International Journal of Nonlinear Analysis and Applications

Modeling factors affecting financial health using structural equations

Document Type : Research Paper

Authors

1 Department of Accounting, Faculty of Humanities, Khomein Branch, Islamic Azad University, Khomein, Iran

2 Department of Accounting, Faculty of Management, Arak Branch, Islamic Azad University, Arak, Iran

Abstract

Financial health is a state in which a person can fully meet their current and future financial obligations and, at the same time, feel secure in their financial future, and the choices they make in this direction allow them to enjoy life. Considering the importance of financial health and its effect on the mental and physical health of people, the present research intends to model the factors affecting financial health with the help of structural equations. Active traders in the Tehran Stock Exchange with at least 5 years of trading experience are examined and questioned as a statistical population. Because the number of members of the statistical community is unlimited, therefore, using the Cochran sampling formula, the sample size will be determined, and the sample members will be selected using the simple random sampling method. In this study, the sample size is 384 people using Cochran's sampling formula. To analyse the data obtained from the distribution of the questionnaire, descriptive statistics indicators such as frequency, percentage, tables, and graphs have been used to review and analyse the information related to the general characteristics of the respondents. The relationships between research variables were tested using the Kolmogorov-Smirnov test, correlation test, confirmatory factor analysis, and structural equation modelling. The results showed that demographic components, personality components, financial sociability, financial knowledge, financial behavior, self-efficacy, financial factors, cultural factors and economic factors are among the most important factors affecting the financial health of people. The factors paid the necessary attention.

