THE INFLUENCE OF BIG FIVE PERSONALITY TRAITS ON INVESTMENT DECISIONS IN BATAM CITY: GENDER MODERATION STUDY

Yandi Suprapto; Mardiana Ng

doi:10.31539/6myjmn84

Authors

Yandi Suprapto Universitas Internasional Batam
Mardiana Ng Universitas Internasional Batam

DOI:

https://doi.org/10.31539/6myjmn84

Keywords:

Keputusan investasi, kepribadian *Big Five*, gender, dan investor.

Abstract

The study aims to examine the influence of the Big Five's personality traits on investment decisions in Batam City, with a special focus on gender moderation effects. The five major personality characteristics include neuroticism, extraversion, openness to experience, agreeableness, and conscientiousness. The method used in this research is the quantitative method. Snowball sampling was used in this study, which means that investors who own shares in Batam City are the criteria used to select the sample. The object of this research is a stock investor in Batam City. The total sample size was 384 replies. The sampling is by distributing online questionnaire surveys to stock investors in Batam City. Multi regression using software Partial Least Square Structural Equation Model (PLS-SEM) is a research methodology. The limitation of this article is limited generalization because it focuses on a limited sample, namely the population in Batam City. This limits the ability to apply the findings widely to other populations outside the region.

References

Antony, J., & Selvarathinam, E. (2022). The Mediating Effect of Financial Literacy on Personality Traits and Investment Decisions-A Study Among Stock Market Investors in Kerala. In Central European Management Journal (Vol. 30, Issue 3).

Awan, Dr. A. G., & Sahar, S. (2021). Impact of Personality Traits on Investment Decisions Types: Evidence from Pakistan Stock Exchange. https://orcid.org/0000-0001-5767-6229.

Balachandra, L., Briggs, T., Eddleston, K., & Brush, C. (2019). Don’t Pitch Like a Girl!: How Gender Stereotypes Influence Investor Decisions. Entrepreneurship: Theory and Practice, 43(1), 116–137. https://doi.org/10.1177/1042258717728028

Barza, A. V., & Galanakis, M. (2022). The Big Five Personality Theory and Organizational Commitment. Psychology, 13(03), 413–419. https://doi.org/10.4236/psych.2022.133027

Chaudary, S. (2019). Does Salience Matter in Investment Decision? Kybernetes, 48(8), 1894–1912. https://doi.org/10.1108/K-09-2018-0490

Chen, T.-H., Ho, R.-J., & Liu, Y.-W. (2019). Investor Personality Predicts Investment Performance? A Statistics and Machine Learning Model Investigation. Computers in Human Behavior, 101, 409–416. https://doi.org/10.1016/j.chb.2018.09.027

Dickason, Z., & Ferreira, S. (2018). Establishing a Link Between Risk Tolerance, Investor Personality and Behavioural Finance in South Africa. Cogent Economics & Finance, 6(1), 1519898. https://doi.org/10.1080/23322039.2018.1519898

Eliya, S., & Suprapto, Y. (2022). Pengaruh Keberagaman Gender terhadap Kinerja Keuangan pada Perusahaan Manufaktur Barang Konsumsi Publik di Indonesia. SEIKO : Journal of Management & Business, 5(2), 2022–2045. https://doi.org/10.37531/sejaman.v5i1.2024

Evelyn, & Marheni, D. K. (2023). Pengaruh Faktor Perilaku Terhadap Pengambilan Keputusan Investor dalam Investasi Saham di Batam. Jesya, 6(1), 346–357. https://doi.org/10.36778/jesya.v6i1.935

Falahati, L., & Paim, L. Hj. (2012). Gender Differences in Saving Behavior Determinants among University Students. J. Basic. Appl. Sci. Res, 2(6), 5848–5854. www.textroad.com

Fionita, I., Renata, N., Pratama, S. R., Rahmawati, D., Putri, P. A. S. P., & Daugther, W. W. (2022). The Influence of Personality Traits and Decision Making Style on Investment Decisions of Capital Market Investors in Bandar Lampung.

