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Journal of Management and Administration ProvisionJournal of Management and Administration Provision

This study aims to analyze the effect of mental accounting and heuristics on financial behavior, with self-efficacy as a moderating variable in Insan Corporation Manado employees. This research is motivated by the empirical phenomenon that the majority of employees show financial behavior that does not reflect the principles of good financial management, such as the tendency to make impulsive purchases, lack of budget planning and the dominance of emotional decisions. The method used is a quantitative approach with survey techniques using online questionnaires (google form) distributed to 131 respondents. Data analysis was carried out using Structural Equation Modeling - Partial Leas Squares (SEM-PLS). The results showed that mental accounting has a positive and significant influence on financial behavior, as well as heuristics have a positive and significant influence on financial behavior. Furthermore, self-efficacy is proven to positively and significantly moderate the relationship between mental accounting and financial behavior, and negatively moderate the relationship between heuristics and financial behavior. Thus, it can be concluded that mental accounting and heuristics play a significant role in shaping employees financial behavior, while self-efficacy is the main psychological factor that can strengthen or weaken their influence.

The study concludes that mental accounting and heuristics significantly influence employees financial behavior.Self-efficacy plays a crucial moderating role, strengthening the impact of mental accounting and weakening the influence of heuristics.These findings highlight the importance of both cognitive financial management strategies and psychological factors in promoting sound financial decision-making.

Further research should investigate the impact of financial literacy programs on enhancing self-efficacy and improving financial behavior among employees. Additionally, exploring the role of emotional intelligence in mediating the relationship between heuristics and financial decision-making could provide valuable insights. Finally, longitudinal studies are needed to examine how changes in self-efficacy over time affect long-term financial outcomes, particularly in the context of evolving economic conditions and personal life events. These studies should consider diverse demographic factors and organizational contexts to ensure the generalizability of findings and inform the development of targeted interventions to promote financial well-being. A deeper understanding of these dynamics will contribute to more effective strategies for fostering responsible financial practices and improving the financial stability of individuals and organizations.

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