UNVERSITI MALAYSIA SARAWAK

FACULTY OF ECONOMICS & BUSINESS

(EBQ2054 RESEARCH METHODOLOGY)

THE EFFECTS OF FINANCIAL DISTRESS

AMONG UNIMAS STUDENTS
 CONTENT
Topics Presented By
Problem Statement
Research Objectives Sulaiman Bin Mohd Faisal
Research Questions
Literature Review Daljeet Kaur
Theoretical Framework Nur Djuita Binti Jamaluddin
Diagram & Hypotheses Mohd Syafiq Bin Wahid
Data Collection Methods Christinus Ng Ka Hing
Data Level of Measurement Nurul Natasya Binti Azly
Conclusion Christinus Ng Ka Hing
PROBLEM STATEMENT
 PROBLEM STATEMENT
There are SIX factors that affect Financial Distress :

1. Unavoidable Expenses
2. Lifestyle
3. Peer Pressure
4. Tuition Fees
5. Debt Loans
6. Financial Planning & Awareness
 PROBLEM STATEMENT:
1. Unavoidable Expenses
There are THREE types of expenses :
1. Fixed
2. Periodic
3. Variable

Expenses directly for personal utilities

Lack of original budgeting
Less of knowledge in financial
 PROBLEM STATEMENT:
2. Lifestyle

Newly acquired freedom

Lifestyle habit of impulse buying (Self-satisfaction)

Poor saving habit

Spent more money

Cannot arrange financial planning very well

 PROBLEM STATEMENT:
3. Peer Pressure

Not handle and manage properly

Also give negative influence
For example: Student (Skip classes, spend
more money, etc.)
Family role on financial planning
Mentality, emotional which affect the lifestyle
 PROBLEM STATEMENT:
4. Tuition Fees

More expensive
For example: One subject cost RM60.00 per
credit hour
Qualify of education lead to poor performance
Economic unstable
Utilities expenses
For example: Stationeries, books, etc.
 PROBLEM STATEMENT:
5. Debt Loans

Borrow money (Spent money to other things)

Do a credit loan

Affect academic performance

Mental disorder
 PROBLEM STATEMENT:
6. Financial Planning & Awareness

Influence to spend more (No saving habit)

Lack of knowledge in financial management

Failure to manage money

Pressure lead to depression & bad behavior.

For example: Theft, skip classes, etc.

RESEARCH OBJECTIVES
 RESEARCH OBJECTIVES

General Objectives:

To investigate whether the financial distress

among UNIMAS students can be determined by
factors such as unavoidable expenses, lifestyle,
peer pressure, tuition fees, debt loans, and
financial planning and awareness.
RESEARCH OBJECTIVES (Contd)

Specific Research Objectives:

1. To examine the relationship between unavoidable

expenses and financial distress among UNIMAS
students.

2. To analyze the relationship between lifestyle and

financial distress among UNIMAS students.

3. To investigate the relationship between peer pressure

and financial distress among UNIMAS students.
RESEARCH OBJECTIVES (Contd)

Specific Research Objectives:

4. To determine the relationship between tuition fees and

financial distress among UNIMAS students.

5. To study the relationship between debt loans and

financial distress among UNIMAS students.

6. To explore the relationship between financial planning

and awareness and financial distress among UNIMAS
students.
RESEARCH QUESTIONS
 RESEARCH QUESTIONS
General Research Question:

What is the overall relationship between the

determinants (unavoidable expenses, lifestyle,
peer pressure, tuition fees, debt loans and
financial planning and awareness) and financial
distress among UNIMAS students?
RESEARCH QUESTIONS (Contd)

Specific Research Questions:

1. Do unavoidable expenses affect financial distress of

students in UNIMAS?

2. Does lifestyle affect financial distress of students in

UNIMAS?

3. Does peer pressure affect financial distress of students

in UNIMAS?
RESEARCH QUESTIONS (Contd)

Specific Research Questions:

4. Do tuition fees affect financial distress of students in

UNIMAS?

5. Do debt loans affect financial distress of students in

UNIMAS?

6. Does financial planning and awareness affect financial

distress of students in UNIMAS?
LITERATURE REVIEW
 LITERATURE REVIEW
Financial stress may be defined as the inability
to meet ones financial obligations, which can
also include psychological or emotional effects
(Northern et al., 2010).

