바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

  • P-ISSN2765-6934
  • E-ISSN2765-7027
  • KCI

Investigating the Determinants of Public Servant Income Management

Asian Journal of Business Environment / Asian Journal of Business Environment, (P)2765-6934; (E)2765-7027
2018, v.8 no.2, pp.33-41
MdLazim Mohd Zin (Universiti Utara Malaysia)
Hadziroh Ibrahim (Universiti Utara Malaysia)
Ahmad Zafwan Sulaiman (Unit Pemodenan Tadbiran dan Perancangan Pengurusan Malaysia (MAMPU),)

Abstract

Purpose - This study aims to examine the determinants of income management of the public servant. Three independent variables are examined such as attitude towards money, financial capability and debt management while the dependent variable is financial wellbeing of public servants. Research design, data, and methodology – Quantitative research is applied in this study, and data are collected by using cross sectional approach. Survey questionnaires are obtained from 270 respondents, which represents 79% response rate. The multiple regressions are used to examine the influence of attitude towards money, financial capability and debt management towards financial wellbeing. Results - The result of the multiple regression indicated positive influences of attitude towards money and financial capability on financial wellbeing. However, debt management found no significant influence on financial wellbeing. Conclusions - Research findings show that people have different attitudes towards money and different trends of expenditure. It is also crucial to be highlighted that employees’ attitude and financial capability have a greater influence on overall satisfaction with employees’ financial wellbeing. Some would want to show off their luxury items they bought to close friends or relatives and some are very prudent in making expenditures even for necessity items.

keywords
Attitudes Towards Money, Financial Capability, Income Management, Public Servants.

Reference

1.

Anderloni, L., & Vandone, D. (2008). Household over-indebtedness in the economic literature. Working paper of Dipartimento Di Scienze Economiche Aziendali E Statistiche.

2.

Anderloni, L., & Vandone, D. (2010). Risk off over-indebtedness and behavioural factors, Working paper of Dipartimento Di Scienze Economiche Aziendali E Statistiche.

3.

Atkinson, A., McKay, S., Kempson, E., & Collard, S. (2006). Levels of Financial Capability in the UK. Results of a Baseline Survey. Bristol: University of Bristol.

4.

Bailey, K. D. (2002). Methods of Social Research. New York: Free Press.

5.

Baumeister, R. F. (2008). Yielding to temptation: Self-control failure, impulsive purchasing, and consumer behavior. Journal Pengguna, 28, 670-676.

6.

Baumeister, R. F., Bratslavsky, E., Muraven, M., & Tice, D. M. (1998). Ego depletion: Is the active self a limited resource?. Journal of Personality and Social Psychology, 74(5), 1252-1265.

7.

Becker, T. A., & Shabani, R. (2010). Outstanding Debt and the Household Portfolio. The Review of Financial Studies, 23(7), 2900-2934.

8.

Bensaid, B., Fadila, G., Roslan, M. N., & Yakub, Z. M. Y. (2013). Enduring financial debt: An Islamic perspective. Middle East Journal of Scientific Research, 13(2), 162-170.

9.

Berita Harian (2013). Kesempitan hidup punca ramai cerai: 'Urus kewangan perlu ditekan' dated 12 August 2013 Retrieved January 16, 2018 from http://www2.bharian.com.my/articles/Kesempitanhiduppuncaramaicerai__Uruskewanganperluditekan_/Article/

10.

Berita Harian (2013). Bekas KP Imigresen dijatuhi hukuman penjara dated 30 October 2013 Retrieved January 16, 2018 from http://www.bharian.com.my/articles/BekasKPImigresendijatuhi hukumanpenjara/Article/

11.

Besley, T., & Persson, T. (2010). State Capacity, Conflict, and Development. Econometrica, 78(1), 1-34.

12.

Borg, W. R., & Gall, M. D. (1979). Applying Educational Research: A Practical Guide. Boston, Mass.: Pearson / Allyn & Bacon.

13.

Campbell, D., & Fiske, D. (1959). Convergent and Discriminant Validation. Psychological. 56, 81-105.

14.

Campbell, J. (2006). Household Finance. Journal of Finance, 61(4), 553-1604.

15.

Cheema, A., & Soman, D. (2006). Malleable mental accounting: The effect of flexibility on the justification of attractive spending and consumption decisions. Journal of Consumer Psychology, 16(1), 33-44.

16.

Christopher, A. N., Marek, P., & Carroll, S. M. (2004). Materialism and attitudes toward money: An exploratory investigation. Individual Differences Research, 2, 109-117.

17.

Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates Publishers.

18.

Cox, A., Hooker, H., Markwick, C., & Reilly, P. (2009). Financial Wellbeing in the Workplace. Report 464, Institute for Employment. Retrieved January 16, 2018 from http://www.employment-studies.co.uk/sub/summary/php?id=464.

19.

Credit Management and Counselling Agency (AKPK) Media Fact Sheet as of July 2013.

20.

Credit Management and Counselling Agency (AKPK) Media Fact Sheet as of May 2014.

21.

Creswell, J. W. (2004). Research Design: Qualitative & Quantitative Approaches. Thousand Oaks: Sage Publications.

