The Moderating Influence of Financial Literacy on the Relationship of Financial Attitudes, Financial Self-Efficacy, and Credit Decision-Making Intensity

Authors

  • LD Gadi Djou Accounting Department, Flores University, Sam Ratulangi Street
  • Fitri Lukiastuti STIE Bank BPD Jateng

DOI:

https://doi.org/10.9744/jak.23.2.69-82

Keywords:

Financial literacy, financial attitudes, financial self-efficacy, credit decision making intensity, SMEs, people’s business credit (KUR)

Abstract

This study aims to determine the role of financial literacy moderation on the relationship between financial attitudes and financial self-efficacy on the intensity of decision-making of the SMEs that are also the customers of KUR BNI in Ende Regency amidst the COVID-19 pandemic situation. The objects of this research are all owners of large and retail trade SMEs, car and motorcycle repairs in Ende Regency (58 SMEs). The data analysis techniques used in this research is the Moderated Regression Analysis (MRA). The results are: (1) financial attitudes has positive influence on the credit decision-making intensity on SMEs, (2) financial self-efficacy has positive influence on the credit decision-making intensity of SMEs, (3) there is a moderation impact of financial literacy on the relationship between financial attitudes and credit decision making intensity for SMEs, and (4) financial literacy is able to moderate the relationship between self-efficacy and credit decision making intensity for SMEs.

References

Abdullah, S. M. (2019). Social Cognitive Theory: A Bandura Thought Review published in 1982-2012. Psikodimensia, 18(1), 85. https://doi. org/10.24167 /psidim .v18i1.1708

Adam, A. M., Frimpong, S., & Boadu, M. O. (2017). literacy and financial planning: Implication for financial well-being of retirees. Business and Economic Horizons, 13(2), 224–236. https://doi.org/10.15208/ beh.2017.17

Ajzen, I. (2011). The theory of planned behaviour: Reactions and reflections. Psychology and Health, 26(9), 1113–1127. https://doi. org/10.1080/08870446. 2011.613995

Amran, N. A. (2011). the Effect of Owner’s Gender and Age To Firm Performance : a Review. Journal of Global Business and Economics, 2(1), 104–116.

Aren, S., & Dinç Aydemir, S. (2015). The Moderation of Financial Literacy on the Relation-ship Between Individual Factors and Risky Investment Intention. International Business Research, 8(6). https://doi.org/10.5539/ ibr.v8n6p17

Arianti, B. F. (2017). The Influence of Financial Literacy, Financial Behavior and Income on Investment Decision. European Research Studies Journal, 20(3A), 635–648.Arianti, B. F. (2017). The Influence of Financial Literacy, Financial Behavior and Income on Investment Decision. European Research Studies Journal, 20(3A), 635–648.

Arifin, A. Z. (2017). The influence of financial knowledge, control and income on individual financial behavior. European Research Studies Journal, 20(3), 635–648.

Bandura,Albert. (1999). Social Cognitive Theory: An Agentic Perspective. Asian Journal of Social Psychology, 2(1), 1–26. http://search. ebscohost.com/login.aspx?direct=true& db=aph&%2338;AN=4369846&%2338;site=ehost-live

Bandura, A. (1982). Self-efficacy mechanism in human agency. American Psychologist, 37(2), 122–147. https://doi.org/10.1037/0003-066X.37. 2.122

Bandura, A. (2006). Toward a Psychology of Human Agency. Perspectives on Psychological Science, 1(2), 164–180. https://doi.org/10.1111/ j.1745-6916.2006.000 11x

Bouteska, A., & Regaieg, B. (2020). Loss aversion, overconfidence of investors and their impact on market performance evidence from the US stock markets. Journal of Economics, Finance and Administrative Science, 25(50), 451–478. https:// doi.org/10.1108/JEFAS-07-2017-0081

Burger, K., & Samuel, R. (2017). The Role of Perceived Stress and Self-Efficacy in Young People’s Life Satisfaction: A Longitudinal Study. Journal of Youth and Adolescence, 46(1), 78–90. https://doi.org/10.1007/s10964-016-0608-x

Butterbaugh, S. M., Ross, D. B., & Campbell, A. (2020). My Money and Me: Attaining Financial Independence in Emerging Adulthood Through a Conceptual Model of Identity Capital Theory. Contemporary Family Therapy, 42(1), 33–45. https://doi.org/10.1007/ s10591-019-09515-8

Chatzoglou, P. D., & Vraimaki, E. (2009). Know-ledge-sharing behaviour of bank employees in Greece. Business Process Management Journal, 15(2), 245–266. https://doi.org/10. 1108/14637150910949470

Damanik, Y. R., Lumbanraja, P., & Sinuling¬ga, S. (2020). The Effect of Talent Management and Self-Efficacy through Motivation toward Performance of Population and Civil Notice of Simalungun District. International Journal of Research and Review (Ijrrjournal.Com), 7(1), 1.

