Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness

This study attempted to examine the relationship between financial attitudes, personality traits and mediating factors of financial literacy with the level of indebtedness. The survey involved 600 respondents who visited Credit Counselling and Debt Management Agency (AKPK) Kuala Lumpur Branch to res...

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Main Author: Zaidi, Mohammad
Format: Thesis
Language:English
English
Published: 2022
Subjects:
Online Access:https://etd.uum.edu.my/10649/1/permission%20to%20deposit-grant%20the%20permission-s902797.pdf
https://etd.uum.edu.my/10649/2/s902797_01.pdf
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spelling my.uum.etd.106492023-10-09T00:45:57Z https://etd.uum.edu.my/10649/ Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness Zaidi, Mohammad HG Finance This study attempted to examine the relationship between financial attitudes, personality traits and mediating factors of financial literacy with the level of indebtedness. The survey involved 600 respondents who visited Credit Counselling and Debt Management Agency (AKPK) Kuala Lumpur Branch to restructure their existing loans with various financial institutions. 600 self-administered questionnaires were distributed, from which only 480 were used for further analysis. The data were analysed through Structural Equation Modelling (SEM) using the AMOS (Analysis of Moment Structures) software. This study found that financial attitude was significantly and negatively correlated with the level of indebtedness. This finding indicated that with a positive financial attitude, the level of indebtedness could be reduced. Besides that, financial literacy mediated the relationship between financial attitude and indebtedness; however, the mediating effect was small. The latent constructs for personality traits in this study, which consisted of formative constructs of agreeableness, extraversion, conscientiousness, neuroticism, and openness to experience, were found to have significant correlations with the level of indebtedness; however, the relationships were weak. Neuroticism had the weakest relationship with the level of indebtedness. This indicated that neuroticism was associated with a low level of indebtedness as compared to other traits. Additionally, financial literacy was also found to mediate the relationship between personality traits and the level of indebtedness. The main contribution of the study was in determining the influence of psychological factors besides financial literacy towards the level of indebtedness. The study's limitation was that it involved respondents who were presumably having financial problems who came to AKPK to restructure or reschedule their existing loans with banks and financial institutions. For future research, the same model can be applied to other populations in different geographical areas. 2022 Thesis NonPeerReviewed text en https://etd.uum.edu.my/10649/1/permission%20to%20deposit-grant%20the%20permission-s902797.pdf text en https://etd.uum.edu.my/10649/2/s902797_01.pdf Zaidi, Mohammad (2022) Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness. Doctoral thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HG Finance
spellingShingle HG Finance
Zaidi, Mohammad
Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
description This study attempted to examine the relationship between financial attitudes, personality traits and mediating factors of financial literacy with the level of indebtedness. The survey involved 600 respondents who visited Credit Counselling and Debt Management Agency (AKPK) Kuala Lumpur Branch to restructure their existing loans with various financial institutions. 600 self-administered questionnaires were distributed, from which only 480 were used for further analysis. The data were analysed through Structural Equation Modelling (SEM) using the AMOS (Analysis of Moment Structures) software. This study found that financial attitude was significantly and negatively correlated with the level of indebtedness. This finding indicated that with a positive financial attitude, the level of indebtedness could be reduced. Besides that, financial literacy mediated the relationship between financial attitude and indebtedness; however, the mediating effect was small. The latent constructs for personality traits in this study, which consisted of formative constructs of agreeableness, extraversion, conscientiousness, neuroticism, and openness to experience, were found to have significant correlations with the level of indebtedness; however, the relationships were weak. Neuroticism had the weakest relationship with the level of indebtedness. This indicated that neuroticism was associated with a low level of indebtedness as compared to other traits. Additionally, financial literacy was also found to mediate the relationship between personality traits and the level of indebtedness. The main contribution of the study was in determining the influence of psychological factors besides financial literacy towards the level of indebtedness. The study's limitation was that it involved respondents who were presumably having financial problems who came to AKPK to restructure or reschedule their existing loans with banks and financial institutions. For future research, the same model can be applied to other populations in different geographical areas.
format Thesis
author Zaidi, Mohammad
author_facet Zaidi, Mohammad
author_sort Zaidi, Mohammad
title Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
title_short Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
title_full Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
title_fullStr Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
title_full_unstemmed Examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
title_sort examining financial attitude, personality traits and mediating factor of financial literacy towards level of indebtedness
publishDate 2022
url https://etd.uum.edu.my/10649/1/permission%20to%20deposit-grant%20the%20permission-s902797.pdf
https://etd.uum.edu.my/10649/2/s902797_01.pdf
https://etd.uum.edu.my/10649/
_version_ 1779441887251267584
score 13.244404