations
• Role of Financial Markets in Accounting Management
• Methods of Preventing Financial Fraud
• What you should know about the Goldman Sachs Securities Fraud Case
• Commodities in Financial Markets
• Effect of External Factors on Cash Flow

Wrapping up

Accounting thesis topics for students are nearly limitless. Not only with the issues that need solving or understanding, but the different facets of accounting that the world currently operates on that’s why many students are looking for help who will write my thesis , we have good news for such students because we have been doing this for a long time. This gives room for continuous enlightening and improvement due to the various areas accounting comes in contact with. There is the realm of management accounting, auditing, tax accounting, bookkeeping, online accounting, and many more. With the different list of accounting topics and thesis topics suggested, you can pick out any of them and chart your course to become a great accountant in the future.

Leave a Reply Cancel reply

• Princeton University Doctoral Dissertations, 2011-2024
• Operations Research and Financial Engineering

Items in Dataspace are protected by copyright, with all rights reserved, unless otherwise indicated.

• USF Research
• USF Libraries

Digital Commons @ USF > Muma College of Business > School of Accountancy > Theses and Dissertations

Accounting Theses and Dissertations

Theses/dissertations from 2024 2024.

Through the Looking Glass: Overcoming Algorithm Aversion in Accounting , David E. Watson

Theses/Dissertations from 2023 2023

The Rise of Text Analysis: Using Machine Learning to Explain the Variation in Going Concern Accuracy , Yimei Zhang

Theses/Dissertations from 2017 2017

Applying the Theory of Planned Behavior to Influence Auditors' Knowledge-Sharing Behavior , Xu Cheng

Theses/Dissertations from 2015 2015

Retail Investors' Perceptions of Financial Disclosures on Social Media: An Experimental Investigation Using Twitter , Neal Michael Snow

Does the Format of Internal Control Disclosures Matter? An Experimental Investigation of Nonprofessional Investor Behavior , Amanuel Fekade Tadesse

Theses/Dissertations from 2013 2013

Do Changing Reference Levels affect the Long-Term Effectiveness of Incentive Contracts? , Lee Michael Kersting

Theses/Dissertations from 2010 2010

The Effects of Directional Audit Guidance and Estimation Uncertainty on Auditor Confirmation Bias and Professional Skepticism When Evaluating Fair Value Estimates , Norma R. Montague

Theses/Dissertations from 2009 2009

Mitigating Escalation of Commitment: An Investigation of the Effects of Priming and Decision-Making Setting in Capital Project Continuation Decisions , Ann C. Dzuranin

Understanding and Improving Use-Tax Compliance: A Theory of Planned Behavior Approach , Christopher Robert Jones

Theses/Dissertations from 2008 2008

Detecting Financial Statement Fraud: Three Essays on Fraud Predictors, Multi-Classifier Combination and Fraud Detection Using Data Mining , Johan L. Perols

Performance and Perception: An Experimental Investigation of the Impact of Continuous Reporting and Continuous Assurance on Individual Investors , Anita Reed

The Effect of Multidimensional Information Presentation on the Effectiveness and Efficiency of a Spatial Accounting Judgment , John K. Tan

Advanced Search

• Email Notifications and RSS
• All Collections
• USF Faculty Publications
• Open Access Journals
• Conferences and Events
• Theses and Dissertations
• Textbooks Collection

Useful Links

• Rights Information
• SelectedWorks
• Submit Research

Home | About | Help | My Account | Accessibility Statement | Language and Diversity Statements

Privacy Copyright

Have a language expert improve your writing

Run a free plagiarism check in 10 minutes, generate accurate citations for free.

• Knowledge Base
• How to Write a Thesis Statement | 4 Steps & Examples

How to Write a Thesis Statement | 4 Steps & Examples

Published on January 11, 2019 by Shona McCombes . Revised on August 15, 2023 by Eoghan Ryan.

A thesis statement is a sentence that sums up the central point of your paper or essay . It usually comes near the end of your introduction .

Your thesis will look a bit different depending on the type of essay you’re writing. But the thesis statement should always clearly state the main idea you want to get across. Everything else in your essay should relate back to this idea.

You can write your thesis statement by following four simple steps:

• Start with a question
• Write your initial answer
• Develop your answer
• Refine your thesis statement

Instantly correct all language mistakes in your text

Upload your document to correct all your mistakes in minutes

Table of contents

What is a thesis statement, placement of the thesis statement, step 1: start with a question, step 2: write your initial answer, step 3: develop your answer, step 4: refine your thesis statement, types of thesis statements, other interesting articles, frequently asked questions about thesis statements.

A thesis statement summarizes the central points of your essay. It is a signpost telling the reader what the essay will argue and why.

The best thesis statements are:

• Concise: A good thesis statement is short and sweet—don’t use more words than necessary. State your point clearly and directly in one or two sentences.
• Contentious: Your thesis shouldn’t be a simple statement of fact that everyone already knows. A good thesis statement is a claim that requires further evidence or analysis to back it up.
• Coherent: Everything mentioned in your thesis statement must be supported and explained in the rest of your paper.

Receive feedback on language, structure, and formatting

Professional editors proofread and edit your paper by focusing on:

• Academic style
• Vague sentences
• Style consistency

See an example

The thesis statement generally appears at the end of your essay introduction or research paper introduction .

The spread of the internet has had a world-changing effect, not least on the world of education. The use of the internet in academic contexts and among young people more generally is hotly debated. For many who did not grow up with this technology, its effects seem alarming and potentially harmful. This concern, while understandable, is misguided. The negatives of internet use are outweighed by its many benefits for education: the internet facilitates easier access to information, exposure to different perspectives, and a flexible learning environment for both students and teachers.

You should come up with an initial thesis, sometimes called a working thesis , early in the writing process . As soon as you’ve decided on your essay topic , you need to work out what you want to say about it—a clear thesis will give your essay direction and structure.

You might already have a question in your assignment, but if not, try to come up with your own. What would you like to find out or decide about your topic?

For example, you might ask:

After some initial research, you can formulate a tentative answer to this question. At this stage it can be simple, and it should guide the research process and writing process .

Now you need to consider why this is your answer and how you will convince your reader to agree with you. As you read more about your topic and begin writing, your answer should get more detailed.

In your essay about the internet and education, the thesis states your position and sketches out the key arguments you’ll use to support it.

The negatives of internet use are outweighed by its many benefits for education because it facilitates easier access to information.

In your essay about braille, the thesis statement summarizes the key historical development that you’ll explain.

The invention of braille in the 19th century transformed the lives of blind people, allowing them to participate more actively in public life.

A strong thesis statement should tell the reader:

• Why you hold this position
• What they’ll learn from your essay
• The key points of your argument or narrative

The final thesis statement doesn’t just state your position, but summarizes your overall argument or the entire topic you’re going to explain. To strengthen a weak thesis statement, it can help to consider the broader context of your topic.

These examples are more specific and show that you’ll explore your topic in depth.

Your thesis statement should match the goals of your essay, which vary depending on the type of essay you’re writing:

• In an argumentative essay , your thesis statement should take a strong position. Your aim in the essay is to convince your reader of this thesis based on evidence and logical reasoning.
• In an expository essay , you’ll aim to explain the facts of a topic or process. Your thesis statement doesn’t have to include a strong opinion in this case, but it should clearly state the central point you want to make, and mention the key elements you’ll explain.

If you want to know more about AI tools , college essays , or fallacies make sure to check out some of our other articles with explanations and examples or go directly to our tools!

• Ad hominem fallacy
• Post hoc fallacy
• Appeal to authority fallacy
• False cause fallacy
• Sunk cost fallacy

College essays

• Choosing Essay Topic
• Write a College Essay
• Write a Diversity Essay
• College Essay Format & Structure
• Comparing and Contrasting in an Essay

 (AI) Tools

• Grammar Checker
• Paraphrasing Tool
• Text Summarizer
• AI Detector
• Plagiarism Checker
• Citation Generator

A thesis statement is a sentence that sums up the central point of your paper or essay . Everything else you write should relate to this key idea.

The thesis statement is essential in any academic essay or research paper for two main reasons:

• It gives your writing direction and focus.
• It gives the reader a concise summary of your main point.

Without a clear thesis statement, an essay can end up rambling and unfocused, leaving your reader unsure of exactly what you want to say.

Follow these four steps to come up with a thesis statement :

• Ask a question about your topic .
• Write your initial answer.
• Develop your answer by including reasons.
• Refine your answer, adding more detail and nuance.

The thesis statement should be placed at the end of your essay introduction .

Cite this Scribbr article

If you want to cite this source, you can copy and paste the citation or click the “Cite this Scribbr article” button to automatically add the citation to our free Citation Generator.

McCombes, S. (2023, August 15). How to Write a Thesis Statement | 4 Steps & Examples. Scribbr. Retrieved September 18, 2024, from https://www.scribbr.com/academic-essay/thesis-statement/

Is this article helpful?

Shona McCombes

Other students also liked, how to write an essay introduction | 4 steps & examples, how to write topic sentences | 4 steps, examples & purpose, academic paragraph structure | step-by-step guide & examples, get unlimited documents corrected.

✔ Free APA citation check included ✔ Unlimited document corrections ✔ Specialized in correcting academic texts

• Search Search Please fill out this field.

What Is an Investment Thesis?

• Understanding the Thesis

Special Considerations

• What's Included?

The Bottom Line

• Portfolio Management

Investment Thesis: An Argument in Support of Investing Decisions

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

The term investment thesis refers to a reasoned argument for a particular investment strategy, backed up by research and analysis. Investment theses are commonly prepared by (and for) individual investors and businesses. These formal written documents may be prepared by analysts or other financial professionals for presentation to their clients.

Key Takeaways

• An investment thesis is a written document that recommends a new investment, based on research and analysis of its potential for profit.
• Individual investors can use this technique to investigate and select investments that meet their goals.
• Financial professionals use the investment thesis to pitch their ideas.

Understanding the Investment Thesis

As noted above, an investment thesis is a written document that provides information about a potential investment. It is a research- and analysis-based proposal that is usually drafted by an investment or financial professional to provide insight into investments and to pitch investment ideas. In some cases, the investor will draft their own investment thesis, as is the case with venture capitalists and private equity firms.

This thesis can be used as a strategic decision-making tool. Investors and companies can use a thesis to decide whether or not to pursue a particular investment, such as a stock or acquiring another company. Or it can be used as a way to look back and analyze why a particular decision was made in the first place—and whether it was the right one. Putting things in writing can have a huge impact on the direction of a potential investment.

Let's say an investor purchases a stock based on the investment thesis that the stock is undervalued . The thesis states that the investor plans to hold the stock for three years, during which its price will rise to reflect its true worth. At that point, the stock will be sold at a profit. A year later, the stock market crashes, and the investor's pick crashes with it. The investor recalls the investment thesis, relies on the integrity of its conclusions, and continues to hold the stock.

That is a sound strategy unless some event that is totally unexpected and entirely absent from the investment thesis occurs. Examples of these might include the 2007-2008 financial crisis or the Brexit vote that forced the United Kingdom out of the European Union (EU) in 2016. These were highly unexpected events, and they might affect someone's investment thesis.

If you think your investment thesis holds up, stick with it through thick and thin.

An investment thesis is generally formally documented, but there are no universal standards for the contents. Some require fast action and are not elaborate compositions. When a thesis concerns a big trend, such as a global macro perspective, the investment thesis may be well documented and might even include a fair amount of promotional materials for presentation to potential investing partners.

Portfolio management is now a science-based discipline, not unlike engineering or medicine. As in those fields, breakthroughs in basic theory, technology, and market structures continuously translate into improvements in products and in professional practices. The investment thesis has been strengthened with qualitative and quantitative methods that are now widely accepted.

As with any thesis, an idea may surface but it is methodical research that takes it from an abstract concept to a recommendation for action. In the world of investments, the thesis serves as a game plan.

What's Included in an Investment Thesis?

Although there's no industry standard, there are usually some common components to this document. Remember, an investment thesis is generally a proposal that is based on research and analysis. As such, it is meant to be a guide about the viability of a particular investment.

Most investment theses include (but aren't limited to) the following information:

• The investment in question
• The investment goal(s)
• Viability of the investment, including any trends that support the investment
• Potential downsides and risks that may be associated with the investment
• Costs and potential returns as well as any losses that may result

Some theses also try to answer some key questions, including:

• Does the investment align with the intended goal(s)?
• What could go wrong?
• What do the financial statements say?
• What is the growth potential of this investment?

Putting everything in writing can help investors make more informed decisions. For instance, a company's management team can use a thesis to decide whether or not to pursue the acquisition of a rival. The thesis may highlight whether the target's vision aligns with the acquirer or it may identify opportunities for growth in the market.

Keep in mind that the complexity of an investment thesis depends on the type of investor involved and the nature of the investment. So the investment thesis for a corporation looking to acquire a rival may be more in-depth and complicated compared to that of an individual investor who wants to develop an investment portfolio.

Examples of an Investment Thesis

Portfolio managers and investment companies often post information about their investment theses on their websites. The following are just two examples.

Morgan Stanley

Morgan Stanley ( MS ) is one of the world's leading financial services firms. It offers investment management services, investment banking, securities, and wealth management services. According to the company, it has five steps that make up its investment process, including idea generation, quality assessment, valuation, risk management , and portfolio construction.

When it comes to developing its investment thesis, the company tries to answer three questions as part of its quality assessment step:

• "Is the company a disruptor or is it insulated from disruptive change? 
• Does the company demonstrate financial strength with high returns on invested capital, high margins, strong cash conversion, low capital intensity and low leverage? 
• Are there environmental or social externalities not borne by the company, or governance and accounting risks that may alter the investment thesis?"

Connetic Ventures

Connetic Adventures is a venture capital firm that invests in early-stage companies. The company uses data to develop its investment thesis, which is made up of three pillars. According to its blog, there were three pillars or principles that contributed to Connetic's venture capital investment strategy. These included diversification, value, and follow-on—each of which comes with a pro and con.

Why Is an Investment Thesis Important?

An investment thesis is a written proposal or research-based analysis of why investors or companies should pursue an investment. In some cases, it may also serve as a historical guide as to whether the investment was a good move or not. Whatever the reason, an investment thesis allows investors to make better, more informed decisions about whether to put their money into a specific investment. This written document provides insight into what the investment is, the goals of the investment, any associated costs, the potential for returns, as well as any possible risks and losses that may result.

Who Should Have an Investment Thesis?

An investment thesis is important for anyone who wants to invest their money. Individual investors can use a thesis to decide whether to purchase stock in a particular company and what strategy they should use, whether it's a buy-and-hold strategy or one where they only have the stock for a short period of time. A company can craft its own investment thesis to help weigh out whether an acquisition or growth strategy is worthwhile.

How Do You Create an Investment Thesis?

It's important to put your investment thesis in writing. Seeing your proposal in print can help you make a better decision. When you're writing your investment thesis, be sure to be clear and concise. Make sure you do your research and include any facts and figures that can help you make your decision. Be sure to include your goals, the potential for upside, and any risks that you may come across. Try to ask and answer some key questions, including whether the investment meets your investment goals and what could go wrong if you go ahead with the deal.

It's always important to have a plan, especially when it comes to investing. After all, you are putting your money at risk. Having an investment thesis can help you make more informed decisions about whether a potential investment is worth your while. Make sure you put your thesis in writing and answer some key questions about your goals, costs, and potential outcomes. Having a concrete proposal in place can spell the difference between earning returns and losing all your money. And that's if your thesis supports the investment in the first place.

Harvard Business School. " Writing a Credible Investment Thesis ."

Lanturn. " What is an Investment Thesis and 3 Tips to Make One ."

Morgan Stanley. " Global Opportunity ."

Medium. " The Data That Built Our Fund's Investment Thesis ."

• Terms of Service
• Editorial Policy
• Privacy Policy

• Bibliography
• More Referencing guides Blog Automated transliteration Relevant bibliographies by topics
• Automated transliteration
• Relevant bibliographies by topics
• Referencing guides

Financial technology and the future of banking

• Daniel Broby   ORCID: orcid.org/0000-0001-5482-0766 1  

Financial Innovation volume  7 , Article number:  47 ( 2021 ) Cite this article

51k Accesses

62 Citations

5 Altmetric

Metrics details

This paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how financial intermediation will be impacted by innovative financial technology applications. It further reviews the options that established banks will have to consider in order to mitigate the threat to their profitability. Deposit taking and lending are considered in the context of the challenge made from shadow banking and the all-digital banks. The paper contributes to an understanding of the future of banking, providing a framework for scholarly empirical investigation. In the discussion, four possible strategies are proposed for market participants, (1) customer retention, (2) customer acquisition, (3) banking as a service and (4) social media payment platforms. It is concluded that, in an increasingly digital world, trust will remain at the core of banking. That said, liquidity transformation will still have an important role to play. The nature of banking and financial services, however, will change dramatically.

Introduction

The bank of the future will have several different manifestations. This paper extends theory to explain the impact of financial technology and the Internet on the nature of banking. It provides an analytical framework for academic investigation, highlighting the trends that are shaping scholarly research into these dynamics. To do this, it re-examines the nature of financial intermediation and transactions. It explains how digital banking will be structurally, as well as physically, different from the banks described in the literature to date. It does this by extending the contribution of Klein ( 1971 ), on the theory of the banking firm. It presents suggested strategies for incumbent, and challenger banks, and how banking as a service and social media payment will reshape the competitive landscape.

The banking industry has been evolving since Banca Monte dei Paschi di Siena opened its doors in 1472. Its leveraged business model has proved very scalable over time, but it is now facing new challenges. Firstly, its book to capital ratios, as documented by Berger et al ( 1995 ), have been consistently falling since 1840. This trend continues as competition has increased. In the past decade, the industry has experienced declines in profitability as measured by return on tangible equity. This is partly the result of falling leverage and fee income and partly due to the net interest margin (connected to traditional lending activity). These trends accelerated following the 2008 financial crisis. At the same time, technology has made banks more competitive. Advances in digital technology are changing the very nature of banking. Banks are now distributing services via mobile technology. A prolonged period of very low interest rates is also having an impact. To sustain their profitability, Brei et al. ( 2020 ) note that many banks have increased their emphasis on fee-generating services.

As Fama ( 1980 ) explains, a bank is an intermediary. The Internet is, however, changing the way financial service providers conduct their role. It is fundamentally changing the nature of the banking. This in turn is changing the nature of banking services, and the way those services are delivered. As a consequence, in order to compete in the changing digital landscape, banks have to adapt. The banks of the future, both incumbents and challengers, need to address liquidity transformation, data, trust, competition, and the digitalization of financial services. Against this backdrop, incumbent banks are focused on reinventing themselves. The challenger banks are, however, starting with a blank canvas. The research questions that these dynamics pose need to be investigated within the context of the theory of banking, hence the need to revise the existing analytical framework.

Banks perform payment and transfer functions for an economy. The Internet can now facilitate and even perform these functions. It is changing the way that transactions are recorded on ledgers and is facilitating both public and private digital currencies. In the past, banks operated in a world of information asymmetry between themselves and their borrowers (clients), but this is changing. This differential gave one bank an advantage over another due to its knowledge about its clients. The digital transformation that financial technology brings reduces this advantage, as this information can be digitally analyzed.

