Text Mining-Based Empirical Analysis of how Personality Traits Affect Stock Investment

DOI

10.2991/978-94-6463-811-0_127How to use a DOI?

Keywords

personality traits; stock investment; text mining; trust; CFPS

Abstract

Stocks are essential in household financial asset allocation, and personality traits significantly impact stock investment, affecting investors’ decision-making, risk management, and long-term performance.This study innovatively employs text mining techniques to construct a dual-validation system, confirming that the Big Five personality metrics derived from the CFPS questionnaire exhibit strong external validity in financial investment contexts. Furthermore, the five broad personality dimensions are refined into 12 sub-dimensions. Using data from the CFPS(2016 and 2018), we empirically analyze the impact of personality traits on stock investment. Regression results reveal that among all 12 subdivided personality traits of household heads, only trust sub-dimension of agreeableness a robust and statistically significant positive effect on household stock investment. Specifically, household heads with higher levels of trust in strangers are more susceptible to external influences, including social environments, when making investment decisions, leading to greater stock market participation, higher probabilities of holding stocks, and larger stock allocations. This positive association remains unaffected by endogeneity issues or unobserved risk attitudes due to data limitations. Our findings suggest that policymakers should explicitly account for the influence of personality traits, particularly trust, when designing regulations or interventions targeting retail investors.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhenhua Fan
PY  - 2025
DA  - 2025/08/14
TI  - Text Mining-Based Empirical Analysis of how Personality Traits Affect Stock Investment
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 1164
EP  - 1170
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_127
DO  - 10.2991/978-94-6463-811-0_127
ID  - Fan2025
ER  -