Article Details
  • Published Online:
    July  2024
  • Product Name:
    The IUP Journal of Applied Finance
  • Product Type:
    Article
  • Product Code:
    IJAF0724
  • Author Name:
    Neetu Malhan and Sanket Vij
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    11
Role of Personality Traits in Investment Decisions: A Scoping Review
Abstract

The findings from existing literature on how decision-making is affected by personality traits remain inconclusive and provide only a partial understanding of the influence of personality on investment behavior. Hence, the present study seeks to bring all previous studies together and present a summary in a systematic and comprehensive manner. The paper implements the five-phase framework of Arksey and O’Malley and is backed by PRISMA-ScR guidelines. It reviews the outcomes of 17 studies from different nations and makes recommendations for further explorations. The findings not only integrate the current empirical evidence of a causal relationship between personality and investment decisions, but also reveal significant knowledge gaps in the field of investment decision to guide future research in the domain.

Introduction

Decision-making is a subjective concept and differs from individual to individual. Each individual possesses different experiences, preferences, and emotional and cognition levels, resulting in heterogeneity in decision-making. These subjective judgments can also be seen in investment decisions.