Narcissistic Personality and Financial Risk Tolerance

Abstract

The purpose of this study is to investigate the relationship between an individual’s narcissistic personality and his/her financial risk tolerance in an emerging country sample. The sample consists of undergraduate university students who have been taking finance classes in their student life. The data is examined using mean differences and regression analyzes in this study. The main findings show that men tend to be more narcissistic and more risk-tolerant than women. The regression analysis result shows that narcissism and financial risk-taking have a statistically positive and significant relationship. In other words, the increase in the narcissism level of an individual leads him/her to be more risk-tolerant. This study has two main contributions to the literature; providing a framework for measuring the link between narcissism and financial risk tolerance and providing evidence about “narcissism bias” from an emerging country.