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Businesses have been exposed to various challenges during the global pandemic. Unfortunately, the financially vulnerable groups in society are disproportionately affected by such a difficult time. Therefore, it is important for businesses to recognise this when creating new business models for sustainable corporate management. This paper attempts to (1) identify the factors that affect individual financial vulnerability, (2) develop survey items to assess financial vulnerability and its factors and (3) provide the characteristics of financially vulnerable groups by presenting a complete set of descriptive statistics. The results can help to create more inclusive business models that are better equipped to address the challenges ahead. A questionnaire-based survey was conducted with collaboration with an NGO that provides a financial counselling service in Hong Kong. In total, 338 valid responses were collected and the data were used to characterise financially vulnerable groups in terms of (1) change in financial conditions due to COVID-19;(2) exposure to digitised financial services and related push marketing;(3) financial management ability;(4) changes in four financial behaviours and (5) financial vulnerability as measured according to the debt/service ratio. Results show that the respondents have a median debt/service ratio of 0.513, which represents an unsustainable level of debt. Around 1/4 of surveyed respondents reported that their debt/service ratio was 1 or even higher, indicating obvious difficulties in meeting financial obligations. A total of 36.7% of the respondents reported worsening financial conditions since the outbreak of COVID-19. The results presented provide a solid empirical set of data that will help future research work to examine and/or develop a heuristic financial vulnerability model that incorporates the key factors leading to it. Businesses can refer to them when creating new business models that are sustainable, able to meet corporate social responsibility goals and can achieve several targets/goals of the United Nations' Sustainable Development Goals.
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The COVID-19 pandemic and its different waves brought several complications to people's social lives and massively affected business activities worldwide. Accordingly, in this study, we explored the various COVID-19 threats, uncertainties, and risks that are faced by entrepreneurship, propensity, and development. We applied a deductive approach in this study and utilized cross-sectional data that we collected through a questionnaire. We based this study's findings on 320 valid cases. By employing structural equation modeling (SEM), we reveal that factors, such as quality of business environment (QoBE) and access to financial resources (AtFR,) have a positive and significant impact on entrepreneurial propensity (EP). On the other hand, the findings reveal that two factors, namely the uncertainties caused by the COVID-19 pandemic (UoCOVID-19) and the risk perceptions of the COVID-19 pandemic (RPoCOVID-19), have a negative effect on EP. This study's findings provide valuable information about the COVID-19 pandemic and, on particular, on the development of EP among university students. In addition, this study's findings guide and support policymakers and higher authorities in understanding the impact of the COVID-19 pandemic and other business-related factors for developing EP. Further, these findings support the creation of conducive business environments even during a global pandemic or another natural disaster. Finally, this study's findings contribute other empirical evidence to enrich previous research on health, business, and management.
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The high cost of living and prolonged lockdowns due to the COVID-19 pandemic made the financial well-being of individuals vulnerable, especially young adults. This paper examines the impact of financial behaviour on financial well-being (FWB) among young Malaysians during the COVID-19 pandemic. The study collected variable data on financial literacy, financial behaviour, financial socialisation, self-control, financial technology and FWB. To collect a representative sample of Malaysian young adults, a multi-stage random sampling method was used, and 360 young adults aged 18-29 years old completed the questionnaires. Structural equation modelling was adopted to investigate the factors influencing young adults' FWB. The empirical findings revealed a significant mediating effect of financial behaviour in the relationships between financial literacy, financial socialisation, self-control, financial technology, and FWB. The research concluded that the mediation analysis yields a clear and firm conclusion that financial behaviour is important in empowering young adults' FWB. Thus, the present study adds value to the existing literature on the relationship between financial behaviour and FWB. Furthermore, the paper's findings will assist government agencies and non-governmental organisations in developing outreach programmes for young adults per the strategies outlined in the Twelfth Malaysia Plan and the aspirations pledged in the Malaysian Youth Policy 2015-2035.
