IMPACT OF COGNITIVE FACTORS ON FINANCIAL BEHAVIOR WITH MEDIATING ROLE OF FINANCIAL ANXIETY
Keywords:
Financial knowledge, Self-esteem, Self-control, Financial Anxiety
Abstract
In the modern business world, the financial behavior of the businessmen is what really matters. The financial behavior of the businessmen is influenced by many factors through which the position of the business could be determined. Our research work is based on the impact of financial knowledge, self-control, self-esteem and financial anxiety on financial behavior. Scholar have distributed questionnaire among 500 investors of Multan city; out of which 300 participants gave the response. Different statistical tests like Reliability Analysis, Correlation Analysis and Regression Analysis were used to draw the results. It was concluded after analysis that financial knowledge, self-control and self-esteem does affect financial behavior of investors. Similarly financial anxiety have relationship with financial behavior while financial anxiety mediates the relationship between financial knowledge, self-control, self-esteem and financial behavior. Present study is useful for investors and different businesses in order to determine how different factors can influence the financing behavior of different investors.
References
Abreu, M., Mendes, V., 2010. Financial literacy and portfolio diversification. Quant. Finan. 10, 515–528.
Ackert, L. F., Church, B. K., &Deaves, R. (2003). Emotion and financial markets. Federal Reserve Bank of Atlanta Economic Review, 88, 33–41. Retrieved from q203.pdf
Ameriks, J., Caplin, A., Leahy, J., 2003. Wealth accumulation and the propensity to plan. Q. J. Econ. 118, 1007–1047.
Amin, Z., Constable, R. T., &Canli., T. (2004). Attentional bias forvalenced stimuli as a function of personality in the dot-probe task. Journal of Research in Personality, 38, 15–23.
Amir, N., McNally, R. J., Riemann, B. C., Burns, J., Lorenz, M., & Mullen, J. T. (1996). Suppression of the emotional Stroop effect by increased anxiety in patients with social phobia. Behaviour Research and Therapy, 34, 945–948.
Asaad, “Financial literacy and financial behavior: Assessing knowledge and confidence," Financial Services Review, vol. 24, pp. 101-117, 2015.
Baker, P. M., &Hagedorn, R. B. (2008). Attitudes to money in a random sample of adults: Factor analysis of the MAS and MBBS scales, and correlations with demographic variables. Journal of Socio- Economics, 37, 1803–1814.
Bandura, “Self-efficacy mechanism in human agency," American Psychologist, vol. 37, no. 2, pp. 122-147, 1982.
Banerjee, A., Duflo, E., 2008. What is Middle-class about the Middle-classes around the World. J. Econ. Perspect. 22 (2), 3–28.
Basheer, M. F., Hafeez, M. H., Hassan, S. G., & Haroon, U. (2018). Exploring the role of TQM and supply chain practices for firm supply performance in the presence of organizational learning capabilities: a case of textile firms in Pakistan. Paradigms, 12(2), 172-178.
Basheer, M., Siam, M., Awn, A., & Hassan, S. (2019). Exploring the role of TQM and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in Pakistan. Uncertain Supply Chain Management, 7(2), 275-288.
Baumeister, J. D. Campbell, J. I. Krueger, and K. E. Vohs, “Does High Self-Esteem Cause Better Performance, Interpersonal Success, Happiness, or Healthier Lifestyles?" Psychological Science in the Public Interest, vol. 4, no. 1, pp. 1-44, 2003.
Baumeister, R. F., Campbell, J. D., Krueger, J. I., &Vohs, K. D. (2003). Does high self-esteem cause better performance, interpersonal success, happiness, or healthier lifestyles?. Psychological science in the public interest, 4(1), 1-44.
Baumler, G. (1985). Farbe-Wort-Interferenztest(WIT) nach J. R. Stroop. Gottingen, Germany: Verlag fur PsychologieHogrefe. Beal, D. J., &Delphachitra, S. B. (2003). Financial literacy among Australian university students. Economic Papers, 22, 65–78.
Beckmann, E., 2013. Financial literacy and household savings in Romania. Numeracy 6 (2), 9.
Behrman, J.R., Mitchell, O.S., Soo, C.K., Bravo, D., 2010. Financial Literacy, Schooling and Wealth Accumulation, NBER Working Paper. 16452.
Bernheim, B.D., Garrett, D.M., Maki, D.M., 2001. Education and saving: the long-term effects of high school financial curriculum mandates. J. Public Econ. 80,
Brounen, K. G. Koedijk, and R. A. J. Pownall, “Household financial planning and savings behavior," Journal of International Money and Finance, vol. 69, pp. 95-107, 2016.
Brown, and K. Taylor, “Household finances and the `Big Five' personality traits," Journal of Economic Psychology, vol. 45, pp. 197-212, 2014.
