How General Trust in Financial Institutions Affects the Relationship between Economic Healthiness and Consumer Confidence

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Abstract

Consumer confidence (CC) is of particular interest to economic policy makers and societies at large since CC is often regarded as an indicator of near-term economic growth. While individuals’ economic healthiness (EH) is known as an important predictor of CC, this study adds to previous research by (a) suggesting that this relationship may differ across levels of individuals’ general trust in financial institutions (GTF) and (b) integrating EH, CC, socio-economic variables, and economic knowledge in one study to grasp their potential complex relationships. Based on a survey of 3,185 individuals, we found that GTF has a positive direct influence on CC and that GTF negatively moderates the relationship between EH and CC. Among other results, we also found that both economic knowledge and educational level negatively moderates the relationship between GTF and CC. The study results may be of high interest for policymakers, financial managers, academics and others seeking further insights into consumer confidence (CC).
Original languageEnglish
Title of host publicationProceedings of MAC 2019
EditorsJiri Vopava, Vladimir Douda, Radek Kratochvil, Mario Konecki
Number of pages10
Place of PublicationPrague
PublisherMAC Praque Consulting s.r.o.
Publication date2019
Pages35-44
ISBN (Print)9788088085270
Publication statusPublished - 2019
EventMultidisciplinary Academic Conference on Management, Marketing and Economics in Prague 2019 - Prag, Czech Republic
Duration: 13 Dec 201915 Dec 2019
https://www.academic-conferences.eu/konference/december-conference-mac-mme-2019/#mesto=prague

Conference

ConferenceMultidisciplinary Academic Conference on Management, Marketing and Economics in Prague 2019
CountryCzech Republic
CityPrag
Period13/12/201915/12/2019
Internet address

Bibliographical note

CBS Library does not have access to the material

Keywords

  • Consumer confidence
  • Economic healthiness
  • General trust
  • Financial institutions

Cite this

Hansen, T. (2019). How General Trust in Financial Institutions Affects the Relationship between Economic Healthiness and Consumer Confidence. In J. Vopava, V. Douda, R. Kratochvil, & M. Konecki (Eds.), Proceedings of MAC 2019 (pp. 35-44). Prague: MAC Praque Consulting s.r.o..