Editorial, Vol. 13 Issue 2: Special Issue on Diversity, Inclusion, and Equity in Financial Therapy

We are honored to present the special issue of diversity, equity, and inclusion in financial therapy, as JFT’s second issue of volume 13, 2022

Financial Anxiety, Physiological Arousal, and Planning Intention

Results from this exploratory clinical study indicate that financial anxiety—holding an unhealthy attitude about one’s financial situation—and physiological arousal—the physical precursor to behavior—play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggest that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser are those who exhibit high financial anxiety and low physiological arousal. Results support findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking

Financial Anxiety, Physiological Arousal, and Planning Intention

Results from this exploratory clinical study indicate that financial anxiety—holding an unhealthy attitude about one’s financial situation—and physiological arousal—the physical precursor to behavior—play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggest that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser are those who exhibit high financial anxiety and low physiological arousal. Results support findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking

Examining Financial Anxiety Focusing on Interactions between Financial Knowledge and Financial Self-efficacy

This study examined whether the association between financial knowledge and financial anxiety depends on an individual’s financial self-efficacy by incorporating an interaction term between financial self-efficacy and financial knowledge. The self-efficacy component of the social cognitive theory of self-regulation has been tested using the 2018 National Financial Capability Study dataset. Households with higher financial knowledge and financial self-efficacy had lower levels of financial anxiety. After adding interaction terms of financial knowledge and financial self-efficacy in the model, the relationship between financial knowledge and financial anxiety depended on the levels of financial self-efficacy. Among those with anything less than high financial self-efficacy, the association between financial knowledge and financial anxiety weakens. The study found that financial knowledge and financial self-efficacy were significant in explaining financial anxiety and suggested implications for researchers, educators, and practitioners

Technical Efficiency of Freshwater Aquaculture and its Determinants in Tripura, India

Freshwater aquaculture is an important and promising sector of the economy of Tripura State. The biophysical potential for growth in freshwater aquaculture in the state is still far from exhaustion and a faster development is required to meet the growth in demand for fish. This paper has assessed the level of technical efficiency and its determinants of small-scale fish production in the West Tripura district of the state of Tripura, India. The study is based on the cross-sectional primary data collected from 101 fish farmers through a multi-stage random sampling method. The paper has employed stochastic production frontier approach, and has followed both one-stage and two-stage procedures to analyze the determinants of TE. The TE ranges between 0.21 and 0.96 with mean of 0.66 and median of 0.71. The study has revealed the Cobb-Douglas form of stochastic frontier production function is more dependable than that of translog form under the farming conditions in the West Tripura district of Tripura state. One-stage procedure with technical inefficiency model gives reliable estimates of coefficients of stochastic frontier production function than that of two-stage procedure. Seed quality has been found as an important determinant of TE. The study has suggested that the state government needs to play a role to ascertain the supply of quality fish fingerlings at adequate time and quantity to the farmers in the study area.Agricultural and Food Policy,

Financial Anxiety, Physiological Arousal, and Planning Intention

Results from this exploratory clinical study indicate that financial anxiety—holding an unhealthy attitude about one’s financial situation—and physiological arousal—the physical precursor to behavior—play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggest that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser are those who exhibit high financial anxiety and low physiological arousal. Results support findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking

Financial Anxiety, Physiological Arousal, and Planning Intention

Results from this exploratory clinical study indicate that financial anxiety—holding an unhealthy attitude about one’s financial situation—and physiological arousal—the physical precursor to behavior—play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggest that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser are those who exhibit high financial anxiety and low physiological arousal. Results support findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking

A Test of the Association Between the Initial Surge in COVID-19 Cases and Subsequent Changes Infinancial Risk Tolerance

Purpose–The purpose of this paper is to provide an estimate of the degree to which financial risk tolerance changed in relation to the initial surge of COVID-19 cases in the US.Design/methodology/approach–Data from a large sample of investors and other consumers covering theperiod beginning April 2019 and ending in early May 2020 were used to estimate aggregate levels of financialrisk tolerance and to determine if the willingness to take financial risk changed across five distinct periods inrelation to the spread of COVID-19.Findings–A general reduction in aggregate levels of financial risk tolerance was observed during the initial peak of COVID-19 period and the subsequent declaration of a pandemic, with the most significant drop in risk tolerance being exhibited by those who were 25 years of age or younger.Practical implications–The findings from this study–primarily that in terms of FRT, the COVID-19 pandemic impacted young people disproportionately–suggest that in addition to helping young people feelcomfortable in terms of their personal health situation and access to employment and health insurance, policymakers, financial service firms and financial literacy educators should provide information and guidance toyoung people regarding why being willing to take financial risks is important and how FRT corresponds to theproper functioning of the investment markets.Originality/value–A data-drive methodology was utilized in this study to define the periods. This approach was taken due to the lack of defined and published pandemic interval periods specific to COVID19. However,the findings based on the data-driven methodology bring practical implications such as young people aresincerely considered in the catastrophic situation

A Test of the Relevant Association Between Utility Theory and Subjective Risk Tolerance: Introducing the Profit-to-Willingness Ratio

The purpose of this study was to document the empirical linkage between an objective risk tolerance utility function and a subjective risk tolerance scale. This study utilized return data from 2008 through 2013 for the S&P 500 as a proxy for the objective risk tolerance utility function and risk tolerance data obtained from a multidimensional psychometrically designed financial risk tolerance scale. Results from this study add to the literature by introducing the Profit-to-Willingness ratio (P/W ratio) and by showing investments in the stock market exhibit strong associates with the risk attitudes and preferences of investors. It was determined that an increase in the S&P 500 was associated with a decrease in aggregate risk tolerance during the period of analysis, whereas a decrease in the index increased willingness to take financial risk during the same period

Mediation Efect of Financial Education between Financial Stress and Use of Financial Technology

This study investigated the relationship between financial stress and financial technology and included the mediating role of financial knowledge based on the ABC-X model. This study used the 2018 National Financial Capability Study to construct financial stress and the use of financial technology and tested the proposed model with two subgroups: one group with financial education and the other group without financial education. We used confirmatory factor analysis and structural equation modeling to evaluate our model. Results show that respondents with a greater level of financial stress generally tended to more engage in financial technology. When the role of financial knowledge was considered in the model, the relationship between financial stress and the use of financial technology varied by the type of financial knowledge. Although this study did not identify the onset of the coping process directly, the direct effect of financial stress on the use of financial technology in each subgroup regardless of their financial education experience confirms efforts of looking for coping when facing and responding to financially stressful situations. Thus, this study sheds light on the new technology for financial services as a potential tool for better financial management and as a coping mechanism for those with financial stress. Results from this study provide insights for financial practitioners and educators who help US households manage their financial stress