IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1699-d1037342.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Bijay Prasad Kushwaha & Atul Shiva & Vikas Tyagi, 2023. "How Investors’ Financial Well-being Influences Enterprises and Individual’s Psychological Fitness? Moderating Role of Experience under Uncertainty," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1699-:d:1037342
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1699/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1699/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Elsayed, Ahmed H. & Nasreen, Samia & Tiwari, Aviral Kumar, 2020. "Time-varying co-movements between energy market and global financial markets: Implication for portfolio diversification and hedging strategies," Energy Economics, Elsevier, vol. 90(C).
    2. Sobolewski, Maciej, 2021. "Measuring consumer well-being from using free-of-charge digital services. The case of navigation apps," Information Economics and Policy, Elsevier, vol. 56(C).
    3. Belk, Russell W, 1988. "Possessions and the Extended Self," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 139-168, September.
    4. Felicia Huppert & Timothy So, 2013. "Flourishing Across Europe: Application of a New Conceptual Framework for Defining Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 837-861, February.
    5. Akpinar, Ezgi & Verlegh, Peeter W J & Smidts, Ale, 2018. "Sharing product harm information: The effects of self-construal and self-relevance," International Journal of Research in Marketing, Elsevier, vol. 35(2), pages 319-335.
    6. Aparna A. Labroo & Vanessa M. Patrick, 2009. "Psychological Distancing: Why Happiness Helps You See the Big Picture," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(5), pages 800-809, October.
    7. James A. Mourey & Jenny G. Olson & Carolyn Yoon, 2017. "Products as Pals: Engaging with Anthropomorphic Products Mitigates the Effects of Social Exclusion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(2), pages 414-431.
    8. Mendini, Monica & Peter, Paula C. & Maione, Salvatore, 2022. "The potential positive effects of time spent on Instagram on consumers’ gratitude, altruism, and willingness to donate," Journal of Business Research, Elsevier, vol. 143(C), pages 16-26.
    9. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    10. Atul Shiva & Manjit Singh, 2019. "Stock hunting or blue chip investments?," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 12(1), pages 1-23, November.
    11. Wilson Bastos & Merrie Brucks, 2017. "How and Why Conversational Value Leads to Happiness for Experiential and Material Purchases," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(3), pages 598-612.
    12. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May.
    13. Daniela Covino & Immacolata Viola & Tetiana Paientko & Flavio Boccia, 2021. "Neuromarketing: some remarks by an economic experiment on food consumer perception and ethic sustainability," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 187-199.
    14. Hazel Rose Markus & Barry Schwartz, 2010. "Does Choice Mean Freedom and Well-Being?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 344-355, August.
    15. Diamantopoulos, Adamantios, 2008. "Formative indicators: Introduction to the special issue," Journal of Business Research, Elsevier, vol. 61(12), pages 1201-1202, December.
    16. El Hedhli, Kamel & Chebat, Jean-Charles & Sirgy, M. Joseph, 2013. "Shopping well-being at the mall: Construct, antecedents, and consequences," Journal of Business Research, Elsevier, vol. 66(7), pages 856-863.
    17. Lan Sun & Garrick Small & Yueh-Hsia Huang & Tyng-Bin Ger, 2022. "Financial Shocks, Financial Stress and Financial Resilience of Australian Households during COVID-19," Sustainability, MDPI, vol. 14(7), pages 1-13, March.
    18. Jordan Etkin & Cassie Mogilner, 2016. "Does Variety Among Activities Increase Happiness?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(2), pages 210-229.
    19. Necmi K. Avkiran & Christian M. Ringle (ed.), 2018. "Partial Least Squares Structural Equation Modeling," International Series in Operations Research and Management Science, Springer, number 978-3-319-71691-6, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcin Rzeszutek & Jorgen Vitting Andersen & Adam Szyszka & Szymon Talaga, 2023. "Subjective Well-Being of Corporate Managers And Its Impact on Stock Market Volatility and Financial Stability During the Covid-19 Pandemic in Poland: Agent-Based Model Perspective," Documents de travail du Centre d'Economie de la Sorbonne 23017, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Marcin Rzeszutek & Jørgen Vitting Andersen & Adam Szyszka & Szymon Talaga, 2024. "Subjective Well-Being of Chief Executive Officers and Its Impact on Stock Market Volatility During the COVID-19 Pandemic in Poland: Agent-Based Model Perspective," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04723512, HAL.
    3. Marcin Rzeszutek & Jørgen Vitting Andersen & Adam Szyszka & Szymon Talaga, 2024. "Subjective Well-Being of Chief Executive Officers and Its Impact on Stock Market Volatility During the COVID-19 Pandemic in Poland: Agent-Based Model Perspective," Post-Print hal-04723512, HAL.
