Pakistan Journal of Life and Social Sciences - 2024 : Empowering Enterprises; From NPLs to No Problem: How Investment Literacy Saves the Day!

Dr. Siti Zuraidah, Zainal and Dr. Zeti Suzila, Mat Jusoh and Noor Azura, Ahmad Shauri (2024) Pakistan Journal of Life and Social Sciences - 2024 : Empowering Enterprises; From NPLs to No Problem: How Investment Literacy Saves the Day! Pakistan Journal of Life and Social Sciences, 22 (2). pp. 7888-7898. ISSN 2221-7630

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Abstract

This study explores the critical role of investment literacy and knowledge transfer in enabling enterprises to repay non-performing loans (NPLs). NPLs represent a significant challenge to financial stability and the health of the banking sector, particularly affecting micro and small enterprises. Investment literacy is the ability to understand and make informed financial decisions, and knowledge transfer are key factors that empower enterprises to manage their debts effectively. Through an analysis of enterprises facing NPLs, this research examines how enhanced investment literacy, and the transfer of best practices contribute to improved debt repayment capabilities. It assesses the extent to which investment literacy can help enterprises make more strategic financial decisions, reducing the likelihood of loans becoming non-performing. Additionally, the study considers how knowledge transfer can bridge information gaps and provide enterprises with the tools needed to navigate financial challenges. The study utilized data from 127 Malaysian micro-enterprises in the Klang Valley. This data was analyzed using the PLS-SEM technique, which helped test the hypotheses and achieve the research objectives. Findings suggest that enterprises with higher levels of investment literacy and access to knowledge transfer mechanisms show a greater ability to manage and repay NPLs, thereby contributing to financial stability and economic growth. This research highlights the importance of educational initiatives and support systems in reducing the burden of NPLs and fostering a more resilient enterprise sector.

Item Type:	Article
Uncontrolled Keywords:	Investment literacy Knowledge transfer Non-performing loans (NPLs) Ability to repay debt Micro-enterprises PLS-SEM
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	LIBRARY1 UPTM
Date Deposited:	09 Jul 2025 06:52
Last Modified:	09 Jul 2025 06:52
URI:	http://eprints.kuptm.edu.my/id/eprint/4809

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