Exploring the Impact of Personality Traits on Investment Decisions of Immigrated Global Investors with Focus on Moderating Risk Appetite: A SEM Approach

Abstract

The study investigates the impact of the personality traits of immigrant global investors on their long-term and short-term investment decisions while moderating the impact of risk appetite. By analysing how traits such as extraversion, conscientiousness, openness, agreeableness, and emotional stability intersect with risk tolerance, this research aims to provide a nuanced understanding of how individual characteristics interact to shape investment decisions. The data was collected through a structured questionnaire. PLS-SEM was applied to test the developed hypothesis. The study insinuates that personality traits do have a positive impact on short-term as well as long-term investment decisions, except agreeableness and conscientiousness, in context to long-term and short-term investment decisions. The study also suggests that risk tolerance does not have a high moderating impact on the relationship between personality traits and investment decisions, except conscientiousness, which has a negative moderate relationship between personality traits and investment decisions. To the best of our knowledge, it is the first study in which an individual’s personality traits have been studied in relation to long-term and short-term investment decisions with moderating the effect of risk tolerance in SMART PLS based on the reflective-reflective model.