Bucher-Koenen, T., Lusardi, A., 2015. Financial literacy and retirement planning in Germany. J. Pension Econ. Finance 10, 565–584.
Burchell, B. J. (2002). Results of 300 telephone Interviews: Attitudes, knowledge and emotions concerning personal finance. Unpublished report. Retrieved from SummaryofResultsof300TelephoneInterviews.pdf
Burchell, B. J. (2003). Identifying, describing and understanding financial aversion: Financial phobes. Report for EGG. Retrieved from bb101/FinancialAversionReportBurchell.pdf
Campbell, J.Y., 2006. Household finance. J. Financ. 61, 1553–1604.
Carpena, F., Cole, S., Shapiro, J., Zia, B., 2011. Unpacking the Causal Chain of Financial Literacy, World Bank Policy Research Paper. 5798.
Christiansen, C., SchröterJoensen, J., Rangvid, J., 2008. Are economists more likely to hold stocks. Rev. Finan. 12, 465–496.
Chun, N., Hasan, R., Habibur Rahman, M., Ulubasoglu, M.A., 2017. The role of middle class in economic development: what do cross-country data show? Rev. Dev.
Cole, S., Sampson, T., Zia, B., 2011. Prices or knowledge? What drives demand for financial services in emerging markets? J. Financ. 66, 1933–1967.
Costello, C. G., &Devins, G. M. (1989). Screening for depression among women attending their family physicians. Canadian Journal of BehaviouralScience, 21, 434–451.
Damasio, A. R. (1994). Descartes error: Emotion, reason, and the human brain. New York, NY:
Davies, E., & Lea, S. E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology, 16, 663–679.
De Ruiter, C., &Brosschot, J. F. (1994). The emotional Stroop interference effect in anxiety: Attentional bias or cognitive avoidance? Behaviour Research and Therapy, 32, 315–319.
Di Paula, and J. D. Campbell, “Self-esteem and persistence in the face of failure," Journal of Personality and Social Psychology, vol. 16, pp. 15-38, 2003.
Disney, R., Gathergood, J., 2013. Financial literacy and consumer credit portfolios. J. Bank. Financ. 37, 2246–2254.
Dohmen, T., Falk, A., Huffmann, D., Sunde, U., Schupp, J., Wagner, G.G., 2011. Individual risk attitudes: measurement, determinants and behavioral consequences. J.
Drago, “Self-esteem and earnings," Journal of Economic Psychology, vol. 32, no. 3, pp. 480-488, 2011.
Ehrman, R. N., Robbins, S. J., Bromwell, M. A., Lankford, M. E., Monterosso, J. R., & O’Brien, C. P. (2002). Comparing attentional bias to smoking cues in current smokers, former smokers, and non-smokers using a dot-probe task. Drug and Alcohol Dependence, 67, 185–191.
Faul, F., &Erdfelder, E. (1992). GPOWER: A priori, post-hoc, and compromise power analyses for MSDOS [Computer program]. Bonn, FRG: Bonn University, Dept. of Psychology.
Fernandes, D., Lynch Jr., J.G., Netemeyer, R.G., 2014. Financial literacy, financial education and downstream financial behaviors. Manag. Sci. 60, 1861–1883.
Financial Behaviors among Young Adults," The Journal of Consumer Affairs, vol. 49, no. 2, pp. 376-406, 2015.
Fox, E. (1993). Attentional bias in anxiety: Selective or not? Behaviour Research and Therapy, 31, 487– 493.
Furnham, A. (1984). Many sides to the coin: The psychology of money ssage. Personality and Individual Differences, 5, 501–509.
Garman, E. T., Leech, I. E., & Grable, J. E. (1996). The negative impact of employee poor personal financial behaviors on employers. Financial Counseling and Planning, 7, 157–168.
Gathergood, J., 2012. Self-control, financial literacy and consumer over-indebtedness. J. Econ. Psychol. 33, 590–602.
Grohmann, A., Huebler, O., Kouwenberg, R., Menkhoff, L., 2016. Financial literacy. In: Thai Middle Class Women do not Lag Behind, DIW Working Paper Series No.
Grohmann, A., Kouwenberg, R., Menkhoff, L., 2015. Childhood roots of financial literacy. J. Econ. Psychol. 51, 114–133.
Guiso, L., Jappelli, T., 2008. Financial Literacy and Portfolio Choice, EUI Working Papers, ECO2008/31.
Guiso, L., Sodini, P., 2013. Household finance: an emerging field. In: Constantinides, George M., Harris, Milton, Stulz, Rene M. (Eds.), Handbook of the Economics of
Guo, H., Zhu, G., Hewitt, I. J., & Qiu, S. (2009). “Twin copper source” growth of metal− organic framework membrane: Cu3 (BTC) 2 with high permeability and selectivity for recycling H2. Journal of the American Chemical Society, 131(5), 1646-1647.
