Information sources and trading behavior: does investor personality matter?

2016 ◽  
Vol 8 (2) ◽  
pp. 94-117 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Hong Xing Fang ◽  
Amjad Iqbal
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Futures Market ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Sources Of Information ◽  
Trading Behavior ◽  
Content Type ◽  
Trading Frequency ◽  
The Impact

Purpose This paper aims to investigate the impact of sources of information on trading behavior by analyzing the influence of investor personality in Chinese futures market. Design/methodology/approach The authors adopted the Big Five personality framework and examined the survey results of individual investors (n = 333) in Chinese futures market. Personality traits of futures investors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989) which is a shortened version of revised NEO personality inventory of the Big Five model (Costa and McCrae, 1992). Confirmatory factor analysis was conducted to assess the fitness of model. Structural equation modeling was used to evaluate the moderating influence of investor personality traits on the association between source of information and trading behavior. Findings The results confirm the previous findings that the sources of information used by investors as a foundation of their financial choices have a significant impact on trading frequency. The authors also provide an empirical evidence that investor personality traits moderate the relationship between sources of information and trading behavior. Financial advice from professionals is likely to increase trading frequency in investors with neuroticism and openness personality traits, and to reduce trading frequency in conscientious and extravert investors. Similarly, financial information acquired via word-of-mouth communication results in more trading in extravert and agreeable investors. Finally, information acquisition from specialized press causes more adjustment of conscientious investors’ portfolios. Theoretical explanations, implications and recommendations for future research are discussed. Originality/value This study combines information search and behavioral finance literature to demonstrate that the impact of various sources of market information on asset allocation decisions is influenced by investor personality. No previous study has been conducted yet to explain variations in the impact of sources of information on trading behavior by the Big Five personality traits and this paper seeks to fill this gap in Chinese futures market.

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.

Moderating influence of advisor personality on the association between financial advice and investor stock trading behavior

2018 ◽  
Vol 36 (5) ◽  
pp. 947-968 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Muhammad Ansar Majeed ◽  
Sultan Sikandar Mirza ◽  
Salman Yousaf ◽  
Khalil Jebran
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Financial Services ◽  
Least Square ◽  
Trading Behavior ◽  
Stock Trading ◽  
Content Type ◽  
Trading Frequency ◽  
Financial Advice ◽  
The Impact

Purpose The purpose of this paper is to investigate the role of financial advice on investor trading behavior by analyzing the influence of advisor personality. Design/methodology/approach The study utilized the Big Five personality framework from Costa and McCrae (1992) to measure personality traits of advisors and examined the data collected from 314 stock investor–advisor dyads. Personality traits of advisors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989). Confirmatory factor analysis was conducted to assess the fitness of the Big Five model. We followed two-stage least square method for estimating endogenous covariate by employing instrumental variable analysis. Probit model was used to evaluate the moderating influence of advisor personality traits on the association between the usage of financial advice and trading behavior. Findings The authors found that financial advice positively impacts investors’ stock trading frequency. The authors also provide empirical evidence that financial advice is more likely to increase trading frequency when advisor personality tends to be openness, conscientiousness and agreeableness. On the other hand, information acquired from financial advisors causes fewer adjustments in investors’ portfolios when the personality of advisors is likely to be extraverted and neurotic. Research limitations/implications The theoretical model in our study seeks to explain that a psychological factor, namely, advisor personality, influences the way an investor interprets information signals from financial advice, which, in turn, influences the investor’s decision to trade in securities. Practical implications This research suggests that characteristics of advisors other than those of investors can be of relevance for policy makers in their attempts to improve their business in the financial services industry. Originality/value Survey-based studies in finance are lacking. This study adds to the existing literature of behavioral finance that accounts for the observed variations in investors’ financial decision making explained by psychological factors. No previous study has been conducted so far exploring variations in the impact of financial advice on investors’ stock trading behavior by the Big Five advisor personality, and this paper strives to fill this research gap in Chinese stock market.

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.

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.

Personality traits and investor sentiment

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
H. Kent Baker ◽  
Satish Kumar ◽  
Nisha Goyal
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Investor Sentiment ◽  
Equation Modeling ◽  
Individual Investors ◽  
Content Type ◽  
Behavioral Biases ◽  
Big Five Model ◽  
The Impact

Purpose This paper examines the relation between the Big Five model of personality traits and behavioral biases (overconfidence, disposition effect, anchoring, representativeness, metal accounting, emotional bias and herding) of Indian individual investors when making investment decisions. Design/methodology/approach The authors use a structured questionnaire to obtain responses from 515 stock investors in India between August 2016 and January 2017. Based on components identified through factor analysis, the authors use structural equation modeling to examine the effect of specific personality traits. Findings The findings indicate a significant association between the traits of neuroticism, extroversion and conscientiousness as well as behavioral biases of individual investors. Openness has a significant relation with only mental accounting and the agreeableness trait has no relation with the behavioral biases examined. Research limitations/implications The findings imply that understanding investor personality differences and investment psychology can help financial advisors and wealth managers modify products and services to better suit client needs. Originality/value To the best of the authors’ knowledge, no previous study has examined the impact of the Big Five model of personality traits on various behavioral biases among Indian investors.

