Propensity toward indebtedness: evidence from Malaysia

2019 ◽  
Vol 11 (2) ◽  
pp. 188-200 ◽  
Author(s):  
Nurul Azma ◽  
Mahfuzur Rahman ◽  
Adewale Abideen Adeyemi ◽  
Muhammad Khalilur Rahman
Keyword(s):  
Financial Literacy ◽  
Risk Perceptions ◽  
Structural Equation ◽  
Demographic Variables ◽  
Kuala Lumpur ◽  
Content Type ◽  
Long Run ◽  
Klang Valley ◽  
Behavioural Factors ◽  
Self Administered Questionnaire

Purpose The purpose of this paper is to develop a model for studying the propensity towards indebtedness in Malaysia using behavioural factors. Design/methodology/approach A self-administered questionnaire was distributed among Malaysians who work in Klang Valley, Kuala Lumpur. The questionnaire contained several demographic variables and four behavioural factors: financial literacy, risk perception, materialism and emotions. A total of 201 completed questionnaires were received and the data were tested using structural equation modelling with partial least squares. Findings This study found that emotion and materialism are statistically significant for a propensity towards indebtedness, while financial literacy and risk perceptions are insignificant for a propensity towards indebtedness. Originality/value The results of this study would be useful in helping design better models for credit offerings and addressing credit problems in the long run.

Behavioural, Socio-economic Factors, Financial Literacy and Investment Decisions: Are Men More Rational and Women More Emotional?

2021 ◽  
pp. 001946622098702
Author(s):  
Swati Prasad ◽  
Ravi Kiran ◽  
Rakesh Kumar Sharma
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decisions ◽  
Jel Classification ◽  
Economic Factors ◽  
Fund Managers ◽  
Multivariate Technique ◽  
Retail Investors ◽  
Behavioural Factors ◽  
Socio Economic Factors

This study covers the gender-wise analysis of how behavioural factors and socio-economic factors along with the level of financial literacy influence investment decisions of Indian retail investors. Equally pertinent is to understand that will it have a different influence and bearing on males and females. Multivariate technique partial least squares-structural equation modelling (PLS-SEM) has been applied to develop the model and analyse the results. The study used a structured questionnaire for collecting data from retail investors. The findings of PLS-SEM show that in both genders, behavioural factors, socio-economic factors and financial literacy factors significantly affect investment decisions. However, the findings demonstrate that for women investors, the model is more effective. This study may be useful for prospective fund managers as, in many earlier studies, women are considered to be risk aversive. The results demonstrate that there is a need to target women, and the scenario today is not similar to the pre-existing ones. JEL Classification: G110, G4

Country perspective on medical tourism: the Malaysian experience

2015 ◽  
Vol 28 (1) ◽  
pp. 43-56 ◽  
Author(s):  
Noor Hazilah Abd Manaf ◽  
Husnayati Hussin ◽  
Puteri Nemie Jahn Kassim ◽  
Rokiah Alavi ◽  
Zainurin Dahari
Keyword(s):  
Medical Tourism ◽  
Destination Country ◽  
Kuala Lumpur ◽  
Policy Makers ◽  
Main Method ◽  
Content Type ◽  
Five Dimensions ◽  
Future Intention ◽  
The Right ◽  
Self Administered Questionnaire

Purpose – The study seeks to explore the perception of international patients on Malaysia as a medical tourism destination country, as well as overall patient satisfaction, perceived value and future intention for repeat treatment and services. Design/methodology/approach – Self-administered questionnaire was the main method of data collection. The survey covered major private hospitals in medical tourists’ states in the country, namely, Penang, Melaka, Selangor and Kuala Lumpur. Convenience sampling was used due to the condition of patients as respondents. Findings – Indonesian patients formed the largest majority of international patients in the country. Five dimensions of medical tourism in Malaysia was identified, namely, hospital and staff, country factor, combining tourism and health services, cost saving and insurance and unavailability of treatment. Of these, hospital and staff was found to be the most important factor for the patients. Perception of value, overall satisfaction and intention for future treatment was also found to be high. This indicates that Malaysia is on the right footing in this burgeoning industry. Practical implications – Findings from the study will enable policy-makers to better position Malaysia as a medical tourist destination country. Originality/value – Medical tourism is a recent phenomenon and very little empirical research has been carried out at the patient level. This study is one of the first few studies which seek to explore medical tourism from the perspective of the patients themselves.

scholarly journals The Influence of Financial Literacy, Risk Aversion and Expectations on Retirement Planning and Portfolio Allocation in Malaysia

