Orientation Towards Finances: Testing of OTORFIN Scale in the Indian Context

Abstract

Orientation towards finances is an individual behavioral disposition characterized by personal interests and skills related to managing one’s own finances effectively. Loix et al. (2005) employing rigorous procedures developed and validated a scale to find out the financial orientation, and termed it ‘Orientation Towards Finances’ (ORTOFIN). The scale developed and validated in the European context has been used in a number of countries. However, no study has so far tested its applicability in the Indian context. The present study replicated most of the analyses done in developing the ORTOFIN Scale, in the Indian context. The result of Factor analysis presented clear replications of the original work confirming the universal applicability of the scale. The study also established that there was no significant difference in the variables with respect to marital status. However, significant difference existed between males and females in one variable – Personal Financial Planning.

Keywords: orientation towards finance, ORTOFIN, behavioral finance

JEL Classification: H30