Open AccessDoes Mental Accounting Play an Important Role in Young Entrepreneurs? Studies on Entrepreneurship Education
Author(s) -
Wirawan Ed Radianto,
Ika Salim,
Sonata Christian,
Tommy Christian Efrata,
Liliana Dewi
Publication year - 2022
Publication title -
journal of educational and social research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.162
H-Index - 5
eISSN - 2239-978X
pISSN - 2240-0524
DOI - 10.36941/jesr-2022-0040
Subject(s) - mindset , financial accounting , finance , accounting , accounting management , mental accounting , entrepreneurship , psychology , accounting information system , business , philosophy , epistemology
The purpose of this study was to examine the role of mental accounting, financial attitude, and financial self-efficacy on financial behavior. Furthermore, this study examines the effect of financial knowledge on mental accounting, financial attitude, and financial self-efficacy. This study uses 400 student respondents who have businesses. Data analysis using PLS. The results show that financial behavior is influenced by mental accounting, financial attitude, and financial self-efficacy. However, financial knowledge did not increase mental accounting and financial self-efficacy. This study proves that mental accounting is very important for student success in business. Mental accounting controls the mindset of young entrepreneurs in managing finances so that they have a positive financial attitude, good financial self-efficacy, and effective financial behavior. From this study, we believe that mental accounting plays an important role for young entrepreneurs in financial decision-making. However, financial knowledge does not necessarily influence the mental accounting mindset.
Received: 13 October 2021 / Accepted: 24 December 2021 / Published: 5 March 2022