MEASURING FINANCIAL WELLNESS OF THE MALAYSIAN EMPLOYEES
DOI:
https://doi.org/10.33736/uraf.2863.2020Abstract
The purpose of this paper is to assess the determinants of financial wellness among employees in Sarawak. Samples are selected using multi-stage sampling technique among employees work at Kuching City and regression analysis is applied to examine the impacts of financial literacy, financial stress, and financial behavior towards the financial wellness among employees. A total of 300 questionnaires was distributed to the public and private sector employees with a response rate at 71 per cent. Generally, the results suggest that all determinants significantly affect the financial wellness of the workers. Additionally, education level is found important to the financial wellness among employees in Kuching, Sarawak.
References
Addin, M. M., Nayebzadeh, S., & Taft, M. K. (2013). The study of university professors' financial well-being and financial worry. Interdisciplinary Journal of Contemporary Research in Business, 5(1), 193-204.
Archuleta, K. L., Dale, A., & Spann, S. M. (2013). College students and financial distress: Exploring debt, financial satisfaction, and financial anxiety. Journal of Financial Counseling and Planning, 24(2), 50-62.
Ashley, C. (2013). Descriptive vs. inferential statistic. Retrieved from http:// sociology.about.com/od/Statistics/a/Descriptive-inferential-statistics.htm
Atkinson, A., McKay, S., Kempson E., & Collard, S. (2006). Levels of financial capability in the UK: Results of a baseline survey. London, UK: Financial Services Authority.
Attridge, M. (2009). Employee personal financial distress and how employers can help. Research Work, 1(1), 1-10.
Bank of International Settlements. (2009). Household debt in Malaysia. Retrieved from http://www.bis.org/publ/bppdf/bispap461.pdf
Bank Negara Malaysia. (2013). The Financial Stability and Payment Systems Report 2013. Retrieved from http://www.bnm.gov.my/index.php?ch=enpublication synopsis&pg=en_publication_fsps&ac=109&yr=2013&lang=en&eld=box2
Bernheim, B. D., & Garrett, D. M. (2003). The effects of financial education in the workplace: evidence from a survey of households. Journal of Public Economics, 87(7), 1487-1519.
https://doi.org/10.1016/S0047-2727(01)00184-0
Berryman, A. A. (1997). The concept of population. Retrieved from http://classes. entom.wsu.edu/529/ Population.htm
Burns, R. B., & Burns, R. A. (2008). Business Research Methods and Statistics using SPSS. Retrieved from http://books.google.com.my/books?id=ef2azKJV9sC & printsec=frontcover&dq=isbn:1412945291&hl=en&sa=X&ei =NH5-VIipMoG dugSU84KgCQ&ved=0CB0Q6AEwAA#v=onepage&q&f=false
Brennan, P. Q. (1998). Personal finance education: What employees need and want to know. Personal Finance and Worker Productivity, 2(1), 68-74.
Brohier, M. (2014, July 9). What you shouldn't do with your credit card. Free Malaysia Today. Retrieved from www.freemalaysiatoday.com/category /money/2014 /07/ 09/what-you-shouldnt-do-with-your-credit-card/
Cascio, W., & Boudreau, J. (2010). Investing in People: Financial Impact of Human Resource Initiatives. Retrieved from http://books.google.com.my/ books?id =Xy9962AulHQC&pg=PA52&dq=definition+of+absenteeism &hl= zh-CN&sa=X&ei=4yocVO3LO5bnuQSnm4LQCA&ved=0CCwQ 6AwAw
Cook, C. K. (2008). The Perceived Effectiveness of a Mentoring Program: Dr. Betty Shabaaz Delta Academy. Retrieved from http://books.google.com. my/books?isbn=0549720294
Connaway, L. S., & Powell, R. R. (2010). Basic Research Methods for Librarians, Fifth Edition. America, US: Greenwood Publishing Group
Crotty, P. A. (2004). Selection and Definition of Performance Indicators for Water and Wastewater Utilities. Retrieved from https://books.google.com. my/books?isbn =158321304X
Deepinder, F., Makker, K., & Agarwal, A. (2007). Cell phones and male infertility: dissecting the relationship. Reproductive biomedicine online, 15(3), 266-270.
