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Financial Resilience

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GR:EEN Project working paper

Christopher Holmes

james brassett , Christopher Holmes

The article develops a critical analysis of the politics of financial resilience as an increasingly prevalent discourse of economic policy and practice. Against existing critiques of resilience which focus on the neoliberal rationalities and subjectivities that it (apparently) perpetuates, we argue that resilience per se does not—of necessity—infer any particular form of governance or subjectivity. Instead, resilience can be thought of as a sphere of political engagement. An emphasis on system, structure, and the relations between actors over time gives financial resilience a productive ambiguity: neither structure nor subject is ever fully defined and thus remains open. To this end, we engage the Bank of England's recent turn to complexity modeling and its correlative, somewhat metaphorical, ethos of 'clear thinking' in 'complex times'. This idea of complexity foregrounds the 'unknown' through positing the unpredictability of system-wide events; however, ensuing attempts to 'model complexity' entail a closure, rendering uncertainty 'known' in particular (and limited) ways. Indeed, we identify a general disconnect between the radical rhetoric of resilience agendas that emphasize complexity and the relative banality of resulting policy advice: self-regulation, capital ratios, and so on. We then explore how a focus on the 'unknown' can also give financial resilience an open quality, emphasizing the role of imagination and the diversity of agency. Put simply, if financial governance must be imagined, then it can be imagined differently. We therefore examine a set of everyday attempts to use the openness of resilience/complexity, in order to imagine finance in more democratic or communitarian terms. In particular, market formations such as local banking, peer lending, and wider attempts to politicize financial regulation through documentaries like Bank of Dave play on the productive ambiguities of financial resilience in critical ways. Such agendas do not exhaust or solve the dilemmas identified, but do represent a creative set of attempts to engage the politics of finance in inclusive, participatory, and reciprocal terms.

Review of International Studies

Anthony Mckeown

This article critically examines recent works on resilience. In so doing, it argues that rather than representing some radical rupture with current practices heralding the dawn of a new era, as David Chandler claims, the emphasis on individuals as resilient subjects simply represents a new phase in the neoliberal shift from the state as provider to state as enabler and promoter of self-reliance. Indeed, our present preoccupation with complexity, uncertainty, and resilience can best be understood as reflecting the consequences of neoliberal policies Moreover, the article further argues that there is an attendant danger that resilience thinking may further promote neoliberal forms of governmentality and encourage a degree of political passivity. The emphasis on resilience is in danger of depoliticising highly political choices, shifting attention toward ex-post policies of survival and recovery rather than challenging the current economic order and resisting the further imposition of ...

Jeremy Walker

Seattle University Law Review

Joanna Gray

Jan Krahnen

In this paper we propose a way forward towards increased financial resilience in times of growing disagreement concerning open borders, free trade and global regulatory standards. In light of these concerns, financial resilience remains a highly valued policy objective. We wish to contribute by suggesting an agenda of concrete, do-able steps supporting an enhanced level of resilience, combined with a deeper understanding of its relevance in the public domain. First, remove inconsistencies across regulatory rules and territorial regimes, and ensure their credibility concerning implementation. Second, discourage the use of financial regulatory standards as means of international competition. Third, give more weight to pedagogically explaining the established regulatory standards in public, to strengthen their societal backing.

Luca Mavelli

David Korowicz

There is a growing gap between the risk – understood as likelihood times impact – of catastrophic systemic failure in complex society, and societal understanding and preparedness. This white paper outlines why risk needs to be reconsidered, the extent of societies capacity to respond, and presents a risk posture that links our transforming risk environment with contingency planning and preparedness.

The Geneva Initiative

This white paper looks at the interactions of increasingly vulnerable interdependent societal systems (the grid, supply-chains, behavioural coordination, financial systems) and growing stressors (environmental such as climate change and resource constraints, and internal, such as indebtedness and fraying social trust). It argues we are locked into dynamics that will increase the likelihood of large-scale systemic failure. It looks at government acknowledgment and exercises related to catastrophic systemic failure. It presents the elements of a risk posture linking growing risk and the potential for contingency planning.

International Journal of Disaster Risk Reduction

Jack Jacometti

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The Prevalence and Drivers of Financial Resilience Among Adults

This paper uses nationally representative 2014 and 2017 data from 144 economies worldwide to examine the ability of adult populations to withstand a moderate and unexpected financial disruption. Specifically, the paper examines the association of individual and country level factors with financial resilience, defined as people’s self-reported ability to access funds for an emergency within one month. Three inter-connected questions are addressed:

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Financial Literacy and Financial Resilience: Evidence from Around the World

We measure financial literacy using questions assessing basic knowledge of four fundamental concepts in financial decision making: knowledge of interest rates, interest compounding, inflation, and risk diversification. Worldwide, just one in three adults are financially literate — that is, they know at least three out of the four financial concepts. Women, poor adults, and lower educated respondents are more likely to suffer from gaps in financial knowledge. This is true not only in developing countries but also in countries with well-developed financial markets. Relatively low financial literacy levels exacerbate consumer and financial market risks as increasingly complex financial instruments enter the market. Credit products, many of which carry high interest rates and complex terms and conditions, are becoming more readily available. Yet only around half of adults in major emerging countries who use a credit card or borrow from a financial institution are financially literate. We discuss policies to protect borrowers against risks and encourage account holders to save.

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Building up financial literacy and financial resilience

• Published: 31 July 2020
• Volume 20 , pages 181–187, ( 2021 )

Cite this article

• Annamaria Lusardi 1 , 2 ,
• Andrea Hasler 3 &
• Paul J. Yakoboski 4  

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This article uses data from the 2020 TIAA Institute-GFLEC Personal Finance (P-Fin) Index to show that many American families were financially fragile well before the COVID-19 pandemic hit the U.S. economy. Financial fragility is particularly severe among specific demographic groups, such as African-Americans and those with low income. The article also shows that financial fragility is strongly linked to financial literacy and that many Americans are ill-equipped to deal with the financial decisions needed to navigate through a financial crisis. Suggestions are provided to deal with personal finance decisions in times of emergency.

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In January 2020, the unemployment rate in the United States was as low as 3.6 percent, and the stock market was reaching record highs. Mild concerns about cases of an unknown virus notwithstanding, the economy was firing on all cylinders. It was amidst this backdrop that the Global Financial Literacy Excellence Center (GFLEC) and the TIAA Institute conducted the 2020 Personal Finance (P-Fin) Index, an annual survey to assess knowledge and understanding which enable sound financial decision making and effective management of personal finances. A long term project that started in 2017, the P-Fin Index measures financial literacy with 28 questions covering eight functional areas, from earning, consuming, saving, investing, and borrowing/managing debt, to insuring, comprehending risk, and go-to information sources. The survey also collects demographic data, as well as indicators of financial wellness, providing insights into the state of Americans’ personal finances. The results of the survey offer several suggestions to assess the potential effects of the current economic crisis. In the next section, we describe those findings and how they can be used to help families become more financially resilient.

1 Financial literacy and preparedness before the COVID-19 crisis

A primary takeaway from the P-Fin Index data is that financial literacy in the United States is quite low. Footnote 1 In 2017, respondents answered an average of 49 percent of the financial literacy questions correctly. Financial literacy has improved only slightly since then, with respondents answering 52 percent of the questions correctly in 2020, which is still a failing grade. Unfortunately, comprehending risk and insuring are the functional areas where knowledge is lowest, which is what matters most in a time of economic turmoil. While respondents could answer 64 percent of the borrowing questions correctly, they correctly answered only 47 percent of the insuring questions and an abysmal 37 percent of the questions on risk. Without a good financial knowledge foundation, it can be difficult to make sound financial decisions in ordinary times. In extraordinary times like the current ones, where risk and uncertainty are amplified, it is even more difficult. As Fig. 1 shows, while knowledge in some topics improved slightly over time, it is not the case for the area where the knowledge is lowest, i.e., comprehending risk.

