Coping Strategies to Improve Financial Well-Being During the COVID-19 Pandemic in an Emerging Economy

Abstract

This article examines the influence of financial self-efficacy, financial behavior, financial stress, and financial stressor events on the financial well-being (FWB) of Malaysians during the COVID-19 pandemic. The article then analyzes the moderating effects of three types of coping strategies (self-coping, borrowing, and government aid) on the relationship between financial stress and financial stressor events (income loss, creditor, and legal action stressor events) and FWB. Analyses from a sample of 738 Malaysian working adults indicated that financial self-efficacy and financial behavior were positively related to FWB, while financial stress and financial stressor events were negatively related to FWB. Self-coping and borrowing reduced the negative effect of financial stress on FWB, while the government aid coping strategy reduced the impact of income loss and legal action stressor events on FWB. The study contributes to the literature by examining coping strategies and financial stressor events by three distinct categories in the context of an emerging market.