Perceived Investment Performance of Individual Investors is Related to the Big-Five and the General Factor of Personality (GPF)

Abstract

The present study tries to examine whether (i) Big-Five personality traits and (ii) general personality factor (Big-One), that is, the higher order factor for Big-Five are related to the factors measuring perceived investment performance. Cross-sectional data were collected from individual investors ( N = 396), through stratified and quota sampling approach. Data were analysed using correlation, regression, hierarchical regression and structural equation modelling (SEM) to evaluate the strength of relationship between the constructs. The results of the study indicated that Big-Five dimensions of personality, Extraversion, Agreeableness and Conscientiousness, are associated with perceived investment performance. Moreover, the correlation and regression analysis depicted that Big-One is also a major antecedent for perceived satisfaction and tends to contribute largely (3.8 per cent) to the variance in perceived investment performance.