The Effect of Financial Background and Demographic Characteristics on the Investors' Financial Worry and Rumination in the Stock Exchange (considering the moderating role of current financial factors)

In behavioral finance and economics’ discussions, financial worry and rumination are mentioned as two types of financial distress for investors. Although both worry and rumination are related to anxiety and other negative emotional status, but rumination focuses on bad feelings and past experiences, while worry focuses on the potential for bad events to happen in the future. Given the relationship between financial rumination and financial worry with people's financial status in the past, present, and future, in this research, was examined the relationship between financial background and demographic characteristics with these two variables. The statistical population is the investors of the Yazd Regional Stock Exchange, and due to the homogeneity of the population, a simple random sampling method was chosen using a questionnaire for 123 people as the sample size. The data collection and the confirmation of the relationship between variables and factors conducted through confirmatory factor analysis and PLS modeling technique. The conducted tests indicated the validity and reliability of the questionnaire. The results suggested that current and future financial status, and current financial and demographic factors have a significant effect on the perceptions and emotions of financial concern. Also, person’s background and demographic characteristics have a significant effect on the perceptions and emotions of financial rumination.