Even the nature of deposits is being transformed. Banks in the future will have to accept deposits and process transactions made in digital form, either Central Bank Digital Currencies (CBDC) or cryptocurrencies. This presents a number of issues: (1) it changes the way financial services will be delivered, (2) it requires a discussion on resilience, security and competition in payments, (3) it provides a building block for better cross border money transfers and (4) it raises the question of private and public issuance of money. Braggion et al ( 2018 ) consider whether these represent a threat to financial stability.

The academic study of banking began with Edgeworth ( 1888 ). He postulated that it is based on probability. In this respect, the nature of the business model depends on the probability that a bank will not be called upon to meet all its liabilities at the same time. This allows banks to lend more than they have in deposits. Because of the resultant mismatch between long term assets and short-term liabilities, a bank’s capital structure is very sensitive to liquidity trade-offs. This is explained by Diamond and Rajan ( 2000 ). They explain that this makes a bank a’relationship lender’. In effect, they suggest a bank is an intermediary that has borrowed from other investors.

Diamond and Rajan ( 2000 ) argue a lender can negotiate repayment obligations and that a bank benefits from its knowledge of the customer. As shall be shown, the new generation of digital challenger banks do not have the same tradeoffs or knowledge of the customer. They operate more like a broker providing a platform for banking services. This suggests that there will be more than one type of bank in the future and several different payment protocols. It also suggests that banks will have to data mine customer information to improve their understanding of a client’s financial needs.

The key focus of Diamond and Rajan ( 2000 ), however, was to position a traditional bank is an intermediary. Gurley and Shaw ( 1956 ) describe how the customer relationship means a bank can borrow funds by way of deposits (liabilities) and subsequently use them to lend or invest (assets). In facilitating this mediation, they provide a service whereby they store money and provide a mechanism to transmit money. With improvements in financial technology, however, money can be stored digitally, lenders and investors can source funds directly over the internet, and money transfer can be done digitally.

A review of financial technology and banking literature is provided by Thakor ( 2020 ). He highlights that financial service companies are now being provided by non-deposit taking contenders. This paper addresses one of the four research questions raised by his review, namely how theories of financial intermediation can be modified to accommodate banks, shadow banks, and non-intermediated solutions.

To be a bank, an entity must be authorized to accept retail deposits. A challenger bank is, therefore, still a bank in the traditional sense. It does not, however, have the costs of a branch network. A peer-to-peer lender, meanwhile, does not have a deposit base and therefore acts more like a broker. This leads to the issue that this paper addresses, namely how the banks of the future will conduct their intermediation.

In order to understand what the bank of the future will look like, it is necessary to understand the nature of the aforementioned intermediation, and the way it is changing. In this respect, there are two key types of intermediation. These are (1) quantitative asset transformation and, (2) brokerage. The latter is a common model adopted by challenger banks. Figure  1 depicts how these two types of financial intermediation match savers with borrowers. To avoid nuanced distinction between these two types of intermediation, it is common to classify banks by the services they perform. These can be grouped as either private, investment, or commercial banking. The service sub-groupings include payments, settlements, fund management, trading, treasury management, brokerage, and other agency services.

How banks act as intermediaries between lenders and borrowers. This function call also be conducted by intermediaries as brokers, for example by shadow banks. Disintermediation occurs over the internet where peer-to-peer lenders match savers to lenders

Financial technology has the ability to disintermediate the banking sector. The competitive pressures this results in will shape the banks of the future. The channels that will facilitate this are shown in Fig.  2 , namely the Internet and/or mobile devices. Challengers can participate in this by, (1) directly matching borrows with savers over the Internet and, (2) distributing white labels products. The later enables banking as a service and avoids the aforementioned liquidity mismatch.

The strategic options banks have to match lenders with borrowers. The traditional and challenger banks are in the same space, competing for business. The distributed banks use the traditional and challenger banks to white label banking services. These banks compete with payment platforms on social media. The Internet heralds an era of banking as a service

There are also physical changes that are being made in the delivery of services. Bricks and mortar branches are in decline. Mobile banking, or m-banking as Liu et al ( 2020 ) describe it, is an increasingly important distribution channel. Robotics are increasingly being used to automate customer interaction. As explained by Vishnu et al ( 2017 ), these improve efficiency and the quality of execution. They allow for increased oversight and can be built on legacy systems as well as from a blank canvas. Application programming interfaces (APIs) are bringing the same type of functionality to m-banking. They can be used to authorize third party use of banking data. How banks evolve over time is important because, according to the OECD, the activity in the financial sector represents between 20 and 30 percent of developed countries Gross Domestic Product.

In summary, financial technology has evolved to a level where online banks and banking as a service are challenging incumbents and the nature of banking mediation. Banking is rapidly transforming because of changes in such technology. At the same time, the solving of the double spending problem, whereby digital money can be cryptographically protected, has led to the possibility that paper money will become redundant at some point in the future. A theoretical framework is required to understand this evolving landscape. This is discussed next.

The theory of the banking firm: a revision

In financial theory, as eloquently explained by Fama ( 1980 ), banking provides an accounting system for transactions and a portfolio system for the storage of assets. That will not change for the banks of the future. Fama ( 1980 ) explains that their activities, in an unregulated state, fulfil the Modigliani–Miller ( 1959 ) theorem of the irrelevance of the financing decision. In practice, traditional banks compete for deposits through the interest rate they offer. This makes the transactional element dependent on the resulting debits and credits that they process, essentially making banks into bookkeeping entities fulfilling the intermediation function. Since this is done in response to competitive forces, the general equilibrium is a passive one. As such, the banking business model is vulnerable to disruption, particularly by innovation in financial technology.

A bank is an idiosyncratic corporate entity due to its ability to generate credit by leveraging its balance sheet. That balance sheet has assets on one side and liabilities on the other, like any corporate entity. The assets consist of cash, lending, financial and fixed assets. On the other side of the balance sheet are its liabilities, deposits, and debt. In this respect, a bank’s equity and its liabilities are its source of funds, and its assets are its use of funds. This is explained by Klein ( 1971 ), who notes that a bank’s equity W , borrowed funds and its deposits B is equal to its total funds F . This is the same for incumbents and challengers. This can be depicted algebraically if we let incumbents be represented by Φ and challengers represented by Γ:

Klein ( 1971 ) further explains that a bank’s equity is therefore made up of its share capital and unimpaired reserves. The latter are held by a bank to protect the bank’s deposit clients. This part is also mandated by regulation, so as to protect customers and indeed the entire banking system from systemic failure. These protective measures include other prudential requirements to hold cash reserves or other liquid assets. As shall be shown, banking services can be performed over the Internet without these protections. Banking as a service, as this phenomenon known, is expected to increase in the future. This will change the nature of the protection available to clients. It will change the way banks transform assets, explained next.

A bank’s deposits are said to be a function of the proportion of total funds obtained through the issuance of the ith deposit type and its total funds F , represented by α i . Where deposits, represented by Bs , are made in the form of Bs (i  =  1 *s n) , they generate a rate of interest. It follows that Si Bs  =  B . As such,

Therefor it can be said that,

The importance of Eq. 3 is that the balance sheet can be leveraged by the issuance of loans. It should be noted, however, that not all loans are returned to the bank in whole or part. Non-performing loans reduce the asset side of a bank’s balance sheet and act as a constraint on capital, and therefore new lending. Clearly, this is not the case with banking as a service. In that model, loans are brokered. That said, with the traditional model, an advantage of financial technology is that it facilitates the data mining of clients’ accounts. Lending can therefore be more targeted to borrowers that are more likely to repay, thereby reducing non-performing loans. Pari passu, the incumbent bank of the future will therefore have a higher risk-adjusted return on capital. In practice, however, banking as a service will bring greater competition from challengers and possible further erosion of margins. Alternatively, some banks will proactively engage in partnerships and acquisitions to maintain their customer base and address the competition.

A bank must have reserves to meet the demand of customers demanding their deposits back. The amount of these reserves is a key function of banking regulation. The Basel Committee on Banking Supervision mandates a requirement to hold various tiers of capital, so that banks have sufficient reserves to protect depositors. The Committee also imposes a framework for mitigating excessive liquidity risk and maturity transformation, through a set Liquidity Coverage Ratio and Net Stable Funding Ratio.

Recent revisions of theory, because of financial technology advances, have altered our understanding of banking intermediation. This will impact the competitive landscape and therefor shape the nature of the bank of the future. In this respect, the threat to incumbent banks comes from peer-to-peer Internet lending platforms. These perform the brokerage function of financial intermediation without the use of the aforementioned banking balance sheet. Unlike regulated deposit takers, such lending platforms do not create assets and do not perform risk and asset transformation. That said, they are reliant on investors who do not always behave in a counter cyclical way.

Financial technology in banking is not new. It has been used to facilitate electronic markets since the 1980’s. Thakor ( 2020 ) refers to three waves of application of financial innovation in banking. The advent of institutional futures markets and the changing nature of financial contracts fundamentally changed the role of banks. In response to this, academics extended the concept of a bank into an entity that either fulfills the aforementioned functions of a broker or a qualitative asset transformer. In this respect, they connect the providers and users of capital without changing the nature of the transformation of the various claims to that capital. This transformation can be in the form risk transfer or the application of leverage. The nature of trading of financial assets, however, is changing. Price discovery can now be done over the Internet and that is moving liquidity from central marketplaces (like the stock exchange) to decentralized ones.

Alongside these trends, in considering what the bank of the future will look like, it is necessary to understand the unregulated lending market that competes with traditional banks. In this part of the lending market, there has been a rise in shadow banks. The literature on these entities is covered by Adrian and Ashcraft ( 2016 ). Shadow banks have taken substantial market share from the traditional banks. They fulfil the brokerage function of banks, but regulators have only partial oversight of their risk transformation or leverage. The rise of shadow banks has been facilitated by financial technology and the originate to distribute model documented by Bord and Santos ( 2012 ). They use alternative trading systems that function as electronic communication networks. These facilitate dark pools of liquidity whereby buyers and sellers of bonds and securities trade off-exchange. Since the credit crisis of 2008, total broker dealer assets have diverged from banking assets. This illustrates the changed lending environment.

In the disintermediated market, banking as a service providers must rely on their equity and what access to funding they can attract from their online network. Without this they are unable to drive lending growth. To explain this, let I represent the online network. Extending Klein ( 1971 ), further let Ψ represent banking as a service and their total funds by F . This state is depicted as,

Theoretically, it can be shown that,

Shadow banks, and those disintermediators who bypass the banking system, have an advantage in a world where technology is ubiquitous. This becomes more apparent when costs are considered. Buchak et al. ( 2018 ) point out that shadow banks finance their originations almost entirely through securitization and what they term the originate to distribute business model. Diversifying risk in this way is good for individual banks, as banking risks can be transferred away from traditional banking balance sheets to institutional balance sheets. That said, the rise of securitization has introduced systemic risk into the banking sector.

Thus, we can see that the nature of banking capital is changing and at the same time technology is replacing labor. Let A denote the number of transactions per account at a period in time, and C denote the total cost per account per time period of providing the services of the payment mechanism. Klein ( 1971 ) points out that, if capital and labor are assumed to be part of the traditional banking model, it can be observed that,

It can therefore be observed that the total service charge per account at a period in time, represented by S, has a linear and proportional relationship to bank account activity. This is another variable that financial technology can impact. According to Klein ( 1971 ) this can be summed up in the following way,

where d is the basic bank decision variable, the service charge per transaction. Once again, in an automated and digital environment, financial technology greatly reduces d for the challenger banks. Swankie and Broby ( 2019 ) examine the impact of Artificial Intelligence on the evaluation of banking risk and conclude that it improves such variables.

Meanwhile, the traditional banking model can be expressed as a product of the number of accounts, M , and the average size of an account, N . This suggests a banks implicit yield is it rate of interest on deposits adjusted by its operating loss in each time period. This yield is generated by payment and loan services. Let R 1 depict this. These can be expressed as a fraction of total demand deposits. This is depicted by Klein ( 1971 ), if one assumes activity per account is constant, as,

As a result, whether a bank is structured with traditional labor overheads or built digitally, is extremely relevant to its profitability. The capital and labor of tradition banks, depicted as Φ i , is greater than online networks, depicted as I i . As such, the later have an advantage. This can be shown as,

What Klein (1972) failed to highlight is that the banking inherently involves leverage. Diamond and Dybving (1983) show that leverage makes bank susceptible to run on their liquidity. The literature divides these between adverse shock events, as explained by Bernanke et al ( 1996 ) or moral hazard events as explained by Demirgu¨¸c-Kunt and Detragiache ( 2002 ). This leverage builds on the balance sheet mismatch of short-term assets with long term liabilities. As such, capital and liquidity are intrinsically linked to viability and solvency.

The way capital and liquidity are managed is through credit and default management. This is done at a bank level and a supervisory level. The Basel Committee on Banking Supervision applies capital and leverage ratios, and central banks manage interest rates and other counter-cyclical measures. The various iterations of the prudential regulation of banks have moved the microeconomic theory of banking from the modeling of risk to the modeling of imperfect information. As mentioned, shadow and disintermediated services do not fall under this form or prudential regulation.

The relationship between leverage and insolvency risk crucially depends on the degree of banks total funds F and their liability structure L . In this respect, the liability structure of traditional banks is also greater than online networks which do not have the same level of available funds, depicted as,

Diamond and Dybvig ( 1983 ) observe that this liability structure is intimately tied to a traditional bank’s assets. In this respect, a bank’s ability to finance its lending at low cost and its ability to achieve repayment are key to its avoidance of insolvency. Online networks and/or brokers do not have to finance their lending, simply source it. Similarly, as brokers they do not face capital loss in the event of a default. This disintermediates the bank through the use of a peer-to-peer environment. These lenders and borrowers are introduced in digital way over the internet. Regulators have taken notice and the digital broker advantage might not last forever. As a result, the future may well see greater cooperation between these competing parties. This also because banks have valuable operational experience compared to new entrants.

It should also be observed that bank lending is either secured or unsecured. Interest on an unsecured loan is typically higher than the interest on a secured loan. In this respect, incumbent banks have an advantage as their closeness to the customer allows them to better understand the security of the assets. Berger et al ( 2005 ) further differentiate lending into transaction lending, relationship lending and credit scoring.

The evolution of the business model in a digital world

As has been demonstrated, the bank of the future in its various manifestations will be a consequence of the evolution of the current banking business model. There has been considerable scholarly investigation into the uniqueness of this business model, but less so on its changing nature. Song and Thakor ( 2010 ) are helpful in this respect and suggest that there are three aspects to this evolution, namely competition, complementary and co-evolution. Although liquidity transformation is evolving, it remains central to a bank’s role.

All the dynamics mentioned are relevant to the economy. There is considerable evidence, as outlined by Levine ( 2001 ), that market liberalization has a causal impact on economic growth. The impact of technology on productivity should prove positive and enhance the functioning of the domestic financial system. Indeed, market liberalization has already reshaped banking by increasing competition. New fee based ancillary financial services have become widespread, as has the proprietorial use of balance sheets. Risk has been securitized and even packaged into trade-able products.

Challenger banks are developing in a complementary way with the incumbents. The latter have an advantage over new entrants because they have information on their customers. The liquidity insurance model, proposed by Diamond and Dybvig ( 1983 ), explains how such banks have informational advantages over exchange markets. That said, financial technology changes these dynamics. It if facilitating the processing of financial data by third parties, explained in greater detail in the section on Open Banking.

At the same time, financial technology is facilitating banking as a service. This is where financial services are delivered by a broker over the Internet without resort to the balance sheet. This includes roboadvisory asset management, peer to peer lending, and crowd funding. Its growth will be facilitated by Open Banking as it becomes more geographically adopted. Figure  3 illustrates how these business models are disintermediating the traditional banking role and matching burrowers and savers.

The traditional view of banks ecosystem between savers and borrowers, atop the Internet which is matching savers and borrowers directly in a peer-to-peer way. The Klein ( 1971 ) theory of the banking firm does not incorporate the mirrored dynamics, and as such needs to be extended to reflect the digital innovation that impacts both borrowers and severs in a peer-to-peer environment

Meanwhile, the banking sector is co-evolving alongside a shadow banking phenomenon. Lenders and borrowers are interacting, but outside of the banking sector. This is a concern for central banks and banking regulators, as the lending is taking place in an unregulated environment. Shadow banking has grown because of financial technology, market liberalization and excess liquidity in the asset management ecosystem. Pozsar and Singh ( 2011 ) detail the non-bank/bank intersection of shadow banking. They point out that shadow banking results in reverse maturity transformation. Incumbent banks have blurred the distinction between their use of traditional (M2) liabilities and market-based shadow banking (non-M2) liabilities. This impacts the inter-generational transfers that enable a bank to achieve interest rate smoothing.

Securitization has transformed the risk in the banking sector, transferring it to asset management institutions. These include structured investment vehicles, securities lenders, asset backed commercial paper investors, credit focused hedge and money market funds. This in turn has led to greater systemic risk, the result of the nature of the non-traded liabilities of securitized pooling arrangements. This increased risk manifested itself in the 2008 credit crisis.

Commercial pressures are also shaping the banking industry. The drive for cost efficiency has made incumbent banks address their personally costs. Bank branches have been closed as technology has evolved. Branches make it easier to withdraw or transfer deposits and challenger banks are not as easily able to attract new deposits. The banking sector is therefore looking for new point of customer contact, such as supermarkets, post offices and social media platforms. These structural issues are occurring at the same time as the retail high street is also evolving. Banks have had an aggressive roll out of automated telling machines and a reduction in branches and headcount. Online digital transactions have now become the norm in most developed countries.

The financing of banks is also evolving. Traditional banks have tended to fund illiquid assets with short term and unstable liquid liabilities. This is one of the key contributors to the rise to the credit crisis of 2008. The provision of liquidity as a last resort is central to the asset transformation process. In this respect, the banking sector experienced a shock in 2008 in what is termed the credit crisis. The aforementioned liquidity mismatch resulted in the system not being able to absorb all the risks associated with subprime lending. Central banks had to resort to quantitative easing as a result of the failure of overnight funding mechanisms. The image of the entire banking sector was tarnished, and the banks of the future will have to address this.

The future must learn from the mistakes of the past. The structural weakness of the banking business model cannot be solved. That said, the latest Basel rules introduce further risk mitigation, improved leverage ratios and increased levels of capital reserve. Another lesson of the credit crisis was that there should be greater emphasis on risk culture, governance, and oversight. The independence and performance of the board, the experience and the skill set of senior management are now a greater focus of regulators. Internal controls and data analysis are increasingly more robust and efficient, with a greater focus on a banks stable funding ratio.

Meanwhile, the very nature of money is changing. A digital wallet for crypto-currencies fulfills much the same storage and transmission functions of a bank; and crypto-currencies are increasing being used for payment. Meanwhile, in Sweden, stores have the right to refuse cash and the majority of transactions are card based. This move to credit and debit cards, and the solving of the double spending problem, whereby digital money can be crypto-graphically protected, has led to the possibility that paper money could be replaced at some point in the future. Whether this might be by replacement by a CBDC, or decentralized digital offering, is of secondary importance to the requirement of banks to adapt. Whether accommodating crytpo-currencies or CBDC’s, Kou et al. ( 2021 ) recommend that banks keep focused on alternative payment and money transferring technologies.

