The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (Fintech)

Risman, Asep; Ali, Anees Janee; Soelton, Mochamad; Siswanti, Indra

doi:10.14414/tiar.v13i1.3213

Cited by 11 publications

(25 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The overconfidence that results in Overconfidence Bias is one form of decision making which is influenced by emotion (emotional bias), so that investors tend to have more audacity to make a risky decision [33]. Over confidence will encourage someone to easily make a decision, without any doubts, with further consideration, so that the decision is immediately made.…”

Section: Discussionmentioning

confidence: 99%

The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions

Soraya,

Risman,

Siswanti

2023

JEFMS

View full text Add to dashboard Cite

This study aims to analyze the impact of Overconfidence Bias, Representativeness Bias, and Herding towards investment decision making through Risk Tolerance, where psychological and social factors could have effect on the investors' decision making process. The sample was gathered using Snowball Sampling technique on 200 stock investors who have made transactions in the Indonesian Stock Exchange. The data was analyzed using SEM PLS with Smart PLS 3.2.9 application. The result shows that Overconfidence Bias and Representativeness Bias have significant impact on both direct and indirect investment decision making process through Risk Tolerance. On the other hand, Herding shows no effect on direct and indirect investment decision making process through Risk Tolerance.

show abstract

Section: Discussionmentioning

confidence: 99%

The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions

Soraya,

Risman,

Siswanti

2023

JEFMS

View full text Add to dashboard Cite

show abstract

“…The rise of Islamic finance has accelerated financial inclusion in previously less deserving groups and now it is focusing on the right people. Financial inclusion is indispensable because approach to financial services is a key factor in development, growth, and opportunity (Ali et al, 2023;Danladi et al, 2023;Risman et al, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the Role of Islamic FinTech Innovation Trialability and Compatibility in Enhancing Islamic Financial Inclusion: A Data-driven Approach

Rashid Hayat,

Waseem ul Hameed

2024

ABBDM

View full text Add to dashboard Cite

The promotion of Islamic financial inclusion (IFI) is a challenge for Islamic banking industry in Pakistan. Although, Islamic banks are trying to enhance IFI, however, a satisfactory level is not achieved. Therefore, the objective of this study is to examine the role of trialability and compatibility in enhancing IFI. A questionnaire survey was preferred in this study to collected data from clients of Islamic banks in Punjab, Pakistan. 317 valid questionnaires were received and used to obtain findings. Structural Equation Modeling (SEM) was used through Smart PLS to test the study hypotheses. Findings of the study identified that trialability and compatibility has a positive role to promote IFI. Furthermore, compatibility has a positive effect on IFI, however, trialability does not influence IFI directly, it has indirect effect through Islamic FinTech adoption (IFA). Findings of the study provided various important insights for the policymakers to promote IFI.

show abstract

“…MSMEs' economic role is undeniably linked to their performance and the capabilities of entrepreneurs and managers (Kyndt & Baert, 2015;Mishra & Zachary, 2015), particularly in financial management. In financial management, MSMEs, especially micro and small enterprises (UMK), exhibit distinctive characteristics as they transition from personal to corporate financial management (Risman et al, 2023). This phenomenon is a point of interest for researchers, notably those in behavioral finance.…”

Section: Introductionmentioning

confidence: 99%

“…However, specific research addressing the influence of fintech on the financial behavior of MSMEs remains relatively scarce. A limited body of research on this subject includes studies by Junianto and Kohardinata (2020), Tukan et al (2020), Anisyah et al (2021), Apriyanti andRamadita (2022), andRisman et al (2023). Junianto and Kohardinata (2020) found that fintech plays a pivotal role in shaping investment decisions, whereas Risman et al (2023) discovered that fintech positively impacts MSME financial actors.…”

Section: Introductionmentioning

confidence: 99%

“…A limited body of research on this subject includes studies by Junianto and Kohardinata (2020), Tukan et al (2020), Anisyah et al (2021), Apriyanti andRamadita (2022), andRisman et al (2023). Junianto and Kohardinata (2020) found that fintech plays a pivotal role in shaping investment decisions, whereas Risman et al (2023) discovered that fintech positively impacts MSME financial actors. Conversely, Tukan et al (2020), Anisyah et al (2021), and Apriyanti and Ramadita (2022) concluded that fintech does not significantly influence financial behavior.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Behavioral Finance of MSME in Indonesia: Financial Literacy, Financial Technology (Fintech), and Financial Attitudes

Rahayu,

Risman,

Firdaus

et al. 2023

IDEB

View full text Add to dashboard Cite

The study investigates the critical factors affecting financial behavior in Micro, Small, and Medium Enterprises (MSMEs). It analyzes the role of financial literacy, attitudes, and financial technology (Fintech) on financial management behavior among 1.1 million DKI Jakarta MSME stakeholders in 2020 through random sampling. The study reveals that heightened financial literacy positively influences financial management behavior. A solid foundation in financial knowledge, encompassing personal and corporate finance, leads to improved financial practices. This validates theories about cognitive biases, heuristics, and practical financial decision-making. Additionally, it emphasizes the pivotal role of positive financial attitudes in shaping financial management behavior. Stakeholders with constructive attitudes, such as financial self-control and proactive financial approaches, make sound financial decisions. This aligns with theories of planned behavior, which underscore attitudes in guiding future financial actions. Conversely, the influence of financial technology (Fintech) on MSME financial behavior is limited, primarily due to a lack of awareness and understanding among small and micro-enterprise operators regarding Fintech products and services. This study underscores the importance of promoting financial literacy, nurturing positive financial attitudes, and enhancing Fintech awareness among MSMEs. It offers actionable insights for policymakers, financial institutions, and business support organizations, enabling them to bolster MSMEs’ financial knowledge and practices, thereby supporting their role as economic powerhouses.

show abstract

The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (Fintech)

Cited by 11 publications

References 0 publications

The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions

The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions

Exploring the Role of Islamic FinTech Innovation Trialability and Compatibility in Enhancing Islamic Financial Inclusion: A Data-driven Approach

The Behavioral Finance of MSME in Indonesia: Financial Literacy, Financial Technology (Fintech), and Financial Attitudes

Contact Info

Product

Resources

About