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Influence of Investor and Advisor Big Five Personality Congruence on Futures Trading Behavior

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  • Muhammad Zubair Tauni
  • Zulfiqar Ali Memon
  • Hong-Xing Fang
  • Khalil Jebran
  • Tanveer Ahsan

Abstract

This study attempts to assess the influence of investor-advisor personality congruence on the trading behavior of futures investor. This research tested the hypotheses based on the unique data set collected from 408 investor-advisor dyads in the Chinese futures market. Our main data source is the actual trading data of futures investors that we obtained directly from futures brokerage firms in China. We performed Ordered Probit estimation to investigate the influence of investor-advisor personality congruence on trading frequency. Our results provide empirical evidence that investors tend to trade more futures when investor and advisor have congruence on openness, conscientiousness, and agreeableness. In contrast, investor-advisor congruence on neuroticism dampens investor's futures trading. This research postulates that individual investors trade differently if they have personality congruence (incongruence) with their advisors. Therefore, it is recommended that policymakers should consider investor-advisor personality congruence to enhance their business performance in the retail investor services industry.

Suggested Citation

  • Muhammad Zubair Tauni & Zulfiqar Ali Memon & Hong-Xing Fang & Khalil Jebran & Tanveer Ahsan, 2019. "Influence of Investor and Advisor Big Five Personality Congruence on Futures Trading Behavior," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3615-3630, December.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3615-3630
    DOI: 10.1080/1540496X.2019.1672529
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    Cited by:

    1. Tauni, Muhammad Zubair & Yousaf, Salman & Ahsan, Tanveer, 2020. "Investor-advisor Big Five personality similarity and stock trading performance," Journal of Business Research, Elsevier, vol. 109(C), pages 49-63.
    2. Yongping Bao & Ludwig Danwitz & Fabian Dvorak & Sebastian Fehrler & Lars Hornuf & Hsuan Yu Lin & Bettina von Helversen, 2022. "Similarity and Consistency in Algorithm-Guided Exploration," CESifo Working Paper Series 10188, CESifo.
    3. Artem Stopochkin & Inessa Sytnik & Janusz Wielki & Nataliia Zemlianska, 2021. "Methodology for Building Trader's Investment Strategy Based on Assessment of the Market Value of the Company," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 913-935.
    4. Ali, Fayaz & Tauni, Muhammad Zubair & Ali, Ayaz, 2022. "The Big Five dyad congruence and compulsive buying: A case of service encounters," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

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