THE INFLUENCE OF FINANCIAL KNOWLEDGE AND FINANCIAL SELF-

EFFICACY AMONG FEMALE AGRIBUSINESS OWNERS IN TAGUM CITY

DAVAO DEL NORTE

A Thesis Presented to
The Thesis Committee
Department of Business Administration Education
UM Tagum College, Tagum City

In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

EDIG, REYJUNE LOUIS

GERCITO, MYCA

PANTINOPLE, GALELIA MARIZ

August 2024
 Introduction

Financial self-efficacy is the ability to undertake financial-related endeavors,

especially to address specific financial situations, and achieve financial goals

(Hoffman & Plotkina, 2021, p. 853). Financial self-efficacy in theory is contingent on

the behavioral domain in financial management as a mediating role; the former

prompts a significant effect on the economic behaviors exhibited by entrepreneurs,

which are influenced by financial knowledge (Asmin et al., 2021, p. 82). Financial

self-efficacy, a key aspect of self-agency, played a significant role in student loan

repayment stress, as revealed by this study. Investigating the relationship between

self-agency, including problem-solving orientations and financial self-efficacy, and

student loan repayment stress, the study utilized data from a longitudinal survey of

855 participants, focusing on 396 individuals with student loans. After controlling for

demographic factors, the analysis revealed a significant link between financial self-

efficacy and perceived difficulty in loan repayment, with higher self-efficacy

associated with lower perceived difficulty. Conversely, a negative problem-solving

orientation was linked to greater perceived difficulty. This perceived difficulty, in turn,

directly influenced the actual difficulty of repayment and ultimately contributed to

loan-specific stress. The findings suggest the importance of financial education

programs that promote both financial self-efficacy and positive problem-solving skills

to mitigate student loan repayment stress (Shim, S., Et Al 2019).

The importance of financial self-efficacy in addressing gender inequality and

power imbalances within the realm of financial literacy is undeniable. This review

aims to expand our understanding of this critical area by synthesizing recent

research on the role of self-efficacy in relation to financial literacy and gender. We

explore how FSE is conceptualized and measured, highlighting both the strengths

and limitations of current approaches. Our analysis reveals several key areas that

require further investigation. Firstly, conceptual ambiguities within the field need to

be resolved to establish a robust theoretical foundation. Secondly, the diverse range

of financial self-efficacy measures hinders generalizability, necessitating more

validation studies. Thirdly, there is a significant lack of research that establishes

causal inferences. Lastly, few studies specifically focus on gender differences or the

sources of variation in financial self-efficacy. Addressing these issues is crucial for

advancing our understanding of financial self-efficacy and its impact on gender

equality in financial literacy (Furrebøe, E.F. Et Al., 2022). Financial self-efficacy in

shaping financial management behavior is a key focus of this study. We aim to

investigate the impact of financial literacy on financial management behavior, with

financial self-efficacy acting as a moderating factor. Our research focuses on

employees at BPJS Ketenagakerjaan Purwokerto, utilizing a simple random

sampling method to select our participants. Data analysis, conducted using

Moderated Regression Analysis in SPSS, reveals that financial literacy has a

positive influence on financial management behavior. Furthermore, our findings

indicate that financial self-efficacy moderates the relationship between financial

literacy and financial management behavior (Bari, A.F., Et Al,. 2020).

Financial knowledge, along with confidence, learning capacity, education, and

sociodemographic factors, were examined in this study to understand their influence

on financial behavior. Using a structural equation model, we analyzed the

relationships between these variables to gain a deeper understanding of the factors

contributing to poor financial behavior among a large Canadian sample. Our findings

highlight the crucial role of financial confidence in shaping financial behavior, with
learning capacity acting as a key driver of financial confidence. These results

underscore the need for significant improvements in financial education, with a

particular focus on enhancing financial confidence and individual learning capacity.

