Interaction of mental accounting, financial self-efficacy, and financial attitude on financial behavior
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Abstract
The purpose of this study is to investigate how mental accounting, financial attitude, financial knowledge, and financial self-efficacy affect the financial behavior of university students that engaged in business startups. A total of 400 questionnaires were collected from startup business owners, predominantly aged under 25 and with less than 3 years of business experience. Hypotheses were tested using SMART-PLS. The results indicate that financial attitude and financial self-efficacy have an impact on financial behavior, while mental accounting influences financial self-efficacy and financial attitude, and financial behavior. Furthermore, financial knowledge influences financial attitude, although it does not directly affect financial attitude and mental accounting
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How to Cite
Dwi Radianto, W. E., & Pramudita, N. A. (2024). Interaction of mental accounting, financial self-efficacy, and financial attitude on financial behavior. Enrichment : Journal of Management, 14(2), 156-167. https://doi.org/10.35335/enrichment.v14i2.1886
References
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Amanah, E., Rahadian, D., & Iradianty, A. (2016). Pengaruh Financial Knowledge, Financial Attitude dan External Locus Of Control Terhadap Personal Financial Management Behavior Pada Mahasiswa S1 Universitas Telkom. In eProceedings of Management (Vol. 3).
Angle, P., Konidala, S., Ujwal, D., Vishnu, B., & Misra, S. (2019). Impact of Mental Accounting Bias on Stock Market Integration. Journal of Xian University of Architecture and Technology, 11(12), 283–304.
Asaff, R., Suryati, & Rahmayani, R. (2019). Pengaruh Financial Attitude dan Financial Knowledge terhadap Financial Management Behavior (Studi Kasus pada Mahasiswa Fakultas Ekonomi Konsentrasi Keuangan Universitas Andi Djemma Palopo). Journal of Economics, Management and Accounting, 2(2), 68–74.
Bandura, A. (1978). Self-efficacy: Toward a unifying theory of behavioral change. Advances in Behaviour Research and Therapy, 1(4), 139–161. https://doi.org/10.1016/0146-6402(78)90002-4
Borden, L. M., Lee, S. A., Serido, J., & Collins, D. (2008). Changing college students’ financial knowledge, attitudes, and behavior through seminar participation. Journal of Family and Economic Issues, 29(1), 23–40. https://doi.org/10.1007/s10834-007-9087-2
Capuano, A., & Ramsay, I. (2012). What Causes Suboptimal Financial Behaviour? An Exploration of Financial Literacy, Social Influences and Behavioural Economics. SSRN Electronic Journal, (540). https://doi.org/10.2139/ssrn.1793502
CFP Board, Zhang, C. Y., & Sussman, A. B. (2018). The Role of Mental Accounting in Household Spending and Investing Decisions. Client Psychology. https://doi.org/10.1002/9781119440895.ch6
Çoşkun, A., & Dalziel, N. (2020). Mediation effect of financial Attitude on financial knowledge and financial behavior. International Journal of Research in Business and Social Science (2147- 4478), 9(2), 01–08. https://doi.org/10.20525/ijrbs.v9i2.647
Faique, F. A., Ismail, S., Bakri, M. H., Idris, N. H., Yazid, Z. A., Daud, S., & Taib, N. M. (2017). Testing the financial Attitude as a mediator for the relationship between financial self-efficacy with financial behavior. Advanced Science Letters, 23(8), 8009–8012. https://doi.org/10.1166/asl.2017.9632
Faktor, A., Memengaruhi, Y., Management, F., Dengan, B., Locus, M., & Control, O. F. (2020). Analisis faktor yang memengaruhi financial management behavior dengan mediasi locus of control, 8, 549–563.
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
Henderson, P. W., & Peterson, R. A. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51(1), 92–117. https://doi.org/10.1016/0749-5978(92)90006-S
Herdjiono, I., Damanik, L. A., & Musamus, U. (2016). Pengaruh Financial Attitude, Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Manajemen Teori Dan Terapan, 1(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hsee, C. K., & Kunreuther, H. C. (2000). The Affection Effect in Insurance Decisions. Journal of Risk and Uncertainty, 20(2), 141–159. https://doi.org/10.1023/A:1007876907268
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Ibrahim, D. I. D., Harun, R., & Isa, Z. M. (2010). A study on financial literacy of Malaysian degree students. Cross-Cultural Communication, 5(4), 51–59. https://doi.org/10.3968/j.ccc.1923670020090504.006
Ismail, S., Faique, F. A., Bakri, M. H., Zain, Z. M., Idris, N. H., Yazid, Z. A., … 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
Ismail, S., Koe, W.-L., Halim Mahphoth, M., Abu Karim, R., Yusof, N., & Ismail, S. (2020). Saving Behavior Determinants in Malaysia: An Empirical Investigation. KnE Social Sciences, 2020, 731–743. https://doi.org/10.18502/kss.v4i6.6639
Kirbis, I. Š., Vehovec, M., & Galic, Z. (2016). Relationship Between Financial Satisfaction and Financial Literacy : Exploring. Drus Istraz Zagreb God, 26(2), 165–185.
