Influence of Personality Traits and Behavioural Biases on Irrational Investment Decision Making of Public Officials

This study examines the behavioural and personality factors in the investment of public officials. Investment Decision Making (IDM) of the individual investors may be rational or irrational and here the study focused on the irrational IDM. The influence of eight types of behavioural biases and Big f...

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Bibliographic Details
Published in:The review of finance and banking 2023-06, Vol.15 (1), p.49-63
Main Authors: Rathi, N, Geetha, D
Format: Article
Language:English
Subjects:
Behaviorism
Business Economy / Management
Personality Psychology
Public Administration
Online Access:Get full text
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Summary:This study examines the behavioural and personality factors in the investment of public officials. Investment Decision Making (IDM) of the individual investors may be rational or irrational and here the study focused on the irrational IDM. The influence of eight types of behavioural biases and Big five personality traits (BFPT) on irrational IDM are studied along with mediation effect. Significant findings of the study are that BFPT and Behavioural biases pointedly influence public officials' Irrational IDM. Personality traits have a mediating role in behavioural bias and irrational decisions. The results suggest that personality traits and Behavioural biases are key in investment decisions and the investor education and awareness programmes are vital in overcoming the biases and lead to rational decisions.
ISSN:2026-2713
2067-2713
2067-3825
DOI:10.24818/rfb.15.01.05