Article Sidebar

Download
View Article
Statistic
Read Counter : 641 Download : 300

Downloads

Download data is not yet available.

Main Article Content

Abstract

The purpose of this study is to analyze the causality of the relationship between Financial Education, Availability of Human Resources for Financial Education, Financial Knowledge, Adoption of Financial Behavior, HR Performance, Employee Financial Productivity, Corporate Financial Welbeing. This study uses a quantitative approach which is then processed using smartpls as an analysis tool. The data collection method used an online questionnaire addressed to 268 respondents. The results of this study state that overall, this research illuminates the importance of individual financial behavior in an organizational context. By highlighting Adoption of Financial Behavior as the focal point, this study shows that individual financial behavior has a significant impact on the company's financial well-being, employee productivity, and overall human resource performance. Managerial implications affirm the need for greater investment in financial education in the workplace to shape positive financial behaviors and support the financial well-being of the firm. Meanwhile, the theoretical implications reinforce the conceptual basis of the role of financial education in shaping prudent financial behavior in an organizational context. With an emphasis on financial education and a better understanding of individual financial behaviors, management can strengthen the financial foundation of the firm, increase employee productivity, and improve overall human resource performance, forming a crucial step towards sustainable financial well-being for the organization.

Keywords

Financial Education Availability of Human Resources for Financial Education Financial Knowledge Adoption of Financial Behavior HR Performance Employee Financial Productivity Corporate Financial Welbeing

