Mechanism Role of Investment Strategies for Investment Performance: Investigating the Impact of Personality Traits: A Case of Behavioral Finance

Purpose: This study investigates the mechanism role of investment strategies in mediating the relationship between personality traits and investment performance within the behavioral finance framework. Drawing upon the Big Five personality models and established investment analysis approaches, this...

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Bibliographic Details
Main Authors: Tariq Mahmood Shaikh, Syed Zain ul Abdin
Format: Article
Language:English
Published: CSRC Publishing 2025-06-01
Series:Journal of Accounting and Finance in Emerging Economies
Subjects:
Online Access:https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3374
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Summary:Purpose: This study investigates the mechanism role of investment strategies in mediating the relationship between personality traits and investment performance within the behavioral finance framework. Drawing upon the Big Five personality models and established investment analysis approaches, this research examines how individual differences in personality characteristics influence investment strategy preferences and subsequent performance outcomes among individual investors. Design/Methodology/Approach: Using a quantitative cross-sectional design, primary data were collected from 401 individual investors through an online survey instrument. The research employed validated personality measures, measuring neuroticism, extraversion, conscientiousness, openness to experience, and agreeableness. Investment strategies were operationalized through three distinct analytical approaches: fundamental analysis, technical analysis, and calendar analysis. Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized to test the proposed theoretical model. Findings: The results reveal that personality traits significantly influence investment strategy preferences, which in turn affect investment performance outcomes. Implications/Originality/Value The results reveal that personality traits significantly influence investment strategy preferences, which in turn affect investment performance outcomes.
ISSN:2519-0318
2518-8488