Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control
Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relatio...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-11-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19087/IMFI_2023_04_Gunawan.pdf |
| _version_ | 1797356624933814272 |
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| author | Ade Gunawan Mukmin Sri Fitri Wahyuni Maya Sari |
| author_facet | Ade Gunawan Mukmin Sri Fitri Wahyuni Maya Sari |
| author_sort | Ade Gunawan |
| collection | DOAJ |
| description | Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances.
AcknowledgmentThis study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023. |
| first_indexed | 2024-03-08T14:29:22Z |
| format | Article |
| id | doaj.art-bb022e1839a44745873e1fbf141c1f8d |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-03-08T14:29:22Z |
| publishDate | 2023-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-bb022e1839a44745873e1fbf141c1f8d2024-01-12T12:35:26ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582023-11-0120417118110.21511/imfi.20(4).2023.1519087Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of controlAde Gunawan0https://orcid.org/0000-0002-5366-4914Mukmin1https://orcid.org/0000-0001-7262-9682Sri Fitri Wahyuni2https://orcid.org/0000-0001-9470-9480Maya Sari3https://orcid.org/0000-0001-6479-0011Dr., Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]Senior Lecturer, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]Dr., Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances. AcknowledgmentThis study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19087/IMFI_2023_04_Gunawan.pdffinancial management behaviorIndonesiaPaylaterSEM-PLS |
| spellingShingle | Ade Gunawan Mukmin Sri Fitri Wahyuni Maya Sari Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control Investment Management & Financial Innovations financial management behavior Indonesia Paylater SEM-PLS |
| title | Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control |
| title_full | Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control |
| title_fullStr | Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control |
| title_full_unstemmed | Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control |
| title_short | Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control |
| title_sort | factors affecting financial management behavior of paylater users in indonesia examining the moderating role of locus of control |
| topic | financial management behavior Indonesia Paylater SEM-PLS |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19087/IMFI_2023_04_Gunawan.pdf |
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