Financial Self-efficacy Research Articles

Pengaruh Financial Literacy dan Uang Saku terhadap Perilaku Pengelolaan Keuangan dengan Financial Self Efficacy sebagai Variabel Moderating

The purpose of this research to determine whether financial self-efficacy can moderate the influence of financial literacy and pocket money on the financial management behavior of class XI accounting and finance students at SMKN 1 Surabaya 2023/2024 academic year. Using descriptive research with quantitative approach. The primary data collection technique uses questionnaire on the pocket money, financial self-efficacy and financial management behavior variables, while the financial literacy variable uses multiple choice test questions according to PISA standards adapted characteristics of Indonesian students. Data processing and analysis techniques use SEM-PLS analysis. The research results show that financial literacy influences financial management behavior, pocket money influences financial management behavior, financial self-efficacy can moderate the influence of financial literacy on financial management behavior, and financial self-efficacy cannot moderate the influence of pocket money on financial management behavior of class XI AKL SMKN 1 Surabaya. In this research, financial self-efficacy acts as quasi moderator.

A model linking financial well-being and burnout in a South African engineering organisation

Orientation: This study investigates a model linking financial well-being (FWB) and burnout of employees in a South African engineering organisation.Research purpose: To investigate how personal financial resources and burnout are interrelated, focussing on the roles of satisfaction with remuneration (SWR), personal financial efficacy (PFE), and financial interference (FI).Motivation for the study: This model could help management, human resources, and employees understand the complex dynamics of these phenomena and reduce burnout by implementing targeted interventions.Research approach/design and method: Purposive sampling (N = 515) was used. Structural equation modelling (SEM) with confirmatory factor analysis (CFA) and structural paths were employed.Main findings: The study found that SWR positively impacts positive personal financial well-being (PPFW) and negatively impacts negative personal financial well-being (NPFW). Personal financial efficacy positively affects PPFW and negatively affects NPFW. However, SWR did not significantly impact FI. Negative personal financial well-being strongly contributed to FI, which in turn increased burnout. Contrary to expectations, PPFW did not significantly reduce FI. Additionally, SWR indirectly reduced burnout through NPFW and FI in sequence.Practical/managerial implications: Organisations should ensure competitive and equitable reward and remuneration strategies to enhance employees’ financial well-being and reduce burnout. Financial self-efficacy can be improved through interventions focussing on PFE and integrated financial well-being programmes to mitigate the risk of burnout and its demands on human and organisational resources.Contribution/value-add: This study contributes to the limited research on financial well-being and burnout, highlighting the importance of fair remuneration and personal financial resources in promoting employee well-being and reducing burnout.

Financial literacy and its impact on life satisfaction in rural households: a mediated approach via financial self-efficacy

Purpose The study aims to explore the relationship between financial literacy and general life satisfaction. The study further investigates the mediating role of financial self-efficacy in this relationship in the context of Indian rural households. Design/methodology/approach Households belonging to the rural area of the Koraput district of Odisha were taken as the sample unit of this study. A structured questionnaire was framed to collect primary data using multi-stage and convenience sampling; 299 responses were received. Data analyses were performed using partial least square-structure equation modelling through SmartPLS 4.0. Findings The results of the study connoted that financial literacy has a noteworthy impact on the overall life satisfaction of households with lower incomes, both directly and indirectly. Moreover, the study identified financial self-efficacy as a significant complementary partial mediator in the relationship between financial literacy and overall satisfaction with life. Practical implications The findings of the study can be used by financial regulatory authorities and policymakers to seed the financial concepts’ understanding among the rural community to enhance their financial status and thereby overall satisfaction with life. Originality/value To the best of the authors’ knowledge, the exploration study of life satisfaction of rural households is yet to be discovered in the context of previous research frameworks despite rural households being an intricate part of the Indian economy. The study adds to the existing literature on life satisfaction, necessitating financial literacy expertise in rural households for achieving financial self-efficacy.

