The Effect of Big Five Personality Traits on Financial Risk Taking and Risk Aversion Behaviour: A Study on Generation Z

Year 2021, , 80 - 91, 20.02.2021

Ahmet Oğuz Akgüneş

https://doi.org/10.21076/vizyoner.776595

Cited By: 1

Abstract

The study aims to investigate the relationship between risk-taking, risk aversion and big five personality traits. The data used for the study is collected from 110 people born after 2000 (Z generation) by using easy sampling and survey method. According to the results of factor analysis, agreeableness is excluded from the study. We establish two different regression equation to analyze the relation between risk aversion, risk taking and big five personality traits. Also, the relationship between variables is investigated by an independent sample t-test. According to the regression results, extraversion individuals want to take more financial risk, but openness individuals want to take less risk. Individuals who are emotionally balanced and have more conscientiousness are less risk averse. Independent sample t test results support regression results. Therefore, it is concluded that individuals who are extraversion, emotionally balanced and capable of analysis take more risks and make riskier investment decisions.

Keywords

Financial Risk Taking, Risk Aversion, Big Five Personality, Financial Decision Making

Beş Temel Kişilik Özelliğinin Finansal Risk Alma ve Riskten Kaçınma Davranışları Üzerine Etkisi: Z Kuşağı Örneği

Abstract

Bu çalışma beş temel kişilik özelliğinin risk alma ve riskten kaçınma davranışları arasındaki ilişkiyi araştırmayı amaçlamaktadır. Çalışma için kullanılan veri 2000 yılı sonrası doğumlu (Z Kuşağı) 110 üniversite öğrencisinden kolayda örnekleme yolu ve anket yöntemi kullanılarak elde edilmiştir. Çalışmada faktör analizi sonucuna göre uyumluluk kişilik özelliği çalışmadan çıkartılmıştır. Risk alma ve riskten kaçınma değişkenlerinin bağımsız değişken olduğu iki farklı regresyon denklemi kurulmuş olup ayrıca değişkenler arası ilişki bağımsız örneklem t testi ile araştırılmıştır. Regresyon denklemi sonuçlarına göre dışa dönük bireyler daha fazla finansal risk almak istemekle beraber sorumlu bireyler daha az risk almak istemektedirler. Duygusal olarak dengeli ve açıklık kişiliklerine sahip olan bireyler ise daha az riskten kaçınmaktadırlar. Bağımsız örneklem t testi sonuçları ise regresyon sonuçlarını desteklemektedir. Dolayısıyla dışa dönük, duygusal olarak dengeli ve analiz yeteneğine sahip bireylerin daha fazla risk alacakları ve daha fazla riskli yatırım kararı verebilecekleri sonucuna ulaşılmıştır.

Keywords

Finansal Risk Alma, Riskten Kaçınma, Beş Temel Kişilik Özelliği, Finansal Karar Alma

