Bankruptcy Risk among Gen Y in Klang Valley

Chong Li Syan; Noor Ashikin Mohd Rom; Nurbani Md. Hassan

Chong Li Syan
Noor Ashikin Mohd Rom
Nurbani Md. Hassan

Abstract

Bankruptcies among the young generation have huge impact on the country growth and economy, as they are country future talent in stimulating the economy of the country. The purpose of this paper is to investigate the factors that influencing bankruptcy risk among Generation Y in Klang Valley, Malaysia. The independent variables for this study included spending behaviour, credit card usage and financial commitment. This is a quantitative study using probability sampling method and 209 respondents have given their feedbacks via online form. The findings revealed that that there was relationship between spending behaviour, credit card usage and financial commitment with bankruptcy risk. The factors studied in this paper are highly related to the respondent's personal perception and their own point of view. This research ignores external issues such as economics condition or political issue. The results could be used as a guide for the government, financial institutions and public on the major factors that contribute towards bankruptcy risk among Generation Y. Hence, financial literacy among citizen especially young generation is highly desirable to curb the bankruptcy problem before it becoming a disease.

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