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.

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 Organizational commitment: an empirical analysis of personality traits

2017 ◽  
Vol 9 (1) ◽  
pp. 18-34 ◽  
Author(s):  
Muhammad Farrukh ◽  
Chong Wei Ying ◽  
Shaheen Mansori
Keyword(s):  
Organizational Commitment ◽  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Five Factor Model ◽  
Equation Modeling ◽  
Continuance Commitment ◽  
Content Type ◽  
Big Five Traits ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of five-factor model of personality on organizational commitment in the higher educational institutes of Pakistan. Design/methodology/approach Quantitative methodology was adopted to measure the impact of personality on organizational commitment. A structured questionnaire was e-mailed to the faculty members of the social science department of higher education institutes. SmartPLS software was used to run the structural equation modeling technique. Findings The findings showed that extroversion, agreeableness, and conscientiousness are positively linked to affective commitment (AC), and neuroticism and openness has negative association with AC. Furthermore, extroversion and agreeableness were found to be negatively linked to continuance commitment. A negative link between neuroticism and continuance commitment while no relationship between conscientiousness, openness, and continuance commitment was found. Research limitations/implications Results have several implications for the personality and commitment literature. First, study provided comprehensive empirical evidence regarding the dispositional basis of organizational commitment notably; the authors found that the Big Five personality traits as a whole are significantly associated with organizational commitment. Second, the current findings underscore the role of agreeableness in shaping organizational commitment. Agreeableness was the strongest predictor of both AC and continuance commitment. Agreeableness may be especially relevant for predicting employee outcomes that are reliant on strong interpersonal or social exchange relationships. As such outcomes are becoming more and more critical in employee, group, and organizational effectiveness. Originality/value In general, findings show that Big Five traits play an important role in understanding employee commitment to the organization. Consistent with previous studies on personality traits in the workplace, practitioners will benefit from considering all of the Big Five traits in their selection systems.

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.

Entrepreneurial intentions: the role of family factors, personality traits and self-efficacy

2017 ◽  
Vol 13 (4) ◽  
pp. 303-317 ◽  
Author(s):  
Muhammad Farrukh ◽  
Azeem Ahmad Khan ◽  
Muhammad Shahid Khan ◽  
Sara Ravan Ramzani ◽  
Bakare Soladoye Akeem Soladoye
Keyword(s):  
Personality Traits ◽  
Self Efficacy ◽  
Structural Equation ◽  
Positive Impact ◽  
Family Background ◽  
Business Students ◽  
Entrepreneurial Intentions ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of family background, big five personality traits and self-efficacy on entrepreneurial intentions (EIs) of business students in private universities in Pakistan. Design/methodology/approach Data were collected with the help of structured questionnaires, 500 questionnaires were distributed among the students and 306 useable questionnaires were received and analyzed. Structural equation modeling was used to investigate the relationship among the study variables. SmartPLS was utilized to run the analysis. Findings The findings revealed a strong relationship between the exogenous and endogenous variables. The variance accounted by the independent variables was 74.3 percent in the EIs of the students. Family background was found to have a positive impact on the EIs of students. The findings also showed a positive relationship between self-efficacy and EIs. Consciousness, extroversion and openness to experience are positively linked with EIs while neuroticism and agreeableness did not show any relationship. Originality/value The study’s findings attract the attention of the academicians to take note of the factors examined while training the students the art of entrepreneurship. This is because this study has revealed that if these factors are not present the intention of the students to start a business venture may prove to be weak. Entrepreneurial activities are one of the biggest ways to reduce unemployment, thus, it is suggested that academicians should develop psychological plans and training to motivate the students to convert their intentions into actions.

scholarly journals The relationships between big-five personality traits and the choice of luxury product attributes by Vietnamese consumers

2017 ◽  
Vol 24 (03) ◽  
pp. 94-115
Author(s):  
Tuu Ho Huy
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Missing Values ◽  
Reliability And Validity ◽  
Equation Modeling ◽  
Big Five Personality ◽  
Positive Effects ◽  
Big Five Model ◽  
Negative Impacts

This study tests and discusses the relationships between personality traits in the Big-Five Model and consumers’ choice of luxury attributes (CLA) associated with branded products in Vietnam. A total of 500 adult consumers are interviewed by a self-administrated questionnaire in three cities in Vietnam. Because 33 cases are eliminated for missing values, the data of 467 consumers are employed in this study. Structural equation modeling is also adopted to evaluate the reliability and validity of the constructs and test hypotheses. The results indicate that while extraversion, openness, and agreeableness have significantly positive effects, conscientiousness and neuroticism have significantly negative impacts on the choice of luxury attributes. Thus, Vietnamese consumers with different personality traits have different preferences toward luxury products. The extra value of the paper is to provide deeper insights into how and why each personality trait can link with the choice of luxury attributes. This paper, in addition, particularly stresses that consumers who register in extraversion, openness, and agreeableness are the target audience for luxury branded products in Vietnam.

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.

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.

