CONFIRMATORY ANALYSIS AS A TOOL FOR FORMING INDICATORS OF SELF-EFFICACY, FINANCIAL BEHAVIOR, AND FINANCIAL WELL-BEING
Abstract
Small and Medium Industries are a form of small business that operates in several fields that can become the foundation of the country's economy. The creative industry makes many contributions by providing employment opportunities, increasing state income, and alleviating poverty. Finance plays a crucial role in demonstrating the ability of small and medium sized business owners to manage their operations by enlisting the help of labor, involving third parties, and turning a profit. The importance of financial self-confidence in achieving financial prosperity is very important. It plays a role in ensuring that SMEs can manage and decide on all forms of financial roles that they carry out, supported by good financial behavior. This research aims to analyze confirmatory factors of self-efficacy and financial behavior to improve financial well-being. Data analysis used in the research used confirmatory factor analysis (CFA) techniques with Structural Equation Modeling (SEM) software. The results of confirmatory factor analysis reveal that the strongest indicator that contributes to financial well-being is financial management skills, for the financial self-efficacy variable the indicator that has the highest contribution is financial decision making and the credit management indicator contributes the most to the financial behavior variable.
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Sabri, M. F., Cook, C. C., & Gudmunson, C. G. (2012). Financial well-being of Malaysian college students. Asian Education and Development Studies, 1(2), 153–170. https://doi.org/10.1108/20463161211240124
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Shefrin, H. (2009). Behavioralizing finance. Foundations and Trends in Finance, 4(1–2), 1–184. https://doi.org/10.1561/0500000030
Sina, P. G. (2013). Financial Efficacy and Financial Satisfaction : Ditinjau dari Perbedaan Gender. Jurnal Manajemen Maranatha, 12(2), 173–184. https://journal.maranatha.edu/index.php/jmm/article/view/164
Sumani, S., & Roziq, A. (2020). Financial Literation: Determinants of Financial Well-Being in the Batik Small and Medium Industries in East Java. Jurnal Aplikasi Manajemen, 18(2), 289–299. https://doi.org/10.21776/ub.jam.2020.018.02.09
Susan, M. (2018). Financial behavior and problems among college student in Indonesia: The role of financial knowledge. International Journal of Engineering and Technology(UAE), 7(3), 133–137. https://doi.org/10.14419/ijet.v7i3.25.17531
Andyni, N., & Kurniasari, F. (2021). Pengaruh literasi dan efikasi diri terhadap inklusi keuangan pada penggunaan layanan pembayaran digital shopee pay di jabodetabek. 16(1).
Asmin, E. A., Ali, M., Nohong, M., & Mardiana, R. (2021). The Effect of Financial Self-Efficacy and Financial Knowledge on Financial Management Behavior. Golden Ratio of Finance Management, 1(1), 15–26. https://doi.org/10.52970/grfm.v1i1.59
Delafrooz. (2011). Determinants of financial wellness among Malaysia workers. African Journal of Business Management, 5(24), 10092–10100. https://doi.org/10.5897/ajbm10.1267
Farrell, L., Fry, T. R. L., & Risse, L. (2016). The significance of financial self-efficacy in explaining women’s personal finance behaviour. Journal of Economic Psychology, 54, 85–99. https://doi.org/10.1016/j.joep.2015.07.001
Fazli Sabri, M., Cook, C. C., & Gudmunson, C. G. (2012). Financial well‐being of Malaysian college students. Asian Education and Development Studies, 1(2), 153–170. https://doi.org/10.1108/20463161211240124
Forbes, J., & Kara, S. M. (2010). Confidence mediates how investment knowledge influences investing self-efficacy. Journal of Economic Psychology, 31(3), 435–443. https://doi.org/10.1016/j.joep.2010.01.012
Gutter, M., & Copur, Z. (2011). Financial Behaviors and Financial Well-Being of College Students: Evidence from a National Survey. Journal of Family and Economic Issues, 32(4), 699–714. https://doi.org/10.1007/s10834-011-9255-2
Hadar, L., Sood, S., & Fox, C. R. (2013). Subjective knowledge in consumer financial decisions. Journal of Marketing Research, 50(3), 303–316. https://doi.org/10.1509/jmr.10.0518
Herawati, N. T., Luh Gede Kusuma Dewi, Wahyuni, M. A., & Savitri, N. L. A. (2020). Financial Self Efficacy : A Mediator in Advancing Financial Behavior among Accounting Students L ’ auto-efficacité financière : un médiateur pour faire progresser le comportement financier des étudiants en comptabilité. Journal of Academic Finance, 11(2), 226–241.
