IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v109y2024ics221480432400003x.html

Investigating the effect of three different factors including experience, personality and color on the decision-making process in stock markets using EEG

Author

Listed:
  • AsleBagh, Pegah
  • Bonyadi Naeini, Ali
  • Moeeni, MohammadReza

Abstract

Stock markets and exchanges are crucial economic pillars in every country. Decision-making in the stock market poses significant challenges and fundamental problems for investors in this field. According to studies conducted in the field of psychology, it has been found that investors' personal experiences and personality characteristics are among the factors that influence their decision-making.

Suggested Citation

  • AsleBagh, Pegah & Bonyadi Naeini, Ali & Moeeni, MohammadReza, 2024. "Investigating the effect of three different factors including experience, personality and color on the decision-making process in stock markets using EEG," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    • Handle: RePEc:eee:soceco:v:109:y:2024:i:c:s221480432400003x
    DOI: 10.1016/j.socec.2024.102163
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S221480432400003X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2024.102163?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Bashar Yaser Almansour & Sabri Elkrghli & Ammar Yaser Almansour, 2023. "Behavioral finance factors and investment decisions: A mediating role of risk perception," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2239032-223, June.
    2. Khaira Rizfia Fachrudin & Khaira Amalia Fachrudin, 2016. "The Influence Of Education And Experience Toward Investment Decision With Moderated By Financial Literacy," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(2), pages 51-60, December.
    3. Kliger, Doron & Gilad, Dalia, 2012. "Red light, green light: Color priming in financial decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 738-745.
    4. Ronzani, P. & Savadori, L. & Folloni, G. & Mittone, L., 2018. "Selective insensitivity for losses but not gains in decision making under risk among the poor," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 96-106.
    5. Francesco Capalbo & Alex Frino & Ming Ying Lim & Vito Mollica & Riccardo Palumbo, 2018. "The Impact of CEO Narcissism on Earnings Management," Abacus, Accounting Foundation, University of Sydney, vol. 54(2), pages 210-226, June.
    6. Boschini, Anne & Dreber, Anna & von Essen, Emma & Muren, Astri & Ranehill, Eva, 2019. "Gender, risk preferences and willingness to compete in a random sample of the Swedish population✰," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).
    7. Denes Szucs & John P A Ioannidis, 2017. "Empirical assessment of published effect sizes and power in the recent cognitive neuroscience and psychology literature," PLOS Biology, Public Library of Science, vol. 15(3), pages 1-18, March.
    8. Monika Dhochak & Anil Kumar Sharma, 2016. "Using interpretive structural modeling in venture capitalists’ decision-making process," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(1), pages 53-65, March.
    9. Saima Rizvi & Amreen Fatima, 2015. "Behavioral Finance: A Study of Correlation Between Personality Traits with the Investment Patterns in the Stock Market," Springer Proceedings in Business and Economics, in: S. Chatterjee & N.P. Singh & D.P. Goyal & Narain Gupta (ed.), Managing in Recovering Markets, edition 127, chapter 0, pages 143-155, Springer.
    10. Andreas Oehler & Stefan Wendt & Florian Wedlich & Matthias Horn, 2018. "Investors' Personality Influences Investment Decisions: Experimental Evidence on Extraversion and Neuroticism," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 19(1), pages 30-48, January.
    11. Marjanovic, Zdravko & Fiksenbaum, Lisa & Greenglass, Esther, 2018. "Financial threat correlates with acute economic hardship and behavioral intentions that can improve one's personal finances and health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 151-157.
    12. Armando N. Meier, 2022. "Emotions and Risk Attitudes," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 527-558, July.
    13. Zain UI Abideen & Zeeshan Ahmed & Huan Qiu & Yiwei Zhao, 2023. "Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market," Risks, MDPI, vol. 11(6), pages 1-32, June.
    14. Amador-Hidalgo, Luis & Brañas-Garza, Pablo & Espín, Antonio M. & García-Muñoz, Teresa & Hernández-Román, Ana, 2021. "Cognitive abilities and risk-taking: Errors, not preferences," European Economic Review, Elsevier, vol. 134(C).
    15. Rahmani, Amir & Mashayekh, Javad & Aboojafari, Roohallah & Bonyadi Naeini, Ali, 2023. "Determinants of households' intention for investment in renewable energy projects," Renewable Energy, Elsevier, vol. 205(C), pages 823-837.
    16. Guillaume Baechler & Laurent Germain, 2018. "A literature review on neurofinance," Finance, Presses universitaires de Grenoble, vol. 39(2), pages 9-41.
    17. Schwaiger, Rene & Kirchler, Michael & Lindner, Florian & Weitzel, Utz, 2020. "Determinants of investor expectations and satisfaction. A study with financial professionals," Journal of Economic Dynamics and Control, Elsevier, vol. 110(C).
    18. João Paulo Vieito & Armando Freitas da Rocha & Fabio Theoto Rocha, 2015. "Brain Activity of the Investor's Stock Market Financial Decision," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 16(3), pages 220-230, July.
