Assessing Model of Financial Satisfaction Predictors: the Mediating Effect of Financial Risk Tolerance and Financial Behavior
Abstract
Objective – This study aims to prove empirically about the prediction of financial satisfaction models based on financial knowledge and socio-economic factors of finance by taking into account financial risk tolerance and financial behavior.
Design/methodology – The primary data source in the form of a questionnaire and non-probability purposive sampling technique were used with 107 responses collected during July-August 2020. The unit of analysis was an individual, namely the people in Palembang City in the age range of 20-55 years. Data analysis comprise of descriptive statistics index number method and inferential statistics SEM method by converting ordinal data into intervals.
Results – It was found that direct financial knowledge, socio-economic financial had not significant on financial risk tolerance. Financial knowledge, socio economic financial significantly and positively influence financial behavior. Furthermore, direct financial knowledge, socio-economic financial, financial risk tolerance, financial behavior had a significant positive effect on financial satisfaction. The indirect effect found that finance risk tolerance is not a mediation of the influence of financial knowledge and socio-economic financial on financial satisfaction. The indirect effect of financial behavior on the influence of financial knowledge and financial socio-economic were significant.
Limitation/Suggestion – This study implies that the role of financial behavior as a partial mediation on the relationship between financial knowledge and financial satisfaction. The role of perfect mediation itself is for socio-economic financial relationships and financial satisfaction.
Keywords
Full Text:
PDFReferences
Ajzen, I., & Fishbein, M. (2014). The Influence of Attitudes (nrRehavun. The Handbook of Attitudes, 173.
Amanah, D., & Harahap, D. A. (2020). Visual appeal model for consumer online impulsive purchases in Indonesia, 9(06), 388–397.
Archuleta, K. L., Dale, A., & Spann, S. M. (2013). College Students and Financial Distress : Exploring Debt , Financial Satisfaction , and Financial Anxiety. Journal of Financial Conseling and Planning, 24(2), 50–62.
Arifin, A. Z. (2018). Influence of Financial Attitude , Financial Behavior, Financial Capability on Financial Satisfaction. Advances in Social Science, Education and Humanities Research (ASSEHR), 186, 100–103.
Chatterjee, D., Kumar, M., & Dayma, K. K. (2019). Income Security, Social Comparisons and Materialism Determinants of Subjective Financial Well-being. International Journal of Bank Marketing, 1–22. https://doi.org/10.1108/IJBM-04-2018-0096
Dhiman, B., & Raheja, S. (2018). Do Personality Traits and Emotional Intelligence of Investors Determine Their Risk Tolerance ? Management and Labour Studies, 43(1&2), 88–99. https://doi.org/10.1177/0258042X17745184
Fan, L., & Babiarz, P. (2019). The Determinants of Subjective Financial Satisfaction and the Moderating Roles of Gender and Marital Status. Family and Consumer Sciences Research Journal, 47(3), 237–259. https://doi.org/10.1111/fcsr.12297
FPSB. (2013). Dasar-dasar Perencanaan Keuangan. Modul.
Grable, J. E., & Joo, S. (2004). Environmental and Biopsychosocial Factors Associated with Financial Risk Tolerance. Journal of Financial Counseling and Planning Education, 15(1), 73–82.
Hasibuan, B. K. (2018). Financial Literacy and Financial Behavior as a Measure of Financial Satisfaction. Advances in Economics, Business and Management Research (AEBMR), 46, 503–507.
Hasler, A. (2017). The Gender Gap in Financial Literacy : A Global Perspective, (July).
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh Financial Attitude,Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Jurnal Manajemen Teori Dan Terapan| Journal of Theory and Applied Management, 9(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hira, T. K., & Mugenda, O. M. (1998). Predictors Of Financial Satisfaction : Differences Between Retirees And Non- Predictors Of Financial Satisfaction : Differences Between Retirees And Non-retirees. Journal of Financial Counseling and Planning, 9(2), 75–84.
Howlett, E., Kees, J., & Kemp, E. (2008). The Role of Self-Regulation , Future Orientation , and Financial Knowledge in Long-Term Financial Decisions. The Journal of Consumer Affair, 42(2), 223–242.
