FINANCIAL BEHAVIOR OF MSMEs : DO FINANCIAL KNOWLEDGE, FINANCIAL ATTITUDE, AND FINANCIAL RISK TOLERANCE MATTERS?
Abstract
This study examines the effect of financial knowledge, financial attitude, financial risk tolerance on financial behavior. The population used in this study were 252,116 MSMEs players in Banyumas, Purbalingga, Banjarnegara, Cilacap and Kebumen Regencies. The sample calculation method in this study is the 10 time rule of thumb technique, which uses 200 business actors in Banyumas, Purbalingga, Banjarnegara, Cilacap and Kebumen Regencies. The sampling technique used is the multistage random sampling technique for MSMEs business actors in Banyumas, Purbalingga, Banjarnegara, Cilacap, and Kebumen Regencies. This study uses the Partial Least Square Structural Equation Modeling (PLS-SEM) method which includes two models, namely the outer model and the inner model. The results of this study indicate that financial knowledge, financial attitude, financial risk tolerance have a positive impact on financial behavior.
References
Ajzen, I. (1985). From Intentions to Actions: A Theory of Planned Behavior. Action Control, 11–39. https://doi.org/10.1007/978-3-642-69746-3_2
Ajzen, I. (2002). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior. Journal of Applied Social Psychology, 32(4), 665–683. https://doi.org/10.1111/j.1559-1816.2002.tb00236.x
Arifin, A. Z. (2017). The influence of financial knowledge, control and income on individual financial behavior. European Research Studies Journal, 20(3), 635–648.
Arifin, A. Z. (2018). Influence factors toward financial satisfaction with financial behavior as intervening variable on Jakarta area workforce. European Research Studies Journal, 21(1), 90–103.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: results of the OECD infe pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, 15(15), 1–73.
B. C. Pratama, I. Ismoyowati, and M. N. Innayah, “Livestock and Animal Specialities Company in ASEAN: Intellectual Capitals and Performances,” IOP Conf. Ser. Earth Environ. Sci., vol. 372, no. 1, 2019, doi: 10.1088/1755-1315/372/1/012014
Batty, M., Collins, J. M., & Odders-White, E. (2015). Experimental evidence on the effects of financial education on elementary school students’ knowledge, behavior, and attitudes. Journal of Consumer Affairs, 49(1), 69–96. https://doi.org/10.1111/joca.12058
Çera, G., Khan, K. A., Mlouk, A., & Brabenec, T. (2021). Improving financial capability: the mediating role of financial behaviour. Economic Research-Ekonomska Istrazivanja, 34(1), 1265–1282. https://doi.org/10.1080/1331677X.2020.1820362
Collins, J. M., & Odders-White, E. (2015). A framework for developing and testing financial capability education programs targeted to elementary schools. Journal of Economic Education, 46(1), 105–120. https://doi.org/10.1080/00220485.2014.976325
Daulay, “Strategi Pengembangan Ekonomi Kreatif,” Tansiq, vol. Jil. 1, Tidak, 2018.
Danes, S. M., & Haberman, H. R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Journal of Financial Counseling and Planning, 18(2), 48–60.
Faulcon Bowen, C. (2002). Financial knowledge of teens and their parents. Journal of Financial Counseling and Planning, 13(2), 93–102.
