The role of personality traits, financial literacy and behavior on investment intentions and family support as a moderating variable
-
Received April 17, 2022;Accepted May 11, 2022;Published May 17, 2022
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0002-8177-0853Link to ORCID Index: https://orcid.org/0000-0003-4186-5986
-
DOIhttp://dx.doi.org/10.21511/imfi.19(2).2022.12
-
Article InfoVolume 19 2022, Issue #2, pp. 143-153
- TO CITE АНОТАЦІЯ
-
Cited by6 articlesJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:Journal title: Investment Management and Financial InnovationsArticle title: Smart investing: Unveiling key drivers of strategic investment for investors in the Indonesia Stock ExchangeDOI: 10.21511/imfi.21(4).2024.13Volume: 21 / Issue: 4 / First page: 156 / Year: 2024Contributors: Ika Yanuarti Loebiantoro, Eaw Hooi Cheng, Nursyamilah AnnuarJournal title: Innovative MarketingArticle title: The impact of taxi drivers’ characteristics on the propensity to do business: Case study from a sharing economyDOI: 10.21511/im.19(2).2023.14Volume: 19 / Issue: 2 / First page: 170 / Year: 2023Contributors: Zoltan Rozsa, Aknur Zhidebekkyzy, Yuriy Bilan, Jana DrahosovaJournal title: Journal of Risk and Financial ManagementArticle title: The Influence of Personality Traits on Stock Investment Retention: Insights from Thai InvestorsDOI: 10.3390/jrfm17110486Volume: 17 / Issue: 11 / First page: 486 / Year: 2024Contributors: Alicha Treerotchananon, Chuleeporn Changchit, Robert Cutshall, Ravi Lonkani, Thanu PrasertsoontornJournal title: Knowledge and Performance ManagementArticle title: Financial literacy exchange and its challenges in Post-Soviet GeorgiaDOI: 10.21511/kpm.06(1).2022.08Volume: 6 / Issue: 1 / First page: 87 / Year: 2022Contributors: Natia Surmanidze , Khatuna Tabagari, Zurab Mushkudiani, Maia AkhvledianiJournal title: Problems and Perspectives in ManagementArticle title: Business sustainability: Functions of financial behavior, technology, and knowledgeDOI: 10.21511/ppm.21(1).2023.11Volume: 21 / Issue: 1 / First page: 120 / Year: 2023Contributors: Bambang Widagdo, Chalimatuz Sa’diyah
- 1070 Views
-
569 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Investment refers to various actions taken by individuals, including the younger generation in Indonesia, to prepare for the future. There are many programs around investment offered by the government in Indonesia for the short to long term. Therefore, this study aims to examine the direct and indirect effects of personality traits, financial literacy, and behavior and family support on investment intentions using a quantitative approach. In addition, this study is also intended to add to the limited empirical evidence regarding investment among students in Indonesia. The model of this research framework is based on collaboration between theory and previous research as a reference in strengthening the justification of the findings. The sample consisted of 341 students spread throughout Indonesia, while the data was collected using a questionnaire distributed online and analyzed using the Smart-PLS. The overall findings of this study indicate that personality, financial literacy, and behavior have a significant effect on investment intentions among students in Indonesia. Furthermore, financial behavior indicates the role of intermediaries, while family support does not strengthen the effect of financial literacy on investment intentions among students in Indonesia. The students who take financial management courses will be more aware of the importance of financial literacy and financial behavior for investment intentions. Recommendations for further research can relate other variables affecting investment intentions that were not examined in this study.
- Keywords
-
JEL Classification (Paper profile tab)G41, G53
-
References43
-
Tables9
-
Figures2
-
- Figure 1. Study conceptual framework
- Figure 2. Data processing results using SmartPLS
-
- Table 1. Respondents’ demographics
- Table 2. Convergent validity test results
- Table 3. Reliability test results
- Table 4. Outer test results of the Personality Traits variable model
- Table 5. Results of the outer model test of the Financial Literacy variable
- Table 6. Results of the outer model test of the Financial Behavior variable
- Table 7. Results of the outer model test of the Family Support variable
- Table 8. Results of the outer model test of the Investment Intention variable
- Table 9. Results of direct and indirect effect
-
- Abdillah, W., Permatasari, R., & Hendrawaty, E. (2019). Understanding Determinants of Individual Intention to Invest in Digital Risky Investment. Jurnal Dinamika Manajemen, 10(1), 124-137.
- Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Begavior and Human Decision Processes, 50(11), 179-211.
- Ali, A. (2011). Predicting individual investors’ intention to invest: An experimental analysis of attitude as a mediator. World Academy of Science, Engineering and Technology, 50(February 2011), 994-1001.
- Allport, G. W. (1937). Personality: A psychological interpretation. New York.
- Angelle, P. S. (2006). Instructional Leadership and Monitoring: Increasing Teacher Intent to Stay Through Socialization. NASSP Bulletin, 90(4), 318-334.
- Aren, S., & Dinç Aydemir, S. (2015). The Moderation of Financial Literacy on the Relationship Between Individual Factors and Risky Investment Intention. International Business Research, 8(6), 17-28.
- Asad Khan, M., Hussain Shah, N., Hussain, A., Hussain, J., & Khan, M. (2020). The Effect of Financial Knowledge on Financial Behavioral Intention to Invest: Mediating Role of Risk Perception and Attitude. Hamdard Islamicus, 43(1), 38-51.
- Ashrafi, M., & Rajablou, R. (2020). Personality types and investment management: practitioners versus postgraduate financial students. International Journal of Indian Culture and Business Management, 20(3), 326.
- Baronchelli, G., Bettinelli, C., Del Bosco, B., & Loane, S. (2016). The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries. International Business Review, 25(4), 960-970.
- Chu, Z., Wang, Z., Xiao, J. J., & Zhang, W. (2017). Financial Literacy, Portfolio Choice and Financial Well-Being. Social Indicators Research, 132(2), 799-820.
- Cooper, D., & Schindler, P. (2013). Business Research Method (12th ed.). Mcgraw-hill Us Higher.
- Cuong, P. K., & Jian, Z. (2014). Factor Influencing individual Investors’ Behavior : An Empirical Study of the Vietnamese Stock market. American Journal of Business and Management, 2(1).
- Davey, J., & George, C. (2010). Personality and finance: The effects of personality on financial attitudes and behaviour. International Journal of Interdisciplinary Social Sciences, 5(9), 275-294.
- Dewi, I. M., & Purbawangsa, I. B. A. (2018). Pengaruh Literasi Keuangan, Pendapatan Serta Masa Bekerja Terhadap Perilaku Keputusan Investasi. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 7, 1867.
- Donnelly, G., Iyer, R., & Howell, R. T. (2012). The Big Five personality traits, material values, and financial well-being of self-described money managers. Journal of Economic Psychology, 33(6), 1129-1142.
- Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861-1883.
- Friedman, M., Bowden, V., & Jones, E. (2013). Family Nursing : Research, Theory & Practice. Prentice Hall Upper Saddle River.
- Furnham, A., & Fudge, C. (2008). The Five Factor Model of Personality and Sales Performance. Journal of Individual Differences, 29(1), 11-16.
- Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84-96.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson Education Limited.
- Hastings, J., & Mitchell, O. S. (2020). How financial literacy and impatience shape retirement wealth and investment behaviors. Journal of Pension Economics and Finance, 19(1), 1-20.
- Hutomo, A., Marditama, T., Limakrisna, N., Sentosa, I., Lee, J., & Yew, K. (2020). Green Human Resource Management, Customer Environmental Collaboration and the Enablers of Green Employee Empowerment: Enhanching an Environmental Performance. Dinasti International Journal of Economics, Finance & Accounting, 1(2), 165-175.
- Ilyas, M., Moeljadi, & Djawahir, A. H. (2022). The effect of financial knowledge and financial well-being on investment intention mediated by financial attitude. International Journal of Research in Business and Social Science (2147- 4478), 10(8), 175-188.
- Jahanzeb, A., Muneer, S., & Rehman, S. (2012). Implication of Behavioral Finance in Investment Decision-making Process. Information Management and Business Review, 4(10), 532-536.
