School of Administrative Studies
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Item Open Access The role of financial risk-taking attitude in personal finances and consumer satisfaction: Evidence from Australia(International Journal of Bank Marketing, 2023-03-20) Tahir, Muhammad; Richards, Daniel; Ahmed, Abdullahi DahirPurpose – Financial risk-taking attitude (FRT) plays an important role in consumers' financial decisions, thereby determining consumer well-being. Motivated by the recent research on consumer well-being, this paper explores the relationships between financial literacy, a propensity to plan (PTP), a financial risk-taking attitude (FRT), financial satisfaction, and life satisfaction. Design/methodology/approach – We use the Household, Income and Labour Dynamics in Australia (HILDA) survey to achieve the purpose of this paper. Furthermore, we use the variance-based Partial Least Square Structural Equation Modelling (PLS-SEM), also known as the PLS path modelling approach to test our proposed hypotheses empirically. Findings – We find a strong partial mediation of FRT between financial literacy and financial satisfaction. Moreover, the analyses reveal that a high PTP combined with a high FRT results in achieving high financial satisfaction, which leads to improved life satisfaction. Practical implications – Our findings show the importance of creating financial plans in accordance with risk tolerance. While increasing financial literacy is relevant, our research suggests that tools that help consumers plan and invest in appropriate risky investments will lead to better outcomes. Originality/value – Though scholarly acumen of consumer well-being is rapidly developing, little remains known regarding the collective roles of financial literacy, a PTP, and FRT. We address this gap by showing that financial literacy, risk-taking attitudes, and planning propensities are all interconnected and necessary ingredients to improve financial and life satisfaction.Item Open Access The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction(International Journal of Bank Marketing, 2022-03-15) Tahir, Muhammad; Shahid, Ahmad Usman; Richards, DanielThis paper explores the direct and indirect associations between financial resilience and life satisfaction, using the moderation of non-impulsive behavior and mediation of financial satisfaction. We analyze the Australian household dataset, named the Household, Income and Labour Dynamics in Australia (HILDA) Survey, to meet the objectives of this paper. Furthermore, we use the PROCESS Models 4 and 7 to test the mediation and the combined moderated mediation relationships, respectively. We find the complete mediation of the relationship between financial resilience and life satisfaction by financial satisfaction. Also, we find that both financial resilience and non-impulsive behavior positively contribute to financial satisfaction, which is positively associated with life satisfaction. Our research supports the need for consumers to build emergency funds as financial resilience is related to consumer well-being. Our research also recommends that impulsive behavior should be addressed by the personal finance curriculum and financial advisors. Our research contributes by showing that financial satisfaction is an important predictor of consumers’ well-being. The ability to access financial resources, which increases for non-impulsive consumers, is associated with increased life satisfaction but only via financial satisfaction.