Financial distress refers to stress that is caused

by a financial situation including personal, family,
(Joo, 1998), economic distress, difficulties, and
constraints (Delafrooz & Paim, 2011).
 LITERATURE REVIEW (Contd)
Negative outcomes of financial stress:

a) Depression (Andrews & Wilding, 2004; Clark-Lempers,

Lempers, & Netusil, 1990)
b) anxiety (Andrews & Wilding, 2004),
c) poor academic performance (Andrews & Wilding, 2004;
Harding, 2011),
d) poor health (Northern et al., 2010), and
e) Difficulty persisting towards degree completion
(Letkiewicz, in press; Joo, Durband, & Grable, 2008;
Robb, Moody, & Abdel-Ghany, 2011).
 LITERATURE REVIEW (Contd)

All Business (2012) unavoidable cost is that cost which

cannot be avoidable at least for the short term.

Numerous researchers have examined college students

credit card use, finding in general that the majority now
have credit cards (Baum & OMalley, 2003).

Salazar et al. (2013) says that consumers do not make

their decision independently and their behavior is shaped
by the social groups which they belong to.
 LITERATURE REVIEW (Contd)
A potential source of financial stress for college students
is the cost of tuition and fees, which has grown at 3
times the rate of inflation (Britt, 2016).

Roberts, Golding, Towell, and Weinreb, (1999) found that

the research conducted by British university students
have shown poor mental health status related to financial
stress such as having difficulty paying bills on time.

Roberts and Golding, 1999 identified a link between

adverse financial situations of college students and the
negative impact on mental and physical health.
THEORETICAL FRAMEWORK
THEORETICAL FRAMEWORK
Roy Adaptation Model (RAM) Theory
Pioneer
Sister Callista Roy (1976)

Concept
- The model sees an individual as a set of interrelated systems
who strive to maintain balance between various stimuli.
- To suit the objective of this study, we have amended the model
wherever required without changing the original concept in order
to obtain accurate findings.
Roy Adaptation Model Theory (Contd)

The adaptive system

Manages and handles external and internal stimuli of a
person through processes and effectors called as coping
mechanisms with the outcome of either adaptation or
ineffective response (Roy, 1970)

The application field of RAM theory

Knowledge development, interdependence mode for global
society, role function and group identity mode for
organizations and physical adaptive mode for family (Roy et
al., 2011)
Roy Adaptation Model - Explanation

The Refers to UNIMAS students (as an individual)

adaptive or specifically individual in focused group that is
system being examined in this study.

The Refers to the 6 Unavoidable expenses

stressor/e Independent
Lifestyle

ffector Variables
Peer pressure
Tuition fees
Debts
Financial planning & awareness
Roy Adaptation Model - Explanation (Contd)

The constructed framework strives to prove that college students are

dealing with all six effectors in their daily life in order to manage their
financials and as a result, the students will be left with either a
situation whereby he or she is in financial distress or free from it.

The outcome - Low financial distress which refers to adaptation, or

high financial distress which refers to ineffective response.

As a general rule, positive effectors such as positive peers influence

and modest lifestyle can lead students to have lower financial
distress
DIAGRAM OF THEORETICAL
DIAGRAM OF THEORETICAL
DIAGRAM OF THEORETICAL (Contd)

Students are adaptive system of interest

The primary coping mechanism referred to as effector in the
RAM that leads to financial distress among students
Students will processes these stressors based on previous
adaption to handle with the financial distress
The output can be either low financial distress or high
financial distress (ineffective responses/illness)
RAM framework refers to their level of learning, emotion
management and judgment to cope with or adapt to new
financial stressors more effectively
HYPOTHESES
 HYPOTHESIS
High unavoidable expenses causes
financial distress among UNIMAS
students

Lavish lifestyle causes financial

distress among UNIMAS students

High peer pressure causes financial

distress among UNIMAS students
HYPOTHESIS (Contd)

High tuition fees causes financial

distress among UNIMAS students

High debt loans causes financial

distress among UNIMAS students

Low financial planning and awareness

cause financial distress among
UNMAS students
DATA COLLECTION METHOD
DATA COLLECTION METHOD
METHOD
MEHTOD OF COLLECTING QUANTITATIVE DATA, which focusing on
Primary Data through Questionnaire Survey Technique

RESEARCH INSTRUMENT
SELF-ADMINISTRERED QUESTIONNAIRE METHOD To obtain DATA
(The respondent has to complete by his/her own)

Questionnaire divided into two sections which are SECTION A & SECTION B.

