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Article

Determinants of Indebtedness: Influence of Behavioral and Demographic Factors

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Faculty of Business & Accountancy, University Malaya, Kuala Lumpur 50603, Malaysia
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Institute for Advanced Studies, University Malaya, Kuala Lumpur 50603, Malaysia
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Department of Business Administration, Noakhali Science and Technology University, Noakhali 3814, Bangladesh
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Department of Sustainability Management, Inha University, Incheon 22212, Korea
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Kulliyyah of Economics and Management Sciences, IIUM Gombak Campus, Selangor 53100, Malaysia
*
Author to whom correspondence should be addressed.
Int. J. Financial Stud. 2020, 8(1), 8; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs8010008
Received: 22 December 2019 / Revised: 1 February 2020 / Accepted: 3 February 2020 / Published: 10 February 2020
(This article belongs to the Special Issue Advances in Behavioural Finance and Economics)
This study aims to examine the influence of behavioral and demographic factors on indebtedness by constructing a model using specific determinants. The exploratory method is used through the partial least square (SmartPLS) technique, by surveying 320 respondents in Kuala Lumpur, Malaysia. A self-administered questionnaire was administered to respondents, addressing both demographic and behavioral factors. The results confirmed four of the eight hypotheses stated. Among the determinants, risk perception had a highly significant relationship with both materialism and emotion, while indebtedness had a relationship with emotion and materialism. The findings also indicated that significant differences exist between indebtedness and behavioral factors on the basis of gender, marital status, age, income, and dependence on credit cards and loans. The results may assist various economic players to design better models for credit offerings and address the credit problem in the long term. View Full-Text
Keywords: indebtedness; behavioral factors; demographic factors; Malaysia indebtedness; behavioral factors; demographic factors; Malaysia
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MDPI and ACS Style

Rahman, M.; Azma, N.; Masud, M.A.K.; Ismail, Y. Determinants of Indebtedness: Influence of Behavioral and Demographic Factors. Int. J. Financial Stud. 2020, 8, 8. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs8010008

AMA Style

Rahman M, Azma N, Masud MAK, Ismail Y. Determinants of Indebtedness: Influence of Behavioral and Demographic Factors. International Journal of Financial Studies. 2020; 8(1):8. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs8010008

Chicago/Turabian Style

Rahman, Mahfuzur, Nurul Azma, Md. A.K. Masud, and Yusof Ismail. 2020. "Determinants of Indebtedness: Influence of Behavioral and Demographic Factors" International Journal of Financial Studies 8, no. 1: 8. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs8010008

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