2017 ◽  
Vol 19 (3) ◽  
pp. 267 ◽  
Author(s):  
Nurul Shahnaz Mahdzan ◽  
Amrul Asraf Mohd-Any ◽  
Mun-Kit Chan
Keyword(s):  
Risk Aversion ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Portfolio Allocation ◽  
Kuala Lumpur ◽  
Future Expectations ◽  
Risky Assets ◽  
Demographic Subgroups ◽  
Behavioural Aspects ◽  
Self Administered Questionnaire

The two objectives of this paper are to examine the effect of financial literacy, risk aversion and expectations on retirement planning; and, to investigate the effect of these antecedents on the retirement portfolio allocation. Data was collected via a self-administered questionnaire from a sample of 270 working individuals in Kuala Lumpur, Malaysia. Logistic and ordered probit regressions were employed to analyse the first and second objective, respectively.  The results from the logistic regression indicate that future expectations significantly influence the probability of planning for retirement. Meanwhile, individuals with higher financial literacy and lower risk aversion are more likely to hold risky assets in their retirement portfolios. Subsequently, two-sample t-test and one-way ANOVA tests were conducted to further examine the differences in financial literacy, risk aversion and expectations, across demographic subgroups. The study contributes to the literature by holistically incorporating the behavioural aspects that affect retirement planning and by exploring an uncharted issue of retirement planning—namely, the retirement portfolio allocation.

scholarly journals Gender as moderator of the influence of tourists’ risk perception on destination image and visit intentions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rita Rosa Carballo ◽  
Carmelo Javier León ◽  
María Magdalena Carballo
Keyword(s):  
Gender Differences ◽  
Risk Perception ◽  
Risk Perceptions ◽  
Structural Equation ◽  
Group Analysis ◽  
Destination Image ◽  
Content Type ◽  
Behavioural Intentions ◽  
Consumption Decisions ◽  
The Impact

Purpose This paper aims to study the influence of gender on the theoretical and empirical relationships between tourists’ risk perceptions and both destination image and behavioural intentions. Design/methodology/approach An empirical study was carried out with potential tourists at home in Germany and the UK considering travelling to Spain, Egypt, Morocco, Brazil, Colombia and Indonesia. Data were analysed using structural equation modelling with multi-group analysis. Findings Results show that gender moderates the theoretical relationships between risk perception and both destination image and behavioural intentions. Risk perception is higher for women than for men and depends on the type of risks and the characteristics of the destination. Women are more likely than men to reduce their visit to a destination whenever there is an increase in their risk perceptions. However, the influence of risk perception on destination image is higher for men than for women. Thus, results prove there are significant gender differences in the theoretical relationships between risk perceptions and destination image and visiting intentions. Originality/value This paper provides new evidence on the gender differences in risk perceptions in tourism and their impact on destination image and visiting intentions, showing that whenever there are higher risks at a tourist destination women do change more than men their behavioural intentions. The results are useful for designing risk management and promotion policies at destinations that avoid the masculinisation bias, thereby considering the impact of gender differences on travel behaviour and consumption decisions.

Exploring the antecedents of retail banks’ reputation in low-bankarization markets: brand equity, value co-creation and brand experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luís Daniel Martillo Jeremías ◽  
Ana Isabel Polo Peña
Keyword(s):  
Financial Institutions ◽  
Brand Equity ◽  
Low Income ◽  
Financial Literacy ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Equation Modeling ◽  
Brand Experience ◽  
Content Type

PurposeThe present study aims to propose and validate a model to measure certain variables that may contribute to increasing the bankarization rate (uptake of retail banking services) among developing-economy populations characterized by poor financial literacy and low income levels.Design/methodology/approachA quantitative empirical study is carried out in the retail banking sector of a country with low-bankarization rates. Using a self-administered questionnaire distributed online, structural equation modeling is applied to analyze the relationships between value co-creation, brand experience, brand equity and reputation.FindingsThe results show that brand equity is an antecedent of reputation that values co-creation, and brand experience positively influences brand equity and that values co-creation that positively influences brand experience.Social implicationsThe bankarization rate of a developing country is generally taken as an indicator of the socioeconomic wellbeing of its population. Where there is a low-bankarization rate, this renders it more difficult for financial institutions to build their reputation to attract new customers and retain existing ones. Strategies are, therefore, proposed to improve the reputation of financial institutions in such settings and, thus, contribute to increasing the bankarization rate.Originality/valueThe findings of this study provide an original perspective that offers a deeper understanding of the mechanisms that enable banks operating in low-bankarization markets to enhance their reputation through strategies based on customer–company interaction and branding (with the variables of brand equity, brand experience and value co-creation).

