The influence of Investor personality traits on information acquisition and trading behavior: Evidence from Chinese futures exchange

Abstract

This study investigates the association between information acquisition and trading behavior by analyzing the influence of investor personality. We adopted the Big Five personality framework and examined the survey results of individual investors (n = 333) in Chinese futures market. Results of this study indicated that information acquisition is directly proportional to trading frequency. We also add to the existing literature by providing empirical evidence that extraversion and conscientiousness positively moderate the relationship between information acquisition and trading frequency; and openness negatively moderates the relationship between information acquisition and trading frequency. This research combines both the information search literature and the behavioral finance literature to investigate that information acquisition that relates to asset allocation decisions is influenced by investor personality traits.