Investigating the Role of Investors' Personality, Financial Literacy, and Demographic Characteristics on Risk-Taking in the Capital Market
Subject Areas : Financial and Behavioral Researches in Accounting
Hamid Abbasi
1
,
امیر محمدزاده
2
*
,
mohsen torabian
3
1 -
2 - دانشیار و عضو هئیت علمی دانشگاه آزاد
3 - In Assistant Professor of Math/Faculty of Basic Sciences, University of Takestan
Keywords: Risk Taking, Personality Traits, Financial Literacy, Demographic Factors, Behavioral Finance,
Abstract :
In the present study, the effect of personality on the trading behavior of real investors in the Tehran Stock Exchange was investigated using the five-factor personality model. Also, financial literacy and demographic factors such as age, gender, education, income, and experience in the stock exchange were considered as influential variables. This study is considered a descriptive and survey study of an applied type, and its statistical population includes 280 active investors in the Tehran Stock Exchange market who completed a researcher-made questionnaire online. The analytical tools used include SEM structural equations and Smart PLS4 software, which were used to test the research hypotheses after confirming validity and reliability. The results of this study indicate that financial literacy has a positive and significant effect on investors' risk-taking and show that financial knowledge can lead to better investment decisions. On the other hand, in the five-factor personality model, the two dimensions of openness to experience and extraversion had a significant effect on risk-taking, while other dimensions of this model, including adaptability, conscientiousness, and neuroticism, did not show a significant effect. In addition, demographic factors such as gender, education, and experience in the stock market also had a significant effect on investors' risk-taking, while other factors such as age, income, and occupation did not have a significant effect. Overall, the findings show that personality traits, financial literacy, and demographic factors significantly predict about 69.8 percent of risk-taking behavior. these factors can help improve investment returns.
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