Kavitha Desai

COVID-19 has caused not only unprecedented health crises but also economic crises among individuals across the world. White-collar (salaried-class) employees with a fixed salary face financial insecurity due to job loss, pay cuts and uncertainty in retaining a job. This study examines the financial behavior of Indian white-collar salaried-class investors to their cognitive biases. In addition, the mediating effect of financial self-efficacy on cognitive biases and financial behavior is examined. Respondents were given structured questionnaires (google forms) through emails and WhatsApp for data collection. SPSS and R-PLS are used to analyze the data. Conservatism (r = –.603, p < 0.05) and herding bias (r = –.703, p < 0.05) have a significant negative correlation with financial behavior. Financial self-efficacy has a significant positive correlation (r =.621. p < 0.050). Conservatism and herding predicted 60.5% and 62.2% of the variance, respectively. The direct and indirect paths between conservatism bias, financial self-efficacy, and financial behavior are significant. The paths between herding, financial self-efficacy and financial behavior are also significant.

Acknowledgement
The authors express their sincere gratitude to Dr Suresha B (Associate Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India ) for encouraging and motivating them to accomplish this research task. The authors also extend their sincere thanks to Prof. Krishna T.A. (Assistant Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India) and Dr Sridevi Nair (Assistant Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India) for their support throughout this empirical investigation.