Optimism Bias as Moderator to Deal with Anxiety & Depression: Empirical Evidence from PLS – SEM Based Approach

The research aims at examining the influence of loneliness and stress on anxiety and depression. The role of optimism bias in regulating anxiety and depression dimensions among 726 students in India is investigated. Partial least squares-structural equation modelling (PLS-SEM) approach is used to study the relationships between constructs. According to the data, optimism bias significantly moderates the association among stress and anxiety & between loneliness and anxiety. The research enables understanding of the consequences of Covid-19 upon the psychology of the students while providing an insight into the behavioural implications of loneliness, stress and optimism bias on the anxiety level and depression of students. The study enables the academicians and management in formulating communication and management strategies for students. Limited studies have been found on stress and depression in Indian student's context. It is the first study to employ an optimistic bias scale to investigate the behaviour of students in India and its impact on the students’ mental health using anxiety and depression as variables.