Keywords

[1] E. Aguila, M. Angrisani, and L.R. Blanco, Ownership of a bank account and health of older Hispanics, Econ. Lett. 144 (2016), 41–44.
[2] M. Ali, Z. Uddin, and A. Hossain, Economic stressors and mental health symptoms among Bangladeshi rehabilitation professionals: a cross-sectional study amid COVID-19 pandemic, Heliyon 7 (2021), no. 4.
[3] Y. Cao, Z.F. Ma, Y. Zhang, and Y. Zhang, Evaluation of lifestyle, attitude and stressful impact amid COVID-19 among adults in Shanghai, China, Int. J. Envir. Health Res. 32 (2022), no. 5, 1137–1146.
[4] M. Chilton, M. Knowles, and S.L. Bloom, The intergenerational circumstances of household food insecurity and adversity, J. Hunger Envir. Nutrition 12 (2017), no. 2, 269–297.
[5] D.A. Frank, P.H. Casey, M.M. Black, R. Rose-Jacobs, M. Chilton, D. Cutts, E. March, T. Heeren, S. Coleman, S.E. de Cuba, and J.T. Cook, Cumulative hardship and wellness of low-income, young children: multisite surveillance study, Pediatrics 125 (2010), no. 5, 1115–1123.
[6] J. Gardner and A. Oswald, Does money buy happiness? A longitudinal study using data on windfalls, Mimeo, Warwick University, 2001, Retrieved from: http://repec.org/res2002/Gardner.pdf.
[7] S. Gundert and C. Hohendanner, Active labour market policies and social integration in Germany: Do ‘One Euro-Jobs’ improve individuals’ sense of social integration?, Eur. Soc. Rev. 31 (2015), no. 6, 780–797.
[8] S.J. Heckman and S.D. Hanna, Individual and institutional factors related to low-income household saving behavior, J. Fin. Counsel. Plan. 26 (2015), no. 2.
[9] W. Johnson and R.F. Krueger, How money buys happiness: genetic and environmental processes linking finances and life satisfaction, J. Personal. Soc. Psycho. 90 (2006), no. 4, 680.
[10] S. Joo, Personal financial wellness, J.J. Xiao, (eds), Handbook of consumer finance research, New York, NY: Springer New York, 2008, 21–33.
[11] S. Khajavi and A. Mosalla Nejad, Financial coaching and financial therapy: differences and boundaries, Financ. Behav. Res. Account. 2 (2022), no. 2 (consecutive 5).
[12] H.-L. Liu, E.S. Lavender-Stott, C.L. Carotta, and A.S. Garcia, Leisure experience and participation and its contribution to stress-related growth amid COVID-19 pandemic, Leisure Stud. 41 (2022), no. 1, 70–84.
[13] H. Rashidi, J. Satari and M. Abdi, Investigating the impact of financial health and creditors’ rights on the efficiency of company investment in the Tehran Stock Exchange, First Nat. Conf. Health Promot. Legal Med. Challenges Facing it, Maragheh, 2023.
[14] S.B. Raskin, Why is the fed spending so much money on a dying industry?, New York Times 28 (2020).
[15] M. Reid, D.C. Jessop, and E. Miles, Explaining the negative impact of financial concern on undergraduates’ academic outcomes: Evidence for stress and belonging as mediators, J. Further Higher Educ. 44 (2020), no. 9, 1157–1187.
[16] L.I. Reutter, M.J. Stewart, G. Veenstra, R. Love, D. Raphael, and E. Makwarimba, “Who do they think we are, anyway?”: Perceptions of and responses to poverty stigma, Qual. Health Res. 19 (2009), no. 3, 297–311.
[17] E. Sam Aram, J. Hezarjaribi, M. Fadakar, M. Karami, and M.M. Shamsaei, Spiritual health: Framework, scope, and components based on the teachings of Islam, Soc. Dev. Welfare Plann. 4 (2013), no. 14, 1–26.
[18] M. Sandel, R. Sheward, S.E. de Cuba, S. Coleman, T. Heeren, M.M. Black, P.H. Casey, M. Chilton, J. Cook, D.B. Cutts, and R. Rose-Jacobs, Timing and duration of pre-and postnatal homelessness and the health of young children, Pediatrics 142 (2018), no. 4.
[19] A.B. Siddique, S.D. Nath, M.S. Islam, T.H. Khan, S. Pardhan, M. Ziaul Amin, M. Imran Al Amin, Z.B.Z. Shawon, and K.N. Koly, Financial difficulties correlate with mental health among Bangladeshi residents amid COVID-19 pandemic: Findings from a cross-sectional survey, Front. Psych. 12 (2021), 755357.
[20] G.M. Slavich, A. O’Donovan, E.S. Epel, and M.E. Kemeny, Black sheep get the blues: A psychobiological model of social rejection and depression, Neurosci. Biobehav. Rev. 35 (2010), no. 1, 39–45.
[21] M.J. Stewart, C.G. Maher, K.M. Refshauge, R.D. Herbert, and M.K. Nicholas, Patient and clinician treatment preferences do not moderate the effect of exercise treatment in chronic whiplash-associated disorders, Eur. J. Pain, 12 (2008), no. 7, 879–885.
[22] M.J. Stewart, E. Makwarimba, L.I. Reutter, G. Veenstra, D. Raphael, and R. Love, Poverty, sense of belonging and experiences of social isolation, J. Poverty 13 (2009), no. 2, 173–195.
[23] W. Vosloo, The relationship between financial efficacy, satisfaction with remuneration and personal financial well-being, PhD diss., The Potchefstroom Campus of the North-West University, 2014.
[24] E.B. Weida, P. Phojanakong, F. Patel, and M. Chilton, Financial health as a measurable social determinant of health, PloS One 15 (2020), no. 5, e0233359.
[25] World Health Organization, Mental health: A state of wellbeing, www.who.int/features/factfiles/mental health/en/, 2014.
[26] M.H. Zamani Harouni and H. Aflaki Fard, Investigating the impact of problems, situation and financial stress on the mental health of elementary school students: A case study of an elementary school in Abarkoh city, First Int. Conf. Psycho. Soc. Sci. Educ. Sci. Phil., Babylon, 2023.
International Journal of Nonlinear Analysis and Applications
Volume 16, Issue 12
December 2025
Pages 147-157
  • Receive Date: 24 April 2024
  • Accept Date: 04 July 2024