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:: Volume 13, Issue 2 (Spring 2018) ::
J. Mon. Ec. 2018, 13(2): 177-194 Back to browse issues page
An Ordered Probit Approach for Exploring the Role of Self-Efficacy and Financial Literacy on Personal Finance Behavior
Fateme Khobani1, Mohammad Hosein Sadraei 2, Mohammad Ebrahim Aghababaei1
1- Faculty of Financial Sciences, Kharazmi University
2- Sistan & Balouchestan University
Abstract:   (916 Views)
The present study investigates the impact of financial self-efficacy on personal finance behavior. To this end, the data collected from the questionnaire have been employed. Once the validity and reliability of the questionnaire are confirmed, the relation between financial self-efficacy and the likelihood of holding a specific financial product is studied using the multivariate Probit model. Products are subsequently categorized into two distinct groups based on the type of relationship. Afterward, the relation between financial self-efficacy and the likelihood of holding the number of products in each category is evaluated using the ordered Probit model. In this study, the cluster random sampling method is employed. The results are indicative of a negative and significant relationship between financial self-efficacy and the likelihood of holding bank facilities as well as a positive and significant relationship between financial self-efficacy and the likelihood of holding time deposits, Qarz Al-Hassaneh savings account, insurance, and corporate bonds and stocks. Furthermore, it is inferred that financial self-efficacy has a positive and significant impact on desirable financial behavior and a negative and significant impact on undesirable financial behavior.
Keywords: Financial Self- efficacy, Financial Behavior, Personal Finance
This paper was originally published with only the second and third authors’ names. The first author’s name has been added to the paper on June 27, 2021, per the request of the corresponding author by email on June 21, 2021.
Full-Text [PDF 1279 kb]   (612 Downloads)    
Type of Study: Original Research - Empirical | Subject: Economics
Received: 9 Dec 2018 | Accepted: 8 Sep 2019 | Published: 20 Apr 2020
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Khobani F, Sadraei M H, Aghababaei M E. An Ordered Probit Approach for Exploring the Role of Self-Efficacy and Financial Literacy on Personal Finance Behavior. J. Mon. Ec.. 2018; 13 (2) :177-194
URL: http://jme.mbri.ac.ir/article-1-346-en.html


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Volume 13, Issue 2 (Spring 2018) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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