A Good Cop is Never Cold or Hungry: Antecedents and Consequences of Financial Literacy among Members of the Royal Malaysia Police

Abstract

Personal financial management is one of the main priorities of the citizens across the globe and this is of no exception to the members of the Royal Malaysia Police. This study investigates the antecedents and consequences of financial literacy among police personnel. The study used life cycle theory, theory of planned behaviour, theory of mental accounting and stress and coping theory as theoretical lens. This study adopts a positivist paradigm by conducting 400 self-administered questionnaire surveys in Malaysia. The multivariate analysis reveals that other than socio-demographic characteristics, the financial literacy is also influenced by financial stress, financial socialisation and personal motivation. Further analysis has confirmed positive associations between financial literacy and both financial behaviours and financial planning. The results provide evidence to support the tested theories except the life-cycle theory. The research findings should contribute to the literature on personal finance, besides assisting the policymakers in formulating relevant policies to improve the financial literacy among the police personnel. The research findings should help the policymakers and police top brass in devising and implementing programmes to ensure enhanced personal financial management for police personnel in accordance with the government's aspiration as contained in the National Strategy for Financial Literacy 2019-2023.