Financial anxiety in Mexican corporate government:effect of self-efficacy and neuroticism

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Published: Sep 27, 2024
Updated: 2024-09-27
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2024-09-27 (3)
DOI: https://doi.org/10.17163/ret.n28.2024.10
Keywords:
financial anxiety, financial self-efficacy, personality traits, corporate directors, behavioral finance

Main Article Content

Alfredo Nava-Govela
Universidad Anáhuac
https://orcid.org/0009-0008-1079-0946
Jaime H. Beltran Godoy
Universidad Anahuac
https://orcid.org/0000-0001-5560-5451
Leovardo Mata-Mata
Universidad Anáhuac
https://orcid.org/0000-0003-4713-5116

Abstract

 financial anxiety affects board members in their judgment concerning strategic decisions for their organizations. Both, financial self-effi-cacy and neuroticism bear on the financial anxiety of board members. By applying a structural equation model, this paper analyzes the effect ofboth factors on the financial anxiety of board members in public, private, and non-profit corporations in Mexico. The approach of the structuralequation model is quantitative, non-experimental, and cross-sectional; and is based on a sample of 155 board members of Mexican institutions.The results show that financial self-efficacy affects negatively financial anxiety; whereas higher degrees of neuroticism affect positively financialanxiety. Following these results, it is advisable to consider these personality traits as relevant criteria for the selection of board members in Mexicaninstitutions. Corporate governance policies and practices should also be developed to ameliorate the effect of neuroticism and incentivize the effectof financial self-efficacy in the judgments of board members regarding organizational strategy. The methodology of this study is useful for boardsin institutions of other countries.

Article Details

Issue
Vol. 14 No. 28 (2024): (October-March)
Section
Miscellaneous Section
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