Do the gambling attitude of investors is a tool to predict their investment personality?

Abstract

Each individual has different set of attitude, thinking, individual difference; decision making style etc. All these attributes contribute one’s personality development. Individual’s personality is determined by both psychological and psychographic factors. Gambling is a psychological problem often faced by investors while making investment decisions. The primary focus of this paper is to study the influence of investor’s gambling attitude and their demographics on determining the investment personality of investors. Multistage random sampling technique is used to collect the data of 742 retail investors who are accessing Indian stock market. The Cronbach’s reliability of investor’s different gambling and personality factors are greater than 0.60. Results of this study reveal that investor’s intuitive gambling attitude has shown meaningful influence on their personality development. Further investors demographics variables have shown significant influence of their investment personality.

Keywords: Behavioral finance, Demographic Factors, Gambling, Investment decisions, Investment strategies, Personality development.