Market Volatility and Financial Satisfaction: The Role of Financial Self-Efficacy

Sarah Asebedo; Patrick Payne

doi:10.1080/15427560.2018.1434655

Market Volatility and Financial Satisfaction: The Role of Financial Self-Efficacy

Sarah Asebedo, Patrick Payne

Personal Financial Planning

Research output: Contribution to journal › Article › peer-review

7 Scopus citations

Abstract

This study investigates the role of financial self-efficacy (FSE) in moderating the relationship between market volatility and financial satisfaction within a sample of 3,405 adults 50 years old and over from the Health and Retirement Study. Results revealed that market volatility had no statistically significant effect with financial satisfaction for those with moderate or high FSE, but market volatility did have a negative effect for those with low FSE. Results suggest that FSE is an important predictor of financial satisfaction amidst market volatility and should be considered when establishing an appropriate asset allocation for client portfolios.

Original language	English
Pages (from-to)	42-52
Number of pages	11
Journal	Journal of Behavioral Finance
Volume	20
Issue number	1
DOIs	https://doi.org/10.1080/15427560.2018.1434655
State	Published - Jan 2 2019

Keywords

Financial satisfaction
Financial self-efficacy
Market volatility
Risk tolerance
Social cognitive theory of self-regulation

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10.1080/15427560.2018.1434655

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