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Impact of Personality and Emotional Intelligence on Investor Behaviour


Affiliations
1 DJ Academy for Managerial Excellence, Othakkalmandapam Post – 641032, Coimbatore, Tamil Nadu, India
2 Department of Finance and Banking, College of Business Administration, Dar Al Uloom University, Riyadh 13314, Saudi Arabia, Saudi Arabia
 

The main objective of this study is to assess the effect of personality and emotional intelligence on the investor behaviour. The study depends on primary data and a well-structured questionnaire is used for this purpose. Stratified sampling technique has been adopted to determine the sample for the study. 120 investors investing in either NSE or BSE is identified and the data is collected from them. The questionnaire was made up of three parts: 1. personality questionnaire which measures (openness, conscientiousness, extraversion, agreeableness and neuroticism), 2. emotional intelligence questionnaire that measures (self-awareness, self-regulation, motivation, empathy and social skills), and 3. Investor behaviour questionnaire which measures the behavioural biases (Herding, Loss aversion, Overconfidence, Anchoring, Assymmetric Information, Cognitive dissonance, Mental Accounting, Status Quo bias, Sensation seeking, Representativeness, Risk aversion and locus of control). The five main personality traits and Goleman (1996) five domains of emotional intelligence are correlated with the selected behavioural biases. Inorder to analyse the hypothesis logistic regression analyses were conducted. The study has revealed that psychological biases are correlated to personality traits and emotional competencies.


Keywords

Emotional Intelligence, Investor Behaviour, Logistic Regression, Personality.
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  • Impact of Personality and Emotional Intelligence on Investor Behaviour

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Authors

S. Johnsi
DJ Academy for Managerial Excellence, Othakkalmandapam Post – 641032, Coimbatore, Tamil Nadu, India
K. A. Sunitha
Department of Finance and Banking, College of Business Administration, Dar Al Uloom University, Riyadh 13314, Saudi Arabia, Saudi Arabia

Abstract


The main objective of this study is to assess the effect of personality and emotional intelligence on the investor behaviour. The study depends on primary data and a well-structured questionnaire is used for this purpose. Stratified sampling technique has been adopted to determine the sample for the study. 120 investors investing in either NSE or BSE is identified and the data is collected from them. The questionnaire was made up of three parts: 1. personality questionnaire which measures (openness, conscientiousness, extraversion, agreeableness and neuroticism), 2. emotional intelligence questionnaire that measures (self-awareness, self-regulation, motivation, empathy and social skills), and 3. Investor behaviour questionnaire which measures the behavioural biases (Herding, Loss aversion, Overconfidence, Anchoring, Assymmetric Information, Cognitive dissonance, Mental Accounting, Status Quo bias, Sensation seeking, Representativeness, Risk aversion and locus of control). The five main personality traits and Goleman (1996) five domains of emotional intelligence are correlated with the selected behavioural biases. Inorder to analyse the hypothesis logistic regression analyses were conducted. The study has revealed that psychological biases are correlated to personality traits and emotional competencies.


Keywords


Emotional Intelligence, Investor Behaviour, Logistic Regression, Personality.

References





DOI: https://doi.org/10.18311/sdmimd%2F2019%2F23182