https://doi.org/10.1016/S1472-6483(10)60338-0
Dhesi, D. (2014, June 7). Household debt -the current fear factor. The Star Online. Retrieved from http://www.thestar.com.my/Business/Business- News/2014/06/07/ Household-debt-the-current-fear-factor-Concrete-efforts-needed-to-ensure-situation-does-not-worsen/?style=biz
Delafrooz, N., & Paim, L. H. (2011). Determinants of financial wellness among Malaysia workers. African Journal of Business Management, 5(24), 10092-10100.
https://doi.org/10.5897/AJBM10.1267
Delafrooz, N., & Paim, L. H. (2011). Determinants of saving behavior and financial problem among employees in Malaysia. Australian Journal of Basic and Applied Sciences, 5(7), 222-228.
Delafrooz, N., & Paim, L. H. (2013). Role of financial stress on relationship between financial problem and financial wellness among Malaysia workers. African Journal of Business Management, 7(20), 1966-1972.
Delafrooz, N., Paim, L. H., Sabri, M. F., & Masud, J. (2010). Effects of financial wellness on the relationship between financial problem and workplace productivity. World Applied Sciences Journal, 10(8), 871-878.
Department of Statistics, Malaysia. (2010). Preliminary Court Report
Endut, N., & Hua, T. G. (2009). Household debt in Malaysia. Bank for International Settlements Communications CH 4002 Basel, Switzerland, 107.
Falahati, L., & Paim, L. (2012). Gender differences in saving behavior determinants among university students. Journal of Basic and Applied Scientific Research, 2(6), 5848-5854.
Field, A. (2013). Discovering statistics using IBM SPSS statistics. London, UK: SAGE Publication Ltd.
Finstad, K. (2010). Response interpolation and scale sensitivity: Evidence against 5-point scales. Journal of Usability Studies, 5(3), 104-110.
Folk, J.Y., Beh, L. S., & Baranovich, D. L. (2012). Financial education: Determinant of retirement planning in Malaysia. Journal of Business Management and Economics, 3(2), 067-078.
Fox, J., Bartholomae, S., & Lee, J. (2005). Building the case for financial education. The Journal of Consumer Affairs, 39(1), 195-214.
https://doi.org/10.1111/j.1745-6606.2005.00009.x
Gale, W. G., & Levine, R. (2010). Financial literacy: What works? How could it be more effective? In First Annual Conference of the Financial Literacy Research Consortium Washington, DC.
https://doi.org/10.2139/ssrn.1758910
Garman, E. T., Leech, I. E., & Grable, J. E. (1996). The negative impact of employee poor personal financial behaviors on employers. Finance Couns Plann., 7(1), 157-168.
Garman, E. T. & Forgue, R. (1997). Personal Finance 5th ed. Boston: Houghton Mifflin.
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th Ed.), Boston: Allyn & Bacon.
Gupta, N., and Jenkins, G. D. (1991). Rethinking dysfunctional employee behaviors. Human Resource Management Review,1,39-59.
https://doi.org/10.1016/1053-4822(91)90010-A
Hilgert, M.A., Hogarth, J. M., & Beverly, S.G. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 309-322.
hogarth, M. (2006). Financial Education and Economic Development. International Conference hosted by the Russian G8 Presidency in Cooperation with the OECD
Huat, S. Y., Geetha, C., & Mohidin, R. A. (2010). Financial behavior amongst undergraduate students with and without financial education: A case among University Malaysia Sabah undergrads.
Huston, S. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44, 296-316.
https://doi.org/10.1111/j.1745-6606.2010.01170.x
Idris, F. H., Krishnan, K. S. D., & Azmi, N. (2013). Relationship between financial literacy and financial distress among youths in Malaysia - An empirical study.
Malaysian Journal of Society and Space, 9(4), 106-117.
Jacob, K., Hudson, S., & Bush, M. (2000). Tools for survival: An analysis of financial literacy programs for lower-income families. Chicago: Woodstock Institute.
