Clarifying the effect of personality traits on the behavioral biases of financial professionals in Iran

Subject Areas : Financial and Behavioral Researches in Accounting

leila raeisi ¹ , حمید رستمی جاز ² , morteza bavaghar ³

1 - Accounting doctoral student, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
2 - Department of Accounting and Financial Management, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
3 - Department of Accounting and Financial Management, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Received: 2024-04-27 Accepted : 2024-06-02 Published : 2024-06-26

Keywords: personality traits, behavioral biases, risk tolerance behavior,

Abstract :

Psychological and Behavioral Factors Drive Financial Decisions Behavioral finance explains how psychological factors influence investors' perceptions, behavior, and decision-making, and subsequent market performance. Investor decision-making includes psychological, biological and sociological factors. Investors' demographics may influence their decision-making abilities, risk perception and attitude, and their personal characteristics. A person's personality plays an important role in making decisions that have different consequences for decision makers, especially financial professionals in Iran. Therefore, the present research tries to contribute to the perspective theory by examining how personality factors affect behavioral biases. The present research method is based on the purpose of applied research and based on the method of data collection, it is considered a descriptive method of the survey branch. Based on this, a field study was conducted by designing and distributing a questionnaire among 132 financial professionals in Tehran city, who were selected by simple random method. After collecting the data, they were analyzed using the structural equation modeling technique with the help of Laserl software. The results of the analysis showed that personality traits and its components (neuroticism, extroversion, openness, conscientiousness and adaptability) had a positive and significant effect on behavioral biases

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