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Do Personality Traits and Emotional Intelligence of Investors Determine Their Risk Tolerance?

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  • Babli Dhiman
  • Saloni Raheja

Abstract

In today’s scenario, investment is very important in everyone’s life. Investors always prefer the investment avenues according to their suitability, risk and the return because there are different investment avenues available in the market. There are various factors that influence the risk tolerance behaviour of the investors, such as age, gender, marital status, experience, income, household expenditure, present and future savings, future expectations of returns and future planning of the investor. But the risk tolerance is also affected by the personality traits and emotional intelligence (EI) of the investors. Thus, the present study focuses on the relation between the personality traits, EI and risk tolerance of the investors. The data was collected from 500 investors who invest through LSC Securities Ltd (formerly LSE Securities Ltd) in Punjab by using structured questionnaire. Multiple regression test was applied through SPSS to test the significance of relationship among the variables. The study found the relation of risk tolerance with personality traits and EI to be statistically significant.

Suggested Citation

  • Babli Dhiman & Saloni Raheja, 2018. "Do Personality Traits and Emotional Intelligence of Investors Determine Their Risk Tolerance?," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 43(1-2), pages 88-99, February.
    • Handle: RePEc:sae:manlab:v:43:y:2018:i:1-2:p:88-99
    DOI: 10.1177/0258042X17745184
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    References listed on IDEAS

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