THE IMPACT OF FINANCIAL LITERACY AND PERSONALITY TO FINANCIAL MANAGEMENT BEHAVIOR ON SMES, GENDER AS MODERATING: A REVIEW

Main Article Content

Gunartin Gunartin Susanto Susanto Wiwit Kurniawan

Abstract

Small and medium-sized enterprises (SMEs) are of significant importance in the global economy; however, they encounter higher rates of failure in comparison to larger corporations, primarily attributable to issues related to financial mismanagement. The objective of this study is to examine the influence of financial literacy and personality traits on the financial management practices of SMEs, with a particular focus on how gender may moderate these relationships. There exists a positive correlation between financial literacy and financial management behavior, with this relationship being further influenced by individual levels of self-control and risk aversion. The primary objective of this research is to examine the correlation between financial literacy, personality traits, and financial management practices within SMEs. Additionally, this study will specifically explore the potential moderating effects of gender on these relationships. This study aims to investigate a connection between financial expertise, personality attributes, and the financial management behavior of SMEs by conducting a thorough examination of the available literature. It is worth noting that personality factors seem to have a more significant impact on male SMEs owners in comparison to their female counterparts. This observation implies that personality traits may exert a stronger influence on the financial management practices of male SME owners. The implications of these findings hold substantial importance for SMEs owners and policymakers. The findings emphasize the significance of SME owners augmenting their financial literacy and enhancing their financial management abilities. Enhancing financial education programs that are specifically tailored for SMEs has the potential to empower business owners by equipping them with the knowledge and skills necessary to make well-informed financial decisions and proficiently manage their resources. It is imperative for policymakers to give precedence to the advancement and execution of all-encompassing financial literacy initiatives that take into account the moderating influences of personality traits and gender. Through the implementation of these measures, SMEs proprietors can optimize their financial management methodologies, minimize potential hazards, and make valuable contributions to the prosperity and longevity of SMEs. This will yield advantages for both individual enterprises and the wider economy.

Article Details

How to Cite
GUNARTIN, Gunartin; SUSANTO, Susanto; KURNIAWAN, Wiwit. THE IMPACT OF FINANCIAL LITERACY AND PERSONALITY TO FINANCIAL MANAGEMENT BEHAVIOR ON SMES, GENDER AS MODERATING: A REVIEW. Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 9, n. 1, p. 969-976, aug. 2023. ISSN 2541-3333. Available at: <http://conferences.uin-malang.ac.id/index.php/iconies/article/view/2305>. Date accessed: 25 apr. 2024.
Section
Articles

References

Jess Feist, 2010)Bapat, D. (2020). Antecedents to responsible financial management behavior among young adults: moderating role of financial risk tolerance. International Journal of Bank Marketing, 38(5), 1177–1194. https://doi.org/10.1108/IJBM-10-2019-0356

Çera, G., Khan, K. A., Mlouk, A., & Brabenec, T. (2020). Improving financial capability: the mediating role of financial behaviour. Economic Research-Ekonomska Istrazivanja , 0(0), 1–18. https://doi.org/10.1080/1331677X.2020.1820362

Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43–59.

Dipl, O., Kurniadi, I. M., & Mm, R. (2018). INSTITUT TEKNOLOGI INDONESIA Serpong. 15314(021).

Fiksenbaum, L., Marjanovic, Z., & Greenglass, E. (2017). Financial threat and individuals’ willingness to change financial behavior. Review of Behavioral Finance, 9(2), 128–147. https://doi.org/10.1108/RBF-09-2016-0056

Grable, J. E., Park, J. Y., & Joo, S. H. (2009). Explaining financial management behavior for koreans living in the united states. Journal of Consumer Affairs, 43(1), 80–107. https://doi.org/10.1111/j.1745-6606.2008.01128.x

Harms, R., & Schwery, M. (2020). Lean Startup: Operationalizing Lean Startup Capability and testing its performance implications. Journal of Small Business Management, 58(1), 200–223. https://doi.org/10.1080/00472778.2019.1659677

Jess Feist, G. J. F. (2010). Teori Kepribadian. In psikologi (p. 428). https://penerbitsalemba.com/buku/10-0023-teori-kepribadian-1-e7
Jindrichovska, I. (2014). Financial management in SMEs. European Research Studies Journal, 16(4), 79–95. https://doi.org/10.35808/ersj/405

Karadag, H. (2015). Financial Management Challenges In Small And Medium-Sized Enterprises: A Strategic Management Approach. EMAJ: Emerging Markets Journal, 5(1), 26–40. https://doi.org/10.5195/emaj.2015.67

Karadag, H. (2017). The impact of industry, firm age and education level on financial management performance in small and medium-sized enterprises (SMEs): Evidence from Turkey. Journal of Entrepreneurship in Emerging Economies, 9(3), 300–314. https://doi.org/10.1108/JEEE-09-2016-0037

La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. Journal of Finance, 54(2), 471–517. https://doi.org/10.1111/0022-1082.00115

Lusardi, A., & Mitchell, O. (2011). FINANCIAL LITERACY AROUND THE WORLD - Annamaria Lusardi and Olivia S. Mitchell. Nber, 17(4), 1–14.

Moysidou, K., & Hausberg, J. P. (2020). In crowdfunding we trust: A trust-building model in lending crowdfunding. Journal of Small Business Management, 58(3), 511–543. https://doi.org/10.1080/00472778.2019.1661682

Mudzingiri, C., Muteba Mwamba, J. W., & Keyser, J. N. (2018). Financial behavior, confidence, risk preferences and financial literacy of university students. Cogent Economics and Finance, 6(1), 1–25. https://doi.org/10.1080/23322039.2018.1512366

Pais, M. A., & Gama, P. M. (2015). Working capital management and SMEs profitability: Portuguese evidence. International Journal of Managerial Finance, 11(3), 341–358. https://doi.org/10.1108/IJMF-11-2014-0170

Pais, M. A., Sul, C., Sekolah, K., & Gama, P. M. (2015). Pengelolaan modal kerja dan profitabilitas UKM : Bukti Portugis. 11(3).

Sabri, M. F., Abdullah, N., Zenhendel, M., & Ahmad, S. Y. (2017). Moderation effect of gender on financial literacy, money attitude, financial strains and financial capability. Malaysian Journal of Consumer and Family Economics, 20(December), 83–101.

Servon, L. J., & Kaestner, R. (2008). Consumer financial literacy and the impact of online banking on the financial behavior of lower-income bank customers. In Journal of Consumer Affairs (Vol. 42, Issue 2, pp. 271–305). https://doi.org/10.1111/j.1745-6606.2008.00108.x

Stanton, W. J. (1987). from the SAGE Social Science Collections . All Rights. Hispanic Journal of Behavioral Sciences, 9(2), 183–205
http://hjb.sagepub.com.proxy.lib.umich.edu/content/9/2/183.full.pdf+html

Stolper, O. A., & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of Business Economics, 87(5), 581–643. https://doi.org/10.1007/s11573-017-0853-9

Strategis, M., & Karadag, H. (2015). Tantangan Manajemen Keuangan Dalam Usaha Kecil dan Menengah : Pendekatan Keuangan Pengelolaan Tantangan Dalam Usaha Kecil dan Menengah : A Strategis Pengelolaan.

Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. https://doi.org/10.1016/j.jbef.2017.04.002

Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1), 53–68. https://doi.org/10.1007/s11205-008-9288-6