Research on the impact of personality traits on attitude towards risk in investment among individual investors in Vietnam
Downloads
The purpose of this study is to explore the impact of personality traits on attitude towards risk in investment among individual investors in Vietnam. This paper applies the Big Five Personality Traits model (Costa, P. T., & McCrae, R. R., 1992), which includes five dimensions: Neuroticism, Extraversion, Openness to Experience, Agreeableness, and Conscientiousness. The research findings indicate that “Extraversion” (EXT) and “Openness to Experience” (OPE) positively influence risk acceptance attitudes; the “Neuroticism” (NEU) trait exerts the strongest negative impact, suggesting that individuals with high anxiety levels tend to be risk-averse in their investments. Meanwhile, “Conscientiousness” (CNS) and “Agreeableness” (ARG) show a mild positive influence on risk tolerance. These findings align with a sample predominantly composed of young investors and the context of a diversifying investment landscape in Vietnam.
Downloads
1. Andreas Oehler, et al. (2018). Investors’ personality influences investment decisions: Experimental evidence on extraversion and neuroticism. Journal of Behavioral Finance, 19(1), 30-48. https://doi.org/10.1080/15427560.2017.1366496
2. Ashton, M. C., & Lee, K. (2007). Empirical, theoretical, and practical advantages of the HEXACO model of personality structure. Personality and Social Psychology Review, 11(2), 150-166. https://doi.org/10.1177/1088868306294907
3. Brown, S., & Taylor, K. (2014). Household finances and the ‘Big Five’ personality traits. Journal of Economic Psychology, 45, 197-212. https://doi.org/10.1016/j.joep.2014.10.006
4. Costa, P. T., & McCrae, R. R. (1992). Revised NEO Personality Inventory (NEO-PI-R) and NEO Five-Factor Inventory (NEO-FFI): Professional manual. Psychological Assessment Resources.
5. Crysel, L. C., Crosier, B. S., & Webster, G. D. (2013). The dark triad and risk behavior. Personality and Individual Differences, 54(1), 35-40. https://doi.org/10.1016/j.paid.2012.07.029
6. Dam, V. D. H., Phan, H. M. P., Le, T. N. Q., Truong, T. H. L., & Le, Q. A. (2023). Herding during COVID-19 pandemic: An empirical study in Vietnamese stock market. Journal of Eastern European and Central Asian Research, 10(7), 967-976. https://doi.org/10.15549/jeecar.v10i7.1322
7. Enescu, M., & Enescu, M. (2009). Psihonomy - psychology investors. Annals of the University of Petrosani, Economics, 9(1), 249-252.
8. Eugene, F. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383-417. https://doi.org/10.2307/2325486
9. Fang, J., Gao, X., & Navissi, F. (2021). Personality traits and financial decision-making. Journal of Behavioral Finance, 22(1), 33-48. https://doi.org/10.1080/15427560.2020.1720704
10. Fellner, G., & Maciejovsky, B. (2007). Attitude towards risk and market behavior: Evidence from experimental asset markets. Journal of Economic Psychology, 28(3), 338-350. https://doi.org/10.1016/j.joep.2006.06.006
11. Gao, X., Faff, R., & Navissi, F. (2021). Personality traits and financial decision-making. Journal of Behavioral Finance, 22(1), 33-48. https://doi.org/10.1080/15427560.2020.1720704
12. Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14(4), 625-630. https://doi.org/10.1023/A:1022994314982
13. Grable, J. E., & Joo, S.-H. (2004). Environmental and biopsychosocial factors associated with financial risk tolerance. Financial Counseling and Planning, 15(1), 73-82.
14. Grable, J. E., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8(3), 163-181. https://doi.org/10.1016/S1057-0810(00)00041-3
15. Graziano, W. G., & Eisenberg, N. (1997). Agreeableness: A dimension of personality. In R. Hogan, J. Johnson, & S. Briggs (Eds.), Handbook of personality psychology (pp. 795-824). Academic Press. https://doi.org/10.1016/B978-012134645-4/50031-6
16. Hue., T.H.T., (2019). The Influence of Psychological Factors on Investment Decisions in the Vietnamese Stock Market. Hong Duc University Journal of Science - Issue 43.2019
17. Hung, T. N., et al. (2020). The impact of Big Five personality traits on investment intentions: Study on generation Y. VJSOL, 15(3), 114-126.
18. Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291.
19. Kuhnen, C. M., & Chiao, J. Y. (2009). Genetic determinants of financial risk taking. PLoS ONE, 4(2), e4362. https://doi.org/10.1371/journal.pone.0004362
20. Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment management and personality type. Financial Services Review, 17(3), 219-236.
21. McCrae, R. R., & Costa, P. T. (1997). Personality trait structure as a human universal. American Psychologist, 52(5), 509-516. https://doi.org/10.1037/0003-066X.52.5.509
22. Muhammad, N. S., & Raja, A. A. (2019). Impact of personality traits on investment intention: The mediating role of risk behaviour and the moderating role of financial literacy. Journal of Finance & Economic Research, 4(1), 1-18. https://doi.org/10.20547/jfer1904101
23. Nicholson, N., Soane, E., Fenton-O’Creevy, M., & Willman, P. (2005). Personality and domain-specific risk taking. Journal of Risk Research, 8(2), 157-176. https://doi.org/10.1080/1366987032000123856
24. Paulhus, D. L., & Williams, K. M. (2002). The Dark Triad of personality: Narcissism, Machiavellianism, and psychopathy. Journal of Research in Personality, 36(6), 556-563. https://doi.org/10.1016/S0092-6566(02)00505-6
25. Sages, R. A., & Grable, J. E. (2010). Financial numeracy, net worth, and financial management skills: Differences by financial risk tolerance profile. Journal of Financial Counseling and Planning, 21(1), 52-67.
26. Tien, C. M. (2023). Theoretical Research on Finance for Investors in the Stock Market. Journal of Financial and Securities Research, 3(236).
27. Weller, J. A., & Tikir, A. (2011). Predicting domain-specific risk taking with the HEXACO personality structure. Journal of Behavioral Decision Making, 24(2), 180-201. https://doi.org/10.1002/bdm.677
28. Zuckerman, M., & Kuhlman, D. M. (2000). Personality and risk-taking: Common biosocial factors. Journal of Personality, 68(6), 999-1029. https://doi.org/10.1111/1467-6494.00124
Copyright (c) 2025 Thi Dung Mai, Hoang Nam Ngo, Hung Nam Vuong
This work is licensed under a Creative Commons Attribution 4.0 International License.
