Assessing the Short-Term Stability of Financial Well-Being in Low- and Moderate-Income Households

Roll, Stephen; Kondratjeva, Olga; Bufe, Sam; Grinstein‐Weiss, Michal; Skees, Stephanie

doi:10.1007/s10834-021-09760-w

Cited by 22 publications

(18 citation statements)

References 67 publications

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“…2.3.3 Age and FWB. When it comes to age, most studies have concluded that FWB improves with age (Arber et al, 2014;Collins and Urban, 2020; Fouch e and Manyaapelo, 2020; Roll et al, 2022), which is consistent with improvements in financial development and human capital and an increase in the accrual of savings. Malone et al (2010) studied older women and found that this cohort feels a greater degree of financial security and has significantly fewer worries as far as finances are concerned than men.…”

Section: Gender Age and Financial Well-beingmentioning

confidence: 77%

Using item response theory in the assessment of the financial well-being scale: an application in Brazil and India

Soni

Mahapatra

Sarkar

2023

IJBM

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PurposeThis study aims to evaluate Netemeyer and colleagues' much cited financial well-being scale in Brazil and India and compare responses from different demographics. It also compares the results using two analysis techniques, item response theory (IRT) and confirmatory factor analysis (CFA).Design/methodology/approachA total of 994 survey responses from Brazil and 1,081 from India were collected. IRT and CFA models were used to analyse the data.FindingsThe results demonstrate the two-dimensional structure of the financial well-being scale and show that different items are differentially useful in measuring the construct across different groups. These findings may support the scale's future refinement and use in applied studies that will target specific groups (e.g. males, females, younger respondents and older respondents).Research limitations/implicationsThis study serves as an example to others who can explore the advantages of IRT over classical test theory methods to assess the psychometric properties of scales aimed at measuring latent constructs of interest in the field of marketing.Practical implicationsThe correct diagnosis of financial well-being is important to guide interventions by governments and non-governmental entities, as well as by financial institutions interested in better understanding individuals.Originality/valueThe authors show how the identification of the characteristics of scale items provided by the IRT technique allows for a better understanding of its properties and how it can be improved.

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Section: Gender Age and Financial Well-beingmentioning

confidence: 77%

Using item response theory in the assessment of the financial well-being scale: an application in Brazil and India

Soni

Mahapatra

Sarkar

2023

IJBM

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“…Santacroce et al (2020) explain that individuals who experience high levels of financial stress, which tend to increase over time, will experience depression. Therefore, individuals who experience financial anxiety will show poor financial behaviour, such as not doing financial planning (Grable et al, 2015), budgeting, and saving (Roll et al, 2016). Another difference, financial stress tends to be short-term and is a response to a recognized threat, while financial anxiety can linger, and there seems to be no trigger.…”

Section: Theoretical Framework and Hypothesis Developmentmentioning

confidence: 99%

Perceived Income Adequacy, Family Support, Financial Anxiety, and Tax Non-Compliance of Indonesian Working Women During the Covid-19 Pandemic

Asmoro

2023

Business: Theory and Practice

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In high-risk situations like the Covid-19 epidemic, it is believed that perceived income adequacy, family support,financial anxiety, and tax non-compliance have a strong relationship. This study applies the Conservation of Resources (COR) theory in building research models to fill gaps in previous research. According to the COR theory, individuals safeguard the quality and quantity of their financial resources by avoiding threats to their existence, including taxes. Thus, maintaining limited financial resources during the Covid-19 pandemic to meet needs and wants leads to tax avoidance.The cross-sectional data were collected using an online survey and analyzed using the PLS-based SEM technique. Purposive sampling was used to identify 371 Indonesian working women for the study sample. The study’s findings confirmed that perceived income adequacy for current needs and wants and perceived family support directly impact financial anxiety. However, this study can only demonstrate the direct effect of perceived income adequacy for current wants and tax non-compliance. Financial anxiety has also been proven to mediate the relationship between the three exogenous factors and tax non-compliance. This study can strengthen the concept of COR theory, which has never been used to investigate tax non-compliance behaviour and can be considered by authorities to design tax policies that take gender into account to achieve tax compliance.

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“…Higher FA is correlated with higher debts as well as fewer assets and financial resources. It is also associated with financial habits for building assets and debt management (Roll et al , 2016). Theory suggests that financial stress could diminish the level of FS (Williams et al , 1996).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The fact is that finance is a notable source of stress in both developed and developing nations. For example, though the US economy has significantly recovered after the Great Recession, finance continues to be a common source of stress for many households in the country (Roll et al , 2016). Moreover, in Nigeria, lack of access to adequate finance by MSME owners has for long been noted among the key obstacles affecting the survival and growth of MSMEs.…”

Section: Introductionmentioning

confidence: 99%

Relative financial deprivation, financial anxiety and financial satisfaction: the role of access to Islamic financing among MSME owners amidst COVID-19

Mahmoud

Umar

Baita

et al. 2022

JIABR

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Purpose The purpose of this paper is to augment the present literature on the relationship between relative financial deprivation (RFD), financial anxiety (FA), access to Islamic financing (AIF) and financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners. Principally, the study examines the moderating role of AIF on the RFD–FS and FA–FS relationships. Design/methodology/approach Quantitative survey approach was used to collect data through self-administered questionnaires from MSME owners. Partial least square (PLS) structural equation modelling (SEM) version 3.2.7 was used to analyse 208 retrieved questionnaires. Findings The results confirm that the RFD–FS relationship is negatively significant, but the FA–FS relationship is not significant. However, the direct relationship between AIF and FS is positively significant. Conversely, AIF failed to moderate the RFD–FS and FA–FS relationships. Practical implications The study specifies that the existence of RFD will decrease the FS of MSME owners, and therefore, RFD should be eliminated at all costs. However, the greater the AIF, the stronger will be the FS of MSME owners. Thus, policymakers and owners of MSMEs should emphasize on AIF to foster FS. Nevertheless, AIF could not redirect the negative impact of RFD and FA on MSME owners’ FS. Originality/value This study, to the best of the authors’ knowledge, is the first to examine the moderating role of AIF on the RFD–FS and FA–FS relationships among MSME owners. Notwithstanding the importance of small business owners for economic development, the literature on MSME entrepreneurs FS has been neglected. This study also uncovers new theoretical knowledge by revealing the inability of AIF to alter the RFD–FS and FA–FS relationships.

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Assessing the Short-Term Stability of Financial Well-Being in Low- and Moderate-Income Households

Cited by 22 publications

References 67 publications

Using item response theory in the assessment of the financial well-being scale: an application in Brazil and India

Using item response theory in the assessment of the financial well-being scale: an application in Brazil and India

Perceived Income Adequacy, Family Support, Financial Anxiety, and Tax Non-Compliance of Indonesian Working Women During the Covid-19 Pandemic

Relative financial deprivation, financial anxiety and financial satisfaction: the role of access to Islamic financing among MSME owners amidst COVID-19

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