Executives with higher negative emotional traits take fewer risks: Study

Written by: Samyuktha
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London, July 10 (ANI): A new study has revealed that executives with higher negative emotional traits take fewer risks too.

The study combined two main emotional traits, positive (such as interest or enthusiasm) emotional traits and negative (such as nervousness or irritation).

"It is worth pointing out that although it may not seem so, these two types of emotional traits are two separate dimensions of the character of any individual.

"An individual can be very emotional, not emotional at all, or be very emotional in positive traits and not at all in negative ones and vice versa", said Juan Bautista Delgado Garcia, co-author of the study and researcher at UBU.

"What has been observed is that the greater the negative emotional traits of the directors, the higher the proportion of credits with guarantees in rem the bank has and the fewer financial leases.

"In the case of commercial credits, no form of influence on emotions was detected," said Delgado.

The investigation also compares the connection between business risk and previous experience in the banking sector, educational level, experience of the executive in a risk area and their participation in property.

"The most significant of these aspects is the educational level of the directors, in other words, it has an influence if the director has a degree, a master's or a doctorate. The higher the degree, the greater the level of risk assumed by the bank they manage", states Delgado.

The study is published in the British Journal of Management. (ANI)

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