Determinants of indebtedness: influence of behavioral and demographic factors

Rahman, Mahfuzur and Azma, Nurul and Masud, Md. Abdul Kaium and Ismail, Yusof (2020) Determinants of indebtedness: influence of behavioral and demographic factors. International Journal of Financial Studies, 8 (8). pp. 1-14. E-ISSN 2227-7072

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Abstract

This study aims to examine the influence of behavioral and demographic factors on indebtedness by constructing a model using specific determinants. The exploratory method is used through the partial least square (SmartPLS) technique, by surveying 320 respondents in Kuala Lumpur, Malaysia. A self-administered questionnaire was administered to respondents, addressing both demographic and behavioral factors. The results confirmed four of the eight hypotheses stated. Among the determinants, risk perception had a highly significant relationship with both materialism and emotion, while indebtedness had a relationship with emotion and materialism. The findings also indicated that significant differences exist between indebtedness and behavioral factors on the basis of gender, marital status, age, income, and dependence on credit cards and loans. The results may assist various economic players to design better models for credit offerings and address the credit problem in the long term.

Item Type:	Article (Journal)
Additional Information:	8121/88142
Uncontrolled Keywords:	indebtedness; behavioral factors; demographic factors; Malaysia
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG179 Personal finance H Social Sciences > HG Finance > HG3691 Credit
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Mr Yusof Ismail
Date Deposited:	03 Feb 2021 16:35
Last Modified:	03 Feb 2021 16:35
URI:	http://irep.iium.edu.my/id/eprint/88142

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