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Rostini, Nurmiati, N., Siti Mariam, & Yana Ameliana. (2023). Financial Literacy-based HRM: Optimizing Human Resource Performance Through Financial Education. Atestasi : Jurnal Ilmiah Akuntansi, 6(2), 671–696. https://doi.org/10.57178/atestasi.v6i2.731
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adjei, N. N., Sun, C. C., Estrada, G. M., Schneider, A. K., & Meyer, L. A. (2023). 20 An assessment of changes in measures of quality of life and financial well-being over time among ovarian cancer patients. Gynecologic Oncology Reports, 48, S11–S12. https://doi.org/https://doi.org/10.1016/S2352-5789(23)00241-2
  2. Agasisti, T., Barucci, E., Cannistrà, M., Marazzina, D., & Soncin, M. (2023). Online or on-campus? Analysing the effects of financial education on student knowledge gain. Evaluation and Program Planning, 98, 102273. https://doi.org/https://doi.org/10.1016/j.evalprogplan.2023.102273
  3. Al-Dubai, S. A. A. (2023). Do level, field, and place of board members’ Education impact financial risk disclosure? A Saudi Empirical evidence. Heliyon, 9(12), e22288. https://doi.org/https://doi.org/10.1016/j.heliyon.2023.e22288
  4. Al-Filali, I. Y., Abdulaal, R. M. S., Alawi, S. M., & Makki, A. A. (2023). Modification of strategic planning tools for planning financial sustainability in ‎higher education institutions. Journal of Engineering Research. https://doi.org/https://doi.org/10.1016/j.jer.2023.11.015
  5. Algarni, M. A., Ali, M., Albort-Morant, G., Leal-Rodríguez, A. L., Latan, H., Ali, I., & Ullah, S. (2022). Make green, live clean! Linking adaptive capability and environmental behavior with financial performance through corporate sustainability performance. Journal of Cleaner Production, 346, 131156. https://doi.org/https://doi.org/10.1016/j.jclepro.2022.131156
  6. Atalay, K., & Edwards, R. (2022). House prices, housing wealth and financial well-being. Journal of Urban Economics, 129, 103438. https://doi.org/https://doi.org/10.1016/j.jue.2022.103438
  7. Banks, G. C., & Kepes, S. (2015). The influence of internal HRM activity fit on the dynamics within the “black box.” Human Resource Management Review, 25(4), 352–367. https://doi.org/https://doi.org/10.1016/j.hrmr.2015.02.002
  8. Billari, F. C., Favero, C. A., & Saita, F. (2023). Online financial and demographic education for workers: Experimental evidence from an Italian Pension Fund. Journal of Banking & Finance, 151, 106849. https://doi.org/https://doi.org/10.1016/j.jbankfin.2023.106849
  9. Boyd, C. M., & Díez-Amigo, S. (2023). Effectiveness of free financial education provided by for-profit financial institutions: Experimental evidence from rural Peru. Economics of Education Review, 97, 102462. https://doi.org/https://doi.org/10.1016/j.econedurev.2023.102462
  10. Bril, A., Kalinina, O., Valebnikova, O., Valebnikova, N., Camastral, M., Shustov, D., & Ostrovskaya, N. (2021). Improving Personnel Management by Organizational Projects: Implications for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 105. https://doi.org/https://doi.org/10.3390/joitmc7020105
  11. Carton, F. L., Xiong, H., & McCarthy, J. B. (2022). Drivers of financial well-being in socio-economic deprived populations. Journal of Behavioral and Experimental Finance, 34, 100628. https://doi.org/https://doi.org/10.1016/j.jbef.2022.100628
  12. Chang, E., & Chin, H. (2018). Signaling or experiencing: Commitment HRM effects on recruitment and employees’ online ratings. Journal of Business Research, 84, 175–185. https://doi.org/https://doi.org/10.1016/j.jbusres.2017.11.002
  13. Chhatwani, M. (2022). Personal control and financial well-being among the elderly: Moderating role of the big five. Personality and Individual Differences, 184, 111171. https://doi.org/https://doi.org/10.1016/j.paid.2021.111171
  14. Corral de Zubielqui, G., Fryges, H., & Jones, J. (2019). Social media, open innovation & HRM: Implications for performance. Technological Forecasting and Social Change, 144, 334–347. https://doi.org/https://doi.org/10.1016/j.techfore.2017.07.014
  15. De Beckker, K., De Witte, K., & Van Campenhout, G. (2021). The effect of financial education on students’ consumer choices: Evidence from a randomized experiment. Journal of Economic Behavior & Organization, 188, 962–976. https://doi.org/https://doi.org/10.1016/j.jebo.2021.06.022
  16. Eberhardt, W., Brüggen, E., Post, T., & Hoet, C. (2021). Engagement behavior and financial well-being: The effect of message framing in online pension communication. International Journal of Research in Marketing, 38(2), 448–471. https://doi.org/https://doi.org/10.1016/j.ijresmar.2020.11.002
  17. Flamini, G., Pittino, D., & Visintin, F. (2022). Family leadership, family involvement and mutuality HRM practices in family SMEs. Journal of Family Business Strategy, 13(2), 100468. https://doi.org/https://doi.org/10.1016/j.jfbs.2021.100468
