Abstract

This study aims to analyze the impact of Financial Knowledge on Financial Decision-Making, with Risk Perception as an intervening variable among Small and Medium Enterprise (SME) owners in Lombok Island. The research adopts a quantitative approach with explanatory research design. The population includes all SMEs in Lombok, with a sample of 35 SMEs involved in the pottery craft industry that have engaged in export activities, selected using judgment sampling. The respondents are the owners of these SMEs, who participated through questionnaires. Data were analyzed using Generalized Structured Component Analysis (GSCA). The findings reveal that Risk Perception does not mediate the relationship between Financial Knowledge and Financial Decision-Making. However, Financial Knowledge has a significant negative effect on Risk Perception, and Risk Perception has a significant negative effect on Financial Decision-Making. These results are influenced by the characteristics of the respondents, who are mostly in their productive age, predominantly male, with education levels ranging from high school to university, and have been in business for over 15 years

Full Text

Published Version

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.