The Role of Financial Knowledge and Behaviour to Sustain Future Business Resilience
Abstract
The Covid-19 pandemic has made economic and business conditions unstable. This causes a decline in the economic and business sectors which can lead to business failure. It is hoped that younger generation as future of the nation will not experience the same problem. So it is necessary to provide an understanding of financial knowledge and financial behaviour to the younger generation. This article aims to determine the role of financial knowledge and financial behaviour to the younger generation to sustain future business resilience. The data used is primary data that collected through questionnaires distributed to 579 samples of the younger generation at Islamic educational institutions in Surakarta Residence using convenience sampling technique. Quantitative approaches and descriptive analysis were used to answer the research questions. The result indicate that there is a relationship between financial knowledge and financial behaviour that can be used for younger generation to sustain future business resilience which consists of antecedents of inherent resilience, engineering resilience and adaptive resilience, so it is necessary to inculcate financial knowledge and behaviour since early stage.
References
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Dwiastanti, A. (2017). Analysis of financial knowledge and financial attitude on locus of control and financial management behavior. Management and Business Review, 1(1), 1. https://doi.org/10.21067/mbr.v1i1.2043
Gunawan, A., Koto, M., Yusnandar, W., & Jufrizen, J. (2022). Impact of Covid-19 Pandemic on the Financial Behavior. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(1), 300–321. https://doi.org/10.31538/iijse.v5i1.1849
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Jayanthi, M., & Rau, S. S. (2019). Determinants of rural household financial literacy: Evidence from south India. Statistical Journal of the IAOS, 35(2), 299–304. https://doi.org/10.3233/SJI-180438
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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
Khominich, I. P., Rybyantseva, M. S., Borodacheva, L. V, Dik, E. V, & Afanasev, E. V. (2016). Financial Management as a System of Relations of the Enterprise for Highly Efficient Management of its Finances. International Journal of Economics and Financial Issues, 6, 96–101. https://doi.org/https://doi.org/10.32479/ijefi.22584
Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: a systematic literature review. International Journal of Entrepreneurial Behaviour and Research, 24(7), 1129–1154. https://doi.org/10.1108/IJEBR-10-2016-0356
Levin, H. M. (2009). The economic payoff to investing in educational justice. Educational Researcher, 38(1), 5–20. https://doi.org/10.3102/0013189X08331192
Limnios, E. A. M., Mazzarol, T., Ghadouani, A., & Schilizzi, S. G. M. (2014). The resilience architecture framework: Four organizational archetypes. European Management Journal, 32(1), 104–116. https://doi.org/10.1016/j.emj.2012.11.007
Linnenluecke, M. K. (2017). Resilience in Business and Management Research: A Review of Influential Publications and a Research Agenda. International Journal of Management Reviews, 19(1), 4–30. https://doi.org/10.1111/ijmr.12076
Maharani, R., & Sari, T. A. M. (2021). Tourism Industry Bankruptcy Analysis of Impact Covid-19 Pandemic. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 339–350. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Mankiw, N. G. (2013). Defending the one percent. Journal of Economic Perspectives, 27(3), 21–34. https://doi.org/10.1257/jep.27.3.21
Mihajlović, M., Tadin, D., & Gordić, B. (2020). The role of financial management in the company. Tehnika, 75(4), 498–503. https://doi.org/10.5937/tehnika2004498m
Nugroho, N. S., & Panuntun, B. (2022). Pengaruh Financial Knowledge , Financial Skills , dan Income Terhadap Financial Management Behavior Generasi Z. Selektta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen, 01(01), 189–207. https://doi.org/https://journal.uii.ac.id/selma/article/view/23806
Pathirannahalage, S., & Abeyrathna, G. M. (2020). Factors Affecting To Personal Financial Management Behaviours Of GOVERNMENT Employees In Sri Lanka. International Journal of Scientific and Research Publications (IJSRP), 10(05), 761–767. https://doi.org/10.29322/ijsrp.10.05.2020.p10188
