Impact of Financial Threat on the Change of Investor Behavior: The Moderating Effect of Social Support During Covid-19 in Pakistan

Impacto de la amenaza financiera en el cambio de comportamiento del inversor: el efecto moderador del apoyo social durante la Covid-19 en Pakistán

Main Article Content

Shaukat Malik
Huma Ali, Dr.
Zeeshan Rasool


This paper purpose is to investigate the background of financial threat and its relationship to the indi-vidual ́s proclivity to change their financial behavior and health. Study population includes small investors in life insurance policies. Explanatory research design is used to know the causal relationship between all the variables. Primary data collected through questionnaires applied personally to the respondents were used. Respondents were randomly selected and questionnaires were appropriately applied to make easier data collection. Different Smart PLS3 data techniques were used for data inferences. This study explores that both economic problems and finan-cial anxiety are definitely associated with financial threat, and that financial threat is also significantly related to willingness to change financial behavior and psychological distress. This research reveals likewise that financial threat mediates between both independent and dependent variables. The most novel contribution of this study is the role of social support which significantly moderates the relationship between financial threat and the willingness to change financial behavior. This study is an important input in existing literature about financial threats, it provides excellent practical suggestions for household individual investors and highlights the problems experienced by these small investors.



Download data is not yet available.

Article Details

References (SEE)

Ahnquist, J., & Wamala, S. P. (2011). Economic Hardships in Adulthood and Mental Health in Sweden. the Swedish National Public Health Survey 2009. BMC Public Health, 11(1), 1-11.

Ahnquist, J., Wamala, S. P., & Lindstrom, M. (2012). Social Determinants pf Health. A Question of Social or Economic Capital? Interaction Effects of Socioeconomic Factors on Health Outcomes. Social Science & Medicine, 74(6), 930-939.

Ajduković, M., Raiter, M. & Rezo, I. (2018). Individual and Contextual Factors for the Child Abuse Potential of Croatian Mothers: The Role of Social Support in Times of Economic Hardship. Child Abuse & Neglect , 78, 60-70.

Andrews, G. & Slade, T. (2001). Interpreting Scores on the Kessler Psychological Distress Scale (K10). Australian and New Zealand Journal of Public Health, 25(6), 494-497.

Archuleta, K. L. (2013). College Students and Financial Distress: Exploring Debt, Financial Satisfaction, and Financial Anxiety. Journal of Financial Counseling and Planning, 24(2), 50-62.

Baruch, Y. & Lambert, R. (2007). Organizational Anxiety: Applying Psychological Concepts Into Organizational Theory. Journal of Managerial Psychology, 22(1),84-99.

Britt, S. L. (2015). Financial Stress and Financial Counseling: Helping College Students. Journal of Financial Counseling and Planning, 26(2), 172-186.

Bujisic, M., Bogicevic, V., Wan, Y., Cobanoglu, C. & Bilgihan, A. (2017). “Hobson’s Choice” Servicescape: Consumer Anxiety and Enjoyment. Journal of Consumer Marketing, 34(7).

Carleton, N., Peter, M.A., Norton, J., Gordon, J. & Asmundson, G. (2007). Fearing the Unknown: A Short Version of the Intolerance of Uncertainty Scale. Journal of anxiety disorders , 21(1), 105-117.

Coetzer, R., Carroll, E., & Ruddle, J. A. (2011). Depression, Anxiety And Employment Status After Traumatic Brain Injury. Social Care and Neurodisability, 2(4), 200-207.

Crowe, L. &. (2016). The Role of Financial Hardship, Mastery and Social Support in the Association Between Employment Status and Depression: Results from An Australian Longitudinal Cohort Study. BMJ Open, 6(5), e009834.

Denollet, J., Schiffer, A. & Spek, V. (2010). A General Propensity to Psychological Distress Affects Cardiovascular Outcomes: Evidence From Research on the Type D (Distressed) Personality Profile. Circulation: Cardiovascular Quality and Outcomes, 3(5), 546-557.

Egan, M., Daly, M. & Delaney, L. (2015). Childhood Psychological Distress and Youth Unemployment: Evidence From Two British Cohort Studies. Social Science & Medicine, 124, 11-17.

Feeney, B. C. & Collins, N. L. (2015). A New Look at Social Support: A Theoretical Perspective on Thriving Through Relationships. Personality and Social Psychology Review, 19(2), 113-147.

Fiksenbaum, L., Marjanovic, Z. & Greenglass, E. (2017). Financial Threat and Individuals’ Willingness to Change Financial Behavior. Review of Behavioral Finance, 9(2), 3-41.

Fiksenbaum, L., Marjanovic, Z., Greenglass, E. & García-Santos, F. (2017). Impact of Economic Hardship and Financial Threat on Suicide Ideation and Confusion. The Journal of Psychology, 151(5), 477-495.

Grable, J., Heo, W. & Rabbani, A. (2015). Financial Anxiety, Physiological Arousal, and Planning Intention. Journal of Financial Therapy , 5(2), 2.

Henseler, J., Ringle, C. & Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance Based Structural Equation Modeling. Journal of Academy Of Marketing, 43, 115-135.

Ishtiaq, M., Tufail, M. S., Shahzad, K., & Naseer, M. A. (2019). Impact of Financial Threat on Individual’s Willingness to Change Financial Behavior. Dialogue (1819-6462), 14(2).

