Analyzing the Factors Influencing Lecturers’ Financial Satisfaction in Indonesia

Abstract

This study aims to investigate and find empirical evidence about the effect of Financial Literacy on Financial Satisfaction where Financial Risk Tolerance and Financial Capabilities as mediation variables in Lecturers who are active in Universities throughout Indonesia. The research design is descriptive quantitative. The objects of this research are Financial Literacy, Financial Risk Tolerance, Financial Capability, and Financial Satisfaction. The sampling technique used is purposive random sampling. Research data is primary data obtained from the distribution of questionnaires to respondents. Data analysis was carried out with the help of SmartPLS software, by performing 2 categories of tests, namely the outer model test and the inner model test. The test results show that Financial Literacy, Financial Capability has a direct effect on Financial Satisfaction, but Financial Risk Tolerance does not effect on Financial Satisfaction. The results of statistical tests also show that Financial Literacy affects Financial Capability and Financial Risk Tolerance. The test results also show that Financial Capability can mediate the effect of Financial Literacy on Financial Satisfaction, but Financial Risk Tolerance is unable to mediate the influence of Financial Literacy on Financial Satisfaction.