Evaluating the impact of hedonism on investment choices in India

2019 ◽  
Vol 45 (12) ◽  
pp. 1526-1541 ◽  
Author(s):  
Harish Kumar Singla ◽  
Amit Hiray
Keyword(s):  
Stock Market ◽  
Financial Literacy ◽  
Structural Equation ◽  
Measurement Model ◽  
Equation Model ◽  
Social Recognition ◽  
Fixed Income ◽  
Content Type ◽  
The Impact ◽  
Investment Choices

Purpose The purpose of this paper is to find the effect of the hedonism value on the investment preference in India. Design/methodology/approach Based on the literature review, a measurement model is developed to measure hedonism. Further, the effect of hedonism on investment choices of an individual and the impact of age, gender and income level on investment choices and on hedonism are also measured through a structural equation model (SEM). Findings The study finds that the measurement model is reliable, and all five items, that is an exciting life, happiness, pleasure, social recognition and a comfortable life, are an appropriate measure of hedonism. The study finds that hedonists prefer to invest in stock market-related instruments and real estate. The study also ascertains that age and income affect the hedonism value negatively. The findings also indicate that women prefer to invest in fixed income instruments and men prefer to invest in stock market-related instruments. As people grow in age, they prefer to invest in fixed-income instruments and gold as a hedge, thus avoiding risky investments. Research limitations/implications The study does not include education and financial literacy of individuals in the model, rather controls these factors by selecting a sample where the minimum educational qualification of the respondent is graduation. Practical implications It is assumed that the values that drive an individual have the potential to influence his/her investment choices. Therefore, the study advises the firms offering investment services to their clients to ensure that apart from studying the demographic and risk profile of individuals, they also assess their value system. This can help them target their customers more precisely and serve them better. Originality/value The study is perhaps the first attempt to find the effect of personal values (specifically hedonism) on investment choices made by individuals, through the development of an SEM.

The influence of personal values and demographic variables on customer loyalty in the banking industry

2015 ◽  
Vol 33 (4) ◽  
pp. 571-587 ◽  
Author(s):  
Jorge Luiz Henrique ◽  
Celso Augusto de Matos
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Statistical Power ◽  
Banking Industry ◽  
Emerging Market ◽  
Personal Values ◽  
Demographic Variables ◽  
Two Dimensions ◽  
Content Type ◽  
Private Banking

Purpose – Even though personal values are considered an important variable in consumer studies, rarely has it been related to customer loyalty, especially in the banking context and considering the different loyalty phases. Hence, the purpose of this paper is to investigate the influence of personal values on loyalty phases in the private banking industry, taking into account the moderating influence of demographic variables. Design/methodology/approach – After developing a theoretical framework based on the relevant literature, a research model is proposed and empirically tested with data from a survey with 891 bank customers from Brazil. Hypotheses of moderation were tested using structural equation modelling technique. Findings – Results suggested that customers that place more importance on growth and achievement as personal values are less loyal to their bank, considering all four stages of loyalty. Moreover, this effect was more pronounced for female, older and high-income consumers, supporting the moderating effect of these demographic variables. Research limitations/implications – One of the limitations was that the sample was not probabilistic. To compensate this issue, the authors have used the approach of splitting the sample and use one for calibration and other for estimation. Another limitation was the small subgroups of high and low education, which might be responsible for the nonsignificant finding, due to low statistical power in the z-test. Future studies should consider using quota samples in order to have sample size greater than 150 cases in each category of variables such as age, education and income. Practical implications – This study emphasizes the relevance of personal values, especially the dimensions of growth/achievement and security/social affiliation, and demographic variables when considering customers’ loyalty in the private banking industry. Managers should give different treatment for customers in distinct loyalty stages and with different demographics, thus increasing the customer orientation and segmentation efficacy. Originality/value – The study tests a theoretical model that analyses the influence of two dimensions of personal values on loyalty, with originality on the loyalty phases (from cognitive to action) and the contingent effect of demographic variables, such as gender, age, education and income. Moreover, the model is tested in a sample of private banking customers from an emerging market, i.e., Brazil.

scholarly journals Sharia Compliance Implementation Among Hoteliers in Klang Valley, Malaysia

2021 ◽  
Vol 4 (1) ◽  
pp. 58-74
Author(s):  
Adib Mohd ◽  
Azlizam Aziz ◽  
Siti Suriawati Isa
Keyword(s):  
Data Collection ◽  
Quantitative Research ◽  
Behavioural Control ◽  
Research Approach ◽  
Kuala Lumpur ◽  
Management Level ◽  
Perceived Behavioural Control ◽  
Klang Valley ◽  
The Relationship ◽  
Self Administered Questionnaire

