Document Type: Review Paper


1 Student of M.A Business Management (Financial Management), Islamic Azad University, South Tehran Branch, Tehran, Iran

2 Professor of Business Management - Assistant Professor and faculty member of Malek Ashtar University, Department of Management, Faculty of Humanities, South Tehran Branch, Islamic Azad University, Tehran, Iran


his study aims to offer a model of propensity toward indebtedness using behavioral factors from 384 indebted customers of Maskan bank in Tehran. A questionnaire comprising 41 questions was administered. The questionnaire addressed demographic variables and seven behavioral factors: financial literacy, risk perception, risk behavior, emotion, materialism, indebtedness, and money-related values. The hypothesis test of Path Analysis used in this study shows that all of the offered hypothesis were accepted.
Results show that financial literacy, risk behavior, money value and materialism have positive impact on propensity toward indebtedness. Risk perception has a negative impact on propensity toward indebtedness that means by increasing of risk perception propensity toward indebtedness decreases. The relationship between negative emotions caused by indebtedness have negative impact on risk perception but positive impact on risk behavioral. Money values has positive impact on materialism and finally, indebtedness shows negative impact on emotions. This means that increasing in debt levels will results in increasing negative emotions. The tests don’t reveal a significant difference in the level of debt according to demographic factors including gender, age, education, occupation and income.


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