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Financial Outcomes Of The Locus Of Control: Pls-Sem Evidence From Croatia

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  • Ana KUNDID NOVOKMET

    (Faculty of Economics, Business and Tourism, University of Split, Split, Croatia)

  • Marija VUKOVIĆ

    (Faculty of Economics, Business and Tourism, University of Split, Split, Croatia)

Abstract

Raising importance of personality traits within the financial decision-making literature inspired us to conduct a research with locus of control in the main role for achieving financial benefits in personal finance. PLS-SEM analysis was adopted using the data set of 130 Croatian citizens who took part in a questionnaire survey. We confirmed that external locus of control is detrimental to self-control, which afterwards reflects in personal finance management. To be more precise, people with less developed self-control are more prone towards compulsive buying, materialism and indebtedness. Personality traits such as locus of control are usually stable among adults. Thus, mainly self-control can be exercised and improved. That is the key message of this article for external people and various providers of financial literacy programs – change is possible and manageable principally via practicing self-control. Nevertheless, the subsequent studies could offer a more detailed insight into the interplays between locus of control, financial literacy, self-control and financial outcomes.

Suggested Citation

  • Ana KUNDID NOVOKMET & Marija VUKOVIĆ, 2024. "Financial Outcomes Of The Locus Of Control: Pls-Sem Evidence From Croatia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 19(2), pages 138-154, August.
    • Handle: RePEc:blg:journl:v:19:y:2024:i:2:p:138-154
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    References listed on IDEAS

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    4. Ani Caroline Grigion Potrich & Kelmara Mendes Vieira, 2018. "Demystifying financial literacy: a behavioral perspective analysis," Management Research Review, Emerald Group Publishing Limited, vol. 41(9), pages 1047-1068, May.
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