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