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What is financial experience? 

Research Question

What is financial experience? 
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Academic Insights

Financial experience encompasses the practical knowledge and skills acquired through direct involvement in financial activities, which significantly influence financial decision-making and behavior.

Key Insights

  • Practical Knowledge and Skills:

    • Financial experience involves learning-by-doing, where individuals gain practical knowledge through direct involvement in financial activities .
    • This experience helps individuals cope with risk and uncertainty in financial markets .
  • Impact on Financial Decision-Making:

    • Individuals with financial experience tend to make better financial decisions, as they possess more experience-based knowledge and exhibit less negative emotions about financial decisions .
    • Financial experience can reduce information asymmetry and promote external financing, particularly in the context of SMEs .
  • Role in Financial Reporting and Business Performance:

    • Financial experience is crucial for accurate financial reporting and effective resource management, which in turn impacts business performance .
    • The quality of financial reporting is significantly influenced by the financial experience of the individuals involved .

Conclusion

Financial experience is a critical factor in effective financial decision-making, risk management, and accurate financial reporting. It enhances practical knowledge and skills, reduces information asymmetry, and positively impacts business performance.

2

Knowledge, Experience, and Financial Decision-Making

1 citations | The Routledge Handbook of Financial Geography | G. Clark | 2020Cite
4

Age differences in financial decision making: T he benefits of more experience and less negative emotions

61 citations | Journal of Behavioral Decision Making | Wiebke Eberhardtet | 2018Cite
6

Assessment of the Causes of Business Process Failure at Authorised Financial Service Providers in South Africa and Implementation of Strategy Results

2 citations | International Journal of Scientific and Research Publications | Dr Thabo Msimango | 2023Cite
7

The Importance of Financial Experience for First-Time Homeowners

Household Finance eJournal | Taylor A. Begleyet | 2019Cite
8

The Governance of Risk Management: The Importance of Directors’ Independence and Financial Knowledge

14 citations | Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation eJournal | G. Dionneet | 2018Cite
10

Experience in Generating Non-Financial Reports in Enterprises

2 citations | Accounting. Analysis. Auditing | E. Moiseeva | 2020Cite
12

Measuring The Contribution Of Financial Literacy In Building The Competitive Advantage Of MSMEs In Indonesia : Systematic Literature Review (SLR)

3 citations | Brilliant International Journal Of Management And Tourism | Amelia Suganggaet | 2023Cite
15

The Influence of Financial Attitude, Experience and Risk Perception on Stock Investment Decision Making in Jakarta

Journal of Economics, Finance And Management Studies | I. G. Adiputraet | 2024Cite
16

DEVELOPMENT OF DIGITAL FINANCIAL ASSETS: FOREIGN EXPERIENCE

2 citations | EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA | E. Karaninaet | 2023Cite
17

The experience of financial toxicity among advanced melanoma patients treated with immunotherapy

20 citations | Journal of Psychosocial Oncology | Bridgette Thomet | 2020Cite
18

THE ADVANCED EXPERIENCE IN THE ORGANIZATION OF THE COMBINED SYSTEMS OF THE STATE FINANCIAL CONTROL AND ITS IMPORTANCE FOR UKRAINE

3 citations | Financial and credit activity: problems of theory and practice | О. Voronkovaet | 2021Cite
19

A review of the limitations of financial failure prediction research

7 citations | Revista de Contabilidad | E. Laitinenet | 2023Cite
21

The Changing Network of Financial Market Linkages: The Asian Experience

60 citations | International Finance eJournal | Biplob Chowdhuryet | 2018Cite
23

Unlocking clients: The importance of relationships in the financial advisory industry

14 citations | Consumer Financial Fraud eJournal | Umit G. Gurunet | 2020Cite
28

A narrative review of the experience and decision‐making for children on home mechanical ventilation

15 citations | Journal of Paediatrics and Child Health | Mayukh Rahmanet | 2021Cite

Related Questions

  • How can I gain financial experience?
  • What are the benefits of financial experience?
  • What roles require financial experience?
  • How does financial experience impact career growth?
  • What skills are developed through financial experience?

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