Noncognitive Abilities and Financial Delinquency: The Role of Self-Efficacy in Avoiding Financial Distress

• 成果类型: Article
• 署名作者: Kuhnen, Camelia M.; Melzer, Brian T.
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; National Bureau of Economic Research; Dartmouth College; Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12724
• 发表日期: 2018
• 页码: 2837-2869
• 关键词: credit; performance; MODERATOR; returns; traits; HEALTH; locus; MODEL; sense

摘要

We investigate a novel determinant of financial distress, namely, individuals' self-efficacy, or belief that their actions can influence the future. Individuals with high self-efficacy are more likely to take precautions that mitigate adverse financial shocks. They are subsequently less likely to default on their debt and bill payments, especially after experiencing negative shocks such as job loss or illness. Thus, noncognitive abilities are an important determinant of financial fragility and subjective expectations are an important factor in household financial decisions.