Mathematical model for analysis of the relationship between personality traits and psychological biases of individual investors
*Anita KumariCorresponding authoranita.tripathi15@gmail.comJaipur School of BusinessJECRC UniversityJaipur, Rajasthan, IndiaView full profile → , Ruchi Goyalruchi.goyal@jecrcu.edu.inJaipur School of BusinessJECRC UniversityJaipur, Rajasthan, IndiaView full profile → , Sunil Kumarskvermamc@gmail.comFaculty of Commerce & ManagementSGT UniversityGurugram, Haryana, IndiaView full profile →
* Corresponding author · click or hover a name for details
- Published Online:
- 11 Aug 2023
- Article type:
- Research Article
- Language:
- EN
- Article no.:
- JIOS-1408
- Pages:
- 493–503
Abstract
Keywords
Subject Classifications
References
[1] Ahmad, F., Personality traits as predictor of cognitive biases: moderating role of risk-attitude. Qualitative Research in Financial Markets, 12(4), 465-484 (2020).
[2] Baker, H. K., Kumar, S., & Goyal, N., Personality traits and investor sentiment. Review of Behavioral Finance, 13(4), 354-369 (2021).
[3] Bashir, T., Azam, N., Butt, A. A., Javed, A., & Tanvir, A., Are behavioral biases influenced by demographic characteristics & personality traits? Evidence from Pakistan. European Scientific Journal, 9(29) (2013).
[4] Cohen, J., Statistical power analysis. Current Directions in Psychological Science, 1(3), 98-101 (1992).
[5] Durand, R. B., Newby, R., & Sanghani, J., An intimate portrait of the individual investor. The Journal of Behavioral Finance, 9(4), 193-208 (2008).
[6] Durand, R., Newby, R., Tant, K., &Trepongkaruna, S., Overconfidence, overreaction and personality. Review of Behavioral Finance, 5(2), 104-133 (2013).
[7] Gambetti, E., &Giusberti, F., Personality, decision-making styles and investments. Journal of Behavioral and Experimental Economics, 80, 14-24 (2019).
[8] Gefen, D., Straub, D., & Boudreau, M. C., Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(1), 7 (2000).
[9] Hair Jr, J. F., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V., Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European business review, 26(2), 106-121 (2014).
[10] Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M., PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123 (2017).
[11] Tversky, A., & Kahneman, D., Judgment under Uncertainty: Heuristics and Biases: Biases in judgments reveal some heuristics of thinking under uncertainty. Science, 185(4157), 1124-1131 (1974).
[12] Kumar, V., &Dudani, R., The big five personality traits and psychological biases: an exploratory study. Current Psychology, 1-11 (2021).
[13] Kumari, A., Goyal, R., & Kumar, S., Review on Behavioral Factors and Individual Investors Psychology Towards Investment Decision Making. ECS Transactions, 107(1), 8009 (2022).
[14] Lai, C. P., Personality traits and stock investment of individuals. Sustainability, 11(19), 5474 (2019).
[15] Lin, H. W., Elucidating the influence of demographics and psychological traits on investment biases. International Journal of Economics and Management Engineering, 5(5), 424-429 (2011).
[16] Mayfield, C., Perdue, G., & Wooten, K., Investment management and personality type. Financial services review, 17(3), 219-236 (2008).
[17] Nunnally, J. C., An overview of psychological measurement. Clinical diagnosis of mental disorders: A handbook, 97-146 (1978).
[18] Picone, P. M., De Massis, A., Tang, Y., & Piccolo, R. F., The psychological foundations of management in family firms: Values, biases, and heuristics. Family Business Review, 34(1), 12-32 (2021).
[19] Shefrin, H., & Statman, M., The disposition to sell winners too early and ride losers too long: Theory and evidence. The Journal of Finance, 40(3), 777-790 (1985).
[20] Shiller, R. J., Human behavior and the efficiency of the financial system. Handbook of macroeconomics, 1, 1305-1340 (1999).
[21] Shiller, R. J., From efficient markets theory to behavioral finance. Journal of Economic Perspectives, 17(1), 83-104 (2003).
[22] Statman, M., Behavioral finance versus standard finance. In AIMR conference Proceedings, Vol. 7, pp. 14-22 (1995, December).
[23] Thaler, R., Mental accounting and consumer choice. Marketing science, 4(3), 199-214 (1985).
[24] Thambireddy, H., Motiramani, J., Dharahasa, S., Anand, N., &Narahari, S., How psychological biases influence investors decisions–Evidence from Indian stock market. The Kiams-Phronimos, 1(2), 1-14 (2021).
[25] Wasan, P., Conceptual framework for online stock trading phenomenon in India. Journal of Statistics and Management Systems, 15(1), 93-106 (2012).
[26] Zhou, Y., The effects of confirmatory bias in two-sender models. Journal of Information and Optimization Sciences, 42(2), 467-491 (2021).