Jacobson, B. H., Aldana, S. G., Goetzel, R. Z., Vardell, K. D., Adams, T. B., & Pietras, R. J. (1996). The relationship between perceived stress and self-reported illness-related absenteeism. American Journal of Health Promotion, 11(1), 54-61
https://doi.org/10.4278/0890-1171-11.1.54
Joo, S. (1998). Personal financial wellness and worker job productivity. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacks-burg
Joo, S. (2008). Personal financial wellness. In J.J. Xiao (Ed.), Handbook of consumer finance research (pp. 21-33). New York, NY: Springer.
https://doi.org/10.1007/978-0-387-75734-6_2
Joo, S. H., & Garman, E. T. (1998). Personal financial wellness may be the missing factor in understanding and reducing worker absenteeism. Personal Finances and Worker Productivity, 2(2), 172-182.
Joo, S. H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25-50.
https://doi.org/10.1023/B:JEEI.0000016722.37994.9f
Justine S. Hastings, Brigitte C. Madrian, and William L. Skimmyhorn. Financial literacy, financial education and economic outcomes
Kessler, F. C. (n.d.). Understanding descriptive statistics. Retrieved from http:// nationalatlas.gov/articles/mapping/a_statistics.html#two
Kim, J. (2007). Workplace financial education program: Does it have an impact on employee's personal finances. Journal of family and Consumer Science, 99(1). 1-7.
Kim, J. H., Benoit, S., & Garman, E. T. (2004). Financial stress, pay satisfaction, and workplace performance. Compensations and Benefits Review, 69-76.
https://doi.org/10.1177/0886368703261215
Kim, J. H., Benoit, S., & Garman, E. T. (2006). Relationship between financial stress and workplace absenteeism of credit counselling clients. Journal of Family and Economic Issues, 27(3), 458-478.
https://doi.org/10.1007/s10834-006-9024-9
Kim, J., & Garman, E. T. (2003). Financial stress and absenteeism: An empirically derived research model. Financial Counseling and Planning,14(1), 31-42.
Kim, J., Sorhaindo, B., & Garman, E. T. (2006). Relationship between financial stress and workplace absenteeism of credit counseling clients.
https://doi.org/10.1007/s10834-006-9024-9
King, G., Keohane, R. O., & Verba, S. (1994). Designing Social Inquiry: Scientific Inference in Qualitative Research. New Jersey, UK: Princeton University Press
https://doi.org/10.1515/9781400821211
Kothari, C. R. (2011). Research Methodology: Methods and Techniques. Delhi, India: New Age International Limited Publishers
Kotze, M. L., & Smit, A. A. (2008). Personal financial literacy and personal debt management: the potential relationship with new venture creation. SAJESBM NS,1(1), 35-50.
https://doi.org/10.4102/sajesbm.v1i1.11
Knight, J. B., & Sabot, R. H. (1990). Education, productivity, and inequality: The east African natural. Retrieved from http://books.google.com.et/books/about/ Education_Productivity_and_Inequality.html?id=Wn7nXPXftd4C
Kuncinas, P. (2014, May 3). Mixed reaction to Malaysia's debt levels. The Borneo Post Online. Retrieved from http://www.theborneopost.com/2014/05/03/ mixed-reaction-to-Malaysia's-debt-levels/
Kuiper, S., & Clippinger, D. (2012). Contemporary Business Report. Mason, OH: Thomson South Western.
La Cava, G., & Simon, J. (2005). Household debt and financial constraints in Australia. Australian Economic Review, 38(1), 40-60.
https://doi.org/10.1111/j.1467-8462.2005.00351.x
Leech, N. L., Barrett, K. C., & Morgan, G. A. (2011). IBM SPSS for intermediate statistics, fourth edition. New York, NY:Taylor &Francis Group.
https://doi.org/10.4324/9780203821848
Li, Y. (2010). Emigrating from China to the United States: A Comparison of Different Social Experiences. Retrieved from books.google.com.my/books ?isbn= 0398078998
Ling, A. W., Bahron, A., & Boroh, R. P. (2014). A study on role stress and job satisfaction among bank employees in Kota Kinabalu, Sabah. International Journal of Research in Management & Business Studies, 1(2), 19-23.