Source 2020 TIAA Institute-GFLEC Personal Finance Index

Financial Literacy by Functional Area in 2017 and 2020.

Also troublesome is the fact that financial literacy tends to be lower among females, lower-income individuals, the unemployed or disabled, the young, and the less educated. Unfortunately, many of these groups are often hit the hardest by economic crises, and lower levels of financial literacy may exacerbate these impacts.

Low financial literacy heading into the pandemic is only part of the picture. The P-Fin Index also indicated that a substantial proportion of the population was already financially vulnerable, even when the economy was doing well. We turn next to indicators of financial fragility and financial resilience, terms that were coined right after the financial crisis of 2007–2008. Footnote 2 To measure whether a respondent is financially fragile, we included the following question in the survey: How confident are you that you could come up with $2,000 if an unexpected need arose within the next month? The possible answers to this question are : I am certain I could come up with the full $2,000; I could probably come up with $2,000; I could probably not come up with $2,000; I am certain I could not come up with $2,000; Don’t know . The wording of this question is designed to assess whether respondents could manage a medium-size financial shock. Note that the question does not ask if respondents have $2,000 in cash in the bank; respondents are asked whether they could “come up” with such an amount, or, in other words, whether they can access resources in time of need. If respondents answer that they “could probably not” or “certainly not” come up with the money, we classified them as financially fragile. In January 2020, we found that 27 percent of respondents were financially fragile (Fig. 2 ). If such a sizeable proportion of Americans had low confidence in their ability to access $2,000 when the economy was strong, it should come as no surprise that so many families are under financial distress after losing their paychecks. Without a buffer stock of savings or access to funds, many Americans will have a difficult time navigating through the current crisis.

Financial Health of Americans in 2020.

Other indicators of financial resilience point in the same direction (see Fig. 2 ). Well before the pandemic hit the economy, one third of respondents in the P-Fin Index reported that they found it very or somewhat difficult to make ends meet. Similarly, 31 percent of respondents felt their debt payments prevent them from adequately addressing other financial priorities, and 38 percent reported that they do not save regularly for retirement. These statistics suggest that even with full employment, a large proportion of Americans was under financial stress and/or unable to save. Being furloughed or laid off during the pandemic will push many families over the edge.

Yet again, disadvantaged groups are more at risk to be financially fragile. According to the 2020 P-Fin Index, about half of African-Americans and almost one third of women were considered financially fragile, compared to only 21 percent of white respondents and 23 percent of men, confirming previous findings from P-Fin data focusing on African-Americans. Footnote 3 Those with less education and lower incomes were also at higher risk of being financially fragile. These are precisely the groups that have been hit the hardest by the COVID-19 crisis. Focusing on these groups is an urgent priority, if we are to mitigate the effects of this crisis.

The 2020 P-Fin Index data shows that financial resilience is strongly associated with financial literacy (see Fig. 3 ). While only about one in five of the least financially literate respondents (those who answered less than 26 percent of the P-Fin questions correctly) claimed that they could come up with $2,000 in one month, over three fourths of the most financially literate (those who answered 76 percent or more of the P-Fin questions correctly) were able to face such a shock. Similarly, increased financial literacy is associated with a lower likelihood of feeling constrained by debt. Less than one third of the least financially literate respondents were unconstrained by their debt, compared to two thirds of the most financially literate respondents.

Financial Resilience by Financial Literacy in 2020.

Financial literacy is also correlated with planning for the future, as the financially literate are more likely to save and plan for retirement (see Fig. 3 ). Just one third of the least financially literate non-retirees regularly save for retirement (vs. 83 percent of the most financially literate non-retirees), and only one fifth of them have tried to determine how much they need to save for retirement (vs. 60 percent of the most financially literate non-retirees).

Previous studies show that the relationship between financial literacy and financial outcomes tends to hold even after controlling for confounding variables, such as income and education. Footnote 4 Thus, the data shows us that with the economy at full employment, those with less financial knowledge are already at risk of falling into financial distress and this can have consequences both in the short term and the long term.

Today, of course, the health and personal finances of Americans have been ravaged by COVID-19. The official unemployment rate soared to 14.7 percent in April, the highest since the Great Depression; the unemployment rate has declined somewhat in subsequent months but remains above 10 percent. The economic fallout of the pandemic has exposed and exacerbated the financial fragility of millions of Americans, as many find that their precautionary savings are insufficient to cover their bills in the absence of a paycheck. This is a painful situation but not a surprising one considering the proportion of people that demonstrated a lack of financial resilience before the crisis.

As a society, we now know that we will need to better prepare for the next crisis. An important step in building a more resilient society is to make financial literacy a reality for all. Financial literacy programs should also diversify content to include understanding and managing risk, as well as developing financial resiliency. Direct financial assistance from the government is clearly part of the solution to this crisis, but in today’s economy, people are expected to make many financial decisions affecting their finances now and far into the future. The cost of widespread financially illiteracy to individuals and society is simply too high for us to choose not to invest in financial education.

2 A resource hub to manage personal finances in times of a crisis

Given these findings and the difficulty in managing finances during a pandemic, providing financial advice could offer some help. Guided by the data collected via the P-Fin Index since 2017, GFLEC has built a resource hub for people seeking information and financial advice during this crisis. It is available here: https://gflec.org/education/financialresilience/ , and it provides ten suggestions for managing money during this pandemic as well as links to government, nonprofit, and media articles to help people through these turbulent times. The resources included can help users, for example, to create a budget, learn how to rebuild savings, monitor their credit, manage debt, and use online technology to make financial decisions.

Also included is a wealth of information on government policies enacted in response to the pandemic, including stimulus checks, lower interest rates, and forbearance options. Each of the suggestions is shown as a snapshot in Fig. 4 , and the resources provided are being updated on a regular basis. It is our hope that these resources and strategies will provide some help and information for people who are overwhelmed by the economic fallout of this crisis and do not know where to turn for assistance.

GFLEC Financial Resilience Hub

For details about the survey and the findings, see Yakoboski et al. ( 2020 ).

See Lusardi et al. ( 2011 ).

See Yakoboski et al. ( 2019 ).

See Lusardi and Mitchell ( 2014 ).

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Yakoboski P, Lusardi A, Hasler A (2019) Financial literacy and wellness among African Americans. New insights from the Personal Finance (P-Fin) Index. TIAA Institute and the Global Financial Literacy Excellence Center Special Report (October 2019)

Yakoboski P, Lusardi A, Hasler A (2020) The 2020 TIAA Institute-GFLEC Personal Finance Index. Many Do Not Know What They Do and Do Not Know. TIAA Institute and the Global Financial Literacy Excellence Center Special Report (April 2020)

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Acknowledgements

We thank Nikhil Yagnik for excellent research assistance. All errors are our own. The TIAA Institute-GFLEC Personal Finance Index is not a publicly available dataset.

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Paul J. Yakoboski

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Lusardi, A., Hasler, A. & Yakoboski, P.J. Building up financial literacy and financial resilience. Mind Soc 20 , 181–187 (2021). https://doi.org/10.1007/s11299-020-00246-0

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Issue Date : November 2021

DOI : https://doi.org/10.1007/s11299-020-00246-0

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Determinants of financial resilience: insights from an emerging economy

Fazelina sahul hamid.

