Financial Literacy, Financial Attitude, and Financial Performance of Creative Economy Actors: The Mediating Role of Financial Management

Abstract

economic activities. However, the sustainability of creative economy businesses is determined not only by creativity and innovation but also by the ability to manage financial resources effectively. This study aims to analyze the effects of financial literacy and financial attitude on the financial performance of creative economy actors in Denpasar City and to examine the role of financial management as a mediating variable. The study employed a quantitative approach with an explanatory research design. The research model consists of four constructs: financial literacy, financial attitude, financial management, and financial performance. The data consisted of 81 respondents who were creative economy actors and were analyzed through measurement model assessment, structural model assessment, hypothesis testing, and mediation effect analysis. The results indicate that financial attitude and financial management have positive and significant effects on financial performance, whereas the direct effect of financial literacy on financial performance is not significant. Furthermore, financial literacy and financial attitude have positive and significant effects on financial management. The mediation analysis demonstrates that financial management mediates the relationship between financial literacy and financial performance, as well as the relationship between financial attitude and financial performance. These findings indicate that financial knowledge does not automatically lead to better financial performance when it is not translated into effective financial management practices. The study implies that improving the performance of creative economy actors should focus not only on enhancing financial literacy but also on developing positive financial attitudes and implementing effective financial management practices.