The big five traits, moods, and investment decisions in emerging stock markets

Abstract

The study explored the effects of the Big Five traits and moods on investment performance of individual investors trading on the Vietnam stock market. The author used in-depth interviews, a pilot survey involving 50 investors, and then questionnaires distributed to 500 individual investors, and 465 valid returned ones. Results showed that Openness to experience (OPEN), Agreeableness (AGR), and Neuroticism (NEU) had direct impact on negative moods. Extraversion (EXT) directly influenced positive moods. Conscientiousness (CON) directly affected investment decisions. More notably, EXT had the significant indirect impact on investment decisions through the mediation of positive moods. For managerial decisions, investors are always in positive moods before making investing decisions. Moreover, investors who are prone to OPEN, AGR and NEU prudently consider joining in the financial investment.