Article Details
  • Published Online:
    October  2024
  • Product Name:
    The IUP Journal of Accounting Research & Audit Practices
  • Product Type:
    Article
  • Product Code:
    IJARAP101024
  • Author Name:
    Sanduni Chamika Munasinghe and Shantharuby Buvanendra
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    221-250
Influence of Financial Socialization on the Financial Wellbeing of Public Sector Employees in Sri Lanka
Abstract

The paper examines the influence of financial socialization on the financial wellbeing of public sector employees in Sri Lanka, considering the moderating impact of personal financial knowledge sharing. The study is founded upon three theoretical frameworks: social cognitive theory, consumer socialization theory and social exchange theory. Employing deductive approach and quantitative methodology through surveys, the conceptual model is analyzed using structural equation modeling (SEM). The findings reveal that financial socialization plays a positive role in enhancing an individual’s financial wellbeing. The influence of financial socialization agents is particularly significant among public sector workers. Parental influence stands out as the most impactful, followed by peers, with school influence having the least effect. Moreover, statistical evidence supports the notion that personal financial knowledge sharing among colleagues independently moderates the relationship between financial socialization and financial wellbeing in a favorable manner. The outcomes offer valuable insights for various stakeholders, including government entities, policymakers and regulators, particularly in their efforts to enhance the financial wellbeing of public sector employees.

Introduction

The notion of financial wellbeing is currently in its early stages of development (Sehrawat et al., 2021). The subject matter has been examined from a multidisciplinary perspective, using various approaches across multiple dimensions in diverse contexts (Bamforth et al., 2018; and Ali et al., 2021)