The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees

Date28 July 2023
Pages652-666
DOIhttps://doi.org/10.1108/JFC-04-2023-0080
Published date28 July 2023
AuthorEley Suzana Kasim,Noor Rohin Awalludin,Nurazilah Zainal,Allezawati Ismail,Nurul Huda Ahmad Shukri
The ef‌fect of f‌inancial literacy,
f‌inancial behaviour and f‌inancial
stress on awareness of investment
scams among retirees
Eley Suzana Kasim
Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia
Noor Rohin Awalludin
Faculty of Business Accounting and Social Sciences, Kolej Poly-Tech
MARA Kampus Bangi, Bandar Baru Bangi, Malaysia
Nurazilah Zainal
Faculty of Business and Management, Universiti Teknologi MARA,
Seremban, Malaysia, and
Allezawati Ismail and Nurul Huda Ahmad Shukri
Faculty of Business Accounting and Social Sciences, Kolej Poly-Tech
MARA Kampus Bangi, Bandar Baru Bangi, Malaysia
Abstract
Purpose This study aims to investigatethe effects of f‌inancial literacy, f‌inancial behaviourand f‌inancial
stress on awarenessof investment scams among retirees.
Design/methodology/approach Using a questionnairesurvey, data was distributed to 200 retirees. A
total of 53 responseswere obtained. The data was subsequently analysedusing PLS-SEM version 3 software.
Findings Findings indicatedthat while f‌inancial literacy has a signif‌icant inf‌luenceon awareness, there is
no conclusive evidence to support the relationship between f‌inancial behaviour and f‌inancial stress on
awareness. These results highlighted the critical need to strengthen f‌inancial literacy among retirees as a
preventionmechanism for them to avoid from being scammed.
Research limitations/implications The f‌inding from this study is relevant to regulators and law
enforcement agenciesto aid potential and actual retirees by educating them on thedanger of investment
scams.
Originality/value As there are relativelyfew studies conducted on investment scams specif‌ically among
retirees, this study extends the investment scam literature by examining the underlying factors that affect
their awarenesstowards the fraudulent activities.
Keywords Financial literacy, Financial behaviour, Financial stress, Investment scam, Awareness
Paper type Research paper
The authors would like to thank the editors and the anonymous referees of the Journal of Financial
Crime. Furthermore, special thanks to Internal Grant of Kolej Universiti Poly-Tech MARA Project
Code: 100-TNCPI/PRI 16/6/2 (047/2022) sponsored by Kolej Universiti Poly-Tech MARA; Young
Talent Research Grant Project Code: 600-RMC/YTR/5/3 (008/2022) sponsored by Universiti
Teknologi MARA; and Accounting Research Institute, Universiti Teknologi MARA as organisations
that funded the research. The usual caveats apply.
JFC
31,3
652
Journalof Financial Crime
Vol.31 No. 3, 2024
pp. 652-666
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-04-2023-0080
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm

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