Research

Chen-Chen Yong · Siew-Yong Yew · Chu-Kok Wee ·Institutions and Economies ·2018 ·JEL: I22; G41; I22

A conceptual model was proposed based on the theory of planned behaviour to examine the relationship between financial knowledge, attitude, behaviour and financial literacy among young working adults in Malaysia. Perceiving financial literacy as a developmental process which includes knowledge and application dimensions, the proposed model was tested on a sample of 1915 young working adults from Klang Valley, Malaysia. Data was analysed using structural equation modelling (SEM). Results indicated financial education positively influenced financial knowledge which in turn, significantly predicted both financial attitude and behaviour. Attitude partially mediated the effect of knowledge on behaviour. Analysis revealed that in terms of financial attitude, “future and non-impulsiveness†was significant while in financial behaviour, “expenditure monitoring and saving behaviour†was critical. In terms of ethnic background, the Chinese possessed the highest financial knowledge and behaviour while Indians possessed the highest financial attitude. No gender difference was noted on any relationships. Initiatives and interventions on making financial education accessible as well as gradual change of attitude are recommended for immediate actions.

Mohamad Fazli Sabri · Eugene Cheng-Xi Aw · Husniyah Abdul Rahim · Nik Ahmad Sufian Burhan · Mohd Amim Othman · Megawati Simanjuntak ·International Journal of Economics and Management ·2021 ·JEL: G41, G53

This study aims to identify the factors determining financial vulnerability among Malaysia households. A questionnaire-based survey was conducted using multi-stage sampling technique. In total, 578 useable responses were collected and data were analyzed using partial least square structural equation modeling. The empirical results revealed that i) financial literacy positively influenced financial behavior, ii) financial behavior negatively influenced financial vulnerability, iii) financial behavior mediates the relationship between financial literacy and financial vulnerability, iv) gender moderates the relationship between financial behavior and financial vulnerability. This study enriches the theoretical foundations of financial vulnerability through the exploration of mediation and moderation mechanism. Implications and future research suggestions are discussed.