Personality Traits and Financial Risk Tolerance Capacity of Generation Z Investors towards Herding Behaviour

DOI

10.2991/978-94-6463-872-1_60How to use a DOI?

Keywords

Personality Traits; Financial Risk Tolerance; Generation Z; Herding Behaviour

Abstract

The research tries to explore how personality traits (Compliant, Aggressive & Detached) and financial risk tolerance capacity play a role among Generation Z investors concerning their herding behaviour. The current studies explain how Generation Z investors are inclined to herding behaviour with different personality traits. A structured questionnaire was developed,and constructs were measured using the 5 point Likert scaling technique to study the variables. The questionnaire had been circulated online among various social media platforms to the Generation Z investors who belong to the age group from 18 - 27. A total of 150 data have been collected and used for analysis using the PLS-SEM technique. The study reveals that Generation Z investors with the personality traits of Complaint and Aggressive are Insignificant and negatively associated with herding behaviour. In contrast, the investors with Detached personality traits indicate a positive relationship with herding behaviour. Also, Detached personality is positively influenced by the financial risk tolerance towards the herding behaviour on the other hand, there is no association with the Complaint and Aggressive personality traits. To our knowledge, this is the first study conducted in the southern region of India with only Generation Z investors as a target respondent, known as first-time investors in the context of Herding behaviour and the specified personality traits such as Compliant, Aggressive and Detached. Also, the study flows in to various literature about investors exhibiting herding behaviour while making investment decisions.

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  - M. Alex Praveen Raj
AU  - B. Sathish Kumar
PY  - 2025
DA  - 2025/11/04
TI  - Personality Traits and Financial Risk Tolerance Capacity of Generation Z Investors towards Herding Behaviour
BT  - Proceedings of the 2nd International Conference on Sustainable Business Practices and Innovative Models (ICSBPIM-2025)
PB  - Atlantis Press
SP  - 993
EP  - 1004
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-872-1_60
DO  - 10.2991/978-94-6463-872-1_60
ID  - Raj2025
ER  -