We are expecting in future that the number of people facingfinancial difficulties will increase. This situation is disturbing, as the implications will not only affect individuals, but also will cause in enormous costs for the entirefinancial system.
Therefore, it is crucial for the policymakers to understand precisely why people get involved intofinancial trouble, so that appropriate action or policy could be devised to prevent people from getting into difficulties in the future (McCarthy2011). Using representative data from the undergraduate students of public universities in Malaysia, we expect to validate on how exogenous variables such as religiosity, financial knowledge, and financial behavioural factors such as an individual’s capacity for self-control, planning, and patience are important determinants of who gets intofinancial distress.
Thus, understanding financial distress among young people is thus of critical importance for policymakers in several areas; investigating the reasons why policies on financial education introduced by government through Bank Negara are cur- rently less effective thus could suggest which policies are significant and relevant to be implemented. It can aid those who wish to devise effectivefinancial education programmes targeted to protect younger consumers so that bankruptcy cases could be reduced through improvingfinancial education. Therefore,financial knowledge among public university students cannot be taken for granted. These students need help to make soundfinancial decisions in future, and at the same time, the authority needs to realize that a“one-time or one-size-fits-all”financial education programme is likely to be ineffective in stimulatingfinancial distress for futurefinancial security for Malaysian context.
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Chapter 18
Effects of Intellectual Capital
on Micro fi nance Institutions ’ Performance
Maryam Jameelah Hashim, Adewale Abideen Adeyemi and Syed Musa Alhabshi
Abstract The survival and competitive success of microfinance institutions (MFIs) depends on their intellectual capital. The strategic management of intellectual capital provides greater contribution to the company success as compared to the strategic allocation of physical and financial resources. Ultimately, the top management is uncertain on the valuable resources processed by thefirm that will cause the success of new strategies. This is due to the fact that they do not understand the nature and value of intellectual capital, how to create, extract and optimize value and wealth through intellectual capital. Therefore, the purpose of this study is to investigate the effect of intellectual capital on the performance of MFIs. This study was conducted in the form of a survey and the respondents comprised MFIs managers who were considered to have knowledge on the internal management and involved in the development of the institutions. Data collected were tested using multiple regression analysis. The results revealed that intellectual capital as a whole has a significant effect on the performance of MFIs. However, the relationship between human capital (knowledge) and structural capital on MFIs performance is insignificant.
Keywords Intellectual capital
Microfinance institutions (MFIs) and performanceM.J. Hashim (&)A.A. AdeyemiS.M. Alhabshi
IIBF, International Islamic University, Kuala Lumpur, Malaysia e-mail: [email protected]; [email protected] A.A. Adeyemi
e-mail: [email protected] S.M. Alhabshi
e-mail: [email protected] M.J. Hashim
Universiti Teknologi MARA, Puncak Alam, Malaysia
©Springer Nature Singapore Pte Ltd. 2018
F. Noordin et al. (eds.),Proceedings of the 2nd Advances in Business Research International Conference, https://doi.org/10.1007/978-981-10-6053-3_18
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