Predictors of Financial Well-Being among Malaysian Employees: Examining the Mediate Effect of Financial Stress

Mohamad Fazli Sabri; Leila Falahati

doi:10.24191/jeeir.v1i3.135

Authors

Mohamad Fazli Sabri Department of Resource Management & Consumer Studies, Faculty of Human Ecology, University Putra Malaysia
Leila Falahati Department of Women Studies, Institute for Social and Cultural Studies, Ministry of Science, Research and Technology, Tehran, Iran

DOI:

https://doi.org/10.24191/jeeir.v1i3.135

Keywords:

Financial literacy, financial behavior, financial capability, financial problem, financial stress, financial well-being

Abstract

Financial well-being and its impact on the quality of life among employees have received considerable attention from researchers, consumer and financial educators, practitioners and policy makers. The purpose of this study is to examine the determinant factors of employees’ financial well-being in Malaysia. The results of this study can be used for better understanding of the relationship between and among determinants of financial well-being by highlighting the relationships among financial literacy, financial behavior, financial capability, financial problem, and financial stress. Samples were selected using multi-stage sampling technique among employees in public and private sectors. A total of 2,000 completed questionnaires were analyzed using path analysis to identify direct and indirect effects on financial well-being. The results identified that financial well-being determinants were financial literacy, financial behavior, financial capability, financial problem; and financial stress had either a direct and indirect effect on financial well-being. The findings indicated that financial stress partially mediate the effect of factors on predicting financial well-being.

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