How Psychological Profiling Predicts Entrepreneurial Investment Choices

Abstract

This study examines the role of personality characteristics of an individual investor on the investment decisions. This study focuses on determining the impact of openness to experience, extroversion, agreeableness, financial knowledge and conscientiousness on investors behavior and in turn on the decision process that provide valuable insight to the investors behavior and help other entrepreneur’s. Data collection is done by using survey questionnaire. Data was collected from 279 entrepreneurs of Pakistan. The findings of research revealed that personality traits of an entrepreneur put some impact on their behavior that influences their investment decision as results of research show that financial knowledge and openness to experience have positive relation with investment decision while conscientiousness, extroversion and neuroticism have negative relation with investment decision. Research has made an integrated attempt in order to find the impact of personality characteristics of entrepreneurs on investment decisions. The study will contribute significantly toward the understandings of entrepreneur’s behavior and will help in making better decisions.