Perry, V. G., & Morris, M. D. (2005). Who is in control? the role of self-perception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299–313. https://doi.org/10.1111/j.1745-6606.2005.00016.x
Rahman, K., & Yulian, T. N. (2022). Pengaruh Perilaku Keuangan dan Pendapatan terhadap Keputusan Investasi Saat Pandemi Covid 19 dengan Literasi Keuangan sebagai Variabel Intervening. INOVASI : Jurnal Ekonomi , Keuangan Dan Manajemen, 18(1), 139–144. https://doi.org/10.29264/jinv.v18i1.10418
Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review, 8(1), 51–60. https://doi.org/10.1177/2319714519826651
Ramadhan, A. Y., & Asandimitra, N. (2019). Determinants of Financial Management Behavior of Millennial Generation in Surabaya. Jurnal Minds: Manajemen Ide Dan Inspirasi, 6(2), 129. https://doi.org/10.24252/minds.v6i2.9506
Ramli, Z., Nyirop, H. B. A., Sum, S. M., & Awang, A. H. (2022). The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth. Sustainability (Switzerland), 14(8), 1–13. https://doi.org/10.3390/su14084836
Rosyidah, U., & Pratikto, H. (2022). The role of behavioral bias on financial decision making: a systematic literature review and future research agenda. Journal of Enterprise and Development, 4(1), 156–179. https://doi.org/10.20414/jed.v4i1.5102
Sabri, M. F., Anthony, M., Wijekoon, R., Suhaimi, S. S. A., Abdul Rahim, H., Magli, A. S., & Isa, M. P. M. (2021). The Influence of Financial Knowledge, Financial Socialization, Financial Behaviour, and Financial Strain on Young Adults’ Financial Well-Being. International Journal of Academic Research in Business and Social Sciences, 11(12). https://doi.org/10.6007/ijarbss/v11-i12/11799
Shih, H.-M., Chen, B. H., Chen, M.-H., Wang, C.-H., & Wang, L.-F. (2022). A Study of the Financial Behavior Based on the Theory of Planned Behavior. International Journal of Marketing Studies, 14(2), 1. https://doi.org/10.5539/ijms.v14n2p1
Sina, P. G. (2014). Tipe Kepribadian Dalam Personal Finance. Jibeka, 8(1), 54–59.
Turkcan, Z. (2018). Financial Failure Prediction in Banks: The Case of European Union Countries. Journal of Business Research - Turk, 10(2), 554–569. https://doi.org/10.20491/isarder.2018.444
Vargas, S., & Rivera, H. A. (2019). Business Resilience a Dynamic Capability to Overcome Extreme Adversity Resiliencia empresarial una capacidad dinámica para enfrentar. Espacios, 40(February), 5.
Wang, J., Yang, J., Iverson, B. C., & Kluender, R. (2020). Bankruptcy and the COVID-19 Crisis. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3690398
Widyastuti, U., Sumiati, A., Herlitah, & Melati, I. S. (2020). Financial education, financial literacy, and financial Behaviour: What does really matter? Management Science Letters, 10(12). https://doi.org/10.5267/j.msl.2020.4.039
Adiputra, I. G., Suprastha, N., & Tania, L. (2021). The Influence of Financial Literacy, Financial Attitude and Locus of Control on Financial Satisfaction: Evidence From the Community in Jakarta. Journal of Contemporary Issues in Business and Government, 27(1), 3318–3332. https://doi.org/10.18502/kss.v5i5.8848
Amoa-Gyarteng, K. (2021). Corporate Financial Distress: The Impact of Profitability, Liquidity, Asset Productivity, Activity and Solvency. Journal of Accounting, Business and Management (JABM), 28(2), 104. https://doi.org/10.31966/jabminternational.v28i2.447
Anthony, R., Ezat, W. S., Junid, S. Al, & Moshiri, H. (2011). Financial Management Attitude and Practice among the Medical Practitioners in Public and Private Medical Service in Malaysia. International Journal of Business and Management, 6(8). https://doi.org/10.5539/ijbm.v6n8p105
Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences of the United States of America, 117(30), 17656–17666. https://doi.org/10.1073/pnas.2006991117
Castro, E. L., & Rebeca, M. (2014). Decision making in the financial management of the business enterprise. Journal of Intercultural Management, 5(2), 63–71. https://doi.org/10.2478/joim-2013-0010
Chen, H., & Volpe, R. P. (1998). Highly efficient measurement technology based on hyper-spectropolarimetric imaging. Financial Service Review, 7(2), 107–128. https://doi.org/10.3788/CJL201643.0811001
Dew, J., & Xiao, J. J. (2011). The financial management behavior scale: Development and validation. Journal of Financial Counseling and Planning, 22(1), 43–59.
