Financial Management Behavior Scale: A Re-Conceptualization for Emerging Markets

Authors

  • Vineetha Mathew University of Kerala
  • Sanjeev M.A. Jaipuria Institute of Management, Indore
  • Kirti Goyal Manipal University Jaipur
  • Biju Ajithakumari Vijayappan Nair University of Kerala
  • Jing Jian Xiao University of Rhode Island

DOI:

https://doi.org/10.61190/chts3t53

Keywords:

financial management behavior, long-term financial management behavior, short-term financial management behavior, psychometric properties

Abstract

Understanding financial management behavior (FMB) is critical for improving individual well-being. Guided by the psychological and cultural dimensions of economic behavior, this study adapts and validates a simple yet comprehensive FMB scale in the context of a developing economy. Specifically, the study adapts and validates the Financial Management Behavior Scale developed by Dew and Xiao (2011) for the Indian context. Using a sequential exploratory design, the qualitative phase culturally contextualizes and refines the scale items, while the quantitative phase reassesses the factor structure and establishes reliability, structural validity, and criterion validity. Data were collected using purposive maximum-variation sampling to ensure socio-demographic heterogeneity appropriate for scale validation. The scale comprises two distinct factors based on temporal and cultural orientations of human behavior: short-term and long-term FMB. The scale captures an exhaustive range of behavioral domains, including cash management, credit/debt management, comparison shopping/thrift, savings, retirement planning, emergency funds, and insurance/risk management, within a simplified two-factor structure. This simplified two-factor structure provides a context-sensitive yet empirically robust tool for advancing FMB research and informing FMB interventions in India and similar emerging economies.

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Author Biographies

  • Vineetha Mathew, University of Kerala

    Dr. Vineetha Mathew is a passionate researcher in management, specializing in personal finance, behavioral finance, gender studies, and wellbeing. She is currently pursuing her ICSSR sponsored Post Doctoral Fellowship in University of Kerala, India. She completed her PhD in management from School of Management Studies, Cochin University of Science and Technology, Kerala, India. She also holds industry experience as an Associate Consultant - Financial Services at Infosys. She has several publications in Scopus and ABDC indexed journals, with research focused on human psychology, behaviour, and its impact on decision-making, offering valuable insights to her field.

  • Sanjeev M.A., Jaipuria Institute of Management, Indore

    Dr. Sanjeev M. A. is an Associate professor of Management at Jaipuria Institute of Management, Indore, India. He teaches in the areas of Marketing, Consumer Behaviour, and Strategic Management. Before his academic career, he spent a decade and a half in Corporate. He functioned in various positions in the Pharmaceutical & Healthcare, BFSI and Advertising industries. His research interest includes consumer behaviour, scale development, and corporate communication.

  • Kirti Goyal, Manipal University Jaipur

    Dr. Kirti Goyal is currently working as an Assistant Professor at the Department of Business Administration, Manipal University Jaipur. She has completed her PhD from Department of Management Studies at Malaviya National Institute of Technology (MNIT), Jaipur, Rajasthan, India. She has done her Bachelor of Commerce (Honors course) from Indraprastha College for Women, University of Delhi and Master of Commerce from Hansraj College, University of Delhi. She was also awarded Junior Research Fellowship (NET-JRF) from University Grants Commission in 2018. Her research has been published in various journals of international repute such as International Journal of Bank Marketing, International Journal of Consumer Studies, Global Business and Organizational Excellence, Qualitative Research in Financial Markets, Journal of Business Research, Journal of Behavioral and Experimental Finance, and International Review of Financial Analysis. Her areas of research interest include personal financial planning, behavioral finance, consumer economics, and systematic literature reviews using varied techniques.

  • Biju Ajithakumari Vijayappan Nair, University of Kerala

    Dr Biju Ajithakumari Vijayappan Nair is an Associate Professor at the University of Kerala. His research interests include Sustainable finance, Nudging and behavioural economics, Crypto Market, ML in Finance, Green finance, greenwashing, Green Bonds, Sustainability Reporting, and ESG. He is a research supervisor in the Faculty of Commerce and Faculty of Management at the University of Kerala and produced 6 PhD. He has collaborated with the Research Sans Frontier (RSF) in Dubai. He is a visiting faculty member of the University of Wollongong, UAE and collaborates with Khalifa University, Toi Ohomai Institute of Technology and James Cook University. He serves as the reviewer of Elsevier, Springer, Wiley, Inderscience and IGI Global journals. His papers appeared in the Journal of Behavioural and Experimental Finance, Business strategy and the environment, CSR and Environment Management, Employees Responsibilities and Rights Journal, Environmental Science and Pollution Research, Business Strategy and Development, Business Strategy and Environment, Quality and Quantity, S N Business and Economics, Asia Pacific Journal of Finance Studies, Digital Finance and the International Journal of Human Capital and Information Technology Professional (IJHCIT)

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2026-05-24

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Financial Management Behavior Scale: A Re-Conceptualization for Emerging Markets. (2026). Financial Services Review, e003. https://doi.org/10.61190/chts3t53

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