Dewi, V. I., Febrian, E., Effendi, N., & Anwar, M. (2020). Financial literacy among the millennial generation: Relationships between knowledge, skills, attitude, and behavior. Australasian Accounting, Business and Finance Journal, 14(4), 24–37. https://doi.org/10.14453/ aabfj.v14i4.3

Efriyenty, D., & Janrosl, S. E. (2017). Dian Efriyenty dan Viola Syukrina E Janrosl Dosen Universitas Putera Batam (Naskah diterima: 22 April 2017, disetujui: 22 Mei 2017). 1.

Etemad, H. (2020). Managing uncertain consequences of a global crisis: SMEs encountering adversities, losses, and new opportunities. Journal of International Entrepreneurship, 18(2), 125–144. https://doi.org/10.1007/s10843-020-00279-z

Fanani, Z., & Saudale, G. E. K. (2019). Influence of Information Asymmetry and Self-Efficacy on Budgetary Slack: An Experimental Study. Jurnal Akuntansi Dan Keuangan, 20(2), 62. https://doi.org/10.9744/jak.20.2.62-72

Farrell, L., Fry, T. R. L., & Risse, L. (2016). The significance of financial self-efficacy in explaining women’s personal finance behaviour. Journal of Economic Psychology, 54, 85–99. https://doi.org/10. 1016/j.joep.2015.07.001

Fishbein, M. (2021). The Influence of Attitudes on Behavior. The Handbook of Attitudes, January 2005, 187–236. https://doi.org/10. 4324/9781410612823-13

Fishbein, M., & Ajzen, I. (2005). The Influence of Attitudes on Behavior. The Handbook of Attitudes, July, 173–222.

Fisher, P. J., & Yao, R. (2017). Gender differences in financial risk tolerance. Journal of Economic Psychology, 61(March), 191–202. https://doi.org/10.1016/j.joep.2017.03.006

Fornero, E., & Monticone, C. (2011). Financial literacy and pension plan participation in Italy. Journal of Pension Economics and Finance, 10(4), 547–564. https://doi.org/10.1017/S1474 747211000473

Foulstone, A. R., & Kelly, A. (2019). Enhancing academic self-efficacy and performance among fourth year psychology students: Findings from a short educational intervention. International Journal for the Scholarship of Teaching and Learning, 13(2). https://doi.org/ 10.20429/ijsotl.2019.130209

Ghosh, S., & Vinod, D. (2017). What Constrains Financial Inclusion for Women? Evidence from Indian Micro data. World Development, 92, 60–81. https://doi.org/10.1016/j. worlddev.2016.11.011

Harianti, A., Malinda, M., Tjandra, M., & Kambuno, D. (2021). Descriptive Analysis of Financial Literacy SMEs in Bandung. Inter-national Journal of Trade, Economics and Finance, 12(1). https://doi.org/10.18178/ijtef. 2021.12.1.686

Harnoko, A. D., & Herianingrum, S. (2020). Analisis Teori Perilaku Yang Direncanakan Terhadap Niat Warga Surabaya Untuk Kredit Pemilikan Rumah Syariah Di De Rayyan Developer Property. Jurnal Ekonomi Syariah Teori Dan Terapan, 7(8), 1527. https://doi.org/ 10.20473/vol7iss20208pp1527-1537

Herdjiono, I., & Damanik, L. A. (2016). Penga¬ruh 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

Hill, R. J., Fishbein, M., & Ajzen, I. (1977). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Contemporary Sociology, 6(2), 244. https://doi.org/ 10.2307/2065853

HIRA, T. K. (1997). Financial attitudes, beliefs and behaviours: differences by age. Journal of Consumer Studies and Home Economics, 21(3), 271–290. https://doi.org/10.1111/j.1470-6431.1997.tb00288.x

Humaira, I., & Sagoro, E. M. (2018). Pengaruh Pengetahuan Keuangan, Sikap Keuangan, Dan Kepribadian Terhadap Perilaku Manajemen Keuangan Pada Pelaku Umkm Sentra Kerajinan Batik Kabupaten Bantul. Nominal, Barometer Riset Akuntansi Dan Manajemen, 7(1). https://doi.org/10.21831/nominal.v7i1. 19363

Janor, H., Yakob, R., Hashim, N. A., Aniza, C., & Wel, C. (2016). Financial literacy and investment decisions in Malaysia and United Kingdom: A comparative analysis. Geografia : Malaysian Journal of Society and Space, 12(2), 106–118.

