Search results

1 – 10 of over 73000
Article
Publication date: 29 August 2023

Randi L. Sims, William C. Hawks and Baiyun Gong

The purpose of this study is to investigate racial differences in the moderating role of factors linked with resilience on the relationship between economic stress and happiness…

Abstract

Purpose

The purpose of this study is to investigate racial differences in the moderating role of factors linked with resilience on the relationship between economic stress and happiness for Black and White residents of the USA.

Design/methodology/approach

Secondary data were downloaded from the World Values Survey Wave 7 for adult respondents living in the USA. The entire sample of respondents who self-identified as belonging to the Black race (n = 209) was statistically matched (based on sex – 50% male and average age – 39 years) with a similarly sized random sample of respondents who self-identified as belonging to the White race (n = 217).

Findings

The results suggest that economic stress had the potential to trigger a resilience response. However, the protective factors in the resilience process differed by race of the respondent. The relationship between economic stress and perceptions of neighborhood safety was conditional on level of control for the White sample. The relationship between economic stress and happiness for the Black sample was conditional on the importance of faith.

Originality/value

The study was able to demonstrate the importance of race-based contextual differences in the roles of faith and control in the resilience process. The findings also increase the understanding of how life circumstances and individual characteristics, including race, impact happiness and how much or little resilience may play a part in the achievement of happiness.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 43 no. 1
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 10 July 2017

Lisa Fiksenbaum, Zdravko Marjanovic and Esther Greenglass

Financial threat is defined as fearful-anxious uncertainty regarding one’s current and future financial situation. The purpose of this paper is to examine predictors and outcomes…

3765

Abstract

Purpose

Financial threat is defined as fearful-anxious uncertainty regarding one’s current and future financial situation. The purpose of this paper is to examine predictors and outcomes of financial threat in two samples of students who completed an online questionnaire for course credit. The theoretical model the authors proposed tested the association between personal debt, anxiety, and economic hardship with financial threat, and in turn, financial threat’s relationship with willingness to change financial behavior (e.g. increase income, cut expenses, and reduce debt), job search activity, and psychological distress. Consistent across samples, structural equation modeling (SEM) revealed that the data fit the model and supported all four hypotheses. Debt, economic hardship, and anxiety were all related positively to financial threat, which itself related positively to willingness to change, job search, and psychological distress. Importantly, financial threat mediated the relationship between these economic-situational predictors and affective-behavioral outcomes of financial stain. Theoretical and practical implications of the findings are discussed.

Design/methodology/approach

Using an online questionnaire, participants completed measures of economic hardship, intolerance of uncertainty, job search behavior, financial threat, life satisfaction, general health, perceived stress, and willingness to change to financial behavior. The authors developed and tested a model that explores emotional and cognitive reactions to financial stressors following the recession.

Findings

Results of SEM revealed that the data fit the model and no modification indices were suggested. Examination of parameter estimates indicated that total debt, economic hardship, and anxiety were positively related to financial threat. Financial threat, in turn, positively related to willingness to change one’s financial behaviors, job search, and psychological distress. In addition, economic hardship and anxiety were positively related to psychological distress. That is, individuals who were feeling more threatened by their financial situation were more willing to change their financial situation and were more likely to engage in job search behavior. They were also more likely to report more psychological distress than individuals reporting lower levels of financial threat.

Research limitations/implications

This study was cross-sectional and therefore precludes causal interpretations of the findings. Longitudinal data with repeated assessments of all measures would help determine the direction of causation. Also, the study relied on self-report data, which is prone to bias. For example, it is possible that some participants did not know their exact debt levels, which may have resulted in an under- or overestimation of debt levels. Future research should extend this line of research using objective measures. While the model tested in this study examined the impact of economic factors on perceived threat, behavior, and psychological distress, it did not include social and psychological resources. For example, the authors did not include measures of social support, coping, or personality, which may moderate the impact of economic variables and stress on psychological distress. Although financial knowledge/literacy was not studied here, future research could include it since it has been associated with a variety of financial behaviors such as cash-flow management, credit management, saving, and investing. There is some evidence that financial literacy can decrease emotional stress and anxiety (Vitt et al., 2000).

