Antecedents and Consequences of Risky Credit Behavior among College Students: Application and Extension of the Theory of Planned Behavior
By Jing Jian Xiao, Chuanyi Tang, Joyce Serido, Soyeon Shim. 2011
325 citations recorded by the source corpus.
The Credit Card Act of 2009 reflects increased public policy concern about the risky credit behaviors of young adults. This act promotes increased responsibility of parents and implies that young adults must acquire financial knowledge and practice responsible financial behaviors. This study addresses this public issue by investigating the psychological processes underlying young adults’ risky credit card behaviors and the role of parents and financial knowledge in the financial behavior of young adults. A conceptual model based on an extension of the theory of planned behavior is proposed. The authors collected data from a sample of first-year students at a major public university. The results show that both parental norm and parental socioeconomic status are important factors that influence students’ risky credit behaviors. Furthermore, subjective financial knowledge does more to prevent risky credit behaviors than objective financial knowledge. Finally, behavioral intention is the most important factor in preventing risky credit behaviors and credit card debt accumulation. The authors draw on their findings to provide public policy implications.
Subfields: Accounting, Economics and Econometrics, Gender Studies
View Paper: https://www.semanticscholar.org/paper/a03aebdbcf029d0243b2b04a0e3c88b75e7501c2
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Citations in the corpus
- A developmental model of financial capability (2013, methodology): “Our findings, however, add to a growing body of research (e.g., Ellen, 1994; Raju et al., 1995; Xiao et al., 2011), demonstrating that objective knowledge alone is not enough to foster the development of responsible financial behaviors.”
- Financial literacy: A systematic review and bibliometric analysis (2020, unknown): “A major reason why college students fall into credit card-related debt is their lack of financial knowledge (Norvilitis et al., 2006; Xiao, Tang, Serido, & Shim, 2011).”
- Consumer Financial Capability and Financial Satisfaction (2013, background): “Previous research showed that both types of knowledge have positive impacts on financial behavior but magnitudes of the effects are differential (Robb and Woodyard 2011; Xiao et al. 2011).”
- Age differences in consumer financial capability (2015, methodology): “Both objective and subjective financial literacy factors were used to predict financial behavior (Robb and Woodyard, 2011; Xiao et al., 2011; Allgood and Walstad, 2013).”
- Financial Knowledge and Credit Card Behavior of College Students (2011, background): “They found that subjective financial knowledge may be more important than objective financial knowledge in terms of actions taken by students, and indicate that behavioral intention is the single most important factor in whether students make responsible credit decisions (Xiao et al. 2011).”
- An integrated model of financial well-being: The role of financial behavior (2021, background): “Financial behavior cannot be separated from self-control (Ainia & Lutfi, 2019; Ajzen, 1991; Xiao et al., 2011).”
- The relationship between financial efficacy, satisfaction with remuneration and personal financial well-being (2014, background): “Perceived behavioural control (which includes financial efficacy) was found to have a positive relationship with good financial behaviours (Shim, Barber et al., 2009; Xiao et al., 2011; Shim, Xiao et al., 2009; Staten & Johnson, 2010).”
- Understanding Collaborative Consumption: An Extension of the Theory of Planned Behavior with Value-Based Personal Norms (2017, unknown): “Finally, practitioners find the theory a useful framework for developing behavioral change interventions (Smith et al. 2008; Xiao et al. 2011).”
- Financial Literacy and Emergency Saving (2014, background): “…link between knowledge and behavior (Hilgert et al. 2003; Lusardi and Mitchell 2011; Robb and Woodyard 2011), though recent findings indicated that subjective knowledge might be a more effective predictor of financial behavior than objective knowledge (Robb and Woodyard 2011; Xiao et al. 2011).”