A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude

Lim, Thien Sang; Mail, Rasid; Karim, Mohd Rahimie Abd; Ulum, Zatul Karamah Ahmad Baharul; Jaidi, Junainah; Noordin, Raman

doi:10.1016/j.jbef.2018.08.001

Cited by 40 publications

(44 citation statements)

References 22 publications

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“…The statement indicated strong evidence that the higher degree of FA could influenced youth to engage in positive financial practices and the stronger is their tendency towards engaging in positive money management practices. This finding is consistent with that of many studies that revealed positive FA could lead to individuals' desirable behavioural intention (Agnew & Harrison, 2015;Lim et al, 2018).…”

Section: Discussionsupporting

confidence: 92%

Prudent Financial Behaviour among Youth: The Role of Financial Attitude

Bakar¹,

Bakar²

2020

IJMH

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This paper to seek discuss the importance and the role of Financial Attitude (FA) in determine factors to prudent financial behaviour among youth. Arising of financial problems among young age groups in today life has attracted attention of stakeholders in many countries globally because the groups considered as backbone and future country leaders. This paper seeks to discuss the function of FA in ensuring prudent financial decision and improved youth financial behaviour. Further, this paper later expanded from concept and definitions of FA to the effectiveness and the relationship of FA with prudent financial behaviour. Significantly, FA aims at making individuals more financial literate, transform youth to change for prudent financial decisions and provide them with the skills and competencies to take more responsibilities in their personal financial management.

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Section: Discussionsupporting

confidence: 92%

Prudent Financial Behaviour among Youth: The Role of Financial Attitude

Bakar¹,

Bakar²

2020

IJMH

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“…It is noted that financial knowledge can influence risk perception, attitude toward financial investment, and behavioural intention toward financial investment (Lim et al, 2018). As a type of information that is kept in memory, financial knowledge can be utilised by individuals to produce innate and useful property of the knowledge as well as make reasoning and explanation regarding their financial decisions (Alba and Hutchinson, 2000).…”

Section: ⅱ Literature Reviewmentioning

confidence: 99%

An Investigation of Financial Investment Intention using Covariance-Based Structural Equation Modelling

Lim¹,

Mail²,

Karim³

et al. 2020

Glob Bus Financ Rev

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Decision-making process about financial investment is complicated. Relying on modern financial theory to explain behaviours of individual investors is inadequate because it focuses on the objective risk as the determinant for making investment decisions under the assumption that individuals are rational. The current study, which was built from the financial, sociological and psychological perspectives, investigated the predictors of risk perception and determined the association of risk perception and attitude toward financial investment intention. This study served the purpose of unravelling the complexity of the financial investment decision-making process among individuals. Design/methodology/approach: The research framework was based on Perception Formation Model (PFM) with further support from the Theory of Planned Behaviour, decision making models under risk, and knowledge-attitudebehaviour model. Purposive-sampling method was adopted. The dataset, which consisted a total of 492 responses from income earners below the age of prime savings years were entered for analysis. Twelve hypotheses were tested using the Analysis of Moment Structures (AMOS) statistical software. Findings: Measurement-model assessment revealed the data fitted well to the research model Results from the structural-model assessment revealed subjective knowledge, peer influence, internet influence, and risk propensity had a significant relationship with favourable risk perception. Consistent with the PFM proposition, it was found favourable risk perception significantly related to higher intention toward financial investment. Research limitations/implications: The resultant outcomes strengthen the understanding of how financial investment decision is performed by individuals, which is crucial in the personal-finance industry, especially in promoting a long-term and meaningful client-advisor relationship. Interestingly, objective knowledge, which measured the actual level of financial knowledge was found to be insignificantly associated with risk perception and intention toward financial investment. As a sizeable financial literature posited financial knowledge has impact on decision-making process, future study could perhaps examine whether objective knowledge could contextually alter the relationship between predictors and the endogenous variable. Originality/value: The study has successfully identified several predictors for risk perception about financial investment and provided an empirical link for knowledge-perception-attitude-intention, thus, enriching the behavioural finance literature. The research model was robust as it was formulated based on the three major pillars of behavioral finance, namely: financial, sociological, and psychological perspectives.

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“…During the process of literature review, it was found that risk perception plays a mediating role. For example, Lim [ 96 ] found that the mediation effect of risk perception is significant in the continuous positive relationship between financial knowledge and financial behavior investment intention. In addition, Boo [ 97 ] pointed out that the understanding of body mass index (BMI) and weight perception has a clear correlation with efforts of weight loss.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Risk Perception and Coping Behavior of Construction Workers on Occupational Health Risks—A Case Study of Nanjing, China

Liu

et al. 2021

IJERPH

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To reduce harm caused by occupational health risks of construction workers exposed to working environments, especially those for interior decoration, it is crucial for them to actively recognize and prevent these risks. Therefore, how to improve their occupational health risks perception and regulate their coping behaviors should be of great concern. However, most prior studies target construction worker safety, and little research focuses on risk analysis from the psychological level of workers. Hence, construction workers’ occupational health risk perception level and coping behavior level in Nanjing and the influencing factors were analyzed through statistical analysis with 341 valid questionnaires. Bootstrapping was applied to test the mediating effects of risk perception on the proposed factors and coping behaviors. This study revealed that construction workers have a high-level of occupational health risk perception, yet low-level coping behavior. Gender, age, education level, and unit qualification cause differences in individual risk perception level. Personal knowledge and group effects significantly affect the level of risk perception, which subsequently affect coping behavior. Education level, monthly income, and personal knowledge influence the coping behavior through risk perception. Recommendations were put forward for risk perception and coping behavior improvement from the perspectives of construction workers themselves, enterprises, and governments. This study sheds new light for research areas of occupational health and risk management and provides beneficial practice for improving construction workers’ responses to occupational health risks.

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A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude

Cited by 40 publications

References 22 publications

Prudent Financial Behaviour among Youth: The Role of Financial Attitude

Prudent Financial Behaviour among Youth: The Role of Financial Attitude

An Investigation of Financial Investment Intention using Covariance-Based Structural Equation Modelling

Risk Perception and Coping Behavior of Construction Workers on Occupational Health Risks—A Case Study of Nanjing, China

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