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh Financial Attitude,Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Jurnal Manajemen Teori Dan Terapan| Journal of Theory and Applied Management, 9(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hermansson, C., & Jonsson, S. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance, 29, 100450. https://doi.org/10.1016/j.jbef.2020.100450
I. Ismoyowati, B. C. Pratama, and M. N. Innayah, “Performative and economic analysis on local duck farming in Central Java - Indonesia,” J. Indones. Trop. Anim. Agric., vol. 45, no. 3, pp. 234– 242, 2020, doi: 10.14710/jitaa.45.3.234-242
J. Cohen, “Statistical Power Analysis,” Curr. Dir. Psychol. Sci., vol. 1, no. 3, pp. 98–101, 1992, doi: 10.1111/1467-8721.ep10768783.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5
M. N. Innayah and B. C. Pratama, “Board Diversity and Its Effects on Firm Performance and Risk: A Study in Banking Firms,” J. Account. Invest., vol. 22, no. 1, p. proofreading, 2021, doi: 10.18196/jai.v22i1.10005
Naiwen, L., Wenju, Z., Mohsin, M., Ur Rehman, M. Z., Naseem, S., & Afzal, A. (2021). The role of financial literacy and risk tolerance: An analysis of gender differences in the textile sector of Pakistan. Industria Textila, 72(3), 300–308. https://doi.org/10.35530/IT.072.03.202023
Nurdinda, W., Muslihat, A., & Putra, R. A. K. (2020). Pengaruh Regret Aversion Bias dan Risk Tolerance bagi Investor Muda Jawa Barat terhadap Keputusan Investasi. AKUNSIKA: Jurnal Akuntansi Dan Keuangan, 1, 30–38. https://doi.org/10.31963/akunsika.v1i1.1619
Nurjannah, N., Rasuli, M., & Rusli, R. (2016). Pengaruh Persepsi Kebermanfaatan, Persepsi Kemudahan, Kepuasan, Kecepatan, Keamanan Dan Kerahasiaan Terhadap Penggunaan Fasilitas E-Filing Sebagai Sarana Penyampaian Spt Masasecara Online Dan Realtime Bagi Wajib Pajak Badan Di Dumai. Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 4(1), 1828–1842.
Okello Candiya Bongomin, G., Ntayi, J. M., Munene, J. C., & Nkote Nabeta, I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072
Owusu, G. M. Y., Korankye, G., Yankah, N. Y. M., & Agyekum Donkor, J. B. (2023). Financial risk tolerance and its determinants: The perspective of personnel from security services in Ghana. Borsa Istanbul Review, 23(4), 852–864. https://doi.org/10.1016/j.bir.2023.02.005
Özer, G., & Yilmaz, E. (2011). Comparison of the Theory of Reasoned Action and the Theory of Planned Behavior: an Application on Accountants’ Information Technology Usage. African Journal of Business Management, 5(1), 50–58. http://www.academicjournals.org/AJBM
Potocki, T., & Cierpiał-Wolan, M. (2019). Factors shaping the financial capability of low-income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187–198. https://doi.org/10.1111/ijcs.12498
Rashid, S., Bowra, Z. A., & Hussain, A. (2022). An Empirical Investigation of Financial Inclusion on Financial Wellbeing of Working Women: A Mediating Role of Financial Capability. Bulletin of Business and Economics, 11(1), 14–23.
Robb A. Cliff, & Woodyard S. Ann. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, 22(1), 60–70.
Sandi, K., Worokinasih, S., & Darmawan, A. (2020). Pengaruh Financial Knowledge Dan Financial Attitude Terhadap Financial Behavior Pada Youth Entrepreneur Kota Malang. Profit: Jurnal Administrasi Bisnis, Special Issue, 140–150. https://profit.ub.ac.id
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287–297. https://doi.org/10.1177/0165025413479476
Shih, T. Y., & Ke, S. C. (2014). Determinates of financial behavior: Insights into consumer money attitudes and financial literacy. Service Business, 8(2), 217–238. https://doi.org/10.1007/s11628-013-0194-x
Song, C. L., Pan, D., Ayub, A., & Cai, B. (2023). The Interplay Between Financial Literacy, Financial Risk Tolerance, and Financial Behaviour: The Moderator Effect of Emotional Intelligence. Psychology Research and Behavior Management, 16, 535–548. https://doi.org/10.2147/PRBM.S398450
Tahar, A., Riyadh, H. A., Sofyani, H., & Purnomo, W. E. (2020). Perceived ease of use, perceived usefulness, perceived security and intention to use e-filing: The role of technology readiness. Journal of Asian Finance, Economics and Business, 7(9), 537–547. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.537
Xiao, J. J., Chen, C., & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118(1), 415–432. https://doi.org/10.1007/s11205-013-0414-8
Yap, F. D., & Artates, J. R. (2023). Journal of Business and Management Studies Financial Literacy Level of Dry Market Vendors. 2014, 1–5. https://doi.org/10.32996/jbms
Ajzen, I. (2002). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior. Journal of Applied Social Psychology, 32(4), 665–683. https://doi.org/10.1111/j.1559-1816.2002.tb00236.x
Arifin, A. Z. (2017). The influence of financial knowledge, control and income on individual financial behavior. European Research Studies Journal, 20(3), 635–648.
