Examining the Impact of Financial Literacy, Financial Self-Control, and Demographic Determinants on Individual Financial Performance and Behavior: An Insight from the Lebanese Crisis Period

Jeanne Laure Mawad (), Seyed Alireza Athari, Danielle Khalife and Nouhad Mawad
Additional contact information
Jeanne Laure Mawad: Department of Finance, Business School, Holy Spirit University of Kaslik, Jounieh P.O. Box 446, Lebanon
Seyed Alireza Athari: Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University, Nicosia 99258, Northern Cyprus, Turkey
Danielle Khalife: Department of Finance, Business School, Holy Spirit University of Kaslik, Jounieh P.O. Box 446, Lebanon
Nouhad Mawad: Department of Finance, Business School, Antonine University, Baabda 40016, Lebanon

Sustainability, 2022, vol. 14, issue 22, 1-17

Abstract: This study investigated the effects of financial literacy, financial self-control, and demographic determinants on individual financial performance and behavior during the Lebanese crisis period between 2019 and 2021. To the best of our knowledge, this may be the first study that compares the determinants of financial behavior for different generations, genders, marital statuses, and education and income levels. To do so, we conducted a comprehensive survey of 328 individuals and performed a logistic regression analysis. The empirical results show that an individual’s financial performance and behavior are positively affected by financial literacy, financial self-control, and demographic factors, in particular education and income levels. In addition, when we focused on the demographic factors, the results reveal that having good financial literacy increases the likelihood of an individual’s financial performance and behavior, in particular for Generations X and Z, males and females, single and married people, low- and high-educated people, and low- and high-income individuals. However, having good financial self-control only increases the likelihood of an individual’s financial performance and behavior at highly educated levels. The results are robust and come from various performed methodologies, and the results have important policy implications. The policies should be focused on enhancing an individual’s financial behavior and helping young adults acquire skills in self-control. Policies could also motivate local financial institutions to offer a variety of financial products and investment opportunities, targeting low-income and low-educated individuals, by providing subsidized funds with parallel mandatory financial studies.

Keywords: financial literacy; self-control; financial performance; Lebanese crisis; logistic regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:22:p:15129-:d:973639

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