1 Bristol Business School, University of the West of England, BS16 1QY Bristol, United Kingdom

Yiing Jia Loke

2 School of Social Science, Universiti Sains Malaysia, 11800 George Town, Penang Malaysia

Phaik Nie Chin

3 Graduate Business School, Universiti Sains Malaysia, 11800 George Town, Penang Malaysia

Associated Data

We would like to thank Bank Negara Malaysia for providing the access to the Ficancial Capability and Inclusion (FCI) Demand Side Survey Data of 2018. The authors have been given access to Malaysian Financial Capability and Inclusion Demand Side Survey Data by the Central Bank of Malaysia (Bank Negara Malaysia).

The Organisation for Economic Co-operation and Development Financial Literacy Survey of 2018 response is used to study the impact of financial knowledge, financial inclusion, and socio-demographic characteristics on financial resilience. The measurement of financial resilience considers elements related to keeping control of money, taking care of expenditures, having a financial cushion, handling financial shortfall or stress, and having financial planning. Using a sample of 3395 individuals across Malaysia, we find that greater financial knowledge is associated with the probability of being financially resilient. Greater financial inclusion in terms of having more bank accounts and holding more financial products is linked to the probability of being financially resilient. We also find that financial resilience varies across certain socio-demographic characteristics. Implications of the findings are discussed.

Introduction

Research related to the financial situation of households has gained momentum since the worsening of economic conditions in the recent years. Increasingly, more individuals are negatively affected during these challenging times. The recent Organisation for Economic Co-operation and Development (OECD) survey on 125,787 adults in twenty-six countries shows a worrying trend (OECD 2020a , b ). Almost a third of the respondents only have savings that can last them for a week and almost half of the respondents acknowledge that they are concerned about ability in meeting their everyday living expenses. This shows that large number of individuals within many economies have limited ability in facing financial challenges. Lack of financial resilience do not just affect the households, but it also has a bearing on the economy at large. Many regulators and policy makers across the globe are concerned about it as less resilient individuals will have a greater tendency to rely on state for handouts. Moreover, lower financial resilience also may affect the overall stability of the financial system.

Having financial resilience is one of the major contributor to financial wellbeing (Russell et al. 2020 ). Financial resilience relates to individuals’ ability in coping with financial shock or recovering from financial difficulties (Mcknight and Rucci 2020 ). Individuals often face challenges in dealing with unexpected shocks such as illness, death of a family member, job loss or natural disaster. Individuals who have planned their finances well would rely on their savings during the difficult times. Alternatively, they may borrow money from financial institutions, family, or friends. Some may also rely on insurance payouts. Individuals who are not able to cope with financial challenges are classified as financially vulnerable (Lusardi et al. 2021 ).

This paper aims to investigate financial resilience in the context of an emerging economy. In doing so, it explores the multidimensional nature of the construct. Malaysia is chosen as it is one of the countries that is categorised as an upper middle-income nation. Absolute poverty eradication is not the major concern of the policy makers in the country as it has moved higher in the economic ladder. However, relative poverty remains a major issue that requires attention. The households in Malaysia face various types of financial challenges. The household debt to Gross National Product (GDP) of 93.4 percent in 2020 is the highest in the region. A higher debt level raises individuals’ vulnerability to adverse shock (Jappelli et al. 2013 ). Increasingly more Malaysians, especially those living in the urban areas, are struggling with rising cost of living. World Bank ( 2019 ) reports that there is a high degree of unaffordability among the low-income and middle-income households. Additionally, the report also states that household savings in Malaysia is low compared to OECD countries. These suggest that studying financial resilience from the context of an emerging economy like Malaysia is very relevant and timely as it can provide a different perspective about the topic.

In studying the state of financial resilience in Malaysia, this paper takes into consideration of the five components of financial resilience proposed by OECD ( 2020a ; b ) 1 which includes elements related keeping control of money, taking care of expenditures, having a financial cushion, handling financial shortfall or stress and having a financial planning. These components enable us to identify the level of resilience among individuals by considering various aspects of personal financial management that are important for the financial wellbeing of individuals. We draw conclusion using the Organisation for Economic Co-operation and Development (International Network on Financial Education) Financial Literacy Survey. The 2018 OECD (INFE) Financial Literacy survey response is used to analyse financial resilience among Malaysians. Implications for research and policy are then presented.

This paper is organised as follows. “ Literature review ” section includes the literature review. “ Data and methodology ” section describes the methodology and the data used in this study. “ Regression results ” section presents the results while “ Discussion and conclusion ” section presents the discussion and conclusion of the study. The final section provides the implications of the findings.

Literature review

Financial resilience is one of the aspects of resilience that has been investigated in the literature. The earlier study by Lusardi et al. ( 2011 ) has defined financial resilience as the individuals’ ability to raise emergency funds from various sources when needed. The theoretical background of precautionary motive can be derived from the Life-Cycle Hypothesis model of consumption and savings. This theory postulates that individuals save to smooth consumption over their lifetime. Modigliani and Brumberg ( 1954 ) postulates that savings enable individuals to face emergencies that may either arise due to a temporary reduction in income or unexpected increase in expenses. In contrast, Muir et al. ( 2016 ) and Salignac et al. ( 2019 ) define financial resilience as the ability of individuals in relying on their internal and external resources during adverse shock. The internal resource refers to individuals’ ability in managing their finances by saving and taking care or their expenses, while external resource refers to the reliance on family, friends, or other form of social support during a financial shock.

Salignac et al. ( 2019 ) argue that focusing only on the individual’s ability in managing financial shock is not sufficient as it takes into consideration of the other aspects such as context, structures and supports. They develop a framework that helps us understand financial resilience from the viewpoint of financial inclusion. Their framework incorporates four interconnected factors related to economic resources; financial products and services; financial knowledge and behaviour and social capital. Similarly, Goyal et al. ( 2021 ) incorporated individuals reliance on both internal and external resources in studying financial resilience among Indians during the COVID-19 pandemic.

Meanwhile, OECD ( 2020a ; b ) conceptualisation of financial resilience incorporates elements related to keeping control of money, taking care of expenditures, having a financial cushion, handling financial shortfall or stress, having a financial planning and being aware of fraud. This conceptualisation of financial resilience corresponds mainly to the individual’s ability in assessing and using internal resources when facing financial challenges. These elements mostly relate to the economic resource factor in the study by Salignac et al. ( 2019 ).

Kass-Hanna et al. ( 2021 ) and Lusardi et al. ( 2021 ) studied the role of financial literacy in influencing financial resilience. Kass-Hanna et al. ( 2021 ) find that higher financial literacy is linked to more saving, more borrowing, better risk management behaviours related to having life and health insurance and better emergency preparedness. Lusardi et al. ( 2021 ) observe that higher financial literacy is linked to better emergency preparedness, less debt constrains, better planning for the future and greater tendency to save and plan for retirement.

The role of financial inclusion in influencing financial resilience has also been studied in the literature. Even though the definition of financial inclusion varies in the literature, most studies have defined it in terms of the comprehensive financial product holdings (Lyons and Kass-Hanna 2021 ). However, initial studies focused more on basic account access (Cihak et al. 2016 ). Salignac et al. ( 2021 ) asserts that financial inclusion enables access to suitable and reasonable financial product and services. This facilitates investment in various aspects including business, education and health. Financially excluded individuals have a higher tendency in engaging in informal financing that is often more costly (Lamb 2016 ). Kass-Hanna et al. ( 2021 ) state that having financial products related to savings, loans and insurance allows individuals to make more strategic financial decisions that can mitigate risk and allow individuals to be more prepared to face financial shock. Based on the development economic perspective, Salignac et al. ( 2021 ) postulate that financial inclusion can serve as a catalyst that stimulates economic development since countries that are low in financial inclusion often have higher poverty rate, greater income inequality and lower economic growth. Belayeth Hussain et al. ( 2019 ) observed greater resilience among bank account holders compared to non-account holders, whereas Lyons and Kass-Hanna ( 2021 ) finds that greater financial inclusion is linked to lower financial vulnerability.

