Publication Cover
Dynamics of Asymmetric Conflict
Pathways toward terrorism and genocide
Volume 14, 2021 - Issue 3
745
Views
0
CrossRef citations to date
0
Altmetric
Research Article

FinTech, terrorism-related fund transfers and behavioural finance

ORCID Icon &
Pages 226-246 | Received 21 Apr 2020, Accepted 30 Aug 2020, Published online: 14 Sep 2020

References

  • Alicke, M. D., & Govorun, O. (2005). The better-than-average effect. In M. D. Alicke, D. Dunning, & J. Krueger (Eds.), The self in social judgment (pp. 85–106). New York, NY: Psychology Press.
  • Andersen, J. V. (2010). Detecting anchoring in financial markets. Journal of Behavioural Finance, 11, 129–133.
  • Anderson, K., & Zastawniak, T. (2017). Glamour, value and anchoring on the changing P/E. European Journal of Finance, 23, 375–406.
  • Ariely, D., Loewenstein, G., & Prelec, D. (2003). “Coherent arbitrariness”: Stable demand curves without stable preferences. Quarterly Journal of Economics, 118, 73–105.
  • Arner, D. W., Barberis, J., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm. Georgetown Journal of International Law, 47, 1271–1320.
  • Baker, T., & Dellaert, B. (2018). Regulating robo-advice across the financial services industry. Iowa Law Review, 103, 713–750.
  • Bantekas, I. (2003). The international law of terrorist financing. American Journal of International Law, 97, 315–333.
  • Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence and common stock investment. Quarterly Journal of Economics, 116, 261–292.
  • Basile, M. (2004). Going to the source: Why Al Qaeda’s financial network is likely to withstand the current war on terrorist financing. Studies in Conflict and Terrorism, 27, 169–185.
  • Biais, B., Hilton, D., Mazurier, K., & Pouget, S. (2005). Judgmental overconfidence, self-monitoring, and trading performance in an experimental financial market. Review of Economic Studies, 72, 287–312.
  • Brenner, L. A., Koehler, D. J., Liberman, V., & Tversky, A. (1996). Overconfidence in probability and frequency judgments: A critical examination. organizational behavior and human decision processes, 65, 212–219.
  • Broihanne, M. H., Merli, M., & Roger, P. (2014). Overconfidence, risk perception and the risk-taking behaviour of finance professionals. Finance Research Letters, 11, 64–73.
  • Bures, O. (2012). Private actors in the fight against terrorist financing: Efficiency versus effectiveness. Studies in Conflict and Terrorism, 35, 712–732.
  • Bures, O. (2015). Ten years of EU’s fight against terrorist financing: A critical assessment. Intelligence and National Security, 30, 207–233.
  • Carew, R., & Demos, T. (2015, April 16). China’s lufax valued at nearly $10 billion in recent funding round. Wall Street Journal.
  • Cen, L., Gilles, H., & Wei, K. C. J. (2013). The role of anchoring bias in the equity market: Evidence from analysts’ earnings forecasts and stock returns. Journal of Financial and Quantitative Analysis, 48, 47–76.
  • Chang, T. Y., Solomon, D. H., & Westerfield, M. M. (2016). Looking for someone to blame: Delegation, cognitive dissonance, and the disposition effect. The Journal of Finance, 71, 267–302.
  • Clarke, C. P. (2018). An overview of current trends in terrorism and illicit finance: Lessons from the Islamic state in Iraq and Syria and other emerging threats. Testimony presented before the House Financial Services Committee, Subcommittee on Terrorism and Illicit Finance on September 7, 2018. RAND Corporation CT498, Washington DC.
  • Clunan, A. L. (2006). The fight against terrorist financing. Political Science Quarterly, 121, 569–596.
  • CNBC. (2018, May 29). China’s ant financial raises $10 billion at $150 billion valuation: Sources.
  • Daniel, K. D., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under- and overreactions. The Journal of Finance, 53, 1839–1886.
  • De Bondt, W. F. M., & Thaler, R. (1985). Does the stock market overreact? Journal of Finance, 40, 793–805.
  • Deloitte. (2017). FinTech by the numbers. New York, NY: The Deloitte Center for Financial Services.
  • Dickler, J., & Epperson, S. (2018, March 3). Digital wallets are safe but Americans remain wary. Englewood Cliffs, NJ: CNBC.
  • Didenko, A. (2018). Regulating FinTech: Lessons from Africa. San Diego International Law Journal, 19, 311–370.
  • Dunning, D., Heath, C., & Suls, J. M. (2004). Flawed self-assessment: Implications for health, education, and the workplace. Psychological Science in the Public Interest, 5, 69–106.
  • Ernst & Young. (2019). Global FinTech adoption index 2019. New York, NY: EY Global Financial Services.
  • Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. Journal of Finance, 25, 383–417.
