Effect of gender as a moderating variable on financial vulnerability using hierarchical regressions: Survey evidence from Indonesian traditional market traders

  • Received October 12, 2022;
    Accepted November 11, 2022;
    Published November 17, 2022
  • Author(s)
    Dody Hapsoro
    ORCID ,
    Julianto Agung Saputro
    ORCID , Cahyo Indraswono ,
    Atika Jauharia Hatta
    ORCID ,
    Muhammad Sabandi
    ORCID
  • DOI
    http://dx.doi.org/10.21511/imfi.19(4).2022.14
  • Article Info
    Volume 19 2022, Issue #4, pp. 171-182
  • TO CITE АНОТАЦІЯ
  • Cited by
    4 articles
  • 719 Views
  • 173 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Market traders have a significant contribution to GDP in Indonesia; however, their level of education is still low. This leads to a high level of financial vulnerability, so it is important to study this issue, and there is still not enough research on financial vulnerability. Market traders are considered to be more vulnerable to fraud and poor financial management, and this is more common among female traders who have a relatively high level of consumption and economic dependence on men. This study aims to determine the effect of financial behavior and digital financial literacy on financial vulnerability. In addition, the gender interaction between the two relationships was also tested to better understand whether gender weakens or strengthens the relationship. Using a survey method on 278 market traders in Indonesia and hierarchical regression analysis, the results show that digital financial literacy and financial behavior have a negative significant influence on financial vulnerability of market traders. This means that low digital financial literacy and poor financial behavior lead to high financial vulnerability of market traders. In addition, the results of the interaction test show that the negative effect of financial vulnerability is greater for men than women. This is because men usually provide for their families, so they will always try to improve their financial performance and productivity. An important implication of this study is to provide recommendations to the government and associations to further improve the digital literacy skills of market traders, especially female traders through training or mentoring.

Acknowledgment
This research was funded by the Directorate of Research, Technology and Community Service (DRTPM) of the Indonesian Ministry of Education and Culture in 2022 with the National Competitive Basic Research Grant scheme.

view full abstract hide full abstract
    • Figure 1. Research model
    • Table 1. Demographic data
    • Table 2. Descriptive statistics
    • Table 3. Hypothesis testing result
    • Conceptualization
      Dody Hapsoro, Atika Jauharia Hatta, Muhammad Sabandi
    • Funding acquisition
      Dody Hapsoro
    • Investigation
      Dody Hapsoro, Julianto Agung Saputro, Cahyo Indraswono
    • Methodology
      Dody Hapsoro, Atika Jauharia Hatta, Muhammad Sabandi
    • Resources
      Dody Hapsoro, Atika Jauharia Hatta
    • Supervision
      Dody Hapsoro
    • Validation
      Dody Hapsoro, Julianto Agung Saputro, Cahyo Indraswono, Atika Jauharia Hatta, Muhammad Sabandi
    • Writing – original draft
      Dody Hapsoro, Atika Jauharia Hatta, Muhammad Sabandi
    • Data curation
      Julianto Agung Saputro, Cahyo Indraswono
    • Formal Analysis
      Julianto Agung Saputro, Cahyo Indraswono, Atika Jauharia Hatta
    • Project administration
      Julianto Agung Saputro, Cahyo Indraswono
    • Software
      Julianto Agung Saputro, Cahyo Indraswono, Atika Jauharia Hatta
    • Visualization
      Julianto Agung Saputro, Cahyo Indraswono
    • Writing – review & editing
      Atika Jauharia Hatta, Muhammad Sabandi
Related Articles

  • Assessing the dynamics of fintech in Indonesia

    Nofie ImanORCID doi: http://dx.doi.org/10.21511/imfi.15(4).2018.24
    Investment Management and Financial Innovations Volume 15, 2018         Issue #4         pp. 296-303 Views: 1991 Downloads: 519 TO CITE АНОТАЦІЯ

    Financial technology or commonly known as fintech is relatively a new thing in Indonesia. This article is attempting to capture the dynamics of such technology in Indonesia. This paper was aimed to help researchers and academics who are interested in studying the phenomenon of fintech more broadly. This study is descriptive and exploratory by nature. Data were gathered from secondary sources, as well as interviews with practitioners, policy makers, and users. Data were collected during the period from 2016 to 2018, which was divided into several different stages. The results of the study show that fintech is more than just a phenomenon, it cannot be compared to other start-ups, and has the potential to fundamentally change the business and economic landscape.