Guo, H., Zhu, G., Hewitt, I. J., & Qiu, S. (2009). “Twin copper source” growth of metal− organic framework membrane: Cu3 (BTC) 2 with high permeability and selectivity for recycling H2. Journal of the American Chemical Society, 131(5), 1646-1647.
Gustman, A.L., Steinmeier, T.L., Tabatabai, N., 2012. Financial knowledge and financial literacy at the household level. Am. Econ. Rev. Pap. Proc. 102 (3), 309–313.
Hadar, S. Sood, and C. R. Fox, “Subjective Knowledge in Consumer Financial Decisions," Journal of Marketing Research, vol. 50, no. 3, pp. 303-316, 2013.
Hafeez, M. H., Basheer, M. F., Rafique, M., & Siddiqui, S. H. (2018). Exploring the Links between TQM Practices, Business Innovativeness and Firm Performance: An Emerging Market Perspective. Pakistan Journal of Social Sciences (PJSS), 38(2).
Hair, W. C. Black, B. J. Babin, and R. E. Anderson, “Multivariate data analysis," 7th edition, Pearson Prentice Hall, Upper Saddle River, 2010.
Hanoch, Y. (2002). Neither an angel nor an ant: Emotion as an aid to bounded rationality. Journal of Economic Psychology, 23, 1–25.
Hardeweg, B., Menkhoff, L., Waibel, H., 2013. Experimentally validated survey evidence on individual risk attitudes in rural Thailand. Econ. Dev. Cult. Chang. 61,
Hastings, J., & Tejeda-Ashton, L. (2008). Financial literacy, information, and demand elasticity: Survey and experimental evidence from Mexico. (NBER Working Paper 14538). Cambridge, MA: National Bureau of Economic Research.
Hastings, J.S., Tejeda-Ashton, L., 2008. Financial Literacy, Information and Demand Elasticity: Survey and Experimental Evidence From Mexico, NBER Working Paper
Heinrich, M. C., Owzar, K., Corless, C. L., Hollis, D., Borden, E. C., Fletcher, C. D., ... & Benjamin, R. S. (2008). Correlation of kinase genotype and clinical outcome in the North American Intergroup Phase III Trial of imatinibmesylate for treatment of advanced gastrointestinal stromal tumor: CALGB 150105 Study by Cancer and Leukemia Group B and Southwest Oncology Group. Journal of clinical oncology, 26(33), 5360.
Henry, R. A., Weber, J. G., & Yarbrough, D. (2001, June). Money management practices of college students: Statistical data included. College Student Journal, 7–14.
Hewitt, H. T., Copsey, D., Culverwell, I. D., Harris, C. M., Hill, R. S. R., Keen, A. B., ... & Hunke, E. C. (2011). Design and implementation of the infrastructure of HadGEM3: The next-generation Met Office climate modelling system. Geoscientific Model Development, 4(2), 223-253.
Hilgert, J. M. Hogarth, and S. G. Beverly, “Household financial management: The connection between knowledge and behavior," Federal Reserve Bulletin, vol. 89, pp. 309-322, 2003.
Jappelli, T., Padula, M., 2013. Investment in financial literacy and saving decisions. J. Bank. Financ. 37, 2779–2792.
Jenkins, R., Bhugra, D., Bebbington, P., Brugha, T., Farrell, M., Coid, J., . . . Meltzer, H. (2008). Debt income and mental disorder in the general population. Psychological Medicine, 38, 1485–1493.
Johnson, and M. S. Sherraden, “From financial literacy to financial capability among youth," Journal of Sociology and Social Welfare, vol. 34, no. 3, pp. 119-145, 2007.
Jones, “College students' knowledge and use of credit,"Journal of Financial Counseling and Planning, vol. 16, no. 2, pp. 9-16, 2005.
Joo, S., & Grable, J. E. (2000). Improving employee productivity: The role of financial counseling and education. Journal of Employment Counseling, 37, 2–15.
Jöreskog, D. Sörbom, “LISREL 8: structural equationmodeling with the SIMPLIS command language," Lincolnwood, IL: Scientific Software International, 1989.
Jorgensen, B. L. (2007). Financial literacy of college students: Parental and peer influences. (Unpublished doctorial dissertation). Virginia Polytechnic Institute and State University, Blacksburg, VA.
Jump$tart Coalition. (2004). 2004 Personal financial survey of high school seniors. Washington, DC: Jump$tartCoalition for Personal Financial Literacy.
Kaiser, Tim, Menkhoff, Lukas, 2017. Does financial education impact financial literacy, and if so, when? World Bank Econ. Rev. 31 (3), 611–630.
