First results on financial literacy in Oman
Abstract: PurposeThis study aims to examine the financial literacy level among the Omani adults and investigate the determinants of financial literacy and its impact on savings and investment behavior.Design/methodology/approachThe data were collected using a survey instrument adopted from Organisation for Economic Co-operation and Development (OECD) survey for financial literacy and composed of 310 individuals' responses. The authors used a multiple regression analysis to determine the impact of the socio-demographics … Show more
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This paper provides an overview of the state of financial literacy of Malaysians using data from the OECD (INFE) Financial Literacy Survey conducted in year 2015 and 2018. Besides the three components of financial literacy, namely, financial knowledge, financial attitude and financial behaviour, this paper also analyses the financial vulnerability of individuals. The effects of socio-demographic factors excluding gender are significant in determining financial literacy levels. Generally, Malaysians do not think that they have high financial knowledge, and the objective financial knowledge assessment reflects this as less than 40% of the respondents meet the minimum financial knowledge target score. There are no significant differences in the level of financial knowledge between 2015 and 2018 but financial attitude towards money usage worsened in 2018 compared to 2015. However, in terms of financial behaviour, Malaysians are generally active savers, set long-term financial goals, make considered and informed purchases, and keep a close watch on their personal affairs. Malaysians are financially vulnerable, but they seem more prepared in weathering the storm and having financial cushions for emergencies in 2018 compared to 2015. The findings suggest more effort is needed in educating Malaysians on fundamental financial concepts and ways to enhance their financial cushion.
This paper provides an overview of the state of financial literacy of Malaysians using data from the OECD (INFE) Financial Literacy Survey conducted in year 2015 and 2018. Besides the three components of financial literacy, namely, financial knowledge, financial attitude and financial behaviour, this paper also analyses the financial vulnerability of individuals. The effects of socio-demographic factors excluding gender are significant in determining financial literacy levels. Generally, Malaysians do not think that they have high financial knowledge, and the objective financial knowledge assessment reflects this as less than 40% of the respondents meet the minimum financial knowledge target score. There are no significant differences in the level of financial knowledge between 2015 and 2018 but financial attitude towards money usage worsened in 2018 compared to 2015. However, in terms of financial behaviour, Malaysians are generally active savers, set long-term financial goals, make considered and informed purchases, and keep a close watch on their personal affairs. Malaysians are financially vulnerable, but they seem more prepared in weathering the storm and having financial cushions for emergencies in 2018 compared to 2015. The findings suggest more effort is needed in educating Malaysians on fundamental financial concepts and ways to enhance their financial cushion.
Determination of the Intention of MSMEs Owners Using Sharia Cooperatives in Improving Indonesian Islamic Economic Empowerment
ABSTRAK Penurunan profit bisnis kecil akibat implikasi ekonomi pasca pandemi COVID-19. Persoalan struktur permodalan menjadi kendala dalam mempertahankan dan meningkatkan usahanya secara terus menerus seiring kerubahan zaman. Koperasi Syariah sebagai salah satu lembaga keuangan Islam yang keislaman lebih dekat secara eksistensi maupun teritorial dengan masyarakat tingkat bawah sehingga menjadi alternatif pengembangan usaha masyarakat secara syariah sesuai persyaratan yang diberikan. Studi ini bertujuan untuk untuk menganalisis pengaruh literasi keuangan syariah dalam sikap, pengaruh sosial dan self-efficacy terhadap perilaku pemanfaatan produk koperasi syariah di Indonesia. Studi kuantitatif survey online dengan melibatkan 280 calon anggota koperasi syariah yang membutuhkan pembiayaan dan merupakan pemilik UMKM dijalankan dengan teknik analisis SEM PLS. Hasil studi menunjukkan pengaruh literasi keuangan terhadap sikap, pengaruh sosial dan self-efficacy lalu dilanjutkan arah jalur dukungan hipotesis terhadap niat untuk memilih Koperasi Syariah sebagai solusi kebutuhan finansial UMKM ditemukan. Strategi manajerial khususnya pemasaran dikembangkan dengan mempertimbangkan efek sikap positif, pengaruh sosial dan efikasi diri calon anggota sebagai pemilik bisnis atau produk keuangan syariah yang akan mereka tawarkan kepada pelanggan mereka akan berkontribusi pada pertumbuhan sektor UMKM khususnya UMKM Generasi Millenial dan UMKM Hijau di Indonesia melalui upaya promosi dan kerjasama. Kata Kunci: ASE Model, Ekonomi Islam, Koperasi Syariah, Pemberdayaan, UMKM. ABSTRACT The decline in small business profits due to the post-COVID-19 pandemic economy. The issue of capital structure is an obstacle in maintaining and increasing development continuously in line with the changing times. Sharia cooperatives as one of the Islamic financial institutions are closer in existence and territorially to the lower level of society so that they become an alternative for community business development in accordance with the requirements given. This study aims to analyze the effect of Islamic financial literacy on attitudes, social influence and self-efficacy on the application of Islamic cooperative products in Indonesia. Quantitative study of online surveys involving 280 prospective members of Islamic cooperatives who need financing and are MSME owners carried out with the PLS SEM analysis technique. The results of the study show the effect of financial literacy on attitudes, social influence and self-efficacy, then choosing the direction of hypothesis support for the intention to find Islamic Cooperatives as a solution to the financial needs of MSMEs. Managerial strategies especially marketing that are developed taking into account the effects of positive attitudes, social influence and self-efficacy of prospective members as owners or Islamic financial products that they will offer to their customers will increase the growth of the MSME sector, especially Millennial Generation MSMEs and Green MSMEs in Indonesia through promotional efforts and cooperation. Keywords: ASE Model, Islamic Economics, Sharia Cooperatives, Empowerment, MSMEs. REFERENCES Abourrig, A. (2021). Social influence in predicting Islamic banking acceptance: Evidence from Morocco. International Journal of Accounting, Finance, Auditing, 2(2), 42–56. https://doi.org/10.5281/zenodo.4641472 Ajzen, I. (1991a). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T Ajzen, I. (1991b). The theory of planned behavior. 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Unraveling the impact of financial literacy on investment decisions in an emerging market
We examined the impact of financial literacy on investment decisions, taking a sample of 384 investors from India. A multi‐dimensional construct to measure financial literacy was developed basis the theory of planned behavior. Investment decisions were measured by taking six proxies on a five‐point Likert‐type scale. The causal link between financial literacy and investment decisions was examined using simple linear and binary logistic regression. The results exhibited moderate to high levels of financial literacy among investors. Results further confirm that investors' investment decisions are positively influenced by their financial literacy levels. It is concluded that financial literates have a greater likelihood of making informed investment decisions. These outcomes have practical implications for policymakers, managers, employers, and investors, especially in an emerging market context, making a case for relevant financial education programs to empower investors. The study adds to the theory of financial literacy developing a multi‐dimensional construct and introducing Macroeconomic Factors as a proxy for investment decisions.
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