Laili Rizkiawati, N., & Asandimitra, N. (2018). Pengaruh Demografi, Financial Knowledge, Financial Attitude, Locus of Control Dan Financial Self-Efficacy Terhadap Financial Management Behavior Masyarakat Surabaya. Jurnal Ilmu Manajemen (JIM), 6(3), 93–107.
Lind, T., Ahmed, A., Skagerlund, K., Strömbäck, C., Västfjäll, D., & Tinghög, G. (2020). Competence, Confidence, and Gender: The Role of Objective and Subjective Financial Knowledge in Household Finance. Journal of Family and Economic Issues, (0123456789), 1–13. https://doi.org/10.1007/s10834-020-09678-9
Lown, J. M. (2011). Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54.
Micrets Agustina, S., & Grace, P. (2013). Mental accounting Dan Faktor Demografi: Fenomena Penggunaan Kartu Kredit Pada Pegawai Bank Danamon Cabang Ambon Micrets. Jurnal Bina Nusantara, 1(1), 39–50.
Mudzingiri, C., Muteba, M., Keyser, J. W., & Nicolaas, J. (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
Parrey, S. H., & Hakeem, I. A. (2018). Financial Knowledge and Financial Behaviour of Agri-Allied Entrepreneurs: A Mediational Study of Cultural Values. Sankalpa, 8(2), 1–11.
Potrich, A. C. G., Vieira, K. M., Coronel, D. A., & Bender Filho, R. (2015). Financial literacy in Southern Brazil: Modeling and invariance between genders. Journal of Behavioral and Experimental Finance, 6, 1–12. https://doi.org/10.1016/j.jbef.2015.03.002
Radianto, W. E. D., Efrata, T. C., & Dewi, L. (2019). Level of Financial Literacy in Young Entrepreneurs: Study on Entrepreneurship-based University. In KnE Social Sciences (pp. 385–398).
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
Sarigül, H. (2014). A Survey of Financial Literacy Among University Students. Journal of Accounting & Finance, (64), 207–224.
Saurabh, K., & Nandan, T. (2018). Role of financial risk attitude and financial Behavior as mediators in financial satisfaction: Empirical evidence from India. South Asian Journal of Business Studies, 7(2), 207–224. https://doi.org/10.1108/SAJBS-07-2017-0088
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287–297. https://doi.org/10.1177/0165025413479476
Shefrin, H. M., & Thaler, R. H. (1988). The behavioral life‐cycle hypothesis. Economic Inquiry, 26(4), 609–643. https://doi.org/https://doi.org/10.1111/j.1465-7295.1988.tb01520.x
Silaya, M. A., & Persulessy, G. (2017). Mental accounting Dan Faktor Demografi: Fenomena Penggunaan Kartu Kredit Pada Pegawai Bank Danamon Cabang Ambon. Jurnal Soso-Q, 5(1), 57–67. https://doi.org/10.30598/sosoq.v5i1.112
Srivastava, M., Sharma, G. D., & Srivastava, A. K. (2019). The human brain and financial Behavior: a microfinance perspective. International Journal of Ethics and Systems, 35(4), 485–503. https://doi.org/10.1108/IJOES-02-2019-0036
Sugiyanto, T., Radianto, W. E. D., Efrata, T. C., & Dewi, L. (2019). Financial Literacy, Financial Attitude, and Financial Behavior of Young Pioneering Business Entrepreneurs. In 2019 International Conference on Organizational Innovation (ICOI 19) (pp. 353–358). Atlantis Press. https://doi.org/10.2991/icoi-19.2019.60
Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199–214. https://doi.org/https://doi.org/10.1287/mksc.4.3.199
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183–206. https://doi.org/https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
Van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2012). Financial literacy, retirement planning and household wealth. The Economic Journal, 122(560), 449–478. https://doi.org/10.1111/j.1468-0297.2012.02501.x
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial knowledge, Attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4), 21–48.