This approach can help mitigate existing financial difficulties, prevent future

problems, and empower individuals to develop and implement strategies for

achieving their financial goals. Our study contributes to the existing body of research

on financial literacy by demonstrating the influence of learning capacity on both

financial confidence and financial behavior (Morris, T., Et. Al., 2022). Financial

knowledge is a key factor in financial well-being, and this meta-analysis of 76

randomized experiments with over 160,000 participants provides strong evidence

that financial education programs have a positive impact on financial knowledge and

subsequent behaviors. These effects are both statistically significant and

economically meaningful, comparable to other educational interventions. Our

findings are robust even after accounting for publication bias, and we also explore

the cost-effectiveness of these programs (Kaiser, T., Et. Al., 2022)

The research gap in this study lies in the limited understanding of the

influence of financial knowledge and financial self-efficacy on the business

performance of female agribusiness owners in Tagum City, Davao del Norte. While

research has explored the impact of financial literacy on various aspects of business,

the specific connection between financial knowledge, self-efficacy, and the success

of female agribusiness owners in this region remains understudied. This gap is

significant because female agribusiness owners in Tagum City may face unique

challenges and opportunities related to financial management, influencing their

ability to thrive and achieve their business goals. Addressing this gap could provide

valuable insights for developing targeted programs to enhance financial literacy,

empower female agribusiness owners, and contribute to their economic success.

Very few studies discuss psychological state as a plausible determinant of economic

decision-making; demographic factors was one of the themes identified in Evelyn's

(2023, p. 1183) literature review, wherein financial independence or autonomy is

influenced by demographic characteristics, which are the following: (1) age, (2)

gender, (3) income, and (4) educational attainment. This is consistent to the findings

of Anthony et al. (2022, p. 83-88), wherein the paper posits that financial

socialization is influenced by the parental upbringing of an individual that starts as

early into their formative years (i.e., household environment, parents' daily spending,

and other financial-related behaviors), hence programming their financial

management skills. Meanwhile, this paper has already established research

parameters, there's room to introduce theoretical implications on how the origins of

behavior is rooted from observational experiences (Bandura, 1977, p. 24-25). Since

the limitations of this study is set to the female demographic, wealth disparities

between men and women are not explored in-depth, and the nuances of financial

behaviors will be limited since both genders have different incidences of product and

service consumption (Chong et al., 2021, p. 911). In the study of Anastasia and

Lestaritio (2020, p. 179), women take on financial obligations according to the

degree of self-efficacy they possess, and men tend to spend however they want due

to having lesser financial risks. Furthermore, this study aims to address the research

gaps as far as the scope and delimitations would allow, and acknowledge the biases

that may potentially be involved.

This study could contribute invaluable and actionable insights to the

existing status quo of agribusiness owners within Davao del Norte, as well as

the entire agribusiness sector in Davao Region at large. Certain measures and
interventions could be taken for potential setbacks and challenges for

agribusiness owners, especially with the implication that women are not on

equal footing with their male counterparts in terms of opportunities and access

to financial education. According to the various literatures identified in this

paper, it is imperative that financial empowerment and financial education is

attained in order to leverage financial literacy, which opens doors for

entrepreneurial opportunities and ventures in the agribusiness sector. Hence,

this study aims to analyze the influence of both financial knowledge and

financial self-efficacy among agribusiness owners, as well as to explore the

nuances of the factors involved. Each indicator consisted of five (5) statements

to be answered which have a mother tongue language translation for better

understanding. To validate the contents of the research instrument, it was

presented first to the group of experts for review before conducting the survey.

Moreover, the five-point Likert scale is used as follows:

This table provides a framework for interpreting the levels of financial

knowledge and financial self-efficacy among female agribusiness owners in

Tagum City, Davao del Norte. A score between 4.20 and 5.00 indicates a very

high level of financial knowledge and self-efficacy, suggesting a strong

understanding of financial concepts and a high degree of confidence in their

financial abilities. A score between 3.40 and 4.19 suggests a good level of

financial knowledge and a high degree of confidence, while a score between

2.60 and 3.39 represents a moderate level, indicating a need for further

development in these areas. Scores between 1.80 and 2.59 indicate a low level

of financial knowledge and self-efficacy, highlighting a need for significant

improvement. Finally, scores between 1.00 and 1.79 represent a very low level,
 suggesting a critical need for targeted interventions to address these gaps and

empower these women with the financial knowledge and confidence they need

to succeed.