- Jorgensen, B. L., & Savla, J. (2010). Financial literacy of young adults: The importance of parental socialization. Family Relations, 59(4), 465-478.
- Ki, E. J., & Hon, L. C. (2012). Causal linkages among relationship quality perception, attitude, and behavior intention in a membership organization. Corporate Communications, 17(2), 187-208.
- Lai, C. P. (2019). Personality traits and stock investment of individuals. Sustainability (Switzerland), 11(19).
- Lathif, S. A. (2019). The Impact od Investor’s Personality Types on Investment Intentions. Journal of Composition Theory, 12(09), 1078-1088.
- Mutlu, U., & Ozer, G. (2019). The effects of personality traits on financial behaviour. Pressacademia, 8(3), 155-164.
- Nandan, T., & Saurabh, K. (2016). Big-five personality traits, financial risk attitude and investment intentions: study on Generation Y. International Journal of Business Forecasting and Marketing Intelligence, 2(2), 128.
- O’Connor, M. C., & Paunonen, S. V. (2007). Big Five personality predictors of post-secondary academic performance. Personality and Individual Differences, 43(5), 971-990.
- Praba, S., & Malarmathi, K. (2015). Impact of financial Situation on the Households’ Investment decisions – A Study on Investment Behaviour. Journal of Management Thought and Practice, 7(1).
- Robb, C. A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60-70.
- Ryan Dunn, C., Dorsch, T. E., King, M. Q., & Rothlisberger, K. J. (2016). The Impact of Family Financial Investment on Perceived Parent Pressure and Child Enjoyment and Commitment in Organized Youth Sport. Family Relations, 65(2), 287-299.
- Sadiq, M. N., & Khan, R. A. A. (2018). Financial Literacy, Risk Perception and Investment Intention among Youth in Pakistan. International Journal of Management Sciences and Business Research, 7(5), 2226-8235.
- Sadiq, N., & Azad, A. R. (2019). Impact of Personality Traits on Investment Intention: The Mediating Role of Risk Behaviour and the Moderating Role of Financial Literacy. Journal of Finance & Economics Research, 4(1), 1-18.
- Samsuri, A., Ismiyanti, F., & Narsa, I. M. (2019). Effects of Risk Tolerance and Financial Literacy to Investment Intentions. International Journal of Innovation, Creativity and Change, 10(9), 40-54.
- Sarwar, D., Sarwar, B., Raz, M. A., Khan, H. H., Muhammad, N., Azhar, U., uz Zaman, N., & Kasi, M. K. (2020). Relationship of the Big Five Personality Traits and Risk Aversion with Investment Intention of Individual Investors. Journal of Asian Finance, Economics and Business, 7(12), 819-830.
- Sashikala, V., & Chitramani, P. (2018). The Impact of Behavioural Factors on Investment Intention of Equity Investors. Asian Journal of Management, 9(1), 183.
- Shefrin, H. (2018). Behavioral Corporate Finance (2nd ed.). McGraw-Hill.
- Sugiyanto, P. N. (2020). The Mediation Effect of Financial Behavior on the Relationship Between Financial Literacy and Investment Decisions. Competition: Jurnal Ilmiah Manejemen, 11(2), 155-164.
- Tumba, N. J., Onodugo, V. A., Akpan, E. E., & Babarinde, G. F. (2022). Financial literacy and business performance among female micro-entrepreneurs. Investment Management and Financial Innovations, 19(1), 156-167.
- Yang, M., Al Mamun, A., Mohiuddin, M., Ali Al-Shami, S. S., & Zainol, N. R. (2021). Predicting stock market investment intention and behavior among malaysian working adults using partial least squares structural equation modeling. Mathematics, 9(8).