Central banks also have to adapt. To limit disintermediation, they have to ensure that the economic design of their sponsored digital currencies focus on access for banks, interest payment relative to bank policy rate, banking holding limits and convertibility with bank deposits. All these developments have implications for banks, particularly in respect of funding, the secure storage of deposits and how digital currency interacts with traditional fiat money.

Open banking

Against the backdrop of all these trends and changes, a new dynamic is shaping the future of the banking sector. This is termed Open Banking, already briefly mentioned. This new way of handling banking data protocols introduces a secure way to give financial service companies consensual access to a bank’s customer financial information. Figure  4 illustrates how this works. Although a fairly simple concept, the implications are important for the banking industry. Essentially, a bank customer gives a regulated API permission to securely access his/her banking website. That is then used by a banking as a service entity to make direct payments and/or download financial data in order to provide a solution. It heralds an era of customer centric banking.

How Open Banking operates. The customer generates data by using his bank account. A third party provider is authorized to access that data through an API request. The bank confirms digitally that the customer has authorized the exchange of data and then fulfills the request

Open Banking was a response to the documented inertia around individual’s willingness to change bank accounts. Following the Retail Banking Review in the UK, this was addressed by lawmakers through the European Union’s Payment Services Directive II. The legislation was designed to make it easier to change banks by allowing customers to delegate authority to transfer their financial data to other parties. As a result of this, a whole host of data centric applications were conceived. Open banking adds further momentum to reshaping the future of banking.

Open Banking has a number of quite revolutionary implications. It was started so customers could change banks easily, but it resulted in some secondary considerations which are going to change the future of banking itself. It gives a clear view of bank financing. It allows aggregation of finances in one place. It also allows can give access to attractive offerings by allowing price comparisons. Open Banking API’s build a secure online financial marketplace based on data. They also allow access to a larger market in a faster way but the third-party providers for the new entrants. Open Banking allows developers to build single solutions on an API addressing very specific problems, like for example, a cash flow based credit rating.

Romānova et al. ( 2018 ) undertook a questionnaire on the Payment Services Directive II. The results suggest that Open Banking will promote competitiveness, innovation, and new product development. The initiative is associated with low costs and customer satisfaction, but that some concerns about security, privacy and risk are present. These can be mitigated, to some extent, by secure protocols and layered permission access.

Discussion: strategic options

Faced with these disruptive trends, there are four strategic options for market participants to con- sider. There are (1) a defensive customer retention strategy for incumbents, (2) an aggressive customer acquisition strategy for challenger banks (3) a banking as a service strategy for new entrants, and (4) a payments strategy for social media platforms.

Each of these strategies has to be conducted in a competitive marketplace for money demand by potential customers. Figure  5 illustrates where the first three strategies lie on the tradeoff between money demand and interest rates. The payment strategy can’t be modeled based on the supply of money. In the figure, the market settles at a rate L 2 . The incumbent banks have the capacity to meet the largest supply of these loans. The challenger banks have a constrained function but due to a lower cost base can gain excess rent through higher rates of interest. The peer-to-peer bank as a service brokers must settle for the market rate and a constrained supply offering.

The money demand M by lenders on the y axis. Interest rates on the y axis are labeled as r I and r II . The challenger banks are represented by the line labeled Γ. They have a price and technology advantage and so can lend at higher interest rates. The brokers are represented by the line labeled Ω. They are price takers, accepting the interest rate determined by the market. The same is true for the incumbents, represented by the line labeled Φ but they have a greater market share due to their customer relationships. Note that payments strategy for social media platforms is not shown on this figure as it is not affected by interest rates

Figure  5 illustrates that having a niche strategy is not counterproductive. Liu et al ( 2020 ) found that banks performing niche activities exhibit higher profitability and have lower risk. The syndication market now means that a bank making a loan does not have to be the entity that services it. This means banks in the future can better shape their risk profile and manage their lending books accordingly.

An interesting question for central banks is what the future Deposit Supply function will look like. If all three forms: open banking, traditional banking and challenger banks develop together, will the bank of the future have the same Deposit Supply function? The Klein ( 1971 ) general formulation assumes that deposits are increasing functions of implicit and explicit yields. As such, the very nature of central bank directed monetary policy may have to be revisited, as alluded to in the earlier discussion on digital money.

The client retention strategy (incumbents)

The competitive pressures suggest that incumbent banks need to focus on customer retention. Reichheld and Kenny ( 1990 ) found that the best way to do this was to focus on the retention of branch deposit customers. Obviously, another way is to provide a unique digital experience that matches the challengers.

Incumbent banks have a competitive advantage based on the information they have about their customers. Allen ( 1990 ) argues that where risk aversion is observable, information markets are viable. In other words, both bank and customer benefit from this. The strategic issue for them, therefore, becomes the retention of these customers when faced with greater competition.

Open Banking changes the dynamics of the banking information advantage. Borgogno and Colangelo ( 2020 ) suggest that the access to account (XS2A) rule that it introduced will increase competition and reduce information asymmetry. XS2A requires banks to grant access to bank account data to authorized third payment service providers.

The incumbent banks have a high-cost base and legacy IT systems. This makes it harder for them to migrate to a digital world. There are, however, also benefits from financial technology for the incumbents. These include reduced cost and greater efficiency. Financial technology can also now support platforms that allow incumbent banks to sell NPL’s. These platforms do not require the ownership of assets, they act as consolidators. The use of technology to monitor the transactions make the processing cost efficient. The unique selling point of such platforms is their centralized point of contact which results in a reduction in information asymmetry.

Incumbent banks must adapt a number of areas they got to adapt in terms of their liquidity transformation. They have to adapt the way they handle data. They must get customers to trust them in a digital world and the way that they trust them in a bricks and mortar world. It is no coincidence. When you go into a bank branch that is a great big solid building great big facade and so forth that is done deliberately so that you trust that bank with your deposit.

The risk of having rising non-performing loans needs to be managed, so customer retention should be selective. One of the puzzles in banking is why customers are regularly denied credit, rather than simply being charged a higher price for it. This credit rationing is often alleviated by collateral, but finance theory suggests value is based on the discounted sum of future cash flows. As such, it is conceivable that the bank of the future will use financial technology to provide innovative credit allocation solutions. That said, the dual risks of moral hazard and information asymmetries from the adoption of such solutions must be addressed.

Customer retention is especially important as bank competition is intensifying, as is the digitalization of financial services. Customer retention requires innovation, and that innovation has been moving at a very fast rate. Until now, banks have traditionally been hesitant about technology. More recently, mergers and acquisitions have increased quite substantially, initiated by a need to address actual or perceived weaknesses in financial technology.

The client acquisition strategy (challengers)

As intermediaries, the challenger banks are the same as incumbent banks, but designed from the outset to be digital. This gives them a cost and efficiency advantage. Anagnostopoulos ( 2018 ) suggests that the difference between challenger and traditional banks is that the former address its customers problems more directly. The challenge for such banks is customer acquisition.

Open Banking is a major advantage to challenger banks as it facilitates the changing of accounts. There is widespread dissatisfaction with many incumbent banks. Open Banking makes it easier to change accounts and also easier to get a transaction history on the client.

Customer acquisition can be improved by building trust in a brand. Historically, a bank was physically built in a very robust manner, hence the heavy architecture and grand banking halls. This was done deliberately to engender a sense of confidence in the deposit taking institution. Pure internet banks are not able to do this. As such, they must employ different strategies to convey stability. To do this, some communicate their sustainability credentials, whilst others use generational values-based advertising. Customer acquisition in a banking context is traditionally done by offering more attractive rates of interest. This is illustrated in Fig.  5 by the intersect of traditional banks with the market rate of interest, depicted where the line Γ crosses L 2 . As a result of the relationship with banking yield, teaser rates and introductory rates are common. A customer acquisition strategy has risks, as consumers with good credit can game different challenger banks by frequently changing accounts.

Most customer acquisition, however, is done based on superior service offering. The functionality of challenger banking accounts is often superior to incumbents, largely because the latter are built on legacy databases that have inter-operability issues. Having an open platform of services is a popular customer acquisition technique. The unrestricted provision of third-party products is viewed more favorably than a restricted range of products.

The banking as a service strategy (new entrants)

Banking from a customer’s perspective is the provision of a service. Customers don’t care about the maturity transformation of banking balance sheets. Banking as a service can be performed without recourse to these balance sheets. Banking products are brokered, mostly by new entrants, to individuals as services that can be subscribed to or paid on a fee basis.

There are a number banking as a service solutions including pre-paid and credit cards, lending and leasing. The banking as a service brokers are effectively those that are aggregating services from others using open banking to enable banking as a service.

The rise of banking as a service needs to be understood as these compete directly with traditional banks. As explained, some of these do this through peer-to-peer lending over the internet, others by matching borrows and sellers, conducting mediation as a loan broker. Such entities do not transform assets and do not have banking licenses. They do not have a branch network and often don not have access to deposits. This means that they have no insurance protection and can be subject to interest rate controls.

The new genre of financial technology, banking as a service provider, conduct financial services transformation without access to central bank liquidity. In a distributed digital asset world, the assets are stored on a distributed ledger rather than a traditional banking ledger. Financial technology has automated credit evaluation, savings, investments, insurance, trading, banking payments and risk management. These banking as a service offering are only as secure as the technology on which they are built.

The social media payment strategy (disintermediators and disruptors)

An intermediation bank is a conceptual idea, one created solely on a social networking site. Social media has developed a market for online goods and services. Williams ( 2018 ) estimates that there are 2.46 billion social media users. These all make and receive payments of some kind. They demand security and functionality. Importantly, they have often more clients than most banks. As such, a strategy to monetize the payments infrastructure makes sense.

All social media platforms are rich repositories of data. Such platforms are used to buy and sell things and that requires payments. Some platforms are considering evolving their own digital payment, cutting out the banks as middlemen. These include Facebook’s Diem (formerly Libra), a digital currency, and similar developments at some of the biggest technology companies. The risk with social media payment platform is that there is systemic counter-party protection. Regulators need to address this. One way to do this would be to extend payment service insurance to such platforms.

Social media as a platform moves the payment relationship from a transaction to a customer experience. The ability to use consumer desires in combination with financial data has the potential to deliver a number of new revenue opportunities. These will compete directly with the banks of the future. This will have implications for (1) the money supply, (2) the market share of traditional banks and, (3) the services that payment providers offer.

Further research

Several recommendations for research derive from both the impact of disintermediation and the four proposed strategies that will shape banking in the future. The recommendations and suggestions are based on the mentioned papers and the conclusions drawn from them.

As discussed, the nature of intermediation is changing, and this has implications for the pricing of risk. The role of interest rates in banking will have to be further reviewed. In a decentralized world based on crypto currencies the central banks do not have the same control over the money supply, This suggest the quantity theory of money and the liquidity preference theory need to be revisited. As explained, the Internet reduces much of the friction costs of intermediation. Researchers should ask how this will impact maturity transformation. It is also fair to ask whether at some point in the future there will just be one big bank. This question has already been addressed in the literature but the Internet facilities the possibility. Diamond ( 1984 ) and Ramakrishnan and Thakor ( 1984 ) suggested the answer was due to diversification and its impact on reducing monitoring costs.

Attention should be given by academics to the changing nature of banking risk. How should regulators, for example, address the moral hazard posed by challenger banks with weak balance sheets? What about deposit insurance? Should it be priced to include unregulated entities? Also, what criteria do borrowers use to choose non-banking intermediaries? The changing risk environment also poses two interesting practical questions. What will an online bank run look like, and how can it be averted? How can you establish trust in digital services?

There are also research questions related to the nature of competition. What, for example, will be the nature of cross border competition in a decentralized world? Is the credit rationing that generates competition a static or dynamic phenomena online? What is the value of combining consumer utility with banking services?

Financial intermediaries, like banks, thrive in a world of deficits and surpluses supported by information asymmetries and disconnectedness. The connectivity of the internet changes this dynamic. In this respect, the view of Schumpeter ( 1911 ) on the role of financial intermediaries needs revisiting. Lenders and borrows can be connected peer to peer via the internet.

All the dynamics mentioned change the nature of moral hazard. This needs further investigation. There has been much scholarly research on the intrinsic riskiness of the mismatch between banking assets and liabilities. This mismatch not only results in potential insolvency for a single bank but potentially for the whole system. There has, for example, been much debate on the whether a bank can be too big to fail. As a result of the riskiness of the banking model, the banks of the future will be just a liable to fail as the banks of the past.

This paper presented a revision of the theory of banking in a digital world. In this respect, it built on the work of Klein ( 1971 ). It provided an overview of the changing nature of banking intermediation, a result of the Internet and new digital business models. It presented the traditional academic view of banking and how it is evolving. It showed how this is adapted to explain digital driven disintermediation.

It was shown that the banking industry is facing several documented challenges. Risk is being taken of balance sheet, securitized, and brokered. Financial technology is digitalizing service delivery. At the same time, the very nature of intermediation is being changed due to digital currency. It is argued that the bank of the future not only has to face these competitive issues, but that technology will enhance the delivery of banking services and reduce the cost of their delivery.

The paper further presented the importance of the Open Banking revolution and how that facilitates banking as a service. Open Banking is increasing client churn and driving banking as a service. That in turn is changing the way products are delivered.

Four strategies were proposed to navigate the evolving competitive landscape. These are for incumbents to address customer retention; for challengers to peruse a low-cost digital experience; for niche players to provide banking as a service; and for social media platforms to develop payment platforms. In all these scenarios, the banks of the future will have to have digital strategies for both payments and service delivery.

It was shown that both incumbents and challengers are dependent on capital availability and borrowers credit concerns. Nothing has changed in that respect. The risks remain credit and default risk. What is clear, however, is the bank has become intrinsically linked with technology. The Internet is changing the nature of mediation. It is allowing peer to peer matching of borrowers and savers. It is facilitating new payment protocols and digital currencies. Banks need to evolve and adapt to accommodate these. Most of these questions are empirical in nature. The aim of this paper, however, was to demonstrate that an understanding of the banking model is a prerequisite to understanding how to address these and how to develop hypotheses connected with them.

In conclusion, financial technology is changing the future of banking and the way banks intermediate. It is facilitating digital money and the online transmission of financial assets. It is making banks more customer enteric and more competitive. Scholarly investigation into banking has to adapt. That said, whatever the future, trust will remain at the core of banking. Similarly, deposits and lending will continue to attract regulatory oversight.

Availability of data and materials

Diagrams are my own and the code to reproduce them is available in the supplied Latex files.

Adrian T, Ashcraft AB (2016) Shadow banking: a review of the literature. In: Banking crises. Palgrave Macmillan, London, pp 282–315

Allen F (1990) The market for information and the origin of financial intermediation. J Financ Intermed 1(1):3–30

Article   Google Scholar  

Anagnostopoulos I (2018) Fintech and regtech: impact on regulators and banks. J Econ Bus 100:7–25

Berger AN, Herring RJ, Szegö GP (1995) The role of capital in financial institutions. J Bank Finance 19(3–4):393–430

Berger AN, Miller NH, Petersen MA, Rajan RG, Stein JC (2005) Does function follow organizational form? Evidence from the lending practices of large and small banks. J Financ Econ 76(2):237–269

Bernanke B, Gertler M, Gilchrist S (1996) The financial accelerator and the flight to quality. The review of economics and statistics, pp1–15

Bord V, Santos JC (2012) The rise of the originate-to-distribute model and the role of banks in financial intermediation. Federal Reserve Bank N Y Econ Policy Rev 18(2):21–34

Google Scholar  

Borgogno O, Colangelo G (2020) Data, innovation and competition in finance: the case of the access to account rule. Eur Bus Law Rev 31(4)

Braggion F, Manconi A, Zhu H (2018) Is Fintech a threat to financial stability? Evidence from peer-to-Peer lending in China, November 10

Brei M, Borio C, Gambacorta L (2020) Bank intermediation activity in a low-interest-rate environment. Econ Notes 49(2):12164

Buchak G, Matvos G, Piskorski T, Seru A (2018) Fintech, regulatory arbitrage, and the rise of shadow banks. J Financ Econ 130(3):453–483

Demirgüç-Kunt A, Detragiache E (2002) Does deposit insurance increase banking system stability? An empirical investigation. J Monet Econ 49(7):1373–1406

Diamond DW (1984) Financial intermediation and delegated monitoring. Rev Econ Stud 51(3):393–414

Diamond DW, Dybvig PH (1983) Bank runs, deposit insurance, and liquidity. J Polit Econ 91(3):401–419

Diamond DW, Rajan RG (2000) A theory of bank capital. J Finance 55(6):2431–2465

Edgeworth FY (1888) The mathematical theory of banking. J Roy Stat Soc 51(1):113–127

Fama EF (1980) Banking in the theory of finance. J Monet Econ 6(1):39–57

Gurley JG, Shaw ES (1956) Financial intermediaries and the saving-investment process. J Finance 11(2):257–276

Klein MA (1971) A theory of the banking firm. J Money Credit Bank 3(2):205–218

Kou G, Akdeniz ÖO, Dinçer H, Yüksel S (2021) Fintech investments in European banks: a hybrid IT2 fuzzy multidimensional decision-making approach. Financ Innov 7(1):1–28

Levine R (2001) International financial liberalization and economic growth. Rev Interna Tional Econ 9(4):688–702

Liu FH, Norden L, Spargoli F (2020) Does uniqueness in banking matter? J Bank Finance 120:105941

Pozsar Z, Singh M (2011) The nonbank-bank nexus and the shadow banking system. IMF working papers, pp 1–18

Ramakrishnan RT, Thakor AV (1984) Information reliability and a theory of financial intermediation. Rev Econ Stud 51(3):415–432

Reichheld FF, Kenny DW (1990) The hidden advantages of customer retention. J Retail Bank 12(4):19–24

Romānova I, Grima S, Spiteri J, Kudinska M (2018) The payment services directive 2 and competitiveness: the perspective of European Fintech companies. Eur Res Stud J 21(2):5–24

Modigliani F, Miller MH (1959) The cost of capital, corporation finance, and the theory of investment: reply. Am Econ Rev 49(4):655–669

Schumpeter J (1911) The theory of economic development. Harvard Econ Stud XLVI

Song F, Thakor AV (2010) Financial system architecture and the co-evolution of banks and capital markets. Econ J 120(547):1021–1055

Swankie GDB, Broby D (2019) Examining the impact of artificial intelligence on the evaluation of banking risk. Centre for Financial Regulation and Innovation, white paper

Thakor AV (2020) Fintech and banking: What do we know? J Financ Intermed 41:100833

Vishnu S, Agochiya V, Palkar R (2017) Data-centered dependencies and opportunities for robotics process automation in banking. J Financ Transf 45(1):68–76

Williams MD (2018) Social commerce and the mobile platform: payment and security perceptions of potential users. Comput Hum Behav 115:105557

Download references

Acknowledgements

There are no acknowldgements.

There was no funding associated with this paper.

Author information

Authors and affiliations.

Centre for Financial Regulation and Innovation, Strathclyde Business School, Glasgow, UK

Daniel Broby

You can also search for this author in PubMed   Google Scholar

Contributions

The author confirms the contribution is original and his own. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Daniel Broby .

