Discussion on the Role of Emotional Intelligence in Financial Decision-Making

Abstract

Financial decision-making in today's complex landscape requires more than just technical prowess—it demands a blend of intellectual acumen and emotional intelligence. Financial managers must possess strong "people" skills alongside their technical expertise to effectively navigate the intricacies of modern financial environments. The ability to strike the right balance between raw intellect and emotional balance can significantly influence the completeness and reception of financial proposals among management teams tasked with their implementation. This study takes a theoretical approach to explore the relationship between emotional intelligence and financial decision-making. It highlights the importance of emotional intelligence in complementing technical and financial strengths, emphasizing its role in enhancing the decision-making process. The intersection of emotional intelligence and financial decision-making is deemed crucial for ensuring sound and effective financial outcomes. The study's findings underscore the significance of recruiting financial teams that possess a well-rounded combination of skills and abilities, including both analytical capabilities and emotional intelligence. By assembling teams that exhibit a balance of technical expertise and interpersonal skills, organizations can enhance their capacity to make informed and successful financial decisions. Our study advocates for a holistic approach to financial decision-making that recognizes the importance of emotional intelligence alongside technical proficiency. By fostering a workplace culture that values and cultivates both aspects, organizations can empower their financial teams to navigate challenges, foster collaboration, and drive sustainable financial success.