Untapping the Determinants of Islamic Financial Behaviour among Young Generations

The main purpose of this study was to examine the effect of Islamic financial literacy, religiosity, bankreputation, and risk attitude on the adoption of Islamic banking. Examine the mediating role of the adoption ofIslamic banking on the influence of Islamic financial literacy, religiosity, bank reputation, and risk attitude onfinancial satisfaction. The statistical analysis model used mediation regression. The research population was1.033.264 and the sample was 336 Bank Syariah Indonesia customers in the Jogjakarta region. The samplingtechnique used was random sampling, a data collection method using a questionnaire. The mediationregression analysis tool uses SEM-PLS. The results show that: Islamic financial literacy has a positive effecton the adoption of Islamic banking products. Bank reputation has a positive effect on the adoption of Islamicbanking. Religiosity has a positive effect adoption of Islamic banking. The risk attitude affects the adoption ofIslamic banking. Adoption of Islamic banking mediates the effect of Islamic financial literacy, bankreputation, religiosity, and risk attitude on financial satisfaction. The results of the study add to the literatureand the results of empirical studies of Islamic financial management. Provide recommendations for IslamicBank policies, namely: policies to increase Islamic financial literacy, bank reputation, risk attitude, adoption ofIslamic banking, and financial satisfaction to improve the welfare and performance of the bank.

Purpose: This paper aims to analyze the influence of overconfidence bias and herding bias on investment decision making and the moderating role of financial literacy and risk attitude on overconfidence bias and herding bias on investment decision making in the Colombo Stock Market. Design/Methodology/Approach: This paper collects data from a structured questionnaire survey carried out among 110 individual investors in the Colombo stock market. This paper used a multiple regression method to analyze the influence of overconfidence bias and herding bias on investment decisions with financial literacy and risk attitude as moderating variables. Findings: Overconfidence bias has a significant influence on investment decisions. Results do not indicate that herding bias significantly influence investment decisions. Financial literacy significantly moderates the relationship between overconfidence in investment decisions. However, financial literacy does not significantly moderate the relationship between herding bias in investment decisions. Financial literacy and risk attitude do not significantly moderate the relationship between herding bias in investment decisions. Implications: The findings of this paper would help to understand the influence of behavioral bias on investment decisions of individual investors in Colombo stock market. Originality/Value: The research described in this paper study the moderating role of financial literacy and risk attitude on overconfidence bias and herding bias in making investment decisions (in Colombo Stock Exchange).

Purpose — This research aims to examine the effect of family communication patterns on Islamic financial literacy (IFL) and risk tolerance of Generation Z (Gen Z) in Indonesia. It also examines the link between IFL, risk tolerance and financial behaviour. Finally, it highlights the moderating impact of IFL on the link between risk tolerance and financial behaviour. Design/Methodology/Approach — This study used Muslim members of Gen Z in West Sumatra Indonesia who were born between 1995 and 2001 as the population. This study collected 668 responses in two months. After some preliminary tests, such as missing value and normality test, it employed 571 usable responses as the sample. Purposive sampling was conducted and variance-based structural equation model-partial least square (SEM-PLS) was employed as the method for data analysis. Findings — The results show that family communication patterns, both conformity and conversation orientation, positively and significantly influence IFL and risk tolerance. IFL has a positive and significant impact on risk tolerance and financial behaviour. Surprisingly, IFL also moderates the link between risk tolerance and financial behaviour positively and significantly. Finally, risk tolerance significantly affects financial behaviour. Originality/Value — This research makes three theoretical contributions. First, it provides a better understanding and a more complex model of the relationship between IFL with its antecedents such as family communication patterns and also with its consequences, including risk tolerance and financial behaviour. Second, it reveals that IFL affects Gen Z’s financial behaviour significantly—an aspect which is neglected in previous research. Third, it has expanded the scope of prior studies by addressing IFL as a moderator of the link between risk tolerance and Gen Z’s financial behaviour. Research Limitations/Implications — Even though this study has carried out Harman’s single-factor analysis to anticipate a common method bias, it faces the common method bias problem due to the cross-sectional nature of the study. Secondly, the study focuses on Gen Z, which means that most of the respondents are students and their financial behaviour is still affected by the decisions of their parents. Practical Implications — This study has some contributions for decision makers such as Otoritas Jasa Kewangan (Financial Services Authority) and management of Islamic banks and financial institutions. First, to increase Gen Z’s IFL, the decision makers have to educate the parents using the two-way communication orientation method. Second, the financial behaviour of Gen Z is influenced by financial literacy and risk tolerance; hence, decision makers such as the government and society have to educate Gen Z on IFL and inform them about financial risks which influence their risk tolerance when conducting financial activities. Article Classification — Research paper

