Financial households' efficacy, risk preference and saving behaviour
Lessons from lower-income households in Malaysia
Bibliographic Data
| ID | 2434520 |
|---|---|
| Authors | Suhal Kusairi (0000-0002-9156-6741, Universiti Malaysia Terengganu), Nur Azura Sanusi (0000-0003-1656-0320), Suriyani Muhamad (0000-0002-9928-8993, Universiti Malaysia Terengganu), Madihah Shukri (0000-0001-7817-5677, Universiti Malaysia Terengganu), Nadia Zamri (0009-0002-5522-8005, Universiti Malaysia Terengganu) |
| Year | 2019 |
| Volume | 12 |
| Issue | 2 |
| Pages | 301-318 |
| Publication date | 2019-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economics & Sociology (JOURNAL) |
| Journal identifiers | ISSN: 2071-789X • E-ISSN: 2306-3459 |
| Publisher | Centre of Sociological Research, Szczecin, Poland (PUBLISHER • PL) |
| DOI | 10.14254/2071-789x.2019/12-2/18 |
| OpenAlex | W2964249885 |
| Language | EN |
| References cited | 11 |
Many government policies contain recommendations how to improve financial literacy, particularly through programmes of financial education and personal finance. However, personal financial management is not solely related to knowledge and financial literacy; individual confidence level in own financial abilities and household differences need to be considered in this regard. This paper investigates household financial efficacy through application of psychometric instruments, financial literacy, risk preference and demographic characteristics towards saving decision behaviour. The sample covers 404 households in Peninsular Malaysia and utilises the logistic and probit empirical model. The results show that household's financial efficacy is essential for household's saving decision behaviour and choice of saving instrument. Financial literacy, race, education and dependence ratio and location (rural or urban) of the household also play a role in saving instruments selection. More specifically, households with higher levels of financial efficacy are more likely to use bank-based or other lower risk saving instruments as compared to nonbanking-based instruments.
Business · Demographic economics · Economics · Financial risk · Geography · Household income · Low income · Microeconomics · Preference · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Islamic Finance and Banking Studies
Determining Sample Size for Research Activities
When prophecy fails
The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets
The Social Psychology of Self-Efficacy
The significance of financial self-efficacy in explaining women’s personal finance behaviour
Confidence mediates how investment knowledge influences investing self-efficacy
Coefficient alpha and the internal structure of tests
Experimental Tests of the Endowment Effect and the Coase Theorem
The Pricing of Options and Corporate Liabilities
Effect of perceived controllability and performance standards on self-regulation of complex decision making
| Citation velocity | historical |
|---|---|
| Highly cited | No |