Investigating the Effect of Financial Socialization on Financial Satisfaction With Regard to the Mediating Role of Financial Dogmatism

Document Type : Research Paper

Authors

1 Ph.D Candidate, Kerman Branch, Islamic Azad University, Kerman, Iran.

2 Assistant Professor of Accounting, Kerman Branch, Islamic Azad University, Kerman, Iran.

10.22103/jak.2022.18668.3633

Abstract

Objective:  The use of various sciences with the aim of solving the problems facing financial researchers in recent years as an essential need, given the issues and problems caused by the psychological and social destructive effects of capital market fluctuations, is felt more than ever. In this regard, the present study examines the impact of financial socialization on financial satisfaction with the mediating role of financial dogmatism, which to investigate the mediating effect, four main objectives are: 1- The impact of financial socialization on financial satisfaction 2- Financial socialization on financial dogmatism 3- The effect of financial dogmatism on financial satisfaction and 4- Explaining the effect of financial dogmatism on the relationship between financial socialization and financial satisfaction were examined.
Method : In this regard, 450 questionnaires were distributed among investors in the Tehran Stock Exchange. Out of 430 collected items, 398 questionnaires were accepted and structural equation modeling (SEM) and Amos software version 26 were used to analyze the data. The maximum likelihood estimation (MLE) method has also been used to predict the amount of unknown parameters.
Results : The results indicate that financial socialization has a positive and significant effect on financial satisfaction and a negative and significant effect on  financial dogmatism. Also, financial dogmatism has a negative and significant effect on financial satisfaction. In general, the results show that in the relationship between financial socialization and financial satisfaction, financial dogmatism has a mediating role, and since financial socialization, in the absence of financial dogmaism, directly affects financial satisfaction, in this relationship, a partial mediating role Plays.
 
Conclusion : Given the positive impact of financial socialization, one of the dimensions of which is social media networks on financial satisfaction, it is appropriate for companies to achieve the goals of financial reporting, voluntary disclosure of information and signaling that reduces risk and information symmetry. , To inform through new methods such as social networks and add them to previous reporting methods. Also, by increasing measures for financial socialization, such as the development of social networks, it is possible to reduce the financial dogma of investors and increase their trust, which is considered an obstacle to investment. Therefore, by increasing the volume of investment in the capital market, while reducing the risks of entering the market and its prosperity, we will see an increase in the financial satisfaction of investors and their greater confidence. In addition, by increasing the financial satisfaction of individuals, it will increase the amount of investment.