    4. Marcin Rzeszutek & Jorgen Vitting Andersen & Adam Szyszka & Szymon Talaga, 2024. "Subjective Well-Being of Chief Executive Officers and Its Impact on Stock Market Volatility During the COVID-19 Pandemic in Poland: Agent-Based Model Perspective," Journal of Happiness Studies, Springer, vol. 25(7), pages 1-15, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Ajay & Paul, Justin & StarÄ ević, SlaÄ‘ana, 2021. "Do brands make consumers happy?- A masstige theory perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    2. Gaston-Breton, Charlotte & Sørensen, Elin Brandi & Thomsen, Thyra Uth, 2020. "“I want to break free!” How experiences of freedom foster consumer happiness," Journal of Business Research, Elsevier, vol. 121(C), pages 22-32.
    3. Thomas P. Novak & Donna L. Hoffman, 2019. "Relationship journeys in the internet of things: a new framework for understanding interactions between consumers and smart objects," Journal of the Academy of Marketing Science, Springer, vol. 47(2), pages 216-237, March.
    4. Jacob C. Lee & Sara Kim & Phyllis Xue Wang, 2022. "Anthropomorphizing makes material goods as happiness-inducing as experiences," Marketing Letters, Springer, vol. 33(1), pages 61-73, March.
    5. Bogner, Anna, 2023. "Memory asymmetries in experiential and material purchases: The role of self-expression," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(1), pages 163-187.
    6. Abdullah J. Sultan, 2022. "Aligning employees’ work engagement and behavioral performance with internal branding: the missing link of employees’ perceived brand authenticity," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 52-64, March.
    7. Halpern, Nigel & Mwesiumo, Deodat & Suau-Sanchez, Pere & Budd, Thomas & Bråthen, Svein, 2021. "Ready for digital transformation? The effect of organisational readiness, innovation, airport size and ownership on digital change at airports," Journal of Air Transport Management, Elsevier, vol. 90(C).
    8. Cheah, Jun-Hwa & Lim, Xin-Jean & Ting, Hiram & Liu, Yide & Quach, Sara, 2022. "Are privacy concerns still relevant? Revisiting consumer behaviour in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    9. Rogelio Puente-Díaz & Judith Cavazos-Arroyo, 2022. "Experiential gifts and the construal of meaningful consumption episodes," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.
    10. Mifsud, Matthieu & Molines, Mathieu & Cases, Anne-Sophie & N'Goala, Gilles, 2019. "It's MY health care program: Enhancing patient adherence through psychological ownership," Social Science & Medicine, Elsevier, vol. 232(C), pages 307-315.
    11. Janina SÜRKEN & Sören SUNDERMANN, 2021. ""Online Touchpoints Matter!" - An Empirical Analysis of Consumer-Brand Relationships in Retail Settings," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 77-87, August.
    12. Mahfuzur Rahman & Che Ruhana Isa & Muhammad Mehedi Masud & Moniruzzaman Sarker & Nazreen T. Chowdhury, 2021. "The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia," Future Business Journal, Springer, vol. 7(1), pages 1-18, December.
    13. Alexandra Ganglmair-Wooliscroft & Ben Wooliscroft, 2019. "Well-Being and Everyday Ethical Consumption," Journal of Happiness Studies, Springer, vol. 20(1), pages 141-163, January.
    14. Dang, Ngoc Bich & Bertrandias, Laurent, 2023. "Social robots as healing aids: How and why powerlessness influences the intention to adopt social robots," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    15. Florian Schuberth, 2021. "Confirmatory composite analysis using partial least squares: setting the record straight," Review of Managerial Science, Springer, vol. 15(5), pages 1311-1345, July.
    16. Sunyee Yoon & Hyeongmin Christian Kim & Vicki MorwitzEditor & Simona BottiAssociate Editor, 2018. "Feeling Economically Stuck: The Effect of Perceived Economic Mobility and Socioeconomic Status on Variety Seeking," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(5), pages 1141-1156.
    17. Bastos, Wilson & Barsade, Sigal G., 2020. "A new look at employee happiness: How employees’ perceptions of a job as offering experiences versus objects to customers influence job-related happiness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 161(C), pages 176-187.
    18. Aw, Eugene Cheng-Xi & Tan, Garry Wei-Han & Cham, Tat-Huei & Raman, Ramakrishnan & Ooi, Keng-Boon, 2022. "Alexa, what's on my shopping list? Transforming customer experience with digital voice assistants," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    19. Akter, Shahriar & Babu, Mujahid Mohiuddin & Hossain, Md Afnan & Hani, Umme, 2022. "Value co-creation on a shared healthcare platform: Impact on service innovation, perceived value and patient welfare," Journal of Business Research, Elsevier, vol. 140(C), pages 95-106.
    20. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1699-:d:1037342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.