Kharas, H., 2010. The Emerging Middle Class in Developing Countries, OECD Development Centre, Working Paper 285.
Kharas, H., Gertz, G., 2010. The new global middle class: a cross-over from west to east. In: Li, Cheng (Ed.), China's Emerging Middle Class: Beyond Economic
Kindt, M., Bierman, D., &Brosschot, J. F. (1996). StroopversusStroop: Comparison of a card format and a single-trial format of the Standard Color-Word StroopTask and the Emotional Stroop Task. Personality and Individual Differences, 21, 653–661.
Klapper, L., Lusardi, A., Panos, G.A., 2013. Financial literacy and its consequences: evidence from Russia during the financial crisis. J. Bank. Financ. 37, 3904–3923.
Klapper, L., Panos, G.A., 2011. Financial literacy and retirement planning: the Russian case. J. Pension Econ. Finance 10, 599–618.
Klapper, Leora and Georgios A. Panos, Financial Literacy and Retirement Planning: The Russion Case, J. Pension Econ. Financ., forthcoming.
Landerretche, O.M., Martinez, C., 2013. Voluntary savings, financial behavior, and pension finance literacy: evidence from Chile. J. Pension Econ. Finance 12,
Levine, R., 2005. Finance and growth: theory and evidence. In: Aghion, P., Durlauf, S. (Eds.), Handbook of Economic Growth. Vol. 1A, Chapter 12 Elsevier (865–34).
Lusardi, A., Mitchell, O.S., 2007. Baby boomer retirement security: the roles of planning, financial literacy, and housing wealth. J. Monet. Econ. 54, 205–224.
Lusardi, A., Mitchell, O.S., 2011. Financial literacy around the world: an overview. J. Pension Econ. Finance 10, 497–508.
Lusardi, A., Mitchell, O.S., 2014. The economic importance of financial literacy: theory and evidence. J. Econ. Lit. 52, 5–44.
Lusardi, A., Mitchell, O.S., 2017. How ordinary consumers make complex economic decisions: financial literacy and retirement readiness. Q. J. Finance 7 (03), 175008.
Lusardi, A., Tufano, P., 2015. Debt literacy, financial experiences, and over indebtedness. J. Pension Econ. Finance 14, 332–368.
Lusardia, and O. S. Mitchell, “Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth," Journal of Monetary Economics, vol. 54, no. 1, pp. 205-224, 2007.
Lusardia, and O. S. Mitchell, “The economic importance of financial literacy: theory and evidence," Journal of Economic Literature, vol. 52, no. 1, pp. 5-44, 2014.
McNair, B. Summers, W.B. Bruin, and R. Ranyard, “Individual-level factors predicting consumer financial behavior at a time of high pressure," Personality and Individual Differences, vol. 99, pp. 211-216, 2016.
Meier, S., Sprenger, C.D., 2013. Discounting financial literacy: time preference and participation in financial education programs. J. Econ. Behav. Organ. 95, 159–174.
Muneer, S., Basheer, M. F., Shabbir, R., & Zeb, A. (2019). Does Information Technology Expedite the Internal Audit System? Determinants of Internal Audit Effectiveness: Evidence from Pakistani Banking Industry. Dialogue (1819-6462), 14(2).
Neymotin, “Linking self-esteem with the tendency to engage in financial planning," Journal of Economic Psychology, vol. 31, no. 6, pp. 996-1007, 2010.
Parker, W. B. Bruin, J. Yoong, and R. Willis,“Inappropriate Confidence and Retirement Planning: Four Studies with a National Sample," Journal of Behavioral Decision Making, vol. 25, no. 4, pp. 382-389, 2012.
Ravallion, M., 2010. The developing World's bulging (but vulnerable) middle class. World Dev. 38, 445–454.
Robb, and A. S. Woodyard, “Financial knowledge and best practice behavior," Journal of Financial Counseling and Planning, vol. 22, no. 1, pp. 60-70, 2011.
Rosenberg, C. Schooler, C. Schoenbach, and F. Rosenberg, “Global Self-Esteem and Specific Self-Esteem: Different Concepts, Different Outcomes," American Sociological Review, vol. 60, no. 1, pp. 141-156, 1995.
Stango, V., Zinman, J., 2009. Exponential growth bias and household finance. J. Financ. 64, 2807–2849.
Strömbäck, T. Linda, K. Skagerlund, D. Västfjäll, G. Tinghög, “Does self-control predict financial behavior and financial well-being?" Journal of Behavioral and Experimental Finance, vol. 14, pp. 30-38, 2017.
