Pinpointing the Determinants of Financial Literacy: Empirical Evidence of Indonesian Employees in Malaysia

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Keywords: Financial Literacy, Indonesian Employee, EFA


This paper investigates the determinants variables of financial literacy through Exploratory Factor Analysis among Indonesian employees’ works in Malaysia. This study is quantitative study with 117 respondents. The data from respondents are collected through questionnaire on five-point Likert scale. Data analysis employs EFA (Exploratory Factor Analysis) which reduce the factors into expected variables. The study found that there 7 factors emerged in based on data analysis namely, financial literacy contributes with higher percentages factors 13.93%, financial planning contributes with 11.28%, financial control with 9.86%, exchange rate awareness with 9.52%, financial attitude with 9.07, financial subjective norms with 8.76, and lastly financial awareness contributes 6.93%. Meanwhile, simultaneously all variables have commutative percentages about 69.38%. Further studies are required to investigate or examine each emerged variables for example, SEM, Regression analysis, One Way ANOVA, and so on. Moreover, wider coverage of research sample and research object also suggested.


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Author Biographies

Setiawan Lahuri, Universitas Darussalam Gontor

Vice Rector of Universitas Darussalam Gontor

Nurdianawati Irwani Abdullah, International Islamic University Malaysia (IIUM)

Professor on Takaful and Islamic Social Finance at IIUM


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