Does CEO's Financial Behavior Affect Startup Performance?

DOI

10.2991/978-2-38476-090-9_37How to use a DOI?

Keywords

Startup Performance; Financial Behavior; Financial skill; Financial Knowledge

Abstract

More than 100 startups failed to develop in Indonesia in 2021. Many factors have caused many startup businesses to fail to thrive, including the CEO's financial behavior. This article attempts to fill in the gaps in research on startups and startup performance or explicitly explains the effect of CEO financial knowledge, financial skills, and financial behavior on startup performance. This research was conducted in East Java Province because, based on Bekraf 2019 data, East Java Province has the second largest number of startups in Indonesia. The sample size was determined by the sloving formula, which resulted in as many as 200 research samples. Based on the number of samples, multistage sampling was applied in order to establish the optimum number of samples to represent the cities of Surabaya and Malang. The survey method uses a questionnaire to obtain primary data. The questionnaire data was processed using warp PLS 7.0 software. The results showed that partially financial knowledge had a positive and insignificant effect on financial behavior, but financial knowledge had a positive and significant effect on startup performance. Furthermore, financial skills positively and significantly affect financial behavior and startup performance. At the same time, the CEO's financial behavior positively and significantly affects startup performance. The results of this study indicate that better the CEO's financial behavior will improve the startup's performance. Conversely, the worse the CEO's financial performance will decrease the startup's performance. The implication for startup actors (CEOs) is that they are expected to have good financial behavior in managing startup businesses.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Kemal Sandi
AU  - Muhammad Saifi
AU  - Saparila Worokinasih
AU  - Dwiatmanto
PY  - 2023
DA  - 2023/08/01
TI  - Does CEO's Financial Behavior Affect Startup Performance?
BT  - Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
PB  - Atlantis Press
SP  - 456
EP  - 474
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-090-9_37
DO  - 10.2991/978-2-38476-090-9_37
ID  - Sandi2023
ER  -