Jawaheer, B. M., & Manual, V. (2016). Gender Differences in Investment Decision Making Among the Working Class of Mauritius. Imperial Journal of Interdisciplinary Research, 2(9), 2454–1362. http:// www.onlinejournal.in

Khoirunnisaa, J., & Johan, I. R. (2020). The Effects of Financial Literacy and Self-Control towards Financial Behavior among High School Students in Bogor. Journal of Consumer Sciences, 5(2), 73–86. https://doi.org/10. 29244/jcs.5.2.73-86

Kiki, P. E. (2013). Analisis Perkembangan Penyaluran Kredit Cepat Aman (KCA) untuk Meningkatkan Pendapatan PT. Pegadaian (Persero) Cabang Bandung Pasar Atas Tahun 2007-2014. 53(9), 1689–1699.

Kumar, S., Watung, C., Eunike, J., & Liunata, L. (2017). The Influence of Literacy towards Financial Behavior and Its Implication on Financial Decision: A Survey of President University Student in Cikarang-Bekasi. FIRM: Journal of Management Studies, 2(1), 14–23.

Lie, R. L., & Wiagustini, N. L. P. (2020). The Effect of Financial Literacy And Sociodemographic Factors on Millennial’s Investment Decision-Making Behavior. International Journal of Economics and Management Studies, 7(7), 132–139. https://doi.org/10.14445/239391 25/ijems-v7i7p116

Lown, J. M. (2011). 2011 oustanding AFCPE® Conference paper: Development and validation of a Financial Self-Efficacy Scale. Journal of Financial Counseling and Planning, 22(2), 54–63.

Lown, J. M., Kim, J., Gutter, M. S., & Hunt, A. T. (2015). Self-efficacy and Savings Among Middle and Low Income Households. Journal of Family and Economic Issues, 36(4), 491–502. https://doi.org/ 10.1007/s10834-014-9419-y

Marlinah, L. (2020). Peluang dan Tantangan UMKM dalam Upaya Memperkuat Perekono-mian Nasional Tahun 2020 Ditengah Pandemi Covid 19. Jurnal Ekonomi, 22(2), 118–124.

Mochammad Rizaldy Insan Baihaqqy, & Sugiyanto. (2020). Investment Decisions Of Investors Based On Generation Groups. Coopetition : Jurnal Ilmiah Manajemen, 11(3), 189–196. https://doi.org/10.32670/coopetition. v11i3.136

Montford, W., & Goldsmith, R. E. (2016). How gender and financial self-efficacy influence investment risk taking. International Journal of Consumer Studies, 40(1), 101–106. https://doi. org/10.1111/ijcs.12219

Myšková, R., & Doupalová, V. (2015). Approach to Risk Management Decision-Making in the Small Business. Procedia Economics and Finance, 34(15), 329–336. https://doi.org/10. 1016/s2212-5671(15)01637-8

Ngui, G. K., & Lay, Y. F. (2020). The effect of emotional intelligence, self-efficacy, subjective well-being and resilience on student teachers’ perceived practicum stress: A Malaysian case study. European Journal of Educational Rese-arch, 9(1), 277–291. https://doi.org/10.12973/ eu-jer.9.1.277

Niazi, M. K. S., & Malik, Q. A. (2019). Financial attitude and investment decision making- moderating role of financial literacy. NUML International Journal of Business & Management, 14(1), 102–115. https://www.numl.edu. pk/journals/subjects/1564377799Article-8.pdf

Noman, S., Bashir, T., & Javed, S. (2020). Taking charge of your life: Locus of control, self-efficacy and saving behavior. International Journal of Advanced Science and Technology, 29(6 Special Issue), 569–587.

