Title : Investigating the Role of Mental Accounting System in Making Household Financial Decisions

Document Type : Original Article

Authors

1 Corresponding Author, Assistant Professor, Department of Accounting, Faculty of Humanities and Social Sciences, Kurdistan University, Sanandaj. Iran

2 MA Student, Department of Accounting Department, Faculty of Humanities and Social Sciences, University University, Sanandaj. Iran

Abstract

Making proper financial decisions is one of the serious concerns of households, and the mental accounting system can play a significant role in this process. Accordingly, the present study has attempted to study the role of the mental accounting system in making household financial decisions. The statistical population of this study was the households of Kurdistan province, of which 390 households were selected as examples. In addition to the questionnaire, the vinites (hypothetical scenarios) has also been used to collect the required data. Data analysis is performed using the modeling method of structural equation with minimum squares. According to the findings of the present study, the impact of the current variables in explaining\/forming the main research structure (mental accounting) is the importance of the importance: mental budgeting, future income, current income and current asset. The design of the vinites is based on the four principles of profit separation, integration of losses, integration of profits in one day, and the separation of small losses from large profits. These principles play an important role in evaluating the profits and losses of individuals. The effects of eight demographic variables on each vinite have also been studied separately.

Keywords

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Budget and Finance Strategic Research
Volume 3, Issue 1 - Serial Number 9
Spring Quarterly
July 2022
Pages 194-161

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History

  • Receive Date: 30 March 2022
  • Revise Date: 17 April 2022
  • Accept Date: 17 April 2022

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