The Influence of Personality on Investor Decision: Does Emotional Intelligence Moderate?

Abstract

The relationship between personality and investment decision with moderating affect of emotional intelligence was analyzed in this study. It is time lagged study. Cronbach alpha was calculated to test the reliability and Pearson co1Telation to test the co1Telation. Confirmatoty factor analysis was used to measure the consistency of the construct and structural equation modeling was used to test the hypothesis. Process macro by Hayes was used to study the relationship between moderator with independent variables and dependent variable. The results suggested that extraversion, agreeableness and openness had an insignificant relationship with investment decision whereas Conscientiousness and neuroticism had a significant relationship with investment decision. Emotional intelligence was found to be a highly significant moderator, strengthening the relationship benveen personality dimensions and investment decision suggesting that they control the negative or emotional impact of their personality or their investment decision.