The Regression Analysis of Individual Financial Performance: Evidence from Croatia

Abstract

Background: A large body of empirical literature indicates that gender and financial literacy are significant determinants of individual financial performance. Objectives: The purpose of this paper is to recognize the impact of the variable financial literacy and the variable gender on the variation of the financial performance using the regression analysis. Methods/Approach: The survey was conducted using the systematically chosen random sample of Croatian financial consumers. The cross section linear regression model is estimated in order to assess how gender as a dummy variable and financial literacy as an ordinal categorical variable impact financial performance. Results: The results indicate that the average value of financial performance for men is higher than the average value of financial performance for women at the same financial literacy level. Furthermore, a higher level of financially literacy is related to a higher level of financial performance. Conclusions: Both gender and financial literacy have a statistically significant impact on individual financial performance. Increasing financial literacy and understanding gender differences in terms of financial literacy and financial well-being should be of interest to financial educators in their struggles to improve financial situation of citizens and for educators to create financial education programs intended for men and women.

Internal Migration, Regional Economic Convergence, and Growth in Croatia

“…The nonpresence of serial autocorrelation is tested by the Wooldridge test, cross-sectional independence by the Pesaran test, and homoscedasticity in the residuals by the modified Wald test. If these assumptions are violated, the estimated values of parameters are although consistent and not biased though inefficient (see Bahovec and Erjavec 2009). Hoechle (2007) suggests that in the case of heteroscedasticity, cross-sectional dependence, and serial autocorrelation, one should use the panel regression model with Driscoll and Kraay (1998) standard errors since it is robust on all three specification violations.…”

Modelling Factors Affecting Lung Capacity

“…The listed below are some of the literature of the studies of recent past done using linear regression model. Vlasta Bahovec [2], They researched on Regression analysis of individual financial performance. They used cross-section linear regression model to estimate how gender as a dummy variable and financial literacy as an ordinal /categorical variable impact financial performance.…”

Financial Capability Formation and the Variables That Effect It with Respect to Canadian Consumers

“…Moreover, the sources through which one would expect to address any unexpected expenses that can be of small and big amount of transactions is also important to note in the pillar of planning ahead. This methodology of analyzing spending patterns is prevalent in both Basic Skills Financial Capability Framework (Basic Skills Agency, 2004) and even studies in Croatia and Canada (Bahovec et al 2017). The chart below explains the number of respondents tending towards the different sources of money providers in case of unexpected expenditure were to occur.…”

“…There has been a wide array of studies on the financial capability of citizens of different countries. Financial capability has also been an engaging subject matter for government policies and banking institutions as financial literacy and gender has served as significant determinants of individual financial performance (Bahovec et al 2017). In the domain of public policies, non-profit organizations and government agencies such as Basic Skill Agency and Financial Services Authority in the United Kingdom in 2004 (Kempson et al 2005) took an initiative for financial services regulations to promote better understanding and attitudes towards the financial system.…”