Premium
Financial problems and psychological distress: Investigating reciprocal effects among business owners
Author(s) -
Gorgievski Marjan J.,
Bakker Arnold B.,
Schaufeli Wilmar B.,
Veen Hennie B.,
Giesen Carin W. M.
Publication year - 2010
Publication title -
journal of occupational and organizational psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.257
H-Index - 114
eISSN - 2044-8325
pISSN - 0963-1798
DOI - 10.1348/096317909x434032
Subject(s) - psychology , structural equation modeling , psychological distress , reciprocal , financial distress , distress , social psychology , mental health , clinical psychology , economics , psychiatry , statistics , mathematics , linguistics , philosophy , financial system
Building on conservation of resources theory and the dynamic equilibrium model, this three‐wave longitudinal study among 260 Dutch agricultural business owners (1‐year time intervals) investigated reciprocal relationships between the financial situation of the business and psychological distress. Results of structural equation modelling analyses revealed a negative spiral of farm decline, in which psychological variables played a key role. Experiencing financial problems predicted psychological distress, and acted as a self‐fulfilling prophecy by strengthening intentions to quit the business, which predicted a deterioration of the objective financial situation of the business 1 year later. Moreover, farmers experiencing more psychological distress were more likely to get caught in this negative spiral than business owners with better mental health, because they experienced more financial problems, irrespective of their objective financial situation. Long‐term psychological distress rather than temporary fluctuations in distress levels accounted for this effect.