Additionally, studies have also scrutinised the role of socio-demographic characteristics in influencing financial resilience. Belayeth Hussain et al. ( 2019 ), Kass-Hanna et al. ( 2021 ), Lusardi et al. ( 2011 ), and Salignac et al. ( 2021 ) find that financial resilience varies across gender, income level, education level, employment status, regions, urbanisation, ethnicity, and number of dependent in the household. There are limited studies that have looked at financial resilience among Malaysians. Most of the studies on financial management among Malaysians have focused on issues related to financial preparedness (Loke 2016 ), financial wellbeing (Mahdzan et al. 2019 ), financial planning (Boon et al. 2011 ), financial literacy (Yew et al. 2017 ), and debt repayment behaviour (Hamid and Loke 2021 ). This study aims to fill the gap in the literature by identifying the determinants of financial resilience among Malaysians.

Considering the above discussions, Fig.  1 shows the conceptual framework of this study. Firstly, we would like to confirm whether economic resource factors influence financial resilience. Secondly, we would like to identify effect of financial literacy on financial resilience. Thirdly, we would like to study how financial inclusion influences financial resilience. Lastly, we would like to consider the effect of social demographic variables on financial resilience.

Conceptual framework

Data and methodology

The data used in this study are provided by the Bank Negara Malaysia, the central bank of Malaysia. It is sourced from the OECD (INFE) Financial Literacy survey that was collected in 2018. The survey was conducted nationwide, covering the East and West of Malaysia. A total of 3,394 individuals participated in the study. The survey included questions on financial literacy which incorporates financial knowledge, behaviour, and attitudes. In addition, the survey also included questions related to money management, short- and long-term financial planning and financial product choice. Questions related to the socio-demographic characteristics of respondents were also included in the survey.

Dependent variable

Financial resilience is a concept that is dynamic as it incorporates the individuals’ ability to recover from an adverse financial shock. In practise, longitudinal data are required to capture the individuals’ financial condition when the shock happens and observe their ability in dealing with it in the subsequent years. However, it is time consuming and costly to carry out such analysis. As such, cross-sectional analysis is mostly used in studying individuals’ financial resilience. In line with OECD ( 2020a ; b ), five components of financial resilience are considered. The survey questions used to measure each component of the financial resilience are included in Table ​ Table1. 1 . The first component (Resil 1) is related to keeping control of money which includes elements associated with planning financial matters and keeping a budget. This component is measured using three questions with a total score ranging from 3 to 11. The second component (Resil 2) is related to taking care of expenditure assesses elements linked to managing expenses and fulfilling financial obligations on time to ensure that no late charges or penalty are incurred. This component is estimated using two questions with a total score ranging from 2 to 10. The third component (Resil 3) is related to having financial cushion, taking into consideration elements connected to the ability in withstanding financial shock. This component is analysed using two questions with a total score ranging from 2 to 7. The fourth component (Resil 4) is related to handling financial stress accounts for elements that considers experiencing financial shortfall and stress related to financial matters. This component is estimated using three questions with a total score ranging from 3 to 13. The last component (Resil 5) is related to having a financial planning includes elements linked to actively saving and having financial goals in the future. This component is analysed using three questions with a total score ranging from 3 to 12.

Financial resilience components

Based on the 13 questions used, the raw value of Total Resilience will range from 13 to 53. However, the range of scores is not uniform across each component. As such, respondents score for each component is estimated by dividing the score for each component with the total value of each component, and multiplying the sum obtained by 53 (the maximum score of Total Resilience). The weighted value for Total Resilience is estimated by adding the weighted scores from each of the five components. In doing so, we have assumed that each component contributes equally to the financial resilience. , 2 3 The weighted values of component of financial resilience ranges from 2.12 to 10.6. Based on these values, each component’s score is classified into three categories: low, medium, and high. This is done by dividing the range into three groups. The score between 2.12 and 4.95 is classified as low (0), the score between 4.96 and 7.79 is classified as medium (1), and the score between 7.8 and 10.6 is classified as high (2). Meanwhile, the weighted value for Total Resilience ranges from 13.22 to 53. Based on these values, the Total Resilience score is divided into three categories: low, medium, and high. The Total Resilience score between 13.22 and 26.48 is classified as low (0), the score between 26.49 and 39.75 is classified as medium (1), and the score between 39.76 and 53 is classified as high (2).

Table ​ Table2 2 presents the distribution of the respondents into the three categories for Total Resilience and five components. 25.37 percentage of the respondents falls into the low category of Total Resilience, which is considered as financially vulnerable. Almost half of the respondents (51.09 percent) fall into the medium category for Total Resilience, displaying moderate financial resilience. On the other hand, 23.54 percent of the respondents belong to the high category group of Total Resilience, which is considered as financially resilient. As far as the components of financial resilience are concerned, only 18.77 percent of the respondents fall into the low category group for Resil 1. The remaining 42.1 and 39.13 percent consist of those who belong to the medium and high category group for Resil 1, respectively. This demonstrates that those who are good at keeping control of money are almost double compared to those who are not. Additionally, it is observed that almost half of the respondents (50.15 percent) are good at taking care of the expenditure (Resil 2). Only 15.67 percentage of the respondents are weak at managing their expenditure, while the remaining 34.18 percent are moderate at it. When it comes to having financial cushion (Resil 3), it is noticed that 44.81 percent of the respondents are weak at it, 50.85 percent are moderate at it, and only 4.33 percent are good at it. As far as handling financial stress (Resil 4) is concerned, majority of the respondents (52.3 percent) are moderate at it. The remaining 36.8 percent of the respondents are good at handling financial stress, while only 10.9 percent of the respondents are weak at it. Finally, it is observed that majority of the respondents (51.97 percent) are good at financial planning (Resil 5). Those who are weak in financial planning account for 22.98 of the respondents, while the balance 25.04 percent are moderate at it.

Distributions of dependent variables

Resil 1 relates to keeping control of money; Resil 2 relates to taking care of expenditures; Resil 3 relates to having a financial cushion; Resil 4 relates to experiencing financial shortfall or stress and Resil 5 relates to having a financial planning

Additional analysis is done by using an alternative measure of financial resilience. Access to savings has been used by Mcknight and Rucci ( 2020 ) to study resilience. Even though it is just one of the elements of financial resilience proposed by Salignac et al. ( 2019 ), Mcknight and Rucci ( 2020 ) postulates that adequacy of saving is in itself is a good indicator to assess financial resilience since sufficient savings allow individuals to survive during challenging times without large borrowing. In assessing adequacy of saving, respondents were asked how much of their current earnings do they save. The response is classified into five categories. The categories range from less than 5 percent, 5 to 10 percent, 10 to 20 percent, 20 to 35 percent, 35 to 50 percent and above 50 percent. Individuals with higher savings are considered more resilient.

Explanatory variables

The explanatory variables used in the analyses are financial knowledge, financial inclusion, and socio-demographic variables. Financial knowledge is measured using seven questions related to time value of money, interest paid on a loan, simple interest calculation, compound interest calculation, risk and return, inflation, and risk diversification. For each question, respondents are allowed to choose any of the given answer or choose “I don’t know”. Each correct answer will be given a value of 1. Hence, the total value for financial knowledge ranges from 0 to 7. A value between 0 and 2 is considered as low financial knowledge, a value between 3 and 4 is considered moderate financial knowledge, and a value between 5 and 7 is considered high financial knowledge.

