Financial literacy in Southern Brazil: Modeling and invariance between genders

Potrich, Ani Caroline Grigion; Vieira, Kelmara Mendes; Coronel, Daniel Arruda; Filho, Reisoli Bender

doi:10.1016/j.jbef.2015.03.002

Cited by 61 publications

(55 citation statements)

References 43 publications

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“…Despite the growing number of financial literacy publications and the huge convergence in terms of its current relevance (Potrich et al, 2015a(Potrich et al, , 2015b, consensus is paradoxically lacking in Academia on how to conceptualize and operationalize it (Huston, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial literacy in Brazil – do knowledge and self-confidence relate with behavior?

Ramalho

Forte

2019

RAUSP Management Journal

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Purpose-People are increasingly responsible for making sound financial decisions to foster their financial satisfaction and well-being, which magnifies the importance of financial literacy, and this concept and measurement is still not yet crystallized in the literature, specifically capturing different behavior perceptions. Moreover, there is not a distinction based on different classifications of behavior, such as over or underconfidence, to understand the relation between literacy and decision process. To fill this gap, this paper aims to investigate whether the financial literacy conceptual model proposed applies similarly to every group independently of their previous self-confidence perception. For this purpose and quality control, OECD (2016) data were used with a final sample of 1,487 Brazilian citizens. Quantitative analysis technique using partial least squares structural equations path modeling and differences between groups using multi-group analysis was applied. In line with general studies, when analyzing the financial literacy usual model for the group as a whole, financial knowledge construct positively influences self-confidence, and both together positively affect financial behavior. However, for individuals with low financial knowledge and low self-confidence, as well as for those with too much or too little confidence, the model did not hold. Therefore, self-confidence perception influences the way financial knowledge is used for financial decisions and should be addressed in financial education and training to be more effective. Design/methodology/approach-To operationalize the variables and test the paper's hypotheses, the authors used the methodology developed in OECD (2016), based on the research instrument's Brazilian application adapted from the questionnaire developed in OECD (2015), with data initially used and made available by Garber and Koyama (2016). Based on the recommendations of Hair Jr et al. (2017a, 2017b), the authors used partial least squares modeling PLS-PM (SmartPLS 3.2.6) to estimate the structural models. Findings-Concerning structural relationships, the final model showed knowledge with a positive influence on self-confidence, self-confidence with a positive effect on behavior and knowledge with a positive influence on behavior, both directly and, through its relationship with self-confidence, indirectly. This underscores that, for the total sample, the greater people's knowledge and self-confidence, the better their behavior. The unexpected absence of attitude in the final model, even allowing for potential measurement problems, brings up an important reflection on the mediating effect that the self-control variable may exert between attitude and behavior. A person may believe that saving for the future is important (attitude) but whether they actually save (behavior) may depend on self-control, which is needed to prevent immediate gains from being prioritized in practice. Research limitations/implications-The findings reported so far concern the study's total sample....

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Section: Literature Reviewmentioning

confidence: 99%

Financial literacy in Brazil – do knowledge and self-confidence relate with behavior?

Ramalho

Forte

2019

RAUSP Management Journal

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“…Differences in financial literacy are also linked to gender issues. Overall, women display a much lower basic financial knowledge compared to men, this being sharper when considering advanced financial literacy (Almenberg and Dreber, 2015;Lusardi and Mitchell, 2008;Mottola, 2013;Potrich et al, 2015). The gender gap is widespread across countries (Bucher-Koenen et al, 2017), being this pattern highest in more developed countries (Cupák et al, 2018).…”

Section: Entrepreneurship Financial Literacy and The Gender Effectmentioning

confidence: 99%

“…Previous literature has documented a strong association between financial literacy and households' financial decision-making, such as wealth accumulation, retirement planning (Bucher-Koenen and Lusardi, 2011;Lusardi andMitchell, 2007a, 2011a,b;Van Rooij et al, 2012), investment (Disney and Gathergood, 2013;Lusardi and Tufano, 2009;Lusardi and Mitchell, 2007a;Stango and Zinman, 2009) and stock market participation (Jappelli and Padula, 2015;Klapper et al, 2013;Van Rooij et al, 2011). A number of works have documented the presence of gender differences in financial literacy (Almenberg and Dreber, 2015;Lusardi and Mitchell, 2008;Mottola, 2013;Potrich et al, 2015). However, despite the agreement that financial literacy is crucial for financial behavior and well-being, the relationship between entrepreneurship and financial literacy, and how this is affected by gender differences, has been largely under-investigated.…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurial spirits in women and men. The role of financial literacy and digital skills

2019

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We investigate the attitudes to entrepreneurship of Italian households, focusing on the importance of digital skills and financial literacy as potentially relevant factors shaping entrepreneurial entry. We put the gender focus to our analysis to detect whether, and to what extent, women and men differ in their propensity to run a business. We carry out our research by using a sample of the Bank of Italy SHIW dataset for the year 2008 and 2010. Our findings suggest a strong heterogeneity, between men and women, of the importance of digital skills and financial literacy as entrepreneurial drivers. Results show that the impact of financial literacy on the probability of being an entrepreneur is significant, but only for men. Digital skills increase the probability of being entrepreneur with a bigger effect for men than for women.

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“…In other words, the above definition focused on three basic dimensions of financial literacy which are financial knowledge, financial behavior and financial attitude. In line with Agarwalla et al (2013) and Potrich et al (2015) this paper adopted the definition proposed by OECD.…”

Section: Financial Literacymentioning

confidence: 99%

“…The study uses homogeneous purposive sampling which focus one particular subgroup who have similar eISSN: 2395-6518, Vol 7, No 2, 2019, pp 376-383 https://doi.org/10.18510/hssr.2019.7244 characteristics or set of characteristics, such as a particular occupation or level in an organization's hierarchy (Crossman, 2017). The study adopted the questionnaire used by Potrich et al (2015) and Bhatt (2017). It consists of three parts which are section A, section (socio-demographic profiles), section B (to measure independent variable), and section C (to measure the basic and advanced financial literacy).…”

Section: Data Collectionmentioning

confidence: 99%

Financial Literacy Among Sme’s in Malaysia

Thabet

Ali

Kantakji

2019

HSSR

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Purpose of Study: The objective of this study is to investigate the financial literacy among the SMEs in food and beverage sectors in Malaysia. Methodology: Small and Medium Enterprises (SMEs) play an important role in countries’ economic growth. However, the failure rate among SMEs getting higher. The literature stipulated that the lack of financial literacy is one of the main reasons caused this failure. Results: The results of 122 returned questionnaires shows that the socio-demographic factors such as age and marital status have influenced SME’s financial literacy. Moreover, the financial attitude and financial behavior found to be positively related to the financial literacy among the SMEs.

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Financial literacy in Southern Brazil: Modeling and invariance between genders

Cited by 61 publications

References 43 publications

Financial literacy in Brazil – do knowledge and self-confidence relate with behavior?

Financial literacy in Brazil – do knowledge and self-confidence relate with behavior?

Entrepreneurial spirits in women and men. The role of financial literacy and digital skills

Financial Literacy Among Sme’s in Malaysia

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