Investigating the Determinants of Financial Well-Being: A SEM Approach
Article
Prakash, N. and Hawaldar, A. 2023. Investigating the Determinants of Financial Well-Being: A SEM Approach. Business Perspectives and Research. 12 (1), pp. 11-25. https://doi.org/10.1177/22785337221148253
| Authors | Prakash, N. and Hawaldar, A. |
|---|---|
| Abstract | Studies reveal that the financial well-being of employees has a direct bearing on their productivity and overall well-being. The wellness initiatives organized by the information technology (IT) companies operating in India have also started focusing on the contributing aspects of financial well-being. In this context, the article explores the determinants of financial well-being of IT professionals in India. The article utilizes confirmatory factor analysis (CFA) for the analysis. The study employs a survey questionnaire covering financial literacy, financial behavior, and financial fragility. It also attempts to recognize the influence of gender and job roles (technical or managerial) in ascertaining financial well-being. The sample data used in the study include 237 professionals employed in the IT sector. The study uses partial least squared structured equation modelling (PLS-SEM) to understand the connection between the determining factors. The results indicate that financial well-being is positively influenced by financial literacy and financial behavior while financial fragility has a substantial negative impact. The financial literacy and financial fragility are significantly different between technical and managerial roles. Gender appears to have a sizeable impact on the financial behavior and financial fragility levels—women employees performed better in both the factors. Interestingly, financial literacy levels of the two genders are not significantly different. The results show that there is a need to focus on literacy, behavior, and fragility in financial wellness programs organized by the IT industry. Further, the study recommends offering tailored financial wellness training modules created based on the job levels and gender instead of following “one program, fits all” standardized approach. |
| Journal | Business Perspectives and Research |
| Journal citation | 12 (1), pp. 11-25 |
| ISSN | 2278-5337 |
| Year | 2023 |
| Publisher | SAGE Publications for K.J. Somaiya Institute of Management |
| Accepted author manuscript | License File Access Level Anyone |
| Digital Object Identifier (DOI) | https://doi.org/10.1177/22785337221148253 |
| Publication dates | |
| Online | 23 Apr 2023 |
| Jan 2024 | |
| Publication process dates | |
| Deposited | 28 Feb 2024 |
| Copyright holder | © 2023, The Authors |
| Copyright information | Users who receive access to an article through a repository are reminded that the article is protected by copyright and reuse is restricted to non-commercial and no derivative uses. Users may also download and save a local copy of an article accessed in an institutional repository for the user's personal reference. For permission to reuse an article, please follow Sage's Process for Requesting Permission: https://uk.sagepub.com/en-gb/eur/process-for-requesting-permission |
| Additional information | This article version is the author's accepted manuscript, for the final published version, please visit: |
https://repository.uel.ac.uk/item/8x5v0
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Accepted author manuscript
| Financial Literacy_Revised Manuscript_30052022.pdf | ||
| License: CC BY-NC-ND 4.0 | ||
| File access level: Anyone | ||
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