Do investor’s Big Five personality traits influence the association between information acquisition and stock trading behavior?

2017 ◽  
Vol 7 (4) ◽  
pp. 450-477 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Zia-ur-Rehman Rao ◽  
Hongxing Fang ◽  
Sultan Sikandar Mirza ◽  
Zulfiqar Ali Memon ◽  
...  
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Big Five ◽  
Information Acquisition ◽  
Big Five Personality Traits ◽  
Big Five Personality ◽  
Chinese Stock Market ◽  
Trading Behavior ◽  
Stock Trading ◽  
Content Type

Purpose The purpose of this paper is to investigate the impact of the frequency of information acquisition on the frequency of stock trading. The authors also examined if the Big Five personality traits of investor influence the association between information acquisition and stock trading behavior. Design/methodology/approach The authors adopted NEO Five-Factor Inventory (Costa and McCrae, 1989) inventory to measure the Big Five personality traits of investors and examined the data collected from 541 individual investors of the Chinese stock market. To overcome the potential endogeneity bias, the authors followed two-stage least square method for estimating endogenous covariate by employing instrumental variable analysis. The authors performed probit regression to evaluate the moderating influence of investor personality traits on the association between information acquisition and stock trading behavior. The authors also performed several other tests to check the robustness of the key findings. Findings This research confirmed the previous findings that the more frequently investors acquire information, the more often they trade in stocks. Moreover, the authors added to the existing literature by providing empirical evidence that the Big Five personality traits moderate the relationship of information acquisition with stock trading behavior. Information acquisition tends to increase stock trading frequency in investors with conscientiousness, extraversion and agreeableness traits. On the other hand, it also has the tendency to decrease the intensity of stock trading in investors with openness and neuroticism traits. Research limitations/implications The theoretical model in this study seeks to explain that the psychological factor, namely, investor personality, influences the way an investor interprets signals from information which in turn influences the investor decision to trade in securities. This research suggests that psychological characteristics of investors can be of relevance for policy makers in their attempts to improve their business in the financial services industry. Originality/value This study combines both information search literature and behavioral finance literature to investigate whether or not the information acquisition that relates to investors’ asset allocation decisions is influenced by investor personality. The study offers new theoretical insights into investors’ behavior due to the characteristics of the Chinese stock market which are uniquely different from other stock markets in the world. No previous study has been conducted so far in the Chinese stock market to explore variations in the impact of investors’ information acquisition on their stock trading by the Big Five personality and this paper strives to fill this research gap.

Moderation effect of pleasure seeking and loss aversion in the relationship between personality traits and risky investment intention

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Selim Aren ◽  
Hatice Nayman Hamamci ◽  
Safvan Özcan
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Loss Aversion ◽  
Online Survey ◽  
Big Five Personality Traits ◽  
Big Five Personality ◽  
Moderator Effect ◽  
Content Type ◽  
Risky Investment ◽  
Investment Intentions

Purpose The aim of this study, the moderating effect of pleasure-seeking and loss aversion, was investigated in relation to the big five personality traits with regard to risky investment intentions. Design/methodology/approach In the study, the data was obtained between January and November 2019 via an online survey with convenience sampling. The total number of subjects is 886. The authors used IBM SPSS Statistics for analysis. Exploratory factor analysis, correlation analysis, regression analysis and discriminant analysis were performed. Findings Significant relationships were found between five personality traits and risky investment intentions. In these relationships, the moderator effect of pleasure-seeking for extraversion, conscientiousness and neuroticism personality traits was also determined. Besides, investment preferences for choosing “unknown and new investment” against “known and experienced investment”, which is a typical feature of the balloon periods, were modeled with big five personality traits and motivation variables (pleasure-seeking and loss aversion) and the equation was formed. As a result, high accuracy classification success was obtained. Originality/value The study is unique owing to its findings. In addition, general risk aversion and risky investment intention were investigated simultaneously to explain the different findings in the literature regarding the attitude of big five personality traits to risk and personality traits that show consistent approach were identified.