Factors influencing investor’s decision making in Pakistan

2018 ◽  
Vol 10 (1) ◽  
pp. 70-87 ◽  
Author(s):  
Muhammad Haroon Rasheed ◽  
Amir Rafique ◽  
Tayyaba Zahid ◽  
Muhammad Waqar Akhtar
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Structural Equation ◽  
Quantitative Research ◽  
Investment Decision ◽  
Equation Modeling ◽  
Individual Investors ◽  
Content Type ◽  
Investment Decision Making ◽  
The Impact

Purpose The purpose of this paper is to look at the impact of two most commonly used heuristics, namely, representative bias and availability bias on investment decision making and to check that either locus of control interact with the said relations through theoretical proposal and then verification through empirical evidence. Design/methodology/approach The study is a quantitative research using a survey questionnaire for its data collection. Data are collected from 227 investors operating at Islamabad, Lahore, and Sargodha in Pakistan and analyzed using structural equation modeling while the interaction effect is analyzed through simple linear regression following the rules set by Baron and Kenny (1986). Findings The results reveal that both of the heuristics under study significantly cause investors to deviate from rational decision making while the locus of control have no significant moderating effect. Originality/value The proposed model provides insight on how the behavioral factors can lead investors to suboptimal decision making. This study is first of its kind to quantify the degree of irrationality caused by these factors. The findings of this study are practically useful for individual investors, investment managers, and also for policy makers.

The role of extraversion and agreeableness traits on Gen Y’s attitudes and willingness to pay for green hotels

2017 ◽  
Vol 29 (1) ◽  
pp. 607-623 ◽  
Author(s):  
Candy Mei Fung Tang ◽  
Desmond Lam
Keyword(s):  
Willingness To Pay ◽  
Personality Traits ◽  
Behavioral Intentions ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Gen Y ◽  
The Impact ◽  
Green Hotels

Purpose This paper aims to examine the role of extraversion and agreeableness personality traits on Generation Y (Gen Y) consumers’ attitudes toward and willingness to pay for green hotels. Gen Y is a large and influential generational group, with a significant interest in green issues. There has been a lack of research on the consumer decision-making process toward green hotels. Specifically, the impact of personality on green attitudes and behavioral intentions is rarely investigated. Design/methodology/approach A major survey consisting of 406 final respondents was conducted. The 29-item survey questionnaire comprises items for extraversion, agreeableness, attitudes toward green hotels and behavioral intention toward green hotels. Numerous statistical techniques, including structural equation modeling, were used to evaluate the data collected. Findings The results show that extraversion and agreeableness personality traits are positively associated with respondents’ attitudes toward green hotels. Stronger and more positive attitudes toward green hotels lead to greater willingness to pay for green hotels. Moreover, attitudes toward green hotels mediate the relationship between the two personality traits and willingness to pay. These findings of Gen Y subsegments can be useful to hotel managers in identifying who are more likely to stay in and pay for environmentally friendly hotels. Originality/value Gen Ys are an influential consumer age group in the service industry, and their general attitudes toward “green” products are important to modern hoteliers. However, few researchers have examined Gen Ys’ attitudes and behavioral intentions toward green issues. No research has examined the role of personality traits on consumers’ perceptions of green hotels. The present study found that the extraversion and agreeableness traits of Gen Y individuals are linked to their attitudes toward and willingness to pay for green hotels.

Personality factors as predictors of online consumer engagement: an empirical investigation

2017 ◽  
Vol 35 (4) ◽  
pp. 510-528 ◽  
Author(s):  
Jamid Ul Islam ◽  
Zillur Rahman ◽  
Linda D. Hollebeek
Keyword(s):  
Personality Traits ◽  
Purchase Intention ◽  
Structural Equation ◽  
Positive Association ◽  
Equation Modeling ◽  
Personality Factors ◽  
Consumer Engagement ◽  
Content Type ◽  
Big Five Model ◽  
Insight Into

Purpose The purpose of this paper is to provide insight into the relationship between consumer personality traits and consumer engagement (CE) in the online brand community (OBC) context. This study also examines the effect of CE on consumers’ ensuing purchase intention. Design/methodology/approach Using a survey incorporating the Big Five model of personality, 390 responses were collected from students who were members of at least one Facebook-based OBC. Structural equation modeling was used to analyze the data. Findings The results reveal that extraversion represents the strongest driver of CE in OBCs, followed by openness to experience, neuroticism and agreeableness. Conscientiousness was found to be negatively related to CE. The findings also indicate a positive association between CE and purchase intention. Practical implications This paper highlights the ways in which marketers can capitalize on consumer personality traits and develop corresponding strategies that will not only increase CE in OBCs, but also consumers’ ensuing purchase intent for specific offerings. Originality/value This research is among the first to demonstrate and empirically validate insight into the ways in which consumer personality traits drive CE in OBCs. This study, thus, adds to the rapidly developing research stream on CE by exposing and empirically validating an integrated set of influential consumer personality-based antecedents of CE, and examining key ensuing outcomes of CE.

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