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Refugees' successful integration into US society requires adaptation to economic, financial and social norms. Despite the importance of considering financial challenges (financial stress and financial anxiety) and financial capacity (financial literacy and financial self-efficacy) in reaching personal financial goals, literature examining the relationship between financial challenges and capacity-critical in refugee resettlement and integration-is sparse and fragmented. This study explored financial challenges and capacity amongst resettled African refugees (N = 130) in the southern USA using data from a larger community-based participatory research study that used a mixed-methods approach. We explored socio-demographic differences in financial stress, financial anxiety, financial literacy and financial self-efficacy across African refugee subpopulation groups. Our study highlights the importance of social work advocacy for data disaggregation, which helps establish the scope of the problem, unmask subpopulation differences and make vulnerable groups more visible to facilitate the development of tailored programmes and services to reach economic integration goals. We provide social work implications for data disaggregation in the current coronavirus context, which will leave long-term financial scars on refugee subpopulations. (PsycInfo Database Record (c) 2023 APA, all rights reserved)
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This study aims to determine factors impacting the intention of Micro, Small, and Medium Enterprises (MSMEs) in using fintech lending applications as an optional source of business financing using the technology acceptance model approach. The population in this study were MSMEs in Indonesia. Samples were taken by purposive sampling with the criteria of having used a licensed fintech lending application for business financing. The samples used were 171 samples. This study used structural equation model (SEM) as the analysis technique. The results of this study showed that Perceived Ease of Use had an impact on Perceived Usefulness but had no effect on Attitude Toward Using. The factor Perceived Usefulness had an effect on Attitude Toward Using, and Attitude Toward Using influences Behavioral Intention to Use. Fintech companies can play a role by providing education and empowerment to foster understanding of digital literacy for MSME stakeholders. The governments need to develop policy frameworks that can balance innovation and risk mitigation.
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PurposeThis paper aims to identify the competency domains to be included in a conceptual framework for tax literacy.Design/methodology/approachUsing a qualitative approach, this study expands on the current understanding of the competency areas of tax literacy. A dual-purpose literature review was, therefore, conducted. The literature review first provided the body of knowledge that underpinned the study and second, the key data concepts for the draft competency structure to determine whether there is consensus on an international (supra) level. The literature review was supported by an interactive qualitative analysis to further present the concept of tax literacy from the perspectives of various national stakeholders in an emerging economy. Accounting and public finance educators from a higher education institution, as well as financial advisers as representatives of a profession with a direct interest in tax-related matters, were considered.FindingsAlthough a discipline lens seems to strongly influence the previous authors' view of what tax literacy means, it was possible to identify certain tax literacy competency domains that should be included in a taxpayer education curriculum. These content domains consist first of a knowledge domain which includes disciplinary, interdisciplinary, epistemic and procedural knowledge components. Second, the skills domain should include components of cognitive and meta-cognitive, social and emotional, as well as physical and practice skills. Third, personal and societal attitudes and values represent the third domain. Fourth, transformative competencies such as value creation, taking responsibility and reconciliation attributes are important. Finally, core foundational competencies, such as numeracy and literacy should be in place.Practical implicationsThe draft conceptual framework for tax literacy could serve as the foundation for the further development of a tax literacy measurement instrument, as well as tax education courses.Originality/valueA more holistic conceptual framework for tax literacy, portraying the multidimensional nature of taxation, is presented in contrast to the limited one-dimensional position presented up to now.
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In Malaysia, there has been an increase in bankruptcy cases among the younger generation, indicating poor money management among youths. The Coronavirus Disease 2019 (COVID–19) outbreak has exacerbated this emerging financial issue since financial transactions are now more accessible through the growth of online digital financial products and services (DFS) (Mansour, 2022). Therefore, it is crucial that the younger generation is financially literate from the digital perspective — digital financial literacy (DFL). This study identified factors that may affect one‘s DFL that have not been previously explored in the financial literacy literature. In a survey that involved 183 Malaysian university students, determinants of DFL were identified, namely: financial knowledge score (FKS), programme or study level (PL), gender, age, as well as parental influence (PRI), peer influence (PEI), and social media influence (SMI). The data were analysed using partial least squares (PLS) modelling. The structural model analysis revealed that FKS and SMI positively impacted DFL, highlighting the importance of social media for financial education. Age had an insignificantly negative effect on DFL, contradicting earlier studies that used age as a proxy for financial experience. This research outcome adds to the existing and growing literature on DFL, which has lately gained prominence due to the proliferation of DFS. © 2023 The Authors.
