The influence of extraversion and neuroticism on investors' risk attitude, risk perception and return expectations

Subject Areas : Corporate Finance

Rahman Khanigonbad ¹ , Mansour Garkaz ² , khadije Eslami ³ , Alireza Matoufi ⁴ , Ali Khozain ⁵

1 - Department of Accounting, Go.C., Islamic Azad University, Gorgan, Iran.
2 - Department of Accounting, Go.C., Islamic Azad University, Gorgan, Iran.
3 - Department of Accounting, BG.C., Islamic Azad University, Bandar Gaz, Iran.
4 - Department of Accounting, Go.C., Islamic Azad University, Gorgan, Iran.
5 - Department of Accounting, Ali.C., Islamic Azad University, Aliabad katoul, Iran.

Received: 2025-02-26 Accepted : 2025-10-18 Published : 2025-12-01

Keywords: Behavioral Finance, Extraversion, Investor Return Expectations, Neuroticism, Risk Attitude, Risk Perception, Tehran Stock Exchange,

Abstract :

Objective: The objective of the present study was to examine the effect of extraversion and neuroticism on risk attitude, risk perception, and return expectations of investors in the Tehran Stock Exchange. This research was conducted during the period from October to December 2023. The study is applied in nature and, in terms of its methodological orientation, is descriptive; from the perspective of research approach, it is deductive; and with respect to the research setting, it is field-based.

Methodology: In terms of research method, the present study is a survey research. Regarding the unit of analysis, the study focuses on individuals, and in terms of the time horizon, it is cross-sectional. The statistical population of the study consists of investors in the Tehran Stock Exchange. Sampling was carried out using a simple random sampling method, and the sample size was determined to be 384 participants based on Cochran’s formula.

Findings: The results indicate that extraversion and neuroticism have a statistically significant effect on investors’ risk perception, risk attitude, and return expectations in the Tehran Stock Exchange.

Originality / Scientific Contribution: Based on the findings of this study, both actual and potential investors in the Tehran Stock Exchange, as well as capital market participants, can rely on the results and benefit from their implications. Accordingly, investors’ behavioral models and rationality can be improved by incorporating investor emotions and risk-related considerations.

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