Dwiastanti, A. (2017). Analysis of financial knowledge and financial attitude on locus of control and financial management behavior. Management and Business Review, 1(1), 1. https://doi.org/10.21067/mbr.v1i1.2043
Gunawan, A., Koto, M., Yusnandar, W., & Jufrizen, J. (2022). Impact of Covid-19 Pandemic on the Financial Behavior. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(1), 300–321. https://doi.org/10.31538/iijse.v5i1.1849
Hasibuan, B. K., Lubis, Y. M., & HR, W. A. (2018). Financial Literacy and Financial Behavior as a Measure of Financial Satisfaction. Advances in Economics, Business and Management Research (AEBMR), 46(July). https://doi.org/10.2991/ebic-17.2018.79
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh Financial Attitude,Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Jurnal Manajemen Teori Dan Terapan| Journal of Theory and Applied Management, 9(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hilgert, M., Hogarth, J., & Beverly, S. (2003). Household financial management: the connection between knowledge and behavior. Federal Reserve Bulletin, Jul, 309–322.
Hmieleski, K. M., Carr, J. C., & Baron, R. A. (2015). Integrating Discovery and Creation Perspectives of Entrepreneurial Action: The Relative Roles of Founding CEO Human Capital, Social Capital, and Physchological Capital in Context of Risk Versus Uncertainty. Strategic Entrepreneurship Journal, 306(September), 285–306. https://doi.org/10.1002/sej
Hogarth, J. M., & Hilgert, M. A. (2002). Financial knowledge, experience and learning preference: preliminary results from a survey on financial literacy. Journal of Family and Consumer Sciences, 48, 1–7.
Ida, I., & Dwinta, C. Y. (2010). Pengaruh Locus Of Control, Financial Knowledge, Income Terhadap Financial Management Behavior. Jurnal Bisnis Dan Akuntansi, 12(3), 131–144.
Jayanthi, M., & Rau, S. S. (2019). Determinants of rural household financial literacy: Evidence from south India. Statistical Journal of the IAOS, 35(2), 299–304. https://doi.org/10.3233/SJI-180438
Kaiser, T., Lusardi, A., Menkhoff, L., & Urban, C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145(2), 255–272. https://doi.org/10.1016/j.jfineco.2021.09.022
Keller, K. L., & Staelin, R. (1987). Effects of Quality and Quantity of Information on Decision Effectiveness. Journal of Consumer Research, 14(2), 200. https://doi.org/10.1086/209106
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
Khominich, I. P., Rybyantseva, M. S., Borodacheva, L. V, Dik, E. V, & Afanasev, E. V. (2016). Financial Management as a System of Relations of the Enterprise for Highly Efficient Management of its Finances. International Journal of Economics and Financial Issues, 6, 96–101. https://doi.org/https://doi.org/10.32479/ijefi.22584
Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: a systematic literature review. International Journal of Entrepreneurial Behaviour and Research, 24(7), 1129–1154. https://doi.org/10.1108/IJEBR-10-2016-0356
Levin, H. M. (2009). The economic payoff to investing in educational justice. Educational Researcher, 38(1), 5–20. https://doi.org/10.3102/0013189X08331192
Limnios, E. A. M., Mazzarol, T., Ghadouani, A., & Schilizzi, S. G. M. (2014). The resilience architecture framework: Four organizational archetypes. European Management Journal, 32(1), 104–116. https://doi.org/10.1016/j.emj.2012.11.007
Linnenluecke, M. K. (2017). Resilience in Business and Management Research: A Review of Influential Publications and a Research Agenda. International Journal of Management Reviews, 19(1), 4–30. https://doi.org/10.1111/ijmr.12076
Maharani, R., & Sari, T. A. M. (2021). Tourism Industry Bankruptcy Analysis of Impact Covid-19 Pandemic. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 339–350. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Mankiw, N. G. (2013). Defending the one percent. Journal of Economic Perspectives, 27(3), 21–34. https://doi.org/10.1257/jep.27.3.21
