Can Risk Tolerance Moderate Financial Literacy and Internet Banking Behavior During Covid-19?

Fida Muthia, Nyimas Dewi Murnila Saputri, Sri Andaiyani, Agil Novriansa

Abstract


This study aims to examine whether risk tolerance can moderate the relationship between financial literacy on Internet banking behavior during Covid-19. 133 respondents are chosen as the sample of this study through purposive sampling with criteria. The hypothesis testing of this research was carried out using two models, namely, the direct relationship model and the moderation model. The results show that financial literacy has a positive effect on Internet banking. However, risk tolerance is unable to be a moderating variable. The results give the implication that Internet banking users can be increased by improving financial literacy, and financial risk may not be a significant driver in the use of internet banking during Covid-19.


Full Text:

PDF

References


Al-qudah, A. A. (2021). Stock markets’ reaction to COVID-19 : evidence from the six WHO regions. Journal of Economic Studies. http://doi.org/10.1108/JES-09-2020-0477

Andreou, P. C., & Anyfantaki, S. (2020a). Financial literacy and its in fl uence on internet banking behavior *. European Management Journal, 2019(xxxx). http://doi.org/10.1016/j.emj.2020.12.001

Andreou, P. C., & Anyfantaki, S. (2020b). Financial literacy and its in fl uence on internet banking behavior *. European Management Journal. Retrieved from https://doi.org/10.1016/j.emj.2020.12.001

Anh, D. L. T., & Gan, C. (2020). The impact of the COVID-19 lockdown on stock market performance : evidence from Vietnam. Journal of Economic Studies. http://doi.org/10.1108/JES-06-2020-0312

Aulia, N., Yuliati, L. N., & Muflikhati, I. (2019). Kesejahteraan Keuangan Keluarga Usia Pensiun: Literasi Keuangan, Perencanaan Keuangan Hari Tua, dan Kepemilikan Aset. Jur. Ilm. Kel & Kons., 12(1), 38–51.

Aziz, A., & Naima, U. (2021). Technology in Society Rethinking digital financial inclusion : Evidence from Bangladesh. Technology in Society, 64(August 2020).

Bannier, C. E., & Neubert, M. (2016). Gender differences in financial risk taking : The role of financial literacy and risk tolerance ✩. Economics Letters, 145, 130–135. http://doi.org/10.1016/j.econlet.2016.05.033

Beraha, I., & Đuričin, S. (2020). The Impact of COVID-19 Crisis on Medium-sized Enterprises in Serbia. Economic Analysis, 53(1), 14–27. http://doi.org/10.28934/ea.20.53.1.pp14-27

Dimmock, S. G., Kouwenberg, R., Mitchell, O. S., & Peijnenburg, K. (2016). Ambiguity aversion and household portfolio choice puzzles : Empirical evidence R. Journal of Financial Economics, 119(3), 559–577. http://doi.org/10.1016/j.jfineco.2016.01.003

Fernandes, C., Borges, M. R., & Caiado, J. (2021). The contribution of digital financial services to financial inclusion in Mozambique : an ARDL model approach. Applied Economics, 53(3), 400–409. http://doi.org/10.1080/00036846.2020.1808177

Fong, J. H., Koh, B. S. K., Mitchell, O. S., & Rohwedder, S. (2021). Financial literacy and financial decision-making at older ages. Pacific-Basin Finance Journal, 65(October 2020), 101481. http://doi.org/10.1016/j.pacfin.2020.101481

Ghozali, I. (2020). 25 Grand Theory. Semarang: Yoga Pratama.

Grable, J., & Lytton, R. H. (1999). Financial risk tolerance revisited : the development of a risk assessment instrument ૾. Financial Services Review, 8, 163–181.

Hair, J. F., Hult, G. T. M., Ringle, C., Sarstedt, M., Danks, N., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer.

Hermansson, C., & Jonsson, S. (2021). The Impact of Financial Literacy and Financial Interest on Risk Tolerance. Journal of Behavioral and Experimental Finance, 29.

