Personality Traits

Fung, L.; Durand, Robert

Access Status

Fulltext not available

Authors

Fung, L.

Durand, Robert

Date

2014

Type

Book Chapter

Metadata

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Citation

Fung, L. and Durand, R. 2014. Personality Traits, in Baker, H. and Ricciardi, V. (ed), Investor Behavior: The Psychology of Financial Planning and Investing, pp. 99-115. New Jersy, USA, Canada: John Wiley & Sons Inc.

Source Title

Investor Behavior: The Psychology of Financial Planning and Investing

ISBN

978-1-118-49298-7

School

School of Economics and Finance

URI

http://hdl.handle.net/20.500.11937/31474

Collection

Curtin Research Publications

Abstract

Personality captures a person’s essence. Understanding one’s personality helps explain and predict the decisions an individual makes and what a person will do. This chapter focuses on the predominant structural model of personality — the Five-Factor Model — which encapsulates personality using five higher-order traits: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience/Intellect. The Five-Factor Model is rooted in biology and is genetically based. Personality traits are a major aspect of risk taking and overconfidence behaviors. Understanding personality can improve decision-making if it helps to regulate and override dispositional tendencies leading to suboptimal outcomes.