An Intimate Portrait of the Individual Investor
42 Pages Posted: 16 Mar 2006
Date Written: March 2006
We established that there are statistically significant relationships between personality and both investment decisions and portfolio performance. We found significant associations with personality traits captured by Costa and McRae's (1992) operationalisation of Norman's (1963) 'Big Five' (Negative Emotion, Extraversion, Openness to Experience, Agreeableness and Conscientiousness), Bem's (1977) psychological gender traits (Masculinity and Femininity) and Jackson's (1976) personality traits of Preference for Innovation and Risk Taking Propensity.
Keywords: Behavioral Finance, Norman's 'Big Five', Psychological Gender
JEL Classification: G12
Suggested Citation: Suggested Citation