Title: Big-five personality traits, financial risk attitude and investment intentions: study on Generation Y

Authors: Tanuj Nandan; Kumar Saurabh

Addresses: School of Management Studies, Motilal Nehru National Institute of Technology Allahabad, Teliarganj, Allahabad 211004, Uttar Pradesh, India ' School of Management Studies, Motilal Nehru National Institute of Technology Allahabad, Teliarganj, Allahabad 211004, Uttar Pradesh, India

Abstract: Individuals take investment decisions based on risk, return and time horizon of the investment. Personality types of individuals affect their attitude towards financial risk and in turn their investment intentions. The present study examines the empirical relationship between personality traits and investment intentions, mediated by attitude towards financial risk. The study utilises a sample of 313 Generation Y students from a technical institution of Allahabad, India. Our results show that the neuroticism, extraversion and openness to experience dimensions have perfect mediated relationship with short term investment intentions, mediated by attitude towards financial risk. Agreeableness has been found to exert a partial mediated relationship with short term investment intentions, while the conscientiousness dimension of personality type has not been found to be a significant predictor of short term investment intentions. Similarly, agreeableness has not been found to predict the long term investment intentions of individuals.

Keywords: mediated regression; personality types; financial risk attitudes; investment intentions; personality traits; Generation Y; India; neuroticism; extraversion; openness; conscientiousness; short term investment; agreeableness; long term investment.

DOI: 10.1504/IJBFMI.2016.078154

International Journal of Business Forecasting and Marketing Intelligence, 2016 Vol.2 No.2, pp.128 - 150

Received: 18 Apr 2016
Accepted: 14 May 2016
Published online: 04 Aug 2016 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article