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Financial management practices predicting participation of family in risky asset

In pursuing high expected return from investment, families are willing to sacrifice the high expected risk associated with stock. This study is designed to focus on the ability of financial management practices to predict participation of Malaysian family in risky asset. Micro-data are obtained thro...

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Main Authors: Abdul Rahim @ Abdul Wahab, Husniyah, Abdul Samad, M. Fazilah
Format: Conference or Workshop Item
Language:English
Published: 2012
Online Access:http://psasir.upm.edu.my/id/eprint/57728/1/I2249-Husniyah%20Abdul%20Rahim%20and%20M%20%281%29.pdf
http://psasir.upm.edu.my/id/eprint/57728/
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spelling my.upm.eprints.577282017-10-25T03:11:55Z http://psasir.upm.edu.my/id/eprint/57728/ Financial management practices predicting participation of family in risky asset Abdul Rahim @ Abdul Wahab, Husniyah Abdul Samad, M. Fazilah In pursuing high expected return from investment, families are willing to sacrifice the high expected risk associated with stock. This study is designed to focus on the ability of financial management practices to predict participation of Malaysian family in risky asset. Micro-data are obtained through questionnaire responses and self-administered by 800 family financial managers. Quota sampling used a ratio of 60 to 40 for the urban and rural areas in Peninsula Malaysia. Information on socio-economic characteristics, time orientation, risk preference and financial management practices are gathered. Stock is taken as risky asset, thus family participating in stock is said to participate in risky assets. Results from binary logistic regression revealed that for the likelihood to participate in risky asset, a family saves more for short-term and long-term financial needs, and purchases insurance to overcome various financial risks. However, doing record-keeping does not predict much of the occurrence of participation in risky assets. Credit practices construct is inversely predicting the probability to invest in risky asset. Hence, families participating in risky assets performed other financial practices to hedge against financial risks. Consumers themselves should ensure that they are financially prepared via high liquidity in terms of savings and managing risk appropriately to cushion them from financial losses. Their financial preparedness would most probably lead to enhanced wellbeing, financially and psychologically. 2012 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/57728/1/I2249-Husniyah%20Abdul%20Rahim%20and%20M%20%281%29.pdf Abdul Rahim @ Abdul Wahab, Husniyah and Abdul Samad, M. Fazilah (2012) Financial management practices predicting participation of family in risky asset. In: 2nd International Conference on Arts, Social Sciences & Technology (ICAST 2012), 3-5 Mar. 2012, Penang, Malaysia. (pp. 1-10).
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description In pursuing high expected return from investment, families are willing to sacrifice the high expected risk associated with stock. This study is designed to focus on the ability of financial management practices to predict participation of Malaysian family in risky asset. Micro-data are obtained through questionnaire responses and self-administered by 800 family financial managers. Quota sampling used a ratio of 60 to 40 for the urban and rural areas in Peninsula Malaysia. Information on socio-economic characteristics, time orientation, risk preference and financial management practices are gathered. Stock is taken as risky asset, thus family participating in stock is said to participate in risky assets. Results from binary logistic regression revealed that for the likelihood to participate in risky asset, a family saves more for short-term and long-term financial needs, and purchases insurance to overcome various financial risks. However, doing record-keeping does not predict much of the occurrence of participation in risky assets. Credit practices construct is inversely predicting the probability to invest in risky asset. Hence, families participating in risky assets performed other financial practices to hedge against financial risks. Consumers themselves should ensure that they are financially prepared via high liquidity in terms of savings and managing risk appropriately to cushion them from financial losses. Their financial preparedness would most probably lead to enhanced wellbeing, financially and psychologically.
format Conference or Workshop Item
author Abdul Rahim @ Abdul Wahab, Husniyah
Abdul Samad, M. Fazilah
spellingShingle Abdul Rahim @ Abdul Wahab, Husniyah
Abdul Samad, M. Fazilah
Financial management practices predicting participation of family in risky asset
author_facet Abdul Rahim @ Abdul Wahab, Husniyah
Abdul Samad, M. Fazilah
author_sort Abdul Rahim @ Abdul Wahab, Husniyah
title Financial management practices predicting participation of family in risky asset
title_short Financial management practices predicting participation of family in risky asset
title_full Financial management practices predicting participation of family in risky asset
title_fullStr Financial management practices predicting participation of family in risky asset
title_full_unstemmed Financial management practices predicting participation of family in risky asset
title_sort financial management practices predicting participation of family in risky asset
publishDate 2012
url http://psasir.upm.edu.my/id/eprint/57728/1/I2249-Husniyah%20Abdul%20Rahim%20and%20M%20%281%29.pdf
http://psasir.upm.edu.my/id/eprint/57728/
_version_ 1643836574071259136
score 13.211869

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