Exploring the effect of investors' personality on their investment performance with mediating role of heuristic biases

Subject Areas : Financial Knowledge of Securities Analysis

A. Ebrahimi Lifshagard ¹ , Kamran Pakizeh ² , Kamiyar Raisifar ³

1 - MSc. Student, Faculty of Finance, Kharazmi University, Tehran, Iran.
2 - Assistant prof., faculty of finance, Kharazmi University, Tehran, Iran.
3 - PhD, Faculty of Finana, Kharazmi University, Tehran, Iran.

Received: 2017-07-14 Accepted : 2017-12-01 Published : 2019-06-22

Keywords: Behavioral Finance, Heuristics, Big 5 model of personality, Jackson personality model, Investment performance,

Abstract :

In this research, personality traits, heuristic biases and their effect on the investment performance will be assessed . The research is such an applied survey research and has been carried out over 2016 fall and 2017 winter.In order to reach this goal, the matter was investigated between 154 individual investors in financial institution in Tehran capital market by using questionnaire tool, random sampling and PLS method .After data processing in the research analytical model framework, the result showed that there is a positive relationship between personality traits and investment. There is also a significant and positive relationship between heuristic biases variables and investment performance. There is positive relationship between personality traits and heuristic. about indirect effect of independent variables on dependent variables it can be concluded that personality traits by mediating rule of the heuristic biases affect positively investment performance with low coefficient path and significant.

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