{"title":"Financial literacy, confidence and well-being: The mediating role of financial behavior","authors":"Muhammad Sajid , Rizwan Mushtaq , Ghulam Murtaza , Dorra Yahiaoui , Vijay Pereira","doi":"10.1016/j.jbusres.2024.114791","DOIUrl":null,"url":null,"abstract":"<div><p>This study aims to investigate the impact of financial literacy and confidence on the financial well-being of US households and to explore the mediating role of financial behaviors in this relationship. To do this, we analyzed a large dataset from the two most recent waves of the state-by-state National Financial Capability Study (NFCS), covering a representative sample of US adults (n = 43,104). Results from multiple regression and mediation analyses, adjusted for relevant controls, show that financial literacy influences financial well-being directly and indirectly (mediated) through financial behaviors. Our analyses further indicate that financial confidence has a positive impact, directly and indirectly through financial behaviors, on financial well-being. Overall, our results suggest that higher levels of financial literacy and confidence lead to more responsible financial behavior, which, in turn, influences financial well-being. The findings of this study provide a valuable addition to the literature and directions for future research.</p></div>","PeriodicalId":15123,"journal":{"name":"Journal of Business Research","volume":null,"pages":null},"PeriodicalIF":10.5000,"publicationDate":"2024-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Business Research","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0148296324002959","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study aims to investigate the impact of financial literacy and confidence on the financial well-being of US households and to explore the mediating role of financial behaviors in this relationship. To do this, we analyzed a large dataset from the two most recent waves of the state-by-state National Financial Capability Study (NFCS), covering a representative sample of US adults (n = 43,104). Results from multiple regression and mediation analyses, adjusted for relevant controls, show that financial literacy influences financial well-being directly and indirectly (mediated) through financial behaviors. Our analyses further indicate that financial confidence has a positive impact, directly and indirectly through financial behaviors, on financial well-being. Overall, our results suggest that higher levels of financial literacy and confidence lead to more responsible financial behavior, which, in turn, influences financial well-being. The findings of this study provide a valuable addition to the literature and directions for future research.
期刊介绍:
The Journal of Business Research aims to publish research that is rigorous, relevant, and potentially impactful. It examines a wide variety of business decision contexts, processes, and activities, developing insights that are meaningful for theory, practice, and/or society at large. The research is intended to generate meaningful debates in academia and practice, that are thought provoking and have the potential to make a difference to conceptual thinking and/or practice. The Journal is published for a broad range of stakeholders, including scholars, researchers, executives, and policy makers. It aids the application of its research to practical situations and theoretical findings to the reality of the business world as well as to society. The Journal is abstracted and indexed in several databases, including Social Sciences Citation Index, ANBAR, Current Contents, Management Contents, Management Literature in Brief, PsycINFO, Information Service, RePEc, Academic Journal Guide, ABI/Inform, INSPEC, etc.