Improving financial capability: the mediating role of financial behaviour

Çera, Gentjan; Khan, Khurram Ajaz; Mlouk, Ahmad; Brabenec, Tomàš

doi:10.1080/1331677x.2020.1820362

Cited by 51 publications

(59 citation statements)

References 73 publications

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“…A propensity to plan is positively associated with appropriate credit card management behaviors and negatively associated with irresponsible behaviors among US millennials (Lee and Kim, 2020). Financial capability can be improved by increasing individuals' financial knowledge, financial behavior and promoting their inclusion in financial services in Albania (Çera et al. , 2021).…”

Section: Propositions and Synthesesmentioning

confidence: 99%

Financial capability: a systematic conceptual review, extension and synthesis

Xiao

Huang

Goyal

et al. 2022

IJBM

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PurposeThis study aims to examine the literature on consumer financial capability. By analyzing the research trends, theories, definitions and themes, the literature on financial capability is synthesized, and agenda for future research is suggested. A framework is presented that portrays the antecedents as well as the outcomes of financial capability and their interlinkages.Design/methodology/approachFollowing a systematic approach, the review is based on 215 articles published during January 2007 and–March 2022, retrieved from Scopus. It presents the definitions and theories of financial capability, publication trends, influential articles, prominent authors, prolific journals and countries publishing on financial capability. Using bibliographic coupling, the intellectual structure of the topic is explored, along with offering a framework through content analysis.FindingsThe bibliographic coupling analysis identifies four major clusters of research themes and capability theory appeared to be the most prominent theory. The synthesis draws upon five conceptual definitions of financial capability. Based on the discussion, in this review, financial capability is defined as an individual ability to apply appropriate financial knowledge, perform desirable financial behaviors and take available financial opportunities for achieving financial well-being. A conceptual framework delineates the synthesized literature and propositions based on this framework and relevant research are proposed. Finally, directions for future research are discussed.Originality/valueThis paper is an attempt to offer a comprehensive synthesis of the scholarship on financial capability and its conceptualization. It further proposes an extensive future research agenda. The study has implications for financial services providers relating to retail bank marketing.

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Section: Propositions and Synthesesmentioning

confidence: 99%

Financial capability: a systematic conceptual review, extension and synthesis

Xiao

Huang

Goyal

et al. 2022

IJBM

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“…This study uses cognitive development theory to better understand an individual's financial well-being in terms of applying the appropriate behaviour and ensuring that this behaviour is consistent with existing psychological beliefs. Financial behaviour has been found to be a mediator in explaining an individual's financial well-being with other factors, including psychological factors, are taken into account IJSE 49,2 (Çera et al, 2021;Saurabh and Nandan, 2018;She et al, 2021a). Hence, the following hypotheses were proposed:…”

Section: Financial Behaviourmentioning

confidence: 99%

Psychological beliefs and financial well-being among working adults: the mediating role of financial behaviour

She¹,

Rasiah²,

Turner

et al. 2021

IJSE

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PurposeThis study aimed to assess the impact of psychological beliefs (subjective financial knowledge, financial attitude and locus of control) on financial well-being, as well as the mediating role of financial behaviour in the relationship between psychological beliefs and financial well-being among working adults in Malaysia.Design/methodology/approachA survey-based questionnaire was used to elicit information from a total of 500 working adults from Malaysia. Partial least squares structural equation modelling (PLS-SEM) was used to assess the measurement model and the proposed mediation model.FindingsThe results showed that subjective financial knowledge, financial attitude and locus of control have a positive impact on both financial behaviour and financial well-being. The results also showed that financial behaviour mediates the relationships between financial attitude and financial well-being, as well as between locus of control and financial well-being.Originality/valueGiven the anticipated global economic recession, a better understanding of how individuals manage their finances becomes ever more crucial. The findings from this research inform policymakers, practitioners and academics on the importance of psychological factors and financial management practices on financial well-being, addressing an identified gap in the current literature.

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“…Keeping in view the perspective of Lusardi and de Bassa Scheresberg (2017), the factors affecting the economic consequences of the individual throughout their living are their financial skills and monetary education. In recent times, the concept of financial capability has been gaining the attention of research scholars (Çera et al, 2021;Luukkanen and Uusitalo, 2019). Financial awareness is treated as the skill of an individual to take action, whereas financial inclusion takes into account the opportunity to take action; the combined effect of both leads towards developing the financial capabilities of an individual (Sherraden, 2013).…”

Section: Introductionmentioning

confidence: 99%

Impact of Financial Inclusion on Financial Well-Being: Moderating Effect of Orientation towards Finance

RASHID

Bilal

Hussain³

et al. 2022

J. Econ. Impact

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The present study examines the impact of women’s orientation toward finance on their financial well-being. Along this, research also considers the financial capability of working women in the Lahore district's educational sector. For this purpose, the current study developed insight into the effect of financial inclusion on the financial well-being. In addition, the study is testing the mediation of financial capability and conditional process modeling of orientation towards finance of the working women as a teaching staff working in the different educational institutes such as schools, colleges and universities of Lahore. The research study adopted a quantitative strategy with using a deductive approach. The researcher used a self-administered questionnaire to collect the data from the research study's respondents. Eight hundred questionnaires were distributed among the respondents, and 600 were returned from the participants, out of which 550 questionnaires were fully filled. For analyzing data collected from respondents in the form of their responses, SPSS and AMOS have been used. The study's results indicated that the financially included working women have a high level of financial well-being. The findings also revealed that financial capability mediates the relationship between financial inclusion and financial well-being. The research outcomes showed that the working women’s orientation toward finance has a moderated mediation mechanism among financial inclusion and financial well-being and financial inclusion and financial capability. The prevailing study is significant for the women belonging to different working sectors as well as different levels of hierarchy. The study is also important for the policymakers and the governing bodies to focus on enhancing women's financial well-being by making sure that they are financially included.

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Improving financial capability: the mediating role of financial behaviour

Cited by 51 publications

References 73 publications

Financial capability: a systematic conceptual review, extension and synthesis

Financial capability: a systematic conceptual review, extension and synthesis

Psychological beliefs and financial well-being among working adults: the mediating role of financial behaviour

Impact of Financial Inclusion on Financial Well-Being: Moderating Effect of Orientation towards Finance

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