A Comparison of Financial Well-Being and Its Antecedents Across Different Employment Categories in Malaysia

  • Nurul Shahnaz Mahdzan University of Malaya
  • Mohd Edil Abd Sukor University of Malaya
  • Rozaimah Zainudin University of Malaya
  • Fauzi Zainir University of Malaya
  • Wan Marhaini Wan Ahmad University of Malaya
Keywords: financial well-being, financial stress, locus of control, financial behaviour, employment

Abstract

This study compares the level of financial well-being (FWB) and its antecedents
(financial stress, financial behaviour, financial literacy, and the internal locus of control
(LOC)) across individuals of different employment categories in Malaysia. Second, it investigates the relationship between those antecedents and FWB and compares the differences in the strength. Data were collected from 1,867 respondents from four employment groups using a questionnaire-based survey. Descriptive statistics and analysis of variance (ANOVA) were conducted to achieve the first research objective, and ordinary least squares (OLS) regression was used to achieve the second research objective. The results indicate that FWB and its antecedents of Malaysian employees vary considerably across employment categories. The FWB of the unemployed and private-sector workers is significantly lower than their government sector and self-employed counterparts. Financial
stress, financial behavior, and an internal LOC are the most determinative of employees’
FWB, however, they have varying degrees of impact across different employment categories. The results relate to employers and policymakers in formulating strategies to promote
higher FWB among Malaysian employees, based on their employment categories.

Author Biographies

Nurul Shahnaz Mahdzan, University of Malaya

MAHDZAN, Nurul Shahnaz, is the current Head and an Associate Professor at the Department of Finance, Faculty of Business and Economics, Universiti Malaya. She earned her PhD (Business and Management) (2010) from the University of Nottingham, UK, and her Master of Business Administration (2005) concentrating in Finance from Universiti Malaya. Her research interests are  the behaviour and psychology of households in regards to financial and economic decision-making. She has publications in numerous local and international peer-reviewed journals including those from Web of Science and Scopus-indexed journals. 

Author's contact: Department of Finance, Faculty of Business and Economics, 50603 Kuala Lumpur

Mohd Edil Abd Sukor, University of Malaya

SUKOR, Mohd Edil Abd is an Associate Professor at the Department of Finance, Faculty of Business & Economics, University of Malaya. He earned his PhD in Finance (2014) from the University of Melbourne, Australia, his Master of Business Administration (2007) concentrating in Finance from the International Islamic University of Malaysia and his Bachelor of Shariah in Management (2004) from the Universiti Malaya. His research interests are the Islamic Finance, Financial Management, Consumer Finance and Investment. He has publications in numerous local and international peer-reviewed journals including Applied Financial Economics, Journal of Islamic Accounting and Business Research, International Journal of Emerging Markets and Social Indicator Research.

Author's contact: Department of Finance, Faculty of Business and Economics, 50603 Kuala Lumpur. 

Rozaimah Zainudin, University of Malaya

ZAINUDIN, Rozaimah, is an Associate Professor at the Department of Finance, Faculty of Business and Economics, Universiti Malaya. She earned her PhD (2011) in Derivatives from University of Malaya. Her research interests include corporate finance, international finance and financial services. She has publications in many local and international peer-reviewed journals including Borsa Istanbul Review, International Journal of Bank Marketing, International Journal of Emerging Markets, Finance a Uver, Social Indicators Research, Journal of Business Ethics, Economic Research-Ekonomska Istraživanja etc.

Author's contact: Department of Finance, Faculty of Business and Economics, 50603 Kuala Lumpur. 

Fauzi Zainir, University of Malaya

ZAINIR, Fauzi is the Senior lecturer at the Department of Finance, Faculty of Business and Economics, Universiti Malaya. He received his PhD (Finance) (2012) from Coventry University, UK, and his Master of Business Administration and M.Sc in Management Information System (1988) from the University of Miami, Florida His research interests are mainly in the area of Financial Development and Corporate Finance. He has publications in several local and international peer-reviewed journals, including those from Web of Science and Scopus-indexed journals.

Author's contact: Department of Finance, Faculty of Business and Economics, 50603 Kuala Lumpur. 

Wan Marhaini Wan Ahmad, University of Malaya

WAN AHMAD, Wan Marhaini, is an Associate Professor at the Department of Finance, Faculty of Business and Economics, Universiti Malaya. She earned her PhD (Islamic Finance) (2012) from the University of Edinburgh, and her Master of Economics (2002) from the International Islamic University of Malaysia. Her research interests are Islamic finance and banking in particular related to Shariah issues and behaviour of the household who subscribe to its products and services. She has publications in numerous local and international peer-reviewed journals including those from Web of Science and Scopus-indexed journals.

Author's contact: Department of Finance, Faculty of Business and Economics, 50603 Kuala Lumpur. 

References

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Published
2023-09-05
How to Cite
Mahdzan, N. S., Sukor, M. E. A., Zainudin, R., Zainir, F., & Ahmad, W. M. W. (2023). A Comparison of Financial Well-Being and Its Antecedents Across Different Employment Categories in Malaysia. Gadjah Mada International Journal of Business, 25(3), 255-277. Retrieved from https://jurnal.ugm.ac.id/v3/gamaijb/article/view/15820
Issue
Vol 25 No 3 (2023): September-December
Section
Articles

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