An Application and Extension of the Theory of Planned Behavior to the financial behavior: Evidence from Thai and international workers

Abstract

The objectives of this research were 1) to investigate financial-oriented attitude, subjective norm, perceived behavior control, risk-oriented factor, saving plan intention, and saving behavior on retirement financial planning; 2) to find out a positive association of financial-oriented attitude on saving plan intention and the mediational effect of saving plan intention on financial-oriented attitude and saving behavior; 3) to analyze a positive association of subjective norm on saving plan intention and the mediational effect of saving plan intention on subjective norm and saving behavior; 4) to identify a positive association of perceived behavior control on saving plan intention and the mediational effect of saving plan intention on perceived behavior control and saving behavior; 5) to indicate a positive association of risk-oriented factor on saving plan intention and the mediational effect of saving plan intention on risk-oriented factor and saving behavior; 6) to reveal a positive association of saving plan intention and saving behavior; evidence from Thai and international workers in Thailand. All data were collected from 400 employees (300 Thai employees and 100 international employees) in Thailand that the sampling method on this empirical research was purposive sampling method to identify sample target with the minimum income 20,000 Bath per month in various occupations. This research analysis method was analyzed by using descriptive statistical analysis (frequency, percentage, mean, standard deviation) and inferential statistics (Structural Equation Modeling (SEM) Amos).

The research’s findings described that Thai and international employees working in Thailand had opinion on financial-oriented attitude, subjective norm, perceived behavior control, risk-oriented factor, saving plan intention, and saving behavior in high level and definitely high level. The finding indicated that financial-oriented attitude had the positive effect on saving plan intention (0.677), subjective norm had the positive effect on saving plan intention (0.272), perceived behavior control had the positive effect on saving plan intention (0.560), risk-oriented factor had the positive effect on saving plan intention (0.700), and saving plan intention had the positive effect on saving behavior (0.810). For the mediation effect, the mediated effect of saving plan intention on financial-oriented attitude and saving behavior is supported (direct effect 0.236, indirect effect 0.357), the mediated effect of saving plan intention on subjective norm and saving behavior is supported (direct effect 0.118, indirect effect 0.127); however, the mediated effect of saving plan intention on perceived behavior control and saving behavior is not supported, and the mediated effect of saving plan intention on risk-oriented factor and saving behavior is not supported.

Therefore, the implication of this research illustrated that employees focus on financial-oriented attitude, subjective norm, perceived behavior control, and risk-oriented factor to develop higher ability for saving plan intention and saving behavior for the successful retirement planning. Furthermore, workers can concentrate on the mediation effect of saving plan intention on financial-oriented attitude and saving behavior, and subjective norm and saving behavior. Finally, company and government can imply this study into the company’s policy and government’s policy to encourage all workers to get rid of financial problem during the retirement. This study makes a great contribution on comprehensive model to reveal all relationship of retirement financial planning.

-