This study aims to examine the role of gender in moderating the influence between financial knowledge, parental financial socialization, and FoMO on the financial behavior of Gen Z students in Indonesia.This research method uses a quantitative approach with a descriptive design that focuses on the statistical analysis of numerical data. The population of this study was students from the 2020 and 2021 intakes who were registered in the economics study program of the Faculty of Teacher Training and Education at Sebelas Maret University. The sampling technique employed combines probability sampling and proportionate random sampling. A total of 224 students participated in data collection, which involved distributing a Google Forms link and the questionnaire via messaging applications (such as WhatsApp) and social network chat features. IBM SPSS 26 software was used to analyze the data using Moderated Regression Analysis (MRA). The study's findings indicate financial behavior is influenced by financial knowledge, parental financial socialization, and FoMO (p<0.05). Additionally, while financial knowledge and FoMO are not moderated by gender (p>0.05), parental financial socialization's effect on financial behavior is moderated by gender (p<0.05). The implications of this study highlight the importance of integrating financial literacy into university education, using a more practical and technology-based approach. Lecturers are encouraged to design learning that not only focuses on theory but also involves financial simulations and technology to help students better understand financial concepts interactively. In addition, universities should offer training programs or financial literacy workshops to equip students with better financial skills.

Financial literacy is a vital source of knowledge in making financial decisions in influencing SME sustainability. This study aims to analyze the direct and indirect effects of financial literacy, financial access, and financial risk attitudes on the sustainability of SMEs. This study uses a quantitative survey approach. Data obtained through questionnaires, observations, interviews, and documentation. The results of the study show that good financial literacy skills will facilitate SMEs in accessing finance and predicting business financial risks, being able to determine attitudes so that they have an impact on increasing the sustainability of SMEs. Furthermore, financial access literacy and financial risk attitudes of SMEs owners have a direct effect on increasing SME sustainability directly by 57.3%, and the indirect effect of financial literacy on SMEs sustainability through financial risk attitudes is 20.2%. This study recommends financial literacy based on the effectiveness and efficiency of utilizing access to capital from outside the company coupled with a reduction in the financial risks faced by SMEs. The formulation of economic development policies in order to encourage the sustainability of SMEs businesses in Wajo Regency, South Sulawesi, Indonesia.

Small and medium-sized enterprises (SMEs) contribute significantly to the economic growth of emerging economies. However, SMEs have difficulty maintaining their performance. This paper examines the impact of financial literacy on the sustainability of SMEs with the roles of access to finance, financial risk attitude, and organizational risk-taking tolerance as mediators. This study concentrated on the Indonesian market and used questionnaires to collect data from the owners or chief financial officers of SMEs. The extent of the correlations was examined using partial least squares structural equation modeling. It was found that financial literacy, financial risk attitude, and organizational risk-taking tolerance are significant antecedents of SME sustainability. Access to finance, on the other hand, was not a factor in SME sustainability. A financial risk mentality was also revealed to have a substantial influence on the association between financial literacy and SME viability in the study. Furthermore, the relationship between financial literacy and SME viability was found to be mediated by organizational risk-taking tolerance. This study has significant relevance for SMEs, as it confirms that financial literacy is crucial for continued success. SMEs with proper financial literacy will have a superior attitude to financial risk and organizational risk-taking tolerance, ensuring their sustainability. Future studies can investigate SME sustainability in other emerging economies and compare their performance and sustainability.