Practical implications

The current study can help researchers and practitioners understand the concept of financial threat among university students. For example, if students have incurred student loans and debt and begin displaying symptoms of distress, like anxiousness, worry, and irritability, they could be referred to a professional experienced in working with emotional and behavioral disorders related to financial issues. It can also help practitioners gain an understanding and insight into clients’ poor financial decision making. Government could initiate programs that help individuals cope with the negative effects of unemployment. Given that young people are experiencing disproportionately high unemployment that can have a lasting adverse effect on employment prospects and future earnings, the current post-secondary curriculum needs to prepare young people for the world of work, and gain a footing in the labor market. One way to achieve this is through high-quality work experiences (e.g. internships/apprenticeships). Identifying ways to mitigate the effects of debt and economic hardship is also imperative. For example, money and debt advice may improve one’s financial circumstances, which, in turn, may improve their physical and psychological well-being.

Social implications

Future studies could focus on developing models predicting to financial stress using personality, psychological resources, and an objective measure of financial knowledge. Despite these limitations, this research demonstrates how emotional factors need to be included in economic models that also include debt and economic hardship. The study contributes to the economic and psychological literature by documenting how economic hardship and debt influence perceptions of threat, planned behavior, and psychological distress. The authors take a unique approach to describing economic hardship and financial threat as antecedents of distress, job search, and willingness to change. Future research could be directed toward employing the model for predicting behavior that would lessen economic stress and thereby leading to increased psychological well-being.

Originality/value

The study develops and tests an original theoretical model linking financial, emotional, and psychological variable in a comprehensive framework that is then tested empirically. This model is original with this paper.

Details

Review of Behavioral Finance, vol. 9 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Open Access
Article
Publication date: 8 March 2022

Flavio César Valerio Roncagliolo and Ricardo Norberto Villamonte Blas

The purpose of the paper is to examine the differences in the impact of financial stress in advanced and emerging economies.

2610

Abstract

Purpose

The purpose of the paper is to examine the differences in the impact of financial stress in advanced and emerging economies.

Design/methodology/approach

The authors employ a panel vector autoregression model (PVAR) for a comparative analysis of the relationship between financial stress, economic growth and monetary stability in 14 advanced and emerging economies. A homogeneous measure of financial stress is constructed and measured as an index that provides signals of stress episodes in an economy.

Findings

The impact of financial stress shocks is greater on the economic growth of advanced economies; likewise, financial stress shocks are significant only in advanced economies. The interbank interest rate is negatively affected by financial stress in emerging economies. In general, the results show a clear view of the importance of financial stability and the economic relevance of financial stress measures in the context of macro-prudential regulation.

Originality/value

The results can be extended to monetary policy to implement measures that mitigate the impact of future financial crises.

Details

Journal of Economics, Finance and Administrative Science, vol. 27 no. 53
Type: Research Article
ISSN: 2218-0648

Keywords

Article
Publication date: 4 January 2021

Pejman Bahramian, Andisheh Saliminezhad and Şule Aker

In spite of the certain risk imposed by financial stress on the real economy, the relationship between financial stress and economic activity is complicated and underresearched…

Abstract

Purpose

In spite of the certain risk imposed by financial stress on the real economy, the relationship between financial stress and economic activity is complicated and underresearched, meaning that important gaps still remain in the authors’ understanding of this critical relationship. Therefore, the current study aims to answer the significant question regarding whether a stressful financial sector has predictive power on the real sector and vice versa. Hence, the study examines the causal interrelationship between financial stress index (FSI) and economic activity in Luxembourg as a sample country.