Utilizing Financial Technology, Financial Literacy, and Financial Self-Efficacy in Achieving Generation Zoomer’s Financial Inclusion

Utilizing Financial Technology, Financial Literacy, and Financial Self-Efficacy in Achieving Generation Zoomer’s Financial Inclusion

Factors influencing the relationship between intention and behavior of using Fintech: Empirical evidence in Vietnam

This study focuses on evaluating factors that impact the relationship between intention and behavior of using fintech. Data in the study were collected from 351 observations during the period from September 2023 to December 2023, using linear structural modeling (SEM) to test hypotheses, including the relationship of all potential variables. The results show that Financial Knowledge (FL) is a moderating factor in the relationship between Intention (IT) and Fintech Usage Behavior (UFB), and Financial Self-Efficacy Belief (FSE) is Mediating factor in the relationship between Financial Education (FL) and Fintech Usage Behavior (UFB). In addition, the moderating role of Facilitating Conditions (FC) in the relationship between Intention to Use (IT) and Fintech Usage Behavior (UFB) is not statistically significant. We give some recommendations such as minimizing cybersecurity risks or providing financial literacy training for users.

The Influence of Financial Self-efficacy on Financial Inclusion in Tanzania

This study investigates how Corporate Social Responsibility (CSR) information is communicated on the websites of tourism firms in Tanzania. Specifically, the study assesses the quantity, prominence and style of presentation of CSR information on the websites. Data was collected through a content analysis of the websites of the member firms of the Hotel Association of Tanzania (HAT) and Tanzania Association of Tour Operators (TATO). The findings reveal that about 50% of tourism firms disclose their CSR information on their websites. Also, about 57% of tourism firms disclose a minimal amount of CSR information (1 to 2 pages), 31% place their CSR information prominently on the homepage, 54% present their CSR information using textual format only and 38% of websites allow interaction with stakeholders for inquiries and feedbacks. Moreover, the study highlights that hotels are more effective in utilizing websites for CSR communication than their tour operators, suggesting that firm size and industry subsectors influence variations in CSR communication practices. The findings imply that tourism firms in Tanzania recognize the crucial role of websites in corporate communication including CSR communication. However, tourism firms need to improve their CSR web communication by enhancing the volume, prominence, multimedia-rich content and interactivity of web-based CSR communications. Further research focusing on specific subsectors and exploring strategies for enhancing CSR communication on tourism websites could provide valuable insights.

Project Risk Management Strategies, Project Quality and Project Success - Moderating Role of Financial Self-Efficacy

Project Risk Management Strategies, Project Quality and Project Success - Moderating Role of Financial Self-Efficacy

Student Financial Well-being: Personal Factors and Financial Behavior as Antecedents of Financial Well-being

AbstractThe information age has the potential for a negative impact on materialism and a positive impact on ways of managing student finances. This can affect the financial well-being of students. This study aims to determine the antecedents of financial well-being in college students in terms of personal and behavioral characteristics. Personal characteristics and behavior are in terms of materialism, financial behavior, and financial self-efficacy variables. These variables are measured through a questionnaire instrument developed from previous research. The results of this study found that materialism and financial behavior had a negative and significant effect on financial well-being, but financial self-efficacy was not proven to have a significant effect on financial well-being. The results of this study provide practical implications in improving student financial well-being, such as through financial literacy to control student materialism and financial behavior. Keywords:Materialism, Financial Behavior, Financial Self-Efficacy, Financial Well-Being.

The role of financial literacy, digital literacy, and financial self-efficacy in FinTech adoption

The primary aim of this study is to delve into the factors influencing individuals’ readiness to embrace financial technology (FinTech) services in Bangladesh. Specifically, the study focused on Bangladeshi fintech consumer’s knowledge about contemporary digital financial tools, such as mobile-based payment service apps. Data collection was carried out using a survey questionnaire tailored to the Bangladeshi context. Participants were invited to participate in the survey, and their responses were gathered upon their consent. A five-point Likert scale, ranging from ‘1’ for ‘Strongly Disagree’ to ‘5’ for ‘Strongly Agree,’ was employed to gauge the questionnaire items. The final sample size was 450 respondents. To assess the hypotheses, a 5% significance level was employed, with data analysis conducted using SPSS software. The findings underscore a positive and statistically significant impact of financial literacy, digital literacy, and financial self-efficacy on the adoption of FinTech services in Bangladesh. Collectively, these variables elucidate 48.20% of the variance (R2=0.482) in predicting individuals’ adoption behavior of FinTech. Financial self-efficacy (β = 0.574; t-value = 8.394) has the highest effect on FinTech adoption compared to the other two factors. Additionally, a substantial correlation coefficient (r=0.634) is present between digital literacy and FinTech adoption. This study contributes to the extant literature on FinTech services by providing valuable insights that enhance scholars’ understanding of the emerging financial technologies’ significance and their predominant impacts within the Bangladeshi FinTech ecosystem. These findings hold implications for policymakers, financial institutions, and stakeholders seeking to promote FinTech adoption and foster financial inclusion in Bangladesh.

