Do Personality Traits and Emotional Intelligence of Investors Determine Their Risk Tolerance?
Babli Dhiman and
Saloni Raheja
Management and Labour Studies, 2018, vol. 43, issue 1-2, 88-99
Abstract:
In today’s scenario, investment is very important in everyone’s life. Investors always prefer the investment avenues according to their suitability, risk and the return because there are different investment avenues available in the market. There are various factors that influence the risk tolerance behaviour of the investors, such as age, gender, marital status, experience, income, household expenditure, present and future savings, future expectations of returns and future planning of the investor. But the risk tolerance is also affected by the personality traits and emotional intelligence (EI) of the investors. Thus, the present study focuses on the relation between the personality traits, EI and risk tolerance of the investors. The data was collected from 500 investors who invest through LSC Securities Ltd (formerly LSE Securities Ltd) in Punjab by using structured questionnaire. Multiple regression test was applied through SPSS to test the significance of relationship among the variables. The study found the relation of risk tolerance with personality traits and EI to be statistically significant.
Keywords: Emotional intelligence; investment decisions; personality traits; multiple regression; relationship (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:sae:manlab:v:43:y:2018:i:1-2:p:88-99
DOI: 10.1177/0258042X17745184
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