Ethics declarations

Competing interests.

I declare I have no competing interests.

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ .

Reprints and permissions

About this article

Cite this article.

Broby, D. Financial technology and the future of banking. Financ Innov 7 , 47 (2021). https://doi.org/10.1186/s40854-021-00264-y

Download citation

Received : 21 January 2021

Accepted : 09 June 2021

Published : 18 June 2021

DOI : https://doi.org/10.1186/s40854-021-00264-y

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Cryptocurrencies
• P2P Lending
• Intermediation
• Digital Payments

JEL Classifications

An assessment of the financial soundness of the Kazakh banks

Asian Journal of Accounting Research

ISSN : 2459-9700

Article publication date: 24 September 2020

Issue publication date: 18 February 2021

• Supplementary Material

The contribution of the banking industry to the financial crisis of 2007/8 has raised public concerns about the financial soundness of banks around the world with many countries still suffering the backlogs of this crisis. The continuous emergence of such crises at both national and international levels increases governments', bank regulators' and financial market participants' need for reliable tools to assess the financial soundness of banks. In this context, this study investigates the financial soundness of the Kazakh banking sector, which is ranked by the World Bank as the first in the world in terms of the percentage of nonperforming loans (NPL) to total gross loans in 2012.

Design/methodology/approach

Using data about all Kazakh banks over the period January 01, 2008 to January 01, 2014, the study identifies a number of accounting indicators that influence the financial soundness of banks using principal component analysis (PCA). Then, it uses the outcomes of the PCA in a cluster analysis and groups the Kazakh banks into sound, risky and unsound banks at two points in time: January 01, 2008 and January 01, 2014. This methodology was further tested against a ranking system of banks and proved to be more reliable in detecting risky banks.

Fifteen financial ratios were initially selected as accounting indicators for the assessment of bank financial soundness. Using PCA, twelve indicators were isolated, which explain five principal components of capital adequacy, return on assets, profitability, asset quality, liquidity and leverage. Then using the “ k -means” method, the results suggest a structure of the Kazakh banking sector on January 01, 2008 that includes two groups of banks: sound and risky banks. On January 01, 2014, this structure of the banking system has changed to include three groups of banks: sound, risky and unsound banks. Thus, in 2014 a new group of banks has emerged, i.e. financially unsound banks.

Practical implications

The proposed cluster-based methodology has proven to be a reliable tool to detect the financial soundness of Kazakh banks, which makes us advocate its employability for bank monitoring and supervision purposes.

Originality/value

This study is the first to employ a cluster-based methodology to assess the financial soundness of a banking sector. This methodology can be used at a micro-level to determine the structure of a banking sector. Also, it can be used to monitor any changes in the structure of a banking sector and provide early warning signals about the financial health of banks.

• Financial soundness
• Cluster analysis
• Principal component analysis
• Emerging economies

Salina, A.P. , Zhang, X. and Hassan, O.A.G. (2021), "An assessment of the financial soundness of the Kazakh banks", Asian Journal of Accounting Research , Vol. 6 No. 1, pp. 23-37. https://doi.org/10.1108/AJAR-03-2019-0022

Emerald Publishing Limited

Copyright © 2020, Aigul P. Salina, Xin Zhang and Omaima A.G. Hassan

Published in Asian Journal of Accounting Research . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

The financial soundness of a bank is a condition in which the financial indicators characterizing its capital adequacy, asset quality, liquidity and effectiveness are within certain limits to ensure the ability of a bank to survive negative market conditions (e.g. Čihák, 2007 ; Pukhov, 2013 ). Failing to achieve these limits will transfer a bank from a sound to an unsound status. The determination of these limits is the most important stage of the process of the assessment of financial soundness in the banking sector. These financial indicators vary continuously to reflect the influence of the political, economic, social and financial conditions of each country. Thus, the demarcation of financial soundness limits would better be developed for the banking sector of each country. While the literature on the financial soundness of banks (see Appendix 1–supplementary material) at the macro-level is rich (e.g. Gaganis et al. ,2006 ; Ioannidis et al. , 2010 ; Fernández-Arias et al. , 2018 ), the number of micro-level studies has been recently growing (e.g. Rahman, 2017 ; Mittal and Mittal, 2017 ; Ouma and Kirori, 2019 ; Seyedi and Abdoli, 2019 ; Suresh et al. , 2019 ). Although cross-country studies could provide international benchmarks of the financial health of banks, it can mask crucial differences between local banks when there is a significant difference in the financial development of the different countries involved in the study. Thus, cross-country studies might fail to provide supervisory and regulatory bodies with relevant information to monitor the performance of local banks. In this context, the current study [1] examines the financial soundness of Kazakh banks using a combination of principal component analysis (PCA) and cluster analysis.

Kazakhstan provides an interesting case to study the financial soundness of banks as the level of nonperforming loans (NPL) has dramatically increased from 2.4% in 2007 to 36% in 2013, showing that the financial crisis of 2007/8 is still unfolding ( IMF, 2014 ). In fact, the World Bank has ranked it first in the world according to the percentage of NPL to total gross loans in 2012 ( Vorotilov, 2013 ). However, to date, there seems to be scarce international studies of the Kazakh banking sector.

This study contributes to the literature in several aspects. First, it contributes to the literature by proposing a simple, yet new, methodology to study the financial soundness of banks, i.e. a combination of PCA and cluster analysis. Second, it examines the financial soundness of banks in one of the most developed banking sectors in the Central Asian region and yet one of the leading countries worldwide in terms of the percentage of NPL to total gross loans. Third, it adds to the growing literature on the financial soundness of banks at micro-level by determining the structure of the banking system in a country and changes in this structure based solely on the performance of local banks. Using data on all Kazakh banks over the period from January 01, 2008 to January 01, 2014, the results suggest a structure of the Kazakh banking sector on January 01, 2008 that includes two groups of banks: sound and risky banks. This structure has changed on January 01, 2014 to include three groups of banks: sound, risky and unsound banks. Thus, in 2014, a new group of banks has emerged, i.e. financially unsound banks. On the one hand, these results highlight the dramatic deterioration of the financial health of Kazakh banks over the period January 01, 2008 to January 01, 2014. On the other hand, our results suggest that a combination of PCA and cluster analysis provides a simple and reliable tool to assess the financial soundness of a banking sector. This methodology can provide early warning signals to decision-makers and supervisory and regulatory bodies to detect vulnerable banks before they fail.

The rest of this paper is divided into seven sections: Section 2 provides an overview of the Kazakh banking sector. Section 3 briefly discusses related studies. Section 4 introduces a cluster-based methodology to assess the financial soundness of banks. Section 5 covers data analysis and discussion and section 6 checks the robustness of our results. Section 7 concludes the study.

2. The Kazakh banking sector

Kazakhstan is a post-Soviet emerging country which is transforming its economy from central planning to a free-market economy. The country is in the center of the Eurasian continent and is an active participant in international affairs. The country has transitioned from lower middle-income to upper middle-income status in the World Bank's classification of countries in less than two decades since its independence in 1991. Also, according to the World Bank's Doing Business report of 2019, Kazakhstan occupied the 28th place ahead of many developed countries such as Spain, France, Netherlands and Japan ( World Bank Group, 2019 ).

The Kazakh financial sector is one of the most developed in the Central Asian region and occupies a leading position in the post-Soviet era. However, since 1991 the Kazakh banking sector has witnessed considerable consolidation with about 200 banks in 1993 falling to only 38 banks in 2014. At the end of 2007, the share of the banking sector assets to GDP in Kazakhstan amounted to 91%, which is comparable to that of Central and Eastern European countries. However, the global financial crisis of 2007/8 has dramatically undermined the Kazakh banking sector. For example, while the ratio of the banking sector assets to GDP has fallen from 91% in 2007 to 44% in 2013, the level of NPL of Kazakh banks has significantly increased from 2.7% in 2007 to 36% in 2013, which shows the extreme vulnerability of Kazakh banks. Since the financial crisis of 2007/8, many countries such as Ireland, Iceland and Lithuania have managed to recover from the economic decline in recent years, whereas in Kazakhstan, the amount of NPL was growing but stabilized at 10% in 2018. Yet, the Kazakh banking sector has not recovered to pre-crisis levels despite the strong infusion of government capital into the equity of banks, debt restructuring and issuance of tougher standards. This, in turn, means that the Kazakh banking sector is still in urgent need for innovative approaches to detect the vulnerability of its banks to enable effective intervention in a timely manner.

3. Literature review

A review of the literature (see Appendix 1–supplementary material) shows that several prior studies on the financial soundness of banks are cross-country studies, which typically use macroeconomic variables and accounting-based indicators to assess the financial soundness of banks from different countries. For example, Gaganis et al. (2006) ; Ioannidis et al. (2010) and Fernández-Arias et al. (2018) develop quantitative models to classify banks from different countries into three groups based on their financial soundness to strong banks, adequate banks and banks with weaknesses and serious problems. On the other hand, micro-level studies focus on the financial soundness of banks within a particular country. This study is related to the latter strand of studies.

Micro-level studies can be classified into a number of streams. The first stream of studies focuses on measuring the financial soundness of banks using different models (e.g. Masud and Haq, 2016 ; Rahman, 2017 ; Dash, 2017 ; Mittal and Mittal, 2017 ; AlAli and Al-Yatama, 2019 ; Ouma and Kirori, 2019 ; Suresh et al. , 2019 ). The second stream of studies investigates changes in the financial soundness of banks overtime (e.g. Gasbarro et al. , 2002 ; Ginevičius and Podviezko, 2013 ). The third stream of studies tests the ability of different models in detecting the financial soundness of banks (e.g. Ashraf and Tariq, 2016 ). The fourth stream of studies investigates the determinants of the financial soundness of banks (e.g. Chang, 2016 ; Bae, 2019 ; Seyedi and Abdoli, 2019 ; Talibong and Simiyu, 2019 ). This study contributes to the first stream of studies by measuring the financial soundness of banks in a new setting, i.e. the Kazakh banks, and employing a novel methodology, i.e. a combination of PCA and cluster analysis. It also extends the micro-level literature on the financial soundness of banks by determining the structure of the banking system in a country and changes in that structure based solely on the performance of local banks.

This study also relates to, but differs from, the work of Gaganis et al. (2006) ; Ioannidis et al. (2010) and Fernández-Arias et al. (2018) . Similar to these three studies, the current study classifies banks into three groups: sound, risky and unsound banks. However, this study differs in three important aspects. First, these three studies are cross-country studies, but the current study is conducted at a micro-level for the Kazakh banks only. Second, the current study uses a different methodology to those applied by those three studies, i.e. a combination of PCA and cluster analysis to assess the financial soundness of banks. Third, the models developed by Gaganis et al. (2006) needed preliminary assessment of banks and for that purpose they used bank credit ratings provided by Fitch. In contrast, our proposed cluster-based methodology does not require preliminary status or rating, rather it defines such status. Previous studies noted that cluster analysis also works on small samples with non-normally distributed data ( Shuai et al. , 2013 ).

Finally, an assessment of financial soundness requires a set of variables that helps distinguish a group of banks with similar financial characteristics and identify the significant indicators to detect sound and unsound banks. Prior studies generally employ market-based measures and/or accounting-based measures. This study employs accounting-based measures to assess the financial soundness of Kazakh banks (e.g. Gasbarro et al., 2002 ; Masud and Haq, 2016 ; Rahman, 2017 ; Ouma and Kirori, 2019 ). This is because the majority of these banks are not listed on a stock exchange. In addition, accounting-based measures have several advantages over market-based indicators (e.g. Agarwal and Taffer, 2008 ; Kliestik et al. , 2020 ). For example, bank default is the peak point of many years of negative performance which could be captured by accounting-based measures. Also, loan covenants rely on accounting rather than market information. Furthermore, the double-entry system ensures minimal effect of window dressing and changes in accounting policies.

4. Data and research methodology

This study utilizes a combination of PCA and cluster analysis to assess the financial soundness of the Kazakh banking sector. First, we identify the financial indicators that influence the financial soundness of banks using PCA. Second, we classify banks into sound, risky and unsound groups using cluster analysis. We use cluster analysis to determine groups of banks where a calibrated set of selected indicators behave in similar ways.

4.1 Data collection and indicators selection

The research sample consists of the entire Kazakh banking sector, which includes 34 banks on the 1st of January 2008 and 37 banks on the 1st of January 2014 (see Appendix 2–supplementary material). The former date represents the pre-crisis period. Data is collected from the annual financial reports of banks and reports of the National Bank of Kazakhstan. The entire dataset of 256 bank-year observations is used to run the PCA, but cluster analysis is employed cross-sectionally at two points in time: January 01, 2008 and January 01, 2014. SPSS software version 21 was used to perform the analysis.

A set of 15 financial indicators are selected for the current study based on a review of relevant prior studies (see Appendix 3–supplementary material). These indicators reflect the main characteristics of capital adequacy, asset quality, management, earnings and liquidity as shown in Appendix 3. In addition, some of these ratios are borrowed from the IMF's financial soundness indicators ( R 1, R 2, R 3, R 6, R 7, R 9, R 10 and R 15) and prudential norms of Kazakh banks ( R 1, R 2, R 3, R 5, R 6, R 7, R 10, R 12, R 13 and R 15).

Capital adequacy ensures that a bank maintains a certain level of equity funding corresponding to the nature and the size of the risks associated with its activity and the ability of the management to identify, properly assess, mitigate and control these risks in a timely manner. Five ratios are used for this category, namely: capital adequacy ratio, regulatory capital to risk-weighted assets, regulatory Tier 1 capital to risk-weighted assets, equity to debt ratio and financial leverage ratio.

Asset quality reflects the amount of existing and potential credit default risks inherent in credit loan, investment portfolios, fixed assets, other assets and other off-balance sheet transactions. Two ratios are used for this category, namely: NPL to total gross loans and NPL net of provisions to capital.

Management reflects the capability of the board of directors and senior management in their respective roles to identify, measure, monitor and control the risks of bank activities and to ensure that a bank is safe, sound, efficient and in compliance with applicable laws and regulations. We use the ratio of gross wages and salaries to assets as a proxy for management quality.

Earnings reflect the ability of the management to create revenues and reduce costs such as extraordinary costs, loan losses and legal costs. Five profitability indicators are selected, namely: return on assets, return on equity, earnings before interest and taxation (EBIT) to total assets, net interest margin and interest rate spread.

Finally, banks are required to maintain sufficient liquidity to meet their cash obligations and the needs of their clients. Two ratios are selected, namely: working capital to total assets ratio and current ratio.

4.2 Cluster methodology

Many studies have used cluster methodology in Finance in general and in Banking, in particular (see Appendix 4–supplementary material). A cluster methodology is typically used in combination with a data mining approach such as factor analysis or PCA (e.g. Safdari et al. , 2005 ; Dao and Khanh, 2014 ; Cyree et al. , 2020 ). For e.g. Safdari et al. (2005) use PCA and cluster analysis to allocate 17 Armenian banks into similar groups, based on 13 accounting-based indicators. Cluster analysis searches for a “natural” split in the data and puts it in distinct groups that are remote from each other ( Henning, 2015 ). It is usually used when data are presented as matrices of proximity, or the distances between objects or data points are in a multidimensional space. It focuses on identifying some geometrically remote groups within which the objects are close. The selection of distance between the objects is the focal point of the research. It largely affects the final partitioning of objects to classes at a given partitioning algorithm. Almost all studies in Appendix 4 use cluster analysis to produce final results such as a recognition of vulnerable banks or an identification of potentially failing banks. Division of banks into groups is usually made to specify their position in peer groups and the calculation of peer group ratio average.

This study applies a novel methodology to identify the financial soundness of banks, i.e. a combination of PCA and cluster analysis, which, to the best of our knowledge, was not employed in this context before. This methodology can be used to monitor changes in the structure of a banking sector and detect early warning signals for the deterioration of the financial health of banks.

5. Data analysis and discussion

5.1 demarcation of financial soundness limits.

This section presents the descriptive statistics of the selected variables for the Kazakh banking sector in Figure 1 followed by a demarcation of the different ratios based on the median value of each variable over the period from January 01, 2008 to January 01, 2014. The results of this step provide the limits which divide the Kazakh banks into sound, risky and unsound banks. It is necessary to note that these limits serve as flags rather than standards in the process of identifying clusters.

Figure 1 shows that the first four capital adequacy ratios have the same downtrend during the analyzed period, while the curve of the debt to equity ratio ( R 5) clearly characterizes the deterioration in the banks' equity. It has increased steadily from 2.231 in 2008 to 5.281 in 2014.

In addition, Figure 1 also shows that the NPL to total gross loans ratio ( R 6) and the NPL net of provisions to capital ratio ( R 7) were steadily growing from 2008 to 2014. During this period, R 6 increased four times, and R 7 increased five times to confirm the deterioration in asset quality of Kazakh banks. This is hardly surprising since the World Bank ranked Kazakhstan the first in the world for the volume of NPL in 2012 ( Vorotilov, 2013 ). The authorities introduced various approaches to control NPL in 2011, but in 2014 the ratio of NPL has further increased to 36% compared to 2.7% in 2007. IMF (2014) noted the slow progress in resolving NPLs in Kazakhstan and marked the country as the world “leader” in NPL. Figure 1 also shows the fluctuation in the salaries to total assets ratio ( R 8) which decreased from 0.017 in 2008 to 0.013 in 2011.

In addition, return on assets ( R 9) and return on equity ( R 10) had the highest values in 2008. They decreased sharply in 2010 and 2011 and returned close to pre-crisis levels in 2014. The deterioration of EBIT to assets ( R 11) started from 2009, and in 2014 the indicator reached pre-crisis level. The lowest values of the net interest rate margin ( R 12) at 0.031 is observed in 2008 and the interest rate spread ( R 13) at 0.024 in 2011. The peak values for these two indicators were in 2010 at 0.060 and 0.045 respectively. The values of these indicators in 2011 roughly correspond to those of 2008, and since 2011 they have gradually increased reaching 0.057 and 0.045 in 2014 respectively.

Figure 1 also shows that the value of the current liquidity ratio ( R 15) was 1.293 in 2008 and then it reached a peak of 1.394 in 2012 and declined to 1.004 in 2014. The working capital to total assets ( R 14) was negative in 2008, 2010 and 2014.

Calculated limits are relative to their context. However, the approach is useful for grouping banks by the degree of financial soundness in situations where bank credit ratings are not reliable or available. For example, in Kazakhstan during the last fifteen years, only 12–26 banks out of 38 had ratings assigned by Standard and Poor's, Fitch or Moody's according to the Kazakh Stock Exchange.

Following the Global Financial Stability Report ( IMF, 2012 ), quartiles are used in this study to set the limits of financial soundness, and banks were classified into three groups: the worst quartile for unsound banks, the next-to-worst quartile for risky banks and the remaining two quartiles for sound banks. This study uses the median because the data is not normally distributed. So, in this case, the two quartiles above the median reveal sound banks, and the lower two reveal risky and unsound banks as can be seen from Table 1 . These limits will be used for Step 4 of the cluster-based methodology of the assessment of financial soundness to determine the structure of the banking sector.

5.2 Principal component analysis

PCA is used to analyze annual data for the period from January 01, 2008 to January 01, 2014 for all commercial Kazakh banks with 256 bank-year observations. The process includes the analysis of the pairwise correlations between the variables, the extraction of the principal components, the rotation of the principal components to simplify the structure and the interpretation of the principal components.