-
-
Conceptualization
Bambang Widagdo, Kenny Roz
-
Project administration
Bambang Widagdo, Kenny Roz
-
Supervision
Bambang Widagdo
-
Validation
Bambang Widagdo, Kenny Roz
-
Writing – original draft
Bambang Widagdo, Kenny Roz
-
Writing – review & editing
Bambang Widagdo, Kenny Roz
-
Data curation
Kenny Roz
-
Formal Analysis
Kenny Roz
-
Conceptualization
-
Financial literacy and business performance among female micro-entrepreneurs
Ndaghu Julius Tumba , Vincent A. Onodugo , Ekom Etim Akpan , Gbenga Festus Babarinde doi: http://dx.doi.org/10.21511/imfi.19(1).2022.12Investment Management and Financial Innovations Volume 19, 2022 Issue #1 pp. 156-167 Views: 1218 Downloads: 1029 TO CITE АНОТАЦІЯThe poor performance of female entrepreneurs, exemplified in their inability to realize their full potential and compete fairly with their male counterparts owing to financial illiteracy, motivated this study. Therefore, this study examined the effect of financial literacy on business performance among female micro-entrepreneurs. Using the survey research design, data were collected from 247 female entrepreneurs from six states in the North-Eastern region of Nigeria. The hypotheses developed for the study were tested using path modeling-structural equation modeling with the aid of SmartPLS software version 3.2.7. The result revealed that all proxies of financial literacy (financial education, cash forecasting, and bookkeeping have significant effects on business performance of female entrepreneurs. Additionally, the paper revealed that financial education contributed more to the variance in business performance of the female micro-entrepreneurs, this was followed by bookkeeping practices, while cash-forecasting has the least effect on the variance in business performance. This implies that financial education is essential for the success of female micro-entrepreneurs. Thus, this study advocates the need for continuing trainings and workshops for female micro-entrepreneurs on financial concepts such as bookkeeping, cash forecasting, and market volatilities.
-
Financial literacy in Ukraine: from micro to macro level
Oksana Dudchyk , Iryna Matvijchuk , Mariia Kovinia , Tetiana Salnykova , Iryna Tubolets doi: http://dx.doi.org/10.21511/imfi.16(4).2019.21Investment Management and Financial Innovations Volume 16, 2019 Issue #4 pp. 240-253 Views: 1096 Downloads: 268 TO CITE АНОТАЦІЯLow financial literacy of population hinders the financial market development, limits the possibilities of using the savings for investing and creating the additional capital in the country. At the state level it results in inflation, the budget deficit creation, a decrease in country’s gold and foreign exchange reserves, an increase in internal and external government debt. The article analyzes the approaches to understanding the concept of financial literacy, tools for its measuring and comparing at micro and macro levels, dynamics of savings and gold and foreign currency reserves, peculiarities of financial literacy through the analysis of dynamics and structure of revenues and expenditures of the government budget and the population of Ukraine. Factors influencing the financial literacy of the population have been systematized. The findings give an idea of creating the optimal managerial influence based on the estimation of financial literacy of the Ukrainian population with the help of specific statistical indicators to expand the possibilities of such influence and to regulate the economic processes to achieve the financial stability of the state and the population. The study showed low financial literacy at both population and state levels. However, at the micro level, creating the credit relations, as well as income, expenses, and savings is more effective than at the macro level.
-
Retirement behavior strategies: the attitudes of students from Poland and Ukraine towards the old-age risk
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 350-365 Views: 1037 Downloads: 166 TO CITE АНОТАЦІЯDigitalization and technological advancement, referred to as the Fourth Industrial Revolution (Industry 4.0), results not only in technological innovation but also in the changes in society and public awareness. One such tendency is the demographic aging, which implicates two concerns: the instability of the public pension systems and the social awareness related with the risk of major reduction of benefits in contrast to the expectations and the need for the additional private pension security. The research has aimed to identify the opinions and attitudes of the students from Poland and Ukraine in respect to the broadly understood issues of the old age security, as well as to recognize the prospective differences in this field between the researched populations. The relevant research was conducted using the PAPI method in the years 2018–2019. Within the framework of the research, nine specific hypotheses were presented concerning the attitudes towards the selected aspects of the pension schemes and old-age security. The results were compiled in the form of the semantic differential, and the Mann-Whitney U test was utilized to verify the significance of the differences in the distribution of the answers given by the students. Those served as the basis for formulating the conclusions regarding similarities and differences in the opinions expressed by young people studied populations.
Acknowledgment
This project has been financed by the Ministry of Science and Higher Education within the “Regional Initiative of Excellence” Programme for 2019–2022. Project No. 021/RID/2018/19. Total project budget: PLN 11 897 131,40.