Keywords

References

درویشی، باقر؛ امیدی، مهدی؛ عصمت، فرشته. (1395). رویکرد چند بعدی به رفاه ذهنی مطالعه موردی: کارکنان دانشگاه ایلام. فصلنامه الگوسازی اقتصادی، 10(4)، 100-75.
سجادی، سید مهدی. (1390). جزم‌گرایی و شکاکیت: معضل نظام‌های تربیتی-آموزشی در جوامع اسلامی. پژوهشنامه مبانی تعلیم وتربیت، 2، 58-39.
عامری، حسین؛ کامیابی، یحیی؛ کله‌بستی، اسفندیار. (1400). بررسی تأثیر افشای داوطلبانه اطلاعات بر رابطه بین سیاست‌های مالیاتی متهورانه و عدم تقارن اطلاعاتی. مجله دانش حسابداری، 12(2)، 65-49.
گل‌محمدنژاد بهرامی، غلامرضا؛ رحیمی، المیرا. (1395). بررسی اثربخشی آموزش راهبردهای فراشناختی بر سازگاری اجتماعی و خودکارآمدی اجتماعی دانش‌آموزان دختر متوسطه شهرستان نقده. نشریه علمی آموزش و ارزشیابی (فصلنامه)، 9(35)، 65-81.
مکیان، سید نظام؛ رئیسی، مهین. (1393). تأثیر حاکمیت شرکتی بر عدم تقارن اطلاعاتی. مطالعه موردی: بازار بورس اوراق بهادار تهران. پژوهش‌های اقتصادی (رشد و توسعه پایدار)، 14(4)، 22-1.
مهرگان، محمدرضا؛ زالی، محمدرضا. (1385). در جست‌وجوی فنون تعیین روایی در پژوهش‌های مدیریتی. فرهنگ مدیریت، 14(4)، 5-2.
میرمحمدی صدرآبادی، محمد؛ شاکریان، حامد. (1398). بررسی نقش سواد مالی و دانش مالی در تصمیم‌گیری سرمایه‌گذاران جهت سرمایه‌گذاری. مدیریت کسب و کار، 11(43)، 335-311.
References
Aboagye, J., Jung, J.Y. (2018). Debt holding, financial behavior, and financial satisfaction. Journal of Financial Counseling and Planning, 29(2), 208-218.
Ali, A., Abd Rahman, M.S., Bakar, A. (2015). Financial satisfaction and the influence of financial literacy in Malaysia. Social Indicators Research, 120(1), 137-156.
Allen, M.S., Greenlees, I., Jones, M.V. (2014). Personality, counterfactual thinking, and negative emotional reactivity. Psychology of Sport and Exercise, 15(2), 147-154.
Amatucci, F.M., Crawley, D.C. (2011). Financial self-efficacy among women entrepreneurs, International Journal of Gender and Entrepreneurship, 3(1), 23-37.
Ameri, H., Kamyabi, Y., Malekian Kallebasti, E. (2021). Investigating the impact of information voluntary disclosure on the relationship between tax aggressiveness and information asymmetry. Journal of Accounting Knowledge, 12(2), 49-65 [In Persian].
Archuleta, K.L., Dale, A., Spann, S.M. (2013). College students and financial distress: exploring debt, financial satisfaction, and financial anxiety. Journal of Financial Counseling and Planning, 24(2), 50-62.
Brown, S., Taylor, K., Price, S.W. (2005). Debt and distress: Evaluating the psychological cost of credit. Journal of Economic Psychology, 26(5), 642–663.
Crowson, H.M. (2009). Does the DOG scale measure dogmatism? Another look at construct validity. The Journal of Social Psychology, 149(3), 365-383.
Curran, M.A., Parrott, E., Ahn, S.Y., Serido, J., Shim, S. (2018). Young adults’ life outcomes and well-being: Perceived fnancial socialization from parents, the romantic partner, and young adults’ own fnancial behaviors. Journal of Family and Economic Issues, 39(3), 445–456.
Danes, S.M. (1994). Parental perceptions of children’s financial socialization. Financial Counseling and Planning, 5, 127–146.
Danes, S.M., Yang, Y. (2014). Assessment of the use of theories within the Journal of financial counseling and planning and the contribution of the family fnancial socialization conceptual model. Journal of Financial Counseling and Planning, 25, 53–68.
Darvishi, B., Omidi, M., Esmat, F. (2017). Multi-dimensional approach to subjective well-being: A case study: Ilam University staff. Economical Modeling, 10(36), 75-100 [In Persian].
Davidov, M., Grusec, J.E. (2007). Socialization in the family: The roles of parents. Handbook of Socialization Theory and Research, New York, 284-308.
Deenanath, V., Danes, S.M., Jang, J. (2019). Purposive and unintentional family financial socialization, subjective financial knowledge, and financial behavior of high school students. Journal of Financial Counseling and Planning, 30(1), 83-96.
Dictionary, O.E. (1989). Oxford English Dictionary. Simpson, Ja & Weiner, Esc.
Diner, E., Pressman, S.D., Hunter, J., Delgadillo Chase, D. (2017). If, why, and when subjective well‐being influences health, and future needed research. Applied Psychology: Health and Well Being, 9(2), 133-167.
Diner, E., Biswas-Diener, R. (2002). Will money increase subjective well-being? Social Indicators Research, 57(2), 119-169.
Dietz, B.E., Carrozza, M., Ritchey, P.N. (2003). Does financial self-efficacy explain gender differences in retirement saving strategies? Journal of Women & Aging, 15(4), 83–96.
Engelberg, E. (2007). The perception of self-efficacy in coping with economic risks among young adults: an application of psychological theory and research. International Journal of Consumer Studies, 31(1), 95-101.
Epstude, K., Roese, N.J. (2008). The functional theory of counterfactual thinking. Personality and Social Psychology Review, 12, 168–192.
Esen, B.K., Aktas, E., Tuncer, I. (2013). An analysis of university students` internet use in relation to loneliness and social self-efficacy. Social and Behavioral Sciences, 84, 1504-1508.
