Academy of Financial Services Annual Meeting 2022

Knowledge, Credit-card, American, Fractional, Behavior

The present study explores the relationship between financial knowledge and credit-card management behavior of American adults using pooled cross-section dataset from the National Financial Capability Study (NFCS) 2018 and 2021(embargoed dataset). In this study, the credit-card management behavior scale is constructed as a fractional response variable and is continuous over a defined bounded range. Therefore, fractional regression analysis is used in this study to examine the association between financial knowledge and credit-card management behavior. The findings in this analysis suggest that there is a positive association between financial knowledge and credit-card management behavior.