Aditi N. Kamath, Sandeep S. Shenoy, Subrahmanya Kumar, Subrahmanya Abhilash, N. Kumar
{"title":"人格特质对投资决策的影响:印度投资者情绪的中介作用","authors":"Aditi N. Kamath, Sandeep S. Shenoy, Subrahmanya Kumar, Subrahmanya Abhilash, N. Kumar","doi":"10.21511/imfi.20(3).2023.17","DOIUrl":null,"url":null,"abstract":"The behavior of investors and their investment decision-making process in the financial markets are guided by psychological (sentiments) and personal characteristics (personality traits). Research in recent years has shown the connection between investor sentiment and personality traits and investment decisions. Though academic works in the field of behavioral finance are growing, studies on personality traits and investment decision-making with investor sentiment as a mediator are sparse. To this end, the paper aims to analyze the effects of Indian retail investors’ Big-five personality traits (Neuroticism, Extraversion, Openness to experience, Agreeableness, and Conscientiousness) on their short-term and long-term investment decision-making with the mediating effect of investor sentiment. The study employs the Partial Least Square-Structural Equation Model to test the framed hypotheses. The findings of the study reveal that Neuroticism has a significant positive effect (β=0.352, p<0.05) on investor sentiment. It further shows that Extraversion has a significant positive effect (β=0.186, p<0.05) on long-term decision-making. On the contrary, the consciousness trait has a significant negative effect (β=-0.335, p<0.05) on short-term investment decision-making. Furthermore, the Openness trait demonstrates a significant effect on both short-term and long-term investment decision-making (β=0.357, p<0.05; β=0.007, p<0.05). However, the findings reveal no significant intervening effect of investor sentiment between personality traits and investment decision-making. Thus, the study strongly exerted the impact of investors’ personality traits on their investment decision-making due to the high influence of personal characteristics over sentiment effects.","PeriodicalId":39060,"journal":{"name":"Investment Management and Financial Innovations","volume":"30 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2023-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Impact of personality traits on investment decision-making: Mediating role of investor sentiment in India\",\"authors\":\"Aditi N. Kamath, Sandeep S. Shenoy, Subrahmanya Kumar, Subrahmanya Abhilash, N. Kumar\",\"doi\":\"10.21511/imfi.20(3).2023.17\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"The behavior of investors and their investment decision-making process in the financial markets are guided by psychological (sentiments) and personal characteristics (personality traits). Research in recent years has shown the connection between investor sentiment and personality traits and investment decisions. Though academic works in the field of behavioral finance are growing, studies on personality traits and investment decision-making with investor sentiment as a mediator are sparse. To this end, the paper aims to analyze the effects of Indian retail investors’ Big-five personality traits (Neuroticism, Extraversion, Openness to experience, Agreeableness, and Conscientiousness) on their short-term and long-term investment decision-making with the mediating effect of investor sentiment. The study employs the Partial Least Square-Structural Equation Model to test the framed hypotheses. The findings of the study reveal that Neuroticism has a significant positive effect (β=0.352, p<0.05) on investor sentiment. It further shows that Extraversion has a significant positive effect (β=0.186, p<0.05) on long-term decision-making. On the contrary, the consciousness trait has a significant negative effect (β=-0.335, p<0.05) on short-term investment decision-making. Furthermore, the Openness trait demonstrates a significant effect on both short-term and long-term investment decision-making (β=0.357, p<0.05; β=0.007, p<0.05). However, the findings reveal no significant intervening effect of investor sentiment between personality traits and investment decision-making. 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Impact of personality traits on investment decision-making: Mediating role of investor sentiment in India
The behavior of investors and their investment decision-making process in the financial markets are guided by psychological (sentiments) and personal characteristics (personality traits). Research in recent years has shown the connection between investor sentiment and personality traits and investment decisions. Though academic works in the field of behavioral finance are growing, studies on personality traits and investment decision-making with investor sentiment as a mediator are sparse. To this end, the paper aims to analyze the effects of Indian retail investors’ Big-five personality traits (Neuroticism, Extraversion, Openness to experience, Agreeableness, and Conscientiousness) on their short-term and long-term investment decision-making with the mediating effect of investor sentiment. The study employs the Partial Least Square-Structural Equation Model to test the framed hypotheses. The findings of the study reveal that Neuroticism has a significant positive effect (β=0.352, p<0.05) on investor sentiment. It further shows that Extraversion has a significant positive effect (β=0.186, p<0.05) on long-term decision-making. On the contrary, the consciousness trait has a significant negative effect (β=-0.335, p<0.05) on short-term investment decision-making. Furthermore, the Openness trait demonstrates a significant effect on both short-term and long-term investment decision-making (β=0.357, p<0.05; β=0.007, p<0.05). However, the findings reveal no significant intervening effect of investor sentiment between personality traits and investment decision-making. Thus, the study strongly exerted the impact of investors’ personality traits on their investment decision-making due to the high influence of personal characteristics over sentiment effects.
期刊介绍:
The international journal “Investment Management and Financial Innovations” encompasses the results of theoretical and empirical researches carried out both on macro- and micro-levels, concerning various aspects of financial management and corporate governance, investments and innovations (including using of quantitative methods). It is focused on the international community of financiers, both academics and practitioners. Key topics: financial and investment markets; government policy and regulation; corporate governance; information and market efficiency; financial forecasting and simulation; financial institutions: investment companies, investment funds, investment banks, hedge funds, private pension funds; objects of real and financial investing; financial instruments and derivatives; efficiency of investment projects; econometric and statistic methods in project management; alternative investments; ratings and rating agencies.