Retraction notice: How perceived information transparency and psychological attitude impact on the financial well-being: mediating role of financial self-efficacy

Retraction notice: How perceived information transparency and psychological attitude impact on the financial well-being: mediating role of financial self-efficacy

Retirement Planning: A Moderated Mediation Model of Cognitive Beliefs, Retirement Planning Attitude, and Money Availability

Retirement planning has been extensively studied in developed countries; however, it received scant scholarly attention in developing nations. Thus, this study examines the role of cognitive factors in retirement planning intentions in the context of a developing country, focusing on financial risk tolerance and self-efficacy within the cognitive appraisal theory framework, considering the mediating role of retirement planning attitudes and the moderating impact of financial resource availability. A survey was conducted in Dhaka, Bangladesh, with 301 valid responses analyzed using a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. Findings reveal that retirement planning attitudes mediate the relationship between cognitive factors and retirement planning intentions. Interestingly, risk tolerance negatively impacts retirement planning intentions through attitudes, while financial self-efficacy shows a positive influence. Furthermore, the availability of financial resources moderates these relationships, indicating that retirement planning attitudes significantly influence intentions when financial resource availability is low. This research contributes to the understanding of retirement planning in a developing country context, highlighting the importance of cognitive factors and financial resources. It suggests that tailored retirement planning strategies should consider individual financial conditions and cognitive beliefs. The insights are valuable for policymakers and financial advisors, particularly in developing nations.

Socioeconomic Influence on Physical Therapist Student Financial Literacy, Self-Efficacy, Stress, and Anxiety.

Doctor of Physical Therapy (DPT) students have considerable educational debt upon graduation with suspected low levels of financial literacy, limited financial self-efficacy, and elevated stress and anxiety. The purpose of this study was to determine the relationships between financial knowledge, financial anxiety, financial stress, and financial self-efficacy with socioeconomic determinants in DPT students. Five hundred seventy-eight DPT students, surveyed through a cross-sectional sample of convenience. Participants responded to a 40-item demographic questionnaire providing a self-assessment of their current financial literacy, financial self-efficacy, financial anxiety, financial stress, and level of general social support. Pairwise correlations were used to determine the relationship between independent variables and composite scores on self-assessment tools. Multiple regression analyses were conducted to predict financial knowledge, self-efficacy, anxiety, stress, and social support by socioeconomic indicators and educational debt status. While there was a moderate, positive association between presence of debt and financial self-efficacy and financial anxiety for all students (r = .55), there was no statistically significant difference in financial knowledge, self-efficacy, anxiety, stress, or social support for students based on race/ethnicity. There was a negligible to weak correlation between financial knowledge, financial self-efficacy, and level of financial anxiety based on age, race/ethnicity, gender, socioeconomic background, debt load, risk tolerance, and retirement reflection. When subjected to multiple regression analysis, the level of education-related debt could explain a large proportion of the variance in multiple measures, including financial self-efficacy, anxiety, and stress. Economic background explained a large proportion of variance in the general social support students felt. We found a strong, positive correlation between the presence of debt and financial stress and anxiety for all DPT student respondents. While there is no difference in financial literacy and self-efficacy based on race and ethnic background, there is a moderate correlation between self-efficacy and financial anxiety for all students. Education on strategies to manage debt load may reduce both factors.

Unlocking Financial Inclusion: The Effect of Perceived Information Transparency, Financial Attitude and Financial Self-Efficacy

The study investigates the connection between financial attitude, perceived information transparency, and financial inclusion. Financial self-efficacy will act as a mediator. The study tries to shed light on these connections so that policymakers, financial institutions, and other interested parties can devise better ways to promote financial inclusion and give everyone the tools they need to fully participate in the financial system. This study employed a quantitative research strategy. The primary tool for collecting data was a self-administered questionnaire sent to people in Faisalabad, Pakistan, using a snowball selection process. The relationships between people's perceptions of information openness, financial mood, confidence in their financial handling abilities, and financial inclusion were examined using structural equation modeling (SEM). The role of financial self-efficacy in these relationships was investigated through a mediation analysis. Financial attitude, perceived information transparency, financial self-efficacy, and financial inclusion are positively correlated. Good financial attitudes and perceived information transparency increased financial self-efficacy and financial inclusion. Also, financial self-efficacy influenced the relationship between perceived information transparency, financial attitude, and financial inclusion.