Based on the results obtained from the PCA, three variables ( R 8, R 10 and R 14) were excluded from the set of 15 variables. The remaining twelve indicators explain five principal components of capital adequacy, return on assets, profitability, asset quality, liquidity and leverage as can be seen in detail below.

5.2.1 Correlation matrix, KMO and Bartlett tests

To perform PCA, a Spearman's correlation matrix (see Appendix 5–supplementary material) was created to present the correlations between the variables. It shows that the correlation coefficients are within acceptable level. Also, Kaiser-Meyer-Olkin (KMO) and Bartlett's test ( Appendix 6–supplementary material) are performed to check if a PCA is appropriate. The value of 0.635 in KMO test indicates satisfactory adequacy of the sample. The results for the Bartlett's test of sphericity, which is the criterion for the degree of correlation of variables, show that that the data is acceptable to run the PCA.

5.2.2 Extraction of principal components

The extraction of principal components is the next stage of the PCA through the analysis of the vector of eigenvalues of the principal components listed (see Appendix 7–supplementary material). According to Kaiser's criterion, the first five principal components should be retained as their eigenvalues exceed the threshold level of 1 ( Nasledov, 2013 ). These five principal components explain 70.259% of the variance in the financial ratios.

5.2.3 Rotation of principal components to simplify structure

The next step after the selection of components is their rotation. This is required because the original structure of components, being mathematically correct, is generally difficult to interpret. The rotation is a structure that simplifies the interpretation of the components by minimizing the number of variables with high loading on each component. The rotation of components does not affect the mathematical rigor of the analysis, i.e. the mutual position of variables does not change on the turning of axes. The most popular option is the rotation by the varimax method ( Satina, 2008 ). This is an orthogonal rotation option because, at this rotation, the axes preserve their mutual position at a right angle (see Appendix 8–supplementary material).

Appendix 8 shows that the indicators R 8, R 10 and R 14 are not efficient in explaining the selected five components. Therefore, they must be excluded from the analysis. Rerunning the PCA on these twelve indicators show that the first five principal components are capable of explaining 83% of the variation in these variables.

5.2.4 Interpretation of principal components

The first component is closely related to four indicators, namely: the capital to assets ratio ( R 1), the regulatory capital to risk-weighted assets ratio ( R 2), the regulatory Tier 1 capital to risk-weighted assets ratio ( R 3) and the debt to equity ratio ( R 5). The four original attributes explain 97.3% of the variance of the first component.

The second component can be titled the return on assets as it is closely related to the ratio of the return on assets ( R 9) and the ratio of EBIT to total assets ( R 11). These indicators explain 83.8% of the variance of the second component.

The third component is explained by the net interest margin ( R 12) and the interest rate spread ( R 13). These two attributes explain 94.6% of the variance of the second component.

The fourth component is closely related to the ratio of NPL net of provisions to capital ( R 7) and the ratio of NPL net of provisions to total loans ( R 6). The two original attributes explain 96.4% of the variance of the fourth component.

The fifth component is closely related to the ratio of total equity to debt ( R 4) and the current liquidity ratio ( R 15). These two indicators explain 95.3% of the variance of the fifth component.

5.3 Cluster analysis

In the previous step, five components described by twelve indicators are produced using PCA. The next step is to conduct a cluster analysis using the five principal components which characterize the financial soundness of banks. Cluster analysis, in this context, classifies banks into mutually exclusive groups according to the extent of their financial soundness.

This study employs the “ k -means” method to identify the distance between groups (results are not tabulated). It is applied cross-sectionally at two points in time: January 01, 2008 and January 01, 2014. These dates are deliberately chosen to explore the evolution of clusters over time. The analysis is performed on all 34 Kazakh banks representing the entire banking system on the 1st of January 2008 and 37 banks on the 1st of January 2014. In total, five banks are identified as outliers and removed from the analysis, namely: Master Bank and TPBK in 2008 and Alliance Bank, BTA Bank, Home Credit Bank in 2014. Then the medians of indicators of the different clusters of banks are identified and presented in Table 2 .

The median values of the financial ratios calculated for each cluster correspond to the limits of financial soundness. Interpretation of cluster results is usually carried out using financial ratios even if cluster analysis is performed on the principal components or factors (e.g. Dao and Khanh, 2014 ; Şchiopu, 2010 ; Satina, 2008 ). Financial ratios reflect the distinctive features and characteristics of each cluster. They help summarize the common characteristics of the obtained clusters. Table 2 shows the median values of the financial soundness indicators of the different clusters and their corresponding colors based on a color code. Each cell has a definite color. While a red color indicates a value in the 1st quartile of “Unsound Banks”, a yellow color shows values of the 2nd quartile “Risky Banks” and a green color shows the rest as “Sound Banks”. The further distribution of clusters into groups is performed according to the principle of color predominance. This principle emphasizes the special status of the red color when putting banks into groups or clusters, where the presence of the red color in a cluster for more than 20% decreases it one level of financial soundness. The 20% threshold is defined following the Pareto principle which is also known as the 80/20 rule. This principle means that roughly 80% of the effects comes from 20% of the causes ( Newman, 2005 ). 20% of 12 indicators is 2.4, thus if more than 2 indicators are marked red, the financial soundness degree of the group decreases one level.

In 2008, clusters 1 and 2 are grouped into sound banks as there are no more than 2 red ratios in both clusters, while cluster 3 is downgraded to risky banks due to the existence of 3 ratios in red category. In 2014, cluster 1 is mainly in green with only 1 red ratio, so this cluster forms the group of sound banks, while cluster 2 is downgraded to risky group with two red ratios, and cluster 3 was further downgraded to unsound group due to the existence of more than two red ratios.

Table 3 shows the different clusters of financial soundness by the median values of the financial indicators at two points in time: January 01, 2008 and January 01, 2014. Two groups of banks are formed on January 01, 2008: sound and risky banks, while three groups of banks are formed on January 01, 2014: sound, risky and unsound banks. The first group of sound banks on the 1st of January 2008 is characterized by a high level of capital adequacy, the highest net interest rate margin and interest rate spread level among the three groups, a high level of asset quality and an adequate return on assets. The second group of risky banks shows a low level of capital adequacy, a low net interest rate margin and interest rate spread, an adequate asset quality and a medium profitability.

The first group of sound banks on the 1st of January 2014 is characterized by the highest level of capital adequacy, the highest net interest rate margin and interest rate spread level among the three groups, a high level of asset quality and an adequate level of return on assets. The second group of risky banks shows a low level of capital adequacy, high net interest rate margin and interest rate spread, low quality of assets and high EBIT to assets. The third group of unsound banks shows a low level of capital adequacy, a low net interest rate margin and interest rate spread and the lowest asset quality, return on assets and regulatory Tier 1 capital to risk-weighted assets ratio. It is worth noting that there has been a marked deterioration in the quality of assets in January 2014, where the ratios of NPLs to total gross loans and to capital have increased significantly for all the selected clusters, which led to the emergence of a new group of financially unsound banks.

Table 4 shows Kazakh banks at two points in time: 2008 and 2014 and the migrations of banks between the distinct levels of financial soundness. It demonstrates the deterioration in the financial health of the Kazakh banking sector in terms of the size of bank assets of each group to the total assets of the banking sector. Although the number of sound banks has dropped from 19 in 2008 to nine in 2014, this group preserves its asset weighting in the sector (1.27% in 2008 vs. 1.69% in 2014). Meanwhile, the proportion of the assets of risky banks has dropped from 98.73% in 2008 to 58.39% in 2014. This is due to the emergence of the group of unsound banks (six banks) in 2014, which covers 39.93% of the total assets of the Kazakh banking sector.

6. Robustness test

As a robustness check of our methodology, we compare the results of the cluster-based methodology with a ranking system proposed by Al-Osaimy and Bamakhramah (2004) and Othman (2013) . This system ranks banks based on their financial performance using a 10-point scale; where one indicates the worst, while ten presents the best. Ranks are assigned to each of the twelve financial ratios, then an overall average rank for each bank is calculated at two points in time: January 01, 2008 and January 01, 2014. For R 1, R 2, R 3, R 4, R 9, R 11, R 12, R 13 and R 15 ratios, the best value is the highest value and the worst is the smallest. Whereas, for R 5, R 6 and R 7 ratios, the best value is the smallest and the worst value is the largest.

A comparison of the results of a bank's rank (using the average ranking score) to its corresponding cluster (using the color code), see Appendix 9–supplementary material, shows that the results of the cluster-based methodology almost coincides with the results of bank ranking. Exceptions are: The Alliance Bank and Kazinvestbank. In this case, cluster analysis caught the deteriorating trend in the financial performance of Alliance Bank, which defaulted in April 2009. Also, the cluster-based methodology has more reliably captured the tendency of the deteriorating financial health of Kazkommertsbank. This bank received financial assistance from the government in 2016 and was sold to Halyk Bank for $1 in 2017.

In addition, we rerun the cluster analysis for 2013 (see Appendix 9–supplementary material). The results are generally consistent with those for 2014, apart from three banks migrating to a lower group in 2014. These include TPBK and Qazaq Banki moving from sound group to the risky banks and Kazkommertsbank migrating to unsound group.

7. Concluding remarks

This study contributes to the literature by investigating the financial soundness of the Kazakh banking sector using a combination of PCA and cluster analysis. The results suggest a structure of the Kazakh banking sector on January 01, 2008 that includes two groups of banks: sound and risky banks. On January 01, 2014, this structure of the banking system has changed to include three groups of banks: sound, risky and unsound banks. Thus, in 2014 a new group of banks has emerged, i.e. financially unsound banks. This methodology was further tested against a ranking system of banks and proved to be more reliable in detecting risky banks.

Our results highlight the dramatic deterioration of the financial health of the banking sector which has impacted its structure. On January 01, 2008 there were no unsound banks in Kazakhstan. The number of risky banks accounted for 44% of the total number of banks in the database and sound banks accounted for 56%. On January 01, 2014 there were 16% unsound banks, 60% risky banks and 24% sound banks. The depth of the financial fragility of Kazakh banks is further pronounced by the fact that two of the six financially unsound banks are among the top five largest banks in Kazakhstan. The total assets of the financially unsound banks accounts for 40% of the total assets of the entire Kazakh banking system.

The findings of this study are of interest to bank regulators and supervisory bodies who need suitable and reliable early warning tools to predict bank unsoundness in the young post-Soviet banking systems in general and in Kazakhstan in particular, where the banking sector is not sufficiently mature. Our proposed cluster-based methodology provides a simple, yet reliable, tool to predict the financial health of banks and help monitor changes in their status regularly. Although it is beyond the remit of the current study to recommend possible remedies to the central bank, the set of financial ratios used in the PCA can help identify areas that need attention from the management of banks and potentially from the supervisory bodies.

The proposed cluster-based methodology has proven to be a reliable tool to detect the financial soundness of Kazakh banks, which makes us advocate its employability for bank monitoring and supervision. However, the methodology is inevitably suggestive. According to Sclove (2001) and Marsh et al. (2003) there is no right or wrong cluster analysis solution but only different viewpoints of the same set of data. Future studies can further examine the reliability of this methodology using data from different countries where credit ratings can provide some benchmarks. In addition, this paper employs PCA using panel data analysis and cluster analysis using cross-sectional analysis at two points in time, i.e. 2008 and 2014, due to data availability. If more data is to be available in the future, scholars might replicate the analysis to see if these results continue to hold.

Demarcation of financial soundness limits (01.01.2008–01.01.2014)

Limits of financial soundness

Median values distributed by limits of financial soundness and color predominance

A comparison of the median values of financial soundness of the different clusters of banks

Clusters of banks on January 01, 2008 and January 01, 2014

This paper is based on the principal author's unpublished PhD thesis.

The supplementary material for this article can be found online.

Agarwal , V. and Taffler , R. ( 2008 ), “ Comparing the performance of market-based and accounting-based bankruptcy prediction models ”, Journal of Banking and Finance , Vol. 32 No. 8 , pp. 1541 - 1551 .

Al-Osaimy , M. and Bamakhramah , A. ( 2004 ), “ An early warning system for Islamic banks performance ”, Journal of King Abdulaziz University–Islamic Economics , Vol. 17 No. 1 , pp. 3 - 14 .

AlAli , M. and Al-Yatama , S. ( 2019 ), “ Analyzing the financial soundness of Kuwaiti banks using CAMELS framework ”, Financial Risk and Management Reviews , Vol. 5 No. 1 , pp. 55 - 69 .

Ashraf , A. and Tariq , Y. ( 2016 ), “ Evaluating the financial soundness of banks: an application of bankometer on Pakistani listed banks ”, The IUP Journal of Financial Risk Management , Vol. 13 No. 3 , pp. 47 - 63 .

Bae , S.H. ( 2019 ), “ A study on determinants of financial soundness of savings banks ”, The Journal of the Convergence on Culture Technology , Vol. 5 No. 4 , pp. 277 - 282 .

Chang , Y. ( 2016 ), “ Financial soundness indicator, financial cycle, credit cycle and business cycle - Evidence from Taiwan ”, International Journal of Economics and Finance , Vol. 8 No. 4 , pp. 166 - 182 .

Čihák , M. ( 2007 ), “ Systemic loss: a measure of financial stability ”, Czech Journal of Economics and Finance , Vol. 57 Nos 1-2 , pp. 5 - 26 .

Cyree , K.B. , Davidson , T.R. and Stowe , J.D. ( 2020 ), “ Forming appropriate peer groups for bank research: a cluster analysis of bank financial statements ”, Journal of Economics and Finance , Vol. 44 No. 2 , pp. 211 - 237 .

Dao , B. and Khanh , P. ( 2014 ), “ Cluster analysis of Vietnamese banks ”, Working paper , available at SSRN 2543094 , doi: 10.2139/ssrn.2543094 .

Dash , M. ( 2017 ), “ Comparison of financial soundness of public and private sector banks in India using the S-score model ”, Skyline Business Journal , Vol. 12 No. 1 , pp. 64 - 75 .

Fernández-Arias , D. , López-Martín , M. , Montero-Romero , T. , Martínez-Estudillo , F. and Fernández-Navarro , F. ( 2018 ), “ Financial soundness prediction using a multi-classification model: evidence from current financial crisis in OECD banks ”, Computational Economics , Vol. 52 No. 1 , pp. 275 - 297 .

Gaganis , C. , Pasiouras , F. and Zopounidis , C. ( 2006 ), “ A multicriteria decision framework for measuring banks' soundness around the world ”, Journal of Multi-Criteria Decision Analysis , Vol. 14 Nos 1-3 , pp. 103 - 111 .

Gasbarro , D. , Sadguna , I. and Zumwalt , J. ( 2002 ), “ The changing relationship between CAMEL ratings and bank soundness during the Indonesian banking crisis ”, Review of Quantitative Finance and Accounting , Vol. 19 No. 3 , pp. 247 - 260 .

Ginevičius , R. and Podviezko , A. ( 2013 ), “ The evaluation of financial stability and soundness of Lithuanian banks ”, Economic Research-Ekonomska Istraživanja , Vol. 26 No. 2 , pp. 191 - 208 .

Henning , C. ( 2015 ), “ Clustering strategy and method selection ”, Working paper, March 2015, University College London, arXiv:1503.02059 .

IMF ( 2012 ), “ Global financial stability report ”, April 2012 , The Quest for Lasting Stability , available at: https://www.imf.org/en/Publications/GFSR/Issues/2016/12/31/Global-Financial-Stability-Report-April-2012-The-Quest-for-Lasting-Stability-25343 ( accessed 12 May 2018 ).

IMF ( 2014 ), “ The republic of Kazakhstan financial system stability assessment ”, IMF Country Report No. 14/258 , available at: https://www.imf.org/external/pubs/ft/scr/2014/cr14258.pdf ( accessed 12 May 2018 ).

Ioannidis , C. , Pasiouras , F. and Zopounidis , C. ( 2010 ), “ Assessing bank soundness with classification techniques ”, Omega , Vol. 38 No. 5 , pp. 345 - 357 .

Kliestik , T. , Valaskova , K. , Lazaroiu , G. , Kovacova , M. and Vrbka , J. ( 2020 ), “ Remaining financially healthy and competitive: the role of financial predictors ”, Journal of Competitiveness , Vol. 12 No. 1 , pp. 74 - 92 .

Marsh , I. , Stevens , I. and Hawskeby , C. ( 2003 ), “ Large complex financial institutions: common influence on asset price behaviour ”, Bank of England Financial Stability Review , Vol. 15 , pp. 124 - 134 .

Masud , A. and Haq , M. ( 2016 ), “ Financial soundness measurement and trend analysis of commercial banks in Bangladesh: an observation of selected banks ”, European Journal of Business and Social Science , Vol. 4 No. 10 , pp. 159 - 184 .

Mittal , S. and Mittal , M. ( 2017 ), “ Assessment of financial soundness of private and public sector banks in India ”, Research Review International Journal of Multidisciplinary , Vol. 2 No. 9 , pp. 72 - 75 .

Nasledov , A. ( 2013 ), IBM SPSS Statistics 20 and AMOS: Professional Statistical Data Analysis , Piter , Saint-Petersburg .

Newman , M. ( 2005 ), “ Power laws, Pareto distributions and Zipf's law ”, Contemporary Physics , Vol. 46 No. 5 , pp. 323 - 351 .

Othman , J. ( 2013 ), Analysing Financial Distress in Malaysian Islamic Banks: Exploring Integrative Predictive Methods , Ph.D. thesis , Durham University , Durham .

Ouma , M.O. and Kirori , G.N. ( 2019 ), “ Evaluating the financial soundness of small and medium-sized commercial banks in Kenya: an application of the bankometer model ”, International Journal of Economics and Finance , Vol. 11 No. 6 , pp. 1 - 93 .

Pukhov , V. ( 2013 ), Formation of Financial Stability Management System of Commercial Banks , Ph.D. thesis , State Management University , Moscow .

Rahman , Z. ( 2017 ), “ Financial soundness evaluation of selected commercial banks in Bangladesh: an application of bankometer model ”, Research Journal of Finance and Accounting , Vol. 8 No. 2 , pp. 63 - 70 .

Safdari , C. , Scannell , N. and Ohanian , R. ( 2005 ), “ A statistical approach to peer-groupings; the case of banks in Armenia ”, Journal of American Academy of Business , Vol. 6 No. 2 , pp. 24 - 31 .

Satina , T. ( 2008 ), Statistical Research of the Main Activities of Commercial Banks of the Russian Federation , Ph.D. thesis , Moscow State University of Economics, Statistics and Informatics , Moscow .

Şchiopu , D. ( 2010 ), “ Applying two step cluster analysis for identifying bank customers' profile ”, Economic Sciences Series , Vol. 62 No. 3 , pp. 66 - 75 .

Sclove , S. ( 2001 ), “ Statistics for information systems and data mining: notes on cluster analysis ”, available at: http://www.uic.edu/classes/idsc/ids472/clustering.htm ( accessed 12 May 2017 ).

Seyedi , S.A. and Abdoli , M.R. ( 2019 ), “ Modeling and rating financial soundness indicators of commercial banks using confirmatory factor analysis and TOPSIS method ”, Iranian Journal of Finance , Vol. 3 No. 3 , pp. 107 - 136 .

