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The Effect of Personality Traits and Demographic Factors on Investment Decisions Making: A Framework Proposing Risk Tolerance as a Mediator – Evidence from Egypt

Article

Last updated: 04 Jan 2025

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Abstract

This study investigated the direct impact of the personal traits and demographic factors of Egyptians, their risk tolerance on their investment decisions making. Moreover, the study engaged the mediating role of the risk consists of 135 respondents representing different segments of Egyptian investors. The tolerance in the relations among investors' personal traits and their demographic factors and their investment decisions making. A survey was conducted to measure personality traits, demographic factors, risk-tolerance behavior and investment decisions of the respondents. The study sample main statistical methods used to test the study hypotheses were Pearson's correlation test and Structural Equation Model. The results confirmed that there is an effect of the Egyptians' personal traits on the investment decisions making. Also, the investment experience has an impact on the investment decision making. The findings revealed that some of the personality traits have some impact on an individual's risk-tolerance behavior. The results also revealed the partial mediating role of the risk -tolerance behavior among the personal traits and the gender of the Egyptians and their investment decisions. The study provides valuable insights to investment experts and policymakers to understand investors' behavior in Egypt.

DOI

10.21608/jsec.2022.243210

Keywords

personality traits, demographic factors- openness to experience- neuroticism- extroversion- agreeableness- conscientiousness- risk tolerance, financial literacy- investment experience

Authors

First Name

Marwa

Last Name

El Maghawry Ibrahim

MiddleName

-

Affiliation

Future Univesity in Egypt

Email

marwa.elmaghawry@fue.edu.eg

City

-

Orcid

-

Volume

52

Article Issue

2

Related Issue

34890

Issue Date

2022-07-01

Receive Date

2021-10-05

Publish Date

2022-07-01

Page Start

593

Page End

634

Print ISSN

2636-2562

Link

https://jsec.journals.ekb.eg/article_243210.html

Detail API

https://jsec.journals.ekb.eg/service?article_code=243210

Order

14

Type

المقالة الأصلية

Type Code

914

Publication Type

Journal

Publication Title

المجلة العلمية للإقتصاد و التجارة

Publication Link

https://jsec.journals.ekb.eg/

MainTitle

The Effect of Personality Traits and Demographic Factors on Investment Decisions Making: A Framework Proposing Risk Tolerance as a Mediator – Evidence from Egypt

Details

Type

Article

Created At

22 Jan 2023