Design/methodology/approach

In this study, accompanying the time domain Granger causality framework of Hacker and Hatemi-J (2012), the authors utilize the spectral causality technique of Breitung and Candelon (2006), which is based on the study of Geweke (1982) and Hosoya (1991). This method enables the researcher to measure the degree of a particular variation in time series. Moreover, it allows considering the nonlinearities and causality cycles. The authors further apply the recent method of Farné and Montanari (2018) that is a bootstrap framework on Granger-causality spectra, which allows for disambiguation in causalities.

Findings

The time-domain approach finds evidence of bidirectional causation between the variables. However, the spectral causality results indicate the causal linkages between the series are only valid under the medium-run frequency. This study’s findings emphasize covering the frequency causality to deliver a more comprehensive picture of the interrelationship between the variables.

Originality/value

There are many studies in this area that examine the nexus between financial stress and economic activity. However, the authors believe this paper is the first study in the context of Luxemburg. The authors focus on this country since its financial sector is designated as the most important pillar for the economy. Thus, a careful and reliable examination of the relationship between the financial sector and economic activity is likely to be of considerable interest to policymakers and researchers in this field.

Details

Journal of Economic Studies, vol. 49 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 13 November 2017

Amanjot Singh and Manjit Singh

The authors aim to report empirical linkages between the US and Brazil, Russia, India and China (BRIC) financial stress indices catalyzing catalyzing dependent economic policy…

Abstract

Purpose

The authors aim to report empirical linkages between the US and Brazil, Russia, India and China (BRIC) financial stress indices catalyzing catalyzing dependent economic policy initiatives (an extended version of Singh and Singh, 2017a).

Design/methodology/approach

Initially, the study develops financial stress indices for the respective BRIC financial markets. Later, it captures linkages among the said US-BRIC indices by using Johansen cointegration, vector autoregression/vector error correction models (VECM), generalized impulse response functions, Toda–Yamamoto Granger causality, variance decomposition analyses and bivariate generalized autoregressive conditional heteroskedasticity (GARCH) model under constant conditional correlation framework, in general. Markov regime switching and efficient causality tests proposed by Hill (2007) are also used.

Findings

Overall, there are both short-run and long-run dynamic interactions observed between the US and Indian financial stress indices. For rest of the markets, only short-run interactions are found to be in existence. The time-varying co-movement coefficients report financial contagion impact of the US financial crisis on Russian and Indian financial systems only. Contrary to this, Brazilian and Chinese financial systems are largely exhibiting interdependence with the US financial system. Efficient causality tests report indirect impact of the Russian financial system on Brazilian via auxiliary Indian financial system.

Originality/value

The present study is the first of its kind capturing linkages among the US-BRIC financial stress indices by using diverse econometric models. The results support different market participants and policymakers in understanding effectiveness and implementation of economic policies while considering their cross-market interactions as well.

Details

International Journal of Law and Management, vol. 59 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 9 October 2023

Ahmet Galip Gençyürek

The crude oil market plays a key role in addressing the issue of energy economics. This paper aims to detect the causality relationship between the crude oil market and economy…

Abstract

Purpose

The crude oil market plays a key role in addressing the issue of energy economics. This paper aims to detect the causality relationship between the crude oil market and economy based on the financial system.

Design/methodology/approach

This paper used the static and dynamic Hatemi-J Bootstrap Toda–Yamamoto and Diebold–Yilmaz connectedness index. The Hatemi-J Bootstrap Toda-Yamamoto approach allows researchers to use nonstationary data and that method is robust to nonnormal distribution and heteroscedasticity. The Diebold–Yilmaz connectedness index model provides researchers to detect the power of connectedness besides linkage direction. The analyzed period is the span from January 3, 2005 to October 3, 2022.

Findings

The results show bidirectional causality in the full sample but unidirectional causality before and after the 2008 financial crisis. During the 2008 financial crisis period and the COVID-19 period, there was a bidirectional and unidirectional causality, respectively. The connectedness approach indicates that the crude oil market affects financial stress through investors’ risk preferences.