References

• Allport, G. W. ve Odbert, H. S. (1936). Trait-names: A psycho-lexical study. Psychological Monographs, 47(1), i-171.
• Anbar, A. ve Eker, M. (2009). Bireysel yatırımcıların finansal risk algılamalarını etkileyen demografik ve sosyoekonomik faktörler. ZKÜ Sosyal Bilimler Dergisi, 5(9), 129-150.
• Bajtelsmit, V. L. ve Bernasek, A. (1996). Why do women invest differently than men?. Financial Counseling and Planning, 7, 1-10.
• Barber, B. M. ve Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Economics, 116, 261-292.
• Bartlett, M. S. (1937). The statistical conception of mental factors. British Journal of Psychology, 28, 97-104.
• Baz, J., Briys, E., Bronnenberg, B.J., Cohen, M., Kast, R., Viala, P., Wathieu, L., Weber, M. ve Wertenbroch, K. (1999). Risk perception in the short run and in the long run. Marketing Letters, 10(3), 267-283.
• Blanchette, I. ve Richards, A. (2010). The influence of affect on higher level cognition: A review of research on interpretation, judgement. Decision Making and Reasoning Cognition and Emotion, 24(4), 561-595.
• Burton, S., Lichtenstein, D. R., Netemeyer, R. G. ve Garretson, J. A. (1998). A scale for measuring attitude toward private label products and an examination of its psychological and behavioral correlates. Journal of the Academy of Marketing Science, 26(4), 293-306.
• Byrnes, J. P., Miller, D. C. ve Schafer, W. D. (1999). Gender differences in risk taking: A meta-analysis. Psychological Bulletin, 125, 367-383.
• Charness, G. ve Gneezy, U. (2010). Portfolio choice and risk attitudes: An experiment. Economic Inquiry, 48(1), 133-146.
• Diacon, S. (2004). Investment risk perceptions. Do consumers and advisers agree? The International Journal of Bank Marketing, 22, 180-198.
• Doğan, T. (2013). Beş faktör kişilik özellikleri ve öznel iyi oluş. Doğuş Üniversitesi Dergisi, 14(1), 56-64.
• Dolan, P., Elliott, A., Metcalfe, R. ve Vlaev, I. (2012). Influencing financial behavior: From changing minds to changing contexts. The Journal of Behavior Finance, 13, 126-142.
• Dole, C. ve Schroeder, R.G. (2001). The impact of various factors on the personality, job satisfaction and turnover intentions of professional accountants. Managerial Auditing Journal, 16, 234-245.
• Donthu, N. ve Gilliand, D. (1996). Observations: The infomercial shopper. Journal of Advertising Research, 36(2), 69-76.
• Durand, R. B., Newby, R. ve Sanghani, J. (2008). An intimate portrait of the individual investor. Journal of Behavioral Finance, 9, 193-208.
• Durand, R. B., Newby, R., Peggs, L. ve Siekierka, M. (2013). Personality. Journal of Behavioral Finance, 14, 116-133.
• Durand, R. B., Newby, R., Tant, K. ve Trepongkaruna, S. (2013). Overconfidence, overreaction and personality. Review of Behavioral Finance, 5, 104–133.
• Dwyer, P. D., Gilkeson, J. H. ve List, J. A. (2002). Gender differences in revealed risk taking: Evidence from mutual fund investors. Economics Letters, 76, 151-158.
• Field, S. (2000). Discovering statistics using SPSS for Windows. 4th Edition. London: Sage Publications.
• Goldberg L. R. (1992). The development of markers for the big-five factor structure. Psychol Assess, 4, 26-42.
• Grable, J. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14(4), 625-630.
• Grable, J. E. ve Joo, S. H. (2004). Environmental and biopsychosocial factors associated with financial risk tolerance. Financial Counseling and Planning, 15(10), 3-82.
• Grable, J. E. ve Lytton, R. H. (1998). Investor risk tolerance: testing the efficacy of demographics as differentiating and classifying factors. Financial Counseling and Planning, 9(1), 61-74.
• Jarvenpaa, S. L. ve Todd, P. A. (1996). Consumer reactions to electronic shopping on the world wide web. International Journal of Electronic Commerce, 1(2), 59-88.
• Jianakoplos, N. A. ve Bernasek, A. (1998). Are women more risk averse? Economic Inquiry, 36, 620-630.
• Kahneman, D. ve Mark, R. (1998). Aspects of investor psychology. Journal of Portfolio Management, 24, 52-65.
• Kahneman, D. ve Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 263-292.
• Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39, 31-36.
• Kline, P. (1994). An easy guide to factor analysis. New York: Routledge.
• Kline, R. B. (2011). Principles and practice of structural equation modelling. 3rd edition. New York: Guilford Press.
• Loewenstein, G., Weber, E. U., Hsee, C. K. ve Welch, N. (2001). Risk as feelings. Psychological Bulletin, 127(2), 267-286.
• Mayfield, C., Perdue, G. ve Wooten, K. (2008). Investment management and personality type. Financial Services Review, 17, 219-234.
• McCrae, R. ve Costa, P. (1985). Comparison of EPI and psychoticism scales with measures of the five factor model of personality. Personaliry and Individual Differences, 6, 587-597.
• McCrae, R. ve Costa, P. T. (1997). Personality trait structure as a human universal. American Psychologist, 52, 509-516.
• Miyazaki, A. ve D., Fernandez, A. (2001). Consumer perceptions of privacy and security risks for online shopping. The Journal of Consumer Affairs, 35(1), 27- 45.
• Nandan, T. ve Saurabh, K. (2016). Big-five personality traits, financial risk attitude and investment intentions: Study on generation Y. Int. J. Business Forecasting and Marketing Intelligence, 2(2), 128-150.
• Nicholson, N., Soane, E., Fenton‐O'Creevy, M. ve Willman, P. (2005). Personality and domain‐specific risk taking. Journal of Risk Research, 8(2), 157-176.
• Odean, T. (1998). Volume, volatility, price, and profit when all trades are above average. The Journal of Finance, 3(6), 1888-1889.
• Olsen, R. A. ve Cox, C. M. (2001). The influence of gender on the perception and response to investment risk: The case of professional investors. The Journal of Psychology and Financial Markets, 2, 29-36.
• Sitkin, S. B. ve Pablo, A. L. (1992). Reconceptualizing the determinants of risk behaviour. Academy of Management Review, 17, 9-38.
• Sjöberg, L. (1998). World views, political attitudes and risk perception. Risk: Health, Safety and Environment, 9, 137-152.
• Sjöberg, L. ve Engelberg, E. (2009). Attitudes to economic risk taking, sensation seeking and values of business students specializing in finance. Journal of Behavioral Finance, 10(1), 33-43.
• Smith, M. (1999). Personality issues and their impact on accounting and auditing. Managerial Auditing Journal, 14, 453-460.
• Tatar, A. (2017). Büyük beş-50 kişilik testinin Türkçe’ye çevirisi ve beş faktör kişilik envanteri kısa formu ile karşılaştırılması. Anadolu Psikiyatri Dergisi, 18(1), 51-61.
• Tekin, B. (2016). Beklenen fayda ve beklenti teorileri bağlamında geleneksel finans- davranışsal finans ayrımı. Journal of Accounting, Finance and Auditing Studies, 2(4), 75-107.
• Weber, E. U. ve Milliman, R., A. (1997). Perceived risk attitudes: relating risk perception to risky choice. Management Science, 43(2), 123-144.
• Weber, E. U., Blais, A. ve Betz, E. N. (2002). A domain-specific risk- attitude scale: measuring risk perceptions and risk behaviors. Journal of Behavioral Decision Making, 15(4), 263-290.
• Zaleskiewics, T. (2001). Beyond risk seeking and risk aversion: Personality and the dual nature of eonomic risk taking. European Journal of Personality, 15, 105-122.