Moderating role of social capital on the effect of financial behavior on financial inclusion
TLDR
In this article, the authors proposed that building social networks capable of informing requisite financial behaviors would facilitate the financial inclusion of SMEs coexisting in business clusters, and empirically test the moderating influence of collective action, bonding, trust, and bridging on the effect of financial behavior on financial inclusion.Abstract:
The need for improved institutional interventions aimed at increasing access to financial services by small and medium enterprises (SMEs) has been emphasized. Complimenting these efforts, this study proposes that building social networks capable of informing requisite financial behaviors would facilitate the financial inclusion of SMEs co-existing in business clusters. This study aimed to empirically test the moderating influence of collective action, bonding, trust, and bridging on the effect of financial behavior on financial inclusion. Using a sample of 311 owners/managers of small and medium scale businesses in sub-urban clusters in South-Eastern Nigeria, the hierarchical moderated regression analysis was used to test the hypotheses of the study. Results show a positive main effect of financial behavior on financial inclusion (βf = 0.162; t (304) = 1.503; p < 0.05). Also, collective action (βfca = 0.201; t (304) = 6.906; p < 0.05) and bridging (βfbr = 0.201; t (304) = 6.906; p < 0.05) had positive moderating effects, bonding (βfb = 0.032; t (304) = 1.423; p > 0.05) and trust (βft = 0.014; t (304) = 0.9609; p > 0.05) were statistically insignificant. For policy implications, social virtues such as bridging and collective action are more veritable tools for financial inclusion than the personal virtues of trust and bonding and should be factored into economic and social intervention being deployed by institutions interested in meeting the banking/financial needs of businesses.read more
Citations
More filters
Posted Content
How Enhancing Information and Communication Technology has affected Inequality in Africa for Sustainable Development: An Empirical Investigation
TL;DR: In this article, the authors examined if enhancing ICT reduces inequality in 48 countries in Africa for the period 2004-2014 and found that increasing internet penetration and fixed broadband subscriptions have a net effect on reducing the Gini coefficient and the Atkinson index.
Journal ArticleDOI
The Influence of Behavior Financial and Financial Attitude on Investment Decisions With Financial Literature as Moderating Variable
TL;DR: In this paper , the authors study how financial behavior, attitudes, and literacy affect student investment decisions and find that financial attitudes and financial literacy can influence investment decisions made by students in South Jakarta.
Journal ArticleDOI
The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon
TL;DR: In this paper , the mediating effects of financial literacy and the moderating role of social capital on the relationship between financial inclusion and sustainable development in Cameroon were examined and a PLS-SEM model was used with 488 collected samples as empirical data from the residents of the Douala and Buea municipalities in Cameroon.
Book ChapterDOI
Financial Inclusion, Social Exclusion, Social Capital, and Psychological Theories of Poverty in the Fourth Industrial Revolution
Journal ArticleDOI
More networks, more financial inclusion? An empirical evidence from Indonesia
TL;DR: In this article , a logistic regression model and a sample of 74,454 individual respondents from the 2018 National Socioeconomic Survey was used to find that social capital is essential in promoting formal saving behavior.
References
More filters
Journal ArticleDOI
Social capital: implications for development theory, research, and policy
Michael Woolcock,Deepa Narayan +1 more
TL;DR: In this article, the authors trace the evolution of social capital research as it pertains to economic development and identify four distinct approaches the research has taken : communitarian, networks, institutional, and synergy.
Journal ArticleDOI
Social Capital, Collective Action, and Adaptation to Climate Change
TL;DR: The authors argue that societies have inherent capacities to adapt to climate change, but these capacities are bound up in their ability to act collectively, and they argue that this capacity is limited by the nature of the agents of change, states, markets and civil society.
Journal ArticleDOI
Financial Literacy and Stock Market Participation
TL;DR: In this article, the authors evaluated the importance of financial literacy by studying its relation to the stock market: are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, they make use of questions measuring financial knowledge before investing in the stock markets.
Journal ArticleDOI
Financial literacy and stock market participation
TL;DR: In this article, the authors evaluated the importance of financial literacy by studying its relation to the stock market: are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, they make use of questions measuring financial knowledge before investing in the stock markets.
Journal ArticleDOI
Cultural Biases in Economic Exchange
TL;DR: This paper used data on bilateral trust between European countries and found that lower bilateral trust leads to less trade between two countries, less portfolio investment, and less direct investment, even after controlling for the characteristics of the two countries.