Representing the Pattern of Relationship between Personality Traits and Investment Patterns in the Stock Market

Authors

1 Department of Public Management, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran

2 Department of Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran

3 Department of Management, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran

4 Department of Economics, Bojnourd University, Bojnourd, Iran

Abstract

This study aims at determining the personality traits and investment patterns in the stock market and presenting the pattern with a behavioral finance approach. This is an applied, descriptive- survey, and cross-sectional study. The statistical population includes real investors in the Tehran Stock Exchange. The required information was collected using questionnaire and was analyzed using SPSS and AMOS software. Exploratory and confirmatory factor analysis were used to investigate research questions and the results showed that, the components neuroticism, extroversion, flexibility, agreement, motivator and Self- confidence determine personality traits. Components demographic traits of the investor, type of investment, investment objective, investment time, investment efficiency, and traits of shares determine investment patterns. And  components  risk-taking capabilities, heuristic factors, emotional factors, psychological effects, complaint behaviors, and personal and social values, determine behavioral- finance patterns among true investors in the tehran stock exchange. Investigating the relationships between the research variables indicated that personality traits have a significant effect on behavioral- finance components.

Keywords