FACTORS INFLUENCING FINANCIAL BEHAVIOUR OF DEVELOPMENT OFFICERS: EVIDENCE FROM KALUTHARA DISTRICT, SRI LANKA

Abstract

Financial behaviour explains how human emotions, biases, and cognitive limits in processing and responding to information influence financial decisions such as investments, payments, risk, and personal debt. It is vital to recognize and comprehend the overall effects of financial actions on one's circumstances and to make the proper cash management, precautions, and budget planning decisions. The purpose of the study was to determine the factors that influence the financial behaviour of development officers in Sri Lanka. The data were collected using a quantitative approach by distributing questionnaires, and the sample of 93 respondents was chosen using the stratified random sampling technique. Regression analysis was used to analyze the data. The findings of the study demonstrated that financial literacy, financial self-efficacy, and socio-economic position had a positive and significant impact on development officers' financial behaviour. As per the results of the study, the most significant influence on development officers' financial behaviour was their socio-economic background. The results revealed that all of the independent factors of the study have a significant impact on financial behaviour. As a result, the findings of the study provide direction for future researchers to develop more financial variables. The study has a drawback in terms of generalizing the findings because it only investigated the Kaluthara district. Future researchers can replicate the study in a variety of scenarios to get a more generalized insight.