Shuai , L. , Lai , H. , Xu , C. and Zhou , Z. ( 2013 ), “ The discrimination method and empirical research of individual credit risk based on bilateral clustering ”, Modern Economy , Vol. 4 No. 7 , pp. 461 - 465 , doi: 10.4236/me.2013.47049 .

Suresh , N. , Ligori , A. , Khan , S. and Khan , S.A. ( 2019 ), “ Comparative financial performance and financial soundness of banks in Bhutan: application of Dupont and bankometer models ”, International Journal of Psychosocial Rehabilitation , Vol. 23 No. 1 , pp. 441 - 448 .

Talibong , J.K. and Simiyu , E.M. ( 2019 ), “ Financial soundness indicators and financial performance of deposit taking micro finance banks in Kenya ”, African Journal of Emerging Issues , Vol. 1 No. 11 , pp. 67 - 84 .

Vorotilov , A. ( 2013 ), “ Kazakhstan - world champion in non-performing loans ”, available at: http://forbes.kz/finances/markets/kazahstan_chempion_mira_po_nevozvratnyim_kreditam ( accessed 7 January 2015 ).

World Bank Group ( 2019 ), Doing Business 2019 , World Bank Group , available at: https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf ( accessed 8 November 2019 ).

Further reading

Salina , A. ( 2017 ), Financial Soundness of Kazakhstan Banks: Analysis and Prediction , Ph.D. thesis , Robert Gordon University , Aberdeen .

Acknowledgements

Erratum: It has come to the attention of the publisher that the article Salina, A.P., Zhang, X. and Hassan, O.A.G. (2021), “An assessment of the financial soundness of the Kazakh banks”, Asian Journal of Accounting Research , Vol. 6 No. 1, pp. 23-37. https://doi.org/10.1108/AJAR-03-2019-0022 , was originally published with the appendix presented as supplementary material via external links; this has now been amended and the supplementary material is hosted alongside the article to ensure that it remains accessible in perpetuity: https://www.emerald.com/insight/content/doi/10.1108/AJAR-03-2019-0022/full/html

Corresponding author

Supplementary materials.

AJAR-03-2019-0022_suppl1.pdf (3.8 MB)

Related articles

All feedback is valuable.

Please share your general feedback

Report an issue or find answers to frequently asked questions

Contact Customer Support

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Newsletters
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Biden Economy
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds Rates
• Top Mutual Funds
• Options: Highest Open Interest
• Options: Highest Implied Volatility
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Stock Comparison
• Advanced Chart
• Currency Converter
• Credit Cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Credit Card Offers
• Best Free Checking
• Student Loans
• Personal Loans
• Car insurance
• Mortgage Refinancing
• Mortgage Calculator
• Morning Brief
• Market Domination
• Market Domination Overtime
• Asking for a Trend
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Financial Freestyle
• Capitol Gains
• Living Not So Fabulously
• Decoding Retirement
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Cronos Group Inc. (CRON): A Bull Case Theory

In this article:.

We came across a  bullish thesis  on Cronos Group Inc. (CRON) on Raging Bull Investments’ Substack by Jake LaMotta. In this article we will summarize the bulls’ thesis on CRON. Cronos Group Inc. (CRON) share was trading at $2.26 as of Sept 17th.

A cannabis-growing operation in a large, industrial greenhouse.

Cronos Group represents a compelling investment opportunity, given its recent financial performance and substantial growth prospects. The company’s Q2 results highlight its strong position and strategic advantages, despite a 20% increase in share price since March, indicating robust underlying progress.

In the latest earnings release, Cronos reported a notable 46% year-over-year increase in net revenue, reaching $27.8 million. This growth reflects a solid performance in a challenging market environment. The company's gross margin improved by 700 basis points to 23%, signaling enhanced operational efficiency. Although EBITDA remains negative at -$11 million, it improved by 31% compared to the previous year. Positive cash flow from operations amounted to $1.7 million, a significant turnaround from the -$11.8 million reported a year ago. The company's substantial cash reserve of approximately $800 million provides a significant margin of safety and future investment potential.

Valuation-wise, Cronos Group is currently trading at a relatively low multiple compared to its peers. With an enterprise value to next twelve months (EV/NTM) sales ratio of less than 1x, the stock is undervalued relative to other players in the industry, which typically trade around 2x. This discrepancy presents a favorable entry point for investors. The company’s strong growth trajectory, driven by increased sales volumes and successful brand positioning with Spinach, supports the argument for a higher valuation.

The potential for margin expansion is considerable, particularly if cannabis prices in Canada stabilize and the excise tax is reformed. Removing the excise tax could significantly enhance Cronos’ gross margins, potentially raising them to around 42% from the current 23%. This improvement would be a major boost to the company's financial performance and valuation.

Looking forward, Cronos Group is well-positioned to capitalize on both domestic and international growth opportunities. With the Canadian cannabis market expected to grow and the potential for expansion into new markets, Cronos stands to benefit significantly. The combination of strong revenue growth, improved financial metrics, and strategic investments in operational efficiency makes Cronos an attractive investment with substantial upside potential. The current valuation, coupled with the company’s growth prospects, suggests a promising risk/reward scenario for investors.

Cronos Group Inc. is also not on our list of the  31 Most Popular Stocks Among Hedge Funds . As per our database, 12 hedge fund portfolios held CRON at the end of the second quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of CRON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRON but that trades at less than 5 times its earnings, check out our report about the  cheapest AI stock .

READ NEXT:  Analyst Sees a New $25 Billion “Opportunity” for NVIDIA  and  10 Best of Breed Stocks to Buy For The Third Quarter of 2024 According to Bank of America .

Disclosure: None. This article was originally published at Insider Monkey.

Recommended Stories

TeraWulf: Steady Growth, Cost Control, And Diversification

• TeraWulf is a low-cost Bitcoin miner with a 70% YTD stock increase, outperforming peers despite the Bitcoin halving event's cost escalation.
• The company has a strong financial position with zero debt, a $104.1 million cash buffer, and plans for significant hash rate expansion.
• TeraWulf's low-cost energy infrastructure supports diversification into high-performance computing (HPC) and AI, promising robust growth and reduced earnings volatility.
• With a forward EV/EBITDA of 9.7 and a bullish outlook, TeraWulf offers a 30%-50% upside potential over the next 24 months.

luza studios

Investment Overview

It’s been a reasonably good year for Bitcoin ( BTC-USD ) with the digital asset trading above $60,000 with returns of 36% for year-to-date. The same is not the case with most Bitcoin miners. With the halving event translating difficulty in Bitcoin mining, cost

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About wulf stock.

More on WULF

Related stocks.

Trending Analysis

Trending news.

• Open access
• Published: 19 September 2024

Comparative analysis of factors and barriers intervening in research participation among romanian and international medical graduates from one romanian medical faculty across three generations

• Andreea Iulia Pop 1 &
• Lucia Maria Lotrean 2  

BMC Medical Education volume  24 , Article number:  1028 ( 2024 ) Cite this article

Metrics details

This study focuses on the factors that encouraged engagement in research activities, as well as the barriers that restricted their involvement, until the final year of study at Iuliu Hatieganu University of Medicine and Pharmacy Cluj-Napoca, Faculty of Medicine. The main objectives of this study are to investigate potential disparities in research culture and student engagement in various research opportunities between Romanian and international medical graduates, as well as to conduct an examination of the observed patterns across various graduating years (2021–2023).

Materials and methods

A cross-sectional investigation was conducted among graduate students of the Faculty of Medicine at the Iuliu Hațieganu University of Medicine and Pharmacy in Cluj-Napoca, Romania. From 2021 to 2023, all graduate students from the Romanian and international programs of the faculty were asked to participate in the study by filling out an anonymous online questionnaire. The final sample included 572 participants, of whom 392 were students from the Romanian section and 180 were students from international programs.

Motivation and personal interest drive research engagement, according to over half of graduates. For over one-third of graduates, institutional elements like financial support and education also play a major role, as does the desire to enhance their curriculum vitae. More than 25% of graduates value community influence, 70% of graduates attended medical congresses, 12–15% presented papers at medical conferences, 23% wrote medical articles, 10–15% published at least one scientific paper in medical journals, and 20% participated in medical school research projects. Comparative analysis showed that Romanian students start research earlier, attend more medical conferences, present posters, collect data for studies, and are more interested in publishing graduation thesis data in scientific journals. To encourage international students to participate in research, the study found that colleagues’ examples were more important, and both time and funds were key barriers. The research also shows that 2022 and 2023 graduates will organize more scientific conferences. According to the study, 2022 graduates began their research earlier than others.

Conclusions

To increase student engagement in research activities, medical schools should prioritize the promotion of positive factors, minimize common barriers, offer customized support and resources, encourage collaborative research activities, and facilitate cross-cultural learning.

Peer Review reports

Introduction

Medical schools play a crucial role in providing professionals with the necessary knowledge and skills to excel in their careers and contribute to the healthcare system [ 1 ]. The conventional medical education structure has created skilled and scientifically grounded healthcare professionals, but it is essential to adapt learning methods to align with new technological advances, diagnostic strategies, and medical treatments [ 2 , 3 , 4 ]. As healthcare environments change, medical education must advance to meet the evolving needs of patients and healthcare professionals. To stay informed about medical innovations, medical students must develop practical skills, synthesize information, and analyze vast amounts of information. They should also maximize interprofessional learning possibilities and balance the risks and benefits of various treatment options to provide the best possible patient care [ 5 , 6 , 7 ]. Currently, the requirement for enhanced competence in evidence-based medicine and concerns regarding the declining representation of physician-scientists have emphasized the necessity of promoting and encouraging research in medical education [ 8 , 9 , 10 , 11 ].

Research involves data collection and analysis, gathering key information, and then analyzing and interpreting that information according to academic and professional procedures. This suggests that research helps students develop critical thinking and problem-solving skills, which are crucial for healthcare practitioners, and it is essential to actively involve and motivate the upcoming generation of physician-scientists from earlier stages [ 12 , 13 ]. Throughout the years, medical students have produced important innovations that have had a significant influence on current medicine through the adoption of evidence-based practice. Students made notable progress in several areas, such as the discovery of heparin, Raynaud’s disease, brachial plexus palsy, the atrioventricular node, ether anesthesia, penicillin, and insulin. Those historical examples play a crucial role in sustaining students’ motivation and developing their enthusiasm for excellence [ 14 ].

Scholarly research training programs help undergraduate medical students critically assess new information, communicate, and share research findings, making valuable contributions to the advancement of medical knowledge [ 15 ]. According to Yin et al., medical schools must prioritize research by offering enough opportunity, motivation, and assistance for student engagement [ 16 ]. Previous studies have investigated the training and participation of medical students in curricular and extracurricular research activities. Since the 1960s, some medical schools, such as Duke University and Stanford University, have offered research programs that accompany traditional education, widening students’ scientific knowledge and recruiting them to academic medicine [ 17 ]. Many medical schools nowadays offer students either mandatory or optional research alternatives that enhance their research skills. The Bologna process contributed to a restructuring of the medical undergraduate degree in Europe. It was launched in 1999 by several European countries with the goal of improving the acceptance and quality of higher education qualifications in the region. According to the Bologna process, European universities must evaluate scientific training and include research in their undergraduate medical degrees. As a result, medical students must complete a research project in order to graduate [ 8 , 18 ]. To promote supervised research, Asian universities have implemented graduation requirements, which generally require undergraduate participation for a semester or academic year, either individually or with the support of the government [ 19 ]. The Liaison Committee on Medical Education (LCME) conducted a survey among 147 medical schools in the United States between 2017 and 2018, which revealed that 65 of them mandated medical students to conduct research [ 20 ]. On the other hand, extracurricular research programs (ERPs), such as summer research programs, Honours programs, or any other student research organizations worldwide, such as Harvard College Undergraduate Research Association, Cambridge University Students’ Clinical Research Society, and John B. Graham Medical Student Research Society, have been set up by many medical schools to encourage students to do research, develop an academic mindset, and become future doctors who are also scientists [ 21 , 22 ].

Although the level to which medical graduates participate in research activities is influenced by a variety of factors and obstacles. Prior research has identified that to encourage and sustain the engagement of medical students in research, it is imperative to identify the fundamental factors that motivate their research efforts throughout the early years of their medical education [ 23 ]. In their study, Ommering et al. investigate the motivation of medical students to conduct research, and their findings suggest that students may have both intrinsic and extrinsic motivations. For extrinsic motivations, medical students may engage in research to enhance their training and career opportunities, such as securing a competitive residency. Furthermore, there is proof that students can be really interested in research and contribute out of satisfaction, as regards intrinsic motivations. Self-efficacy, curiosity, and challenge, prior training in scientific research, supportive teachers, and an environment that encourages research are the valuable motivational variables [ 23 , 24 ]. While there is a tendency to refine involvement in research during medical school, the literature highlights both institutional and non-institutional barriers to successful participation. Previous studies have found several common barriers to research involvement, such as time constraints, insufficient funds, insufficient support from mentors, and a lack of knowledge and experience. Thus, Andrea and Sarah Cuschieri found that medical graduates often receive inadequate assistance and direction from faculty members and mentors, insufficient resources for carrying out research, minimal opportunities to participate in scientific initiatives, and a lack of motivation [ 25 ]. Griffin and Hindocha also highlighted barriers perceived by medical students to publishing, such as a lack of opportunities to conduct research, insufficient support from seniors, limited education on writing manuscripts, limited time, insufficient knowledge of publication standards, and insufficient research infrastructure [ 26 ]. Stone et al. also demonstrated the existence of institutional and non-institutional barriers to conducting research during undergraduate medical school. These barriers include time constraints, a lack of mentors, inadequate support, limited access to resources, curriculum design, a lack of skills and self-efficacy, awareness and motivation, funding, internet access, and gender and cultural issues, all of which hinder medical students’ engagement in research activities [ 9 ]. Furthermore, in prior studies, the unequal attainment gap among ethnic groups begged serious concerns about performance differences, therefore affecting medical education and the medical profession. The ethnicity of medical students often influences learning and performance due to limited educational resources, unadapted curricula, and medical school populations [ 27 , 28 , 29 ].

According to our knowledge, little is known about the practices, factors, and barriers affecting research engagement among medical graduates, especially when comparing national and international students. There are no other studies on medical undergraduate research in Romania, except for our previous study, which examined the first-time research perspectives and behaviors of students in their third and fifth years of study. The previous findings indicated that Romanian medical students value research possibilities, which promotes institutional attempts to support their curricular and extracurricular research [ 30 ]. This present study can be considered a continuation of the first investigation, as it aims to examine the factors that influence the engagement of undergraduate medical students in research, as well as the research practices performed by graduates until they complete their final year at the Faculty of Medicine of Iuliu Hatieganu University of Medicine and Pharmacy in Cluj-Napoca. This is one of the most prestigious medical universities in Romania. The university’s Faculty of Medicine admits three cohorts per year, and there are programs offered in various languages: Romanian, English, and French. The student selection process varies between programs. The Romanian program selects students for admission through a written exam. International applicants to the English and French language programs are admitted based on their academic performance and personal accomplishments. Although they share clinical areas and classrooms, local and foreign students do not show up to attend the same seminars. Every cohort has different clinical rotations and class schedules, so their academic activities never cross. Each year, the university’s Faculty of Medicine admits a specific number of students into the medical program. For example, in the last ten years, the admitted number of students per year varied between 500 and 600 students per year, until recent 4 years, when the university admitted approximately 800 students per year into its medical programs. The proportion of students has an equal distribution of 50% Romanian students and 50% international students [ 31 ]. The Cluj-Napoca Faculty of Medicine offers six-year undergraduate medical education that includes, in the first year’s curricula, a module on medical biostatistics and, in the second year’s curricula, a module on scientific research methodology. Until the final year, the students must prepare and present a demanding scientific report known as a graduation research thesis in accordance with the Bologna process. Teachers also offer guidance and support throughout extracurricular research.

This study aims to investigate the factors that encourage student engagement in research, as well as the barriers that limit their decision to participate in research. Furthermore, in terms of practices, behaviors for both mandatory and optional research activities have been followed. Furthermore, socio-demographic aspects were examined. This research would be valuable in creating an overview of the research motivation, barriers, and best practices for fostering research involvement in the current situation, while there is a persistent pedlary for medical students to become physician-scientists in the context of the physician-scientist deficit worldwide. This research seeks to provide insights into the research culture, resources available, and levels of student involvement in a medical school, along with potential differences between Romanian and international students in three graduating cohorts (2021–2023). Furthermore, examining the trends across graduation years may shed light on how medical education and research opportunities are evolving. If we understand students’ perspectives, we may use evidence-based ways to increase medical students’ interest and ameliorate barriers in research to prepare the future generation of physician-scientists.

The current research aimed to use a survey with 5-point Likert scales and multiple-choice questions to evaluate factors influencing research involvement and scientific activities among graduates from 2021 to 2023, along with exploring their socio-demographic characteristics. This study provided a focused examination of the following research objectives:

Identification of socio-demographic indices: gender, section, and year of faculty graduation.

Evaluation of factors that encourage student participation in research activities: personal influence, community influence, educational influences, and financial influences.

Evaluation of the barriers that limit medical students research participation: personal influence, educational influences, and financial influence.

Identifying research behaviors: the year of debut, complexity of research activity, contributions, participation in scientific congresses, participation in the process of writing a scientific article, aspects of publishing graduation thesis data in a scientific journal, and interest in participating in research activities after graduation.

Comparing factors for involvement in research and scientific activities between Romanian and international students and analyzing them throughout time from 2021 to 2023.

Material and methods

Study sample and data collection.

This research is a component of a larger study centered around evaluating the engagement of medical students in research and voluntary activities. The project received ethical approval from the Ethics Commission of Iuliu Hatieganu University of Medicine and Pharmacy under Approval Number DEP27/03.11.2021.

A cross-sectional investigation was conducted among graduate students of the Faculty of Medicine at the Iuliu Hațieganu University of Medicine and Pharmacy in Cluj-Napoca, Romania. From 2021 to 2023, all graduate students from the Romanian and international sections of the faculty were asked to participate in the study by filling out an anonymous online questionnaire (a total of 1878 students were invited). We chose to investigate the Romanian and international cohorts separately in order to learn more about how their educational and cultural backgrounds influence their research attitudes and practices. We separately looked at these groups to identify their unique requirements and obstacles in order to create focused strategies to increase student research participation. The questionnaire was distributed using the Microsoft Teams platform, which is commonly used by all affiliated members of the University of Medicine and Pharmacy, Iuliu Hatieganu. The students received an invitation explaining that participation was voluntary, and they agreed to participate by filling out the questionnaire. Those who did not wish to participate did not complete the questionnaire.

