Individual psychology and investment style

Lucy Ackert, George Athanassakos and Bryan K. Church

International Journal of Behavioural Accounting and Finance, 2015, vol. 5, issue 2, 175-201

Abstract: This paper sheds light on the individual characteristics associated with investment style. A vast literature documents the importance of individual personality in explaining variation in choice, yet many questions remain regarding the determinants of investment choices. We use an experimental method to isolate participants' preference for value vs. growth stocks. Recent research suggests that biology plays a significant role in determining investment style. We extend this research by examining whether measurable behavioural and personality factors predict investment style, including risk tolerance, time preference, overconfidence, personal evaluation of the investment opportunity, and character strengths. Importantly, we find that an individuals' personal affective assessment of an investment opportunity plays a significant role in the determination of investor style.

Keywords: value investing; investment styles; cognitive bias; individual psychology; behavioural finance; growth stocks; biology; personality factors; risk tolerance; time preference; overconfidence; personal evaluation; investment opportunities; character strengths; personal affective assessment. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=72408 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbeaf:v:5:y:2015:i:2:p:175-201

Access Statistics for this article

More articles in International Journal of Behavioural Accounting and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().