Impact of Personality Traits on Risk Tolerance and Investors' Decision Making

2019 ◽  
Vol 8 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Misbah Sadiq ◽  
Hareem Amna
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Descriptive Analysis ◽  
Investment Decisions ◽  
Risk Tolerance ◽  
Primary Data ◽  
Individual Investors ◽  
Confirmatory Factor ◽  
The Relationship ◽  
Practical Implications

This article investigates the relationships between personality traits, risk tolerance, and investment decisions and highlights the importance of personality traits in determining risk tolerance levels and investment decisions. Personality traits are classified according to the Big Five taxonomy: extroversion, agreeableness, conscientiousness, neuroticism and openness to experience. Primary data was collected from 330 individual investors from Islamabad. Descriptive analysis of the data was run on SPSS, reliability of the constructs was assessed through Confirmatory Factor Analysis (CFA), whereas, Structural Equational Modelling (SEM) was used to conduct hypothesis testing through path analysis. As per the results of CFA, the constructs were found to be reliable. Mediation analysis confirmed that risk tolerance partially mediated the relationship between personality traits and investment decisions. This study and results have theoretical and practical implications for the investors, financial planners and managers.

scholarly journals Do Open-Minded Student Teachers Have More Favorable Attitudes Towards Different Dimensions of Heterogeneity?

2018 ◽  
Vol 8 (1) ◽  
pp. 133 ◽  
Author(s):  
Marcus Syring ◽  
Teresa Tillmann ◽  
Sabine Weiss ◽  
Ewald Kiel
Keyword(s):  
Personality Traits ◽  
Student Teachers ◽  
Big Five ◽  
Measurement Instrument ◽  
Teacher Professionalism ◽  
Confirmatory Factor ◽  
Different Dimensions ◽  
Teachers Attitudes ◽  
The Relationship ◽  
Practical Implications

The present study aims at investigating student teachers’ attitudes towards heterogeneity, which represent one part of teachers’ profession and determine future teacher action. Particularly, it addresses research gaps regarding the relationship between attitudes and personality traits such as the Big Five, which are also important in the field of teacher professionalism. Through confirmatory factor analysis, the validity of an existing measurement instrument of attitudes was verified in a sample with 294 student teachers. Personality traits represented significant predictors of some of the attitudes measured, but were only able to explain relatively little variance. Practical implications for teacher training are discussed.

scholarly journals The role of personality traits in promoting customer citizenship behaviour: special reference to the homestay tourism context in Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shanika Lakmali ◽  
Kanagasabai Kajendra
Keyword(s):  
Sri Lanka ◽  
Personality Traits ◽  
Service Providers ◽  
Positive Impact ◽  
Primary Data ◽  
Big Five Personality ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeThis study aims to explore customer personality traits as an antecedent of customer citizenship behaviour which positively facilitates service providers.Design/methodology/approachThis study follows the positivism research paradigm. Hence, primary data were collected from 250 homestay visitors who stayed at five selected homestays located at Mirissa homestay zone, Sri Lanka.FindingsThe present study's findings reveal that “agreeableness,” “extraversion” and “conscientiousness” personality traits promote customer citizenship behaviour. Furthermore, the openness to “experience” trait identified to have a statistically insignificant relationship with CCB and neuroticism recorded a positive impact on the relationship between CCB and personality, contrary to the existing literature.Practical implicationsThis study comprehensively explains how service providers should arrange their service facilities to increase customer willingness to perform citizenship behaviour, which helps develop their services.Originality/valuePrevious research has investigated that customer personality in terms of prosocial and proactive nature impacts CCBs. In contrast, the effect of Big Five personality traits on CCB is highlighted in this study.

scholarly journals BIG FIVE PERSONALITY TRAITS, DEMOGRAPHY AND OVERCONFIDENCE

2020 ◽  
Vol 3 (1) ◽  
pp. 13-27
Author(s):  
Latifah Putranti ◽  
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Demographic Factors ◽  
Regression Method ◽  
Big Five Personality Traits ◽  
Personality Types ◽  
Primary Data ◽  
Big Five Personality ◽  
Chi Square ◽  
The Relationship

This study aims to determine the factors that influence overconfidence in student investors in Yogyakarta. This study explores the relationship between demographic factors (sex, age, education) and big five personality traits (agreeableness, concientiousness, extraversion, neuroticism, openness) with overconfidence. Primary data collected from student investors through questionnaires. The statistical method used is chi-square to determine the relationship between demographic factors and overconfidence. Regression method to determine the relationship between personality types with overconfidence. Analysis using SPSS for Windows 20 on 100 sample sizes. The results of the regression analysis showed that there was an influence between concientiousness, extroversion and openness personality type variables on overconfidence. Agreeableness and neuroticism have no effect on overconfidence. The study also found an influence between demographic factors (sex, age, education) and overconfidence.

scholarly journals Study of Investment Decisions and Personal Characteristics through Risk Tolerance: Moderating Role of Investment Experience

2020 ◽  
Vol 9 (34) ◽  
pp. 57-68
Author(s):  
Nasira Perveen ◽  
Ashfaq Ahmad ◽  
Muhammad Usman ◽  
Faiza Liaqat
Keyword(s):  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Personal Characteristics ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Financial Advisors ◽  
Investment Experience ◽  
The Relationship

Investment decisions could be affected by behavioral biases associated with personal characteristics. This study empirically investigates the effect of personal characteristics on investors’ investment decision through risk tolerance. Furthermore, investment experience moderates the nexus between personal characteristics and risk tolerance. The scale consisting of 24 items was used related to selected constructs and variables. Data was collected form 175 individual investors of Pakistan Stock Exchange. PLS-SEM was used to make statistical analysis. The findings indicate that extraversion has substantial positive impact on investment decisions. Moreover, risk tolerance partially mediates the relationship between extroversion and investment decisions. The relationship between introversion and investment decisions is negative and risk tolerance partially mediates the aforesaid relationship. Furthermore, it is statistically proved that investment experience substantially moderates the association between extraversion and risk tolerance. However, investment experience does not play any conditional role in the association between introversion and risk tolerance. This study can be helpful for financial advisors to provide best consultancy to their clients (investors), while considering their personal characteristics.