Joo, S., & Grable, J. E. (2004). An Exploratory Framework of the Determinants of Financial Satisfaction An Exploratory Framework of the Determinants. Journal of Family and Economic Issues, 25(1), 25–50. https://doi.org/10.1023/B
Kannadhasan, M., Aramvalarthan, S., Mitra, S., & Goyal, V. (2016). Relationship between Biopsychosocial Factors and Financial Risk Tolerance: An Empirical Study. The Journal for Decision Makers, 41(2), 117–131. https://doi.org/10.1177/0256090916642685
Kirbis, I. S., Vehovec, M., & Galic, Z. (2017). Relationship Between Financial Satisfaction and Financial Literacy: Exploring Gender Differences. Drus Istraz Zagreb God, 26(2), 165–185.
Koh, B. S. K., & Mitchell, O. S. (2019). Retirement Preparedness and Financial Literacy in Singapore : How Do the Self-Employed Compare ? Retirement Preparedness and Financial Literacy in Singapore : How Do. Wharton Pension Research Council Working Papers.
Lajuni, N., Bujang, I., & Yacob, Y. (2018). Religiosity, Financial Knowledge and Financial Behavior Influence on Personal Financial Distress among Millennial Generation. Jurnal Manajemen Dan Kewirausahaan, 20(2), 92–98. https://doi.org/10.9744/jmk.20.2.92
Limbu, Y. B., & Sato, S. (2019). Credit Card Literacy and Financial Well-being of College Students. International Journal of Bank Marketing, 1–14. https://doi.org/10.1108/IJBM-04-2018-0082
OJK. (2017). Strategi Nasional Literasi Keuangan Indonesia (Revisit 2017). SNLKI.
Palameta, B., Nguyen, C., Hui, T. S., Gyarmati, D., Wagner, R. A., Rose, N., & Llp, F. (2016). The link between financial confidence and financial outcomes among working-aged Canadians, (May).
Ponchio, M. C., Cordeiro, R. A., & Goncalves, V. N. (2019). Personal factors as Antecedents of Perceived Financial Well-being : Evidence from Brazil. International Journal of Bank Marketing, 1–22. https://doi.org/10.1108/IJBM-03-2018-0077
Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude , Financial Behaviour and Financial Knowledge Towards Financial Literacy : A Structural Equation Modeling Approach. FIIB Business Review, 1–10. https://doi.org/10.1177/2319714519826651
Remund, D. L. (2010). Financial Literacy Explicated : The Case for a Clearer Definition in an Increasingly Complex Economy, 44(2), 276–295.
Robb, C. A., & Woodyard, A. S. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, 22(1), 60–70.
Sahi, S. K. (2013). Demographic and socio-economic determinants of financial satisfaction A study of SEC-A segment of individual investors in India. International Journal of Social Economics, 40(2), 127–150.
Saurabh, K., & Nandan, T. (2018). Role of Financial Fisk Atitude and Financial Behavior as Mediators in Financial Satisfaction Empirical Evidence from India. South Asian Journal of Business Studies. https://doi.org/10.1108/SAJBS-07-2017-0088
Shalini Kalra Sahi. (2016). Demographic and socio-economic determinants of financial satisfaction. Finance, FORE School of Management, New Delhi, India.
Solimun, A. M. P. S. (2010). Metode Partial Least Square-PLS. CV Citra Malang, Malang.
Tandelilin, E. (2017). Pasar modal manajemen portofolio & investasi. Yogyakarta: PT. Kanisius.
Thanki, H., & Baser, N. (2019). Interactive Impact of Demographic Variables and Personality Type on Risk Tolerance. Emerging Economy Studies, 5(1), 42–54. https://doi.org/10.1177/2394901519825924
Willis, L. E. (2008). The Korean version can be found at: http://ssrn.com/abstract=1636889, (08).
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for Happiness : Financial Behavior and Life Satisfaction of College Students. Social Indicators Research, 92(1), 53–68. https://doi.org/10.1007/s11205-008-9288-6
Yuliani, Isnurhadi, & Jie, F. (2017). Risk Perception and Psychological Behavior of Investor in Emerging Market : Indonesian Stock Exchange. Investment Management and Financial Innovation, 14(2), 1–12.
Zsótér, B. (2018). The Aspects of Financial Culture Among Young Adults. Ekonomske Ideje i Praksa, 30, 51–71.
DOI: https://doi.org/10.24815/jaroe.v4i2.20150
Article Metrics
Abstract view : 39 timesPDF - 26 times
Refbacks
- There are currently no refbacks.
Published by:
Department of Accounting
Faculty of Economics and Business
Universitas Syiah Kuala
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
E-ISSN: 2621-1041
Journal of Accounting Research, Organization and Economics by Department of Accounting Faculty of Economics and Business Universitas Syiah Kuala is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at https://jurnal.usk.ac.id/JAROE/index.