Tang, A. Baker, and P. C. Peter, “Investigating the Disconnect between Financial Knowledge and Behavior: The Role of Parental Influence and Psychological Characteristics in Responsible
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2011a. Financial literacy and stock market participation. J. Financ. Econ. 101, 449–472.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2011b. Financial literacy and retirement planning in the Netherlands. J. Econ. Psychol. 32, 593–608.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2012. Financial literacy, retirement planning and household wealth. Econ. J. 122, 449–478.
Ackert, L. F., Church, B. K., &Deaves, R. (2003). Emotion and financial markets. Federal Reserve Bank of Atlanta Economic Review, 88, 33–41. Retrieved from q203.pdf
Ameriks, J., Caplin, A., Leahy, J., 2003. Wealth accumulation and the propensity to plan. Q. J. Econ. 118, 1007–1047.
Amin, Z., Constable, R. T., &Canli., T. (2004). Attentional bias forvalenced stimuli as a function of personality in the dot-probe task. Journal of Research in Personality, 38, 15–23.
Amir, N., McNally, R. J., Riemann, B. C., Burns, J., Lorenz, M., & Mullen, J. T. (1996). Suppression of the emotional Stroop effect by increased anxiety in patients with social phobia. Behaviour Research and Therapy, 34, 945–948.
Asaad, “Financial literacy and financial behavior: Assessing knowledge and confidence," Financial Services Review, vol. 24, pp. 101-117, 2015.
Baker, P. M., &Hagedorn, R. B. (2008). Attitudes to money in a random sample of adults: Factor analysis of the MAS and MBBS scales, and correlations with demographic variables. Journal of Socio- Economics, 37, 1803–1814.
Bandura, “Self-efficacy mechanism in human agency," American Psychologist, vol. 37, no. 2, pp. 122-147, 1982.
Banerjee, A., Duflo, E., 2008. What is Middle-class about the Middle-classes around the World. J. Econ. Perspect. 22 (2), 3–28.
Basheer, M. F., Hafeez, M. H., Hassan, S. G., & Haroon, U. (2018). Exploring the role of TQM and supply chain practices for firm supply performance in the presence of organizational learning capabilities: a case of textile firms in Pakistan. Paradigms, 12(2), 172-178.
Basheer, M., Siam, M., Awn, A., & Hassan, S. (2019). Exploring the role of TQM and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in Pakistan. Uncertain Supply Chain Management, 7(2), 275-288.
Baumeister, J. D. Campbell, J. I. Krueger, and K. E. Vohs, “Does High Self-Esteem Cause Better Performance, Interpersonal Success, Happiness, or Healthier Lifestyles?" Psychological Science in the Public Interest, vol. 4, no. 1, pp. 1-44, 2003.
Baumeister, R. F., Campbell, J. D., Krueger, J. I., &Vohs, K. D. (2003). Does high self-esteem cause better performance, interpersonal success, happiness, or healthier lifestyles?. Psychological science in the public interest, 4(1), 1-44.
Baumler, G. (1985). Farbe-Wort-Interferenztest(WIT) nach J. R. Stroop. Gottingen, Germany: Verlag fur PsychologieHogrefe. Beal, D. J., &Delphachitra, S. B. (2003). Financial literacy among Australian university students. Economic Papers, 22, 65–78.
Beckmann, E., 2013. Financial literacy and household savings in Romania. Numeracy 6 (2), 9.
Behrman, J.R., Mitchell, O.S., Soo, C.K., Bravo, D., 2010. Financial Literacy, Schooling and Wealth Accumulation, NBER Working Paper. 16452.
Bernheim, B.D., Garrett, D.M., Maki, D.M., 2001. Education and saving: the long-term effects of high school financial curriculum mandates. J. Public Econ. 80,
Brounen, K. G. Koedijk, and R. A. J. Pownall, “Household financial planning and savings behavior," Journal of International Money and Finance, vol. 69, pp. 95-107, 2016.
Brown, and K. Taylor, “Household finances and the `Big Five' personality traits," Journal of Economic Psychology, vol. 45, pp. 197-212, 2014.
Bucher-Koenen, T., Lusardi, A., 2015. Financial literacy and retirement planning in Germany. J. Pension Econ. Finance 10, 565–584.
Burchell, B. J. (2002). Results of 300 telephone Interviews: Attitudes, knowledge and emotions concerning personal finance. Unpublished report. Retrieved from SummaryofResultsof300TelephoneInterviews.pdf
Burchell, B. J. (2003). Identifying, describing and understanding financial aversion: Financial phobes. Report for EGG. Retrieved from bb101/FinancialAversionReportBurchell.pdf
Campbell, J.Y., 2006. Household finance. J. Financ. 61, 1553–1604.
Carpena, F., Cole, S., Shapiro, J., Zia, B., 2011. Unpacking the Causal Chain of Financial Literacy, World Bank Policy Research Paper. 5798.
