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Journal of Asian Business and Economic Studies |
Vol. 27(3)
, October 2020, Page 285-302
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An exploratory study of financial well-being among Malaysian households |
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Nurul Shahnaz Mahdzan & Rozaimah Zainudin & Mohd Edil Abd Sukor & Fauzi Zainir & Wan Marhaini Wan Ahmad |
DOI: 10.1108/JABES-12-2019-0120
Abstract
Purpose - The purpose of this paper is to empirically explore the financial well-being (FWB) of Malaysian households and to construct a subjective FWB index with present and future time perspectives.
Design/methodology/approach - Data were collected from 1,867 respondents across five major regions in Malaysia. Adapting the InCharge Financial Distress/Financial Well-being (IFDFW) Scale by Prawitz et al. (2006) and the method of computing an index by Devlin (2009), this study develops an FWB index using subjective measures that include future time perspectives (retirement). The index was employed to measure the FWB across low-, middle- and high-income groups and socio-demographic characteristics.
Findings - This study finds evidence that Malaysians' FWB is at an average level (46.8). Middle-income households' FWB (46.1) flanks between the financial well-being index (FWBI) levels of the low-income (37.4) and high-income households (58.7). Across age groups, education levels and employment sectors, the FWB of Malaysians significantly varies, although not across different ethnics, religions, zones and residential areas. Overall, the results suggest that the detrimental effects of FWB are perceived by all Malaysian households nationwide regardless of their religion, ethnicity and residential areas.
Practical implications - The results of this study complement the other well-being indices used by policymakers and may serve as a useful input for government and policymakers for them to formulate appropriate strategies to promote higher FWB of Malaysian households based on their socio-demographic characteristics.
Originality/value - This study used primary data and developed a subjective FWB index that leverages on people's perceptions of their own financial well-being while including present and future time perspectives. The main contribution of this paper is to construct an index that is easily interpretable and that complements the existing FWB indices, and to identify the segments of society that have low vis-à-vis high FWB.
Keywords
Malaysia, Household income, Index, Households, Financial well-being, Subjective measurement
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Applying quantile regression to determine the effects of household characteristics on household saving rates in Vietnam
2020, Journal of Asian Business and Economic Studies
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Abstract
"Purpose – The purpose of this paper is to analyse the determinants of the saving behaviour of Vietnamese households and to explore the possible heterogeneity of household saving propensities.
Design/methodology/approach – The authors estimate the effects of household characteristics on Vietnamese household saving rates by means of a quantile regression approach using the Vietnam Household Living Standard Survey 2010 data set.
Findings – The results suggest that the way household characteristics influence saving rates is different for each quantile of the household saving rate distribution. Household characteristics tend to have stronger effects at lower quantiles. Particularly, the marginal propensity to save of households at low quantiles is higher than those at high quantiles. Analysing rural and urban households separately, the authors find evidence that household and household head characteristics have stronger significant effects for rural than for urban households. Children and elderly members should be treated as part of the household labour force, instead of household dependency, since both of them increase household saving rates.
Originality/value – This research contributes to the literature on Vietnamese household saving behaviours, especially for households living in urban areas."
Household investment behavior toward urban flooding adaptation in Ho Chi Minh City
2019, Journal of Asian Business and Economic Studies
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Abstract
An investigation about the adaptive capacity of residents in Ho Chi Minh City when facing the flooding problems which have frequently happened in recent years. Although the government has spent a lot of money in the drainage system, and the situation has been reported to be better, a high proportion of surveyed people said that the improvement is just local; however, the whole city still needs more effort to control flooding. Households living closely to frequently flood-prone usually consider two main measures to protect themselves from the flood: Floor elevation or dry-proof investment. Since housing is a big money while their income is still low, moving to another place seems to be inapplicable. Doing almost nothing and leaning on the public projects are still the main strategy.
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