School of Administrative Studies
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Item Open Access Financial Literacy and Financial Well-being of Australian Consumers: A Moderated Mediation Model of Impulsivity and Financial Capability(Emerald, 2021-06-24) Tahir, Muhammad; Ahmed, Abdullahi Dahir; Richards, DanielWe test a moderated mediation model for a twofold purpose. First, to examine the mediating role of financial capability (FC) in the association between financial literacy (FL) and financial well-being (FW). Second, to analyze if non-impulsive future-oriented behavior (NIB) moderates the associations of FL with FC and FL with FW. We use the PROCESS macros in IBM SPSS Statistics to test the moderated mediation model and analyze the 2016 wave of the Household, Income and Labour Dynamics in Australia Survey. The empirical analysis shows that FC partially mediates the association between FL and FW. Furthermore, the moderated mediation analysis shows that NIB strengthens the associations of FL with FC and FL with FW. Specifically, the positive associations of FL with FC and FL with FW significantly increase for those consumers who score high on NIB. The findings have implications for the financial services industry. Professional financial planners can positively improve the ability of consumers to deal with their financial matters by highlighting the importance of FL and NIB. To our knowledge, this is the first study to assess a moderated mediation model, which examines the role of FC as a mediator variable and NIB as a moderator variable in the association between FL and FW.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.