SECTION A DEMOGRAPHIC INFORMATION

SECTION B 6 INDEPENDENT VARIABLES

Financial Distress Questionnaire.pdf

 TARGET POPULATION
POPULATION = 16,489 of UNIMAS Students
(fact & figure from UNIMAS Official Site)
SAMPLE SIZE = Students in Every Faculty

Sampling Elements
Unit of Analysis Population is from 9 faculties in UNIMAS
(FMHS, FEB, FSS, FCSHD, FACA, FLSCS, FENG, FSTS, FCSIT)

Sampling Size
Using Rao-soft Sample Size Calculator
Minimum Sample Size : 376 students
TARGET POPULATION (Contd)
Sampling Technique
System random sampling
Type of probability sampling technique
(or representative sampling)

Therefore, this research sampling size will be :

(Each faculty will be getting 45 sets of questionnaire)

45 sets Q x 9 faculties = 405 sets Q

Sample Size : 405 students

Faculty :9
DATA LEVEL OF MEASUREMENT
 Nominal Scale
Section A Demographic information
Simply placing data into categories, without any order or structure.
E.g.
 Nominal Scale
Statistics which can be used with nominal scales
are in the non-parametric group.

Mode

Cross-tabulation
 Ratio Scale
Measures 1st Independent Variable Unavoidable
expenses.
Tells us about the order, exact value between units, and has
absolute zero point.
Ratio scale data would use parametric statistical techniques:
Mean and standard deviation
Correlation - r
Regression Relationship between IV(s) and DV
Analysis of variance Test differences between
two/more means
 Add a0 or strike-out box if you did not receive any income from a certain source

Average Income
Description Statement
(RM per month)
1. Provision from family/partner
Financial Support from public sources/others
2. Non-repayable grant/ scholarship
3. Repayable loan (PTPTN/MARA)
4. Self-earned income through paid job
5. Savings (e.g. previously earned money)
6.` Other source (include other public or private support)
Total Income (RM)

Add a 0 or strike-out box if no money was spent on a certain type of costs.

Paid by
I pay out of my own
Living cost parent/partner/
pocket
(RM per month) others for me
(RM per month)
(RM per month)

1. Accommodation (including utilities, water, electricity)

2. Living/daily expenses (food, clothing, toiletries etc.)
3. Social and leisure activities
4. Transportation
5. Health cost (e.g. medical insurance)
6. Debt payment
7. Other regular costs (tobacco, pets, insurance etc.)
8. Emergency
Total (RM)
 Interval Scale
Measures 2nd to 6th Independent Variables Lifestyle,
Peer Pressure, Tuition Fees, Debt Loans, and
Financial Planning and Awareness.
Knows the exact differences between the values.
Each scaling point is assumed to have equidistant
points between each of the scale elements.
Statistics used would be the same as the one in ratio
scale.
 Strongly Strongly
Disagree Moderate Agree
Statements Disagree Agree
1 2 3 4 5
TUITION FEES (4th Independent Variable)
I felt that tuition fees burden me 1 2 3 4 5
I was aware of tuition fees increment 1 2 3 4 5
I fear of failing a course or year 1 2 3 4 5
I considered of dropping out from university 1 2 3 4 5
I felt emotionally drained by university 1 2 3 4 5

DEBT LOAN (5th Independent Variable)

I know how to spend my student loan 1 2 3 4 5
I felt loan is helpful in my student life 1 2 3 4 5
I felt stressed with debt loan 1 2 3 4 5
I managed monthly bill on time 1 2 3 4 5
I managed debt loan well 1 2 3 4 5
 Descriptive Analysis
Measures of:

Frequency

Central tendency Mean, median, mode

Dispersion/variation Standard deviation, variance, skewness

Forms the basis of virtually every quantitative analysis of data.

Simplifies large amounts of data.

Easier to work with, interpret and discuss.

 DEPENDENT VARIABLES (DV)
: FINANCIAL DISTRESS
The measurement of the Dependent variables (DV) in this research is
based on independent variables which refer to the result of the
questionnaire.

Moreover, the researchers also employ a five-point Likert Scale to

measure the financial distress of the UNIMAS students.

There are 5 questions for each variable and respondents were asked
to rate on the statements that describe their financial distress.

Scale of 5 (strongly agree) indicate respondent extremely stressed

Scale of 1 (strongly disagree) indicate respondent less stressed
 CONCLUSION
To conclude, the effects of financial distress among
UNIMAS are PROBABLY DUE TO :

Unavoidable Expenses
Lifestyle
Peer Pressure
Tuition Fees
Debts Loan
Financial Planning & Awareness