Personality-driven value investing: The mediating role of financial self-efficacy and versatile cognitive styles
(2025) In Journal of Behavioral and Experimental Finance 48.- Abstract
- The influence of individual psychological and cognitive characteristics on preferences for value versus growth stocks (VSvGS) is not well understood. This study examines the influence of personality traits, financial self-efficacy (FSE), and versatile cognitive styles (VCS) on the choice between VSvGS. Specifically, it examines both the direct effects of personality traits on individual preferences and the indirect effects mediated by FSE and VCS. Data were collected from 351 students across two universities, one in Italy and the other in Pakistan. The results provide a significant positive (negative) direct effect of conscientiousness and openness (extraversion and neuroticism) on the preference for VSvGS. Furthermore, the study... (More)
- The influence of individual psychological and cognitive characteristics on preferences for value versus growth stocks (VSvGS) is not well understood. This study examines the influence of personality traits, financial self-efficacy (FSE), and versatile cognitive styles (VCS) on the choice between VSvGS. Specifically, it examines both the direct effects of personality traits on individual preferences and the indirect effects mediated by FSE and VCS. Data were collected from 351 students across two universities, one in Italy and the other in Pakistan. The results provide a significant positive (negative) direct effect of conscientiousness and openness (extraversion and neuroticism) on the preference for VSvGS. Furthermore, the study demonstrates that conscientiousness and openness (extraversion and neuroticism) have a positive (negative) impact on preferences for VSvGS, mediated by FSE and VCS. Moreover, the results show no significant differences in the impact of personality traits on the preferences for VSvGS between respondents from Italy and Pakistan. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/a3316236-95d8-4fe7-b48b-db0129c435b9
- author
- Ahmad, Fawad LU
- organization
- publishing date
- 2025
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Personality traits, Financial self-efficacy, Versatile cognitive style, Value premium, Value investing, Behavioral finance
- in
- Journal of Behavioral and Experimental Finance
- volume
- 48
- publisher
- Elsevier
- external identifiers
-
- scopus:105017020051
- ISSN
- 2214-6350
- DOI
- 10.1016/j.jbef.2025.101114
- language
- English
- LU publication?
- yes
- id
- a3316236-95d8-4fe7-b48b-db0129c435b9
- date added to LUP
- 2025-10-21 19:59:51
- date last changed
- 2025-10-22 08:45:02
@article{a3316236-95d8-4fe7-b48b-db0129c435b9,
abstract = {{The influence of individual psychological and cognitive characteristics on preferences for value versus growth stocks (VSvGS) is not well understood. This study examines the influence of personality traits, financial self-efficacy (FSE), and versatile cognitive styles (VCS) on the choice between VSvGS. Specifically, it examines both the direct effects of personality traits on individual preferences and the indirect effects mediated by FSE and VCS. Data were collected from 351 students across two universities, one in Italy and the other in Pakistan. The results provide a significant positive (negative) direct effect of conscientiousness and openness (extraversion and neuroticism) on the preference for VSvGS. Furthermore, the study demonstrates that conscientiousness and openness (extraversion and neuroticism) have a positive (negative) impact on preferences for VSvGS, mediated by FSE and VCS. Moreover, the results show no significant differences in the impact of personality traits on the preferences for VSvGS between respondents from Italy and Pakistan.}},
author = {{Ahmad, Fawad}},
issn = {{2214-6350}},
keywords = {{Personality traits; Financial self-efficacy; Versatile cognitive style; Value premium; Value investing; Behavioral finance}},
language = {{eng}},
publisher = {{Elsevier}},
series = {{Journal of Behavioral and Experimental Finance}},
title = {{Personality-driven value investing: The mediating role of financial self-efficacy and versatile cognitive styles}},
url = {{http://dx.doi.org/10.1016/j.jbef.2025.101114}},
doi = {{10.1016/j.jbef.2025.101114}},
volume = {{48}},
year = {{2025}},
}