Research Objectives

This research is conducted to determine and analyze the influences of

Financial Knowledge (FK) and Financial Self-Efficacy (FSE) among female

agribusiness owners in Tagum City, Davao del Norte. The following objectives are

sought to seek answers according to each indicator with respect to the independent

and dependent variables identified in this study. The independent variable of the

study, Financial Knowledge (FK), aims to identify the level of financial knowledge in

terms of: (1) money management, (2) credit management, (3) saving management,

(4) investment management, and (5) risk management. Meanwhile, the dependent

variable of the study, Financial Self-Efficacy (FSE), aims to identify the level of

financial knowledge in terms of: (1) confidence in financial planning, (2) financial

decision-making, (3) solving financial problems, and (4) managing finances.

Hypothesis

In order to interpret the empirical data to be gathered in this study, the

proponents of this research constructed a hypothesis to explore the correlation and

possible outliers of the variables at 0.05 significance level. The null hypothesis of this

study is as follows:

H0: There is no relationship between Financial Knowledge (FK) and Financial

Self-Efficacy (FSE) among female agribusiness owners in Tagum City, Davao del

Norte.
 METHOD

This chapter discusses the foundational methodology to be employed during the

entire conduct of the study. Processes are to be undertaken to ensure that the

proponents of this paper follow a logical and systematic process of addressing the

deliverables of this research.

Research Participants

The respondents should be a resident of Tagum City, Davao del Norte. The

said respondents should be female, and are currently agribusiness owners operating

within Tagum City. This includes every Barangay in Tagum City, Davao del Norte,

and the respondent should be a resident of more than five (5) years in the

established locale of the study. The research study includes the participation of

individuals and other stakeholders as respondents as well. The sampling method in

this research involves the utilization of random sampling to pick the participants,

given that they are eligible according to the established criteria. A random sample

group will be chosen from the pool of survey respondents or the population group to

be included in the study, and the sample size of the study would be limited to 100

respondents. If the eligibility of the respondent is not otherwise stated on the criteria,

they are automatically grounds for exclusion to keep the survey data consistent to

the research objectives.

Research Instrument

A modified and adopted questionnaire based on the measurement models

from the studies of Handayani et al. (2023, p. 282) and Dewi (2023, p. 605) will be

administered through online and physical surveys in order to gain actionable insights
regarding the influences of Financial Knowledge (FK) and Financial Self-Efficacy

(FSE) among female agribusiness owners of Tagum CIty, Davao del Norte. In order

to determine the reliability of the research instrument’s scale, Cronbach alpha

(denoted by α) is adapted to measure the internal consistency of the survey items to

be administered and account for its validity. With that said, the questionnaire may

still be subject for validation and approval until further notice before the proponents

of this study could proceed further into the data collection process.

Design and Procedure

This study utilizes a non-experimental quantitative research approach with

descriptive correlational methods to investigate the relationship between Financial

Knowledge (FK) and Financial Self-Efficacy – or lack thereof. Implementing this

design will explore and investigate the implications of each indicator from both

variables, Financial Knowledge (FK) and Financial Self-Efficacy (FSE), and draw

insights from the results. Since the total population of female agribusiness owners in

Tagum City, Davao del Norte remains indeterminate, the proponents have

established a fixed sample size of 100. The proponents of this study would

administer an adopted questionnaire by integrating two existing measurement

models from the studies of Handayani et al. (2023, p. 282) and Dewi (2023, p. 605).

Prior to the data collection, the issuance of a duly-approved ethical approval in order

to protect the participants’ data confidentiality, pursuant to the Data Privacy Act of

2012. This is to ensure that the participants fully consent to the involvement of the

study, and they can opt out from the data collection process at any time and

expunge the data collected. Descriptive statistics is the statistical method to be

utilized when analyzing the data collected, which would be collated into: (1) mean, to
determine the mean scores of every survey items; (2) frequencies, to determine the

frequency of responses per indicators; (3) percentages, to determine the rate of each

mean scores over the total scores per indicator; and lastly (4) standard deviation, to

determine the consistency or dispersion of data collected. In addition, the study

would also make use of inferential statistics, particularly the multiple regression

analysis to measure the strength of relationship between Financial Knowledge (FK)

and Financial Self-Efficacy (FSE).

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