THE EFFECTS OF BIG FIVE PERSONALITIES ON INVESTMENT INTENSITIES AND PERFORMANCES

• Main Author: Pranata Setiawan (NIM 19014048), Daniel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21568
• Institution: Institut Teknologi Bandung

Scientific research has conducted psychological traits study been proven by its relationship with activity in stock market. Therefore, large quantity of related study been conducted in convincing the current confidence. The purpose of existing study solely for creating an improvement in many behavioral failures emerged in capital market transaction. Behavioral bias takes a big role to bring up a wrong decision whenever investor attempts to make a decision in capital market. Moreover, <br /> <br /> it is unfortunate if Indonesian stock trader couldn’t give a maximum effort for any gain that they supposed to receive in capital market investment activity. Therefore, researcher in this study attempts to do a research in this particular area, about personality, as the bases of people action, in relate with investment. The objective discussed in this paper is to determine whether personality indicates particular intensity of trading, as well as the performance.The type of personality taken <br /> <br /> in this research is Big Five Traits, consisting Neuroticism, Extraversion, Openness to Experience, Agreeableness, and Conscientiousness; a personality developed by McCrae and Costa which believed can capture a wide figure of a psychological traits of people, specifically in this study is investor of stock exchange. This study applied a quantitative method research, with <br /> <br /> the data obtained from Indonesian investor via online questionnaire. The sample size taken is 187 Indonesian active investor with a vary age, educational background, and other demographic data; and the length of period investor been participating in this market also studied as a supporting evidence for data.As the result of the conducted research, it is figured that trading intensity indicate the relevancy with Big Five personality, but not the whole of them. Openness is the one which proven that <br /> <br /> associated with trading intensity. Openness is the guy who love a new challenge and has a desire to explore new things that they never seen before. It is reasonable if this kind of person love to expanding the amount of trading in order to explore the challenge in investment. In a further finding, derived from the five of traits being discovered, Openness is the only trait which has a <br /> <br /> positive impact on trading performance. Instead of make the trading more frequently, Indonesian investor which behaves with Openness characteristic face a good performance in capital market participation.