Role of financial risk attitude and financial behavior as mediators in financial satisfaction

2018 ◽  
Vol 7 (2) ◽  
pp. 207-224 ◽  
Author(s):  
Kumar Saurabh ◽  
Tanuj Nandan
Keyword(s):  
Financial Risk ◽  
Uttar Pradesh ◽  
Risk Attitude ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Survey Method ◽  
Financial Satisfaction ◽  
Content Type ◽  
Financial Decisions ◽  
Tier Ii

Purpose The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial behavior as a mediator after demonetization and introduction of GST. Design/methodology/approach The sample consisted responses of 286 individuals from the city of Allahabad, Uttar Pradesh, India and making financial decisions for the household for at least last two years. The data were analyzed using exploratory factor analysis and mediation regression analysis. Findings All sub-scales used to measure constructs had satisfactory reliabilities and internal consistencies. It was found that financial risk attitude and financial behavior both mediate the relationship between financial socialization and financial satisfaction as well as between financial knowledge and financial satisfaction. Research limitations/implications This research is based upon survey method and voluntary participation. Hence one can question generalization of findings to larger samples. Moreover, the study is limited to a restricted geographical region which could affect the generalization of findings. Practical implications Results provide insights into the antecedents of financial satisfaction of individuals from tier II city of India. Financial planners may utilize this study for enhancement of financial satisfaction of their clients and hence retention of the same. Originality/value A majority of researchers use survey without evaluation validity of instruments in the selected context and sample. This research contributed to the literature and practice by testing validation of constructs of financial satisfaction in India.

Antecedents to responsible financial management behavior among young adults: moderating role of financial risk tolerance

2020 ◽  
Vol 38 (5) ◽  
pp. 1177-1194 ◽  
Author(s):  
Dhananjay Bapat
Keyword(s):  
Young Adults ◽  
Financial Management ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Management Behavior ◽  
Content Type ◽  
Financial Risk Tolerance

PurposeThe study examines the antecedents of responsible financial management behavior among young adults in India and explores the role of financial risk tolerance as a moderating variable.Design/methodology/approachThe sample includes young adults in the age group of 18–35. The analysis uses a two-step approach via standard partial least squares structural modeling (PLS-SEM) and ordinary least square (OLS) regression.FindingsStructural modeling results show that financial attitude fully mediates the relationship between financial knowledge and responsible financial management behavior, and locus of control influences responsible financial management behavior. Financial risk tolerance moderates the relationship. Among demographic factors, age and occupation influence responsible financial management behavior.Research limitations/implicationsThe financial knowledge used in the survey are based on self-reported responses. The future study can include participants from both developed and emerging countries to assess similarities and differences.Practical implicationsDespite the growing focus on improving financial literacy, there are growing concerns regarding responsible financial behavior. Since financial services is related to fiduciary responsibility, managers and policymakers need to ensure that financial knowledge results in improving financial attitude, which further leads to responsible financial behavior.Originality/valueThe present study from an emerging country will add value to the literature.

scholarly journals The effect of financial knowledge on firm performance

2022 ◽  
Vol 10 (8) ◽  
pp. 236-249
Author(s):  
Cicik Retno Wati ◽  
Sumiati Sumiati ◽  
Andarwati Andarwati
Keyword(s):  
Firm Performance ◽  
Financial Risk ◽  
Risk Attitude ◽  
Partial Least Square ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Access To Finance ◽  
Relationship Of ◽  
The Relationship

This research aims to know the effect of financial knowledge on firm performance; the role of financial behavior and access to finance as mediation and the role of financial risk attitude as moderation. The object of this research is the owner of small-medium enterprises, sector food and beverage in Malang. Data collection was carried out using a questionnaire of 150 respondents. Data analysis of this research uses partial least square (PLS). The finding indicates that financial knowledge has a positive and significant effect on firm performance; financial behavior mediates the relationship of financial knowledge dan firm performance; while access to finance doesn’t mediate the relationship of financial knowledge with firm performance. This research also found that financial risk attitude weakens the relationship of financial knowledge with financial behavior.

scholarly journals Pengaruh Financial Knowledge, Financial Satisfaction, Financial Confidence terhadap Financial Behavior

2021 ◽  
Vol 5 (1) ◽  
pp. 72
Author(s):  
Iskandy Wijaya ◽  
Yanuar Yanuar
Keyword(s):  
Sampling Technique ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Primary Data ◽  
Financial Satisfaction ◽  
Cross Sectional ◽  
Probability Sampling ◽  
Financial Decisions ◽  
Convenience Sampling ◽  
Cross Sectional Design