Financial inclusion is measured from two aspects: using bank products and services and level of financial product holding. Using bank products and services is classified into not using any banking products and services, using banking products and services from a single bank, and using banking products and services from several banks. Using products and services from several banks is used as the reference group. Level of financial product holdings consider respondents holding of deposit account, loan account, credit or debit card, insurance or takaful products, investment products and retirement products. Low product holding is classified as those holding two products and less, moderate product holding is classified as those holding three or four products and high product holding is classified as those holding five to six products.

Several socio-demographic characteristics are included as the control variables in the analyses. Gender is included in the analyses with value 1 assigned to male and 0 to female. Age is classified into six categories: 24 years and less; 25 to 29; 30 to 39; 40 to 49; 50 to 59; 60 years and above. Age category of 24 years and less is used as the reference group. Respondents’ education level is categorised into four, no formal education or primary education, secondary education, vocational education beyond secondary school and university education. Having university education is used as the reference group. Income is divided into four categories which are RM1500 and less; RM1501 to RM5000; RM5001 to RM10,000 and above RM10,000. Earning income of RM1500 and less is used as the reference group. Ethnicities considered are Malays, Chinese, Indian and others, with Malays used as the reference group. Marital status in divided into single, married and divorced or widowed. Being married is used as the reference group. Dependents is classified into three categories based on whether the income is used to support oneself, immediate family, or extended family, with supporting oneself used as the reference group.

According to World Bank ( 2021 ), there are economic disparity among the regions in Malaysia. In line with that, region of residence is included in the analysis. Peninsula Malaysia is represented by four regions which includes the northern, central, eastern, and southern regions. East Malaysia is considered the fifth region. The central region of Peninsula Malaysia is used as the reference group. Additionally, location of residence in terms of whether the respondent resides in a city centre, urban or rural area are also controlled for with living in city centre used as the reference group.

Econometric specification

The ordered logistic regression was used to identify the determinants five components of resilience and the Total Resilience. This regression model is appropriate when the dependent variable consist of choices between more than two options and these choices display a natural order of options (Cameron and Trivedi 2010 ). The following ordered logit model is used:

Based on the above equation, y * is a latent variable that is not directly observed. It is a continuous measure of financial resilience level that is coded as 0, 1 and 2, whereas x is the vector of explanatory variables that takes into account of financial knowledge, financial inclusion and socio-demographics factors. The β ′s are the related coefficient, and ε is the error term.

The discrete financial resilience level variable that is observed, y, is derived as following from the model:

where μ 1 and μ 2 are threshold variables in the logit model. The threshold variables are unknown and determine the maximum likelihood estimation procedure for the ordered logit. Using the cumulative normal function, the probability for each level of financial resilience is:

The explanatory variables used in this study are all categorical variables. All the ordered logit estimation was done using robust standard errors.

Descriptive statistics

Table ​ Table3 3 presents the distribution of Total Resilience based on financial knowledge, financial inclusion, and socio-demographics characteristics of the respondents. With regard to financial knowledge, 37.89 percent of the respondents have higher financial knowledge, 36.56 percent have moderate financial knowledge and 25.55 percent have lower financial knowledge. A lower percentage of those with low Total Resilience have high financial knowledge. Meanwhile, a higher percentage of those with high Total Resilience have high financial knowledge. When it comes to financial inclusion, we find that more than half of the respondents only uses products and services of a single bank. 36.92 percent of respondents uses product and services of several banks, while 10.58 percent of the respondents do not have any bank account. It is observed that those a higher percentage of those with low Total Resilience have a single bank account, while a higher percentage of those with high Total Resilience have several bank accounts. Almost half of the respondents only have a low level of financial products holding. The remaining 30.47 percent of the respondents have a moderate level of financial products holding and 19.68 percent have a high level of financial products holding. A lower percentage of those with low Total Resilience have a high level of products holding. Whereas a higher percentage of those with high Total Resilience have a moderate level of products holdings.

Financial knowledge, financial inclusion and socio-demographic variable by total resilience

The respondents are divided almost equally in terms of gender, with a higher percentage of both genders having a moderate Total resilience. The largest group of respondents in terms of age category are those aged 24 and less (30.76%) while the smallest group are those aged 60 and above (4.51%). A lower percentage of respondents in all age categories have high Total Resilience. The majority of the respondents are Malays (57.45%). This is followed by Chinese (26.49%), others (8.25%) and Indians (7.81%). A higher percentage of the respondents in all ethnic categories have moderate Total Resilience. Majority of the respondents only have secondary school education (71.03%). Respondents with university education accounts for 17.11 percent of the total respondents, vocational education accounts for 6.02 percent while those primary or no education accounts for 5.84 percent. A higher percentage of those with university degree have a high Total Resilience.

More than half of the respondents are married (56.41%), while 41.53 percent are single. A higher percentage of married and single individuals have moderate Total Resilience. Bulk of the respondents belongs to the low-income category (51.49%). This is followed by middle-income (27.91%), high-income (13.91%) and very low-income (6.69%). A lower percentage of individuals with very low or low income have high Total Resilience. Almost half of the respondents use their income to support themselves and their immediate family (50.63%), while 42.68 percent of the respondents only support themselves. Those who support themselves and their extended family accounts for 6.69 percent of the respondents. A higher percentage of those who support themselves and their immediate family have higher Total Resilience.

Additionally, that the data shows that 46.55 percent of respondents live in urban areas, 27.87 percent lives in rural areas and 25.57 percent lives in city centre. A lower percentage of those who live in rural area have a higher Total Resilience. As for the geographical location, 25.22 percent of the respondents are from the central region of Peninsula Malaysia, 24.19 percent are for the northern region, 12.85 percent are from the eastern region, and 18.09 percent are form the southern region. Those from East Malaysia accounts for 19.65 percent of the total respondents. A lower percentage of those living in the eastern region of Peninsula Malaysia and East Malaysia have a low Total resilience.

Regression results

The ordered logit regression is used to analyse the relationship between the dependent variable (Total Resilience and five components of resilience) and independent variables (financial knowledge, financial inclusion, and socio-demographic characteristics). Table ​ Table4 4 shows the regression results for Total Resilience and all components of resilience. As can be seen, the coefficients of high and moderate financial knowledge are positive and significant. This indicates that, in comparison with having low financial knowledge, having moderate and higher financial knowledge increases the probability of being financially resilient and reduces the probability of being financially vulnerable. Similar results are observed for all components of financial resilience.

Ordered logit regressions on the determinants of financial resilience

Robust standard errors in parentheses

*** p  < 0.01; ** p  < 0.05; * p  < 0.1

For financial inclusion, the coefficients of having single bank account and no bank account are negative and significant. This suggest that, in comparison with having several bank accounts, having single bank account and no bank account reduces the probability of being financially resilient and increases the probability of being financially vulnerable. Similar observations are found for resilience components related to keeping control of money, having financial cushion and having financial planning. As for product holdings, a positive and significant relationship is observed between high product holdings and total resilience. This implies that, compared to low product holding, having high product holdings increases the probability of being financially resilient and reduces the probability of being financially vulnerable. Similar findings apply to for the resilience components related to keeping control of money and having financial cushion.