  • Fellner-Röhling, G., & Krügel, S. (2014). Judgemental overconfidence and trading activity. Journal of Economic Behaviour and Organisation, 107, 827–842.
  • Ferris, S., Haugen, R., & Makhija, A. (1988). Predicting contemporary volume with historic volume at differential price levels: Evidence supporting the disposition effect. Journal of Finance, 43, 677–697.
  • Festinger, L. (1957). A theory of cognitive dissonance. Palo Alto, CA: Stanford University Press.
  • Forbes. (2019, February 4). FinTech 50: The most innovative FinTech companies in 2019.
  • Freeman, M. (2011). The sources of terrorist financing: Theory and typology. Studies in Conflict & Terrorism, 34, 461–475.
  • Glaser, M., & Weber, M. (2007). Overconfidence and trading volume. Geneva Risk Insurance Review, 32, 1–36.
  • Goetzmann, W., & Peles, N. (1997). Cognitive dissonance and mutual fund investors. Journal of Financial Research, 20, 145–158.
  • Grubb, M. D. (2015). Overconfident consumers in the marketplace. Journal of Economic Perspectives, 29, 9–35.
  • Harsanyi, J. C. (1978). Bayesian decision theory and utilitarian ethics. American Economic Review, 68(2), 223–228.
  • Joaristi, M., Serra, E., & Spezzano, F. (2019). Detecting suspicious entities in offshore leaks networks. Social Network Analysis and Mining, 9, 1–15.
  • Kahneman, D., & Tversky, A. (1982). Intuitive prediction, biases and corrective procedures. In D. Kahneman, P. Slovic, & A. Tversky (Eds.), Judgement under uncertainty: Heuristics and biases (pp.414–421). London: Cambridge University Press.
  • Kahneman, D. (2011). Thinking, fast and slow. London, UK: Penguin.
  • Kahneman, D., Knetch, J., & Thaler, R. (1990). Experimental tests of the endowment effect and coase theorem. Journal of Political Economy, 98, 1325–1348.
  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263–291.
  • Kauflin, J. (2019, February 4). The 11 biggest FinTech companies in America 2019. Jersey City, NJ: Forbes.
  • Keatinge, T., & Danner, K. (2019). Assessing innovation in terrorist financing. Studies in Conflict & Terrorism, 1–18. Forthcoming. doi:https://doi.org/10.1080/1057610X.2018.1559516
  • Knutson, B., Wimmer, G., Rick, S., Hollon, N., Prelec, D., & Loewenstein, G. (2008). Neural antecedents of the endowment effect. Neuron, 58, 814–822.
  • Levy, I., & Yusef, A. (2019). How do terrorist organisations make money? Terrorist funding and innovation in the case of al-Shabaab. Studies in Conflict and Terrorism, 1–23. Forthcoming. doi:https://doi.org/10.1080/1057610X.2019.1628622
  • Lichtenstein, S., Fischhoff, B., & Phillips, L. D. (1982). Calibration of probabilities: The state of the art to 1980. In D. Kahneman, P. Slovic, & A. Tversky (Eds.), Judgement under uncertainty: Heuristics and biases (pp. 306–334). Cambridge: Cambridge University Press.
  • Lowenstein, R. (2000). When genius failed: The rise and fall of long term capital management. New York, NY: Random House.
  • MacDonald, D. N., Kagel, J. H., & Battalio, R. C. (1985). Animals’ choices over uncertain outcomes: Some initial experimental results. American Economic Review, 75, 597–613.
  • MacDonald, D. N., Kagel, J. H., & Battalio, R. C. (1991). Animals’ choices over uncertain outcomes: Further experimental results. Economic Journal, 101, 1067–1084.
  • Markowitz, H. M. (1952). Portfolio selection. Journal of Finance, 7(1), 77–91.
  • Markowitz, H. M. (1959). Portfolio selection: Efficient diversification of investments. New York: John Wiley & Sons.
  • Mascarenhas, R., & Sandler, T. (2014). Remittances and terrorism: A global analysis. Defence and Peace Economics, 25, 331–347.
  • Maurer, B. (2008). Re-regulating offshore finance? Geography Compass, 2, 155–175.
  • Modigliani, F., & Miller, M. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48, 261–297.
  • Mukherjee, A. (2019, August 9). Banks near zero hour on $124 trillion of flows. New York, NY: Bloomberg Finance.
  • Northcraft, G. B., & Neale, M. A. (1987). Experts, amateurs, and real estate: An anchoring-and-adjustment perspective on property pricing decisions. Organisational Behaviour and Human Decision Processes, 39, 84–97.
  • Odean, T. (1998). Are investors reluctant to realise losses? Journal of Finance, 80, 1775–1798.
  • Odean, T. (1999). Do investors trade too much? American Economic Review, 89, 1279–1298.
