The Importance of Financial Literacy to Non-Finance Managers of Healthcare Institutes in Malaysia
Abstract
Financial literacy among non-finance managers is crucial for the operational success and sustainability of healthcare institutes. This research explores the significance of financial literacy for non-finance managers at various hospitals in Klang Valley, emphasizing its impact on informed decision-making and efficient resource management. The study investigates the current financial literacy levels among non-finance managers, identifies gaps and proposes strategies to enhance their financial competencies. Using a comprehensive approach, including situational analysis and empirical data collection, the research aims to demonstrate how improved financial literacy can lead to better financial management, ultimately contributing to the hospital's competitive edge and long-term viability. This study’s data were based on the questionnaires adapted from several previous studies, including Bongomin et al. (2018) and Al-Rahhaleh et al. (2023). The findings suggest that enhancing financial literacy among non-finance managers is essential for achieving financial stability and effective healthcare service delivery, thereby underscoring the need for targeted financial training programs in the healthcare sector.
Downloads
References
Al Rahhaleh, N., Al-Khyal, T. A., Daghran Alahmari, A., & Al-Hanawi, M. K. (2023). The financial performance of private hospitals in Saudi Arabia: An investigation into the role of internal control and financial accountability. PloS One, 18(5), e0285813. https://doi.org/10.1371/journal.pone.0285813
Andarsari, P. R., & Ningtyas, M. N. (2019). The role of financial literacy on financial behavior. Journal of Accounting and Business Education, 4(1), 24-33 https://www.researchgate.net/publication/337161522_The_Role_of_Financial_Literacy_on_Financial_Behavior/fulltext/5def06eea6fdcc283714770d/The-Role-of-Financial-Literacy-on-Financial-Behavior.pdf
Anthony, R., & Sabri, M. F. (2015). Financial management practices of medical practitioners in the private and public medical service in Malaysia. International Review of Management and Business Research, 4(4), 1105. https://www.researchgate.net/publication/301222728_Financial_Management_Practices_of_Medical_Practitioners_in_the_Private_and_Public_Medical_Se rvice_i n_Malaysia
Bongomin, G. O. C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2018). Nexus between financial literacy and financial inclusion: Examining the moderating role of cognition from a developing country perspective. International Journal of Bank Marketing, 36(7), 1190-1212. http://dx.doi.org/10.1108/IJBM-08-2017-0175
Boon, T. H., Yee, H. S., & Ting, H. W. (2011). Financial literacy and personal financial planning in Klang Valley, Malaysia. International Journal of Economics and Management, 5(1), 149-168. http://www.ijem.upm.edu.my/vol5no1/bab08.pdf
Brannagan, K. B. (2012). Enhancing online finance education for non-financial managers. Journal of Online Learning and Teaching, 8(1), 79-87. https://jolt.merlot.org/vol8no1/brannagan_0312.pdf
Cerullo, M., Yang, K., Joynt Maddox, K. E., McDevitt, R. C., Roberts, J. W., & Offodile, A. C. (2022). Association Between Hospital Private Equity Acquisition and Outcomes of Acute Medical Conditions Among Medicare Beneficiaries. JAMA Network Open, 5(4), e229581. https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2791727
Eniola, A. A., & Entebang, H. (2017). SME managers and financial literacy. Global Business Review, 18(3), 559-576. http://dx.doi.org/10.1177/0972150917692063
James, B. D., Boyle, P. A., Bennett, J. S., & Bennett, D. A. (2012). The impact of health and financial literacy on decision making in community-based older adults. Gerontology, 58(6), 531-539. https://doi.org/10.1159/000339094
Jusoh, M. A., & Abd Talib, N. A. (2018). Literasi dan tingkahlaku kewangan usahawan mikro di utara Semenanjung Malaysia: Financial literacy and behavior of micro entrepreneurs in the northern peninsula of Malaysia. Management Research Journal, 7, 244-259. https://doi.org/10.37134/mrj.vol7.21.2018
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
Lyn, S. H. M., & Sahid, S. (2021). Faktor-faktor mempengaruhi tahap literasi kewangan masyarakat kawasan pedalaman. Proceedings of the 8th International Conference on Management and Muamalah 2021, 62-70. https://conference.uis.edu.my/icomm/8th/images/021-054.pdf
Naranjee, N., Sibiya, M. N., & Ngxongo, T. S. P. (2019). Development of a financial management competency framework for nurse managers in public health care organisations in the province of KwaZulu-Natal, South Africa. International Journal of Africa Nursing Sciences, 11, Article 100154. http://dx.doi.org/10.1016/j.ijans.2019.100154
Nawaz, S.(2015). Finance for non-finance managers.Manaraa. https://lib.manaraa.com/books/FINANCE %20FOR %20NONFINANCIAL%20MANAGERS.pdf
Oppong, C., Salifu Atchulo, A., Akwaa-Sekyi, E. K., Grant, D. D., & Kpegba, S. A. (2023). Financial literacy, investment and personal financial management nexus: Empirical evidence on private sector employees. Cogent Business & Management, 10(2), Article 2229106. https://doi.org/10.1080/23311975.2023.2229106
Plakalovi?, N. (2015). Financial literacy of SME managers. Management, Knowledge and Learning Joint International Conference 2015, 409-416. https://toknowpress.net/ISBN/978-961-6914-13-0/papers/ML15-086.pdf
Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356-376.
Rasiah, R., Noh, A., & Tumin, M. (2009). Privatising healthcare in Malaysia: Power, policy and profits. Journal of Contemporary Asia, 39(1), 50-62. http://dx.doi.org/10.1080/00472330802506790
Reuter, J., Dias, M. F., Sousa, M. J., Soobhany, A. R., & Hendi, A. (2022). Unlock financial knowledge in managers through games. Proceedings of the 16th European Conference on Game Based Learning, 16(1), 463-472. http://dx.doi.org/10.34190/ecgbl.16.1.842
Siswanti, I., & Halida, A. M. (2020). Financial knowledge, financial attitude, and financial management behavior: Self–control as mediating. The International Journal of Accounting and Business Society, 28(1), 105-132.
Sriyono, S., & Rif’ah, N. L. (2022). Can Gender be a Moderating Variable in Micro Small Medium Enterprises Financial Behavior? A Perspective from Financial Literature, Financial Attitude, and Income. Jurnal Manajemen Bisnis, 13(2), 306-323.
Vieira, K. M., Júnior, F. d. J. M., & Potrich, A. C. G. (2020). Measuring financial literacy: proposition of an instrument based on the Item Response Theory. Ciência e Natura, 42, e38. https://periodicos.ufsm.br/cienciaenatura/article/download/40167/html?inline=1
Zait, A., & Bertea, P. E. (2015). Financial literacy–Conceptual definition and proposed approach for a measurement instrument. The Journal of Accounting and Management, 4(3). https://core.ac.uk/download/pdf/229471204.pdf
Copyright (c) 2025 Mohd Hafiz Bakar, Siti Norbaya Yahaya
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