22.

D’ Alessio, G., & Lezzi, S. (2012). Household over-indebtedness; Definition and measurement with Italian data. Working paper of Economic and Financial Statistics Department, Bank of Italy.

23.

Department of the Treasury, President’s Advisory Council on Financial Capability. (2012). Interim report of the President’s advisory council on financial capability. Retrieved January 16, 2018 from http://www.treasury.gov/resourcecenter/financialeducation/Documents/PACFC%20Interim%20Report%20-%20January%2018,%202012.pdf

24.

Dixon, M. (2006). Rethinking Financial Capability: Lessons From Economic Psychology And Behavioural Finance. London, UK: Institute for Public Policy Research.

25.

Eagly, A. H., & Chaiken S. (1993). The Psychology of Attitudes. Orlando, FL, US: Harcourt Brace Jovanovich College Publishers.

26.

Eccles, J., Templeton, J., Barber, B., & Stone, M. (2003). Adolescence and emerging adulthood: The critical passage ways to adulthood. In M. H. Bornstein, L. Davidson, C. L. M. Keyes, & K. A. Moore (Eds.), Well-being: Positive development across the life course (pp.383–406). Mahwah, NJ : Lawrence Erlbaum.

27.

Ellen, P. S. (1994). Do we know what we need to know? Objective and subjective knowledge effects on pro-ecological behaviors. Journal of Business Research, 30, 43–52.

28.

Fazli, M. S., & Leila, F. (2003). Predictors of Financial Well-Being among Malaysian Employees: Examining the Mediate Effect of Financial Stress. Journal of Emerging Economies and Islamic Research. 1, 23-32.

29.

Fazli, M. S., & Mumtazah, O. (2010). Financial literacy: Research, education and policy implication. Family and Consumer Sciences Research Journal, 14, 53-71.

30.

FINRA Investor Education Foundation (2009). Financial Capability in the United States: National Survey—Executive Summary. Washington, DC. Retrieved January 16, 2018 from http://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p120535.pdf

31.

Fogel, J., & Schneider, M. (2011). Credit card use: disposable income and employment status. Young consumers. 12(1), 5-14.

32.

Furnham. A. (1984). Many Sides of the Coin: the Psychology of Money Usage. Personality and Individual Differences, 5, 501-509.

33.

Garman, E. T., Leech, I. E., & Grable, J. E. (1996). The negative impact of employee poor personal financial behaviors on employers. Financial Counselling and Planning, 7, 157-168.

34.

Green, S. B., & Salkind, N. J. (2006). Using SPSS for Windows and Macintosh; Analyzing and Understanding Data, Fifth Edition, Upper Saddle River, New Jersey: Pearson / Prentice Hall.

35.

Gujarati (2005). Basic Econometrics (Translation by Sumarno Zain). Jakarta: Erlangga.

36.

Hair, J. F., & Bush, R. P. (2003). Marketing Research Within a Changing Information Environment. New York: McGraw-Hill.

37.

Hanley, A., & Wilhelm, M. (1992). Compulsive Buying: An exploration into self-esteem and money attitudes. Journal of Economic Psychology, 13, 5-18.

38.

Hanson, A., Forsell, Y., Hochwalder, J., & Hilleras, P. (2008). Impact of changes in life circumstances on subjective well-being in an adult population over a 3-year period. Public Health, 122, 1392-1398.

39.

Harian Metro (2011). Nikah Tebus Hutang Karpet dated 3 February 2011 Retrieved January 16, 2018 from http://www.hmetro.com.my/articles/Nikahtebushutangkarpet/Article

40.

Henry, G. T. (1990). Practical Sampling. Newbury Park. CA: Sage.

41.

Kerlinger, F. N. (1973). Foundations of Behavioral Research (2nd ed.). American Problem Series. New York: Holt, Rinehart and Winston, Inc.

42.

Kim, J., Garman, E. T., & Sorhaindo, B. (2003). Relationships among credit counselling, financial well-being and health. Consumer Interests Annual, 49, 1-12.

43.

Knight, J. A. (1968). For the Love of Money. New York: J. B. Lippincott Co.

44.

Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement. The NEA Research Bulletin, 38, 99.

45.

Legge, J., & Heynes, A. (2009). Beyond Reasonable Debt: A Background Report on the Indebtedness of New Zealand Families. Social Policy Journal of New Zealand, 35, 65-70.

46.

Leila, F., & Laily, P. (2011). A Comparative Study in Money Attitude among University Students: A Gendered View. Journal of American Science, 7(6) 1144-1148.

47.

Lindgren, H. C. (1980). Great Expectations: The Psychology of Money, Los Altos: William Kaufmann, Inc., 58-99.

48.

Lown, J. M., & Ju, I. S. (1992). A Model of Credit Use and Financial Satisfaction. Journal of Financial Counseling and Planning, 3, 105-125.

49.

Lusardi, A. (2011). Americans’ Financial Capability. National Bureau of Economic Research Reports, Harvard Business School.

50.