The purpose of this study is to analyze the effect of Financial Satisfaction, Financial Knowledge, Financial Confidence on Financial Behavior. This study uses the theory of planned behavior and financial behavior theory. The problem in this research is to find out the factors that can improve an individual's financial behavior in making appropriate financial decisions. This study uses a conclusive and descriptive research design. This research data is primary data obtained by a cross-sectional design. The sampling technique of this study was non-probability sampling using convenience sampling. This research was conducted with OVO application users in UNTAR. The results of this study indicate that Financial Knowledge and Financial Confidence have a significant effect on Financial Behavior while Financial Satisfaction does not affect Financial Behavior. Tujuan penelitian ini adalah untuk menganalisis pengaruh Financial Satisfaction, Financial Knowledge, Financial Confidence terhadap Financial Behavior. Penelitian ini menggunakan teori perilaku terencana dan teori perilaku keuangan. Masalah dalam penelitian ini yaitu untuk mengetahui faktor yang dapat meningkatkan perilaku keuangan individu dalam pengambilan keputusan keuangan yang tepat. Penelitian ini menggunakan desain penelitian konklusif dan deskriptif. Data penelitian ini merupakan data primer yang diperoleh dengan cross-sectional design. Teknik pengambilan sampel penelitian ini adalah non-probability sampling dengan menggunakan convenience sampling. Penelitian ini dilakukan kepada pengguna aplikasi OVO di UNTAR. Hasil penelitian ini menunjukan bahwa Financial Knowledge dan Financial Confidence berpengaruh signifikan terhadap Financial Behavior sedangkan Financial Satisfaction tidak berpengaruh terhadap Financial Behavior.

Young adults’ subjective and objective risk attitude in financial decision making

2018 ◽  
Vol 10 (3) ◽  
pp. 274-294 ◽  
Author(s):  
Andreas Oehler ◽  
Matthias Horn ◽  
Florian Wedlich
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Risk Aversion ◽  
Real World ◽  
Risk Attitude ◽  
Similar Degree ◽  
Content Type ◽  
Financial Decisions ◽  
Objective Risk ◽  
Subjective Risk

Purpose The purpose of this paper is to derive the determinants of young adults’ subjective and objective risk attitude in theoretical and real-world financial decisions. Furthermore, a comparison of the factors that influence young adults’ and older adults’ risk attitude is provided. Design/methodology/approach The paper relies on an experimental setting and a cross-sectional field study using data of the German central bank’s (Deutsche Bundesbank) PHF-Survey. Findings Young adults’ objective risk aversion is not constant but increases with stake sizes. Furthermore, young adults’ subjective risk attitude is a better predictor for their objective risk attitude than a set of commonly employed socio-demographics and economics like age or income. Moreover, young adults’ subjective risk attitude works as a mediator for the influence of their investable financial wealth on their objective risk attitude. Although young adults’ subjective risk attitude shows a gender effect, the influence of young adults’ gender on their objective risk attitude decreases with higher stake sizes. Compared to older adults, young adults generally show a similar degree of subjective risk aversion. However, due to stronger financial restrictions, young adults show a higher degree of objective risk aversion. Originality/value Although individuals’ financial outcomes depend on the financial behavior established in young adulthood, there is no study that simultaneously analyzes the determinants of young adults’ subjective and objective risk attitude in real-world financial decisions with a focus on young adults as a separate age group. The paper closes this gap in literature and additionally provides a comparison of the subsamples of young adults and older adults. The analysis in this paper reveals that young adults’ lower engagement in financial markets is primarily driven by their tight budget and not by a fundamental different subjective risk attitude.

scholarly journals Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude

2020 ◽  
Vol 12 (9) ◽  
pp. 3683 ◽  
Author(s):  
Yoshihiko Kadoya ◽  
Mostafa Saidur Rahim Khan
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Economic Factors ◽  
Financial Decisions ◽  
Aged People ◽  
And Behavior ◽  
Socio Economic Factors

Success in the current complex and sophisticated financial marketplaces depends on the ability of people to make sustainable financial decisions to improve their future well-being, for which financial literacy is a pathway. This study examines the relationship between the demographic and socio-economic factors and financial literacy in Japan by segregating financial literacy into financial knowledge, attitude, and behavior, and providing a deeper understanding of the relationships. The methodology included using data from the Financial Literacy Survey 2016 by the Central Council for Financial Services Information of Japan. We used a linear regression model to explain how demographic and socio-economic factors relate to financial knowledge, attitude, and behavior. Results show that education, the balance of financial assets, and the use of financial information are positively related, while the experience of financial trouble is negatively related to financial knowledge, attitude, and behavior. We show that males are more financially knowledgeable than females, but females are more positive than males with regard to financial behavior and financial attitude. Age is positively related to financial knowledge but negatively related to financial attitude, thus suggesting that middle-aged people in Japan are more financially knowledgeable, but younger and older people are more positive with regard to financial behavior and attitude. The findings have implications for policymakers.