  18. Ghafoori, E., Ip, E., & Kabátek, J. (2021). The impacts of a large-scale financial education intervention on retirement saving behaviors and portfolio allocation: Evidence from pension fund data. Journal of Banking & Finance, 130, 106195. https://doi.org/https://doi.org/10.1016/j.jbankfin.2021.106195
  19. Gianakos, A. L., Semelsberger, S. D., Saeed, A. Al, Lin, C., Weiss, J., & Navarro, R. (2023). The Case for Needed Financial Literacy Curriculum During Resident Education. Journal of Surgical Education, 80(4), 597–612. https://doi.org/https://doi.org/10.1016/j.jsurg.2022.12.007
  20. Giusti, R., Filetti, M., Lombardi, P., Gentile, G., Toccaceli, P., Fumi, G., Vacca, D., Colpani, E., Ravoni, G., Daniele, G., & Porzio, G. (2023). 2087P Impact of cancer pain on quality of life and financial well-being: A cross-sectional study on symptom management. Annals of Oncology, 34, S1097. https://doi.org/https://doi.org/10.1016/j.annonc.2023.09.869
  21. Grohmann, A., Kouwenberg, R., & Menkhoff, L. (2015). Childhood roots of financial literacy. Journal of Economic Psychology, 51, 114–133. https://doi.org/https://doi.org/10.1016/j.joep.2015.09.002
  22. Harvey, M., & Urban, C. (2023). Does financial education affect retirement savings? The Journal of the Economics of Ageing, 24, 100446. https://doi.org/https://doi.org/10.1016/j.jeoa.2023.100446
  23. Jawahar, I. M., Mohammed, Z. J., & Schreurs, B. (2022). Effects of financial anxiety and employability on emotional exhaustion and performance. Journal of Vocational Behavior, 137, 103761. https://doi.org/https://doi.org/10.1016/j.jvb.2022.103761
  24. Joshanloo, M. (2022). Personality trait level and change predict future financial well-being: A longitudinal study in Australia. Personality and Individual Differences, 191, 111575. https://doi.org/https://doi.org/10.1016/j.paid.2022.111575
  25. Kaiser, T., Lusardi, A., Menkhoff, L., & Urban, C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145(2, Part A), 255–272. https://doi.org/https://doi.org/10.1016/j.jfineco.2021.09.022
  26. Kaiser, T., & Menkhoff, L. (2022). Active learning improves financial education: Experimental evidence from Uganda. Journal of Development Economics, 157, 102870. https://doi.org/https://doi.org/10.1016/j.jdeveco.2022.102870
  27. Khan, S. (2024). Female education and marriage in Pakistan: The role of financial shocks and marital customs. World Development, 173, 106413. https://doi.org/https://doi.org/10.1016/j.worlddev.2023.106413
  28. Kim, E. J., Stearns, S. A., Bustos, V. P., Dowlatshahi, A. S., Lee, B. T., & Cauley, R. (2023). Impact of financial well-being on gender affirmation surgery access and hospital course. Journal of Plastic, Reconstructive & Aesthetic Surgery, 85, 174–181. https://doi.org/https://doi.org/10.1016/j.bjps.2023.06.059
  29. Kloutsiniotis, P. V, Mihail, D. M., Mylonas, N., & Pateli, A. (2022). Transformational Leadership, HRM practices and burnout during the COVID-19 pandemic: The role of personal stress, anxiety, and workplace loneliness. International Journal of Hospitality Management, 102, 103177. https://doi.org/https://doi.org/10.1016/j.ijhm.2022.103177
  30. Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183. https://doi.org/https://doi.org/10.1016/j.bir.2022.09.012
  31. Lei, X., Shen, Y., & Yang, L. (2023). Digital financial inclusion and subjective well-being – Evidence from China health and retirement longitudinal study. China Economic Review, 81, 102013. https://doi.org/https://doi.org/10.1016/j.chieco.2023.102013
  32. Lewis, A. C., Cardy, R. L., & Huang, L. S. R. (2019). Institutional theory and HRM: A new look. Human Resource Management Review, 29(3), 316–335. https://doi.org/https://doi.org/10.1016/j.hrmr.2018.07.006
  33. Mariappanadar, S. (2020). Do HRM systems impose restrictions on employee quality of life? Evidence from a sustainable HRM perspective. Journal of Business Research, 118, 38–48. https://doi.org/https://doi.org/10.1016/j.jbusres.2020.06.039
  34. Namwong, K., Jantarakolica, T., Suwannoi, T., & Wongkantarakorn, J. (2017). A Gender Gap in Executive Cash Compensation in Thailand: A View of the Expectancy Theory. In Global Corporate Governance (Vol. 19, pp. 147–166). Emerald Publishing Limited. https://doi.org/10.1108/S1569-373220160000019006
  35. Nițoi, M., Clichici, D., Zeldea, C., Pochea, M., & Ciocîrlan, C. (2022). Financial well-being and financial literacy in Romania: A survey dataset. Data in Brief, 43, 108413. https://doi.org/https://doi.org/10.1016/j.dib.2022.108413
  36. Paiola, M., Khvatova, T., Schiavone, F., & Ferraris, A. (2023). How do omnichannel strategies contribute to value-based healthcare? An orchestra-based analysis. Journal of Business Research, 167(July), 114175. https://doi.org/10.1016/j.jbusres.2023.114175
  37. Patel, P., Sinha, P., Bhanugopan, R., Boyle, B., & Bray, M. (2018). The transfer of HRM practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE diamond model. Journal of Business Research, 93, 268–279. https://doi.org/https://doi.org/10.1016/j.jbusres.2018.02.014