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We examine determinants of the objective and subjective financial fragility of 2100 individuals across Australia, France, Germany, and South Africa during the COVID-19 pandemic. Objective financial fragility reflects individuals' (in)ability to deal with unexpected expenses, while subjective financial fragility reflects their emotional response to financial demands. Controlling for an extensive set of socio-demographics, we find that negative personal experiences during the pandemic (i.e., reduced or lost employment; COVID-19 infection) are associated with higher objective and subjective financial fragility. However, individuals' cognitive (i.e., financial literacy) as well as non-cognitive abilities (i.e., internal locus of control; psychological resilience) help to counteract this higher financial fragility. Finally, we examine the role of government financial support (i.e., income support; debt relief) and find that it is negatively related to financial fragility only for the economically weakest households. Our results have implications for public policymakers, providing levers for reducing individuals' objective and subjective financial fragility.
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Covid-19 and the unprecedented surge in financial technology contributed to unexpected financial challenges, affecting the relevance of financial decision making and perceived financial well-being. This paper examines the mediating effects of digital financial literacy, financial autonomy, financial capability, and impulsivity on financial decision making and perceived financial well-being. The data come from 512 re-spondents in Delhi/NCR (National Capital Region), India, using a snowball-sampling technique and partial least squares structural equation modeling to test 13 structural hypotheses with SmartPLS3.3. Partial least squares (PLS) prediction is employed to estimate the out-of-sample predictive power of the proposed model. Our findings reveal that skills directly affect financial decision making and perceived financial well-being, and digital financial literacy emerges as a direct and mediating predictor of financial decision making. The dominance of financial capability and financial autonomy as mediators in financial decision making and financial well-being become more evident, and impulsivity fails to have mediating effects on financial decision making. The results have academic, regulatory, and managerial implications, all of which calls for more concerted efforts at recognizing the unique interaction among skills-financial decision making-perceived financial well-being, the cu-mulative effect of which enhances the critical ability to deal with environmental challenges, manage socioeconomic pressures in a sustainable manner, and translate the benefits into prudent gender-specific policy decisions and practices.Copyright (c) 2022 Borsa Istanbul Anonim S , irketi. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
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PurposeTo be successful on a global scale, small- and medium-sized enterprises (SMEs) need government support (GS) for innovation, sustainability and creativity. GS has always been a constructive influence on enterprises. This paper aims to examine the role of GS in assessing financial literacy (FL), access to finance (AF) and green value co-creation (GVC) for the sustainability of SMEs. Design/methodology/approachThis study's sample comprises SMEs in Lahore, Pakistan. Data collection started in December 2021 and ended in February 2022. Using convenient sampling, 320 responses were collected from SMEs and included in data analysis. Hypotheses were tested, and model fit was checked through the software AMOS 22. FindingsIt has been examined that GS plays a pivotal role in acquiring FL, AF and GVC for the sustainability of SMEs. Research limitations/implicationsIncreasing the sample size will give a more demonstrative picture as the population size is quite large. Future researchers should design causal relationships, linking these variables through longitudinal research. Originality/valueNo study has been conducted on SMEs of developing economies using these variables. This study contributes to the literature by providing a comprehensive model and identifying GSs importance in achieving SMEs' sustainability through financial and green lenses. This research significantly impacts government policymakers and SMEs by giving them insight into the importance of green practices, financial capabilities and SMEs' sustainability.
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Purpose: The rising daily expenditure, tough economic conditions and Covid 19 pandemic have made individuals and households more concern of their financial management. The study was carried out to examine major determinates of personal financial managementpracticesamong ICCR sponsored scholars. Design/methodology/approach: The research employed a cross-sectional conclusive research design that included both descriptive and explanatory research. The study used a self-administered questionnaire, and shared the link of Google form to respondents directly through official group social network pages which created and administrated by ICCR Gujarat office. The study employed descriptive statistics and inferential analyses such as correlation between variables and analyzed their effects using multiple regressions. Findings: The result of the study has shown that financial knowledge, financial behavior, financial attitude, financial planning, and financial socialization have positive and significant effect on personal financial management. Covid 19 pandemic has negative impacts on personal financial management practices. Practical implications: The study recommends financial education at a young age in order to acquire knowledge of saving, money management, and investment as early as possible by the new generation. . Training of young minds can help prepare and enable them to face the economic adversities faced by the generation globally. Originality/Value-There has been relatively little theoretically based empirical study on the association between personal financial management and financial practices of scholars in the literature, implying that further empirical research is required
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Amidst declining trends of Indian macroeconomic indicators during COVID-19 period, certain indicators, which can be takes as proxies of investors' behaviour, sentiments and biases, were discerned in Indian securities markets. The study provides significant insight into sentiments and biases of a particular segment of retail investors trading in uncertain times of COVID-19, whose investment behaviour may have serious impact on their financial well-being in the long-term. This exploratory-descriptive study uses data collected by various regulators and government sources in India and abroad to evaluate the behaviour of investors in the backdrop of macroeconomic trends during COVID-19. After analysing the trends of investor participation, trading behaviour and general sentiment in the Indian capital markets and evaluating the implications of these investor-related behaviours on the financial well-being of individual investors, a comprehensive and segmented approach of financial literacy has been recommended to safeguard financial well-being of investors.