Big Five personality traits and green consumption: bridging the attitude-intention-behavior gap

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cong Doanh Duong
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Environmentally Friendly ◽  
Big Five Personality Traits ◽  
Openness To Experience ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Green Products ◽  
Content Type ◽  
Green Consumption

PurposeThis study examines the roles of Big Five personality traits, including conscientiousness, agreeableness, extraversion, neuroticism and openness to experience, in shaping green consumption behavior, as well as bridging the attitude-intention-behavior gap in environmentally friendly consumption and testing the gender differences between these associations.Design/methodology/approachA dataset of 611 consumers was collected by means of mall-intercept surveys in major Vietnamese cities. Structural equation modeling (SEM) via AMOS 24.0 was employed to test the proposed conceptual framework and hypotheses, while the PROCESS approach was utilized to estimate mediation standardized regression coefficients.FindingsThe study revealed that in addition to extraversion, other personality traits (agreeableness, conscientiousness, openness to experience and neuroticism) were strongly associated with green consumption. Moreover, attitude towards green products and intention to buy environmentally friendly products were determined to have key roles in explaining consumers' pro-environmental behavior. There was also a notable difference in the impact of personality traits on men's and women's green consumption.Practical implicationsThis study provides useful recommendations for administrational practices seeking to understand consumer behavior, build appropriate marketing and communication campaigns and attract customers to buy environmentally friendly products.Originality/valueThis study makes efforts to resolve the attitude-intention-behavior gap, a recurring theme in the green consumption literature, as well as illustrates the significance of Big Five personality traits in explaining attitude, intention and behavior when purchasing green products. This research also demonstrates that Big Five personality traits have significantly different effects on green consumption attitudes and intention to carry out pro-behavioral consumption.

How do personality traits affect visitor’s experience, emotional stimulation and behaviour? The case of wine tourism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ifigeneia Leri ◽  
Prokopis Theodoridis
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Holistic Approach ◽  
Big Five Personality Traits ◽  
Big Five Personality ◽  
Content Type ◽  
Wine Tourism ◽  
Revisit Intentions ◽  
The Impact

Purpose The purpose of this study is to investigate the moderation effects of the Big Five personality traits on the relationships between holistic experience constructs (i.e. servicescape and other visitors’ behaviours), emotional responses and revisit intention in the context of winery visitation experiences in Greece. Design/methodology/approach The study adopts a holistic approach to visitor experience and suggests that visitors base their experience perception on the servicescape’s attributes and other visitors’ suitable behaviours. Path analysis was adopted to measure the impact of these constructs on visitors’ emotions and the role these emotions play in predicting visitors’ revisit intentions. The moderation effect of the Big Five personality traits in such relationships was examined using the SPSS PROCESS. A self-administered, highly structured questionnaire was distributed to winery visitors in Greece; a total of 615 responses were used in data analysis. Findings The results indicate that all the examined relationships become stronger as a result of visitors having high or average scores for openness, extraversion, agreeableness and conscientiousness, or low scores for neuroticism. Research limitations/implications The findings enhance the existing literature pertaining to experiential marketing, wine tourism marketing and the role of personality in tourism by providing new insights. Practical implications The overall findings may benefit wineries in their efforts to carry out the following: increase visitors’ revisit intentions; design and manage the winery environment and the winery experience effectively; and design marketing strategies. Originality/value The paper’s originality lies in providing information to clarify the role of visitors’ personalities as a contributing factor to their emotional stimulation and their revisit intentions in terms of both constructs of experience (i.e. servicescape and other visitors’ behaviours). Furthermore, this study attempts to respond to recent calls to conduct multidimensional research on the servicescape construct, focusing on both the substantive staging of the servicescape and the communicative staging of the servicescape. Finally, the present study provides new and practical insights regarding the winery experience in the Greek context – an area where very limited research has been conducted so far.

Does investor personality moderate the relationship between information sources and trading behavior? Evidence from Chinese stock market

2017 ◽  
Vol 43 (5) ◽  
pp. 545-566 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Zia-ur-Rehman Rao ◽  
Hong-Xing Fang ◽  
Minghao Gao
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Chinese Stock Market ◽  
Sources Of Information ◽  
Trading Behavior ◽  
Content Type ◽  
Trading Frequency ◽  
Word Of Mouth Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of the key sources of information, namely, financial advice, word-of-mouth communication and specialized press, on trading behavior of Chinese stock investors. The study also analyzed if the association between the key sources of information and trading behavior is influenced by investor personality. Design/methodology/approach The authors adopted the Big Five personality framework and examined the survey results of individual stock investors (n=541) in China. Personality traits of investors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989). The authors performed probit regression analysis to evaluate the moderating influence of investor personality traits on the association between sources of information and stock trading behavior. Findings The results of the study confirm the previous findings that the key sources of information used by investors as a foundation of their financial choices have a significant influence on their trading behavior. The study also provides empirical evidence that investor personality traits moderate the relationship between the key sources of information and trading behavior. Financial advisors tend to increase the frequency of trading in investors with openness, extraversion, neuroticism and agreeableness personality traits, and tend to decrease the intensity of trading in investors with conscientiousness trait. On the other hand, financial information acquired from word-of-mouth communication is more likely to enhance trading frequency in extraverted and agreeable investors, and is more likely to reduce trading frequency in investors with openness, conscientiousness and neuroticism traits. Finally, the use of specialized press leads to more adjustment in portfolios of the investors with openness and conscientiousness traits than those with other personality traits. An alternative mediated model was not supported. Originality/value This research contributes to information search literature and behavioral finance literature and provides empirical evidence that the psychological characteristics of investors are significant predictors of the variations in information-trading link. The study offers new theoretical insights of investors’ behavior due to the characteristics of Chinese stock market which are unique from other stock markets in the world. To the authors’ best knowledge, no previous study has been conducted so far in Chinese stock market to explore variations with regards to the impact of the key sources of information on trading behavior by the Big Five investor personality and this paper seeks to fill this gap.

scholarly journals Pengaruh Moderasi Kepribadian (Big Five Personality) Terhadap Hubungan Akuisisi Informasi dan Perilaku Perdagangan Saham Pada Investor Muda di Indonesia

2019 ◽  
Vol 19 (2) ◽  
pp. 82
Author(s):  
Chentya Novianty ◽  
Maria C. Widyaastuti
Keyword(s):  
Big Five ◽  
Analytical Method ◽  
Information Acquisition ◽  
Positive Relationship ◽  
Big Five Personality ◽  
Trading Behavior ◽  
Stock Trading ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

<p><strong>Abstrak</strong></p><p><strong>Tujuan </strong>- Penelitian ini bertujuan untuk menganalisis dampak frekuensi akuisisi informasi pada frekuensi perdagangan saham yang dimoderasikan oleh Kepribadian (Big Five Personality).</p><p><strong>Desain/Metodologi/Pendekatan - </strong>Data diperoleh langsung melalui penyebaran kuesioner kepada 304 responden yaitu investor muda (berusia 21 sampai 30 tahun) di Indonesia. Rancangan penelitian yang digunakan dalam penelitian ini adalah Pengujian Hipotesis. Metode analisis yang digunkanan dalam penelitian ini Ordinal Logistic Regresion dengan menggunakan program SPSS.</p><p><strong>Hasil Penelitian</strong> -  Hasil dari penelitian ini adalah terdapat hubungan pada akuisisi informasi dan perilaku perdagangan saham, Investor yang tergolong Openness &amp; Neuroticism akan memperlemah hubungan kedua variabel tersebut, sedangkan Conscientiousness, Extraversion dan Agreeableness akan memperkuat hubungan kedua variabel tersebut.</p><p><strong><em><br /></em></strong></p><p><strong><em>Abstract</em></strong></p><p> </p><p><strong><em>Purpose </em></strong><em>–</em><em>This paper was to investigate the impact of the frequency of information acquisition on the  frequency of stock trading</em></p><p><strong><em>Des</em></strong><strong><em>ign</em></strong><strong><em>/Met</em></strong><strong><em>hodology</em></strong><strong><em>/</em></strong><strong><em>Approach </em></strong><em>–</em><em> Data </em><em>obtained directly by distributing questionnaires to 304 respondents is young investors (aged 21 to 30 years) in Indonesia. The research design used in this study is hypothesis testing. The analytical method used in this research is Ordinal Logistic Regresion using SPSS program.</em></p><p><strong><em>Findings - </em></strong><em>The results of this study were that there is a positive relationship between information acquisition and trading behavior. Investors belonging to Openness &amp; Neuroticism will weaken the relationship of both variables, while Conscientiousness, Extraversion and Agreeableness will strengthen the relationship of both variables.</em></p><p> </p>

scholarly journals Big Five personality traits impact on entrepreneurial intention: the mediating role of entrepreneurial alertness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Suleiman Awwad ◽  
Rana Mohammad Najati Al-Aseer
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Entrepreneurial Intention ◽  
Big Five Personality Traits ◽  
Entrepreneurial Intentions ◽  
Big Five Personality ◽  
Content Type ◽  
Mediating Role ◽  
Entrepreneurial Alertness