Purpose - This paper aims to evaluate the existing Islamic financial and business literacy for people with disabilities and propose a job and business recommendation to address different characteristics of the communities. Methodology - Using the ethnography approach, this research focuses on people with disabilities in their diverse backgrounds of social, economic, and cultural settings. It includes participant observations and interviews accompanied by their family members or social care providers. Findings - The finding shows that the existing Islamic financial and business literacy for people with disabilities is still limited due to social gaps. There are tensions that exist in the dedifferentiation method whether they remain to be hopeless to earn more literacy and do their business independently. It is understood that the dedifferentiation has underestimated the people's experience in Islamic financial and business literacy with their types of disabilities. Practical Implication - The contribution of this paper is to propose a policy recommendation regarding professional support to ensure sustainable benefits from Islamic financial literacy, Islamic business, and job seeking that may improve the well-being of the communities. Originality - This paper details the only institution that has implemented an Islamic approach to financial literacy, business, and job seeking for people with disabilities through 25 events. These events included 12 on Islamic financial literacy, eight on Islamic business, and eight on job seeking, totaling 95 hours (89 hours offline and six hours online). The initiative successfully accommodated 4,540 participants from all provinces in Indonesia (3,410 offline and 1,130 online). Keywords: Literacy, Islamic Finance, Islamic Business, People with Disabilities, Ethnography

Individuals, households, and business entities that have met the criteria as businesses have SMEs as productive businesses. Micro, small, and medium enterprises (SMEs) significantly contribute to a region's economic development. Financial literacy, access to finance, and financial risk attitude are important in improving business performance. This study aimed to examine the effect of financial literacy on access to finance, financial risk attitude, and culinary business performance. Test mediating roles access of finance and financial risk attitude on the impact of financial literacy on the performance of the MSME culinary business in Yogyakarta.
 Statistical analysis model using mediation regression. The research sample is the Actor Culinary business SMEs in Yogyakarta. Sampling technique with purposive sampling. Respondents were 135 SME Culinary Entrepreneurs. Mediation regression analysis tool using PLS. The research results show that: 1) Financial literacy positively affects culinary business performance. 2) Financial literacy has a positive effect on access to finance. 3) Access to finance mediates the effect of financial literacy on culinary business performance. 4) Financial literacy has a positive effect on financial risk attitudes. 5) Financial risk attitudes mediate the effect of financial literacy on culinary business performance.
 The research results recommend the importance of increasing financial literacy and ease of access to finance. Analyzing risk is needed for SME culinary business actors to improve business performance and sustainability.

This study aims to analyze and understand the relationship between financial knowledge, financial behavior, and firm performance. The study was conducted on 120 food and beverage SMEs in Malang. The sampling technique used was purposive sampling with several criteria. The sample size was determined by multiplying 12 research indicators by 10, following the approach of JR. et al. (2022). The data analysis in this study used SEM-PLS, assisted by the SmartPLS 3.3.3 software. The results indicate that financial behavior and financial risk attitude significantly affect firm performance, while the relationship between financial knowledge and firm performance yielded different results. The testing shows that financial knowledge does not significantly affect firm performance. Furthermore, these findings suggest that the level of financial knowledge among SME actors in Malang does not sufficiently support the improvement of SME firm performance. The low level of financial knowledge also leads SME actors to be more cautious in making financial and business decisions, as they can better assess the extent of business and financial risks they may face. Therefore, further training is needed to enhance the financial knowledge and capabilities of SME actors, particularly in the field of finance.

Financial management behavior denotes an individual's ability to strategize, allocate, oversee, control, identify, and save resources in everyday life. This behavior is influenced by several factors, including financial literacy, financial disposition, financial self-efficacy, and parental financial socialization. This study aims to examine the factors influencing financial management behavior, specifically among foreign students as they endeavor to handle their finances independently. The study population consists of State University students living in Surabaya City who have received financial education. This study had 120 respondents chosen via purposive sampling, with data gathered using questionnaires and processed using SmartPLS. The results demonstrated that financial knowledge, financial attitude, and financial self-efficacy affect students' financial management behaviors; however, parental financial socialization did not consistently have a direct impact on these behaviors. Keywords: Financial knowledge, Financial attitude, Financial self efficacy, Parental financial socialization, Financial management behavior.

The purpose of this study is to examine the influence of financial risk attitude (FRA) on objective-oriented investment behavior (OOIB) of investors, particularly in underdeveloped countries, by introducing two novel constructs, namely financial satisfaction (FS) as a mediating variable and financial self-efficacy (FSE) as a moderating variable. A cross-sectional and a quantitative approach was used to collect 300 practical responses from active investors through an online questionnaire and a face-to-face interview. To test the hypothesized relationship between the constructed variables, SPSS and Smart PSL were used. According to the analysis, FRA positively impacts OOIB among Pakistani investors. Further, the moderating effect of FSE was found to be significantly positive in the relationship between FRA and FS. Additionally, FS mediates the relationship between FRA and OOIB. Accordingly, a FRA predicts FS and objective-driven investing behavior. This research will be helpful for institutional investors in providing financial services. The study is the first attempt in Pakistan to introduce FS as a mediating construct between FRA and OOIB. Furthermore, this study provides a basis for examining the relationship between FRA and FS as a moderating variable.