Arifin, A. Z. (2018). Influence factors toward financial satisfaction with financial behavior as intervening variable on Jakarta area workforce. European Research Studies Journal, 21(1), 90–103.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: results of the OECD infe pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, 15(15), 1–73.
B. C. Pratama, I. Ismoyowati, and M. N. Innayah, “Livestock and Animal Specialities Company in ASEAN: Intellectual Capitals and Performances,” IOP Conf. Ser. Earth Environ. Sci., vol. 372, no. 1, 2019, doi: 10.1088/1755-1315/372/1/012014
Batty, M., Collins, J. M., & Odders-White, E. (2015). Experimental evidence on the effects of financial education on elementary school students’ knowledge, behavior, and attitudes. Journal of Consumer Affairs, 49(1), 69–96. https://doi.org/10.1111/joca.12058
Çera, G., Khan, K. A., Mlouk, A., & Brabenec, T. (2021). Improving financial capability: the mediating role of financial behaviour. Economic Research-Ekonomska Istrazivanja, 34(1), 1265–1282. https://doi.org/10.1080/1331677X.2020.1820362
Collins, J. M., & Odders-White, E. (2015). A framework for developing and testing financial capability education programs targeted to elementary schools. Journal of Economic Education, 46(1), 105–120. https://doi.org/10.1080/00220485.2014.976325
Daulay, “Strategi Pengembangan Ekonomi Kreatif,” Tansiq, vol. Jil. 1, Tidak, 2018.
Danes, S. M., & Haberman, H. R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Journal of Financial Counseling and Planning, 18(2), 48–60.
Faulcon Bowen, C. (2002). Financial knowledge of teens and their parents. Journal of Financial Counseling and Planning, 13(2), 93–102.
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh Financial Attitude,Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Jurnal Manajemen Teori Dan Terapan| Journal of Theory and Applied Management, 9(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hermansson, C., & Jonsson, S. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance, 29, 100450. https://doi.org/10.1016/j.jbef.2020.100450
I. Ismoyowati, B. C. Pratama, and M. N. Innayah, “Performative and economic analysis on local duck farming in Central Java - Indonesia,” J. Indones. Trop. Anim. Agric., vol. 45, no. 3, pp. 234– 242, 2020, doi: 10.14710/jitaa.45.3.234-242
J. Cohen, “Statistical Power Analysis,” Curr. Dir. Psychol. Sci., vol. 1, no. 3, pp. 98–101, 1992, doi: 10.1111/1467-8721.ep10768783.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5
M. N. Innayah and B. C. Pratama, “Board Diversity and Its Effects on Firm Performance and Risk: A Study in Banking Firms,” J. Account. Invest., vol. 22, no. 1, p. proofreading, 2021, doi: 10.18196/jai.v22i1.10005
Naiwen, L., Wenju, Z., Mohsin, M., Ur Rehman, M. Z., Naseem, S., & Afzal, A. (2021). The role of financial literacy and risk tolerance: An analysis of gender differences in the textile sector of Pakistan. Industria Textila, 72(3), 300–308. https://doi.org/10.35530/IT.072.03.202023
Nurdinda, W., Muslihat, A., & Putra, R. A. K. (2020). Pengaruh Regret Aversion Bias dan Risk Tolerance bagi Investor Muda Jawa Barat terhadap Keputusan Investasi. AKUNSIKA: Jurnal Akuntansi Dan Keuangan, 1, 30–38. https://doi.org/10.31963/akunsika.v1i1.1619
Nurjannah, N., Rasuli, M., & Rusli, R. (2016). Pengaruh Persepsi Kebermanfaatan, Persepsi Kemudahan, Kepuasan, Kecepatan, Keamanan Dan Kerahasiaan Terhadap Penggunaan Fasilitas E-Filing Sebagai Sarana Penyampaian Spt Masasecara Online Dan Realtime Bagi Wajib Pajak Badan Di Dumai. Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 4(1), 1828–1842.