Mihajlović, M., Tadin, D., & Gordić, B. (2020). The role of financial management in the company. Tehnika, 75(4), 498–503. https://doi.org/10.5937/tehnika2004498m
Nugroho, N. S., & Panuntun, B. (2022). Pengaruh Financial Knowledge , Financial Skills , dan Income Terhadap Financial Management Behavior Generasi Z. Selektta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen, 01(01), 189–207. https://doi.org/https://journal.uii.ac.id/selma/article/view/23806
Pathirannahalage, S., & Abeyrathna, G. M. (2020). Factors Affecting To Personal Financial Management Behaviours Of GOVERNMENT Employees In Sri Lanka. International Journal of Scientific and Research Publications (IJSRP), 10(05), 761–767. https://doi.org/10.29322/ijsrp.10.05.2020.p10188
Perry, V. G., & Morris, M. D. (2005). Who is in control? the role of self-perception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299–313. https://doi.org/10.1111/j.1745-6606.2005.00016.x
Rahman, K., & Yulian, T. N. (2022). Pengaruh Perilaku Keuangan dan Pendapatan terhadap Keputusan Investasi Saat Pandemi Covid 19 dengan Literasi Keuangan sebagai Variabel Intervening. INOVASI : Jurnal Ekonomi , Keuangan Dan Manajemen, 18(1), 139–144. https://doi.org/10.29264/jinv.v18i1.10418
Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review, 8(1), 51–60. https://doi.org/10.1177/2319714519826651
Ramadhan, A. Y., & Asandimitra, N. (2019). Determinants of Financial Management Behavior of Millennial Generation in Surabaya. Jurnal Minds: Manajemen Ide Dan Inspirasi, 6(2), 129. https://doi.org/10.24252/minds.v6i2.9506
Ramli, Z., Nyirop, H. B. A., Sum, S. M., & Awang, A. H. (2022). The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth. Sustainability (Switzerland), 14(8), 1–13. https://doi.org/10.3390/su14084836
Rosyidah, U., & Pratikto, H. (2022). The role of behavioral bias on financial decision making: a systematic literature review and future research agenda. Journal of Enterprise and Development, 4(1), 156–179. https://doi.org/10.20414/jed.v4i1.5102
Sabri, M. F., Anthony, M., Wijekoon, R., Suhaimi, S. S. A., Abdul Rahim, H., Magli, A. S., & Isa, M. P. M. (2021). The Influence of Financial Knowledge, Financial Socialization, Financial Behaviour, and Financial Strain on Young Adults’ Financial Well-Being. International Journal of Academic Research in Business and Social Sciences, 11(12). https://doi.org/10.6007/ijarbss/v11-i12/11799
Shih, H.-M., Chen, B. H., Chen, M.-H., Wang, C.-H., & Wang, L.-F. (2022). A Study of the Financial Behavior Based on the Theory of Planned Behavior. International Journal of Marketing Studies, 14(2), 1. https://doi.org/10.5539/ijms.v14n2p1
Sina, P. G. (2014). Tipe Kepribadian Dalam Personal Finance. Jibeka, 8(1), 54–59.
Turkcan, Z. (2018). Financial Failure Prediction in Banks: The Case of European Union Countries. Journal of Business Research - Turk, 10(2), 554–569. https://doi.org/10.20491/isarder.2018.444
Vargas, S., & Rivera, H. A. (2019). Business Resilience a Dynamic Capability to Overcome Extreme Adversity Resiliencia empresarial una capacidad dinámica para enfrentar. Espacios, 40(February), 5.
Wang, J., Yang, J., Iverson, B. C., & Kluender, R. (2020). Bankruptcy and the COVID-19 Crisis. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3690398
Widyastuti, U., Sumiati, A., Herlitah, & Melati, I. S. (2020). Financial education, financial literacy, and financial Behaviour: What does really matter? Management Science Letters, 10(12). https://doi.org/10.5267/j.msl.2020.4.039
Published
2022-07-20
How to Cite
Prawestri, A., Silviani, W., & Astuti, Y. (2022). The Role of Financial Knowledge and Behaviour to Sustain Future Business Resilience. Annual International Conference on Islamic Economics and Business (AICIEB), 2(1), 212-223. https://doi.org/https://doi.org/10.18326/aicieb.v2i1.162
Section
ARTICLES
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