Personality, financial risk‐taking attitude, and older individuals' stock investment decisions

Abstract

This study investigates the relationship between personality traits and older individuals' stock investment decisions using structural equation modeling. The results suggest that greater openness and extraversion are associated with a higher propensity to participate in stock investments and hold a larger proportion of stock investments relative to their other financial assets. Additionally, the findings suggest that those with greater conscientiousness and agreeableness are less likely to hold stock investments and tend to hold smaller proportions of stock investments relative to other financial assets. Last, the results indicate that those with greater openness and extraversion are more willing to take financial risks, whereas those with greater conscientiousness and agreeableness display less willingness to take financial risks.

Examining U.S. Millennial Retirement Plan Participation Decisions: The Roles of Employer Contributions and Automatic Enrollment

“…They include age, gender, education, number of children, homeownership, ethnicity, race, marital status, household income, total debt, self-employment status, confidence with investing, risk tolerance, financial advisor use, and investable assets. These variables are also included in this study because previous studies (e.g., Yao and Cheng 2017;Korankye 2023;Korankye et al 2023;Liu et al 2023aLiu et al , 2023b show their relevance in determining financial behavior, including retirement saving decisions.…”