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Mindsponge-Based Reasoning of Households’ Financial Resilience during the COVID-19 Crisis

Author

Listed:
  • Minh-Hoang Nguyen

    (Centre for Interdisciplinary Social Research, Phenikaa University, Yen Nghia Ward, Ha Dong District, Hanoi 100803, Vietnam)

  • Quy Van Khuc

    (Faculty of Development Economics, VNU University of Economics and Business, Vietnam National University, Hanoi 100000, Vietnam)

  • Viet-Phuong La

    (Centre for Interdisciplinary Social Research, Phenikaa University, Yen Nghia Ward, Ha Dong District, Hanoi 100803, Vietnam)

  • Tam-Tri Le

    (Centre for Interdisciplinary Social Research, Phenikaa University, Yen Nghia Ward, Ha Dong District, Hanoi 100803, Vietnam)

  • Quang-Loc Nguyen

    (SP Jain School of Global Management, Lidcombe, NSW 2141, Australia)

  • Ruining Jin

    (Civil, Commercial and Economic Law School, China University of Political Science and Law, Beijing 100088, China)

  • Phuong-Tri Nguyen

    (Securities Research and Training Center, State Security Commission, Ho Chi Minh 700000, Vietnam)

  • Quan-Hoang Vuong

    (Centre for Interdisciplinary Social Research, Phenikaa University, Yen Nghia Ward, Ha Dong District, Hanoi 100803, Vietnam)

Abstract

The COVID-19 crisis was remarkable because no global recession model could predict or provide early notice of when the coronavirus pandemic would happen and damage the global economy. Resilience to financial shocks is crucial for households as future crises like COVID-19 are inevitable. Therefore, the current study aims to examine the effects of financial literacy and accessibility to financial information on the financial resilience of Vietnamese households through the lens of an information-processing perspective. The Bayesian Mindsponge Framework (BMF) analytics was employed on a dataset of 839 samples for the investigation. We found that households of respondents with better financial knowledge and investment skills are less likely to be financially affected during the peak of the COVID-19 crisis, but the effect of investment skills is weakly reliable. Accessibility to financial information through informal sources (having a household member working in the financial sector) and formal sources (participating in a financial course) is positively associated with the respondents’ financial knowledge and investment skills. This finding suggests that the spillover effect of financial knowledge and skills among residents exists, leading to better resilience toward financial shocks. However, if the financial information is inaccurate, it might lead to misinformation, false beliefs, and poor economic decisions on a large scale.

Suggested Citation

  • Minh-Hoang Nguyen & Quy Van Khuc & Viet-Phuong La & Tam-Tri Le & Quang-Loc Nguyen & Ruining Jin & Phuong-Tri Nguyen & Quan-Hoang Vuong, 2022. "Mindsponge-Based Reasoning of Households’ Financial Resilience during the COVID-19 Crisis," JRFM, MDPI, vol. 15(11), pages 1-18, November.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:11:p:542-:d:979313
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    References listed on IDEAS

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    Cited by:

    1. Mindsponge, AISDL, 2023. "Essential materials for Bayesian Mindsponge Framework analytics," OSF Preprints 7bxpd, Center for Open Science.
    2. Nguyen, Minh-Hoang, 2023. "Investigating urban residents' involvement in biodiversity conservation in protected areas: Empirical evidence from Vietnam," Thesis Commons z2hjv, Center for Open Science.
    3. Quan-Hoang Vuong & Quang-Loc Nguyen & Ruining Jin & Minh-Hieu Thi Nguyen & Thi-Phuong Nguyen & Viet-Phuong La & Minh-Hoang Nguyen, 2023. "Increasing Supply for Woody-Biomass-Based Energy through Wasted Resources: Insights from US Private Landowners," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    4. Jin, Ruining & Hoang, Giang & Nguyen, Thi-Phuong & Nguyen, Phuong-Tri & Le, Tam-Tri & La, Viet-Phuong & Nguyen, Minh-Hoang & Vuong, Quan-Hoang, 2022. "An analytical framework-based pedagogical method for scholarly community coaching: A proof of concept," OSF Preprints qabhj, Center for Open Science.
    5. Nguyen, Minh-Hoang & Quang-Loc, Nguyen & Nguyen, Loan & Le, Tam-Tri & Phi, Xuan-Tuan & Vuong, Quan-Hoang, 2023. "How does the knowledge accumulation process affect Vietnamese entrepreneurs’ success likelihood?," OSF Preprints tgfr5, Center for Open Science.
    6. Xu, Dandan & Liu, Yuting, 2024. "How does technological progress affect provincial financial resilience? Evidence at the provincial level in China," Emerging Markets Review, Elsevier, vol. 60(C).
    7. Chuang Bao & Yong Li & Xinmeng Zhao, 2023. "The Influence of Social Capital and Intergenerational Mobility on University Students’ Sustainable Development in China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    8. Changpeng Shao & Sen Lin, 2024. "Do psychological costs matter? The mechanism of perceived value on green consumption behaviour," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

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