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
AuthorsPrakash, 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.

JournalBusiness Perspectives and Research
Journal citation12 (1), pp. 11-25
ISSN2278-5337
Year2023
PublisherSAGE Publications for K.J. Somaiya Institute of Management
Accepted author manuscript
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File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1177/22785337221148253
Publication dates
Online23 Apr 2023
PrintJan 2024
Publication process dates
Deposited28 Feb 2024
Copyright holder© 2023, The Authors
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This article version is the author's accepted manuscript, for the final published version, please visit:
https://doi.org/10.1177/22785337221148253

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License: CC BY-NC-ND 4.0
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