Financial Management Behavior & Financial Decision: Role of Self -Control, Optimsim & Deliberative Thinking

Abstract

The purpose of the paper was to identify how individual's financial behaviour and financial decision are affected by several variables. It is important to investigate how psychological characteristics influence individual's financial behaviors and financial decisions. This objective was achieved by administering a questionnaire. A survey having measures of financial management behaviour, financial decisions, Self control, optimism and deliberative thinking was sent to representative sample (n= 400). Two main statistical techniques were used to analyze collected data i.e correlation analysis and regression analysis. Correlation was used to determine the existence of relationship among financial management behavior and financial decision with self control, optimism and deliberative thinking. Regression test was used to identify the nature of relationship between variables. In addition to that PCA test and reliability test were also performed. The Findings shows that self-control and deliberative thinking have weak correlation with financial management behaviour where as optimism have moderate correlation. Financial decisions have no significant difference in relation with self control, optimism and deliberative thinking; all of them have moderate correlation. Keywords: Financial Management Behavior, Financial decision, Optimism, Deliberative thinking, self-control, Principle component analysis.