ISSN: 2222-6990
Open access
Issues regarding financial literacy have gained attention and highly debated topics among scholars due to recent global financial scandal has led the government to emphasize on financial education towards its citizen. Emphasizing on financial knowledge is importance to improve nation financial well-being and contribute to country healthy economy. Furthermore, entrepreneurship is seen as one of the many leaps towards a country’s growth as it represents an important source of employment, while the youth are the ones responsible of its advancements. The purpose of this paper is to explore the issues regarding financial literacy and it’s important as a medium that led to entrepreneurship intention among Malaysian accounting students. This study adopted quantitative survey method to collect data among 238 undergraduates accounting students from four public higher education institutions in Malaysia. The survey instruments includes 20 items that measure the level of financial literacy and 14 items that measure constructs of intention toward entrepreneurship. Descriptive statistic analysis which analyze for frequency, mean and percentage were employed to investigate research questions to obtain the view from research sample. Findings demonstrated that the financial literacy level among undergraduates accounting students are at a moderate level and become a cause of concern and raises serious issues regarding youth capabilities to secure their financial well-being. It has also been observed that financial literacy (financial and management knowledge) lead to increased intention toward entrepreneurship among undergraduates accounting students. The implication of this study is that financial literacy is vital and entrepreneurship dimension should be equipped within future young entrepreneurs.
ANZ (2008) ANZ Survey of Adult Financial Literacy in Australia. Roy Morgan Research BALLENGER, B., 2017.10 Money Mistakes That Everybody Makes. BUSINESS INSIDER. Retrieved from http://articles.businessinsider.com/2017-007/news/31605305_1_retirement plan-student-loans-mistakes.
Agarwalla, S. K., Barua, S. K., Jacob, J. & Varma, J. R. (2013). Financial literacy among working young in urban India. IMA Working Paper. No. 2013-10-02, pp. 1-27.
Ahmad, N. L. & Rhouse, M. S. (2016). Professional skills of accounting graduates: gap between employer expectations and student needs in accounting curricula. Jurnal Pendidikan Malaysia. Vol 41(1), pp. 7-17.
Allgood, S. and Walstad, W. (2013). Financial literacy and credit card behaviours: a cross-sectional analysis by age, Numeracy, Vol. 6 No. 2, pp. 1-26.
Atkinson, A & Messy, F. A. (2012).Measuring financial literacy: results of the OECD/international network on financial education (INFE) pilot study. Working Papers on Finance, Insurance and Private Pensions. No. 15, pp. 1-73.
AKPK (2016). Kadar muflis golongan muda di Malaysia merisaukan.
https://akpk.org.my/my/pengurusan-kredit.
Barodich, S., Deplazes, S., Kardash, N. & Kovzik, A. (2010). Comparative analysis of the levels of Financial Literacy among students in the U.S., Belarus and Japan. Journal of Economics and Economic Education Research. Vol 11(3), pp. 71-86.
Bartley, J. (2011). What drives financial literacy among the young? Undergraduate Economic Review. Vol. 7(1), pp 1-15.
Baum, J.A., Calabrese, T., & Silverman, B.S. (2000). Don’t go it alone: Alliance network composition and startups’ performance in Canadian biotechnology. Strategic Management Journal. Vol. 21 No. 3, pp. 267-294.
Bernheim, B. D. (1998). Financial illiteracy, Education and Retirement Saving. University of Pennsylvania Press, Philadelphia, pp. 38-68.
Brown, M. & R. Graf (2013). Financial Literacy, Household Investment and Household Debt: evidence from Switzerland. Working papers on Finance No. 13/1. Swiss Institute of Banking and Finance.
Brown, R., Berman, S. M., & Beresford, R. (2006). You owe it to yourself: The financially literate manager. Accounting Forum. Vol 30(2), pp. 197-191.
Bruhn, M., & Zia, B. (2011). Stimulating managerial capital in emerging markets: the impact of business and financial literacy for young entrepreneurs: World Bank Working Paper, 5642.
Bucher-Koenen, T., Lusardi, A. & Alessie, R. J. (2016). How financially literate are women? An overview and new insights. GFLEC Working Paper. No 2016-1, pp. 1-37.
Cavana, R. Y., Delahaye, B. L., and Sekaran, U. (2000). Applied Business Research: Quantitative and Qualitative Methods. John Wiley & Sons. Australia.
Chaterjee, S. (2013). Borrowing Decisions of Credit Constrained Consumers and the Role of Financial Literacy. Economic Bulletin. 33(1), pp. 179-191.
Chinen, K. & Endo, H. (2012). Effect of attitude and background on personal financial ability: a student survey in the United States. International Journal of Management. 29 (1), pp. 33-45.
Cole, S., Paulson, A. & Shastry, G. K. (2014). Smart money: the effect of education on financial behavior. Harvard Business School Finance Working Paper. No. 9-71.
Dahlia, I., Rabitah, H. & Zuraidah, M. I. (2009). A Study on Financial Literacy of Malaysian Degree Students. Cross-cultural Communication. 5(4), pp. 51-59.
Drexler, A., Fischer, G., & Schoar, A. (2010). Keeping it simple: financial literacy and rules of thumb. Centre for Economic Policy. Research Education Paper. 7994.
Gallery N., Gallery G., & Brown K., (2011). Financial literacy and pension investment decision. Financial Accountability and Management. 27(3), pp. 286-307.
Garman, E.T. & Forgue, R. (2010). Personal Finance. Cengage Learning.
Garg, N. and Singh, S. (2018). Financial literacy among the young. International Journal of Social Economics. Vol. 45 No 1, pp.173-186.
Habib Auwal, A. (2015). Entrepreneurship development and financial literacy in Africa. World Journal
In-Text Citation: (Ahmad, Yusof, Ahmad, & Ismail, 2019)
To Cite this Article: Ahmad, N. L., Yusof, R., Ahmad, A. S., & Ismail, R. (2019). The Importance of Financial Literacy towards Entrepreneurship Intention among University Students. International Journal of Academic Research in Business and Social Sciences, 9(9), 18–39.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode