Financial Behavior of Indonesian Moslem Students Scholarship Recipients: The Role of Locus of Control and Financial Knowledge

Abstract

In terms of financial, each individual has its own variables that determines their decision making. Based on the previous researches, individual financial behavior was impacted by internal factors of individual. Those internal factors are locus of control and financial knowledge. Those factors have role for individual in performing financially. This study aimed to determine the effect of locus of control and financial knowledge on financial behavior. This type of research was quantitative research. According to the level of clarity, this research used associative problem formulation. The sample in this study were 246 respondents. While the types of data used were primary and secondary data, with data collection techniques using a questionnaire. Data had passed the validity and reliability test before the process of data analysis. The data analysis technique used was the classic assumption test, multiple linear regression analysis, and hypothesis testing. Data passed all the requirements of classical assumption in order to proceed multiple regression analysis. The results of this study indicated that locus of control and financial knowledge simultaneously affected financial behavior. The results also showed that locus of control and financial knowledge partially affect financial behavior.

Mediating Effect of Financial Behaviour on the Relationship Between Perceived Financial Wellbeing and Its Factors Among Low-Income Young Adults in Malaysia

“…The present study contributes to the literature by incorporating financial behaviour as a mediator between LOC and perceived FWB, which is scant in the literature. Past studies have usually examined the direct relationship between LOC and financial behaviour (e.g., Britt et al, 2013 ; Arifin et al, 2018 ; Parmitasari et al, 2020 ; Adiputra, 2021 ; Triono, 2021 ), the direct relationship between LOC and FWB, wellness or satisfaction ( Prawitz and Cohart, 2016 ; Adiputra, 2021 ) or the mediating effect of LOC on the relationship between certain antecedents and FWB or financial outcomes (e.g., Grable et al, 2015 ; Bulmash, 2016 ; Furnham and Cheng, 2017 ; Ullah and Yusheng, 2020 ; Peetz et al, 2021 ), which is in line with the study by She et al (2022) . However, the present study differs from She et al (2022) by including two important socio-demographic variables into the model, i.e., income and education.…”

Cash Waqf Behavior: Explaining Financial Consciousness and The Moderating Role of Religiosity

“…Prior studies also confirm that locus of control may affect individual behavior (Ajzen, 2002;Arifin et al, 2019;Cobb-Clark, 2015;Ida & Dwinta, 2010). A high locus of control can wisely improve individual financial behavior (Parmitasari et al, 2020). This is a crucial beginning point for evaluating how people perceived their control in making financial decisions regarding cash waqf expenditure.…”

“…Individuals who exercise an internal locus of control are assured that what happens in their lives is under their control (Arifin et al, 2019), while individuals who exercise an external locus of control are assured that there are powers out of their control affecting their lives, such as fortune, chance, or destiny (Griffin & Moorhead, 2013). Islam sees the locus of control as mujahadah an-nafs, which is defined as an attitude of genuine struggle against selfishness and personal desires, including in terms of managing money or property (Parmitasari et al, 2020). Huda et al (2012) and Sadallah et al (2022) find that locus of control as part of perceived behavioral control has a simultaneously significant influence on zakat behavior.…”