Zamri, M., Bakar, A., & Bakar, S. A. (2020). Prudent Financial Behaviour among Youth : The Role of Financial Attitude, (8), 30–34. https://doi.org/10.35940/ijmh.H0765.044820
Zhao, X., Lynch, J. G., and Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and Truths About Mediation Analysis. Journal of Consumer Research, 37(2), 197–206
Ajzen, I. (2012). The theory of planned behavior. Handbook of Theories of Social Psychology: Volume 1, 211, 438–459. https://doi.org/10.4135/9781446249215.n22
Amanah, E., Rahadian, D., & Iradianty, A. (2016). Pengaruh Financial Knowledge, Financial Attitude dan External Locus Of Control Terhadap Personal Financial Management Behavior Pada Mahasiswa S1 Universitas Telkom. In eProceedings of Management (Vol. 3).
Angle, P., Konidala, S., Ujwal, D., Vishnu, B., & Misra, S. (2019). Impact of Mental Accounting Bias on Stock Market Integration. Journal of Xian University of Architecture and Technology, 11(12), 283–304.
Asaff, R., Suryati, & Rahmayani, R. (2019). Pengaruh Financial Attitude dan Financial Knowledge terhadap Financial Management Behavior (Studi Kasus pada Mahasiswa Fakultas Ekonomi Konsentrasi Keuangan Universitas Andi Djemma Palopo). Journal of Economics, Management and Accounting, 2(2), 68–74.
Bandura, A. (1978). Self-efficacy: Toward a unifying theory of behavioral change. Advances in Behaviour Research and Therapy, 1(4), 139–161. https://doi.org/10.1016/0146-6402(78)90002-4
Borden, L. M., Lee, S. A., Serido, J., & Collins, D. (2008). Changing college students’ financial knowledge, attitudes, and behavior through seminar participation. Journal of Family and Economic Issues, 29(1), 23–40. https://doi.org/10.1007/s10834-007-9087-2
Capuano, A., & Ramsay, I. (2012). What Causes Suboptimal Financial Behaviour? An Exploration of Financial Literacy, Social Influences and Behavioural Economics. SSRN Electronic Journal, (540). https://doi.org/10.2139/ssrn.1793502
CFP Board, Zhang, C. Y., & Sussman, A. B. (2018). The Role of Mental Accounting in Household Spending and Investing Decisions. Client Psychology. https://doi.org/10.1002/9781119440895.ch6
Çoşkun, A., & Dalziel, N. (2020). Mediation effect of financial Attitude on financial knowledge and financial behavior. International Journal of Research in Business and Social Science (2147- 4478), 9(2), 01–08. https://doi.org/10.20525/ijrbs.v9i2.647
Faique, F. A., Ismail, S., Bakri, M. H., Idris, N. H., Yazid, Z. A., Daud, S., & Taib, N. M. (2017). Testing the financial Attitude as a mediator for the relationship between financial self-efficacy with financial behavior. Advanced Science Letters, 23(8), 8009–8012. https://doi.org/10.1166/asl.2017.9632
Faktor, A., Memengaruhi, Y., Management, F., Dengan, B., Locus, M., & Control, O. F. (2020). Analisis faktor yang memengaruhi financial management behavior dengan mediasi locus of control, 8, 549–563.
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
Henderson, P. W., & Peterson, R. A. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51(1), 92–117. https://doi.org/10.1016/0749-5978(92)90006-S
Herdjiono, I., Damanik, L. A., & Musamus, U. (2016). Pengaruh Financial Attitude, Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Manajemen Teori Dan Terapan, 1(3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Hsee, C. K., & Kunreuther, H. C. (2000). The Affection Effect in Insurance Decisions. Journal of Risk and Uncertainty, 20(2), 141–159. https://doi.org/10.1023/A:1007876907268
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Ibrahim, D. I. D., Harun, R., & Isa, Z. M. (2010). A study on financial literacy of Malaysian degree students. Cross-Cultural Communication, 5(4), 51–59. https://doi.org/10.3968/j.ccc.1923670020090504.006
Ismail, S., Faique, F. A., Bakri, M. H., Zain, Z. M., Idris, N. H., Yazid, Z. A., … 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
Ismail, S., Koe, W.-L., Halim Mahphoth, M., Abu Karim, R., Yusof, N., & Ismail, S. (2020). Saving Behavior Determinants in Malaysia: An Empirical Investigation. KnE Social Sciences, 2020, 731–743. https://doi.org/10.18502/kss.v4i6.6639
Kirbis, I. Š., Vehovec, M., & Galic, Z. (2016). Relationship Between Financial Satisfaction and Financial Literacy : Exploring. Drus Istraz Zagreb God, 26(2), 165–185.