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The purpose of this study is to examine the question of how crises influence the decision-making of Hungarian university students. Crises increase the risk of sustainability, so it is crucial to make appropriate financial decisions in such a situation. For this purpose, the authors conducted a two-stage questionnaire survey among students of economics and other majors. The inquiries took place in 2019 (n = 1558) and 2020 (n = 1712). A regression study was used to analyse the evolution of financial attitudes and investment knowledge, as well as how they are affected by a potential crisis modelled with the COVID-19 pandemic. It has been shown that interest in financial matters increases as a result of the crisis and the level of financial knowledge also increases. However, the most important conclusion of the study is that, in the event of a high threat, knowledge and practice can only be combined with calm thinking to help make appropriate financial decisions. All of this together ensures that investment decisions are the basis for the sustainability of personal finances.
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Orientation: Financial behaviour is known for the direct or indirect management of funds through inter alia spending, saving and borrowing. Research purpose: This study aimed to investigate the financial behaviour of qualified financial professionals and how it compares with behaviour since the national lockdown regulations in South Africa were imposed in March 2020. Motivation for the study: Several studies found that higher levels of financial knowledge are often associated with more desirable financial behaviour, but because of individual psychological resource differences, people in a similar economic situation may experience different levels of financial threat. Research approach/design and method: An empirical study using a survey, which is supported by an underlying literature review. Main findings: Survey results showed that most respondents do not track actual expenditure against budgets;however, this tendency changes with an increase in age. Financing through loans decreases with an increase in the age of respondents. Cash flow considerations were identified since the national lockdown regulations were imposed, addressed mostly by an increase in saving initiatives. Where qualified financial professionals use financial advisors, it is predominantly for advising on retirement and investment strategies. An association was found between the age of respondents and the likelihood of utilising the services of financial advisors for taxation savings. Practical/managerial implications: It is recommended that the findings on how qualified financial professionals managed their funds prior to and after the national lockdown should be used as guidance by others. Contribution/value-add: The study provides information that the lockdown did not necessarily result in major changes in the financial behaviour of the qualified financial professionals in the study.
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This study examined spending behaviors of U.S. tenants who reported delaying rent payments during federal eviction moratoria in 2020-2021, enacted in response to the Coronavirus Disease-2019 (COVID-19) pandemic. A national sample of 772 middle and low-income tenants who reported delaying rent payments because of the eviction moratoria were assessed from May 2020 to October 2020. Among tenants who delayed paying rent, most rent money was spent on groceries (11-19%), utilities (9-14%), substance use (8-10%), and debt (7%) across two time periods;the remaining rent money was spent on other expenses including recreation and medical care. Sociodemographic and psychiatric characteristics together only explained 2-3% of the variance in spending in major expense categories suggesting the broad impact of the COVID-19 pandemic. Together, these findings provide insight into spending behaviors of tenants during a time of great financial and psychological distress. © This work was authored as part of the Contributor's official duties as an Employee of the United States Government and is therefore a work of the United States Government. In accordance with 17 USC. 105, no copyright protection is available for such works under US Law.
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The effects of the COVID-19 pandemic and the Russian–Ukrainian war have had a significant impact on economies around the world, with pivotal implications for the activities of companies. The issue of corporate financial literacy has been within our scope of interest for a matter of years now, and this study aims at re-enforcing our previous overall theoretical and literacy-based analysis from a methodological approach. We use our own previous databases to explore and analyze the importance of corporate financial literacy, taking into account the economic factors inside and outside the organization that affect the businesses. For this, a confirmative factor analysis (CFA) model has been created. The article aims at two things with this. On the one hand, we intend to introduce the wider scope of the fit tests applicable in the CFA, thus giving a direction to other authors. It also allows for adequate verification for their models, while at the same time conducting the fit test for our corporate financial literacy model as well as a valid model framework suitable for making measurements and deductions. With the resulting model, this paper aims to examine the corporate financial literacy, the current economic challenges, and the issues faced by managers during crises. In addition to all this, with our article, we also want to make some contribution to the methodology of empirical data analysis: in the article we collect the fit tests that can be used to validate confirmatory factor models, the way they are determined, and most importantly, we try to sort out the literature approaches to the acceptable values of these tests, giving the reader a kind of guide and a reference base. The results of the research identify response measures that can contribute to increasing companies' resilience based on the principles of financial awareness.