Financial education and financial satisfaction

2017 ◽  
Vol 35 (5) ◽  
pp. 805-817 ◽  
Author(s):  
Jing Jian Xiao ◽  
Nilton Porto
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Financial Behavior ◽  
Future Research ◽  
Financial Satisfaction ◽  
Financial Capability ◽  
Data Set ◽  
Content Type ◽  
Mediating Factors

Purpose The purpose of this paper is to investigate roles of financial literacy, financial behavior, and financial capability as mediating factors between financial education and financial satisfaction. Design/methodology/approach Data are from the 2012 National Financial Capability Study, a large national data set with detailed information on financial satisfaction, education, literacy, behavior, capability, and related variables. Mediation analyses are used to answer research questions. Findings Financial education may affect financial satisfaction, a subjective measure of financial well-being, through financial literacy, financial behavior, and financial capability variables. Results show that subjective financial literacy, desirable financial behavior and a financial capability index (a sum of Z-scores of objective financial literacy, subjective financial literacy, desirable financial behavior, and perceived financial capability) are strong mediators between financial education and financial satisfaction. Research limitations/implications The study has used cross sectional data that can only document associations between financial education and satisfaction and the mediators between them. Future research could use relevant longitudinal data to verify multiple benefits of financial education. Practical implications The findings have implications for financial service professionals to take advantages of multiple benefits of financial education in content acquisition, confidence in knowledge and ability, and action taking when they communicate with their clients. Social implications Policy makers on consumer financial education may use the information to advocate and promote effective education programs to improve consumer financial well-being. Originality/value This study is the first of this kind to examine the association between financial education and financial satisfaction and several financial capability variables as mediating factors.

scholarly journals Financial Knowledge as Youth Preneur Success Factor

2019 ◽  
Vol 10 (2(S)) ◽  
pp. 26-32
Author(s):  
Achmad Kautsar ◽  
Nadia Asandimitra
Keyword(s):  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Knowledge ◽  
Test Reliability ◽  
Financial Behavior ◽  
Cluster Sampling ◽  
Success Factor ◽  
Entrepreneurial Success ◽  
Financial Decisions ◽  
Entrepreneurial Skills

Indonesia currently has developed entrepreneurship both conceptually and practically and has developed very rapidly. Knowledge that must be possessed by an entrepreneur is financial knowledge. Adequate financial knowledge is needed to provide entrepreneurial skills to make sound financial decisions. Other variables of financial behavior that are important to be measured along with financial knowledge on the success of young entrepreneurial business are the level of financial behavior and financial literacy. This research was designed as explanatory research to explain the subject of the influence of financial knowledge, financial literacy, and financial attitude towards young entrepreneurial success. The research was conducted in the city of Surabaya. The population of this study is young entrepreneurs who have micro businesses. The sampling technique is done in a way cluster sampling. The analytical method used in this study is to use multiple linear regressions with validity test, reliability test, classic assumption test, and hypothesis testing.

scholarly journals Pengaruh Financial Attitude, Financial Behavior, Financial Knowledge, dan Risk Tolerance terhadap Financial Satisfaction

2020 ◽  
Vol 2 (3) ◽  
pp. 631
Author(s):  
Olivia Sandra Wijaya ◽  
Ary Satria Pamungkas
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Positive Influence ◽  
Risk Tolerance ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Satisfaction ◽  
Probability Sampling ◽  
Analysis Technique

The purpose of this study is to examine the effect of Financial Attitude, Financial Behavior, Financial Knowledge and Risk Tolerance on Financial Satisfaction. The sample in this study is all residents who already have income or income in the Jakarta area. The sample was chosen by the non-probability sampling method, amounting to 190 respondents by distributing questionnaires online. The data analysis technique used is Structural Equation Modeling (SEM) which is assisted with the assistance of the Smart-PLS program.3.3.2. The results of this study are that there is a positive influence of Financial Attitude on Financial Satisfaction, there is a positive influence of Financial Behavior on Financial Satisfaction, and there is a positive influence of Financial Knowledge on Financial Satisfaction. While the results obtained in this study indicate there is no effect of Risk Tolerance on Financial Satisfaction. Tujuan dari penelitian ini adalah untuk meneliti mengetahui pengaruh Financial Attitude, Financial Behavior, Financial Knowledge dan Risk Tolerance terhadap Financial Satisfaction. Sampel pada penelitian ini adalah seluruh penduduk yang sudah memiliki pendapatan atau penghasilan di wilayah Jakarta. Sampel dipilih dengan metode non-probability sampling yang berjumlah 190 responden dengan penyebaran kuesioner secara online. Teknis analisis data digunakan adalah Structural Equation Modeling (SEM) yang dibantu dengan bantuan program Smart-PLS.3.3.2. Hasil dari penelitian ini adalah terdapat pengaruh positif Financial Attitude terhadap Financial Satisfaction, terdapat pengaruh positif Financial Behavior terhadap Financial Satisfaction, dan terdapat pengaruh positif Financial Knowledge terhadap Financial Satisfaction. Sedangkan hasil yang didapat pada penelitian ini menunjukkan tidak terdapat pengaruh Risk Tolerance terhadap Financial Satisfaction.

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