Christiansen, C., SchröterJoensen, J., Rangvid, J., 2008. Are economists more likely to hold stocks. Rev. Finan. 12, 465–496.
Chun, N., Hasan, R., Habibur Rahman, M., Ulubasoglu, M.A., 2017. The role of middle class in economic development: what do cross-country data show? Rev. Dev.
Cole, S., Sampson, T., Zia, B., 2011. Prices or knowledge? What drives demand for financial services in emerging markets? J. Financ. 66, 1933–1967.
Costello, C. G., &Devins, G. M. (1989). Screening for depression among women attending their family physicians. Canadian Journal of BehaviouralScience, 21, 434–451.
Damasio, A. R. (1994). Descartes error: Emotion, reason, and the human brain. New York, NY:
Davies, E., & Lea, S. E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology, 16, 663–679.
De Ruiter, C., &Brosschot, J. F. (1994). The emotional Stroop interference effect in anxiety: Attentional bias or cognitive avoidance? Behaviour Research and Therapy, 32, 315–319.
Di Paula, and J. D. Campbell, “Self-esteem and persistence in the face of failure," Journal of Personality and Social Psychology, vol. 16, pp. 15-38, 2003.
Disney, R., Gathergood, J., 2013. Financial literacy and consumer credit portfolios. J. Bank. Financ. 37, 2246–2254.
Dohmen, T., Falk, A., Huffmann, D., Sunde, U., Schupp, J., Wagner, G.G., 2011. Individual risk attitudes: measurement, determinants and behavioral consequences. J.
Drago, “Self-esteem and earnings," Journal of Economic Psychology, vol. 32, no. 3, pp. 480-488, 2011.
Ehrman, R. N., Robbins, S. J., Bromwell, M. A., Lankford, M. E., Monterosso, J. R., & O’Brien, C. P. (2002). Comparing attentional bias to smoking cues in current smokers, former smokers, and non-smokers using a dot-probe task. Drug and Alcohol Dependence, 67, 185–191.
Faul, F., &Erdfelder, E. (1992). GPOWER: A priori, post-hoc, and compromise power analyses for MSDOS [Computer program]. Bonn, FRG: Bonn University, Dept. of Psychology.
Fernandes, D., Lynch Jr., J.G., Netemeyer, R.G., 2014. Financial literacy, financial education and downstream financial behaviors. Manag. Sci. 60, 1861–1883.
Financial Behaviors among Young Adults," The Journal of Consumer Affairs, vol. 49, no. 2, pp. 376-406, 2015.
Fox, E. (1993). Attentional bias in anxiety: Selective or not? Behaviour Research and Therapy, 31, 487– 493.
Furnham, A. (1984). Many sides to the coin: The psychology of money ssage. Personality and Individual Differences, 5, 501–509.
Garman, E. T., Leech, I. E., & Grable, J. E. (1996). The negative impact of employee poor personal financial behaviors on employers. Financial Counseling and Planning, 7, 157–168.
Gathergood, J., 2012. Self-control, financial literacy and consumer over-indebtedness. J. Econ. Psychol. 33, 590–602.
Grohmann, A., Huebler, O., Kouwenberg, R., Menkhoff, L., 2016. Financial literacy. In: Thai Middle Class Women do not Lag Behind, DIW Working Paper Series No.
Grohmann, A., Kouwenberg, R., Menkhoff, L., 2015. Childhood roots of financial literacy. J. Econ. Psychol. 51, 114–133.
Guiso, L., Jappelli, T., 2008. Financial Literacy and Portfolio Choice, EUI Working Papers, ECO2008/31.
Guiso, L., Sodini, P., 2013. Household finance: an emerging field. In: Constantinides, George M., Harris, Milton, Stulz, Rene M. (Eds.), Handbook of the Economics of
Guo, H., Zhu, G., Hewitt, I. J., & Qiu, S. (2009). “Twin copper source” growth of metal− organic framework membrane: Cu3 (BTC) 2 with high permeability and selectivity for recycling H2. Journal of the American Chemical Society, 131(5), 1646-1647.
Guo, H., Zhu, G., Hewitt, I. J., & Qiu, S. (2009). “Twin copper source” growth of metal− organic framework membrane: Cu3 (BTC) 2 with high permeability and selectivity for recycling H2. Journal of the American Chemical Society, 131(5), 1646-1647.
Gustman, A.L., Steinmeier, T.L., Tabatabai, N., 2012. Financial knowledge and financial literacy at the household level. Am. Econ. Rev. Pap. Proc. 102 (3), 309–313.
Hadar, S. Sood, and C. R. Fox, “Subjective Knowledge in Consumer Financial Decisions," Journal of Marketing Research, vol. 50, no. 3, pp. 303-316, 2013.