  • Passas, N., & Jones, K. (2006). Commodities and terrorist financing: Focus on diamonds. European Journal on Criminal Policy and Research, 12, 1–33.
  • Phillips, B. J. (2019). Foreign terrorist organisation designation, international cooperation and terrorism. International Interactions, 45, 316–343.
  • Phillips, P. J. (2009). Applying portfolio theory to the analysis of terrorism: Computing the set of attack method combinations from which the rational terrorist group will choose in order to maximise injuries and fatalities. Defence and Peace Economics, 20, 193–213.
  • Phillips, P. J., & Pohl, G. (2014). Prospect theory and terrorist choice. Journal of Applied Economics, 17, 139–160.
  • Phillips, P. J., & Pohl, G. (2017). Terrorist choice: A stochastic dominance and prospect theory analysis. Defence and Peace Economics, 28, 150–164.
  • Phillips, P. J., & Pohl, G. (2020). How terrorism red flags become weak signals through the processes of judgement and evaluation. Journal of Police and Criminal Psychology, 35, 377–388.
  • Raphaeli, N. (2003). Financing of terrorism: Sources, methods and channels. Terrorism and Political Violence, 15, 59–82.
  • Richterova, D. (2018). The anxious host: Czechoslovakia and Carlos the Jackal 1978–1986. International History Review, 40, 108–132.
  • Robinson, A. (2019). Seychelles: Prospects, probity and legacy, governance under transnational pressures. Commonwealth Journal of International Affairs, 108, 307–326.
  • Romaniuk, P. (2014). The state of the art on the financing of terrorism. RUSI Journal, 159, 6–17.
  • Rooney, K. (2019, July 24). Betterment faces questions from regulator after launching checking and savings accounts. Englewood Cliffs, NJ: CNBC.
  • Salami, I. (2018). Terrorism financing with virtual currencies: Can regulatory technology solutions combat this? Studies in Conflict and Terrorism, 41, 968–989.
  • Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance, 19, 425–442.
  • Shefrin, H., & Statman, M. (1985). The disposition to sell winners too early and ride losers too long: Theory and evidence. Journal of Finance, 40, 777–790.
  • Shefrin, H., & Statman, M. (2000). Behavioural portfolio theory. Journal of Financial and Quantitative Analysis, 35, 127–151.
  • Shelley, L. I., & Picarelli, J. T. (2002). Methods not motives: Implications of the convergence of international organised crime and terrorism. Police Practice and Research, 3, 305–318.
  • Shiller, R. (1981). Do stock prices move too much to be justified by subsequent changes in dividends? American Economic Review, 71, 421–436.
  • Slovic, P., Fischhoff, B., & Lichtenstein, S. (1977). Behavioural decision theory. Annual Review of Psychology, 29, 1–39.
  • Statman, M., Thorley, S., & Vorkink, K. (2006). Investor overconfidence and trading volume. Review of Financial Studies, 19, 1531–1565.
  • Stringer, K. D. (2011). Tackling threat finance: A labour for hercules or sisyphus. Parameters, 41, 101–119.
  • Svenson, O. (1981). Are we all less risky and more skilful than our fellow drivers? Acta Psychologica, 94, 143–148.
  • Teichmann, F. M. (2019). Recent trends in money laundering and terrorism financing. Journal of Financial Regulation and Compliance, 27, 2–12.
  • Thaler, R. (1980). Toward a positive theory of consumer choice. Journal of Economic Behaviour and Organization, 1, 39–60.
  • Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4, 199–214.
  • Thaler, R. (1999a). The end of behavioural finance. Financial Analysts Journal, 55, 12–17.
  • Thaler, R. (1999b). Mental accounting matters. Journal of Behavioural Decision Making, 12, 183–206.
  • Thaler, R. H. (2016). Misbehaving: The making of behavioural economics. New York, NY: W.W. Norton & Co.
  • Tversky, A., & Kahneman, D. (1974). Judgement under uncertainty: Heuristics and biases. Science, 185, 1124–1131.
  • Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5, 297–323.
  • von Neumann, J., & Morgenstern, O. (1947). Theory of games and economic behaviour (2nd ed.). Princeton, NJ: Princeton University Press.
  • Whyte, C. (2019). Cryptoterrorism: Assessing the utility of blockchain technologies for terrorist enterprise. Studies in Conflict and Terrorism, 1–24. Forthcoming. doi:https://doi.org/10.1080/1057610X.2018.1531565
  • Winer, J. M., & Roule, T. J. (2002). Fighting terrorist finance. Survival: Global Politics and Strategy, 44, 87–104.
  • Zdanowicz, J. S. (2004). Detecting money laundering and terrorist financing via data mining. Communications of the ACM, 47, 53–55.
  • Zdanowicz, J. S. (2009). Trade-based money laundering and terrorist financing. Review of Law and Economics, 5, 855–878.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.