Determinants of individual investment decision: A moderated mediation model

This study aims to examine the effect of financial self-efficacy, risk tolerance, risk perception, and gender on individual investment decisions using a moderation and mediation approach. In addition, this study also examines the role of risk tolerance in mediating the effect of financial self-efficacy on investment decisions as well as the role of gender in moderating the effect of financial self-efficacy on risk tolerance and investment decisions. The sample used in this study is individuals living in Madura Island who invest in financial and real assets. A total of 416 respondents filled out the questionnaire distributed online. This study uses Partial Least Square-Structural Equation Modeling (PLS-SEM) to test the hypotheses. The results of this study prove that financial self-efficacy, risk tolerance, and gender have a positive effect on individual investment decisions. Meanwhile, risk perception has a negative effect on individual investment decisions. Risk tolerance partially mediates the effect of financial self-efficacy on investment decisions. Furthermore, gender strengthens the effect of financial self-efficacy on risk tolerance and investment decisions. This study provides an understanding of the role of risk in investment decisions. Investors are expected to increase their financial knowledge and control their behavioral biases so as not to get trapped in high-risk investments.

Management Behavior of Online Users: Testing the Role of Financial Literacy as a Moderating Variable

This research was conducted to examine the Influence of Pocket Money, Financial Self-Efficacy, Self-Control, and Religiosity on the Financial Management Behavior of Online Loan Users with Financial Literacy as a Moderation Variable. Criteria for sample selection in this study include students who are currently or have taken financial management courses at the Faculty of Economics at Universitas Islam Negeri Maulana Malik Ibrahim Malang. Data collection techniques used a questionnaire. The total sample used in this study was 106 respondents using the non-probability sampling method, namely purposive sampling. This research used a quantitative analysis approach using Partial Least Square (PLS). The results show that pocket money, self-control, and religiosity affect financial management behavior. Beside it, financial self-efficacy does not affect financial management behavior. Financial literacy does not moderate the influence of pocket money, financial self-efficacy self-control, and religiosity on financial management behavior.

The Moderating Role of Financial Self-Efficacy in the Relationship between Emotional Intelligence and Financial Effectiveness.

Purpose - This study aims to examine the effects of emotional intelligence on organizational financial effectiveness, with the moderating effect of financial self-efficacy. Study Design/methodology/approach - To examine how financial self-efficacy moderates the relationship between emotional intelligence and financial effectiveness, data were collected from a sample of 272 managers in Pakistani organizations using a 7-point Likert scale questionnaire. SPSS and the graphical application AMOS were used to evaluate the collected data and structural equation modeling (SEM) techniques were used to evaluate the hypothesis. Findings- The results reveal that emotional intelligence significantly affects an organization’s financial effectiveness. Emotional intelligence includes key components such as self-awareness, self-management, motivation, empathy, and social skills, all of which contribute significantly to an organization’s financial effectiveness. Results show that it is important for organizations to measure managers’ emotional intelligence before employing them. Moreover, research shows that the association between organizational financial effectiveness and emotional intelligence is significantly moderated by financial self-efficacy. Research Practical Implications- The study has limitations, such as focusing solely on individual emotional intelligence (EI) and financial effectiveness rather than considering team-level EI or qualitative aspects of EI. However, it confirms a link between EI and financial effectiveness, particularly when moderated by financial self-efficacy. These findings underscore the importance of EI and financial self-efficacy, suggesting avenues for future research. Originality/value- Examination of non-linearity between ESG and firm-specific factors has not been performed holistically. Additionally, a direct comparison between the developed and developing markets is also lacking in the current literature. This study attempts to address these gaps.

