Financial knowledge, financial attitude, and personality as antecedent of financial management behavior
DOI:
https://doi.org/10.12928/jombi.v1i2.588Abstract
Purpose: This study looks into the relationship between financial management behavior and financial knowledge, attitude, and personality.
Design/Methodology/Approach- The study population included Yogyakarta's Micro, Small, and Medium-Sized Ceramic Crafts Enterprises. Data for this study was collected through purposeful sampling, with 45 respondents forming up the study sample. Analysis processes were performed on this research data using an analysis program called SPSS.
Findings-The findings show that personality, financial attitude, and financial knowledge positively influence the financial management behavior of Yogyakarta's Micro, Small, and Medium-Sized Ceramic Crafts Enterprises.
Research limitations/implications- To promote the growth of financial management behavior, the ceramic craft industry must maximize its financial knowledge, attitude, and personality.
Originality/value-The study of financial management behavior in Micro, Small, and Medium Enterprises, especially ceramic crafts, is still quite limited. In addition, no previous research has discussed financial management behavior by adding personality variables as one of the influencing factors.
References
Abbas, D., Ali, M., Nohong, M., & Sobarsyah, M. (2020). Predicting the financial behavior of the religious organization board in Indonesia. Journal of Asian Finance, Economics and Business, 7(12). https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.1159
Al-Hashimy, H. N. H., Alabdullah, T. T. Y., Ahmed, E. R., Asmar, M., Nor, M. I., & Jamal, K. A. M. (2022). The impact of financial management elements and behavioral intention on the financial performance. International Journal of Scientific and Management Research, 05(12). https://doi.org/10.37502/ijsmr.2022.51210
Ali, M., Qamar, J., Asif, M., Khemta, N., & Jamil, H. (2016). How knowledge and financial self-efficacy moderate the relationship between money attitudes and personal financial management behavior. European Online Journal of Natural and Social Sciences, 5(2).
Alshebami, A. S., & Aldhyani, T. H. H. (2022). The interplay of social influence, financial literacy, and saving behaviour among Saudi youth and the moderating effect of self-control. Sustainability (Switzerland), 14(14). https://doi.org/10.3390/su14148780
Azib, A., Harahap, D. A., & Amanah, D. (2022). Do financial literacy and financial attitudes play a role in influencing financial management behavior?. International Journal of Early Childhood Special Education, 14(3). https://doi.org/10.9756/INT-JECSE/V14I3.194
Bapat, D. (2019). Exploring antecedents to financial management behavior for young adults. Journal of Financial Counseling and Planning, 30(1). https://doi.org/10.1891/1052-3073.30.1.44
Bapat, D. (2020). Antecedents to responsible financial management behavior among young adults: Moderating role of financial risk tolerance. International Journal of Bank Marketing, 38(5). https://doi.org/10.1108/IJBM-10-2019-0356
Bhushan, P., & Medury, Y. (2014). An empirical analysis of inter-linkages between financial attitudes, financial behaviour and financial knowledge of salaried individuals. Indian Journal of Commerce & Management Studies, 5(3).
Chuah, S. C., Kamaruddin, J. N., & Singh, J. S. K. (2020). Factors affecting financial management behaviour among university students. Malaysian Journal of Consumer and Family Economics, 25.
Cohen, M., & Nelson, C. (2011). Financial literacy: A step for clients towards financial inclusion. Global Microcredit Summit, 14(17), 1-34.
Coskun, A., & Dalziel, N. (2020). Research in business & social science mediation effect of financial attitude on financial knowledge and financial behavior: The case of university students. International Journal of Research In Business and Social Science, 9(2).
Davey, J., & George, C. (2010). Personality and finance: The effects of personality on financial attitudes and behaviour. International Journal of Interdisciplinary Social Sciences, 5(9). https://doi.org/10.18848/1833-1882/cgp/v05i09/51887
Donnelly, G., Ksendzova, M., & Howell, R. T. (2013). Sadness, identity, and plastic in over-shopping: The interplay of materialism, poor credit management, and emotional buying motives in predicting compulsive buying. Journal of Economic Psychology, 39. https://doi.org/10.1016/j.joep.2013.07.006
Ebitu, E. T., Basil, G., & Ufot, J. A. (2016). An appraisal of nigeria’s micro, small and medium enterprises (MSMEs): Growth, challenges and prospects. International Journal of Small Business and Entrepreneurship Research, 4(4).
Farooq, S. H., Shah, S. Z. A., & Rasheed, S. (2021). Impact of financial attitude, financial literacy and parental financial socialization on prudent financial management practices: A moderating effect of financial well-being among the youth of Pakistan. Abasyn Journal of Social Sciences, 14(1). https://doi.org/10.34091/ajss.14.1.02
Garman, E. T. (1999). Personal finance. Houghton Mifflin Harcourt.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Universitas Diponegoro.