Instrument for data collection

For this research project, we specifically designed an online survey to evaluate socio-demographic factors (age, gender), academic aspects (section, year of graduation), opinions about factors that encourage or limit involvement in research, and the research practices of undergraduate medical students. To identify common themes and factors reported in previous studies, we conducted a thorough literature review, which helped us derive the motivating factors and barriers related to student involvement in research. This influenced the development of our survey questions. Factors that encourage medical students involvement in research are the following: personal influence (motivation and personal interest, curriculum vitae improvement motivation), community influences (example of other colleagues), educational influences (teacher presentation of research participation options, teacher mentoring and support, medical research student courses or training), and financial influence (the existence of research grants for undergraduate students, monetary remuneration); The response choices were presented on a five-point scale that varied from “not at all” to “to a very high extent.” The barriers to medical students’ involvement in research are as follows: personal influence (lack of time caused by required medical training courses or internships during medical studies, lack of interest or lack of motivation for research), educational influences (difficulty finding a research coordinator, team, or research project), and financial influence (lack of or insufficient financial compensation for work done). The response choices were presented on a five-point Likert scale that varied from “not at all” to “to a very high extent.” Additionally, the questionnaire examined the research practices of medical students as follows: the year of study when students started their research activity, if they had been engaged in research projects only for their graduation thesis, or if they performed more complex research activities till graduation. The questionnaire asked about the contributions of students to research activities (data review of scientific literature, development of research ideas and hypotheses, research methodology and protocol, data gathering tools, statistical analysis, laboratory experiments, abstract and presentation development for scientific conferences, and writing medical articles). Moreover, the questionnaire asked about students’ involvement in medical congresses, if they had presentations such as oral or poster presentations (the response choices were presented on a four-point scale that varied from “not at all” to “more than three times”), if they had been involved in writing scientific articles (the response choices were presented on a four-point scale that varied from “not at all” to “more than three times”), or if they were publishing various types of scientific articles (publishing editorials or letters to the editor, reviews, original articles, clinical case presentations), and if they were first authors or co-authors. The students were asked if they had participated in research projects during medical school (the response choices were presented on a four-point scale that varied from “not at all” to “more than three times”). Additionally, the questionnaire asked about the interest in publishing graduation thesis data in a scientific publication. The questionnaire also evaluated interest in enhancing knowledge of proper scientific article writing, interest in better comprehension of abstract writing, and interest in understanding the publishing rules of a scientific paper. The questionnaire aimed to gather data on motivation and interest to participate in research activities after completing medical studies (with response options being ‘Yes,’ ‘No,’ or ‘I do not know’). Students received the questionnaire in Romanian, English, and French, and the average time to complete it was 15–20 minutes. We assessed the reliability of the questionnaire using internal consistency and found Cronbach’s alpha for each index. We found that the Research Involvement Index, which included 6 items, had a Cronbach’s alpha of 0.74; the Index of Factors Encouraging Student Research, which included 9 items, had a Cronbach’s alpha of 0.71; and the Research Involvement Barriers Index, which included 5 items, had a Cronbach’s alpha of 0.70. Each of the three indexes indicates good internal consistency. Our previous study, which examined the perspectives and behaviors of medical students in their third and fifth years of study for the first time, also tested the questionnaire. We made minor revisions to align with the actual research questions, thereby enhancing the questionnaire’s comprehensibility and reliability.

Data analyses

The prevalence and mean values were calculated for the investigated topics separately for the Romanian section and international section, as well as for graduates from the 2021, 2022, and 2023 generations. Chi2 tests and t-tests were used to analyze differences among students in the Romanian and International sections, as well as among graduates from the 2021, 2022, and 2023 generations. Three types of indexes were developed to provide greater clarity into the factors influencing involvement in research and research practices.

An index of encouraging student research factors was developed by summing the scores (to a very high extent, coded + 2, to a high extent, coded + 1, I do not know, coded 0, to a low extent, coded − 1, not at all, coded − 2) of the following criteria: motivation and personal interest, curriculum vitae improvement motivation, examples of other colleagues, teacher presentations of research participation options, teacher mentoring and support, medical research student courses or training, the existence of research grants for undergraduate students, and monetary remuneration. The minimum value was − 16, and the maximum was + 16.

An index of research involvement barriers was developed by summing the scores (to a very high extent, coded + 2, to a high extent, coded + 1, I do not know, coded 0, to a low extent, coded − 1, not at all, coded − 2) of the following criteria: lack of time caused by required medical training courses or internships during medical studies, lack of interest or lack of motivation for research, difficulty finding a research coordinator, team, or research project, and lack of or insufficient financial compensation for work done. The minimum value was − 8, and the maximum was + 8.

An index for the involvement of medical students in research (research involvement index) was developed by summing the scores of involvements in the following research activities: participation at medical congresses, presenting papers at medical congresses (oral or poster presentations), participation in writing a scientific article, article publications, and participation in research projects. The available responses for each issue are 0 (no) and 1 (yes); therefore, the minimum value obtained for each participant was 0 and the maximum value obtained was 5.

We used forward selection in two stepwise multivariate linear regression analyses to find out what factors influenced the variations in the Research Involvement Barriers Index and the Index of factors that encourage student research. The dependent variables were the index of factors that encourage student research and the research involvement barriers index. For both, the independent variables were age, gender (coded 1–males, 2–females), and sections (Romanian section, international section). The analyses were performed separately for each index. Another stepwise multivariate linear regression analysis was conducted using forward selection to determine factors that contributed to the variation in the research involvement index. The dependent variables were the research involvement index, and the independent variables were age, gender (coded 1–males, 2–females), sections (Romanian section, international section), the index of factors that encourage student research, and the Research Involvement Barriers Index.

The data were analyzed using SPSS 22 statistical software, and significant findings are presented at a significance level of 0.05.

Sociodemographic characteristics

The final sample included 572 participants, which represents a response rate of around 30%. Of the participants, 215 (37.6%) were male and 357 (62.4%) were female, aged between 22 and 54 years (mean 25.25, SD 2.1). Ranking them according to the study section, 392 (68.5%) were students from the Romanian section and 180 (31.5%) were students from the international sections. Ranking them according to the years of graduation, 232 (40.5%) students graduated in 2021, 172 (30%) in 2022, and 168 (29.5%) in 2023.

Opinions on research and comparative analysis of graduate students from Romanian and international sections of different generations

Both Romanian and international students emphasize motivation, personal interest, and teacher mentoring and support as significant factors in research participation. Romanian students, in proportion to 67%, value motivation and personal interest, and 59% value teacher mentoring, while international students, in proportion to 58%, value motivation and personal interest, and 47% value teacher mentoring. Over one-third of Romanian students highlight CV improvement, research opportunities presented by teachers, and research training. Also, among international students, 40% report research training as influential, with around one-third citing CV improvement, examples of colleagues, and student research grants. The major barriers identified by Romanian students are as follows: 53% mention a lack of time and difficulty finding a research coordinator; 41% mention a lack of interest or motivation; and 20% mention insufficient financial compensation. Regarding the international students, 63% report difficulty finding a research coordinator, and 56% cite a lack of time, with a considerable proportion also noting financial constraints. The index of factors encouraging student research shows that Romanian students have a calculated score that varies between − 14 and + 16, with a mean of 8.38, whereas international students have a score ranging from − 4 to + 16, with a mean of 7.98. No statistically significant difference was seen between the two groups. The research involvement barriers index scores for Romanian students vary between − 6 and + 8, with a mean of 3.43, and for international students, they vary from − 4 to + 8, with a mean of 4.11. No statistically significant difference was seen between the two groups. Table  1 reports detailed information about the factors and barriers that could affect Romanian and international students’ participation in research activities.

Analyzing the answers of all students in the three graduating cohorts, several key factors emerged as influencing their involvement in research activities. The students consistently identified motivation, personal interest, teacher mentoring, and support as significant factors. Between 60% and 67% of all graduates attributed high importance to these factors. Teaching staff’s presentations of research opportunities, CV improvement, and the availability of student research funds enhanced the interest of about 40% of all cohorts of graduates in research. Colleagues’ examples and financial rewards significantly influenced the engagement of about 30% of 2023 graduates and one-third of 2021 and 2022 graduates. Throughout the years, barriers to research involvement remained consistent. Around half of students in all graduating cohorts identified a lack of time and difficulty finding a research coordinator, team, or project as major obstacles. Around 40% of graduates reported a lack of interest or motivation. Between 25% and 33% of graduates identified insufficient financial compensation as a significant barrier. However, the 2023 graduates placed more importance on the influence of examples from colleagues compared to the 2022 graduates. Furthermore, 2022 graduates emphasized the lack of funds as a barrier in comparison to 2021 graduates. The index of factors encouraging student research showed mean scores of 8.45 for 2021 graduates, 7.69 for 2022 graduates, and 8.57 for 2023 graduates, with no statistically significant differences between the groups.

The index of factors encouraging student research shows that 2021 graduates scored between − 7 and + 16, with a mean of 8.45. In comparison, 2022 graduates scored between − 14 and + 16, with a mean score of 7.69, while 2023 graduates scored between − 8 and + 16, with a mean score of 8.57. There was no statistically significant difference observed between the two groups. The Research Involvement Barriers Index scores for 2021 graduates range from − 6 to + 8, with a mean of 3.44; for 2022 graduates, the scores range from − 4 to + 8, with a mean of 3.78; and for 2023 graduates, the scores vary from − 3 to + 8, with a mean of 3.77. There was no statistically significant difference observed between the groups. Table  2 provides detailed information about the factors and barriers that could affect the students’ participation in research activities in the three graduating cohorts (2021–2023).

Practicies on research and comparative analysis of graduate students from Romanian and international sections of different generations

Around one-third of students from both sections began participating in research during their sixth year, with Romanian students starting earlier on average (t-test, p  < 0.01). About 70% of Romanian and over 80% of international students engaged in research linked to their graduation thesis, with a significant difference between groups (chi-square, p  < 0.05). Less than 20% performed more complex research. Romanian students more frequently participated in data collection compared to international students who preferred performing literature reviews (chi-square, p  < 0.01). Around 80% of Romanian and less than half of international students attended medical conferences (chi-square, p  < 0.01). In proportion, 36% of Romanian and 21% of international students were on the scientific meetings organization staff (chi-square, p  < 0.01). Approximately 12% of Romanian and 5% of international students presented posters at scientific conferences (t-test, p  < 0.05). One-quarter of Romanian and 20% of international students contributed to the writing of medical research papers, with Romanian students having a higher co-authoring rate (chi-square, p  < 0.05). A proportion of 29% of Romanian and 20% of international students were interested in publishing their research data (chi-square, p  < 0.05). Overall, 7% of international students and 6% of Romanian students have published their graduation thesis output. The research engagement index was higher for Romanian students (mean 1.53) compared to international students (mean 1.06) (t-test, p  < 0.01). Over 80% of students showed interest in improving their skills in scientific writing, with higher interest among Romanian students (chi-square, p  < 0.05), and around 60% were interested in post-graduation research activities. Table  3 provides detailed information about research practices and comparative analyses of Romanian and international graduates.

Approximately one-third of each cohort began research in their sixth year, with 2022 graduates starting earlier on average (t-test, p  < 0.05). Over 70% of graduates from all years participated in thesis-linked research, while less than 20% conducted more complex research. Around 31–38% of participants reviewed scientific literature, 25% developed research ideas and methodologies, and 28–37% performed data collection. More than one-third of 2021 graduates, as well as 40% of 2022 and 2023 graduates, performed statistical analysis. Most students attended medical congresses, with 12–15% presenting papers, 9% presenting posters, and 6.5–9.9% giving oral presentations. A quarter of 2021 graduates, 42% of 2022 graduates, and 30% of 2023 graduates were on the scientific meetings organization staff, with higher engagement in 2022 and 2023 (chi-square, p  < 0.05). Around 23% of graduates contributed to writing medical research papers. About 29% of 2021 graduates and 25% of 2022 and 2023 graduates were interested in publishing their research data, while 6% of the three graduating cohorts had accepted or published articles. Approximately 20% of graduates engaged in faculty research projects, with a mean of 1.3 regarding the research index scores. Interest in improving scientific writing skills was high. Over 79% of graduates showed interest in improving their skills in scientific writing, with higher interest among 2022 and 2023 graduates (chi-square, p  < 0.05), and around 60% were interested in post-graduation research activities. Table  4 provides detailed information about practices in research and comparative analysis in the three graduating cohorts (2021–2023).

Regarding aspects associated with involvement in research, the multivariate linear regression findings show that the index of positive factors was higher among female students (standardized beta 0.146, CI = 4.715–7.322, P  < 0.01). Additionally, the negative factor index was shown to be higher among female students (standardized beta 0.144, CI = 0.363–1.308, P  < 0.01) and in international sections (standardized beta 0.131, CI = 0.296–1.282, P  < 0.01). Also, the research index was higher among the Romanian section (standardized beta − 0.174, CI = -0.688–-0.251, P  < 0.01).

This study investigates the research factors and practices of students in their final year at Cluj-Napoca’s Iuliu Hatieganu University of Medicine and Pharmacy Faculty of Medicine.

The concept of originality is related to the evaluation of the aspects perceived by medical students regarding the factors that encouraged engagement in research activities, as well as the barriers that restricted their involvement, until the final year of study. It also refers to determining potential disparities in research culture and in student involvement in different types of research opportunities among Romanian and international medical graduates. Furthermore, performing an analysis of the patterns observed across different graduating years (2021–2023) may provide valuable insights into the dynamic nature of medical education and the potential for research advancements.

Factors encouraging and maintaining interest in medical student research

Ommering et al. found that to encourage and maintain the interest of medical students in research, it is necessary to understand the motivations that drive them to engage in research as well as the specific factors that contribute to their motivation for research [ 23 ]. In this light, our study’s results indicate that personal interest, which represents intrinsic motivation, is the most important factor that significantly encourages student engagement in research. Additionally, the authors of the previous cited study found that students may undertake research for future educational and professional options, such as a desired residency position [ 23 ]. However, our study reveals that the improvement of the curriculum vitae, a representation of extrinsic motivation, appears to have a less significant impact on students’ involvement in research. It’s possible that the lower significance achieved by improving their CV is due to the fact that, in the Romanian medical system, training possibilities and jobs post-graduation are based primarily on exams rather than CVs [ 30 ]. The absence of observed discrepancies between both sections is intriguing because this aspect was anticipated to have a greater impact on students from the international sections as the curriculum vitae continues to have significant importance in the residency applicant assessment process for most graduates globally [ 32 ]. Thus, according to our findings, medical schools should prioritize their students’ personal interests and curiosity in research. This might entail both research classes and practical research activities as part of the teaching program, which should promote curiosity and foster intrinsic motivations early in medical education.

Institutional factors influencing research involvement

In this study, educational influences, such as the presentation of research participation options by teachers, their mentoring and support, and the organization of medical research student courses or training, have a significant impact on students’ involvement in research. According to Abu-Zaid, teachers who encourage research have a substantial impact on students’ views towards this area and their aspirations for future careers [ 33 ]. However, the significance of teacher mentorship and assistance is perceived to a greater extent by students in the Romanian section. The observed disparity between the sections is unexpected, as both Romanian and international students interested in medical research receive the same guidance and assistance for research participation. This is due to the fact that the “Iuliu Hatieganu” University of Medicine and Pharmacy actively promotes research activities across all fields and departments. One potential reason for this disparity could be cultural differences in the perception of mentorship. Given their different origins, international graduates could have different expectations and mentorship experiences. Although the university strives to provide comparable mentoring, the increased perceived value of teacher interaction among Romanian students indicates underlying reasons needing further investigation.

Furthermore, when considering financial factors, it is observed that students view the presence of research grants as a significant and favorable factor that encourages their engagement in research. Similar findings were also expressed by Australian students, who said that one of the main elements motivating research activities throughout medical school is financing [ 34 ]. Iuliu Hatieganu University of Medicine and Pharmacy ranks first among Romanian medical universities in the number and value of competitive research grants due to the extraordinary effort of teaching staff collectives, the institutional frame improved by creating the Department for Research and Development, and the more generous financing programs. Most research funding comes from grants and contracts [ 35 ]. However, the results of the present investigation showed that Romanian students expressed a stronger belief that the existence of funds has a higher impact on their engagement in research. Romanian students probably view financing as more significant because of their connections with local funding sources, prior expertise in financially sponsored research projects, cultural and socioeconomic issues, and favorable experiences with financed research. To enhance research engagement, it should provide customized support and resources, encourage collaborative research efforts, and promote cross-cultural learning and idea exchange.

Community influences

The benefits of collegiality and collaboration, knowledge acquisition, and career-mindedness for medical students were highlighted by Yin et al. in their investigation that examined the effects of graduates’ research experiences on their medical undergraduate colleagues. [ 16 ]. The current study found that the example of other colleagues influences their involvement in research, and the findings vary between the groups under investigation. International students place a higher importance on this factor, probably because they could be more collaborative with their colleagues in the context of their smaller number of colleagues than in the Romanian section. Thus, they could have more chances to work together on research projects and influence each other by personal example. Additionally, the cohort of 2023 graduates showed stronger confidence that the influence of their colleagues’ examples has a greater effect on their research engagement compared to the 2022 graduate cohort. This might be the result of more peer cooperation, more group research projects, or a developing university culture of common academic interests.

Barriers to research participation

The outcomes of our study correspond closely to the available literature; many of the findings regarding barriers are comparable to the results of previous investigations. Key barriers to undergraduate research participation include a lack of knowledge and skills, limited faculty support and funding, as well as structural barriers like time constraints, limited research facilities, and a lack of motivation [ 36 ]. Our findings highlighted that the time constraints caused by time-consuming internships or mandatory medical training courses are the most significant obstacle impeding students’ engagement in research activities. According to our findings, “lack of time” has a greater impact on international students, who may have less time to do research because they must adapt to new educational systems and learn a new language. It is already known that medical curricula are often too rigorous to include sufficient time for extracurricular study [ 37 ]. Siemens et al. also identified a lack of time as a major obstacle to conducting research, citing a demanding school schedule [ 38 ]. Most students perceive the challenge of finding a research coordinator or team and a research project as a significant obstacle. Similar studies on the importance of research mentorship for medical students mirrored our findings [ 38 , 39 ]. In addition, their lack of interest in research and lack of or insufficient financial remuneration are perceived as minor barriers by respondents. Hegde et al. and Kumar et al. also demonstrated similar results, describing barriers such as lack of interest, funding, and poor availability of research mentors that can hinder undergraduate participation in research [ 39 , 40 ]. Developing flexible curricula, enhancing mentoring programs, developing research skills, offering time management support, and improving funding possibilities will help students participate in research without compromising their clinical training or academic responsibilities.

Integration of research into medical curricula

The Boyer Commission’s report on undergraduate medical education emphasizes the importance of integrating scientific research training into medical curricula. This trend has evolved, and currently, research-based learning is widespread. Medical schools engage students in undergraduate research in various ways. Research-driven courses, extracurricular activities, and graduate research projects are examples [ 24 , 41 ]. Medical students at Iuliu Hatieganu University of Medicine and Pharmacy Faculty of Medicine participate in both compulsory research and extracurricular activities. Table  5 summarizes the main activities. These activities should improve abilities in critical literature evaluation, study objectives, methodology, data collection, analysis, interpretation, and oral presentation [ 30 ]. Incorporating scientific research in medical education at an early stage improves both cognitive and practical abilities, develops intellectual skills, encourages evidence-based learning, promotes the production of publications, stimulates future research, and facilitates career progression [ 33 ]. Although there are different opinions about compulsory research in the faculty. According to Abu-Ziad et al., this could lead to bad research practices that harm universities and research organizations.