The Effect of Financial Planning on Consumer Debt Management: The Role of Financial Literacy, Self-Efficacy, and Financial Motivation

This qualitative study investigates the complex interplay between financial literacy, financial behavior, self-control, debt management, and financial well-being. Utilizing in-depth interviews with a purposively selected group of individuals engaged in financial planning to manage personal or household debt, the research aims to explore how financial literacy, self-efficacy, and financial motivation mediate the relationship between financial planning and consumer debt management. The methodology encompasses a thematic analysis of participants' narratives to identify and interpret the underlying themes related to financial management practices. Findings reveal a multifaceted relationship where financial literacy emerges as a foundational element, enhancing participants' ability to manage debt effectively. High financial self-efficacy, influenced by literacy, motivates proactive financial behaviors, leading to improved financial well-being. Conversely, low self-control and procrastination were identified as significant barriers to effective debt management. The study also highlights the pivotal role of quantitative literacy and material values in shaping financial behavior, with strong quantitative skills and lower materialism associated with forward-looking financial decisions. These insights underscore the need for comprehensive financial education that addresses not only the cognitive aspects of financial decision-making but also the psychological factors influencing financial behaviors. Tailoring financial education to individual needs and contexts is critical for enhancing financial literacy, self-efficacy, and motivation, ultimately leading to better debt management and financial health.

Pengetahuan dan Sikap Keuangan: Perspektif Manajemen Keuangan dan Financial Self-Eficacy di Lingkungan Desa

This research was conducted to determine the factors that influence the Financial Management Behavior of Women Empowering Family Welfare in Sukomulyo Village. This research aims to analyze the influence of Financial Knowledge and Financial Attitude variables on Financial Management Behavior with Financial Self-efficacy as a mediating variable among Mothers who are Family Welfare Empowerment (PKK) Administrators in Sukomulyo Village, Manyar District, Gresik Regency. The type of research used is quantitative with data analysis techniques using PLS (Partial Least Square) analysis with the SmartPLS program. The population and sample used in this research were the Family Welfare Empowerment (PKK) administrators at the Sukomulyo Village Community Association, totaling 135 respondents. The research results show that Financial Knowledge and Financial Attitudes have a positive effect on Financial Management Behavior. Apart from that, both also have a positive effect on Financial Self-efficacy, which in turn also influences Financial Management Behavior. Financial Self-efficacy also functions as a mediating variable, which connects Financial Knowledge and Financial Attitudes with Financial Management Behavior. These findings emphasize the importance of having good Financial Knowledge, a positive Financial Attitude, and strong Financial Self-efficacy in forming wise financial management behavior among mothers in the village.

Working While in College Brings Happiness? Financial Stress-Coping Resources, Coping Strategies, and Life Satisfaction Among College Students

College students often experience financial stress, which can interfere with their educational attainment. By applying the stress-coping theory, this study examined the relationships between financial stress and financial coping resources (self-earned income, financial knowledge, and financial self-efficacy), financial coping strategies (problem-focused and emotion-focused), and life satisfaction in a sample of 313 Korean college students. Data were collected through a questionnaire survey and analyzed using structural equation modeling. The results demonstrated that emotion-focused coping, rather than problem-focused coping, was related to financial stress. College students’ use of problem-focused coping was positively associated with self-earned income but not with financial knowledge and self-efficacy. While self-earned income was linked to reduced life satisfaction, it was also connected to increased utilization of problem-focused coping, potentially enhancing life satisfaction. The findings indicate the importance of providing college students with opportunities to enable them to earn their own income and improve their overall well-being.

Financial Capability, Financial Well-Being, and Life Satisfaction of Women in an Emerging Economy

Life satisfaction depends on several life aspects, such as relationships, achievements, health, and work satisfaction. Theorists and experts contend that domain-specific factors and behaviors predict domain-specific satisfaction. Our study examines life satisfaction from the standpoint of behavior finance indicators by incorporating financial capability factors such as financial literacy, financial management behavior, and financial self-efficacy as antecedents to financial satisfaction and financial stress. Financial satisfaction and financial stress are further assumed to predict life satisfaction. Data are collected from 308 working women using a self-administered questionnaire in three different waves in Pakistan. By examining the fitness of the measurement model, we proceeded toward path analysis of the structural equation model. All the hypothesized relationships are supported except the paths between financial literacy to financial stress and financial management behavior to financial satisfaction. The results and implications are presented based on the findings of the study.