Structural Equation Modeling of Pico Finance Customers’ Financial Behaviors in Bangkok Metropolitan Region
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Abstract
The objective of this research was to examine and to compare the structural equation modeling of PICO finance customers’ financial behaviors in Bangkok metropolitan region between creditworthy customers and non-creditworthy customers. The total of 537 samples were 274 creditworthy customers and 263 non-creditworthy customers from multi-stage sampling. There are 9 questionnaires used to measure variables. The item objective congruence (IOC) was greater than 0.5 and the reliability of the measures of each variable ranged from 0.84 to 0.98. There are 2 important findings in this study. First, the structural equation model of financial behavior among PICO finance customers in Bangkok metropolitan region is goodness of fit with the empirical data, resulting the goodness of fit indices with = 315.29, df = 115, (p < 0.05), SRMR = 0.045, RMSEA = 0.057, GFI = 0.94, NFI = 0.92, CFI = 0.95, TLI = 0.93, AGFI = 0.91, PNFI = 0.69 and /df = 2.74. The top 3 causal variables that totally affected financial behavior, namely, attitude toward financial behavior (Total effect 0.70), social capital (Total effect 0.37), and financial literacy (Total effect 0.32). All causal variables accounted for 85% of variance in financial behavior. Secondly, the creditworthy customers have higher financial capabilities than non-creditworthy customers, showing that creditworthy customers had the effect coefficient of financial literacy on financial skills (0.62) higher than non-creditworthy customers (0.35).
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