Personality Differences and Investment Decision-Making

Abstract

In today's complex financial landscape, individuals increasingly scrutinize various aspects of their personal finances, considering both short-term financial matters and long-term prospects. Behavioral finance, a concept merging psychological factors with economic decision-making, challenges the efficiency of traditional finance theories. This study, focusing on Larkana, Pakistan, explores the impact of individual traits, financial attitudes, and Big Five personality traits on investment decision-making. The research aims to identify how personality traits influence investors in making short-term and long-term investment decisions. Using a quantitative approach, data was collected from 200 participants in banks, educational institutions, and SMEs in Larkana. The findings reveal correlations between personality traits and financial behavior, shedding light on the significance of considering psychological aspects in investment decisions. The study's implications extend to Larkana investors, offering insights into their financial attitudes and guiding informed investment choices.