Customer personality and relationship satisfaction

2015 ◽  
Vol 33 (2) ◽  
pp. 122-142 ◽  
Author(s):  
Vishal Mishra ◽  
Sridhar Vaithianathan
Keyword(s):  
Relationship Satisfaction ◽  
Personality Traits ◽  
Big Five ◽  
Emerging Economies ◽  
Personality Trait ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to examine the influence of customer personality and customer relationship proneness (CRP) on customer’s relationship satisfaction (CS) with the firm in emerging economies context. In the study, the authors state that the relationship proneness of the customer (CRP) would be influenced by personality trait of the customer. To examine the argument on personality trait, the authors have adopted Big Five personality trait theory in this study. The authors also argue that CRP would influence CS. Furthermore the authors put forth that customer’s perception of marketer’s relationship orientation (RMO) would mediate the relationship between CRP and CS. Design/methodology/approach – Data for the study were collected through structured questionnaire. A sample of 428 respondents was obtained through questionnaire survey (response rate 41.19 percent) and the hypotheses depicting the aforementioned relationships were empirically tested in the context of banking services in India. Structural equation modeling (SEM) technique was used for data analysis. Findings – The results confirm that personality traits influences CRP. Further, customer’s perception of RMO is found to have a mediating effect. Research limitations/implications – The study utilizes cross-sectional data, so the results of the study might vary depending upon the context (country/sector). Practical implications – The outcomes of the study can be utilized by the marketers, particularly in the emerging economies like India for formulating targeted strategies in accordance with the personality type of the customers. Originality/value – The relationship between CRP, personality traits and CS of the customer using Big Five personality theory has been empirically analysed in the context of an emerging economy.

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.

scholarly journals The Nexus Between the Big Five Personality Traits Model of the Digital Economy and Blockchain Technology Influencing Organization Psychology

2021 ◽  
Vol 12 ◽  
Author(s):  
Yu Dan ◽  
Alim Al Ayub Ahmed ◽  
Supat Chupradit ◽  
Priyanut Wutti Chupradit ◽  
Abdelmohsen A. Nassani ◽  
...  
Keyword(s):  
Emotional Intelligence ◽  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Entrepreneurial Behavior ◽  
Blockchain Technology ◽  
Big Five Model ◽  
The Impact

The basic aim of the study was to understand the role of the Big Five model of personality in predicting emotional intelligence and consequently in triggering the entrepreneurial behavior of the employees. The emotional intelligence of the individuals plays a very important role in decision making, enhancement of quality of living, and many other social realms. Hence, the intelligent use of emotions can make or break an individual’s future considering their attitude toward exploiting the entrepreneurial opportunities available. This study has measured the impact of personality traits on emotional intelligence and EI’s role in digital entrepreneurial behavior. The population used in this study was the middle management employees in the corporate sector of the mainland in China. The sample size taken in this study was 260 and selected through convenient sampling. The data was collected through a structured questionnaire measuring each variable. The data collected was employed to SmartPLS 3.3 for analyzing through structural equation modeling to measure the hypotheses. The study has found the partial effect of the Big Five model of personality on emotional intelligence, which significantly predicted the digital entrepreneurial behavior of the employees. The organizations can use the study findings to anticipate the employees’ possible prospects and endeavors regarding their digital entrepreneurial behaviors.

scholarly journals Predicting hotel attractiveness via personality traits of applicants

2018 ◽  
Vol 30 (10) ◽  
pp. 3135-3155 ◽  
Author(s):  
Victoria Bellou ◽  
Nikolaos Stylos ◽  
Roya Rahimi
Keyword(s):  
Personality Traits ◽  
Work Experience ◽  
Structural Equation ◽  
Job Applicants ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Personality Profiles ◽  
Content Type ◽  
Main Research ◽  
The Impact

Purpose Despite the fact that hotels rely heavily upon frontline employees, extant evidence on what makes a hotel attractive in the eyes of job applicants is scarce. Thus, this paper aims to incorporate the Big Five personality traits model to identify what potential hotel job applicants are likely to seek in their prospective employers. Design/methodology/approach Applicants for non-managerial, frontline posts at upscale hotels were approached via three branches of a career agency located in England, UK; their responses were gathered via a self-administered questionnaire. The 522 usable responses were used in a covariance-based, multi-group structural equation modeling scheme to investigate three main research propositions with regards to the applicants’ personality traits’ influence on their perceptions of a hotel’s attractiveness as a potential employer. Findings Analysis of responses indicates significant differences regarding the impact of extraversion, conscientiousness and openness on perceived facets of employer attractiveness. Additionally, findings suggest that high self-esteem does make applicants more demanding, while work experience also influences their preferences regarding the hotels’ profiles as an employer. Research limitations/implications The results of this study are limited to applicants for non-managerial, frontline job positions in upscale hotels in the UK. Practical implications Practically, this study offers practitioners valuable feedback regarding the potential applicant’s personality profile that grants the best fit with an upscale hotel. Originality/value While different studies tried to identify the organizations’ attributes that attract potential applicants, evidence on what attracts individuals to a hotel is very limited. Hence, the present study tries to address this gap and link potential applicants’ personality profiles with that of hotels as employers.

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