Compared to being female, being male is negatively and significantly related to total financial resilience. This shows that being male lowers the probability of being financially resilient and increases the probability of being financially vulnerable. Similar findings are also observed for male with regard to resilience components related to keeping control of money and handling financial stress. Meanwhile, positive and significant relationship are observed between total resilience and higher age categories. This indicates that being older raises the probability of being financially resilient and lowers the probability of being financially vulnerable. In addition, it also raises the probability of taking a better care of expenditure and having financial cushion. There is a positive and significant relationship between total resilience and higher income categories, demonstrating that higher earning raises the probability of being financially resilient and lowers the probability of being financially vulnerable. Moreover, in results for resilient components, higher earning also raises the probability of having a financial cushion, being able to handle financial shortfall or stress and having a financial planning.

In terms of the relationship between education and total resilience, it is found that being less educated lowers the probability of being financially resilient and raises the probability of being financially vulnerable. Marital status has no bearings on total resilience. As for marital status, compared to married individuals, those who are single are linked to higher probability of handling financial stress but lower probability of having a financial planning. Even though no significant relationship observed between total resilience and supporting family members, supporting immediate and extended family members are associated with greater probability of being able to take care of expenditure. With regard to ethnicity, it is noticed that only the coefficient of other ethnicity is negative and significant. This confirms that, in comparison with being from the Malay ethnic origin, being from the other ethnic origin (other than Indian and Chinese) reduces the probability of being financially resilient and increases the probability of being financially vulnerable. In comparisons to being a Malay, being a Chinese reduces the probability of being able to keep control of money, take care of expenditure, and have a financial planning. On the other hand, it raises the probability of being able to have financial cushion and handle financial shortfall and stress.

Additionally, the findings confirm that place of residence based on the degree of urbanisation do not have any bearing on the probability of being financially resilient. Nevertheless, the findings confirm that, in comparison with living in the city centre, living in the urban or rural areas are linked are associated with greater probability of being able to keep control of money. When it comes to regional location, the findings confirm that in comparison with living in the centre of Peninsula Malaysia, living in the east of Peninsula Malaysia and East Malaysia are associated with higher probability of being financially resilient. Nevertheless, living in the north and south of Peninsula Malaysia, and East Malaysia reduces the probability of being able to keep control of money. Meanwhile, living in the south of Peninsula Malaysia and East Malaysia reduces the probability of being able to take care of the expenditure. It is also observed that in comparison with living in the centre of peninsula Malaysia, living in the rest of the regions lower the probability of having financial cushion. Additionally, the findings confirm that living in the East of Peninsula Malaysia and East Malaysia raise the probability of being able to handle financial stress and having a financial planning.

Additional analysis was done using the five categories of savings as the alternative measure of financial resilience. The findings of the ordered logit regression reported in Table ​ Table5 5 confirm the importance of financial knowledge and financial inclusion in improving savings. The results show that higher financial knowledge and more financial product holdings are associated with the probability of having higher savings. Additionally, being 30 and above and earning higher income are linked to the probability of having higher savings. It is also observed that those with secondary and lower than secondary education are linked with the probability of having lower savings compared to those with university degree. Compared to the Malays, individuals from other ethnic group are associated to the probability of having lower savings. Individuals living in the north, south, and east of Peninsula Malaysia are associated with the probability of having lower savings compared to those living in the centre of Peninsula Malaysia. However, those living is East Malaysia are linked with probability of having higher savings.

Determinants of the ratio of savings as an alternative financial resilience measure

Discussion and conclusion

Financial resilience of consumers is an essential element for the well-functioning of an economy. Consumers who are financially resilient are able face adverse shock and recover from it by returning to their normal state or having a positive outcome. As such, investigating the factors that contributes to greater financial resilience will not only add value to the existing literature but will also benefit the consumers and policy makers. Malaysia is an emerging country with a growing economy, rising cost of living and high consumer loan. Consumers can be very vulnerable to negative economic shock under this condition. Therefore, it is crucial to understand the determinants of financial resilience among Malaysians. The 2018 OECD (INFE) Financial Literacy nationwide survey is used for this purpose. In particular, the respondents’ total financial resilience and five components of financial resilience as proposed by OECD ( 2020a ; b ) are examined. This includes elements related to keeping control of money, taking care of expenditure, having financial cushion, handling financial shortfall and stress, and having a financial planning.

Three main determinants of financial resilience considered are financial knowledge, financial inclusion, and socio-demographic characteristics. Overall, it is found that higher final knowledge increases the probability of being financially resilient. This finding correspond with Kass-Hanna et al. ( 2021 ) and Lusardi et al. ( 2011 , 2021 ), as the results confirm the importance of financial knowledge in improving financial resilience. Furthermore, higher financial knowledge improves all the five components of financial resilience considered in this study. This suggests that higher financial knowledge facilitates individuals in managing their finances and handling financial shortfall and stress.

When comparisons are made with regard to having several bank accounts, it is found that having no bank account or only having a single bank account increases the probability of being financially vulnerable. It is observed that compared to low financial product holdings, high financial product holdings raise the probability of being financially resilient. However, moderate financial product holding financial resilience does not have a bearing on financial resilience when compared to low financial product holdings. The positive impact of financial inclusion measures on financial resilience has been observed in the literature before. Belayeth Hussain et al. ( 2019 ) find that individuals in Bangladesh with savings and borrowings accounts are more financially resilient. Lyons and Kass-Hanna ( 2021 ) identifies that individual having an individual or a joint account in a formal financial institution in MENA region are better able to come up with emergency funds. Cihak et al. ( 2016 ) observe that greater financial product holdings can contribute to financial stability.

Additionally, the results indicate that various socio-demographic characteristics also have impact on financial resilience. It is discovered that men are less resilient compared to women. This is in contrast to studies by Salignac et al. ( 2021 ), Belayeth Hussain et al. ( 2019 ) and Lyons and Kass-Hanna ( 2021 ) observe that women have lower financial resilience. Nevertheless, Daud et al. ( 2019 ) find that there is no significant difference in the financial vulnerability of men and women in Malaysia. Older have more financial resilience compared the younger ones. Lusardi et al. ( 2011 ) also observe lower financial resilience among younger generations. In line with Belayeth Hussain et al. ( 2019 ), Daud et al. ( 2019 ), Lusardi et al. ( 2011 ) and Salignac et al. ( 2021 ), this study finds that those who earn more and have higher education are more resilient. Goyal et al. ( 2021 ) argue that individuals with higher income and education have more financial resources and greater awareness about the need to be financially prepared in facing adverse shock, making them more resilient.

Ethnicity’s influence on financial resilience is mixed. More specifically, it is found that those who belong to other ethnic group than Chinese, and Indians are less financially resilient compared to Malays. Variations are also observed among the races in the components of financial resilience. Similarly, Abdullah Yusof ( 2019 ) also observed that there is an ethic difference in terms of financial fragility among Malaysians. Differences in financial resilience among the ethnic group is also identified by Lusardi et al. ( 2011 ) in the USA. Additionally, compared to individuals living in the central region of Peninsula Malaysia, it is found that those living in the eastern region and East Malaysia have higher financial resilience. Variations are also observed in the components of financial resilience based on the geographical locations. Regional differences in financial resilience were also confirmed by Salignac et al. ( 2021 ) in Indonesia with those living in Bali reporting higher resilience compared those living in Central Java, while those living in the rest of regions reporting lower resilience.