Gerhard, P., Gladstone, J. J., & Hoffmann, A. O. I. (2018). Psychological Characteristics and Household Savings Behavior: The Importance of Accounting for Latent Heterogeneity. Journal of Economic Behavior & Organization, 148, 66–82. https://doi.org/10.1016/j.jebo.2018.02.013

Hamza Nasrullah, & Arif Imtiaz. (2019). Impact of Financial Literacy on Investment Decisions: The Mediating Effect of Big-Five Personality Traits Model. 14(1 June 2019), 43–60.

Harini, B., & Subramanian, S. (2023). Influence of Big Five Personality Traits on the Investment Decisions of Investors-Empirical Approach (pp. 405–417). https://doi.org/10.2991/978-94-6463-162-3_36

Harris, C. R., Jenkins, M., & Glaser, D. (2006). Gender Differences in Risk Assessment: Why do Women Take Fewer Risks than Men? Judgment and Decision Making, 1(1), 48–63. https://doi.org/10.1017/s1930297500000346

Hashmi, M. A., Abdullah, M., Jalees, T., Amen, U., & Arsalan, M. (2023). Do Personality Traits and Cultural Norms Influence Investment Decisions? The Role of Financial Literacy and Investor Overconfidence. Journal of Economic Impact, 5(1), 106–113. https://doi.org/10.52223/jei5012313

Helena. (2020). Pengaruh Big Five Personality terhadap Investment Decision Pada Perusahaan Peer to Peer Lending. file:///C:/Users/USER/Downloads/jurnal%20mardi/5%20traits/Helena2020.pdf

Hesniati, & Vivyanti. (2021). Pengaruh Personality Traits Dan Bias Perilaku Keuangan Terhadap Keputusan Berinvestasi. Jurnal Ilmu Komputer Dan Bisnis, 12(2a), 136–150. https://doi.org/10.47927/jikb.v12i2a.207

Jiang, Z., Peng, C., & Yan, H. (2020). Personality Differences and Investment Decision-Making. https://ssrn.com/abstract=3580364

Kamath, A. N., Shenoy, S. S., Abhilash, & N., S. K. (2023). Impact of Personality Traits on Investment Decision-Making: Mediating Role of Investor Sentiment in India. Investment Management and Financial Innovations, 20(3), 200–211. https://doi.org/10.21511/imfi.20(3).2023.17

Khan, N., Usman, A., & Farooq Jan, M. (2021). The Impact Of Investor’s Personality Traits Over Their Investment Decisions With The Mediating Role Of Finanicial Self Efficacy And Emotional Biases And The Moderating Role Of Need For Cognition And The Individual Mood In Pakistan Stock Exchange. 7(8), 2021. https://doi.org/10.5281/zenodo.5392291

Lai, C. P. (2019). Personality Traits and Stock Investment of Individuals. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195474

Miller, L., & Ubeda, P. (2012). Are Women More Sensitive to The Decision-Making Context? Journal of Economic Behavior and Organization, 83(1), 98–104. https://doi.org/10.1016/j.jebo.2011.06.014

Mutlu, U., & Ozer, G. (2019). The Effects of Personality Traits on Financial Behaviour. Pressacademia, 8(3), 155–164. https://doi.org/10.17261/Pressacademia.2019.1122

Ngcamu, L. J., Quaye, E. S., Horvey, S. S., & Jaravaza, D. C. (2023). Personality Traits, Money Attitudes and Consumer Decision-Making Styles as Predictors of Investment Products Choice in South Africa. Journal of Consumer Behaviour. https://doi.org/10.1002/cb.2146

Nirmali, K. D. H., & Buvanendra, S. (2021). Impact of Personality Traits on Stock Investment Decision Making and The Mediating Effect of Financial Self Efficacy. International Journal of Accounting and Business Finance, 7(1), 1. https://doi.org/10.4038/ijabf.v7i1.83

