Determinants of Islamic financial literacy towards retirement planning

This study attempts to investigate the determinants of Islamic financial literacy towards retirement planning. The survey involved 230 Muslim respondents among the University Utara Malaysia, College of Business (UUM COB) staffs. All the data were analyzed through Statistical Package for Social Scie...

Full description

Saved in:

Bibliographic Details
Main Author:	Abdillahi, Abdifatah Mohamoud
Format:	Thesis
Language:	eng eng
Published:	2015
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/5553/1/s816861_01.pdf https://etd.uum.edu.my/5553/2/s816861_02.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.5553
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mahfudz, Akhmad Affandi
topic	HG Finance
spellingShingle	HG Finance Abdillahi, Abdifatah Mohamoud Determinants of Islamic financial literacy towards retirement planning
description	This study attempts to investigate the determinants of Islamic financial literacy towards retirement planning. The survey involved 230 Muslim respondents among the University Utara Malaysia, College of Business (UUM COB) staffs. All the data were analyzed through Statistical Package for Social Science (SPSS) by conducting statistical method namely, Independent Samples T-Test, Analysis of Variance (ANOVA), Pearson Correlation and Multiple Linear Regression analysis to archive the objectives of this research. The result of this study shows that the level of retirement planning of the respondents is high. The findings also revealed that there are four determinants that significantly influence towards retirement planning. Among them are goal clarity, knowledge of financial planning for retirement planning, income and gender, the result on gender shows that the male respondents have higher retirement planning compare to females.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Abdillahi, Abdifatah Mohamoud
author_facet	Abdillahi, Abdifatah Mohamoud
author_sort	Abdillahi, Abdifatah Mohamoud
title	Determinants of Islamic financial literacy towards retirement planning
title_short	Determinants of Islamic financial literacy towards retirement planning
title_full	Determinants of Islamic financial literacy towards retirement planning
title_fullStr	Determinants of Islamic financial literacy towards retirement planning
title_full_unstemmed	Determinants of Islamic financial literacy towards retirement planning
title_sort	determinants of islamic financial literacy towards retirement planning
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2015
url	https://etd.uum.edu.my/5553/1/s816861_01.pdf https://etd.uum.edu.my/5553/2/s816861_02.pdf
_version_	1747827948490063872
spelling	my-uum-etd.55532021-03-18T00:15:13Z Determinants of Islamic financial literacy towards retirement planning 2015 Abdillahi, Abdifatah Mohamoud Mahfudz, Akhmad Affandi School of Economics, Finance & Banking Othman Yeop Abdullah Graduate School of Business HG Finance This study attempts to investigate the determinants of Islamic financial literacy towards retirement planning. The survey involved 230 Muslim respondents among the University Utara Malaysia, College of Business (UUM COB) staffs. All the data were analyzed through Statistical Package for Social Science (SPSS) by conducting statistical method namely, Independent Samples T-Test, Analysis of Variance (ANOVA), Pearson Correlation and Multiple Linear Regression analysis to archive the objectives of this research. The result of this study shows that the level of retirement planning of the respondents is high. The findings also revealed that there are four determinants that significantly influence towards retirement planning. Among them are goal clarity, knowledge of financial planning for retirement planning, income and gender, the result on gender shows that the male respondents have higher retirement planning compare to females. 2015 Thesis https://etd.uum.edu.my/5553/ https://etd.uum.edu.my/5553/1/s816861_01.pdf text eng public https://etd.uum.edu.my/5553/2/s816861_02.pdf text eng public masters masters Universiti Utara Malaysia Arrondel, L., Debbich, M., & Savignac, F. (2013). Financial literacy and financial planning in France. Al-Tamimi and Kali (2009). Examining the level of financial literacy among Saudi Investors and its impact on Financial Decisions. International Journal of Accounting and Financial Reporting, 4(2), Pages-312. Austin, J. T., & Vancouver, J. B. (1996). Goal constructs in psychology: Structure, process, and content. Psychological Bulletin, 120, 338-375. Ayub, M. (2007). Understanding Islamic Finance (Vol. 462). John Wiley & Sons. Bailey, W., Kumar, A., & Ng, D. (2011). Behavioral biases of mutual fund investors. Journal of Financial Economics, 102(1), 1-27. Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. Quarterly journal of Economics, 261-292. Beach, L. R. (1993). Image theory: Personal and organizational decisions. In G. A. Klein, J. Orasanu, R. Calderwood, & C. E. Zsambok (Eds.), Decision making in action: Models and methods (pp. 148-157). Norwood, NJ: Ablex. Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving:: The long-term effects of high school financial curriculum mandates. Journal of Public Economics, 80(3), 435-465. Bernstein, W. J., & Ryan, C. (2003). The four pillars of investing. McGraw Hill Audio. Bhatti, W. A., Hee, H. C., & Sundram, V. P. K. 2012) A Guide for Beginners: Data Analysis Using Spss and Amos, Kuala Lumpur: Pearson Malaysia Sdn. Bhd. Bhushan, P., & Medury, Y. (2014). An empirical analysis of inter linkages between financial attitudes, financial behaviour and financial knowledge of salaried individuals. Indian Journal of Commerce and Management Studies, 5(3), 58. Bryce & Savla Jyoti (2010). Financial literacy of young adults: The importance of parental socialization. Family Relations, 59(4), 465-478. Bucher-Koenen, T., & Lusardi, A. (2011). Financial literacy and retirement planning in Germany. Journal of Pension Economics and Finance, 10(04), 565-584. Cantor, N., & Kihlstrom, J. F. (1987). Personality and social intelligence. Englewood Cliffs, NJ: Prentice-Hall. Cantor, N., & Zirkel, S. (1990). Personality, cognition, and purposeful behavior. In L. A. Pervin (Ed.), Handbook of personality: Theory and research (pp. 135-164). New York: Guilford Press. Cavana, R. Y., & Delahaye, B. l., and Sekaran. U. 2001. Applied business research: qualitative and quantitative methods. Chan, B. Y. F., Paim, L., Masud, J., Hamid, T. A. 2010. The future of the Malaysian older employees: An exploratory study. International Journal of Business and Management.5(4):125-132. Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial services review, 7(2), 107-128. Chinen, K., & Endo, H. (2012). Effects of attitude and background on personal financial ability: A student survey in the United States. International Journal of Management, 29(1), 33. Chong-En, B., Zhenjie, Q., & Kangping, W. (2008). Determinants of Factor Shares in China's Industrial Sector [J]. Economic Research Journal, 8, 003. Chong, B.S., & Liu, M.H. (2007). Islamic Banking: Interest-Free or Interest-Based? Retrieved February 24, 2014, from http://ideas.repec.org/a/eee/pacfin/v17y 2009i1 p125-144.html. Chua, S.S. & Sabki, N.H. (2011). Use of non-prescription medications by the general public in the Klang Valley. J; 01(09): 93-98. Chuah, J. (2014). How I started as a Financial Planner. 14, 9. Retrieved from http://www.fpam.org.my/fpam/wp-content/uploads/ 4EJ/4E%20Journal%201H14.pdf Coakes, S. J. (2011). SPSS: Analysis without anguish: Version 18.0 for windows. 42 McDougall Street, Milton, Qld 4064: John Wiley & Sons Australia, Ltd. Coakes, S. J., and Steed, L. (2007). SPSS Version 14.0 for Windows: Analysis without Anguish. Australia: John Wiley & Sons Australia, Ltd. Department of Statistic Malaysia. 2011. Demographic Indicators. 2010. Dusuki, W.A. & Abdullah, N.I. (2011). Fundamentals of Islamic Banking. Kuala Lumpur: Islamic Banking and Finance Institute Malaysia (IBFIM). Ekerdt, D. J., Hackney, J., Kosloski, K., & DeViney, S. (2001). Eddies in the stream: The prevalence of uncertain plans for retirement. Journal of Gerontology, 56B, S162-S170. Euwals, R., Eymann, A., & Börsch-Supan, A. (2004). Who determines household savings for old age? Evidence from Dutch panel data. Journal of Economic Psychology, 25(2), 195-211. Financial Planning Association of Malaysia & Islamic Banking and Finance Malaysia. 2009. Islamic Financial Planning: A Brief Introduction. Kuala Lumpur: Financial Planning Association of Malaysia (FPAM). Fingerman, K. L., Pitzer, L. M., Chan, W., Birditt, K., Franks, M. M., & Zarit, S. (2010). Who gets what and why? Help middle-aged adults provide to parents and grown children. