Abstract

NAVA-GOVELA, Alfredo; BELTRAN-GODOY, Jaime H.  and  MATA-MATA, Leovardo. Financial anxiety in Mexican corporate government: effect of self-efficacy and neuroticism. Retos [online]. 2024, vol.14, n.28, pp.341-353. ISSN 1390-8618.  https://doi.org/10.17163/ret.n28.2024.10.

Financial anxiety affects board members in their judgment concerning strategic decisions for their organizations. Both, financial self-efficacy and neuroticism bear on the financial anxiety of board members. By applying a structural equation model, this paper analyzes the effect of both factors on the financial anxiety of board members in public, private, and non-profit corporations in Mexico. The approach of the structural equation 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 financial anxiety. Following these results, it is advisable to consider these personality traits as relevant criteria for the selection of board members in Mexican institutions. Corporate governance policies and practices should also be developed to ameliorate the effect of neuroticism and incentivize the effect of financial self-efficacy in the judgments of board members regarding organizational strategy. The methodology of this study is useful for boards in institutions of other countries.

Keywords : financial anxiety; financial self-efficacy; personality traits; corporate directors; behavioral finance.

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