Impact of investor personality types with interaction effects of demographics on investment behavior : evidence from Pakistan

The study consists of three dimensions of investor personality types having psychological biases and investment behavior. The purpose of this study is to empirically examine the relationship between investor personality types and investment behavior in the stock market of Pakistan. Questionnaire based cross sectional survey was conducted to collect the primary data from individual investors in the Islamabad Stock Exchange of Pakistan. Multivariate regression results reveal that investor personality types significantly influence the investment behavior of individuals. This entails that investment adviser and their clients can make suitable investment programs by considering the three dimensions of investor personality types (having cognitive and emotional psychological biases) toward the investment behavior of individual investors. This study captures the attention of investors, to the combine usage of both standard finance and micro behavioral finance that might be guiding principle for determining the investor's personality type. Finally, the investors would be in the position to construct the profitable investment in the stock market.