Research limitations/implications

The Diebold–Yilmaz spillover index model is based on vector autoregression methods with a stationarity precondition. However, some of the five dimensions that constitute the financial stress index (FSI) are nonstationary in level. Therefore, the authors takes the first difference of the nonstationary data.

Practical implications

The linkage between the crude oil market and the FSI provides useful information for investors and policymakers. For instance, this paper indicates that an investor wanted to forecast future value of the crude oil (financial stress) should consider the current and past values of financial stress (crude oil). Moreover, policymaker should consider the crude oil market (FSI) to make a policy proposal for financial system (crude oil market).

Originality/value

Recently, indicators of economic activity levels (economic policy uncertainty, implied volatility index) have begun to be considered to analyze the relationship between energy and the economy but very little is known in the literature about the leading and lagging roles of data in subsample periods and the linkage channel. The other originality of this research is using the new econometric approaches.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Book part
Publication date: 1 July 2015

Willi Semmler and Christian R. Proaño

The recent financial and sovereign debt crises around the world have sparked a growing literature on models and empirical estimates of defaultable debt. Frequently households and…

Abstract

The recent financial and sovereign debt crises around the world have sparked a growing literature on models and empirical estimates of defaultable debt. Frequently households and firms come under default threat, local governments can default, and recently sovereign default threats were eminent for Greece and Spain in 2012–2013. Moreover, Argentina experienced an actual default in 2001. What causes sovereign default risk, and what are the escape routes from default risk? Previous studies such as Arellano (2008), Roch and Uhlig (2013), and Arellano et al. (2014) have provided theoretical models to explore the main dynamics of sovereign defaults. These models can be characterized as threshold models in which there is a convergence toward a good no-default equilibrium below the threshold and a default equilibrium above the threshold. However, in these models aggregate output is exogenous, so that important macroeconomic feedback effects are not taken into account. In this chapter, we (1) propose alternative model variants suitable for certain types of countries in the EU where aggregate output is endogenously determined and where financial stress plays a key role, (2) show how these model variants can be solved through the Nonlinear Model Predictive Control numerical technique, and (3) present some empirical evidence on the nonlinear dynamics of output, sovereign debt, and financial stress in some euro areas and other industrialized countries.

Details

Monetary Policy in the Context of the Financial Crisis: New Challenges and Lessons
Type: Book
ISBN: 978-1-78441-779-6

Keywords

Article
Publication date: 21 June 2011

Emaj Uddin

Social structural and cultural theories suggest that social stress induced from socio‐cultural status patterns varies across the world's cultures. The purpose of the study is to…

1534

Abstract

Purpose

Social structural and cultural theories suggest that social stress induced from socio‐cultural status patterns varies across the world's cultures. The purpose of the study is to compare subjective social stress in connection with objective socio‐cultural status patterns among Muslim, Hindu, Santal and Oraon communities in Rasulpur of Bangladesh.

Design/methodology/approach

This study was conducted in Rasulpur, Bangladesh. Preliminarily, 760 male arrack drinkers who were stressful in their socio‐cultural status patterns were selected by snowball process from the study area. Of the respondents, 391 arrack drinkers (109 Muslim, 103 Hindu, 89 Santal and 90 Oraon) were intensively interviewed by semi‐structural questionnaire to examine and compare the research purpose.

Findings

The results of Pearson's χ2 test suggested that there were significant differences (p<0.01) in subjective social stress in connection with socio‐cultural status patterns, except income among the communities, among the ethnic communities. The results of Spearman bivariate correlation coefficients revealed that there were significant relationships (p<0.01 and p<0.05) between socio‐cultural status patterns and its social stress, except occupation and income among the communities studied.

Research limitations/implications

Although the findings of the study have been successful in understanding differences in social stress in the context of socio‐cultural status patterns among the Muslim, Hindu, Santal and Oraon communities in Rasulpur, Bangladesh, further empirical research is needed on how personality factor, familial and community coping and social support from social service system influence the differences in subjective social stress associated with socio‐cultural status patterns among the communities. In spite of the limitations, the findings may provide valuable information for cross‐cultural social health policy and programs to manage the problem.

