Does Financial Decision Mediate the Influence of Behavioral Finance on EVA? Empirical Evidence from MSMES in Bali

Laksmana, Komang Agus Rudi Indra; Wiagustini, Luh Putu; Purbawangsa, Ida Bagus Anom; Ramantha, I Wayan

doi:10.5373/jardcs/v12sp8/20202514

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“…decision; Representativeness, an attitude that tends to associate new events with known events in decision making; and Herding, lack confidence in making decisions, because too much information from the "herd" can reduce performance and. The behavioral financial aspect contributes to eliminating negative deviations and errors in the financial decision-making process (Sedliačiková et al, 2020), having a negative impact on financial decisions so that it can reduce financial performance (Laksmana et al, 2020). Behavioral finance has a negative impact on the financial performance of SMEs (Raveendra et al, 2018).…”

Section: Discussionmentioning

confidence: 99%

“…Behavioral finance variables are reflected by three indicators modified from research (Laksmana et al, 2020) including ( 1) Overconfidence (X21), attitudes related to excessive self-confidence in making decisions, (2) Representativeness (X22) , an attitude that tends to associate new events with events that have been known in making decisions, which have the consequences of making mistakes in making decisions regarding the interest rate of Third Party Funds that are too high and the interest rate too low, (3) Herding (X23), lack of attitude confident in making decisions, because there is too much information from the "herd" which results in bubble information so that financial decisions are inaccurate.…”

Section: H3mentioning

confidence: 99%

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Financial Literacy and Financial Behavior Encouraging Business Sustainability by Mediation of Financial Performance

2023

QAS

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Village financial institutions based on local wisdom have benefits for various community activities and developing businesses in the village, so that they become the main indicator in advancing village economic growth. Many village financial institutions do not operate due to competition with formal financial institutions. This study aims to analyze the effect of financial literacy on financial performance, sustainability and financial behavior; the influence of financial behavior on financial performance and sustainability as well as the influence of financial performance on sustainability. The sample of this research is Village Credit Institutions totaling 100 units in districts/cities in Bali which are determined by the slovin formula. The analysis technique using SEM-PLS, it was found that increasing financial literacy was able to improve financial performance and sustainability, as well as reduce behavioral financial bias; increasing behavioral financial bias can reduce financial performance and sustainability, and improving financial performance can improve sustainability easing financial literacy was able to improve financial performance and sustainability, as well as reduce behavioral finance bias; increasing behavioral finance can reduce financial performance and sustainability, and increasing financial performance can increase sustainability

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Section: Discussionmentioning

confidence: 99%

Section: H3mentioning

confidence: 99%