The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries
Household financial decision-making is a complex process influenced by various factors, including personality traits. This study examines the impact of personality traits on household finance across 31 European countries, utilizing the European Union Statistics on Income and Living Conditions (EU-S...
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| Format: | Article |
| Language: | English |
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Universidade de Santiago de Compostela
2025-01-01
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| Series: | Revista Galega de Economía |
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| Online Access: | https://revistas.usc.gal/index.php/rge/article/view/10116 |
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| author | Júlio Lobão Rashed Isam Ashqar |
| author_facet | Júlio Lobão Rashed Isam Ashqar |
| author_sort | Júlio Lobão |
| collection | DOAJ |
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Household financial decision-making is a complex process influenced by various factors, including personality traits. This study examines the impact of personality traits on household finance across 31 European countries, utilizing the European Union Statistics on Income and Living Conditions (EU-SILC) dataset from Eurostat. We employ logistic regression analysis to investigate the relationship between personality traits and three key dimensions of household finance: the likelihood of holding secured debts, the probability of experiencing financial distress, and the state of financial well-being. Our findings reveal that high levels of neuroticism and extraversion are linked to a greater likelihood of financial distress, whereas low levels of these traits are associated with a higher probability of holding a mortgage. This study highlights the significance of incorporating personality traits into the analysis of household financial decision-making and provides valuable insights into the determinants of household finance in Europe.
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| format | Article |
| id | doaj-art-1e6181ec69654686931ed45c74a7d807 |
| institution | Kabale University |
| issn | 1132-2799 2255-5951 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Universidade de Santiago de Compostela |
| record_format | Article |
| series | Revista Galega de Economía |
| spelling | doaj-art-1e6181ec69654686931ed45c74a7d8072025-01-28T13:56:00ZengUniversidade de Santiago de CompostelaRevista Galega de Economía1132-27992255-59512025-01-0134110.15304/rge.34.1.10116The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European CountriesJúlio Lobão0Rashed Isam Ashqar1School of Economics and Management - University of PortoFinance Department. Al Zaytona University of Science & Technology Household financial decision-making is a complex process influenced by various factors, including personality traits. This study examines the impact of personality traits on household finance across 31 European countries, utilizing the European Union Statistics on Income and Living Conditions (EU-SILC) dataset from Eurostat. We employ logistic regression analysis to investigate the relationship between personality traits and three key dimensions of household finance: the likelihood of holding secured debts, the probability of experiencing financial distress, and the state of financial well-being. Our findings reveal that high levels of neuroticism and extraversion are linked to a greater likelihood of financial distress, whereas low levels of these traits are associated with a higher probability of holding a mortgage. This study highlights the significance of incorporating personality traits into the analysis of household financial decision-making and provides valuable insights into the determinants of household finance in Europe. https://revistas.usc.gal/index.php/rge/article/view/10116Personality traitsHousehold financeFinancial distressFinancial well-beingSecured debtsMortgage |
| spellingShingle | Júlio Lobão Rashed Isam Ashqar The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries Revista Galega de Economía Personality traits Household finance Financial distress Financial well-being Secured debts Mortgage |
| title | The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries |
| title_full | The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries |
| title_fullStr | The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries |
| title_full_unstemmed | The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries |
| title_short | The Influence of Personality Traits on Household Financial Decisions: Evidence from 31 European Countries |
| title_sort | influence of personality traits on household financial decisions evidence from 31 european countries |
| topic | Personality traits Household finance Financial distress Financial well-being Secured debts Mortgage |
| url | https://revistas.usc.gal/index.php/rge/article/view/10116 |
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