Financial literacy and behavior in student financial planning action: the role of SECI strategy
Research on the relationship between financial literacy, financial behavior, and financial planning actions (FPAs) in Malaysia is limited, with existing studies focusing mainly on financial well-being. This gap is concerning given the rising trend of bankruptcy and debt issues among young Malays...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/25191/ http://journalarticle.ukm.my/25191/1/Pengurusan_72_4.pdf |
| Summary: | Research on the relationship between financial literacy, financial behavior, and financial planning actions (FPAs)
in Malaysia is limited, with existing studies focusing mainly on financial well-being. This gap is concerning given
the rising trend of bankruptcy and debt issues among young Malaysian employees. Understanding how financial
literacy and behavior impact FPAs is crucial, particularly for individuals transitioning from academic to
professional financial responsibilities. This paper examines these relationships among 1,105 undergraduate
students in Malaysia. Using Ordinary Least Squares (OLS) regression, the study finds significant positive
relationships between financial literacy, financial behavior, and FPAs, consistent with human capital and
reasoned action theories. Additionally, it explores the moderating role of Socialization, Externalization,
Combination, and Internalization (SECI) strategies. The results highlight that parental guidance, personal finance
websites, and college information effectively moderate the relationship between financial literacy, financial
behavior, and FPAs. Financial workshops also significantly moderate the relationship between financial behavior
and FPAs. Overall, the findings demonstrate that both financial literacy and behavior are critical factors
influencing FPAs among undergraduate students, emphasizing the need for effective financial education and
support. |
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