The Relationship between Big Five Personality factors, Self Perceived Investment Knowledge and Investor Attitudinal Characteristics of Equity Investors

Traditional theories were based on the notion that, investors act rational and consider all available information in the decision making process. In reality, investors are not always rational in their decision making role. Individuals tend to be irrational in financial decisions due to psychological factors which differentiate each individual. Individual differences are factors that make individuals unique from each other which include personalities, perceptions, skills and abilities, attitudes and values. In the present study the relationship between Big Five Personality factors namely neuroticism, extraversion, openness to experience, agreeableness and conscientiousness and self perceived investment knowledge and identified investor attitudinal characteristics are analysed in depth. The findings of Multiple Regression Analysis exhibits strong relationship between i) Big Five Factors and Self Perceived Investment Knowledge ii) Big Five Personality Factors and Investor Attitudinal Characteristics.