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Personality Traits and Susceptibility to Behavioral Biases among a Sample of Polish Stock Market Investors

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  • Rzeszutek Marcin

    (Institute of Finance, Collegium of Management and Finance, Warsaw School of Economics, Poland)

Abstract

The aim of this paper is to investigate whether susceptibility to selected behavioral biases (overconfidence, mental accounting and sunk-cost fallacy) is correlated with the Eysenck’s [1978] personality traits (impulsivity, venturesomeness, and empathy). This study was conducted on a sample of 90 retail investors frequently investing on the Warsaw Stock Exchange. Participants filled out a survey made up of two parts: 1) three situational exercises, which assessed susceptibility to behavioral biases and 2) an Impulsiveness Questionnaire, which measures impulsivity, venturesomeness, and empathy. The results demonstrated the relationship between venturesomeness and susceptibility to all behavioral biases explored in this study. We find that higher level of venturesomeness was linked with a lower probability of all behavioral biases included in this study.

Suggested Citation

  • Rzeszutek Marcin, 2015. "Personality Traits and Susceptibility to Behavioral Biases among a Sample of Polish Stock Market Investors," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 47(1), pages 71-81, September.
    • Handle: RePEc:vrs:ijomae:v:47:y:2015:i:1:p:71-81:n:4
    DOI: 10.1515/ijme-2015-0029
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    References listed on IDEAS

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    Cited by:

    1. Neenu Chalissery & Mosab I. Tabash & T. Mohamed Nishad & Ibtehal M. Aburezeq & Linda Nalini Daniel, 2023. "Does the Investor’s Trading Experience Reduce Susceptibility to Heuristic-Driven Biases? The Moderating Role of Personality Traits," JRFM, MDPI, vol. 16(7), pages 1-21, July.
    2. Suchanek, Max, 2021. "The dark triad and investment behavior," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).

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