Analysis of the Effect of Financial Literacy, Financial Attitude, and Personality on MSME Financial Management Behavior in Ende Regency

Abstract

This research aims to determine (1) the effect of financial literacy on financial management behavior, (2) the effect of financial attitude on financial management behavior, and (3) the influence of personality on financial management behavior among MSMEs in large and retail trade, as well as car and motorcycle repair businesses in Ende Regency. This study is classified as associative causal research. The subjects of this study were all MSME owners in wholesale and retail trade, including car and motorcycle repair businesses in Ende Regency, totaling 96 MSMEs. Data collection techniques were carried out using questionnaires. Validity and reliability tests were conducted on 96 respondents outside the research subjects who were also registered as MSME owners in the same sector. The analysis prerequisite tests included linearity, multicollinearity, and heteroscedasticity tests. Data were analyzed using multiple linear regression. The results show that financial literacy has a positive and significant effect on financial management behavior with a coefficient of 0.390. Financial attitude also has a positive and significant effect on financial management behavior with a coefficient of 0.434, and personality has a positive and significant effect on financial management behavior with a coefficient of 0.120.