423
Views
8
CrossRef citations to date
0
Altmetric
Challenges and Opportunities Facing Emerging Economies

Influence of Investor and Advisor Big Five Personality Congruence on Futures Trading Behavior

, , , ORCID Icon &

References

  • Abreu, M., and V. Mendes. 2012. Information, overconfidence, and trading: Do the sources of information matter? Journal of Economic Psychology 33 (4):868–81. doi:10.1016/j.joep.2012.04.003.
  • Barber, B., and T. Odeab. 1999. The courage of misguided convictions. Financial Analysts Journal 55 (6):41–55. doi:10.2469/faj.v55.n6.2313.
  • Barber, B. M., and T. Odean. 2001. Boys will be boys: Gender, overconfidence, and common stock investment. Quarterly Journal of Economics 116 (1):261–92. doi:10.1162/003355301556400.
  • Barrick, M. R., and M. K. Mount. 1991. The big five personality dimensions and job performance: A meta‐analysis. Personnel Psychology 44 (1):1–26. doi:10.1111/peps.1991.44.issue-1.
  • Barrick, M. R., G. L. Stewart, M. J. Neubert, and M. K. Mount. 1998. Relating member ability and personality to work-team processes and team effectiveness. Journal of Applied Psychology 83 (3):377–91. doi:10.1037/0021-9010.83.3.377.
  • Barrick, M. R., G. L. Stewart, and M. Piotrowski. 2002. Personality and job performance: Test of the mediating effects of motivation among sales representatives. Journal of Applied Psychology 87 (1):43–51. doi:10.1037/0021-9010.87.1.43.
  • Bergeron, J., and M.-A. Vachon. 2008. The effects of humour usage by financial advisors in sales encounters. International Journal of Bank Marketing 26 (6):376–98. doi:10.1108/02652320810902424.
  • Bernerth, J. B., A. A. Armenakis, H. S. Feild, W. F. Giles, and H. J. Walker. 2008. The influence of personality differences between subordinates and supervisors on perceptions of LMX: An empirical investigation. Group & Organization Management 33 (2):216–40. doi:10.1177/1059601106293858.
  • Bozionelos, N. 2004. Mentoring provided: Relation to mentor’s career success, personality, and mentoring received. Journal of Vocational Behavior 64 (1):24–46. doi:10.1016/S0001-8791(03)00033-2.
  • Brown, S., and K. Taylor. 2014. Household finances and the ‘Big Five’ personality traits. Journal of Economic Psychology 45:197–212. doi:10.1016/j.joep.2014.10.006.
  • Byrne, D., and G. L. Clore. 1970. A reinforcement model of evaluative responses. Personality: An International Journal 1 (2):103–28.
  • Byrne, D. E. 1971. The Attraction Paradigm. New York: Academic Press.
  • Campbell, J. Y. 2006. Household finance. The Journal of Finance 61 (4):1553–604. doi:10.1111/j.1540-6261.2006.00883.x.
  • Clark-Murphy, M., and G. N. Soutar. 2008. Do retail stockbrokers understand clients’ investment preferences? Journal of Financial Services Marketing 13 (2):135–49. doi:10.1057/fsm.2008.11.
  • Conlin, A., P. Kyröläinen, M. Kaakinen, M.-R. Järvelin, J. Perttunen, and R. Svento. 2015. Personality traits and stock market participation. Journal of Empirical Finance 33:34–50. doi:10.1016/j.jempfin.2015.06.001.
  • Costa, P., and R. McCrae. 1989. The NEO-PI/NEO-FFI Manual Supplement. Odessa, FL: Psychological Assessment Resources.
  • Costa, P. T., and R. R. McCrae. 1992. Normal personality assessment in clinical practice: The NEO Personality Inventory. Psychological Assessment, 4 (1), 5–13.
  • Dorn, D., and G. Huberman. 2005. Talk and action: What individual investors say and what they do. Review of Finance 9 (4):437–81. doi:10.1007/s10679-005-4997-z.
  • Duffy, B., K. Smith, G. Terhanian, and J. Bremer. 2005. Comparing data from online and face-to-face surveys. International Journal of Market Research 47 (6):615–39. doi:10.1177/147078530504700602.
  • Durand, R. B., R. Newby, L. Peggs, and M. Seikierka. 2013. Personality. Journal of Behavioral Finance 14 (2):116–33. doi:10.1080/15427560.2013.791294.
  • Durand, R. B., R. Newby, and J. Sanghani. 2008. An intimate portrait of the individual investor. Journal of Behavioral Finance 9 (4):193–208. doi:10.1080/15427560802341020.
  • East, R. 2006. Happy and gullible, sad and wise?: Mood effects on factual and interpersonal skepticism. Sydney: University of New South Wales.
