Predicting stock market performance: The influence of gender and personality on financial decision making

Thomas Plieger, Thomas Grünhage, Éilish Duke, Martin Reuter

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

Original languageEnglish
Pages (from-to)64-73
Number of pages10
JournalJournal of Individual Differences
Volume42
Issue number2
Early online date23 Jul 2020
DOIs
Publication statusPublished - 1 Apr 2021

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