Demographic characteristics influencing financial wellbeing: a multigroup analysis

Article


Prakash, N., Alagarsamy, S. and Hawaldar, A. 2022. Demographic characteristics influencing financial wellbeing: a multigroup analysis. Managerial Finance. 48 (9-10), pp. 1334-1351. https://doi.org/10.1108/MF-09-2021-0466
AuthorsPrakash, N., Alagarsamy, S. and Hawaldar, A.
Abstract

Purpose
The study attempts to understand the factors impacting the financial wellbeing of IT employees in India using confirmatory factor analysis (CFA). It utilizes well-established survey instruments to assess the impact of financial literacy, financial behaviour and financial stress on financial wellbeing. The study also attempts to understand the role of demographic factors (age, gender, monthly income, job category and work experience) in determining financial wellbeing through multigroup analysis.

Design/methodology/approach
Structured equation modelling (SEM) is used to study the link between the determinants. The study also attempts to understand the role of demographic factors (age, gender, monthly income, job category and work experience) in determining financial wellbeing through multigroup analysis. Data used for the analysis covers 237 employees working in the IT sector.

Findings
While financial literacy and financial behaviour have a significant positive impact on financial wellbeing, financial stress has a significant negative impact. Financial behaviour and financial stress were found to have a mediating role in the relationship between financial literacy and financial wellbeing. The demographic variables significantly moderate the relationship between the factors leading to financial wellbeing.

Originality/value
The results show the need for financial wellbeing programs to focus on enhancing financial knowledge and improving financial planning. Further, it suggests offering customized financial wellbeing programs based on the employee's demographic characteristics rather than following a “one program, fits all” approach.

KeywordsFinancial Literacy; Financial Behaviour; Financial Stress; Financial Wellbeing; IT Employees
JournalManagerial Finance
Journal citation48 (9-10), pp. 1334-1351
ISSN0307-4358
Year2022
PublisherEmerald Publishing
Accepted author manuscript
License
File Access Level
Anyone
Supplemental file
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1108/MF-09-2021-0466
Publication dates
Print10 Jan 2022
Publication process dates
Deposited29 Feb 2024
Copyright holder© 2022, The Authors
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File access level: Anyone

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