  38. Putra, A. H. P. K., & Elpisah, E. (2023). Effect of Internal Control System and Reward System on Managerial Performance with Locus of Control as Moderating Variable in Banking. Golden Ratio of Data in Summary, 3(1), 1–6.
  39. Putra, A. H. P. K., Mansur, D. M., Ulfah, M., & Hajiali, I. (2023). Key factors of business sustainability: Strengthening leadership, psychology, and fairness aspects from an Islamic-management perspective. Nurture, 17(4), 694–710.
  40. Putra, A. H. P. K., & Rahmi, R. (2023). Analysis of Comparative Advantages and Shifts Share in Economic Sectors: Empirical Study in Wajo Regency, Indonesia. Golden Ratio of Data in Summary, 3(1), 45–58.
  41. Putra, A. H. P. K., Rahmi, R., & Laisila, M. (2023). Unlocking the Symphony of Innovation: Weaving Knowledge Management into Organizational Performance. Golden Ratio of Mapping Idea and Literature Format, 3(2), 76–103.
  42. Rahmawati, A., Wahyuningsih, S. H., & Garad, A. (2023). The effect of financial literacy, training and locus of control on creative economic business performance. Social Sciences & Humanities Open, 8(1), 100721. https://doi.org/https://doi.org/10.1016/j.ssaho.2023.100721
  43. Rattini, V. (2023). The effects of financial aid on graduation and labor market outcomes: New evidence from matched education-labor data. Economics of Education Review, 96, 102444. https://doi.org/https://doi.org/10.1016/j.econedurev.2023.102444
  44. Ridder, H.-G., Baluch, A. M., & Piening, E. P. (2012). The whole is more than the sum of its parts? How HRM is configured in nonprofit organizations and why it matters. Human Resource Management Review, 22(1), 1–14. https://doi.org/https://doi.org/10.1016/j.hrmr.2011.11.001
  45. Rodriguez-Raga, S., & Martinez-Camelo, N. (2022). Game, guide or website for financial education improvement: Evidence from an experiment in Colombian schools. Journal of Behavioral and Experimental Finance, 33, 100606. https://doi.org/https://doi.org/10.1016/j.jbef.2021.100606
  46. Sapiri, M., & Putra, A. H. P. K. (2023). Causality of Bank Financial Performance, Green Bond, CSR, Green Financing Portfolio and CO2 Emissions in Transportation: Evidence from Indonesia. International Journal of Energy Economics and Policy, 13(6), 511–522.
  47. Schoofs, A. (2022). Promoting financial inclusion for savings groups: A financial education programme in rural Rwanda. Journal of Behavioral and Experimental Finance, 34, 100662. https://doi.org/https://doi.org/10.1016/j.jbef.2022.100662
  48. Sconti, A. (2022). Digital vs. in-person financial education: What works best for Generation Z? Journal of Economic Behavior & Organization, 194, 300–318. https://doi.org/https://doi.org/10.1016/j.jebo.2021.12.001
  49. Shao, J., Wu, D., & Jin, C. (2023). How do financial inclusion and education increase resource efficiency? Resources Policy, 85, 104005. https://doi.org/https://doi.org/10.1016/j.resourpol.2023.104005
  50. Sun, C., Khan, A., & Ren, Y. (2023). Empowering Progress: Education, innovations and financial development in the battle against energy poverty. Journal of Cleaner Production, 425, 138941. https://doi.org/https://doi.org/10.1016/j.jclepro.2023.138941
  51. Thaduri, A., Majumdar, K., Panuganti, A., Usmani, S., Dungala, D., Kailey, V., & Malhotra, M. (2023). 363P Effect of financial distress and mental well-being of patients with early vs advanced oral cancer on informal caregiver’s quality of life: A prospective real-world data from public health sector hospital. Annals of Oncology, 34, S1611. https://doi.org/https://doi.org/10.1016/j.annonc.2023.10.471
  52. Urban, C. (2023). Does state-mandated financial education reduce high school graduation rates? Economics of Education Review, 95, 102427. https://doi.org/https://doi.org/10.1016/j.econedurev.2023.102427
  53. Wahyuni, S., Liza, L. O., Syahdan, Rusandi, M. A., & Situmorang, D. D. B. (2023). ‘Treasure hunt’: Using loose parts media to develop social financial education model for early children. Heliyon, 9(6), e17188. https://doi.org/https://doi.org/10.1016/j.heliyon.2023.e17188
  54. Wu, Y., & Huang, S. (2022). The effects of digital finance and financial constraint on financial performance: Firm-level evidence from China’s new energy enterprises. Energy Economics, 112, 106158. https://doi.org/https://doi.org/10.1016/j.eneco.2022.106158
  55. Zhang, Y., Lu, X., & Xiao, J. J. (2023). Does financial education help to improve the return on stock investment? Evidence from China. Pacific-Basin Finance Journal, 78, 101940. https://doi.org/https://doi.org/10.1016/j.pacfin.2023.101940
  56. Zhou, Y., Yang, M., & Gan, X. (2023). Education and financial literacy: Evidence from compulsory schooling law in China. The Quarterly Review of Economics and Finance, 89, 335–346. https://doi.org/https://doi.org/10.1016/j.qref.2022.09.006