Goyal, K., Kumar, S., Xiao, J. J., & Colombage, S. (2022). The psychological antecedents of personal financial management behavior: A meta-analysis. International Journal of Bank Marketing, 40(7). https://doi.org/10.1108/IJBM-02-2022-0088
Grable, J. E., Archuleta, K. L., Ford, M. R., Kruger, M., Gale, J., & Goetz, J. (2020). The moderating effect of generalized anxiety and financial knowledge on financial management behavior. Contemporary Family Therapy, 42(1). https://doi.org/10.1007/s10591-019-09520-x
Grable, J. E., Park, J. Y., & Joo, S. H. (2009). Explaining financial management behavior for Koreans living in the United States. Journal of Consumer Affairs, 43(1). https://doi.org/10.1111/j.1745-6606.2008.01128.x
Hathaway, I., & Khatiwada, S. (2011). Do financial education programs work?. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1118485
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Jorgensen, B. L., Rappleyea, D. L., Schweichler, J. T., Fang, X., & Moran, M. E. (2017). The financial behavior of emerging adults: A family financial socialization approach. Journal of Family and Economic Issues, 38(1). https://doi.org/10.1007/s10834-015-9481-0
Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A strategic management approach. Emerging Markets Journal, 5(1). https://doi.org/10.5195/emaj.2015.67
Kautsar, A., & Asandimitra, N. (2019). Financial knowledge as youth preneur success factor. Journal of Social and Development Sciences, 10(2(S)). https://doi.org/10.22610/jsds.v10i2(s).2906
Madurapperuma, M. W. (2016). Accounting record keeping practices in small and medium sized enterprise’s (SME’s) in Sri Lanka. Journal of Finance and Accounting, 4(4). https://doi.org/10.11648/j.jfa.20160404.14
Marron, D. (2014). Informed, educated and more confident: Financial capability and the problematization of personal finance consumption. Consumption Markets and Culture, 17(5). https://doi.org/10.1080/10253866.2013.849590
Matz, S. C., Gladstone, J. J., & Farrokhnia, R. A. (2023). Leveraging psychological fit to encourage saving behavior. American Psychologist. https://doi.org/10.1037/amp0001128
Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment management and personality type. Financial Services Review, 17.
Moffitt, T. E., Arseneault, L., Belsky, D., Dickson, N., Hancox, R. J., Harrington, H. L., Houts, R., Poulton, R., Roberts, B. W., Ross, S., Sears, M. R., Thomson, W. M., & Caspi, A. (2011). A gradient of childhood self-control predicts health, wealth, and public safety. In Proceedings of the National Academy of Sciences of the United States of America, 108(7). https://doi.org/10.1073/pnas.1010076108
Moko, W., Sudiro, A., & Kurniasari, I. (2022). The effect of financial knowledge, financial attitude, and personality on financial management behavior. International Journal of Research in Business and Social Science, 11(9), 184–192. https://doi.org/10.20525/ijrbs.v11i9.2210
Mutlu, U., & Ozer, G. (2019). The effects of personality traits on financial behaviour. Pressacademia, 8(3). https://doi.org/10.17261/pressacademia.2019.1122
Nofsinger, J. R. (2016). The psychology of investing. The Psychology of Investing. https://doi.org/10.4324/9781315506579
Nwugballa, E. A. A.-, Elom, M. E., & Onyeizugbe, C. U. (2016). Evaluating the relevance of entrepreneurial orientation to the performance of micro, small and medium enterprises in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3). https://doi.org/10.6007/ijarafms/v6-i3/2257
Perry, V. G., & Morris, M. D. (2005). Who is in control? The role of self‐oerception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299–313. https://doi.org/10.1111/j.1745-6606.2005.00016.x
Pinjisakikool, T. (2018). The influence of personality traits on households’ financial risk tolerance and financial behaviour. Journal of Interdisciplinary Economics, 30(1). https://doi.org/10.1177/0260107917731034
Rajna, A., & Anthony, P. (2011). Knowledge, attitude, practice and satisfaction on personal financial management among the medical practitioners in the public and private medical services in Malaysia. (Doctoral dissertation, Universiti Kebangsaan Malaysia).
Robb, C. A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1).
Sabri, M. F., & Juen, T. T. (2014). The influence of financial literacy, saving behaviour, and financial management on retirement confidence among women working in the Malaysian public sector. Asian Social Science, 10(14). https://doi.org/10.5539/ass.v10n14p40
Sekaran, U., & Bougie, R. (2009). Research method for business textbook: A skill building approach. John Wiley & Sons Ltd.
Shelly, R., Sharma, T., & Bawa, S. S. (2020). Role of micro, small and medium enterprises in Indian economy. International Journal of Economics and Financial Issues, 10(5). https://doi.org/10.32479/ijefi.10459
Snyder, M., & Ickes, W. (1985). Personality and Social Behavior. Handbook of Social Psychology, 2(3), 883–947.
Tang, N., Baker, A., & Peter, P. C. (2015). Investigating the disconnect between financial knowledge and behavior: The role of parental influence and psychological characteristics in responsible financial behaviors among young adults. Journal of Consumer Affairs, 49(2). https://doi.org/10.1111/joca.12069
Topa, G., Hernández-Solís, M., & Zappalà, S. (2018). Financial management behavior among young adults: The role of need for cognitive closure in a three-wave moderated mediation model. Frontiers in Psychology, 9. https://doi.org/10.3389/fpsyg.2018.02419
Vörös, Z., Szabó, Z., Kehl, D., Kovács, O. B., Papp, T., & Schepp, Z. (2021). The forms of financial literacy overconfidence and their role in financial well-being. International Journal of Consumer Studies, 45(6). https://doi.org/10.1111/ijcs.12734
Younas, W., Javed, T., Kalimuthu, K. R., Farooq, M., Khalil-ur-Rehman, F., & Raju, V. (2019). Impact of self-control, financial literacy and financial behavior on financial well-being. The Journal of Social Sciences Research, 5(1), 211-218.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Journal of Management and Business Insight
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