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, gbq009. Ghafar b. Ismail, A., & Tohirin, A. (2010). Islamic law and finance.Humanomics, 26(3), 178- 199. Glass, J. C., & Kilpatrick, B. B. (1998b). Gender comparisons of baby boomers and financial preparation for retirement. Educational Gerontology, 24, 719-745. Gollwitzer, P. M. (1993). Goal achievement: The role of intentions. In M. Hewstone & W. Stroeve (Eds.), European review of social psychology (Vol. 4, pp. 141-185). Chichester, England: Wiley. Gounaris, S. P. (2006). Internal-market orientation and its measurement. Journal of business research, 59(4), 432-448. Grable, J. E., & Lytton, R. H. (1997). Determinants of retirement savings plan participation: A discriminant analysis. Personal Finances and Worker Productivity, 1, 184-189. Grace, D., Weaven, S., & Ross, M. (2010). Consumer retirement planning: an exploratory study of gender differences. Qualitative Market Research: An International Journal, 13(2), 174-188. Greenspan, A. (2002). Financial literacy: a tool for economic progress. The Futurist, 36(4), 37. Habib, S. (2007). Counting on the nest egg. Retrieved February 24, 2010, from http://thestar.com.my/news/story.asp?file=/2007/ 5/27/nation/17754089&sec=nation Hair, J. F., Jr, Babin, B., Money, A. H. & Samouel, P. (2003), Essential of business research methods. John Wiley & Sons: United States of America. Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (2006), Multivariate Data Analysis. New Jersey: Prentice-Hall, Inc. Hair, J.F., Money, A.H., Samouel, P. & Page, M. (2007), Research Methods for Business. London: John Wiley & Sons Ltd. Hassan Al-Tamimi, H. A., & Anood Bin Kalli, A. (2009). Financial literacy and investment decisions of UAE investors. The Journal of Risk Finance, 10(5), 500-516. Hayhoe, C. R., Leach, L. J., Turner, P. R., Bruin, M. J., & Lawrence, F. C. (2000). Differences in spending habits and credit use of college students. The Journal of Consumer Affairs, 113-133. Hayslip, B., Bezerlein, M., & Nichols, S. (1997). Assessing anxiety about retirement: the case of academicians. International Journal of Aging and Human Development, 44, 15–36. Hershey, D. A., & Jacobs-Lawson, J. M. (2012). Bridging the gap: Anticipated shortfalls in future retirement income. Journal of Family and Economic Issues,33(3), 306-314. Hershey, D. A., Jacobs-Lawson, J. M., & Neukam, K. N. (2002). Influences of age and gender on workers‟ goals for retirement. International Journal of Aging & Human Development, 55, 163-179. Hogarth, J. M., & Hilgert, M. A. (2002). Financial knowledge, experience and learning preferences: Preliminary results from a new survey on financial literacy. Consumer Interest Annual, 48(1), 1-7. Horioka, C. Y., & Okui, M. (1999). A US–Japan comparison of the importance and determinants of retirement saving. Economics Letters, 65(3), 365-371. Hurd, M.D., 1990. Research on the elderly: Economic status, retirement and consumption and saving. J. Econ. Literat., 28: 565-637. Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs,44(2), 296-316. INCEIF (2006). Islamic Economics and Finance Theory and Ethics. Kuala Lumpur: International Centre for Education in Islamic Finance (INCEIF). Iqbal, Z., & Mirakhor, A. (2011). An introduction to Islamic finance: Theory and practice (Vol. 687). John Wiley & Sons. ISRA (2012). Islamic Financial System: Principles and Operations. Kuala Lumpur: International Shariah Research Academy for Islamic Finance (ISRA). Jacobs-Lawson, J. M., & Hershey, D. A. (2003). Perceptions of financial stability in retirement: Do Americans really know what to expect? In S. P. Shohov (Ed.), Advances in Psychology Research (pp. 123-136). Hauppauge, NY: Nova Science Publishers. James, W., H. Leavell and B. Maniam, 2002. Financial planning, managers and college students. Managerial Finance, 28: 35-42. Kapoor, J.R., Dlabay, L.D. and Hughes, R.J. (2004), Personal finance, McGraw-Hill, New York, NY. Kelechi, A. C. (2012). Regression and Principal Component Analyses: a Comparison Using Few Regressors. American Journal of Mathematics and Statistics, 2(1), 1-5. Kim, J., Kwon, J., Anderson, E. A. 2005. Factors related to retirement confidence: Retirement preparation and workplace financial education. Association for Financial Counseling and Planning Education.77-89. Kharchenko, O. (2011). Financial Literacy in Ukraine: Determinants and Implications for Saving Behavior (Doctoral dissertation, Kyiv School of Economics). Klapper, L., & Panos, G. A. (2011). Financial literacy and retirement planning: the Russian case. Journal of Pension Economics and Finance, 10(04), 599-618. Klapper, L., & Panos, G. A. (2011). Financial literacy and retirement planning: the Russian case. Journal of Pension Economics and Finance, 10(04), 599-618. Lahey, K. E., Kim, D., & Newman, M. L. (2006). Full