Role of Personality and Psychological Attributes of Financial Managers in Capital Budgeting Decisions: Case of Spinning Industry of Pakistan

Abstract

The current study aims to investigate the role of personality and psychological attributes of finance managers in the success of their capital budgeting decisions in the industrial sector of Pakistan. For said purpose, we employ a sequential explanatory mixed-method research design. First, the MBTI scale is used to explore the personality traits of the managers working in spinning firms. Then based on the result of the MBTI scale, ten financial managers were selected for semi-structured interviews. NVIVO 11 was used to perform qualitative data analysis. It is established from the results of thematic analysis; the commander is the most effective personality trait of managers for the successful capital budgeting decisions followed by executive, defender, virtuoso, and logistician. Further, the present study also establishes a significant connection between the personality traits of successful managers and their Psychological attributes.