Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of financial socialization on financial dependence and the mediating role of financial self-efficacy

Document Type : Original Article

Author
Department of Accounting, Kerman Branch, Islamic Azad University, Kerman, Iran
Abstract
One of the concepts of dependence is attachment. Individuals can increase capacities such as their level of trust, which is called financial self-efficacy. In addition, attachment and self-efficacy are both products of financial socialization. Accordingly, the purpose of this research is to answer the question of whether financial socialization affects financial dependence, either directly or through a mediating variable (indirectly). This research is cross-sectional and descriptive survey type. Accordingly, 510 questionnaires were received from real investors in the Tehran Stock Exchange, and after reviewing 395 questionnaires were accepted. The structural equation modeling method was used to analyze the data. The research findings indicate that the occurrence of positive results as a result of financial socialization may increase financial attachment both directly and indirectly through financial self-efficacy. The results of this research show that if individuals strengthen their attachment through different dimensions of socialization and increasing self-efficacy, it will lead to correct decisions in their investment. On the other hand, the results clarify that the lack of financial attachment (dependence) of individuals in a secure manner causes undesirable behaviors in their investment.