    19. Sproten, Alec N. & Diener, Carsten & Fiebach, Christian J. & Schwieren, Christiane, 2018. "Decision making and age: Factors influencing decision making under uncertainty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 76(C), pages 43-54.
    20. Maximilian Koestner & Benjamin Loos & Steffen Meyer & Andreas Hackethal, 2017. "Do individual investors learn from their mistakes?," Journal of Business Economics, Springer, vol. 87(5), pages 669-703, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reisdorfer-da-Silva, Rômulo César & Becker, Kalinca Léia & Vieira, Kelmara Mendes, 2025. "The impact of board games on the financial literacy of public-school students," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 114(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Singh Sanjeet & Madaan Geetika & Singh Amrinder & Swapna H.R. & Asthana Satish Kumar, 2025. "Behavioural Biases and Investment Decision Making: The Mediating Role of Risk Perception, according to Evidence from the Indian Stock Market," Folia Oeconomica Stetinensia, Sciendo, vol. 25(2), pages 236-261.
    2. Yogita Singh & Mohd. Adil & S. M. Imamul Haque, 2023. "Personality traits and behaviour biases: the moderating role of risk-tolerance," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3549-3573, August.
    3. Rathi K. N. & Geetha D., 2023. "Influence of Personality Traits and Behavioural Biases on Irrational Investment Decision Making of Public Officials," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 15(1), pages 49-63, June.
    4. Heena Thanki & Naliniprava Tripathy & Sweety Shah, 2025. "Investors’ Behavioral Intention in Mutual Fund Investments in India: Applicability of Theory of Planned Behavior," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 32(3), pages 975-996, September.
    5. Abrahams, Scott, 2026. "Gender differences in choosing fast and slow: Evidence from competitive powerlifting," Journal of Economic Behavior & Organization, Elsevier, vol. 243(C).
    6. Iris Gavish & Abraham Haim & Doron Kliger, 2021. "‘To LED or Not to LED?’: Using Color Priming for Influencing Consumers’ Preferences of Light Bulbs," Sustainability, MDPI, vol. 13(3), pages 1-12, January.
    7. Kirchler, Michael & Lindner, Florian & Weitzel, Utz, 2020. "Delegated investment decisions and rankings," Journal of Banking & Finance, Elsevier, vol. 120(C).
    8. Buser, Thomas & Ranehill, Eva & van Veldhuizen, Roel, 2021. "Gender differences in willingness to compete: The role of public observability," Journal of Economic Psychology, Elsevier, vol. 83(C).
    9. López-Guzmán, Silvia & Sautua, Santiago I., 2024. "Effects of a fearful emotional state on financial decisions in the presence of prior outcome information," Journal of Economic Psychology, Elsevier, vol. 101(C).
    10. Kessel, Dany & Mollerstrom, Johanna & van Veldhuizen, Roel, 2021. "Can simple advice eliminate the gender gap in willingness to compete?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138, pages 1-1.
    11. García-Meca, Emma & Ramón-Llorens, Maria-Camino & Martínez-Ferrero, Jennifer, 2021. "Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees," Journal of Business Research, Elsevier, vol. 129(C), pages 223-235.
    12. Kleber Neves & Pedro B Tan & Olavo B Amaral, 2022. "Are most published research findings false in a continuous universe?," PLOS ONE, Public Library of Science, vol. 17(12), pages 1-18, December.
    13. Jing, Shouwu & Hu, Chaohao & Zhou, Zejia & Guo, Haixia & Li, Li, 2025. "Have female executives made a difference?—The impact of female executives on cross-border mergers and acquisitions in listed companies," International Review of Economics & Finance, Elsevier, vol. 98(C).
    14. Madad Khan & Inam Ul Haq & Muhammad Zeeshan & Saima Anis & Muhammad Bilal, 2022. "Multicriteria decision-making method under the complex Pythagorean fuzzy environment," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(4), pages 415-434, December.
    15. Agnes Tomini, 2025. "Self-protection and self-insurance in an age of anxiety," AMSE Working Papers 2514, Aix-Marseille School of Economics, France.
    16. Schmidt, Dominik & Stöckl, Thomas & Palan, Stefan, 2024. "Voting for insider trading regulation. An experimental study of informed and uninformed traders’ preferences," Journal of Banking & Finance, Elsevier, vol. 169(C).
    17. Piasenti, Stefano & Valente, Marica & Van Veldhuizen, Roel & Pfeifer, Gregor, 2023. "Does Unfairness Hurt Women? The Effects of Losing Unfair Competitions," Working Papers 2023:7, Lund University, Department of Economics.
    18. Gilberto Marquez Illescas & Stephen J. Sauer & Allan A. Zebedee & Linying Zhou, 2025. "Financial performance and tone of financial disclosures: The moderating effect of CEO narcissism," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(1), pages 691-712, March.
    19. Bellofatto, Anthony & Broihanne, Marie-Hélène & D'Hondt, Catherine, 2019. "Appetite for information and trading behavior," LIDAM Discussion Papers LFIN 2019002, Université catholique de Louvain, Louvain Finance (LFIN).
    20. Huber, Christoph & König-Kersting, Christian & Marini, Matteo M., 2025. "Experimenting with financial professionals," Journal of Banking & Finance, Elsevier, vol. 170(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:109:y:2024:i:c:s221480432400003x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.