SOCIAL MEDIA AND PERSONALITY TRAITSâ IMPACT ON MANAGING THE DEBT RISK: A CASE STUDY IN INDONESIA
As financial technology and consumer behavior in Indonesia evolve, research that assesses their level of risk in debt management is required. This study was conducted to investigate the relationship between personality traits, behavioral factors, and social media in association with a person's...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/70736 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | As financial technology and consumer behavior in Indonesia evolve, research that assesses their level of risk in debt management is required. This study was conducted to investigate the relationship between personality traits, behavioral factors, and social media in association with a person's response in unexpected situations and to cause them into debt, as much had happened since Covid-19 hit. This study used the quantitative approach using a survey through the online questionnaire for Indonesian citizens over 17 years old. Our data indicated a significant difference in age, education level, domicile, monthly income, and monthly expenses groups related to how they manage debt risk. For personality traits, neuroticism and conscientiousness were statistically associated with debt management choices. In addition, financial behavior and social media usage are significantly associated with debt management risk. Financial behavior was negatively associated, while social media usage was positively associated with high-risk debt management choices. Although the financial influencer was found not directly significant with debt risk, this study found that financial behavior is a mediator in financial influencer and debt management risk. This analysis was obtained through ordered logistic regression, with additional analysis such as ANOVA and mediation analysis through the Sobel test. This study is suitable to be implemented by lenders, such as banks or peer-to-peer businesses, concerning the type of people who are most likely to have debt troubles. At the same time could be beneficial for the regulators regarding how they can create policies related to borrowing applicants to avoid risky debtors to encourage a low non-performing loan (NPL) ratio. Also, social media data regulation needs to be strengthened so that business stakeholders would respect the code of ethics while also giving additional information to the development of their business. |
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