How Investors’ Financial Well-being Influences Enterprises and Individual’s Psychological Fitness? Moderating Role of Experience under Uncertainty

Bijay Prasad Kushwaha (), Atul Shiva and Vikas Tyagi
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Bijay Prasad Kushwaha: VIT Business School, Vellore Institute of Technology, Vellore 632014, India
Atul Shiva: University School of Business, Chandigarh University, Mohali 140413, India
Vikas Tyagi: School of Management and Commerce, Dev Bhoomi Uttarakhand University, Uttarakhand 248007, India

Sustainability, 2023, vol. 15, issue 2, 1-22

Abstract: The study aims to investigate the role of financial well-being of the investor on psychological fitness of clients and organizations in the emerging financial markets of India. A survey was conducted during the pandemic in Indian financial markets wherein most of people’s financial situation was extremely poor and uncertain. During the COVID-19 pandemic, retail investors who availed themselves of financial products and services from leading brokerage houses of India were investigated. The study was conducted on 290 retail investors of Delhi, National Capital Region (NCR) and the financial hub of Mumbai. The participants were approached using the purposive sampling method. The study further examined moderating effects of pleasant and unpleasant experience of investors during difficult times. The study applied partial least square multi-group analysis (PLS–MGA) for measuring invariance for pleasant and unpleasant scenarios of investors in the Indian context. The findings suggested that consumers’ well-being enhances individual satisfaction at higher enterprise levels, it also motivates individuals to manage their finances to deal with uncertain times. Additionally, the control variables of age and gender were used to measure pleasant and unpleasant experiences of investors from the base of their satisfaction level. The results suggest that during difficult times in financial markets, females exhibited higher unpleasant experiences than male investors. Further, consumers’ well-being was primarily driven by older investors with pleasant experiences during the pandemic. The present study offers an interdisciplinary approach towards measuring consumers’ psychology in the domain of behavioral finance.

Keywords: consumers’ well-being; measuring invariance of composites (MICOM); retail investors; individual psychological fitness; COVID-19 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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