Ismail, S., Faique, F. A., Bakri, M. H., Zain, Z. M., Idris, N. H., Yazid, Z. A., Daud, S., & Taib, N. M. (2017). The role of financial self-efficacy scale in predicting financial behavior. Advanced Science Letters, 23(5), 4635–4639. https://doi.org/10.1166/asl.2017.8992
Kempson, E., & Finney, A. (2017). Project Note no . 3-2017 Elaine Kempson , Andrea Finney and Christian Poppe A Conceptual Model and Preliminary Analysis Final edition. Consumption Research Norway- SIFO, 3, 7–75. https://doi.org/10.13140/RG.2.2.18737.68961
Kholilah, N. Al, & Iramani, R. (2013). Studi Financial Management Behavior Pada Masyarakat Surabaya. Journal of Business and Banking, 3(1), 69. https://doi.org/10.14414/jbb.v3i1.255
Leon, F. M. (2020). the Effect of Self-Efficacy Financial Mediation on Factors Affecting Financial Inclusion in Small Businesses in West Jakarta. Jurnal Ekonomi : Journal of Economic, 11(1). https://doi.org/10.47007/jeko.v11i1.2910
Muir, Hamilton, K., Noone, M., Marjolin, A. S. F., & Saunders. (2017). Exploring Financial Wellbeing In the Australian Context (Final Repo). Financial Literacy Australia.
Netemeyer, R. G., Warmath, D., Fernandes, D., & Lynch, J. G. (2018). How Am i Doing? Perceived Financial Well-Being, Its Potential Antecedents, and Its Relation to Overall Well-Being. Journal of Consumer Research, 45(1), 68–89. https://doi.org/10.1093/jcr/ucx109
Nofsinger, J. R. (2001). The impact of public information on investors. Journal of Banking and Finance, 25(7), 1339–1366. https://doi.org/10.1016/S0378-4266(00)00133-3
Noor, N., Batool, I., Arshad, H. M., Noor, N., Batool, I., & Arshad, H. M. (2020). Cogent Economics & Finance Financial literacy , financial self-efficacy and financial account ownership behavior in Pakistan Financial literacy , financial self-efficacy and financial account ownership behavior in Pakistan. Cogent Economics & Finance, 8(1), 1–17. https://doi.org/10.1080/23322039.2020.1806479
Osman, Z., & Madzlan, E. (2018). In Pursuit Of Financial Well being:The Effect Of Financial LIteracy ,Financial Behaviour And Financial Stress On Emplyoyess in Labuan. International Journal of Service Management and Sustainability, 3(1), 360–376. https://doi.org/10.24191/ijsms.v3i1.8041
Rahim, S., & Balan, V. R. (2020). Financial literacy: The impact on the profitability of the smes in kuching. International Journal of Business and Society, 21(3), 1172–1191.
Ramalho, T. B., & Forte, D. (2019). Financial literacy in Brazil – do knowledge and self-confidence relate with behavior? RAUSP Management Journal, 54(1), 77–95. https://doi.org/10.1108/RAUSP-04-2018-0008
Ratnawati, Rokhman, M. T. N., Rochayatun, S., & Rahayu, Y. N. (2023). Financial attitude and financial performance of export MSMEs : Financial well-being as a mediating. 16(1), 77–85. https://doi.org/10.33094/ijaefa.v16i1.901
Ratnawati, T., Mujanah, S., & Lokajaya, N. (2018). Strategi Financial Literacy Untuk Meningkatkan Kesejahteraan Masyarakat Industri Kawasan Wisata Kabupaten Gersik Jawa Timur. Seminar Nasional Dan Call for Paper: Manajemen, Akuntansi Dan Perbankkan, 1105–1119. http://conferences.uin-malang.ac.id/index.php/semnasfe/article/view/770
Renaldo, N., Sudarno, S., & Hutahuruk, M. B. (2020). Well-Being in Pekanbaru. Jurnal Manajemen Dan Kewirausahaan, 22(2), 142–151. https://doi.org/10.9744/jmk.22.2.142
Sabri, M. F., Cook, C. C., & Gudmunson, C. G. (2012). Financial well-being of Malaysian college students. Asian Education and Development Studies, 1(2), 153–170. https://doi.org/10.1108/20463161211240124
Sabri, M. F., & Falahati, L. (2012). Estimating a Model of Subjective Financial Well-being among College Students. International Journal of Humanities and Social Science, 2(18), 191–199. https://pdfs.semanticscholar.org/63f0/a9c2861cebeb57bf9847fe6a2169885b2718.pdf
Shefrin, H. (2009). Behavioralizing finance. Foundations and Trends in Finance, 4(1–2), 1–184. https://doi.org/10.1561/0500000030
Sina, P. G. (2013). Financial Efficacy and Financial Satisfaction : Ditinjau dari Perbedaan Gender. Jurnal Manajemen Maranatha, 12(2), 173–184. https://journal.maranatha.edu/index.php/jmm/article/view/164
Sumani, S., & Roziq, A. (2020). Financial Literation: Determinants of Financial Well-Being in the Batik Small and Medium Industries in East Java. Jurnal Aplikasi Manajemen, 18(2), 289–299. https://doi.org/10.21776/ub.jam.2020.018.02.09
Susan, M. (2018). Financial behavior and problems among college student in Indonesia: The role of financial knowledge. International Journal of Engineering and Technology(UAE), 7(3), 133–137. https://doi.org/10.14419/ijet.v7i3.25.17531
Published
2024-09-26
How to Cite
RATNAWATI, Ratnawati; NINGSIH, Ayu Agus Tya.
CONFIRMATORY ANALYSIS AS A TOOL FOR FORMING INDICATORS OF SELF-EFFICACY, FINANCIAL BEHAVIOR, AND FINANCIAL WELL-BEING.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 10, n. 1, p. 801-810, sep. 2024.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/2831>. Date accessed: 15 may 2026.
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Articles
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