This study intentions to observe the relation between financial knowledge, attitude and behaviour and life style, loan negligence and the role of religiosity as the moderator among young adult in Klang Valley, Malaysia. This section will define how the study essentially carry out to reach the objective. Besides, this section also will presents the theoretical framework and hypothesis resultant from literature review showed in the previous chapter. This chapter will also enlightens research design, operation definition, population and sampling procedures, variables, measurement and instrument followed by the data collection procedure.
Lastly, this chapter will finished with a detail enlightenment about the data analysis techniques.Primarily, founded on the behavioural finance theory, research framework was established to exemplify the relationship between the explored independent variables, financial literacy dimension, financial attitude and behaviour dimension, lifestyle dimension and the dependent variable, loan negligence. In the meantime, religiosity is hypothesized to moderate the relationship between all independent variables and loan negligence. Each variable display in the framework is conceptual defined in the following subsequent topic.
The diagram of the proposed study is depicted in figure 3.1 explains an outline of the model to be investigated. Lastly, the relationship between financial literacy, financial attitude and behaviour, lifestyle dimension, religiosity and loan negligence among young adults in Klang Valley will be resolute through statistical analysis.The intention of this study is to examine the relationship concerning financial literacy, financial attitude and behaviour, lifestyle and loan negligence besides the role of religiosity concerned among young adult in Klang Valley, Malaysia. Therefore, the purposed research framework as shown in Figure 3.
1 expressed after meticulously exploratory the applicable literatures and synchronised with research objectives. Based on the obtainable theoretical framework, some research hypotheses were proposed for further empirical exploration.Interpretation by Sekaran and Bougie (2010), to moderation variable is one that has a strong reliant effect on the relationship of independent and dependent variables.
The occurrence of the moderating variable changes the preliminary relationship between the independent variable and dependent variables. Even yet this study succeeded to support the relationship between independent, dependent and the moderating variables, though, the effect of religiosity as moderator to the relationship between financial literacy, financial attitude and behaviour, lifestyle and loan negligence as a single model is little known.Religiosity defines ones belief in Allah, categorised by piousness and obligation to follow principle believed to be set by Allah. Allport (1950) proposed that religion alleged distinguishing roles in an individual’s life. It is a cultural factor which effects social institutions and has influence on the behaviour, attitudes and values of and individual and the society as a total (Mokhlis, 2009).
Religious has been recognized by researchers as a vital influencer of human behaviour (Lau and Tan, 2009).Following on the results from prior studies, religiosity is predictability to influence some behaviours. Al-Azzam, Hill and Sarangi (2011) had initiate that religiosity had moderate the relationship between the observable variables (screening, peer monitoring, group pressure and social ties) and loan repayment. The researcher thought that borrowers who are more religious are less likely to make late payment.
Teah, Lwin and Cheah (2014) inveterate that religious belief is originate to be a substantial variable that moderates the relationship between attitudes toward charities and motivation to donate. Successively, Lau, Choe and Tan (2013) mentioned that the relationship between money ethics and tax elusion has been moderated by the essential religiosity.