Okello Candiya Bongomin, G., Ntayi, J. M., Munene, J. C., & Nkote Nabeta, I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072
Owusu, G. M. Y., Korankye, G., Yankah, N. Y. M., & Agyekum Donkor, J. B. (2023). Financial risk tolerance and its determinants: The perspective of personnel from security services in Ghana. Borsa Istanbul Review, 23(4), 852–864. https://doi.org/10.1016/j.bir.2023.02.005
Özer, G., & Yilmaz, E. (2011). Comparison of the Theory of Reasoned Action and the Theory of Planned Behavior: an Application on Accountants’ Information Technology Usage. African Journal of Business Management, 5(1), 50–58. http://www.academicjournals.org/AJBM
Potocki, T., & Cierpiał-Wolan, M. (2019). Factors shaping the financial capability of low-income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187–198. https://doi.org/10.1111/ijcs.12498
Rashid, S., Bowra, Z. A., & Hussain, A. (2022). An Empirical Investigation of Financial Inclusion on Financial Wellbeing of Working Women: A Mediating Role of Financial Capability. Bulletin of Business and Economics, 11(1), 14–23.
Robb A. Cliff, & Woodyard S. Ann. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, 22(1), 60–70.
Sandi, K., Worokinasih, S., & Darmawan, A. (2020). Pengaruh Financial Knowledge Dan Financial Attitude Terhadap Financial Behavior Pada Youth Entrepreneur Kota Malang. Profit: Jurnal Administrasi Bisnis, Special Issue, 140–150. https://profit.ub.ac.id
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287–297. https://doi.org/10.1177/0165025413479476
Shih, T. Y., & Ke, S. C. (2014). Determinates of financial behavior: Insights into consumer money attitudes and financial literacy. Service Business, 8(2), 217–238. https://doi.org/10.1007/s11628-013-0194-x
Song, C. L., Pan, D., Ayub, A., & Cai, B. (2023). The Interplay Between Financial Literacy, Financial Risk Tolerance, and Financial Behaviour: The Moderator Effect of Emotional Intelligence. Psychology Research and Behavior Management, 16, 535–548. https://doi.org/10.2147/PRBM.S398450
Tahar, A., Riyadh, H. A., Sofyani, H., & Purnomo, W. E. (2020). Perceived ease of use, perceived usefulness, perceived security and intention to use e-filing: The role of technology readiness. Journal of Asian Finance, Economics and Business, 7(9), 537–547. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.537
Xiao, J. J., Chen, C., & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118(1), 415–432. https://doi.org/10.1007/s11205-013-0414-8
Yap, F. D., & Artates, J. R. (2023). Journal of Business and Management Studies Financial Literacy Level of Dry Market Vendors. 2014, 1–5. https://doi.org/10.32996/jbms
Published
2025-01-05
How to Cite
ADHISTI, Raya Anandita Puspaning et al.
FINANCIAL BEHAVIOR OF MSMEs : DO FINANCIAL KNOWLEDGE, FINANCIAL ATTITUDE, AND FINANCIAL RISK TOLERANCE MATTERS?.
SAR (Soedirman Accounting Review) : Journal of Accounting and Business, [S.l.], v. 9, n. 02, p. 180-192, jan. 2025.
ISSN 2598-0718.
Available at: <https://jos.unsoed.ac.id/index.php/sar/article/view/14257>. Date accessed: 18 apr. 2025.
doi: https://doi.org/10.32424/1.sar.2024.9.02.14257.
Section
Articles
.jpg)
