Does Financial Advice and Word-of-mouth Communication Influence the association between Investor Personality and Stock Trading Behavior?
We investigate how the strength of association between investor personality traits and stock trading behavior is sensitive to the key sources of information used by investors as the basis for their financial choices.This research confirms the previous findings that investor personality traits are significant predictor of stock trading behavior.Likewise as shown in the previous literature,we found that the key sources of information have significant impact on the frequency of stock trading.Moreover,we add to the existing literature by providing empirical evidence that the key sources of information moderate the relationship of the Big five personality traits and stock trading behavior.Investors with openness and neuroticism traits trade stocks more frequently when they acquire information from financial advice whereas extravert and conscientious investors trade stocks less intensively when they use financial advice.Investors with extraversion and agreeableness traits trade stocks more intensively when they acquire information via word-of-mouth communication.Open minded,conscientious and neurotic investors adjust their portfolio less frequently as a result of social interaction.Theoretical explanations,implications and recommendations for future research are discussed.This research adds to the existing behavioral finance literature by examining how stock trading behavior of unique investor personality traits is influenced by the usage of the key information sources by individual investors.No previous study has been conducted so far exploring variations in the impact of the Big five investor personality traits on stock trading behavior by the key sources of information and this paper strives to fill this gap in Chinese stock market.
Behavioral Finance Financial Advice Word-of-mouth Communication Trading the Big Five personality Chinese Stock Market
国内会议
上海
英文
757-799
2016-07-16（万方平台首次上网日期，不代表论文的发表时间）