Luck, D. J., Taylor, W. G., & Robin, (1987). Marketing Research Eaglewood: Prentice Hall.
Madrigal, L. (2012). Statistics for Anthropology. Retrieved from https://books. google. com.my/ books?isbn=0521147085
https://doi.org/10.1017/CBO9781139022699
Malaysian Economic Outlook. (2014). Retrieved from http://www.mier.org.my/ outlook/
McGuigan, F. J. (1999). Encyclopedia of stress. Needham Heights, MA: Allyn & Bacon
Marican, S., Zakaria, R. H., &Abdul Rahman, A. (2012). Financially stressed employees at workplace: A Malaysia perspective. International Journal of Research in Social Sciences, 2(2), 350-363.
Mertens, D. M. (2014). Research and Evaluation in Education and Psychology: Integrating Diversity with Quantitative, Qualitative, and Mixed Method.
America, US: SAGA Publications Inc.
Miller, G. J., & Yang, K. (Eds.). (2007). Handbook of research methods in public administration. CRC press.
Moore, D. (2003), "Survey of financial literacy in Washington State: knowledge, behavior, attitudes, and experiences", Technical Report 03-39, Washington State University, Social and Economic Sciences Research Centre, Pullman, WA.
Neelankavil, J. P. (2007). International Business Research. Retrieved from https://books.google.com.my/books?isbn=0765628856 Nicholas, L. Introduction to Psychology. Retrieved from books.google. com.my/ books ?isbn= 1919895027
Newman, I., & Benz, C. R. (1998). Qualitative-quantitative Research Methodology: Exploring the interactive continuum. America, US: Southern Illinois University.
Noordin, N., Zakaria, Z., Sawal, M. H, Ngah, K., & Hussin, Z. (2012). Bankruptcy among Young Executives in Malaysia. International Conference on Economics Marketing and Management,28, 132-136.
O'Neill, B., Sorhaindo, B., Xiao, J. J., & Garman, E. T. (2005). Financially distressed consumers: Their financial practices, financial well-being, and health. Financial Counseling and Planning,16(1), 73-87.
O'Neill, B., Prawitx, A. D., Sorhaindo, B., Kim, J, & Garman, E. T. (2006). Changes in health, negative financial events, and financial distress/financial well-being for debt management program clients. Financial Counseling and Planning, 17(2), 46-63.
https://doi.org/10.1037/t60365-000
O'Neill B, Xiao J, Bristow B, Brennan P, Kerbel C (2000). MONEY 2000: Differences in perceptions among program participants. J.Consum Educ., 18, 35-42.
Oseiifuah, E. K. (2010). Financial literacy and youth entrepreneurship in South Africa. African Journal of Economic and Management Studies,1(2), 164-182.
https://doi.org/10.1108/20400701011073473
Perry, V. G., & Morris, M. D. (2005). Who is in control? The role of self-perception, knowledge, and income in explaining consumer. Journal of Consumer Affairs,39. Retrieved from http://www.thefreelibrary.com/Who +is+in+control%3F+The+ role+of+self-perception,+knowledge,+ and+income...-a0147928356
https://doi.org/10.1111/j.1745-6606.2005.00016.x
Rath, T., & Harter, J. (2010). The economics of wellbeing. Gallup Press.
Recker, J. (2012). Scientific Research in Information: A Beginner's Guide. Retrieved from https://books.google.com.my/books?isbn=3642300480
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44, 276-295.
https://doi.org/10.1111/j.1745-6606.2010.01169.x
Rha, J. Y., Montalto, C. P., & Hanna. S. D. (2006). The effect of self-control mechanisms on household saving behavior. Financial Counseling and Planning, 17,3-16.
