Impact of Investor’s Personality Traits on Overconfidence Bias
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: In many cases investors are not aware of their wrong behaviors. If investors are aware of their psychological biases by knowing their own personality traits, they can make their financial decisions in a more conscious way. Thus this way of thinking reduces their perception failures and increases the quality of their decisions. If an investor knows himself better, so he can gain more or he can maintain his wealth which will help the investors to achieve their long term financial goals and potentially improve the investing results also. In this study, the relation between personal traits and Overconfidence bias of investors were tested through a questionnaire. Sample of the study were selected among individual investor who are dealing in stock market. The hypotheses made within the scope of the study were tested by multiple regression analysis. As a result of the hypotheses testing, it was concluded that overconfidence bias is influenced by Extraversion, Openness, Agreeableness and conscientiousness except in case of Neuroticism. The Overconfidence bias of stock market investors is not influenced by Neuroticism.
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