Financial Inclusion is one of the important parts of the financial system that has been the subject of many researches, especially the world bank. Inclusion in the financial system is less in developing and less developed countries than in developed countries. Although there are many reasons for this, one of the important reasons is the low level of financial literacy. Islamic Financial Literacy is a concept that requires knowledge about the Islamic financial system and can contribute positively to financial inclusion. Various researches have been conducted on this concept, which differs from financial literacy in certain aspects. This research has several goals. First, in Turkey it aimed to determine students' reading of Islamic financial literacy levels in various university faculties. Secondly, it is aimed to investigate the relationship between Islamic financial literacy level and financial attitude and behavior. Third, the impact of Islamic financial literacy on the entrepreneurial trend has been predicted. Finally, determining whether the level of Islamic financial literacy differs according to various demographic factors, especially the faculty variable, whether it is taking finance, or Islamic finance courses, is among the sub-objectives of the study. The universe of the research consists of students studying in the third and fourth grades of the faculties of business, engineering and theology at Düzce University. Sampling was done in the research and snowball sampling method was preferred. 513 questionnaire data obtained within the scope of the research were analyzed with SPSS 25 package program. As a result of the research, Islamic Financial Knowledge levels and Islamic Financial literacy were gauged. It was determined that the Islamic Financial Knowledge levels and Literacy were quiet low among students. Accordingly, the results of the study indicated that students taking Islamic finance courses had high Islamic finance literacy. In addition, it was concluded that the Islamic Financial Knowledge Level and the Islamic Financial Literacy Level varied significantly according to the faculty, gender and family income level. Lastly, looking attractiveness did not put a difference on Islamic financial knowledge, it provided a statistically significant relationship between those looking attractive to entrepreneurship and those not looking attractive to entrepreneur with respect to Islamic financial literacy level.

PurposeThis study aims to examine the association between parental financial socialization and life satisfaction and the mediating roles of desirable financial behavior in the association between parental financial socialization and life satisfaction of college students in India. Furthermore, this research also explores the moderating effects of parents’ socioeconomic characteristics (education, income and professions) in the association between parental financial socialization and desirable financial behavior.Design/methodology/approachA sample of 1,161 college students was collected in India. Parental financial socialization is measured by direct parental teaching in this study. The first stage moderated mediation model is performed to examine the direct and indirect effects through financial behavior of parental financial on life satisfaction as well as the moderating role of parents’ socioeconomic characteristics.FindingsThe mediation analysis shows that parental direct teaching is positively associated with young adults’ financial behavior, which in turn contributes to their life satisfaction. Furthermore, this study also finds negative moderation effects of parental education on the association between parental direct teaching and children's financial behavior.Originality/valueThis study extends the knowledge of family financial socialization in the context of India. Moreover, it examines the mediation roles of desirable financial behavior in the association between parental direct teaching and children’s life satisfaction. Furthermore, this paper explores the potential influence of parents’ education, income and professions on children’s financial behavior and life satisfaction.

Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

MSMEs play a vital role in global economic development, as well as being the key to most businesses and important contributors to job creation and economic development. However, amidst the uncertain business and economic situation, most MSMEs have to struggle to maintain their business performance. So efforts are needed from various parties to improve business performance in MSMEs. This research aims to test and analyze the influence of financial literacy levels on business performance, with financial access and financial risk attitudes as mediating variables. Sampling in this research used a purposive sampling technique among tofu processing industry players in Kediri City. The sample was determined using the Slovin method and a sample of 400 respondents was obtained. The method used in this research uses Structural Equation Model (SEM) Partial Least Square (PLS) analysis through the SmartPLS data processing program version 3. The results of this research show that all hypotheses are accepted. Financial literacy, access to finance and financial risk attitudes have a positive and significant effect on business performance. Financial access is able to mediate the relationship between financial literacy and financial risk attitudes, and financial risk attitudes are also able to mediate the relationship between financial literacy and business performance in the Kediri City tofu processing industry.