Title

Delving into behavioral finance: Uncovering the linkage between investment peference, investor's profile, personality traits, risk perception, and investment goals

Date of Publication

2017

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management Department

Thesis Adviser

Marycris O. Albao

Defense Panel Chair

Tyrone Panzer L. Chan Pao

Defense Panel Member

Ester R. Guerzon
Michelle Brendy C. Ocampo Tan

Abstract/Summary

Investment is a popular financial vehicle wherein people invest their monies in the hopes of generating more income. Consequently, people are expected to make investment decisions that will give them maximum returns. However, this does not happen in reality. The study therefore believes that several factors influence the investment preferences of the people, specifically their personality traits, risk profiles, risk perception, and investment goals. In other words, the study seeks to prove that investors are irrational decision makers. For that reason, the study borrowed ideas from the field of behavioral finance, which is a combination of behavioral and cognitive psychology theories and conventional economics and finance theories. The study conducted a survey with 96 working adults who are currently investing in stock, bonds, money markets, mutual funds, and/or foreign exchange market. The findings of the study contradicted the study's assumptions. Personality traits and risk perception revealed no significant associations with investment preference on the contrary, investment goals showed partial significance. The study therefore concludes that when it comes to investing, investors are able to set aside their personalities and feelings towards risks for the sake of generating more income. However, the study is not closing its doors on the possibility that personality traits and risk perception may still have chances of significantly influencing people's investment decisions. Thus, the study recommends future studies to consider exploring other factors such as education, age, gender and the like, which might show significant effects on people's investment decisions.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU19964

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

143, 4 leaves, illustrations (some color), 29 cm. + 1 computer disc (4 3/4 in.)

Keywords

Investments; Finance, Personal

Embargo Period

5-10-2021

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