Implications of the findings

This study contributes to the literature by studying the determinants of financial resilience from an emerging economy’s perspective. Individuals’ ability in withstanding an adverse shock by having a good financial management makes them less reliable on state funding and contributes towards greater stability of the financial system. As such, policy makers need to take measures to improve household’s financial resilience. Based on the findings of this study and conclusion derived from the existing literature, the measures taken must consist of elements that integrate financial education with financial inclusion. Development in the financial sector in Malaysia has increased the types of financial products and services with complex structures and terms. Even though the consumers have gained from this through greater product choices, they need to be equipped with sufficient financial knowledge to ensure that they reap the full benefits of greater financial inclusion and are protected from its negative consequences such as over indebtedness.

In line with this, the Financial Education Network (FEN), an inter-agency group co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission (SC), has been established in 2016 with the aim of improving financial literacy among Malaysians via the 5-year National Strategy for Financial Literacy 2019–2023. Among the strategies that have been proposed are to incorporate financial education into the school syllabus and make sure that financial education information is easily accessible and understood. Proper implementation of these strategies is paramount in ensuring that consumers have proactive financial behaviour that can help them persevere during challenging times. Apart from this, the findings here show that there is still room to improve financial inclusion among Malaysians. Financial institutions should take advantage of this through greater marketing of their products and services. However, this needs to be accompanied by appropriate information disclosure that can facilitate consumers decision making. Finally, the findings show financial resilience among Malaysian vary according to their socio-demographic characteristics. As such, policy makers need to ensure that measures taken are designed in a way that all segment of the population, especially the most vulnerable groups, reap the benefits from it.

Acknowledgements

We would like to Bank Negara Malaysia for providing the access to the Organisation for Economic Co-operation and Development (International Network on Financial Education) Financial Literacy 2018 Survey Data.

No funding was received.

Data availability

Declarations.

The authors declare that they have no conflict of interest.

1 The 2018 OECD survey conducted in Malaysia does not include question related to fraud awareness.

2 We acknowledge that this may not necessarily be the case.

3 For example, in the case where Resil 1 = 5.5, Resil 2 = 5, Resil 3 = 3.5, Resil 4 = 6.5, and Resil 5 = 6, the weighted value of Total Resilience = (5.5/11)*53*0.2 + (5/10)*53*0.2 + (3.5/7)*53*0.2 + (6.5/13)*53*0.2 + (6/12)*53*0.2 = 26.5.

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Contributor Information

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Nikkhah-Babaei, H. "Analysis of company financial performance." Thesis, University of Bradford, 1988. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.381010.

Volgina, Vera. "Postmerger financial performance: econometric analysis." Master's thesis, Vysoká škola ekonomická v Praze, 2009. http://www.nusl.cz/ntk/nusl-16850.

Faruk, Hossan, and Ahsan Habib. "Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh." Thesis, University West, Department of Economics and Informatics, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:hv:diva-2516.

The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to effectively a company to use and controls its assets. Its also quantify into seven categories for both pharmaceutical companies such as account receivable turnover, average collection period, inventory turnover, account payable turnover ,account payable turnover in days ,fixed asset turnover ,total asset turnover. Profitability ratio is evaluate how well a company is performing by analyzing and how profit was earned relative to sales, total assets and net worth for both pharmaceutical companies. Debt coverage ratio is performing that the property insufficient to collect their mortgage for both companies and market value is perform the stockholder to analysis their future market value of the stock market. Overall analyses are measurement the best one between Beximco and Square pharmaceutical companies.

Antonini, Carla. "An empirical analysis of environmental externalities incidence on financial performance." Doctoral thesis, Universitat de Barcelona, 2016. http://hdl.handle.net/10803/386554.

Aigbefo, Glory, and Mekonen Araia Aseghehey. "Business and Financial Analysis of Arctic Paper Munkedals AB." Thesis, Högskolan Väst, Avd för juridik, ekonomi, statistik och politik, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:hv:diva-12138.

Jadi, Diara Md. "An empirical analysis of determinants of financial performance of insurance companies in the United Kingdom." Thesis, University of Bradford, 2015. http://hdl.handle.net/10454/14383.

Lewerentz, Eric, and Ellinor Westerberg. "Sentiment analysis of tweets in comparison to a company’s financial performance." Thesis, KTH, Skolan för elektroteknik och datavetenskap (EECS), 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-229766.

Bennett, Andrew L. "An Empirical Longitudinal Analysis of Agile Methodologies and Firm Financial Performance." Thesis, The George Washington University, 2018. http://pqdtopen.proquest.com/#viewpdf?dispub=10982630.

Agile Software Development methods such as Scrum, SAFe, Kanban, and Large Scale Agile (LeSS) promise substantial benefits in terms of productivity, customer satisfaction, employee satisfaction, quality project management overhead, and time to market. As Agile methods have become widespread in the software development industry and begin to take root in the overall business community, there is an increasing need to understand the firm level impact of the implementation of these methods. To build the most effective business case for organizations in and out of the software development industry, it is imperative that a case be made to show that the implementation of Agile frameworks has constituted a competitive advantage. This study investigated the organization level performance impact of switching from traditional methods to the use of Agile frameworks. The results showed that changing from a traditional methodology to an Agile framework resulted in higher return on assets and lower operating expense ratios. The interaction between time and methodology for OER, ROA, or revenues in Table 6 did not show a significant difference, indicating that the null hypothesis cannot be rejected. Thus, we cannot say whether performance differs as a function of type of agile methodology. That said, the non-parametric sign test shows that the median improvement in Operating Expense Ratios were highest for Scrum while SAFe seemed to show a slightly higher improvement in Return on Assets. On the whole, Scrum seems to outperform SAFe in terms of operating efficiency (as measured by OER) but lags in terms of ROA.

Grada, Ali Salem. "Business performance measurement applied to the UK medium-sized coal mining sector since privatisation." Thesis, University of Nottingham, 2000. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.326549.

Shiu, Yung-Ming. "Dynamic financial analysis in the insurance industry : a study of current practices, determinants of company performance, and application of dynamic financial analysis." Thesis, University of Edinburgh, 2004. http://hdl.handle.net/1842/25183.

Wilson, Robert. "An analysis of factors affecting financial performance in English professional team sports." Thesis, Sheffield Hallam University, 2017. http://shura.shu.ac.uk/20981/.

Peters, James D. "Effect of prime contractor financial position on major weapon system cost and delivery performance." Monterey, California : Naval Postgraduate School, 1990. http://handle.dtic.mil/100.2/ADA242431.

Earmia, Jalal Y. "The financial performance of small and medium sized companies: A model based on accountancy data is developed to predict the financial performance of small and medium sized companies." Thesis, University of Bradford, 1991. http://hdl.handle.net/10454/3406.

Ullah, Muhammad. "The Nexus Between Firm's Environmental Performance and Financial Resilience." Thesis, Université Clermont Auvergne‎ (2017-2020), 2020. http://www.theses.fr/2020CLFAD012.

Earmia, Jalal Yousif. "The financial performance of small and medium sized companies : a model based on accountancy data is developed to predict the financial performance of small and medium sized companies." Thesis, University of Bradford, 1991. http://hdl.handle.net/10454/3406.

LUCENA, EDUARDO SANTINI DE. "COMPETITIVE STRATEGIES AND BUSINESS FINANCIAL PERFORMANCE IMPACT: AN ANALYSIS OF THE TELECOMMUNICATIONS INDUSTRY." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2011. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=18311@1.

Pålsson, Moa, and Patric Beijer. "Corporate Sustainability Performance and the Risk of Financial Distress : A Panel Data Analysis." Thesis, Umeå universitet, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-185346.

Ndebele, Ndumiso. "3-month bond option strategies: an analysis of performance from 1998 to 2010 in the South African market." Master's thesis, University of Cape Town, 2011. http://hdl.handle.net/11427/11468.

