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This study aims to identify the factors determining financial vulnerability among Malaysia households. A questionnaire-based survey was conducted using multi-stage sampling technique. In total, 578 useable responses were collected and data were analyzed using partial least square structural equation modeling. The empirical results revealed that i) financial literacy positively influenced financial behavior, ii) financial behavior negatively influenced financial vulnerability, iii) financial behavior mediates the relationship between financial literacy and financial vulnerability, iv) gender moderates the relationship between financial behavior and financial vulnerability. This study enriches the theoretical foundations of financial vulnerability through the exploration of mediation and moderation mechanism. Implications and future research suggestions are discussed. [ABSTRACT FROM AUTHOR]

The level of Malaysian household debt remains high, currently among the highest in Asia, raising concerns about its sustainability. This article analyzes the prevalence of financial vulnerability, measured by consumers' inability to meet their household needs, to cope with unexpected expenses, and to survive in the event of a crisis. Analysis of a dataset of 902 respondents generally suggests that the risk of financial vulnerability in the event of economic or financial shocks is growing. In addition, in an ordered probit model, the significant determinants of financial vulnerability are income level, marital status, age, level of education, and financial behavior in money management. Those who are most financially vulnerable are younger people who have a lower education level and whose financial behavior leads to poor money management. [ABSTRACT FROM AUTHOR]

Household financial vulnerability is an important area of research in household economic studies. Hence, a number of studies have attempted to identify the factors that make households vulnerable to financial shocks. In Malaysia, the research is scant on this topic especially when it comes to low-income households. Therefore, the study aims to identify the macroeconomic factors that make the household vulnerable to financial shocks. For this purpose, the study uses the autoregressive distributed lag modelling approach as an estimation technique. The results revealed that household debt, prices of goods, interest rate and unemployment have a positive long-run relationship with household financial vulnerability while income has a negative relationship. Further analysis confirms that these predictors of financial vulnerability also affect the low-income groups. This study would be of interest to the academicians and policy makers in the area of household economics. [ABSTRACT FROM AUTHOR]

This paper aims to analyse factors affecting financial stress among the Bottom 40 Percent (B40) group of Malaysian households, reflecting overall financial well-being. Data were collected through questionnaires from 1008 respondents across five major regions in Malaysia. The data were analysed using Exploratory Factor Analysis (EFA) and Partial Least Squares-Structural Equation Modelling (PLS-SEM). This study provides evidence that financial behaviour, financial vulnerability (debt and income), and locus of control (luck and self-confidence) significantly affect financial stress among B40 households. The results show a significantly positive relationship between financial stress with financial vulnerability (debt and income) and locus of control (self-confidence). On the contrary, financial behaviour and locus of control (luck) show a significant negative relationship with financial stress. The result also indicates that financial stress affects financial well-being. Overall, the findings indicate that policy-makers should invent more effective and substantial stimulus packages or other measures to reduce the financial burden on B40 households. The findings could eventually provide insights for future research to delve into the social impact of financial stress. This study also has established a valid and reliable instrument to measure financial stress involving B40 households in Malaysia that eventually reflects the financial well-being of this group of people.