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The contribution of SMEs to economic growth is supported by the development of the sharia economy by the government, making SMEs one of the main pillars in Indonesia's economic development. This study aimed to analyze the influence of the digital economy, financial literacy, human capital, the role of Islamic financial institutions, government support for strengthening the Islamic economy and the Islamic financial performance of SMEs in Makassar City, Indonesia. This study used a quantitative method with a survey approach. Data were obtained through questionnaires distributed to 350 respondents with a sampling method. The results of this study indicated that the strengthening of the sharia economy, the Islamic financial performance of SMEs, economic digitalization and financial literacy are determined by factors of human capital, the role of Islamic financial institutions and government support. Regarding human capital, the roles of Islamic financial institutions and government support affect the Islamic financial performance of SMEs with a coefficient of determination of 58.5%. Human capital, the role of Islamic financial institutions, government support and financial performance have a positive correlation with the strengthening of the sharia economy with a coefficient of determination of 71.6%. This study supports the improvement of government policies and the construction of financial facilities in improving the Islamic financial performance of SMEs and encourages the strengthening of the sharia economy in Makassar City, South Sulawesi, Indonesia. The limitation of this research is that the research object was only carried out on SMEs in Makassar City;thus, similar research can be increased at the national level to describe the strengthening of the sharia economy and the improvement of the financial performance of SMEs as a whole in Indonesia.
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OBJECTIVES: To study the impact of a financial education program on financial well-being among college students. PARTICIPANTS: 162 students at a university. METHODS: We designed a digital educational intervention to improve money management practices and financial well-being among college students, where we delivered weekly nudges for three months via mobile phone and email to review and complete activities from the online platform CashCourse. We evaluated our intervention using a randomized controlled trial (RCT), and the outcome variables of interest were the financial self-efficacy scale (FSES) and financial health score (FHS). RESULTS: Using a difference-in-difference regression analysis we found that students in the treatment group were significantly more likely to pay their bills on time after the intervention compared to the control group. Students who had higher than median financial self-efficacy level reported lower stress levels related to COVID-19. CONCLUSIONS: Digital education programs for college students to improve financial knowledge and behavior could be one strategy, among others, to improve financial self-efficacy particularly among females and help mitigate the adverse impact from unexpected financial hardships.
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The goal of this research is to determine how financial literacy and financial attitude influence financial management behavior in Culinary MSMEs in Rawamangun, East Jakarta City. The type of research used is explanatory research. The sampling method is probability with area sampling. Samples were collected from 50 Culinary MSMEs actors in East Jakarta's Rawamangun Urban Village. The primary data used are questionnaire responses on a five-point Likert scale. Multiple Regression Analysis was used to analyze the data, aided by SPSS version 25.0. Based on the results of testing, the two hypotheses show that financial literacy and financial attitudes positively and significantly influence financial management behavior in Culinary MSMEs actors in Rawamangun Urban Village. Theoretically, this study recommends further research to analyze in-depth other variables that shape the financial management behavior of Culinary MSMEs in Rawamangun Urban Village. Practically, this study highlights the need for education and literacy to strengthen the financial management behavior of culinary entrepreneurs, with the aim of improving the economy and business through insightful activities such as education, and training courses that focus on savings, loans, investments and insurance.
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This article uses data from the 2020 TIAA Institute-GFLEC Personal Finance (P-Fin) Index to show that many American families were financially fragile well before the COVID-19 pandemic hit the U.S. economy. Financial fragility is particularly severe among specific demographic groups, such as African-Americans and those with low income. The article also shows that financial fragility is strongly linked to financial literacy and that many Americans are ill-equipped to deal with the financial decisions needed to navigate through a financial crisis. Suggestions are provided to deal with personal finance decisions in times of emergency.