financial literacy – Jurnal Pengurusan

Financial Literacy and Behavior in Student Financial Planning Action: The Role of SECI Strategy

asriwn — Thu, 07 Nov 2024 08:56:48 +0000

Research on the relationship between financial literacy, financial behavior, and financial planning actions (FPAs) in Malaysia is limited, with existing studies focusing mainly on financial well-being. This gap is concerning given the rising trend of bankruptcy and debt issues among young Malaysian employees. Understanding how financial literacy and behavior impact FPAs is crucial, particularly for individuals transitioning from academic to professional financial responsibilities. This paper examines these relationships among 1,105 undergraduate students in Malaysia. Using Ordinary Least Squares (OLS) regression, the study finds significant positive relationships between financial literacy, financial behavior, and FPAs, consistent with human capital and reasoned action theories. Additionally, it explores the moderating role of Socialization, Externalization, Combination, and Internalization (SECI) strategies. The results highlight that parental guidance, personal finance websites, and college information effectively moderate the relationship between financial literacy, financial behavior, and FPAs. Financial workshops also significantly moderate the relationship between financial behavior and FPAs. Overall, the findings demonstrate that both financial literacy and behavior are critical factors influencing FPAs among undergraduate students, emphasizing the need for effective financial education and support.

Entrepreneurship Motivation among Accounting Students: The Role of Financial Literacy and Financial Behaviour

apriyaliwahab — Sat, 08 Oct 2022 21:40:54 +0000

This study explores the effects of financial literacy and financial behaviour on entrepreneurial motivation among accounting students in Malaysia’s public universities. University students’ financial literacy level and financial behaviour level are also explored. This study employed a quantitative survey method and used twenty financial items and ten entrepreneurship motivation items to answer the research questions. A total of 530 accounting undergraduates from three public universities in Malaysia were given a financial and entrepreneurial test. To get results, data were analysed using mean and frequency analysis, a reliability test, Pearson’s product-moment analysis and regressions. Our findings demonstrated that the accounting students’ financial literacy and financial behaviour was at a moderate level. However, accounting students possessed a high level of entrepreneurship motivation. Supporting past research, this study found that financial literacy and financial behaviour affect accounting students’ entrepreneurial motivation. This research has valuable implications for educators, higher education and policymakers by designing a more integrated education curriculum and effective policy mechanism that strengthens students’ entrepreneurial motivation.

Characteristics of Board of Directors and Financial Distress: A Malaysian Case

syazahzwni — Sat, 08 Oct 2022 18:07:51 +0000

This paper examines the relationship between the characteristics of boards of directors and the financial distress of companies listed on Bursa Malaysia. The sample consists of 68 companies whose listing status on Bursa Malaysia was being suspended between 2005 and 2009, under the provision of Practice Note 17 (PN17) of the Bursa Malaysia Listing Requirements. The study develops a multinomial logit regression model to test three categories of PN17 listing statuses: re-listed on Bursa Malaysia, remain as PN17, and de-listed from Bursa Malaysia. The model relates the listing status to five characteristics of the boards of directors as independent variables, specifically leadership structure, equity ownership, board involvement, financial literacy and multiple directorships of board members; and four control variables, namely firm size, leverage, return on assets and audit quality. The study expects that the success of PN17 listing outcomes depends on the ability of the board of directors to establish and implement the restructuring plan. The results show that the relisting of PN17companies is negatively related to financial literacy and equity ownership of the board of directors and positively related to the involvement of the board. The results imply that boards of directors with a lower ownership and financial literacy, but more actively involved, are more capable of overcoming financial difficulties.

The Relationship between Financial Literacy, Rational Financing Decision, and Financial Performance: An Empirical Study of Small and Medium Enterprises in Makassar

syazwinaramjan — Sat, 08 Oct 2022 13:36:01 +0000

This research analyzes the effect of Financial Literacy, Rational Financing Decision, Financial Capital, and SME Financial Performance. A survey approach is used for data collection from a sample of financed SMEs in Makassar City. Using the cluster method technique and stratified random sampling, 279 samples are obtained and analyzed with Structural Equation Modeling with the AMOS Software. The results show that Financial Literacy significantly affects Rational Financing Decision and Financial Capital. Rational Financing Decision significantly affects Financial Capital. Furthermore, Financial Literacy and Capital significantly affects performance. Moreover, Rational Financing Decision does not significantly affect Financial Performance. The study shows that Financial Capital is not a Moderator variable in explaining the relationship between Financial Literacy and Rational Financing Decision with Financial Performance. This research implies that financial institutions should be careful in providing loans to SMEs.

The Relationship between Socio-Demographics and Financial Literacy with Financial Planning Among Young Adults in Klang Valley, Malaysia

khairul23 — Fri, 07 Oct 2022 02:55:25 +0000

This study aims to explore the relationship between socio-demographics and financial literacy with an individual’s engagement in personal financial planning, with the target population being the youths residing in Klang Valley, Malaysia. Questionnaires adopted from past literature were distributed to gather relevant data from the target population and 400 respondents participated in this study in total. The results show that age, education level, income level and financial literacy have relationships with personal financial planning, while gender does not. The limitations of this study include the omission of other variables such as behavioral, environmental, and psychological factors that may affect financial planning, as well as geographical constraints whereby other states and federal territories with varying state of development, cost of living and lifestyle may need to be considered to present a more comprehensive research framework and provide more accurate findings. Lastly, this research serves as a guide to the relevant authorities in reviewing the sufficiency and effectiveness of financial education currently in place in the country.