Robb, C. A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning,22(1), 60-70.
https://doi.org/10.4148/jft.v3i1.1453
Sabri, M. F., & Falahati, L. (2003). Predictors of financial well-being among Malaysian employees: Examining the mediate effect of financial stress. Journal of Emerging Economies and Islamic Research, 1(3), 1-16
https://doi.org/10.24191/jeeir.v7i3.6243
Sabri, M. F., & Falahati, L. (2014). Toward a framework of financial wellness determinants: Investigating the moderating effect of religion. Australian Journal of Basic and Applied Sciences, 8(9), 275-281.
Salerno, T. J., Kroop, J. A., & Hansen, C. D. (2010). The Executive Guide to Corporate Bankruptcy. Retrieved from http://books.google.com.my/books? id=r H8Km56w3DkC&pg=PA4&dq=definition+of+bankruptcy&hl=zh-CN& sa=X&ei=E6wbVIqLKp CeugSm0IGQCw&ved =0CE YQ6AEwBQ #v=one page&q=definition%20of%20bankruptcy&f=false
Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. (2009). Pathwaystolife success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30(6), 708-723.
https://doi.org/10.1016/j.appdev.2009.02.003
Singh, R., Mangat, N. S. (1996). Elemants of Survey Sampling. Retrieved from https://books.google.com.my/books?isbn=0792340450
Spann, S. M. (2014). Three Essays on Financial Wellness in the Workplace (Doctoral dissertation, Kansas State University).
Taft, M. K., Hosein, Z. Z., Mehrizi, S. M., & Roshan, A. (2013). The relation between financial literacy, financial wellbeing and financial concerns. International Journal of Business and Management, 8(11), 63-75.
https://doi.org/10.5539/ijbm.v8n11p63
Tabachnick, B. G., &Fidell,L.S.(1996). Using multivariate statistics (3rd ed.). New York: HarperCollins.
Theodos, B., Kalish, E., McKernen, S. M., & Ratcliffe, C. (2014). Do Financial knowledge, behavior, and well-being differ by gender?
Trochim, W. M. K. (2006). Descriptive statistic. Retrieved from http://www.social researchmethods.net/kb/statdesc.php
Turkington, C. (1985). Farmers strain to hold the line as crisis uproots mental health. American Psychological Association Monitor, 16(4), 26-27
https://doi.org/10.1037/e389072004-001
Van Praag, B.M.S., Frijters, P., & Ferrer-i-Carbonel, A. (2003). The anatomy of subjective well-being. Journal of Economic Behavior and Organisation, 51, 29-49.
https://doi.org/10.1016/S0167-2681(02)00140-3
Vera-Toscana, E., Ateca-Amestoy, V., & Serrano-Del-Rosal, R. (2006). Building financial satisfaction. Social Indicators Research, 77(2), 211-243.
https://doi.org/10.1007/s11205-005-2614-3
Vitt, L.A., Anderson, C., Kent, J., Lyter, D.M., Siegenthaler, J.K., & Ward, J. (2000). Finance and the rush to competence: Personal financial literacy in the U.S. The Fannie Mae Foundation.
Volpe, R. P., Chen, H., & Liu, S. (2006). An analysis of the importance of personal financial topics and the level of knowledge possessed by working adults. Financial Services Review,15, 81-98.
Worthington, A. C. (2006). Predicting financial literacy in Australia. Financial Services Review, 15(1). Retrieved from http://ro.uow.edu.au/commpapers/ 116
Williams, F. L., Haldeman, V., & Cramer, S. (1996). Financial concerns and productivity. Financial Counseling and Planning, 7, 147-156.
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92, 53-68.
https://doi.org/10.1007/s11205-008-9288-6
Xiao, J. J, Chen, C., & Sun, L. (2014). Age and financial capability: Implications for lifespan financial education. Consumer Interests Annual, 60, 1-10.
Yuen, M. K. (2014, April 9). Bankruptcy cases on the rise in Malaysia. The Star Online. Retrieved from http://www.thestar.com.my/News/Nation/ 2014/04/ 09/Bankrupt cy-on-the-rise-in-Malaysia/
Young driven to bankruptcy, 13872 cases in Sarawak. (2014, March 31). The Borneo Post. Retrieved from www.theborneopost.com/2014/03/31/young-driven-to-bankruptcy-13872-cases-in-sarawak/
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