Lusardi, A., & Tufano, P. (2008). Debt Literacy, Financial Experiences and Over-indebtedness. (NBER Working Paper No. 14808). Cambridge, MA: National Bureau of Economic Research.

51.

Malhotra, M. K., Steel, D. C., & Grover, V. (2007). Decision Sciences: Important Strategic and Tactical Manufacturing Issues. 25(2), 121-129.

52.

Mason, H. K. (2002). Consumer Credit and Spending Trends. Bernstein Research. Sanford: Bernstein & Co.

53.

Moore, D. (2003). Survey of Financial Literacy in Washington State: Knowledge, Behavior, Attitudes, and Experiences. Technical Report No. 03-39, Social and Economic Sciences Research Center, Washington State University.

54.

Mottola, G. R. (2014). The Financial Capability of Young Adults - A Generational View. FINRA Foundation Financial Capability Insights. Washington, DC: FINRA Investor Education Foundation.

55.

Nuraini, A., Fazli, M. S., Husniyah, A. R., Mohd Amim, O., Mastura, M. A., & Nurul Farhana, Z. (2013). Pengurusan Kewangan Dalam Kalangan Pekerja Muda, Jurnal Pengguna Malaysia, 21, 45-51.

56.

Opsahl, R. L., & Dunnette, M. D. (1966). The role of financial incentives in industrial motivation. Psychological Bulletin. 66, 95-116.

57.

Polit, D. F., & Beck, C. T. (2004). Nursing Research: Principles and Methods (7th Ed.). Philadelphia: Lippincott Williams and Wilkins.

58.

Porter, N. M., & Garman, E. T. (1993). Testing a Conceptual Model of Financial Well-Being. Financial Counselling and Planning, 4, 135-165.

59.

Raduan, C. R. (2002). Japanese-Style Management Abroad: The Case of Malaysian Subsidiaries. Kuala Lumpur: Prentice Hall.

60.

Raju, P. S., Lonial, S. C., & Mangold, W. G. (1995). Differential effects of subjective knowledge, objective knowledge, and usage experience on decision making: An exploratory investigation. Journal of Consumer Psychology, 4(2), 153–180.

61.

Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. The Journal of Consumer Affairs, 44(2), 276-295.

62.

Roberts, J. A., & Jones, E. (2001). Money Attitudes, Credit Card Use, and Compulsive Buying among American College Students. Journal of Consumer Affairs, 35, 213-240.

63.

Sabitha, M. (2005). Kaedah penyelidikan sains sosial. Petaling Jaya, Malaysia: Prentice Hall Pearson.

64.

Salkind, N. J. (2006). Exploring Research (6th Ed.). Upper Saddle River, New Jersey: Pearson.

65.

Sekaran, U. (2000). Research Methods for Business: A Skill Building Approach. New York: John Wiley and Sons.

66.

Sekaran, U. (2003). Research Methods for Business, a Skill- Building Approach (4th Ed.). New York: John Wiley and Sons Inc.

67.

Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A Skill Building Approach (6th Ed.). New York: John Wiley and Sons Inc.

68.

Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development. 37, 113-121.

69.

Sherraden, M. S. (2010). Financial Capability: What Is It and How It Can Be Created?. St. Louis, MO: Washington University, Center for Social Development.

70.

Strumpel, B. (1976). Economic Means for Human Needs. Ann Arbor, MI: Institute for Social Research.

71.

Shim, J. K., & Siegel, J. G. (1995). Dictionary of Economics. New York: John Wiley & Sons.

72.

Tashakkori, A., & Teddlie, C. (1998). Mixed Methodology: Combining Qualitative and Quantitative Approaches. New York: Sage Publications.

73.

Thums, S. L., Newman, B. M., & Xiao, J. J. (2008). Credit card debt reduction and development stages of the lifespan. Journal of Personal Finance, 6, 86-107.

74.

Utusan (2014). Hutang Anggota TLDM Membimbangkan – Abdul Aziz dated 4 October 2014 Retrieved January 16, 2018 from http://www.utusan.com.my/berita/nasional/hutang-anggota-tldm-membimbangkan-abdul-aziz-1.11596

75.

Wernimont, P. F., & Fitzpatrick, S. (1972). The meaning of money. Journal of Applied Psychology, 56(3), 218-226.

76.

Whitsett, C. H. (2012). High debt, low information: A survey of student loan borrowers. NERA Economic Counsulting on Behalf of Young Invicibles.

77.

Williams, F. L., Haldeman, V., & Cramer, S. (1996). Effect of financial concerns upon workplace behaviour and productivity. Financial Counselling and Planning, 7, 147-155.

78.

Zafar, U. A., Ishak. I., Sadiq, S., Ibrahim, T., & Hasbalaila, A. (2010). Malaysian consumers’ credit card usage behaviour. Asia Pacific Journal of Marketing and Logistics, 22(4), 528-544.

79.

Zeti, A. A. (2013). Report On Financial Stability And Payment Systems of 2012 submitted to the Prime Minister on 20th March 2013. Central Bank of Malaysia.

80.

Zikmund, W. G. (2003). Business Research Methods (7th Ed.). Kentucky: Thomson Southwestern.

Asian Journal of Business Environment