Financial problems and psychological distress: Investigating reciprocal effects among business owners

M.J. Gorgievski, A.B. Bakker, W.B. Schaufeli, H.B. van der Veen, C.W.M. Giesen

    Research output: Contribution to journalArticleAcademicpeer-review

    83 Citations (Scopus)

    Abstract

    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.
    Original languageEnglish
    Pages (from-to)513-530
    JournalJournal of Occupational and Organizational Psychology
    Volume83
    Issue number2
    DOIs
    Publication statusPublished - 2010

    Keywords

    • dynamic equilibrium-model
    • negative affectivity
    • job characteristics
    • farm operators
    • stress process
    • self
    • performance
    • depression
    • health
    • strain

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