The Impact of Investor Personality on Financial Investment Decision- Making

Abstract

In the dynamic new field of behavioral finance, the influence of investor personality is a key but lesser-understood determinant—particularly through the prism of culture. The aim of this research is to explore the impact of individual personality on investment decision-making between two very dissimilar markets: Pakistan and China. Based on the Big Five model of personality and through quantitative methods, this research determines the influence of dimensions such as extroversion, conscientiousness, neuroticism, and openness on investment attitudes, behavior, and reactions to volatility. By including cultural context and economic situation in the analysis, the research attempts to provide a richer insight into the psychology of investors. The research also fills an important gap left by existing literature, typically ignoring the ways the same personality characteristics cross cultures. The research is guided to contribute to theoretical understanding of behavioral finance and also to applications in practice in the areas of finance advice, strategy formulation, and policymaking all across cultures. Ultimately, the research emphasizes that investment behavior is not only a matter of data or strategy—it is also shaped by who the investor is, where they come from, and how they interpret risk, reward, and responsibility through the lens of personality and culture.