Laili Rizkiawati, N., & Asandimitra, N. (2018). Pengaruh Demografi, Financial Knowledge, Financial Attitude, Locus of Control Dan Financial Self-Efficacy Terhadap Financial Management Behavior Masyarakat Surabaya. Jurnal Ilmu Manajemen (JIM), 6(3), 93–107.
Lind, T., Ahmed, A., Skagerlund, K., Strömbäck, C., Västfjäll, D., & Tinghög, G. (2020). Competence, Confidence, and Gender: The Role of Objective and Subjective Financial Knowledge in Household Finance. Journal of Family and Economic Issues, (0123456789), 1–13. https://doi.org/10.1007/s10834-020-09678-9
Lown, J. M. (2011). Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54.
Micrets Agustina, S., & Grace, P. (2013). Mental accounting Dan Faktor Demografi: Fenomena Penggunaan Kartu Kredit Pada Pegawai Bank Danamon Cabang Ambon Micrets. Jurnal Bina Nusantara, 1(1), 39–50.
Mudzingiri, C., Muteba, M., Keyser, J. W., & Nicolaas, J. (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
Parrey, S. H., & Hakeem, I. A. (2018). Financial Knowledge and Financial Behaviour of Agri-Allied Entrepreneurs: A Mediational Study of Cultural Values. Sankalpa, 8(2), 1–11.
Potrich, A. C. G., Vieira, K. M., Coronel, D. A., & Bender Filho, R. (2015). Financial literacy in Southern Brazil: Modeling and invariance between genders. Journal of Behavioral and Experimental Finance, 6, 1–12. https://doi.org/10.1016/j.jbef.2015.03.002
Radianto, W. E. D., Efrata, T. C., & Dewi, L. (2019). Level of Financial Literacy in Young Entrepreneurs: Study on Entrepreneurship-based University. In KnE Social Sciences (pp. 385–398).
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
Sarigül, H. (2014). A Survey of Financial Literacy Among University Students. Journal of Accounting & Finance, (64), 207–224.
Saurabh, K., & Nandan, T. (2018). Role of financial risk attitude and financial Behavior as mediators in financial satisfaction: Empirical evidence from India. South Asian Journal of Business Studies, 7(2), 207–224. https://doi.org/10.1108/SAJBS-07-2017-0088
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287–297. https://doi.org/10.1177/0165025413479476
Shefrin, H. M., & Thaler, R. H. (1988). The behavioral life‐cycle hypothesis. Economic Inquiry, 26(4), 609–643. https://doi.org/https://doi.org/10.1111/j.1465-7295.1988.tb01520.x
Silaya, M. A., & Persulessy, G. (2017). Mental accounting Dan Faktor Demografi: Fenomena Penggunaan Kartu Kredit Pada Pegawai Bank Danamon Cabang Ambon. Jurnal Soso-Q, 5(1), 57–67. https://doi.org/10.30598/sosoq.v5i1.112
Srivastava, M., Sharma, G. D., & Srivastava, A. K. (2019). The human brain and financial Behavior: a microfinance perspective. International Journal of Ethics and Systems, 35(4), 485–503. https://doi.org/10.1108/IJOES-02-2019-0036
Sugiyanto, T., Radianto, W. E. D., Efrata, T. C., & Dewi, L. (2019). Financial Literacy, Financial Attitude, and Financial Behavior of Young Pioneering Business Entrepreneurs. In 2019 International Conference on Organizational Innovation (ICOI 19) (pp. 353–358). Atlantis Press. https://doi.org/10.2991/icoi-19.2019.60
Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199–214. https://doi.org/https://doi.org/10.1287/mksc.4.3.199
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183–206. https://doi.org/https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
Van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2012). Financial literacy, retirement planning and household wealth. The Economic Journal, 122(560), 449–478. https://doi.org/10.1111/j.1468-0297.2012.02501.x
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial knowledge, Attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4), 21–48.
Zamri, M., Bakar, A., & Bakar, S. A. (2020). Prudent Financial Behaviour among Youth : The Role of Financial Attitude, (8), 30–34. https://doi.org/10.35940/ijmh.H0765.044820
Zhao, X., Lynch, J. G., and Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and Truths About Mediation Analysis. Journal of Consumer Research, 37(2), 197–206