Noor, N., Batool, I., & Arshad, H. M. (2020). Financial literacy, financial self-efficacy and financial account ownership behavior in Pakistan. Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039. 2020.1806479

Panos, G. A., & Wilson, J. O. S. (2020). Financial literacy and responsible finance in the FinTech era: capabilities and challenges. European Journal of Finance, 26(4–5), 297–301. https://doi.org/10.1080/1351847X.2020. 1717569

Pradiningtyas, T. E., & Lukiastuti, F. (2019). Pengaruh Pengetahuan Keuangan dan Sikap Keuangan terhadap Locus of Control dan Perilaku Pengelolaan Keuangan Mahasiswa Ekonomi. Jurnal Minds: Manajemen Ide Dan Inspirasi, 6(1), 96. https://doi.org/10.24252/ minds.v6i1.9274

Pumptow, M., & Brahm, T. (2020). Students’ Digital Media Self-Efficacy and Its Importance for Higher Education Institutions: Development and Validation of a Survey Instrument. Technology, Knowledge and Learning, 0123456789. https://doi.org/10.1007/s10758-020-09463-5

Putri, M. H., & Pamungkas, A. S. (2019). Pengaruh Financial Knowledge, Locus of Control dan Financial Self Efficacy Terhadap Financial Behavior. Jurnal Manajerial Dan Kewirausahaan, I(4), 890–889.

Qamar, M. A. J., Khemta, M. A. N., & Jamil, H. (2016). How Knowledge and Financial Self-Efficacy Moderate the Relationship between Money Attitudes and Personal Financial Management Behavior. European Online Journal of Natural and Social Sciences, 5(2), 296–308. https://core.ac.uk/download/pdf/ 230044727. pdf

Rasheed, R., & Siddiqui, S. H. (2019). Attitude for inclusive finance: influence of owner-managers’ and firms’ characteristics on SMEs financial decision making. Journal of Economic and Administrative Sciences, 35(3), 158–171. https://doi.org/10.1108/jeas-05-2018-0057

Rosli Mahmood, Mahmood, R., Aarakit, S. M., Alarape, A. A., Al-swidi, A. K., Al-Hosam, A., Aminu, I. M., Shariff, M. N. M., Zhongfeng Su, En Xie, and Y. L., Ahmed, I., Ali, G., Ramzan, M., Andersén, J., Anderson, B. S., Eshima, Y., Arbaugh, J., Larry, W., Camp, S., Arief, M., … Me, N. (2013). Entrepreneurial orientation and business performance of women-owned small and medium enterprises in Malaysia : Competitive advantage as a mediator. International Journal of Business and Social Science, 4(1), 82–90. https://doi.org/10.1177/0266242612455 034

Sagita, A. A., Indrawati, L. R. I., & Jalunggono, G. (2019). Analisis Faktor-Faktor Yang Mempengaruhi Penyaluran KMK terhadap UMKM pada Bank Umum di Indonesia Tahun 2014-2018. Dinamic: Directory Journal of Economic, 1(4), 360–370.

Sugiyono. (2008). Metode penelitian pendidikan: (pendekatan kuantitatif, kualitatif dan R & D). Alfabeta.

Tan, C. S., Ooi, H. Y., & Goh, Y. N. (2017). A moral extension of the theory of planned behavior to predict consumers’ purchase intention for energy-efficient household appliances in Malaysia. Energy Policy, 107 (January 2016), 459–471. https://doi.org/10.1016 /j.enpol. 2017.05.027

Vargo Christian L. Tobing. (2020). Analisis Suku Bunga Kredit Dan Jaminan Kredit Terhadap Keputusan Pengambilan Kredit Pada Perusahaan Pembiayaan Di Kota Batam. Jurnal Akuntansi Dan Investasi, 3(2), 139–150. http://ejournal.unira.ac.id/index. php/ jurnal_aktiva/article/view/925

Widiyati, S., Wijayanto, E., & Prihartiningsih, P. (2018). Financial Literacy Model at Micro Small Medium Entreprise (SMEs). MIMBAR : Jurnal Sosial Dan Pembangunan, 34(2), 255–264. https://doi.org/10.29313/mimbar.v34i2. 2914

Xiao, J. J., Chatterjee, S., & Kim, J. (2014). Factors associated with financial independence of young adults. International Journal of Consumer Studies, 38(4), 394–403. https://doi.org/ 10.1111/ijcs.12106

Yogasnumurti, R. R., Sadalia, I., & Irawati, N. (2020). The effect of financial attitude and financial knowledge on personal financial management of university students moderated by gender. International Journal of Research and Review, 7(2), 219–229.

Yokoyama, S. (2019). Academic self-efficacy and academic performance in Online Learning: A mini review. Frontiers in Psychology, 9(JAN), 1–4. https://doi.org/10.3389/fpsyg.2018.02794

Downloads

Published

2021-11-23