Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Impact of Founder's Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Impact of Founder's Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia
The Impact of Founder's Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia
Subject
Behavioral Finance; Financial Literacy; Founder's Behavior; Multivariate Regression Analysis; SMEs Performance.
Description
This research focuses on the SMEs development evaluation of the impact of founder's financial behavior, measured by behavioral characteristics of CEOs capacity for selfawareness, planning, and patience, also their knowledge about financial understanding which affect the ability to manage their performance of SMEs. The purpose of this research is to analyze and reduce the rate of failure of SMEs in Indonesia by pursuing the defined
determinants from their behavioral traits and self-knowledge on financial understanding in decision making. This study uses a survey conducted across Indonesia, mainly on Java island, with a sample size of 482 SMEs. This research uses PLS-SEM and multivariate regression analysis as a tool for measuring the impact of founder's financial behavior variables and financial literacy variable for SMEs performance as a dependent variable. The
findings show that financial literacy and three of the four variables of financial behavior traits are significant. It demonstrates that the confidence, impulsivity, financial act, and financial literacy of the founders significantly impact the soundness of SMEs. The findings also suggest that founders with strong financial knowledge and low impulsivity may make better decisions in the workplace.
determinants from their behavioral traits and self-knowledge on financial understanding in decision making. This study uses a survey conducted across Indonesia, mainly on Java island, with a sample size of 482 SMEs. This research uses PLS-SEM and multivariate regression analysis as a tool for measuring the impact of founder's financial behavior variables and financial literacy variable for SMEs performance as a dependent variable. The
findings show that financial literacy and three of the four variables of financial behavior traits are significant. It demonstrates that the confidence, impulsivity, financial act, and financial literacy of the founders significantly impact the soundness of SMEs. The findings also suggest that founders with strong financial knowledge and low impulsivity may make better decisions in the workplace.
Creator
Nakita Gusman, Subiakto Soekarno, Isti Raafaldini Mirzanti
Source
DOI: 10.26905/jkdp.v25i3.5142
Publisher
Universitas Merdeka Malang
Date
July 2021
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Nakita Gusman, Subiakto Soekarno, Isti Raafaldini Mirzanti, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Impact of Founder's Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia,” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4800.
The Impact of Founder's Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia,” Repository Horizon University Indonesia, accessed November 21, 2024, https://repository.horizon.ac.id/items/show/4800.