Cognitive strain and performance reflection: Unpacking Financial Management-induced test anxiety across educational programmes, age, and gender

Test anxiety is prevalent in undergraduate business studies, depleting students' cognitive and emotional resources and hindering academic, personal and professional success. This issue appears more pronounced in developing countries, where Financial Management courses pose significant challenges for business students. This study explored specific test anxiety factors related to a Financial Management course and their influence on business students’ academic performance. It also profiled students based on anxiety levels and demographics. Exploratory and confirmatory factor analyses identified Pre-Exam Focus and Recall Anxiety (PEFRA) and Post-Exam Reflection and Performance Concern (PERPC) as key factors, with PEFRA exerting the strongest influence on academic performance (based on structural equation modelling). Hierarchical and K-Means Cluster Analyses revealed two groups: High Anxiety Strugglers (high PEFRA, extremely high PERPC, lower performance, predominantly female, and mostly in Management programmes) and Low Anxiety Achievers (low PEFRA, moderate PERPC, higher performance, mostly male and in Accounting programmes). While respondents aged 23–24 years were present in both clusters, age was not a strongly distinguishing characteristic. Interventions should prioritise reducing PEFRA through anxiety management workshops, time management training, and practice exams. Tailored strategies for high-anxiety students, particularly in management programmes in developing contexts, could enhance academic success and retention in business studies.