  • Financial well-being – A Generation Z perspective using a Structural Equation Modeling approach

    Nisha ShankarORCID , Smitha VinodORCID , Rajashree KamathORCID doi: http://dx.doi.org/10.21511/imfi.19(1).2022.03
    Investment Management and Financial Innovations Volume 19, 2022         Issue #1         pp. 32-50 Views: 1677 Downloads: 926 TO CITE АНОТАЦІЯ

    The current pandemic situation in the global economy has urged the need to revolutionize the financial services industry with a keen eye on consumers’ financial needs for sound financial decisions, which is necessary for financial well-being. The purpose of the study is to assess the financial well-being of Indian Gen Z students in relation to financial literacy, financial fragility, financial behavior, and financial technology. In addition, the study also tries to determine how Gen Z students’ financial well-being is influenced by other factors such as gender, age, parental education, employment status, and monthly income in India. The study uses the scientific data analysis approach, Partial Least Squares-SEM model to estimate, predict, and assess the hypotheses. A sample of 271 University students from India was surveyed using a self-administered structured questionnaire. Questions were incorporated to understand the effect of financial literacy, technology, fragility, behavior, demographic and parental characteristics on financial well-being. The results indicate that financial behavior is positively related to financial well-being, while financial fragility is negatively associated. However, financial literacy and financial technology do not significantly affect financial well-being. The results also show that financial well-being is significantly influenced by gender, parental education, employment status, and monthly income change. Understanding Indian Gen Z student financial well-being will expand the students’ understanding of the importance of financial literacy for well-planned financial behavior and informed decisions, hence high levels of financial well-being. Government and financial institutions can more effectively identify gaps and deficiencies in student financial well-being.

  • Generation Z perceptions in paying Zakat, Infaq, and Sadaqah using Fintech: A comparative study of Indonesia and Malaysia

    Azhar AlamORCID , Ririn Tri RatnasariORCID , Chabibatul Mua’awanahORCID , Raisa Aribatul Hamidah doi: http://dx.doi.org/10.21511/imfi.19(2).2022.28
    Investment Management and Financial Innovations Volume 19, 2022         Issue #2         pp. 320-330 Views: 1255 Downloads: 614 TO CITE АНОТАЦІЯ

    Generation Z is the future generation with technology familiarity and is a trendsetter in financial technology. This study aimed to compare (similarities and differences) perceptions of Generation Z Muslims in Indonesia and Malaysia in paying Zakat, Infaq, and Sadaqah (ZIS). This study uses a qualitative approach with phenomenological methods through focus group discussions. This method was chosen because it allows substantial interaction between participants to compare objects more boldly. Initially, there were 43 Generation Z students from Indonesia and 25 Generation Z students from Malaysia. The total reduction of participants was carried out to find the most relevant and appropriate participants by determining the criteria for having paid ZIS using financial technology (Fintech) at least once. With 10 participants from each country from the final narrowing results, two stages of Focus Group Discussion were carried out. The findings show the similarity of perceptions of awareness of use, including the need and importance of usage benefits. The similarity of perceptions regarding reputation was also found in professionalism and reliability. In contrast, similar perceptions of satisfaction occurred in aspects of multifunction and usability. In addition, differences were found in the perception of data security. There are still suspicions about data security among Indonesian participants. No studies directly compare Generation Z Muslims in the two countries that pay ZIS through Fintech. This study confirms that it is essential to increase the security of personal data when using fintech. Then there is a feeling of security and comfort for Generation Z who donated ZIS.

Download Preview
Close
Investment Management and Financial Innovations
Investment Management and Financial Innovations