The influence of religious belief and psychological factors on borrowing behaviour among Malaysian public sector employees
Asia-Pacific Journal of Business Administration
ISSN: 1757-4323
Article publication date: 26 April 2022
Issue publication date: 11 May 2023
Abstract
Purpose
This study investigates the borrowing behaviour of public sector employees in Malaysia by focusing on religious belief and psychological factors. The first objective of the study is to examine the differences in the borrowing behaviour according to demographic and socioeconomic factors of the civil servants. The second objective of the study is to investigate the influence of religious belief, excessive consumption, materialism and financial literacy towards two aspects of borrowing behaviour: personal loans and credit card usage.
Design/methodology/approach
Primary data was collected using a digital survey which was distributed using a convenience sampling approach to public sector employees working in Putrajaya and Kuala Lumpur, Malaysia. A sample of 340 public sector employees was obtained for analysis.
Findings
The study found that civil servants of different education backgrounds and income levels tend to differ in their borrowing behaviour. Specifically, those with lower levels of education, or lower income levels, tend to have a higher tendency of borrowing through personal loans. Multiple regression analyses reveal that public sector employees with either higher religious belief or higher financial literacy have a lower tendency of borrowing either through credit cards or personal loans. However, those who spend excessively or those who have higher levels of materialism tend to display more aggressive borrowing behaviour in terms of credit card usage and personal loans.
Originality/value
The study contributes to the literature by exploring the role of religious belief on borrowing behaviour. In addition, the study contributes to the literature by examining a specific group in the Malaysian society, i.e. public sector employees, due to the perturbing state of indebtedness among civil servants in Malaysia.
Keywords
Acknowledgements
This publication is partially funded by the Faculty of Business and Economics, Universiti Malaya Special Publication Fund.
Citation
Mahdzan, N.S., Zainudin, R. and Shaari, M.S. (2023), "The influence of religious belief and psychological factors on borrowing behaviour among Malaysian public sector employees", Asia-Pacific Journal of Business Administration, Vol. 15 No. 3, pp. 361-385. https://doi.org/10.1108/APJBA-10-2020-0362
Publisher
:Emerald Publishing Limited
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