Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control
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Received September 18, 2023;Accepted October 30, 2023;Published November 7, 2023
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Author(s)Link to ORCID Index: https://orcid.org/0000-0002-5366-4914Link to ORCID Index: https://orcid.org/0000-0001-7262-9682Link to ORCID Index: https://orcid.org/0000-0001-9470-9480Link to ORCID Index: https://orcid.org/0000-0001-6479-0011
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DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.15
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Article InfoVolume 20 2023, Issue #4, pp. 171-181
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Creative Commons Attribution 4.0 International License
Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances.
Acknowledgment
This study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.
- Keywords
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JEL Classification (Paper profile tab)G40, G53
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References52
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Tables7
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Figures1
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- Figure 1. Conceptual model
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- Table 1. Cronbach’s alpha and composite reliability
- Table 2. Average variance extracted
- Table 3. Cross-loading
- Table 4. Fornell-Larcker criterion
- Table 5. Average communalities index
- Table 6. R-square
- Table 7. Direct effects and moderating effects
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Conceptualization
Ade Gunawan
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Data curation
Ade Gunawan, Mukmin, Sri Fitri Wahyuni
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Investigation
Ade Gunawan, Mukmin, Sri Fitri Wahyuni, Maya Sari
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Methodology
Ade Gunawan, Maya Sari
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Project administration
Ade Gunawan, Mukmin
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Supervision
Ade Gunawan, Mukmin, Maya Sari
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Visualization
Ade Gunawan, Mukmin, Sri Fitri Wahyuni
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Writing – original draft
Ade Gunawan, Maya Sari
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Writing – review & editing
Ade Gunawan, Mukmin, Sri Fitri Wahyuni, Maya Sari
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Formal Analysis
Sri Fitri Wahyuni, Maya Sari
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Validation
Sri Fitri Wahyuni
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Conceptualization
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Human resource management in promoting innovation and organizational performance
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