Karanikolos, M., Mladovsky, P., Cylus, J., Thomson, S., Basu, S., Stuckler, D., Mackenbach, J. P. & McKee, M. (2013). Financial Crisis, Austerity, and Health in Europe. In European Observatory on Health Systems and Policies (Ed.), Health Europe 7 (pp. 1-9). European Observatory on Health Systems and Policies.

Lakey, B. & Cronin, A. (2008). Low Social Support and Major Depression: Research, Theory and Mehtodological Issues. In Risk Factors In Depression (pp. 385-408). Elsevier.

Lemoine, J., Darriet, E., Kmiec, R. & Roland-Lévy, C. (2016). Financial Threat During the Economic Crisis: Connections with the Social Representation of the Economic Crisis and the Willingness to Act. International Review of Social Psychology, 29(1), 113-126.

Lim, H. H. (2014). Financial Stress, Self-Efficacy, and Financial Help-Seeking Behavior of College Students. Journal of Financial Counseling and Planning, 25(2), 148-160.

Maier, C. L. (2015). Giving Too Much Social Support: Social Overload on Social Networking Sites. European Journal of Information Systems, 24(5), 447-464.

Mamun, M. A. (2020). COVID-19 Suicides in Pakistan, Dying Off not COVID-19 Fear But Poverty?–The Forthcoming Economic Challenges for A Developing Country. Brain, Behavior, and Imm Dunity.

Marjanovic, Z., Greenglass E. R., Fiksenbaum, L., & Bell, C. M. (2013). Psychometric Evaluation of the Financial Threat Scale (FTS) in the Context of the Great Recession. Journal of Economic Psychology , 1-10(36).

Marjanovic, Z., Greenglass E. R., Fiksenbaum, L., De Witte, H., García-Santos, F., Buchwald, P., Peiró, J. M. & Mañas, M. A. (2015). Evaluation of the Financial Threat Scale (FTS) in Four European, Non-Student Samples. Journal of Behavioral and Experimental Economics, 55(72-80).

Marum, G., Clench-Aas, J., Nes R. B., & Raanaas, R. K. (2014). The Relationship Between Negative Life Events, Psychological Distress and Life Satisfaction: A Population-Based Study. Qual. Life Res., 23(2), 601-11.

Mathew, D. (2012). From Fatigue to Anxiety? Implications for Educational Design in a Web 2.0 World. Interactive Technology and Smart Education, 9(2), 112-120.

Mohd, H. A., & Fadilah, P. (July, 2017). Quantitative Data Analysis: Choosing Between SPSS, PLS and AMOS in Social Science Research. International Interdisciplinary Journal of Scientific Research, 3(1), 14-25.

Muhammad, I., Muhammd, S. T., Khurram, S., & Muhammad, A. N. (2020). Impact of Financial Threaton Individuals Willingness to Change Financial Behavior. The Dialogue, 14(2).

Pallant, J. F. (2007). SPSS Survival Manual: A Step-By-Step Guide to Data Analysis with SPSS. McGraw Hill.

Procter, L. A. (2019). Understanding Use of Consumer Protection Tools Among Internet Gambling Customers: Utility of the Theory of Planned Behavior and Theory of Reasoned Action. Addictive Behaviors, 99, 106050.

Pudrovska, T., Schieman, S., Pearlin, L. I. & Nguyen K. (2005). The Sense of Mastery as a Mediator and Moderator in the Association Between Economic Hardships and Health in Late Life. Journal of Aging And Health, 1-29.

Rana, S. (2020, April 12). Pakistan May Fall into A Recession Due to COVID-19. World Bank.

Rascle, N., Bruchon-Schweitzer, M. & Sarason, I. (2015). Short form of Sarason’s Social Support Questionnaire: French adaptation and validation. Psychological Reports, 97(1), 195-202.

Rios, R. & Zautra, A. J. (2011). Socioeconomic Disparities in Pain: The Role of Economic Hardship and Daily Financial Worry. Health Psychology, 30(1), 58.

Rustøen, T., Bruce, Coper A., Miaskowski, C. & Faan, R. N. (2010). The Importance of Hope as a Mediator of Psychological Distress and Life Satisfaction in a Community Sample of Cancer Patients. Cancer Nursing, 33(4), 258-267.

Schaner, S. (2018). The Persistent Power of Behavioral Change: Long-Run Impacts of Temporary Savings Subsidies for the Poor. American Economic Journal: Applied Economics, 10(3), 67-100.

Shapiro, G. K. & Burchell, B. J. (2012). Measuring Financial Anxiety. Journal of Neuroscience, Psychology, and Economics , 5(2), 92-103.

Tang, J. H. (2016). Personality Traits, Interpersonal Relationships, Online Social Support, and Facebook Addiction. Telematics and Informatics, 33(1), 102-108.

UNDP. (2020, April). COVID-19: Looming Crisis in Developing Countries Threatens to Devastate Economies and Ramp Up nequality.

Viseu, J., Leal, R., Neves, S., Pinto, P., Pechorro, P. & Greenglass, E. (2018). Relationship Between Economic Stress Factors and Stress, Anxiety, and Depression: Moderating Role of Social Support. Psychiatry Research, (416), 736-2100.

Williams, K. C. (2012). Fear Appeal Theory. Research in Business and Economics Journal, 5(1), 1-21.