Keywords
Personality traits
Investment biases
Gender
Mental accounting
Loss aversion
Categories
How to Cite
Abstract
Investment choice is frequently disguised by psychological bias, and investors are frequently led off track from rational decision making. This research examines the impact of religiosity and the Big Five personality traits on two primary investment biases, loss aversion and mental accounting, moderated by gender. With a sample size of 321 individual investors in Goa, India, Structural Equation Modeling (SEM) identifies that Agreeableness, Conscientiousness, Extraversion, and Neuroticism all increase both biases significantly, while Openness to Experience influences mental accounting only. Religiosity also increases both biases. Notably, gender moderates these relationships, particularly the effects of Neuroticism and Religiosity on both biases. Additionally, gender influences the relationship between Agreeableness and mental accounting , as well as the associations of Conscientiousness, Extraversion, and Openness with loss aversion. These results emphasize the essential role of gender in determining how personality and religiosity lead to financial biases, highlighting the necessity for gender-inclusive financial education and advisory approaches. By incorporating psychological and cultural aspects into investment behaviour research, this research provides useful contributions for financial planners, policymakers, and retail investors seeking more tailored and efficient decision-making models.
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