  • Edwards, J. R. 1994. Regression analysis as an alternative to difference scores. Journal of Management 20 (3):683–89. doi:10.1177/014920639402000311.
  • Eisen, M. L., E. Winograd, and J. Qin. 2002. Individual differences in adults’ suggestibility and memory performance. In Memory and suggestibility in the forensic interview, ed. M. L. Eisen, J. A. Quas, and G. S. Goodman, 205–34. Mahwah, NJ: Lawrence Erlbaum Associates, Inc.
  • Fischer, R., and R. Gerhardt. 2007. The missing link between investors and portfolios: Introducing financial advice. http://ssrn.com/abstract
  • Furnham, A., and C. Fudge. 2008. The five factor model of personality and sales performance. Journal of Individual Differences 29 (1):11–16. doi:10.1027/1614-0001.29.1.11.
  • Furnham, A., and T. Miller. 1997. Personality, absenteeism, and productivity. Personality and Individual Differences 23 (4):705–07. doi:10.1016/S0191-8869(97)00092-5.
  • Goetzmann, W. N., and A. Kumar. 2008. Equity portfolio diversification. Review of Finance 12 (3):433–63. doi:10.1093/rof/rfn005.
  • Haliassos, M., and C. C. Bertaut. 1995. Why do so few hold stocks? The Economic Journal 105 (432):1110–29. doi:10.2307/2235407.
  • Heinström, J. 2003. Five personality dimensions and their influence on information behaviour. Information Research 9 (1):1–9.
  • Jianakoplos, N. A., and A. Bernasek. 1998. Are women more risk averse? Economic Inquiry 36 (4):620–30. doi:10.1111/ecin.1998.36.issue-4.
  • Johns, G. 1981. Difference score measures of organizational behavior variables: A critique. Organizational Behavior and Human Performance 27 (3):443–63. doi:10.1016/0030-5073(81)90033-7.
  • Joiner, T. A., and L. Leveson. 2006. Financial planner credibility: The importance of being understood. International Journal of Financial Services Management 1 (4):438–49. doi:10.1504/IJFSM.2006.010122.
  • Judge, T. A., C. J. Thoresen, V. Pucik, and T. M. Welbourne. 1999. Managerial coping with organizational change: A dispositional perspective. Journal of Applied Psychology 84 (1):107–22. doi:10.1037/0021-9010.84.1.107.
  • Karz, G., and W. H. Wagner. 2006. Should I fire my trader or pay him a million? The Journal of Trading 1 (4):85–89. doi:10.3905/jot.2006.654304.
  • Kichuk, S. L., and W. H. Wiesner. 1997. The big five personality factors and team performance: Implications for selecting successful product design teams. Journal of Engineering and Technology Management 14 (3–4):195–221. doi:10.1016/S0923-4748(97)00010-6.
  • Knights, D., F. Noble, T. Vurdubakis, and H. Willmott. 2001. Chasing shadows: Control, virtuality and the production of trust. Organization Studies 22 (2):311–36. doi:10.1177/0170840601222006.
  • LePine, J. A., J. A. Colquitt, and A. Erez. 2000. Adaptability to changing task contexts: Effects of general cognitive ability, conscientiousness, and openness to experience. Personnel Psychology 53 (3):563–93. doi:10.1111/peps.2000.53.issue-3.
  • Lewellen, W. G., R. C. Lease, and G. G. Schlarbaum. 1977. Patterns of investment strategy and behavior among individual investors. The Journal of Business 50 (3):296–333. doi:10.1086/jb.1977.50.issue-3.
  • Lincoln, J. R., and J. Miller. 1979. Work and friendship ties in organizations: A comparative analysis of relation networks. Administrative Science Quarterly 24 (2):181–99. doi:10.2307/2392493.
  • Lusardi, A., and O. S. Mitchell (2011). Financial literacy and planning: Implications for retirement wellbeing. Available at: https://www.nber.org/papers/w17078
  • Meglino, B. M., E. C. Ravlin, and C. L. Adkins. 1989. A work values approach to corporate culture: A field test of the value congruence process and its relationship to individual outcomes. Journal of Applied Psychology 74 (3):424–32. doi:10.1037/0021-9010.74.3.424.
  • Mills, P. K., and D. S. Moshavi. 1999. Professional concern: Managing knowledge-based service relationships. International Journal of Service Industry Management 10 (1):48–67. doi:10.1108/09564239910255370.
  • Muchinsky, P. M., and C. J. Monahan. 1987. What is person-environment congruence? Supplementary versus complementary models of fit. Journal of Vocational Behavior 31 (3):268–77. doi:10.1016/0001-8791(87)90043-1.
  • Neuman, G. A., S. H. Wagner, and N. D. Christiansen. 1999. The relationship between work-team personality composition and the job performance of teams. Group & Organization Management 24 (1):28–45. doi:10.1177/1059601199241003.