Falahati, L., Paim, L. (2011). The Emergence of gender differences in consumer socialization among college students. Life Science Journal, 8(3), 187-191.
Falahati, L., Sabri, M., Paim, L. (2012). Assessment a model of financial satisfaction predictors: Examining the mediate effect of financial behavior and financial strain. World Applied Sciences Journal, 20(2), 190-197.
Fast, E., Horvitz, E. (2016). Identifying dogmatism in social media: Signals and models. arXiv preprint arXiv, 1609.00425.
Field, A. (2013). Discovering statistics using IBM SPSS statistics. sage
Forbes, J., Kara, S.M. (2010). Confidence mediates how investment knowledge influences investing self-efficacy. Journal of Economic Psychology, 31(3), 435–443.
Furnham, A., Argyle, A. (1998). The psychology of money, psychology press, New York, NY.
GolMohammad Nezhad Bahrami, G., Rahimi, E. (2016). Studying the effectiveness of metacognitive strategies training on social adjustment and social self-efficacy of female high school students in Naghadeh. Journal of Instruction and Evaluation, 9(35), 65-81 [In Persian].
Gonzalez, E., Leidner, D.E., & Koch, H. (2015). The influence of social media on organizational socialization. 2015 48th Hawaii International Conference on System Sciences, 1899-1908.
Gudmunson, C., Danes, S. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644-667.
Gurney, D.J., McKeown, S., Churchyard, J., Howlett, N. (2013). Believe it or not: Exploring the relationship between dogmatism and openness within non-religious samples. Personality and Individual Differences, 55(8), 936-940.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. (2010). Multivariate data analysis: International version. Upper Saddle River, NJ: Pearson Education. Haley, RI (1968). Benefit segmentation: a decision-oriented research tool. The Journal of Marketing, 32(3), 30-35.
Hayes, A.F. (2018). Partial, conditional, and moderated moderated mediation: Quantification, inference, and interpretation. Communication Monographs, 85(1), 4-40.
Hira, T.K., Mugenda, O. (1998). Predictors of financial satisfaction: Differences between retirees and non-retirees. Journal of Financial Counseling and Planning, 9(2), 75–83.
Hunsberger, B., Altemeyer, B. (2006). Atheists: A groundbreaking study of America's nonbelievers, Prometheus Books
Joo, S.H., Grable, J.E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50.
Keller, C., Siegrist, M. (2006). Investing in stocks: The influence of financial risk attitude and values-related money and stock market attitudes. Journal of Economic Psychology, 27(2), 285-303.
Kemnitz, R.J. (2018). The influences of financial self-efficacy and financial socialization on college students' financial stress and coping. Working Paper, Kansas State University.
Kim, J., Chatterjee, S. (2013). Childhood financial socialization and young adults' financial management. Journal of Financial Counseling and Planning, 24(1), 61-79.
Kim, J.H., Torquati, J. (2019). Financial socialization of college students: Domain-general and domain-specific perspectives. Journal of Family and Economic Issues, 40(2), 226-236.
Kuhlmann, E. (1983). On the economic analysis of the information seeking behavior of consumers. Journal of Consumer Policy, 6(2), 231-237.
Kulic, N. (2013). The type and duration of family unions and income sharing: The implications for women's economic well-being. The Journal of Socio-Economics, 44, 7-15.
Kulic, N., Minello, A., Zella, S. (2020). Manage your money, be satisfied? Money management practices and financial satisfaction of couples through the lens of gender. Journal of Family Issues, 41(9), 1420-1446.
Lanz, M., Sorgente, A., Danes, S.M. (2019). Implicit family financial socialization and emerging adults’ financial well-being: A multi-informant approach. Emerging Adulthood, 8(6), 443-452.
LeBaron-Black, A.B., Curran, M.A., Hill, E.J., Freeh, M.E., Toomey, R.B., Speirs, K.E. (2021). Parent financial socialization scale: Development and preliminary validation. Journal of Family Psychology, Advance online publication.
Lersch, P.M. (2017). Individual wealth and subjective financial well-being in marriage: Resource integration or separation? Journal of Marriage and Family, 79(5), 1211–1223.
Lown, J. M. (2011). Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54.
Luthans, F., Youssef, C., Avolio, B.J. (2007). Psychological capital: Investment and developing positive organizational behavior. In D.L. Nelson & C.L. Cooper (Eds.), Positive organizational behavior, (9-26). California: Sage Publications.
Lyons, A.C., Scherpf, E., Roberts, H. (2006). Financial education and communication between parents and children. The Journal of Consumer Education, 23, 64–67.
Makiyan S., Raeisi, M. (2015). The effect of corporate governance on asymmetric information (The case of Tehran exchange market). Journal of The Economic Research,14(4), 1-22 [In Persian].
Mathieu, J.E., Taylor, S.R. (2006). Clarifying conditions and decision points for mediational type inferences in organizational behavior. Journal of Organizational Behavior, 27(8), 1031-1056.