Pertiwi, T. K., Wardani, N. I. K., & Septentia, I. (2020). Knowledge, Experience, Financial Satisfaction, and Investment Decisions: Gender as A Moderating Variable. Jurnal Manajemen Dan Kewirausahaan, 22(1), 57–64. https://doi.org/10.9744/jmk.22.1.57-64

Pillai, A. R., & Rajasekar, A. (2022). Overconfidence and Herd Behaviour Moderates the Relationship between Personality Traits and Perceived Investment Performances. Indian Journal of Economics and Business, 20. http://www.ashwinanokha.com/IJEB.php

Powell, M., & Ansic, D. (1997). Gender Differences in Risk Behaviour in Financial Decision-Making: An Experimental Analysis. In JOURNAL OF ELSEVIER Journal of Economic Psychology (Vol. 18).

Rahmah, D. N., & Ulpah, M. (2023). The Relationship Of Big 5 Personality Traits On Investment Decision. 8.

Ramadani, A. G., Tubastuvi, N., Fitriati, A., Widhiandono, H., Management, M., Ekonomi, F., Bisnis, D., & Purwokerto, U. M. (n.d.). Millennial’s Investment Decision In Capital Market Investment With Financial Behavior As An Intervening Variable. www.investor.id

Sadiq, M. N., & Khan, R. 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 & Economics Research, 4(1), 1–18. https://doi.org/10.20547/jfer1904101

Sahu, Dr. S. R., Pandey, S. R., Gupta, Dr. A., & Bhanu, B. K. (2023). Heuristics and Biases in Investment Decision-Making: A Comprehensive Review. UGC CARE Journal, 48, 99–106. https://www.researchgate.net/publication/374551801_HEURISTICS_AND_BIASES_IN_INVESTMENT_DECISION-MAKING_A_COMPREHENSIVE_REVIEW

Sattar, M. A., Toseef, M., & Sattar, M. F. (2020). Behavioral Finance Biases in Investment Decision Making. International Journal of Accounting, Finance and Risk Management, 5(2), 69. https://doi.org/10.11648/j.ijafrm.20200502.11

Soto, C. J. (2018). Big Five Personality Traits. https://www.researchgate.net/publication/324115204

Szakadátová, E. (2023). How Do Personality Traits of Young Adults Affect Their Attitudes to Risk and Investment Decisions? Ekonomické Rozhľady – Economic Review, 52(2), 104–123. https://doi.org/10.53465/er.2644-7185.2023.2.104-123

Tannady, H., Damanik, D., Sy, A., Wiarta, I., Nurdiani, T. W., Ambarwati, R., Renwarin, J. M. J., & Suyoto, Y. T. (2022). Peran Literasi Keuangan dan Karakteristik Kepribadian Terhadap Keputusan Investasi Gen-Z di Provinsi DKI Jakarta dengan Persespi Risiko Sebagai Variabel Intervening. Jurnal Kewarganegaraan, 6(3).

Vincent, & Candy. (2023). Analisa Pengaruh Sentimen Investor Terhadap Tingkat Pengembalian Saham Pada Pasar Amerika Serikat. Ekonomi Dan Bisnis, 9(2), 97–110. https://doi.org/10.35590/jeb.v9i2.4921

Yakin, Dr. Hj. I. H. (2023). Metodologi Penelitian (Kuantitatif & Kualitatif) CV. Aksara Global Akademia 2023. file:///C:/Users/USER/Downloads/EBOOKMETODOLOGIPENELITIAN.pdf

Yalcin, K. C., Tatoglu, E., & Zaim, S. (2016). Developing An Instrument for Measuring the Effects of Heuristics on Investment Decisions. Kybernetes, 45(7), 1052–1071. https://doi.org/10.1108/K-05-2015-0130