Self-Efficacy, Religiosity, Financial Behavior, and Financial Well-Being

Mei Teh Goi ,
Mohd Rizal Palil ,
Nor Hazila Mohd Zain ,
Nor Hasikin Mamat

Abstract

Past literature has intensively investigated numerical factors in determining financial behavior and financial well-being. This study aimed to examine the impact of non-numerical cognitive factors toward financial behavior and financial well-being. The two non-numerical cognitive factors are self-efficacy and religiosity. Based on Bandura’s social cognitive theory, self-efficacy was adopted. Given the importance of religion in the decision making process of Muslims, it has been incorporated into this study. A total of 219 data from the Muslim community were used to test the research model. This study employed Structural Equation Modeling (SEM) to examine the interconnections among self-efficacy, religiosity, financial behaviour, and financial well-being. This study found that self-efficacy and religiosity were significantly related with financial behavior and financial well-being. However, there was no significant correlation between financial behaviour and financial well-being. This study suggests that self-efficacy and religiosity should be considered in supporting individuals’ financial decision making. Confidence in managing money and strong spiritual life can enhance Muslims in addressing financial matters.

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About this article

Publication Date

06 May 2024

Article Doi

https://doi.org/10.15405/epsbs.2024.05.35

eBook ISBN

978-1-80296-132-4

Publisher

European Publisher

Volume

133

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-1110

Subjects

Marketing, retaining, entrepreneurship, management, digital marketing, social entrepreneurship

Cite this article as:

Goi, M. T., Palil, M. R., Zain, N. H. M., & Mamat, N. H. (2024). Self-Efficacy, Religiosity, Financial Behavior, and Financial Well-Being. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 420-431). European Publisher. https://doi.org/10.15405/epsbs.2024.05.35

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