Insaidoo, M., Arthur, L., Amoako, S., & Andoh, F. K. (2021). Stock market performance and COVID-19 pandemic : evidence from a developing economy. Journal of Chinese Economic and Foreign Trade Studies, 14(1), 60–73. http://doi.org/10.1108/JCEFTS-08-2020-0055

Koh, F., Phoon, K. F., & Ha, C. D. (2018). Digital Financial Inclusion in South East Asia. Handbook of Blockchain, Digital Finance, and Inclusion, Volume 2 (1st ed., Vol. 2). Elsevier Inc. http://doi.org/10.1016/B978-0-12-812282-2.00015-2

Königsheim, C., Lukas, M., & Nöth, M. (2017). Financial Knowledge, Risk Preference, and the Demand for Digital Financial Services. Schmalenbach Bussiners Review, 18, 343–375. http://doi.org/10.1007/s41464-017-0040-0

Lu, L., Peng, J., Wu, J., & Lu, Y. (2021). International Journal of Disaster Risk Reduction Perceived impact of the Covid-19 crisis on SMEs in different industry sectors : Evidence from Sichuan , China. International Journal of Disaster Risk Reduction, 55(24). http://doi.org/10.1016/j.ijdrr.2021.102085

Manyati, T. K., & Mutsau, M. (2020). Leveraging green skills in response to the COVID-19 crisis : a case study of small and medium enterprises in. Journal of Entrepreneurship in Emerging Economies. http://doi.org/10.1108/JEEE-07-2020-0236

Naeem, M., & Ozuem, W. (2021). The role of social media in internet banking transition during COVID-19 pandemic : Using multiple methods and sources in qualitative research. Journal of Retailing and Consumer Services, 60(February).

OJK. (2017). Strategi Nasional Literasi Keuangan Indonesia (Revisit 2017). Retrieved from https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Strategi-Nasional-Literasi-Keuangan-Indonesia-(Revisit-2017)-/SNLKI (Revisit 2017)-new.pdf

Okello, G., Bongomin, C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2018). Nexus between financial literacy and financial inclusion from a developing country perspective. International Journal of Bank Marketing, 36(7), 1190–1212. http://doi.org/10.1108/IJBM-08-2017-0175

Omar, C., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs ’ businesses and survival strategies. Geografia Malaysian Journal of Society and Space, 2(2), 139–150.

Omar, S., & Morales, C. (2021). Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic. Research in International Business and Finance, 57(January), 101396. http://doi.org/10.1016/j.ribaf.2021.101396

Panos, G. A., & Wilson, J. O. S. (2020). Financial literacy and responsible finance in the FinTech era : capabilities and challenges. The European Journal of Finance, 26(4–5), 297–301. http://doi.org/10.1080/1351847X.2020.1717569

Ratnasingam, J., Khoo, A., Jegathesan, N., Wei, L. C., Latib, H. A., Thanasegaran, G., … Othman, K. (2020). How are Small and Medium Enterprises in M alaysia ’ s Early Evidences from a Survey and Recommendations, 15(3), 5951–5964.

Rieger, M. O. (2020). How to Measure Financial Literacy? Journal of Risk and Financial Management, 13(12), 324. http://doi.org/10.3390/jrfm13120324

Sahay, R., Allmen, U. E. Von, Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., & Beaton, K. (2020). The Promise of Fintech : Financial Inclusion in the Post COVID-19 Era.

Sharma, R., Singh, G., & Sharma, S. (2020). Management Modelling internet banking adoption in Fiji : A developing country perspective. International Journal of Information Management, 53, 102116. http://doi.org/10.1016/j.ijinfomgt.2020.102116

Wahyono, W., & Hutahayan, B. (2021). The relationships between market orientation , learning orientation , financial literacy, on the knowledge competence, innovation , and performance of small and medium textile industries in Java and Bali. Asia Pacific Management Review, 26(1), 39–46. http://doi.org/10.1016/j.apmrv.2020.07.001

Yuliana, P. D., & Aprianingsih, A. (2022). Factors involved in adopting mobile banking for Sharia Banking Sector using UTAUT 2. Jurnal Keuangan Dan Perbankan, 26(1), 184–207. http://doi.org/10.26905/jkdp.v26i1.6858




DOI: https://doi.org/10.26905/jkdp.v26i2.6814

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: -
Email: [email protected]

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0