Hafeez, M. H., Basheer, M. F., Rafique, M., & Siddiqui, S. H. (2018). Exploring the Links between TQM Practices, Business Innovativeness and Firm Performance: An Emerging Market Perspective. Pakistan Journal of Social Sciences (PJSS), 38(2).
Hair, W. C. Black, B. J. Babin, and R. E. Anderson, “Multivariate data analysis," 7th edition, Pearson Prentice Hall, Upper Saddle River, 2010.
Hanoch, Y. (2002). Neither an angel nor an ant: Emotion as an aid to bounded rationality. Journal of Economic Psychology, 23, 1–25.
Hardeweg, B., Menkhoff, L., Waibel, H., 2013. Experimentally validated survey evidence on individual risk attitudes in rural Thailand. Econ. Dev. Cult. Chang. 61,
Hastings, J., & Tejeda-Ashton, L. (2008). Financial literacy, information, and demand elasticity: Survey and experimental evidence from Mexico. (NBER Working Paper 14538). Cambridge, MA: National Bureau of Economic Research.
Hastings, J.S., Tejeda-Ashton, L., 2008. Financial Literacy, Information and Demand Elasticity: Survey and Experimental Evidence From Mexico, NBER Working Paper
Heinrich, M. C., Owzar, K., Corless, C. L., Hollis, D., Borden, E. C., Fletcher, C. D., ... & Benjamin, R. S. (2008). Correlation of kinase genotype and clinical outcome in the North American Intergroup Phase III Trial of imatinibmesylate for treatment of advanced gastrointestinal stromal tumor: CALGB 150105 Study by Cancer and Leukemia Group B and Southwest Oncology Group. Journal of clinical oncology, 26(33), 5360.
Henry, R. A., Weber, J. G., & Yarbrough, D. (2001, June). Money management practices of college students: Statistical data included. College Student Journal, 7–14.
Hewitt, H. T., Copsey, D., Culverwell, I. D., Harris, C. M., Hill, R. S. R., Keen, A. B., ... & Hunke, E. C. (2011). Design and implementation of the infrastructure of HadGEM3: The next-generation Met Office climate modelling system. Geoscientific Model Development, 4(2), 223-253.
Hilgert, J. M. Hogarth, and S. G. Beverly, “Household financial management: The connection between knowledge and behavior," Federal Reserve Bulletin, vol. 89, pp. 309-322, 2003.
Jappelli, T., Padula, M., 2013. Investment in financial literacy and saving decisions. J. Bank. Financ. 37, 2779–2792.
Jenkins, R., Bhugra, D., Bebbington, P., Brugha, T., Farrell, M., Coid, J., . . . Meltzer, H. (2008). Debt income and mental disorder in the general population. Psychological Medicine, 38, 1485–1493.
Johnson, and M. S. Sherraden, “From financial literacy to financial capability among youth," Journal of Sociology and Social Welfare, vol. 34, no. 3, pp. 119-145, 2007.
Jones, “College students' knowledge and use of credit,"Journal of Financial Counseling and Planning, vol. 16, no. 2, pp. 9-16, 2005.
Joo, S., & Grable, J. E. (2000). Improving employee productivity: The role of financial counseling and education. Journal of Employment Counseling, 37, 2–15.
Jöreskog, D. Sörbom, “LISREL 8: structural equationmodeling with the SIMPLIS command language," Lincolnwood, IL: Scientific Software International, 1989.
Jorgensen, B. L. (2007). Financial literacy of college students: Parental and peer influences. (Unpublished doctorial dissertation). Virginia Polytechnic Institute and State University, Blacksburg, VA.
Jump$tart Coalition. (2004). 2004 Personal financial survey of high school seniors. Washington, DC: Jump$tartCoalition for Personal Financial Literacy.
Kaiser, Tim, Menkhoff, Lukas, 2017. Does financial education impact financial literacy, and if so, when? World Bank Econ. Rev. 31 (3), 611–630.
Kharas, H., 2010. The Emerging Middle Class in Developing Countries, OECD Development Centre, Working Paper 285.
Kharas, H., Gertz, G., 2010. The new global middle class: a cross-over from west to east. In: Li, Cheng (Ed.), China's Emerging Middle Class: Beyond Economic
Kindt, M., Bierman, D., &Brosschot, J. F. (1996). StroopversusStroop: Comparison of a card format and a single-trial format of the Standard Color-Word StroopTask and the Emotional Stroop Task. Personality and Individual Differences, 21, 653–661.
Klapper, L., Lusardi, A., Panos, G.A., 2013. Financial literacy and its consequences: evidence from Russia during the financial crisis. J. Bank. Financ. 37, 3904–3923.
Klapper, L., Panos, G.A., 2011. Financial literacy and retirement planning: the Russian case. J. Pension Econ. Finance 10, 599–618.