Originality/value

This paper is original in linking its theory, policy and practice to reduce subjective social stress in the context of socio‐cultural variations among the Muslim, Hindu, Santal and Oraon communities in Bangladesh.

Details

International Journal of Sociology and Social Policy, vol. 31 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 9 May 2016

Silvio Tarca and Marek Rutkowski

This study aims to render a fundamental assessment of the Basel II internal ratings-based (IRB) approach by taking readings of the Australian banking sector since the…

Abstract

Purpose

This study aims to render a fundamental assessment of the Basel II internal ratings-based (IRB) approach by taking readings of the Australian banking sector since the implementation of Basel II and comparing them with signals from macroeconomic indicators, financial statistics and external credit ratings. The IRB approach to capital adequacy for credit risk, which implements an asymptotic single risk factor (ASRF) model, plays an important role in protecting the Australian banking sector against insolvency.

Design/methodology/approach

Realisations of the single systematic risk factor, interpreted as describing the prevailing state of the Australian economy, are recovered from the ASRF model and compared with macroeconomic indicators. Similarly, estimates of distance-to-default, reflecting the capacity of the Australian banking sector to absorb credit losses, are recovered from the ASRF model and compared with financial statistics and external credit ratings. With the implementation of Basel II preceding the time when the effect of the financial crisis of 2007-2009 was most acutely felt, the authors measure the impact of the crisis on the Australian banking sector.

Findings

Measurements from the ASRF model find general agreement with signals from macroeconomic indicators, financial statistics and external credit ratings. This leads to a favourable assessment of the ASRF model for the purposes of capital allocation, performance attribution and risk monitoring. The empirical analysis used in this paper reveals that the recent crisis imparted a mild stress on the Australian banking sector.

Research limitations/implications

Given the range of economic conditions, from mild contraction to moderate expansion, experienced in Australia since the implementation of Basel II, the authors cannot attest to the validity of the model specification of the IRB approach for its intended purpose of solvency assessment.

Originality/value

Access to internal bank data collected by the prudential regulator distinguishes this paper from other empirical studies on the IRB approach and financial crisis of 2007-2009. The authors are not the first to attempt to measure the effects of the recent crisis, but they believe that they are the first to do so using regulatory data.

Open Access
Article
Publication date: 15 November 2018

Decha Tamdee, Patrapan Tamdee, Chieko Greiner, Waraporn Boonchiang, Nahoko Okamoto and Tokiko Isowa

The family caregivers play an important role in the good quality of life for the elderly, but most of them can easily have an emotional and psychological effect on caregiving. The…

3630

Abstract

Purpose

The family caregivers play an important role in the good quality of life for the elderly, but most of them can easily have an emotional and psychological effect on caregiving. The purpose of this paper is to explore the correlation between conditions of caring for the elderly in the family and caregiver stress in a community setting, Chiang Mai Province, Thailand.

Design/methodology/approach

A cross-sectional exploratory descriptive research was conducted in Ban Klang Subdistrict, San Pa Tong District, Chiang Mai Province. Simple random sampling was used to collect data by using a structured interview via a questionnaire with 103 elderly caregivers. The χ2 test was used to explain the conditions related to stress as being a caregiver.

Findings

Most of the caregivers were female and still in good health, but at the same time, underwent little stress. However, they did not receive any training beforehand for taking care of the elderly but mainly done by experience, relationship and gratitude. The conditions correlated with stress as being a caregiver were health status of caregivers, confidence of care, the relationship between caregiver and elderly person, and economic burden of care.

Originality/value

A necessary resource such as body of knowledge in elderly caregiving, long-term care system at the community level and social support from family and intimate persons will encourage confidence in taking care of the elderly in the family and also relieve caregivers’ stress.

Details

Journal of Health Research, vol. 33 no. 2
Type: Research Article
ISSN: 2586-940X

Keywords

1 – 10 of over 73000