Student involvement in research activities

The findings of the investigation indicated that most students commenced their research activities at a later stage, predominantly during their fifth and sixth years of study. This research commencement coincides with the most common timeframe for starting graduate research. Furthermore, the proportion of students who participated in more complex research activities varied from 12 to 18%. However, their research roles have been vast. These include a data review of scientific literature, the formulation of research ideas and hypotheses, the development of research methodology and protocol, the creation of data collection tools, data gathering in various environments, including hospitals, communities, and organizations, and data statistical analysis. The percentage of students engaged in activities such as conducting laboratory experiments, writing medical articles, and developing abstracts and presentations for scientific conferences was considerably lower. Romanian students were more involved in data collection, while international students focused more on literature reviews. The language barrier could be the key to these results, as international students could perform review-type research more easily than gathering data from local patients, while Romanian students were expected to collect information more easily due to their access to patient data and their improved interactions with local patients.

Data dissemination

Romanian students and international students have significantly different participation rates in medical conferences. Events like conferences, workshops, seminars, and symposiums offer unique learning opportunities. These events encourage medical staff to remain current on research, discuss best practices, and learn new skills, developing safety and quality [ 42 ]. Romanian students have a higher percentage of presentations, with around 15% presenting their work, while international students have around 10%. Posters were more common among Romanian students, while oral presentations were more common among international students. Our findings align with a previous study conducted in the United Kingdom, which showed that 17% of students had submitted an article for scientific meetings, which refers to their participation in poster and podium presentations [ 26 ].

Between 20% and 25% of students from the studied groups have contributed to writing medical publications at least once, while between 10% and 15% of participants published papers as authors. The Romanian section had a higher percentage of students who co-authored papers. Students from both sections contributed reviews, original articles, and clinical case presentations. Similarly, a previous investigation conducted among students from Dutch universities showed that 12% of the participants had published one or more papers either prior to or during their year of graduation [ 43 ]. In their study, Barbosa et al. showed that investigations conducted at the medical-degree level are an unexplored resource of scientific knowledge. Active participation in scientific research holds significant value in terms of enhancing one’s personal knowledge. However, it is equally crucial to share this knowledge to advance the medical field and, subsequently, improve healthcare outcomes [ 8 ]. More than one-quarter of students expressed interest in publishing their graduation research data, with Romanian students showing more interest. This may be due to the fact that most international graduates do not continue their training in Romania after graduation, making it difficult to work with the research team to disseminate graduation study results. Currently, there are international students with at least one paper at the peer review stage. Also, under 10% of students have articles approved or published already. Therefore, the publication rate for research graduation theses was lower than that of other European studies, with rates of 10.4% in Portugal, 17% in France, and 23.8% in Finland [ 8 ]. To contrast, our study exposed data collected around graduation, while these studies revealed data collected years after graduation [ 8 ].

Importance of research writing skills and career motivation

Previous investigations showed that medical students need expertise in writing papers and abstracts. Teaching these abilities would be valuable, and medical schools should provide information and knowledge about writing scientific articles and abstracts to help students develop a solid foundation for their postgraduate medical careers [ 26 ]. Our findings demonstrated that almost all the students want to improve their scientific manuscript writing (writing of the scientific article, abstract) and publishing guidelines. The 2022 and 2023 graduates were more interested in learning how to write a scientific article and abstract writing, while the Romanian students were more interested in improving their scientific manuscript writing and publishing guidelines.

According to Waaijer et al., positive experiences can drive student motivation in a research career. Thus, the present investigation showed that over half of participants express a desire to continue conducting research after graduation, and they are probably likely to have had favorable experiences related to research throughout their medical school studies [ 43 ]. Moreover, a systematic review focused on career choice demonstrated that obtaining a medical degree or participating in a fellowship program is linked to a professional path in the field of research medicine. Also, the completion of research projects and subsequent dissemination of findings within the context of medical school and residency have a strong connection to a career path in the field of research medicine [ 44 ].

Strengths and limitations of the study

There are several limitations associated with this study. The first limitation could be the fact that the study provides valuable insights into research participation among Romanian and international medical graduates; the findings could be comparable only with those of other medical schools under the Bologna process that adopt similar curricular and extracurricular research activities. Furthermore, the research sample includes exclusively medical graduates from one Romanian medical institution, so the findings could restrict the representation of many points of view and experiences in the larger community of medical graduates. Moreover, participants who are more interested in research may self-select, which could influence the findings. Another possible limitation of our study is the low response rate observed. We also observed declining participation rates over successive years. Survey fatigue, demographic changes, methodologies, perceived relevance, privacy issues, benefits, and societal trends all could help to explain declining survey participation rates. Also, uncontrollable factors such as socioeconomic status, prior research experience, or personal motivations can complicate the relationship between identified variables and barriers to research participation, thereby complicating the ability to establish causal relationships. Moreover, the cross-sectional design of the study may restrict its ability to capture changes in research participation. It is very difficult to observe patterns and experiences over time or across different stages of medical education. However, a strong point of this study can be considered a continuation of the first investigation, as it aims to examine the factors that influence the engagement of undergraduate medical students in research in their third and fifth years of study, who graduated in 2021 and were part of the study’s sample.

The findings of this study offer important perspectives into the involvement of medical undergraduates in research during medical school, as well as the factors and barriers that interfere with research participation. The results demonstrate that intrinsic motivation is the primary factor driving student engagement in research, while institutional factors, such as educational, financial, and community influences, also have a substantial impact on research involvement. Lack of interest and time restrictions are the two main barriers. Furthermore, observed were financial issues, difficulties finding a research coordinator or team, and securing a research project. Also, this study revealed the existence of research culture differences between Romanian and international students and underlined the dynamic character of medical education. This work could be used as a foundation for future research to explore methods for removing these obstacles and fostering factors that may impact research engagement. These results could be adapted by teaching staff about practical medical education to offer effective strategies for encouraging undergraduate research field involvement and promoting cross-cultural learning. Also, universities and policymakers could utilize these findings to concentrate their initiatives on reducing the main barriers to achieving high-quality research. Overall, this study not only advances academic understanding but also offers tangible benefits to all parties involved, fostering a collaborative approach to encourage research participation among medical undergraduates.

Availability of data and materials

The datasets utilized and analyzed in the present study are accesible upon resonable request from the corresponding author.

Sarwar M, Farhan Sarwar M. Understanding the significance of medical education for health care of community around the globe. Int J Innov Res Educ Sci. 1(2):2349–5219.

Buja LM. Medical education today: all that glitters is not gold. BMC Med Educ. 2019;19(1):110. https://doi.org/10.1186/s12909-019-1535-9 .

Article   Google Scholar  

Milella F, Minelli EA, Strozzi F, Croce D. Change and Innovation in Healthcare: findings from literature. Clinicoecon Outcomes Res. 2021;13:395–408. https://doi.org/10.2147/CEOR.S301169 .

Shelton PG, Corral I, Kyle B. Advancements in undergraduate medical education: meeting the challenges of an evolving world of education, healthcare, and technology. Psychiatr Q. 2017;88(2):225–34.

Kampmeijer R, Pavlova M, Tambor M, Golinowska S, Groot W. The use of e-health and m-health tools in health promotion and primary prevention among older adults: a systematic literature review. BMC Health Serv Res. 2016;16(Suppl 5):290. https://doi.org/10.1186/s12913-016-1522-3 .

Edgman-Levitan S, Schoenbaum SC. Patient-centered care: achieving higher quality by designing care through the patient’s eyes. Isr J Health Policy Res. 2021;10(1):21.

Sklar DP. Looking ahead: futures planning for Medical Education. Acad Med. 2019;94(10):1401–3. https://doi.org/10.1097/ACM.0000000000002861 .

Barbosa JM, Magalhães SI, Ferreira MA. Call to publish in an Undergraduate Medical Course: dissemination of the final-year Research Project. Teach Learn Med. 2016 Oct-Dec;28(4):432–8. https://doi.org/10.1080/10401334.2016.1182916 .

Stone C, Dogbey GY, Klenzak S, Van Fossen K, Tan B, Brannan GD. Contemporary global perspectives of medical students on research during undergraduate medical education: a systematic literature review. Med Educ Online. 2018;23(1):1537430. https://doi.org/10.1080/10872981.2018.1537430 .

Carberry C, McCombe G, Tobin H, Stokes D, Last J, Bury G, Cullen W. Curriculum initiatives to enhance research skills acquisition by medical students: a scoping review. BMC Med Educ. 2021;21(1):312. https://doi.org/10.1186/s12909-021-02754-0 .

Bovijn J, Kajee N, Esterhuizen TM, Van Schalkwyk SC. Research involvement among undergraduate health sciences students: a cross-sectional study. BMC Med Educ. 2017;17(1):186. https://doi.org/10.1186/s12909-017-1025-x .

Adebisi YA. Undergraduate students’ involvement in research: values, benefits, barriers and recommendations. Ann Med Surg (Lond). 2022;81:104384. https://doi.org/10.1016/j.amsu.2022.104384 .

Funston G, Piper RJ, Connell C, Foden P, Young AM, O’Neill P. Medical student perceptions of research and research-orientated careers: an international questionnaire study. Med Teach. 2016;38(10):1041–8. https://doi.org/10.3109/0142159X.2016.1150981 .

Dawadi P, Khadka S. Research and Medical students: some notable contributions made in history. JNMA J Nepal Med Assoc. 2021;59(233):94–7. https://doi.org/10.31729/jnma.5078 .

Chang Y, Ramnanan CJ. A review of literature on medical students and scholarly research: experiences, attitudes, and outcomes. Acad Med. 2015;90(8):1162–73. https://doi.org/10.1097/ACM.0000000000000702 .

Yin C, Moszcyznski AJ, Blom JN, et al. Advancing the understanding of research during medical education through collaborative learning: the collaboration of practitioners and researchers Seminar Series. BMC Med Educ. 2019;19:457. https://doi.org/10.1186/s12909-019-1890-6 .

Laskowitz DT, Drucker RP, Parsonnet J, Cross PC, Gesundheit N. Engaging students in dedicated research and scholarship during medical school: the long-term experiences at Duke and Stanford. Acad Med. 2010;85(3):419–28. https://doi.org/10.1097/ACM.0b013e3181ccc77a .

Marquand J, Scott P. The Bologna Declaration of 19 June 1999, democrats, authoritarians and the Bologna process. Leeds: Emerald Publishing Limited; 2018. pp. 183–6. https://doi.org/10.1108/978-1-78743-439-420181009 .

Book   Google Scholar  

Huang Q, Yue Z, Lin J, Zhang Y, Yuan S, Zhuang Q, et al. The effect and influence of undergraduate research on medical undergraduates in China. Biochem Mol Biol Educ. 2018;47(1):41–50. https://doi.org/10.1002/bmb.21194 .

Research Requirement for Medical Students [Internet]. AAMC. [cited 2024 March 6]. https://www.aamc.org/data-reports/curriculum-reports/data/research-requirement-medical-students .

‌ Ommering BWC, Van Blankenstein FM, van Diepen M, Gruis NA, Kool A, Dekker FW. The importance of motivation in selecting undergraduate medical students for extracurricular research programmes. PLoS ONE. 2021;16(11):e0260193. https://doi.org/10.1371/journal.pone.0260193 .

Haroon MA, Noorali AA, Khan AS, Hussain MH, Advani R, Sami A, et al. Implementation evaluation of a medical student-led intervention to enhance students’ engagement with research: findings and lessons learned. PLoS ONE. 2023;18(8):e0290867–7. https://doi.org/10.1371/journal.pone.0290867 .

Ommering BWC, van Blankenstein FM, Waaijer CJF, Dekker FW. Future physician-scientists: could we catch them young? Factors influencing intrinsic and extrinsic motivation for research among first-year medical students. Perspect Med Educ. 2018;7(4):248–55. https://doi.org/10.1007/s40037-018-0440-y .

Abu-Zaid A, Alkattan K. Integration of scientific research training into undergraduate medical education: a reminder call. Med Educ Online. 2013;18:22832. https://doi.org/10.3402/meo.v18i0.22832 .

Cuschieri A, Cuschieri S. Analysing the impact of an Elective Research experience on medical students’ research perceptions. Med Sci Educ. 2023;33(1):157–64. https://doi.org/10.1007/s40670-023-01727-w . PMID: 36688012; PMCID: PMC9845813.

Griffin MF, Hindocha S. Publication practices of medical students at British medical schools: experience, attitudes and barriers to publish. Med Teach. 2011;33(1):e1–8. https://doi.org/10.3109/0142159X.2011.530320 .

Morrison N, Machado M, Blackburn C. Bridging the gap: understanding the barriers and facilitators to performance for Black, Asian and Minority Ethnic medical students in the United Kingdom. Med Educ. 2024;58(4):443–56. https://doi.org/10.1111/medu.15246 . Epub 2023 Oct 8. PMID: 37807122.

Claridge H, Stone K, Ussher M. The ethnicity attainment gap among medical and biomedical science students: a qualitative study. BMC Med Educ. 2018;18(1):325. https://doi.org/10.1186/s12909-018-1426-5 . PMID: 30594175; PMCID: PMC6310969.

Morrison N, Zaman T, Webster G, Sorinola O, Blackburn C. Where are you really from?‘: a qualitative study of racial microaggressions and the impact on medical students in the UK. BMJ Open. 2023;13(5):e069009. https://doi.org/10.1136/bmjopen-2022-069009 . PMID: 37147091; PMCID: PMC10163503.

Pop AI, Lotrean LM, Buzoianu AD, Suciu SM, Florea M. Attitudes and practices regarding Research among Romanian Medical Undergraduate Students. Int J Environ Res Public Health. 2022;19(3):1872. https://doi.org/10.3390/ijerph19031872 .

Study formations. [Internet]. old.umfcluj.ro. [cited 2024 March 10]. https://umfcluj.ro/en/students/curriculum/study-formations/ .

Pate A, Mills AR, Fleming JW, Phan HK, Street M, Pitcock JJ. Residency application content and considerations based on residency director review of a fictitious CV: what really matters? Am J Health-System Pharm. 2023;80(17):1147–56. https://doi.org/10.1093/ajhp/zxad068 .

Abu-Zaid A. Research skills: the neglected competency in tomorrow’s 21st-century doctors. Perspect Med Educ. 2014;3(1):63–5. https://doi.org/10.1007/s40037-013-0087-7 .

Eley DS, Jensen C, Thomas R, Benham H. What will it take? Pathways, time and funding: Australian medical students’ perspective on clinician-scientist training. BMC Med Educ. 2017;17(1):242. https://doi.org/10.1186/s12909-017-1081-2 . PMID: 29216896; PMCID: PMC5721615.

‌. Framework [Internet]. old.umfcluj.ro. [cited 2024 March 10]. http://old.umfcluj.ro/en/cercetare-uk/cadru-uk .

‌ Petrella JK, Jung AP. Undergraduate research: importance, benefits, and challenges. Int J Exerc Sci. 2008;1(3):91–5.

Trethewey SP. Improving medical student engagement with extra-curricular research. Med Teach. 2019;41(7):849. https://doi.org/10.1080/0142159X.2018.1548761 .

Siemens DR, Punnen S, Wong J, Kanji N. A survey on the attitudes towards research in medical school. BMC Med Educ. 2010;10:4. https://doi.org/10.1186/1472-6920-10-4 . PMID: 20096112; PMCID: PMC2823602.

Kumar J, Memon A, Kumar A, Kumari R, Kumar B, Fareed S. Barriers experienced by medical students in Conducting Research at Undergraduate Level. Cureus. 2019;11(4):e4452. https://doi.org/10.7759/cureus.4452 . PMID: 31205838; PMCID: PMC6561510.

Hegde A, Venkataramana G, Kulkarni SB, Bhaskar NN, Jacob J, Gangadharappa SK. Attitudes, experiences, and barriers to research and publishing among dental postgraduate students of Bengaluru City: a cross-sectional study. J Ind Assoc Public Health Dent. 2017;15:157–61.

Boyer Commission on Educating Undergraduates in the Research University. Stony Brook. NY: State University of New York; 1998.

Google Scholar  

Mishra S. Do medical conferences have a role to play? Sharpen the saw. Indian Heart J. 2016;68(2):111–3. https://doi.org/10.1016/j.ihj.2016.03.011 .

Waaijer CJF, Ommering BWC, van der Wurff LJ, van Leeuwen TN, Dekker FW, NVMO Special Interest Group on Scientific Education. Scientific activity by medical students: the relationship between academic publishing during medical school and publication careers after graduation. Perspect Med Educ. 2019;8(4):223–9. https://doi.org/10.1007/s40037-019-0524-3 .

Straus SE, Straus C, Tzanetos K, International Campaign to Revitalise Academic Medicine. Career choice in academic medicine: systematic review. J Gen Intern Med. 2006;21(12):1222–9. https://doi.org/10.1111/j.1525-1497.2006.00599.x .

Download references

Acknowledgements

We would like to extend our sincere thanks to all the students who participated in the survey.

This research was funded through a research project by the Iuliu Hatieganu University of Medicine and Pharmacy, Internal grant—Doctoral Research Project with registration number: 1032/49/13 January 2021.

Author information

Authors and affiliations.

Department of Community Medicine, Research Center in Preventive Medicine, Health Promotion and Sustainable Development, Iuliu Hatieganu University of Medicine and Pharmacy, Cluj-Napoca, 400012, Romania

Andreea Iulia Pop

Department of Community Medicine, Research Center in Preventive Medicine, Health Promotion and Sustainable, Development Iuliu Hatieganu University of Medicine and Pharmacy, Cluj-Napoca, 400012, Romania

Lucia Maria Lotrean

You can also search for this author in PubMed   Google Scholar

Contributions

A.I.P. conducted data collection, performed data analysis and interpretation, and wrote the article. L.M.L. developed the methodology, provided supervision, offered valuable insights regarding data analysis and interpretation, and contributed to the article’s writing. The authors have read and approved the submitted version of the manuscript.

Corresponding author

Correspondence to Andreea Iulia Pop .

Ethics declarations

Ethics approval and consent to participate.

The study was approved by the Iuliu Hatieganu University of Medicine and Pharmacy Ethics Committee (Approval No. 27/03.11.2021).

The need for written informed consent was waived by the Iuliu Hatieganu University of Medicine and Pharmacy Ethics Committee due to the nature of the survey, which did not collect any personally identifiable data.

All students were informed that participating in the study is voluntary and that they can choose not to participate by not completing the anonymous survey. The students who completed the survey expressed their agreement with their involvement in the study.

Consent for publication

Not applicable.

Competing interests

The authors declare that they have no competing interests.

Additional information

Publisher’s note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ .

Reprints and permissions

About this article

Cite this article.

Pop, A.I., Lotrean, L.M. Comparative analysis of factors and barriers intervening in research participation among romanian and international medical graduates from one romanian medical faculty across three generations. BMC Med Educ 24 , 1028 (2024). https://doi.org/10.1186/s12909-024-05939-5

Download citation

Received : 07 April 2024

Accepted : 21 August 2024

Published : 19 September 2024

DOI : https://doi.org/10.1186/s12909-024-05939-5

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Research participation
• Medical graduates
• International medical education

BMC Medical Education

ISSN: 1472-6920

• General enquiries: [email protected]