PENGARUH PERILAKU KEUANGAN HEURISTIK TERHADAP KEPUTUSAN INVESTASI SAHAM PADA BURSA EFEK INDONESIA DENGAN INVESTASI ETIS SEBAGAI VARIABEL INTERVENING STUDI EMPIRIS PADA MASYARAKAT INVESTOR KOTA PALEMBANG

2020 ◽  
Vol 13 (1) ◽  
pp. 28
Author(s):  
Emil Hasudungan Sihotang ◽  
Muhamad Adam ◽  
Marlina Widiyanti ◽  
Yuliani Yuliani
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Investment Decisions ◽  
Mental Accounting ◽  
Primary Data ◽  
Equation Modeling ◽  
Individual Investors ◽  
Ethical Investment ◽  
Investment Returns ◽  
The Relationship

<p class="BasicParagraph">Tujuan dari penelitian ini untuk mengetahui bukti empiris pengaruh perilaku keuangan heuristik (<em>salience, rerpresentativness dan mental accounting</em>) dan investasi etis terhadap keputusan investasi saham yang dilakukan oleh investor individu di kota Palembang pada tahun 2019. Penelitian ini bersifat kausal menggunakan data primer 145 responden dengan teknik purposive sampling. Program analisis Structural Equation Modeling (SEM) Amos digunakan untuk mengukur hubungan antara variabel penelitian. Hasil penelitian menunjukkan bahwa perilaku keuangan heuristik salience dan mental accounting berpengaruh signifikan terhadap keputusan investasi, sedangkan <em>representativness</em> tidak  signifikan terhadap keputusan investasi dan investasi etis mampu memediasi perilaku keuangan heuristik terhadap keputusan investasi.</p><p class="BasicParagraph"><strong><em>The purpose of this study is to find out empirical evidence of the influence of financial heuristics (salience, rerpresentativness and mental accounting) and ethical investment on investment decisions made by individual investors in the city of Palembang in 2019. This study uses causal data using primary data of 145 respondents with taking techniques purposive sample. Analysis of the Amos Structural Equation Modeling (SEM) program is used to measure the relationship between research variables. The results showed heuristic financial facts salience and mental accounting have a significant effect on investment decisions, while representation does not have a significant effect on investment returns and ethical investment is able to mediate heuristic financial problems on investment decisions.</em></strong></p>

scholarly journals Impact of Personality Traits on The Investor Sentiment

2020 ◽  
Vol 2 (1) ◽  
pp. 60-75
Author(s):  
Taufik Nur Hidayah ◽  
◽  
Lisa Kustina ◽  
Keyword(s):  
Personality Traits ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Investment Decisions ◽  
Structural Equations ◽  
Personality Characteristics ◽  
Individual Investors ◽  
Individual Investor ◽  
The Impact ◽  
The Relationship

In making investment decisions on the Indonesian Stock Exchange, this study evaluates the relationship between personality traits and individual investor activity bias. This research uses a questionnaire obtained from Indonesia's 205 individual investors. Modelling of structural equations (SEM) is used to analyse the impact of personality characteristics on component behaviour bias. This finding indicates that the traits of neuroticism, extraversion, and openness are strongly related to the different biased behaviours of individual investors on the Indonesian Stock Exchange. This analysis offers evidence that a relationship exists.

Individual Differences in Students' Preferences for Lecturers' Personalities

2005 ◽  
Vol 26 (4) ◽  
pp. 176-184 ◽  
Author(s):  
Adrian Furnham ◽  
Tomas Chamorro-Premuzic
Keyword(s):  
Individual Differences ◽  
Personality Traits ◽  
Big Five ◽  
Student Ratings ◽  
Descriptive Statistics ◽  
Personality Profile ◽  
Similarity Effect ◽  
Intelligence Scores ◽  
The Relationship

Abstract. This study examines the relationship between students' personality and intelligence scores with their preferences for the personality profile of their lecturers. Student ratings (N = 136) of 30 lecturer trait characteristics were coded into an internally reliable Big Five taxonomy ( Costa & McCrae, 1992 ). Descriptive statistics showed that, overall, students tended to prefer conscientious, open, and stable lecturers, though correlations revealed that these preferences were largely a function of students' own personality traits. Thus, open students preferred open lecturers, while agreeable students preferred agreeable lecturers. There was evidence of a similarity effect for both Agreeableness and Openness. In addition, less intelligent students were more likely to prefer agreeable lecturers than their more intelligent counterparts were. A series of regressions showed that individual differences are particularly good predictors of preferences for agreeable lecturers, and modest, albeit significant, predictors of preferences for open and neurotic lecturers. Educational and vocational implications are considered.

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