Elsayed, Khaled Kadry. "An investigation of environmental performance, firm life cycle and financial performance : a panel data analysis of UK firms." Thesis, University of Nottingham, 2004. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.415372.

Wei-Chiung, Yun, and 雲惟炯. "Performance Analysis of Financial Holding Companies." Thesis, 2007. http://ndltd.ncl.edu.tw/handle/91120644527305440699.

Shih, Li-Ching, and 施力中. "The Performance Analysis of Financial Institutions Merger." Thesis, 2019. http://ndltd.ncl.edu.tw/handle/mukufg.

Chen, Lin-Wen, and 陳凌雯. "The performance analysis between financial holding and non-financial holding banks." Thesis, 2005. http://ndltd.ncl.edu.tw/handle/59049084859111593467.

Chlupová, Renata. "Analysis of financial performance of a selected enterprise." Master's thesis, 2015. http://www.nusl.cz/ntk/nusl-189893.

Ludwigová, Barbora. "Analysis of financial performance of a selected company." Master's thesis, 2016. http://www.nusl.cz/ntk/nusl-362907.

LI, YING-SIN, and 李英信. "Visualization Financial Performance Analysis For E-Commerce Industry." Thesis, 2019. http://ndltd.ncl.edu.tw/handle/3n6979.

Susanti, Stefanie, and 潘淑玉. "Analysis of Financial Performance for E-commerce Companies." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/50025444236877614049.

Sun, Wei-Ting, and 孫薇婷. "A CORPORATE SOCIAL PERFORMANCE— CORPORATE FINANCIAL PERFORMANCE BEHAVIORAL ANALYSIS FOR STAKEHOLDER’S." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/88364744437960295501.

Te, Kung Ching, and 孔慶德. "Corporate Governance, Firm Performance, and Financial Risk：an Emprical Analysis of Financial Holding Companies." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/19597709577433354192.

鍾光樺. "Performance Analysis of Stock Recommendations from Professional Financial Magazines." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/21848133404275576979.

Lin, Jui-Ching, and 林瑞晉. "An Analysis Organization Culture, Leadershop Style and Financial Performance." Thesis, 1994. http://ndltd.ncl.edu.tw/handle/29768912491128788985.

LIN, CHIA-WEI, and 林家緯. "Performance Analysis of Stock Recommendations from Professional Financial Magazines." Thesis, 2017. http://ndltd.ncl.edu.tw/handle/b2zwzb.

Bibish, Khaliun, and 卡莉翁. "A Comparison of Financial Performance of Food Companies inMongolia by Using Financial Ratio Analysis." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/52294034387032616683.

CHUNG, HSIAO-LING, and 鍾曉鈴. "Analysis of Financial Consultants’Work Performance, Work Stress and Stress Response under Digital Financial Service." Thesis, 2017. http://ndltd.ncl.edu.tw/handle/64227918263699551664.

Lin, Yueh-sung, and 林岳松. "Analysis on Taiwan financial institutions’operational performance—the application of data envelopment analysis." Thesis, 2010. http://ndltd.ncl.edu.tw/handle/93637767013723700839.

Wingard, Hermina Christina. "Financial Performance of Environmentally Responsible South African Listed Companies." Diss., 2001. http://hdl.handle.net/2263/27648.

Chen, Yi-Ling, and 陳怡伶. "Choosing Financial Indicators and Establishing Stocks Investment Portfolio Performance Analysis." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/36423842423709463060.

Thearmin, Erni, and 鄭美芳. "Financial Performance Analysis of Selected Internet Software and Services Companies." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/30839080414560019328.

Li, Jia-Rong, and 李佳容. "The Analysis of Financial Performance for Non-Profit Proprietary Hospitals." Thesis, 2010. http://ndltd.ncl.edu.tw/handle/958a99.

Tai, Hsing-Hui, and 戴幸卉. "A Competitive Analysis of Autonomous Vehicles Industry with Financial Performance." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/6n3s24.

Liou, Wan-Ping, and 劉婉平. "Financial Performance Analysis for Machine Tool Industry with SQL Database." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/47tum8.

CHAN, CHIA-LIN, and 詹佳霖. "Visualized Financial Performance Analysis for Semiconductor Assembly and Testing Industry." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/jm7a58.

Cheng, Wen-Sheng, and 鄭文勝. "Financial Performance Analysis for Silicon Wafer Industry Using SQL Database." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/bt5nct.

Lee, Chao-Ju, and 李昭儒. "Analysis of the personality traits and performance of financial commissioner." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/28737971041361934446.

HWANG, MEI-JANE, and 黃美珍. "THE COMPARISON ANALYSIS OF FINANCIAL PERFORMANCE OF HOSPITAL IN TAIWAN." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/17502963881531013644.

黃馨眉. "Capital Allocation and Performance Analysis in Financial Holding Company: Empirical Study of Cathay Financial Holdings." Thesis, 2013. http://ndltd.ncl.edu.tw/handle/31323869580968987955.

Chang, Ming-Fei, and 張明霏. "An Empirical Analysis of the Relationship between Operational Quality and Financial Performance in Financial Holding Companies." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/e3a6s4.

Tseng, Wei-Lun, and 曾偉倫. "Value Chain Analysis and Financial Performance of IT Industry in Taiwan." Thesis, 2007. http://ndltd.ncl.edu.tw/handle/98583428911546834511.

Chang, Wen-Nsiang, and 張曜璿. "Assessing with Data Envelopment Analysis- Management Performance of Financial Holding Company." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/67981575333714680132.

Huang, Yin-Chiao, and 黃胤喬. "Dominance, New Products Investment, and Financial Performance - Analysis of Strategy Simulation." Thesis, 2009. http://ndltd.ncl.edu.tw/handle/89113888915923192350.

Wu, Shu-Ling, and 吳淑錂. "Choosing Eight Financial Indicators and Constructing Stocks Investment Portfolio Performance Analysis." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/90126354492833668599.

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Agility and resilience in supply chains: investigating their roles in enhancing financial performance.

1. Introduction

2. literature review, 2.1. theoretical framework, 2.2. hypotheses development, 2.2.1. supply chain management (scm) and financial performance (fp), 2.2.2. the moderating role of agility in the relationship between scm and fp, 2.2.3. interaction of sca and scres in the relationship between scm and fp.

• To ensure that the damaged system is restored to its desired state within an optimal period and at an optimal cost level;
• To reduce the effects of a possible disturbance by changing the effectiveness level of a potential threat.

3. Methodology

3.1. research design, 3.2. data collection and sampling, 3.3. measurement of variables, 3.4. data analysis techniques, 4.1. descriptive statistics of the sample, 4.2. exploratory factor analysis results, 4.3. confirmatory factor analysis results, 4.4. hayes process macro model 3 results, 5. conclusions and discussion, limitations and recommendations for the future studies, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest.

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Tufan, C.; Çiğdem, Ş.; Kılıç, Y.; Sayar, G. Agility and Resilience in Supply Chains: Investigating Their Roles in Enhancing Financial Performance. Sustainability 2024 , 16 , 7842. https://doi.org/10.3390/su16177842

Tufan C, Çiğdem Ş, Kılıç Y, Sayar G. Agility and Resilience in Supply Chains: Investigating Their Roles in Enhancing Financial Performance. Sustainability . 2024; 16(17):7842. https://doi.org/10.3390/su16177842

Tufan, Cenk, Şemsettin Çiğdem, Yunus Kılıç, and Gökçen Sayar. 2024. "Agility and Resilience in Supply Chains: Investigating Their Roles in Enhancing Financial Performance" Sustainability 16, no. 17: 7842. https://doi.org/10.3390/su16177842

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