Mehregan, M.R., Zali, M.R. (2007). In search for techniques of determining validity in managerial researches. Journal of Organizational Culture Management, 4(4), 2-5 [In Persian].
Mir Mohammadi Sadrabadi, M., Shakarian, H. (2019). Investigating the role of financial literacy and financial knowledge in investors' decision to invest. Journal of Business Management, 11(43), 311-335 [In Persian].
Moschis, G.P. (1987). Consumer socialization: A life cycle perspective, lexington books, Lexington.
Owyang, J., Toll, M. (2007). Tracking the influence of conversations: A roundtable discussion on social media metrics and measurement. New York: Dow Jones Inc
Pandey, A., Ashta, A., Spiegelman, E., Sutan, A. (2020). Catch them young: Impact of financial socialization, financial literacy and attitude towards money on financial wellbeing of young adults. International Journal of Consumer Studies, 44(6), 531-541.
Plagnol, A.C. (2011). Financial satisfaction over the life course: The influence of assets and liabilities. Journal of Economic Psychology, 32(1), 45-64.
Power, M.L., Hira, T.K. (2004). Universityprovided retirement planning support and retiree financial satisfaction during retirement: differences by gender, job classification, and planning behavior. Risk Management and Insurance Review, 7(2), 121-149.
Pryor, J. (2000). The skeptic and the dogmatist. Noûs, 34(4), 517-549.
Robb, C.A., Woodyard, A.S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60–70.
Sahi, S.K., Kalra, S.K. (2013). Measuring financial risk taking using a dual preference approach for determination of financial satisfaction. IIMA Institutional Repository, Ahmedabad.
Sajjadi, S.M. (2012). Dogmatism and skepticism: A problem of educational systems in Islamic societies. Journal of Accounting Knowledge Foundation of Education, 2, 39-58 [In Persian].
Saurabh K., Nandan T. (2018). Role of financial risk attitude and financial behavior as mediators in financial satisfaction: Empirical evidence from India. South Asian Journal of Business Studies, 7(2), 207-224.
Shim, S., Barber, B.L., Card, N.A., Xiao, J.J., Serido, J. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39(12), 1457-1470.
Sparks, J. (2020). Going beyond a positive–negative dichotomy in judgment and decision making research: Insights for framing, counterfactual thinking, and ambivalence. Social and Personality Psychology Compass, 14(2), e12519.
Starobin, S.S., Hagedorn, L.S., Purnamasari, A. and Chen, Y.A. (2013). Examining financial literacy among transfer and nontransfer students: predicting financial well-being and academic success at a four-year university. Community College Journal of Research and Practice, 37(3), 216-225.
Sundarasen, S.D.D., Rahman, M.S., Othman, N.S., Danaraj, J. (2016). Impact of financial literacy, financial socialization agents, and parental norms on money management. Journal of Business Studies Quarterly, 8(1), 137.
Tang, N., Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Tang, T.L.P. (1993). The meaning of money: Extension and exploration of the money ethic scale in a sample of university students in Taiwan. Journal of Organizational Behavior, 14, 93–99.
Tang, T.L.P., Chiu, R.K. (2003). Income, money ethic, pay satisfaction, commitment, and unethical behavior: Is the love of money the root of evil for Hong Kong employees? Journal of Business Ethics, 46(1), 13–30.
Vitali, A., Arpino, B. (2016). Who brings home the bacon? The influence of context on partners’ contributions to the household income. Demographic Research, 35(41), 1213–1244.
Wang, A. (2009). Interplay of Investors' financial knowledge and risk taking. The Journal of Behavioral Finance, 10(4), 204-213.
Webley, P., Lewis, A., Mackenzie, C. (2001). Commitment among ethical investors: An experimental approach. Journal of Economic Psychology, 22(1), 27–42.
Winnett, A., Lewis, A. (2000). Youd have to be green to invest in this: Popular economic models, financial journalism, and ethical investment. Journal of Economic Psychology, 21(3), 319–339.
Wolters, C. A. (2003). Understanding procrastination from a self-regulated learning perspective. Journal of Educational Psychology, 95(1), 179–187.
Xiao, J.J., Chatterjee, S., Kim, J. (2014). Factors associated with fnancial independence of young adults. International Journal of Consumer Studies, 38, 394–403.
Xiao, J.J. (2008). Applying behavior theories to financial behavior. In Xiao, J.J. (Ed.), Handbook of Consumer Finance Research (pp. 69-81). New York: Springer.
Zhao, H., Zhang, L. (2020). Talking money at home: The value of family financial socialization. International Journal of Bank Marketing, 38(7), 1617-1634.
Zimmerman, S.L. (1995). Understanding family policy: Theories and applications (2nd ed). Thousand Oaks, CA: Sage.

Files

History

  • Receive Date: 13 December 2021
  • Revise Date: 22 January 2022
  • Accept Date: 29 January 2022

Share

How to cite

Statistics