Sharia compliance hotel has been created to cater to Muslim guests as demand and awareness for Islamic products and services increased. This innovative development can be found in countries where Muslim residents are the majority like Malaysia and Indonesia. However, there is a limited of study on the sharia compliance hotel acceptance among hoteliers particularly in Malaysia. Thus, the main purpose of the study is to examine the factors that contribute to the acceptance of sharia compliance hotel concept implementation among hoteliers. This study focuses on the middle management level employees in 3-5 star hotel situated in the Klang Valley, Malaysia. Drawing from Theory of Planned Behaviour, the specific research objectives are three-fold: 1) to examine the relationship between attitude and sharia compliance hotel acceptance, 2) to investigate the relationship between subjective norm and sharia compliance hotel acceptance, and 3) to examine the relationship between perceived behavioural control and sharia compliance hotel acceptance. The study utilized quantitative research approach to achieve the stated research objectives. For data collection, a self-administered questionnaire was deployed which was developed based on previous studies. For the purpose of the study, the data collection was conducted in fifteen hotels in the Klang Valley that include hotels in Kuala Lumpur, Selangor, Putrajaya and Cyberjaya. The results verified hotelier’s attitude, subjective norms and perceived behavioural control are salient attributes of sharia compliance hotel acceptance in the hotel industry. The research model based on the theory of planned behavior managed to explain more than 60 per cent of the variance in sharia compliance hotel acceptance.

The dynamic role of rapport on satisfaction–commitment relationship

2020 ◽  
Vol 38 (4) ◽  
pp. 917-932
Author(s):  
Johra Kayeser Fatima ◽  
Rita Di Mascio ◽  
Ali Quazi ◽  
Raechel Johns
Keyword(s):  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Future Research ◽  
Normative Commitment ◽  
Content Type ◽  
Moderation Effect ◽  
Long Run

PurposeThis study aims to capture the mediation role of customer–frontline employee rapport on customer satisfaction and affective, calculative and normative commitment by using three alternative models. It also verifies the moderation effect of relationship age on the rapport-satisfaction link in each alternative model.Design/methodology/approachThe survey data collected from bank customers were analyzed using structural equation modeling (SEM) with the partial least square (PLS) method.FindingsResults confirmed rapport as a significant mediator between satisfaction and each of the three types of commitment. Relationship age significantly moderates the links between rapport to affective and normative commitment but not to calculative commitment.Research limitations/implicationsAdditional findings from “importance–performance analysis” suggest that satisfaction is more import to customers than rapport for developing commitment, so further investigations can reveal the underlying reasons. Also, complementary mediation shows one or more missing mediators, which calls for future research.Practical implicationsManagers need to use rapport strategically with customers in different relationship ages to build different types of commitment. Specific tactics to build rapport and possible long run implications for developing affective, calculative and normative commitment have been discussed in the “note to practitioner” section.Originality/valueUsing “broaden-and-build” theory, the study extends the literature by confirming the mediation influence of rapport on satisfaction and three types of commitment relationships.

Financial literacy and awareness of investment scams among university students

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hazlina Mohd Padil ◽  
Eley Suzana Kasim ◽  
Salwa Muda ◽  
Norhidayah Ismail ◽  
Norlaila Md Zin
Keyword(s):  
University Students ◽  
Financial Literacy ◽  
Financial Management ◽  
Structural Equation ◽  
Online Survey ◽  
Least Square Method ◽  
Partial Least Square ◽  
Least Square ◽  
Prevention Measures ◽  
Content Type

Purpose This study aims to examine the relationship between budgeting skills and financial goals and the level of awareness of investment scams among university students. Design/methodology/approach An online survey was administered to university students in Malaysia. A total of 211 responses were received. The data was analysed using partial least square method based on structural equation modelling technique by using SmartPLS-3.0 and SPSS-20 statistical software. Findings Findings indicated that having adequate budgeting skills can significantly affect awareness of investment scam among students. This implies that early financial management education among students should focus on instilling disciplined budgeting habit to prevent them from becoming victims of investment scams. Nevertheless, when examining financial goals among the respondents, the study found that having a clear financial goal does not significantly contribute to their awareness in identifying investment scams. As such, students need to be properly guided in setting their financial objectives such as avoiding unrealistic goals to lead a luxurious lifestyle using “fast and easy” money. Social implications This study recommends that higher education institutions need to work together with relevant regulators and law enforcers in providing necessary financial literacy education as part of the investment scam prevention measures. Originality/value This study contributes to the literature gap on the need to focus on financial literacy in creating awareness towards investment scams among university students.

Sign in / Sign up

Export Citation Format

Share Document