The Impact of Financial Self-Efficacy on Investors' Financial Health
Subject Areas : Financial and Behavioral Researches in Accounting
Alireza Hooshmandi
1
,
امید پورحیدری
2
*
,
Amirhossein Taebi Noghondari
3
,
Maryam dostaky
4
1 -
2 - عضو هیئت علمی دانشگاه شهید باهنر کرمان
3 - Accounting Department, Vahid Kerman, Islamic Azad University, Kerman, Iran
4 - Group of Natural Resources Management, University of Wali Asr (AJ), Rafsanjan, Iran
Keywords: Financial Stress, Financial Security, Financial Resilience, Financial Self-Efficacy,
Abstract :
This study aims to fill the gaps in investment, and how financial self-efficacy contributes to the dimensions of financial health, including financial security, financial stress, and financial resilience of investors. Our statistical population is investors in the Tehran Stock Exchange. A total of 395 responses were extracted and the data were analyzed using the structural equation modeling technique. Maximum likelihood estimation method was used to estimate the values of the research model parameters. The findings provided evidence to support the three hypotheses formulated. The results of the first hypothesis indicate that financial self-efficacy has a positive and significant relationship with financial security. People with higher levels of financial self-efficacy are more likely to enjoy financial security compared to people with lower levels of financial self-efficacy. The results of the second hypothesis indicated that financial self-efficacy has a negative and significant relationship with financial stress. An increase in financial self-efficacy may help reduce the adverse effects of financial stress for investors. Also, the results of the third hypothesis showed that financial self-efficacy has a positive and significant relationship with financial resilience. People who have higher financial self-efficacy are generally more resilient to financial problems. These people are able to make the best financial decisions. In this regard, educating and understanding investors about psychological issues, in addition to investors' familiarity with traditional financial issues, has always been a useful tool for dealing with financial and investment problems of individuals.
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