The Influence of Financial Literacy, Love of Money Attitude, and Financial Report Knowledge on The Financial Management Behavior of MSME Actors In Jepara City

Abstract

In running their business, most MSMEs only focus on their operational activities and do not pay much attention to the financial management process. Most MSME tend not to think about accounting-based financial management, which results in the low guality of their business financial reports, even though this financial management behavior is very important in determining the sustainability and success of their business. This research aims to determine the influence of financial literacy, love of money attitudes, and knowledge of financial reports on the financial management behavior of MSMEs in Jepara City. The population in this study was 80,966 MSMEs in Jepara Regency. Sampling used the Convinience Sampling technigue where the researcher chose samples based on the ease of taking/selecting samples so that a sample of 50 people was obtained. There are four variables in this research, namely Financial Literacy, Love of Money Attitude and Knowledge of Financial Reports and Financial Management Behavior. The data collection method used was to make observations and then distribute guestionnaires directly to research respondents. The analytical methods used are classical assumption tests, multiple linear regression tests and hypothesis tests. The results of this research show that financial literacy has a significant effect on the financial management behavior of MSME actors with a significant value of 0.028 «0.05. The love of money attitude has a significant effect on the financial management behavior of MSME players with a significant value of 0.002 «0.05. Knowledge of financial reports has a significant effect on the financial management behavior of MSME players with a significant value of 0.011 « 0.05. Suggestions for MSME players in the city of Jepara to expand their knowledge about financial reports and not only know but also apply them by making financial reports for their business. And for future researchers to add other independent Variables such as gender, locus of control, HR competency and so on.