Klapper, Leora and Georgios A. Panos, Financial Literacy and Retirement Planning: The Russion Case, J. Pension Econ. Financ., forthcoming.
Landerretche, O.M., Martinez, C., 2013. Voluntary savings, financial behavior, and pension finance literacy: evidence from Chile. J. Pension Econ. Finance 12,
Levine, R., 2005. Finance and growth: theory and evidence. In: Aghion, P., Durlauf, S. (Eds.), Handbook of Economic Growth. Vol. 1A, Chapter 12 Elsevier (865–34).
Lusardi, A., Mitchell, O.S., 2007. Baby boomer retirement security: the roles of planning, financial literacy, and housing wealth. J. Monet. Econ. 54, 205–224.
Lusardi, A., Mitchell, O.S., 2011. Financial literacy around the world: an overview. J. Pension Econ. Finance 10, 497–508.
Lusardi, A., Mitchell, O.S., 2014. The economic importance of financial literacy: theory and evidence. J. Econ. Lit. 52, 5–44.
Lusardi, A., Mitchell, O.S., 2017. How ordinary consumers make complex economic decisions: financial literacy and retirement readiness. Q. J. Finance 7 (03), 175008.
Lusardi, A., Tufano, P., 2015. Debt literacy, financial experiences, and over indebtedness. J. Pension Econ. Finance 14, 332–368.
Lusardia, and O. S. Mitchell, “Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth," Journal of Monetary Economics, vol. 54, no. 1, pp. 205-224, 2007.
Lusardia, and O. S. Mitchell, “The economic importance of financial literacy: theory and evidence," Journal of Economic Literature, vol. 52, no. 1, pp. 5-44, 2014.
McNair, B. Summers, W.B. Bruin, and R. Ranyard, “Individual-level factors predicting consumer financial behavior at a time of high pressure," Personality and Individual Differences, vol. 99, pp. 211-216, 2016.
Meier, S., Sprenger, C.D., 2013. Discounting financial literacy: time preference and participation in financial education programs. J. Econ. Behav. Organ. 95, 159–174.
Muneer, S., Basheer, M. F., Shabbir, R., & Zeb, A. (2019). Does Information Technology Expedite the Internal Audit System? Determinants of Internal Audit Effectiveness: Evidence from Pakistani Banking Industry. Dialogue (1819-6462), 14(2).
Neymotin, “Linking self-esteem with the tendency to engage in financial planning," Journal of Economic Psychology, vol. 31, no. 6, pp. 996-1007, 2010.
Parker, W. B. Bruin, J. Yoong, and R. Willis,“Inappropriate Confidence and Retirement Planning: Four Studies with a National Sample," Journal of Behavioral Decision Making, vol. 25, no. 4, pp. 382-389, 2012.
Ravallion, M., 2010. The developing World's bulging (but vulnerable) middle class. World Dev. 38, 445–454.
Robb, and A. S. Woodyard, “Financial knowledge and best practice behavior," Journal of Financial Counseling and Planning, vol. 22, no. 1, pp. 60-70, 2011.
Rosenberg, C. Schooler, C. Schoenbach, and F. Rosenberg, “Global Self-Esteem and Specific Self-Esteem: Different Concepts, Different Outcomes," American Sociological Review, vol. 60, no. 1, pp. 141-156, 1995.
Stango, V., Zinman, J., 2009. Exponential growth bias and household finance. J. Financ. 64, 2807–2849.
Strömbäck, T. Linda, K. Skagerlund, D. Västfjäll, G. Tinghög, “Does self-control predict financial behavior and financial well-being?" Journal of Behavioral and Experimental Finance, vol. 14, pp. 30-38, 2017.
Tang, A. Baker, and P. C. Peter, “Investigating the Disconnect between Financial Knowledge and Behavior: The Role of Parental Influence and Psychological Characteristics in Responsible
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2011a. Financial literacy and stock market participation. J. Financ. Econ. 101, 449–472.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2011b. Financial literacy and retirement planning in the Netherlands. J. Econ. Psychol. 32, 593–608.
Van Rooij, M.C.J., Lusardi, A., Alessie, R., 2012. Financial literacy, retirement planning and household wealth. Econ. J. 122, 449–478.
Published
2020-10-21
How to Cite
Dr. Huma Ali1, Sabih.ul.hassan, Dr. Muhammad Shaukat Malik, Dr Muhammad Mubbashar. (2020). IMPACT OF COGNITIVE FACTORS ON FINANCIAL BEHAVIOR WITH MEDIATING ROLE OF FINANCIAL ANXIETY. Epistemology, 7(3), 82-99. Retrieved from https://journal.epistemology.pk/index.php/epistemology/article/view/134
Section
Articles