retirement? An examination of factors that influence the decision to return to work. Financial Services Review, 15(1), 1. Lai, M. M., & Tan, W. K. (2009). An empirical analysis of personal financial planning in an emerging economy. European Journal of Economics, Finance and Administrative Sciences, 16, 99-111. Lim, K.G., 2003. An empirical study of older workers‟ attitudes towards the retirement experience. Employee Relat., 25: 330-346. Lobo, G. J., & Zhou, J. (2006). Did conservatism in financial reporting increase after the Sarbanes-Oxley Act? Initial evidence. Accounting Horizons, 20(1), 57-73. Loewenstein, G., Prelec, D., & Weber, R. (1999). What me worry? A psychological perspective on the economic aspects of retirement. In H. J. Aaron (Ed.), Behavioral dimensions of retirement (pp. 215–246). Washington, D.C.: Brookings Institution Press. Lusardi, A., & Mitchell, O. S. (2009). How ordinary consumers make complex economic decisions: Financial literacy and retirement readiness (NoLusardi, A., & Mitchell, O. S. (2007). Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of monetary Economics, 54(1), 205-224.. w15350). National Bureau of Economic Research. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of Pension Economics and Finance, 10(04), 497-508. Lyons, A. C., Palmer, L., Jayaratne, K. S., & Scherpf, E. (2006). Are we making the grade? A national overview of financial education and program evaluation. Journal of Consumer Affairs, 40(2), 208-235. Malhotra, N. K. (2004). Marketing Research: An Applied Orientation (4th ed.). New Delhi: Pearson Prentice Hall. Mandell, L. (2008). The financial literacy of young American adults: Results of the 2008 National Jump & tart Coalition survey of high school seniors and college students. Washington, DC: The Jump & tart Coalition for Personal Financial Literacy. Chicago Mandell, L. (2003). Financial literacy of high school students. In Handbook of consumer finance research (pp. 163-183). Springer New York. Marshall, J. N. (2004). Financial institutions in disadvantaged areas: a comparative analysis of policies encouraging financial inclusion in Britain and the United States. Environment and Planning A, 36(2), 241-262. McCune, B., Grace, J. B., & Urban, D. L. (2002). Analysis of ecological communities (Vol. 28). Gleneden Beach, OR: MjM software design. Mehta, K. (1999). Singaporeans‟ perceptions and preparations for retirement: A crosscultural inquiry. Ageing International, 25(3), 31-46. Mitchell, O. S., & Moore, J. F. (1998). Can Americans afford to retire? New evidence on retirement savings adequacy. The Journal of Risk Insurance, 65, 371-400. Moen, P., Yu, Y. (2005). Effective work/life strategies: Working couples, work conditions, gender, and life quality. Social Problems, 47, 291-326. Moorthy, M. K., Chelliah, T. D., Chiau, S. S., Lai, C. L., Ng, Z. K., Wong, C. R., & Wong, Y. T. (2012). A study on the retirement planning behavior of working individuals in Malaysia. International Journal of Academic Research in Economics and Management Sciences, 1(2), 54-72. Neukam, K. A., & Hershey, D. A. (2003). Financial inhibition, financial activation, and saving for retirement. Financial Services Review, 12, 19-37. Ng, T. H., Tay, W. Y., Tan, N. L. & Lim, Y. S. 2011. Influence of investment experience and demographic factors on retirement planning intention. International Journal of Business and Management. 6(2): 196-203. Nnoaham, K. E., Hummelshoj, L., Kennedy, S. H., Jenkinson, C., Zondervan, K. T., & World Endometriosis Research Foundation Women's Health Symptom Survey Consortium. (2012). Developing symptom-based predictive models of endometriosis as a clinical screening tool: results from a multicenter study.Fertility and sterility, 98(3), 692-701. Noone, J., Alpass, F., & Stephens, C. (2010). Do men and women differ in their retirement planning? Testing a theoretical model of gendered pathways to retirement preparation. Research on Aging, 32(6), 715-738. NYAMUTE, W., & MAINA, J. M. (2011). Effect of financial literacy on personal financial management practices. OECD (2012). Measuring Financial Literacy: Questionnaire and Guidance Notes for Conducting an Internationally Comparable Survey of Financial Literacy. OECD Publishing, Paris. Overton, R. H. (2008). THEORIES OF THE FINANCIAL PLANNING PROFESSION. Journal of Personal Finance, 7(1). Park, D. (Ed.). (2012). Pension Systems and Old-Age Income Support in East and Southeast Asia: Overview and Reform Directions. Routledge. PISA (2012). Assessment and Analytical Framework: Mathematics, Reading, Science, Problem Solving and Financial Literacy, OECD Publishing. Retrieved February 20, 2014, from http://dx.doi.org/10.1787/978 9264190511-en. Rasheed, F., & Arshad, M. (2009). The Significance of Financial Literacy. Proceedings 2nd CBRC. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs,44(2), 276-295. Richardson, V. E. (1999). Women and retirement. Journal of Women & Aging,11(2-3), 49-66. Russell, K., & Stramoski, S. (2011). Financial management practices and attitudes of dental hygienists: A descriptive study. American Dental Hygienists Association, 85(4), 340-347. Sabri MF, MacDonald M, Masud J, Paim L, Hira TK, Othman MA (2008). Financial Behaviour and Problems among College Students in Malaysia: Research and Education Implication. Consum. Interests Ann., 54: 166-170. Saini, Y., Bick, G., & Abdulla, L. (2011). Consumer awareness and usage of Islamic banking products in South Africa. South African Journal of Economic and Management Sciences, 14(3), 298-313. Sekaran, U. (2003), Research Methods for Business: A Skill Building Approach, 4th ed., Wiley, New York, NY. Sekaran, U., & Bougie, R. (2013). Research Methods for Business: A skill-building Approach; Sixth Edition. The Atrium, Soutern Gate, Chichester, West Sussex, PO 98SQ, United Kingdom: John Wiley & Sons Ltd. Solin, L. J., Orel, S. G., Hwang, W. T., Harris, E. E., & Schnall, M. D. (2008). Relationship of breast magnetic resonance imaging to outcome after breast-conservation treatment with radiation for women with early-stage invasive breast carcinoma or ductal carcinoma in situ. Journal of Clinical Oncology, 26(3), 386-391. Spitzley, D. V., Grande, D. E., Keoleian, G. A., & Kim, H. C. (2005). Life cycle optimization of ownership costs and emissions reduction in US vehicle retirement decisions. Transportation Research Part D: Transport and Environment, 10(2), 161-175. Sunden, A. E., & Surette, B. J. (1998). Gender differences in the allocation of assets in retirement savings plans. American Economic Review, 207-211. Szinovacz, M. E. (1980). Female retirement: Effects on spousal roles and marital adjustment. Journal of Family Issues, 1(3), 423-440. Thilakam, C. (2012, September). Financial Literacy Among Rural Masses in India. In 2012 International Conference on Business and Management, Phuket—Thailand. Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472. Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472. Vitt, Lois A., Carol Anderson, Jamie Kent, Deanna M. Lyter, Jurg K. Siegenthaler, and Jeremy Ward.2000. Personal Finance and the Rush to Competence: Personal Financial Literacy in the U.S. The Fannie Mae Foundation. Walsh, D. A., & Hershey, D. A. (1993). Mental models and the maintenance of complex problem-solving skills in old age. In J. Cerella, J. Rybash, W. Hoyer, & M. L. Commons (Eds), Adult information processing: Limits on Loss (pp. 553-584). New York: Academic Press. Warren, R., & Rossiter-Base, S. (2004). Retirement planning for the over 50‟s. Retrieved 31 March, 2010, from http://www.fsa.gov.uk/pubs/other/fincap/ retirement.pdf Warshawsky, M. J., & Ameriks, J. (2000). How prepared are Americans for retirement?. Forecasting retirement needs and retirement wealth, 33-67. Weagley, R. O., & Huh, E. (2004). Leisure expenditures of retired and near-retired households. Journal of Leisure Research, 36(1), 101. Winnell, M. (1987). Personal goals: The key to self-direction in adulthood. In M. E. Ford &D. H. Ford (Eds.), Humans as self-constructing living systems: Putting the framework to work (pp. 261-287). Hillsdale, NJ: Erlbaum. Wolcott, S. K., Baril, C. P., Cunningham, B. M., Fordham, D. R., & Pierre, K. S. (2002). Critical thought on critical thinking research. Journal of Accounting Education, 20(2), 85-103. Wolcott, I. (1998) 'Families and social responsibility', Family Matters, No. 40, Autumn, pp. 3-4. Worthington, A. C. (2006). Predicting financial literacy in Australia. Yuh, Y., & DeVaney, S. A. (1996). Determinants of couples‟ defined contribution retirement funds. Financial Counseling and Planning, 7, 31–38. Zin., M.Z.M., Kadir, A.R.A., Ishak, S., & Latif, M.A.S. (2011). Growth and Prospect of Islamic Finance in Malaysia. International Conference on Social Science and Humanity. 5, pp.180-184. Zulauf, M. 2003. Financial Literacy. CELCEE. [Online] Available at: http://www.celcee.edu/ publications/digest/dig03-09.html. Accessed: 23 June 2006.

Determinants of Islamic financial literacy towards retirement planning

Similar Items