  • Peress, J. 2004. Wealth, information acquisition, and portfolio choice. Review of Financial Studies 17 (3):879–914. doi:10.1093/rfs/hhg056.
  • Polkovnichenko, V. 2005. Household portfolio diversification: A case for rank-dependent preferences. Review of Financial Studies 18 (4):1467–502. doi:10.1093/rfs/hhi033.
  • Sims, D. B. 2002. The effect of personality type on the use of relevance criteria for purposes of selecting information sources. Doctoral dissertation: University of North Texas. doi:10.1044/1059-0889(2002/er01).
  • Söderberg, I.-L. 2013. Relationships between advisor characteristics and consumer perceptions. International Journal of Bank Marketing 31 (3):147–66. doi:10.1108/02652321311315276.
  • Sunden, A. E., and B. J. Surette. 1998. Gender differences in the allocation of assets in retirement savings plans. The American Economic Review 88 (2):207–11.
  • Swan, J. E., M. R. Bowers, and L. D. Richardson. 1999. Customer trust in the salesperson: An integrative review and meta-analysis of the empirical literature. Journal of Business Research 44 (2):93–107. doi:10.1016/S0148-2963(97)00244-0.
  • Swinyard, W. R. 1995. The impact of shopper mood and retail salesperson credibility on shopper attitudes and behaviour. International Review of Retail, Distribution and Consumer Research 5 (4):488–503.
  • Tauni, M. Z., H. X. Fang, and A. Iqbal. 2017. The role of financial advice and word-of-mouth communication on the association between investor personality and stock trading behavior: Evidence from Chinese stock market. Personality and Individual Differences 108:55–65. doi:10.1016/j.paid.2016.11.048.
  • Tauni, M. Z., H. X. Fang, Z.-U.-R. Rao, and S. Yousaf. 2015. The influence of investor personality traits on information acquisition and trading behavior: Evidence from chinese futures exchange. Personality and Individual Differences 87:248–55. doi:10.1016/j.paid.2015.08.026.
  • Tauni, M. Z., M. A. Majeed, S. S. Mirza, S. Yousaf, and K. Jebran. 2018. Moderating influence of advisor personality on the association between financial advice and investor stock trading behavior. International Journal of Bank Marketing 36 (5):140–68. doi:10.1108/IJBM-10-2016-0149.
  • Tauni, M. Z., Z.-U.-R. Rao, H.-X. Fang, and M. Gao. 2017a. Does investor personality moderate the relationship between information sources and trading behavior? Evidence from Chinese stock market. Managerial Finance 43 (5):545–66. doi:10.1108/MF-08-2015-0231.
  • Tauni, M. Z., Z.-U.-R. Rao, H.-X. Fang, S. S. Mirza, Z. A. Memon, and K. Jebran. 2017b. Do investor’s Big Five personality traits influence the association between information acquisition and stock trading behavior? China Finance Review International 7 (4):450–77. doi:10.1108/CFRI-06-2016-0059.
  • Thoresen, C. J., J. C. Bradley, P. D. Bliese, and J. D. Thoresen. 2004. The big five personality traits and individual job performance growth trajectories in maintenance and transitional job stages. Journal of Applied Psychology 89 (5):835–53. doi:10.1037/0021-9010.89.5.835.
  • Tisak, J., and C. S. Smith. 1994. Defending and extending difference score methods. Journal of Management 20 (3):675–82. doi:10.1177/014920639402000310.
  • van Witteloostuijn, A., and K. Muehlfeld. 2008. Trader personality and trading performance: A framework and financial market experiment. Discussion Paper Series/Tjalling C. Koopmans Research Institute, 8, 28.
  • Vissing-Jørgensen, A., and O. P. Attanasio. 2003. Stock-market participation, intertemporal substitution, and risk-aversion. American Economic Review 93 (2):383–91. doi:10.1257/000282803321947399.
  • Wagner, W. H., and M. Banks. 1992. Increasing portfolio effectiveness via transaction cost management. The Journal of Portfolio Management 19 (1):6–11. doi:10.3905/jpm.1992.409428.
  • Witt, L. A., and G. R. Ferris. 2003. Social skill as moderator of the conscientiousness-performance relationship: Convergent results across four studies. Journal of Applied Psychology 88 (5):809–20. doi:10.1037/0021-9010.88.5.809.
  • Yang, S., Y. Hsu, and C. Tu. 2012. How do traders influence investor confidence and trading volume? A dyad study in the futures market. Emerging Markets Finance and Trade 48 (sup3):23–34. doi:10.2753/REE1540-496X4805S302.
  • Yao, R., and Y. Xu. 2015. Chinese urban households’ security market participation: Does investment knowledge and having a long-term plan help? Journal of Family and Economic Issues 36 (3):328–39. doi:10.1007/s10834-015-9455-2.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.