FINANCIAL ATTITUDE DETERMINANT TOWARDS OVERINDEBTEDNESS PROPENSITY AND VALIDATING THE MEASUREMENT TOOLS AMONG MALAYSIAN CIVIL SERVANTS

Abstract

In Malaysia, the over indebtedness scale that assesses over-indebtedness has been translated, adapted, and validated with ambiguous validity evidence. The study aims to validate items related to attitudes toward debt and over-indebtedness propensity, then analyze the influence of attitudes toward debt on over-indebtedness propensity. The eight items on attitude toward debt contain a technique that Davies and Lea developed to gauge people's sentiment about debt; each person scores the statements according to the degree to which they agree or disagree with the statement. In the meanwhile, the cost of debt payment, arrears, the number of loans, and the individual's subjective burden assessment are covered by 10 components of OIP. Back translation into Bahasa Melayu required culturally and contextually suitable adaptations. Through expert validation, pre-testing, and a survey of over indebtedness propensity among Malaysian civil servants, it was determined that the ATD and OIP items demonstrated an adequate internal consistency, despite eliminating specific questions. Only four items of the ATD and nine items of the OIP exhibit adequate structural validity, according to exploratory factor analysis conducted on data from 134 public servants for the pilot test and 490 civil servants for the main test. Given the local context, the Malay version of the document is appropriate for assessing Malaysian government officers' tendency toward excessive debt.