Purpose The purpose of this study is to investigate the impact of the Big Five personality traits on the entrepreneurial intentions of undergrad university students in Jordan. It further investigates the mediating role of entrepreneurial alertness. Design/methodology/approach A quantitative survey method was conducted with a convenience sample of Jordanian university students. A total of 323 valid questionnaires were received and analyzed. A structural equation modeling with partial least square (PLS) is used to analyze data. Findings Results revealed that conscientiousness, openness and alertness were associated with entrepreneurial intention. Extraversion and openness were associated with alertness, while agreeableness and neuroticism were unrelated to either outcome. Finally, alertness mediates the relationship between extraversion and openness with entrepreneurial intention. Originality/value There is a lack of previous studies investigating the relationship between the Big Five personality traits and students’ entrepreneurial intentions in Jordan, particularly the role of mediating variables in this relationship. This study is considered the first one that examined the mediating role of entrepreneurial alertness in the relationship between personality traits and entrepreneurial intentions.

Engine of entrepreneurial intentions: revisiting personality traits with entrepreneurial education

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhijeet Biswas ◽  
Rohit Kumar Verma
Keyword(s):  
Locus Of Control ◽  
Personality Traits ◽  
Big Five ◽  
Big Five Personality Traits ◽  
Entrepreneurial Intentions ◽  
Big Five Personality ◽  
Need For Achievement ◽  
Entrepreneurial Education ◽  
Content Type ◽  
Management Students

PurposeThe intent to start an entrepreneurial venture is predisposed by certain personality traits. The study aims to analyze the impact of various identified personality traits and entrepreneurial education on entrepreneurial intentions of management students.Design/methodology/approachThe data for the study were gathered from 440 students of top 5 management institutes in India. The study used a cross-sectional design and structured questionnaire based on seven-point Likert scale and was administered employing a purposive sampling method. Structural equation modeling (SEM) was utilized to validate posited hypotheses in the study.FindingsThe study discerns that apart from agreeableness dimension of personality traits, all remaining identified dimensions along with entrepreneurial education had a significant influence on entrepreneurial intentions of management students with need for achievement emerging as the most important enabler. Conscientiousness was the major dimension among big five personality traits bearing a positive influence, while neuroticism registered a negative impact on entrepreneurial intentions. In addition, results bespeak that entrepreneurial education partially mediates the effect of need for achievement, locus of control and innovativeness on entrepreneurial intentions.Research limitations/implicationsThe compendious model proffered in the study might be helpful for students, educators, consultants, financial institutions and policymakers in appreciating the gravity of underlying personality traits.Originality/valueThere is a dearth of research on big five personality traits and entrepreneurial education as enablers of entrepreneurial intentions. The study attempts to integrate big five personality traits model with dimensions of need for achievement, locus of control, innovativeness and entrepreneurial education for management students in India.

Optimizing authentic leadership

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Design Methodology ◽  
Authentic Leadership ◽  
Reading Time ◽  
Big Five Personality Traits ◽  
Big Five Personality ◽  
Content Type ◽  
Pertinent Information

Purpose Personality is important in determining the effectiveness of authentic leadership. Organizations can optimize performance of such leaders by focusing on developing the most influential characteristics of the Big Five personality traits framework. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Personality is important in determining the effectiveness of authentic leadership. Organizations can optimize performance of such leaders by focusing on developing the most influential characteristics of the Big Five personality traits framework. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Exploring Big Five personality traits and gender as predictors of entrepreneurs’ cognitive adaptability

2017 ◽  
Vol 12 (1) ◽  
pp. 143-161 ◽  
Author(s):  
Sami Ullah Bajwa ◽  
Khuram Shahzad ◽  
Haris Aslam
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Big Five Personality Traits ◽  
Equation Modeling ◽  
Survey Method ◽  
Big Five Personality ◽  
Content Type ◽  
Significant Difference ◽  
And Gender

Purpose The purpose of this study was to explore the predictive role of personality and gender in cognitive adaptability of entrepreneurs. By using the theories of personality development, social learning, situated cognition and meta-cognition, a logical relationship between personality traits, gender difference and entrepreneurs’ cognitive adaptability was established. Design/methodology/approach Quantitative strategy and cross-sectional survey method was then deployed to empirically investigate the purposed relationships between variables of interest. Randomly selected 443 working entrepreneurs responded to the survey. Findings Factor analyzed structural equation modeling estimated cognitive adaptability as a second-order factor, with extroversion and neuroticism having a significant impact on cognitive adaptability. Multi-group moderation revealed a significant difference among females and males against the same two personality traits. Originality/value This study in its nature is the first attempt to link Big Five personality traits with cognitive adaptability of entrepreneurs.

Sign in / Sign up

Export Citation Format

Share Document