Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.Ảnh hưởng của một số tính cách đến dự định đầu tư cổ phiếu trong tương lai của nhà đầu tư cá nhân trên thị trường chứng khoán Việt Nam: nghiên cứu vai trò trung gian của nhận thức rủi ro, nhận thức không chắc chắn và kết quả đầu tư.
Trang 2Supervisors: Associate Professor, PhD Trần Hà Minh Quân
PhD Ngô Quang Huân
Reviewer 1:
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……… Reviewer 2
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………Reviewer 3
At time date month year…2022
The thesis can be foundat:
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
-NGUYỄN HỮU THỌ
THE EFFECT OF BIG FIVE TRAITS ON INVESTMENT INTENTIONS: THE ROLE OF MEDIATORS OF RISK PERCEPTION,
Trang 3paper
01
“The effect of risk
perception and uncertainty
perception on investment
performance and intentions
in the Vietnam stock
market.”
Nguyễn Hữu Thọ, Trần Hà
Minh Quân, Tăng Vũ Hùng
2020 Article
02
The effect of Big Five
Traits on stock investment
intentions: The mediators of
risk perception, uncertainty
perception and investment
03 The Impacts of the Big Five
Traits on the Intention of Stock
Uncertainty, and Investment
Performance Perception (English
version)
Nguyễn Hữu Thọ, Trần Hà
2020 Article
Trang 5CHAPTER 1: OVERVIEW OF RESEARCH THESIS 1.1 Research problem
1.1.1 Current stock investment in Vietnam
Individual investors are the key contributors to the development ofVietnam's stock market There have been close to 2,8 million tradingaccounts owned by individual investors in 2020, individual investors make
up by 99.5% of the total investors trading in the stock market However,individual investors also experienced many tough periods due to thefluctuation of stock prices, ups and downs Namely, when the world facedthe global financial crisis in 2007, surprisingly, the VN-INDEX indexincreased dramatically, leading the stock market to become the "hottest"market According to Stock Market Magazine (cafef.vn, 2007), individualinvestors used high leverage to buy stocks, for example, debt ratio of 1:3(for every 1 VND, investors can borrow 3 more VND) As a result, whenstock prices went down sharply, especially, in the period 2009-2010, alarge number of investors fell into heavy debt, even went bankruptcy.Recently, in 2020, according to Vietnam Economic Review(VnEconomy), when the stock market recovered, the VN index reachedfrom 915 points (October 1, 2020) to 1,015 points (December 31, 2020),causing investors to consider it as an opportunity to earn higher returns thanbank savings So, they withdrew their bank deposits to buy stocks
However, after only a few trading sessions, the VN index dropped 90points, from 1,125 points (January 19, 2021) to 1,035 points (January 28,2021), investors faced huge losses Importantly, when the stock marketplunged continuously, plus the COVID-19 outbreak (January 2021),investors sold stocks at any cost and accepted to sell at low prices to cutlosses
When faced a large loss, investors may be discouraged and do notwant to invest in stocks, which may lead them to change from stock
Trang 6investment to other channels such as bank savings, gold savings, foreigncurrencies trading Therefore, it needs to have more interventions to helpinvestors reduce their concerns, enhance awareness of financial investment
as part of accumulated and long-term savings and have more positiveattitudes towards stock investment, which all make them to continue toinvest in the stock market
1.1.2 Gaps in literature
Literature finds the role of personality traits in investmentdecisions, and confirms that a better understanding of personality traitshelps investors (investors) be more cautious in decision- making, and as aresult, have more effective results in stock investment and continueinvesting in the stock market (Aren et al., 2021; Aren & Hamamcı, 2020;Akhtar & Batool, 2012; Mayfield et al., 2008; Nandan & Saurabh, 2016)
Big Five Traits exert an influence on investment intentions,namely: openness (Aren & Hamamcı, 2020; Akhtar & Batool, 2012);conscientiousness (Aren et al., 2021; Akhtar & Batool, 2012; Nandan &Saurabh, 2016); extraversion (Nandan & Saurabh, 2016; Mayfield et al.,2008); agreeableness (Aren et al., 2021; Nandan & Saurabh, 2016); andneuroticism (Aren et al., 2021; Aren & Hamamcı, 2020; Nandan &Saurabh, 2016; Mayfield et al., 2008)
Mayfield et al (2008) find that only one out of five traits: opennesshas a direct impact on long-term investment intentions This may lead to anargument that the nature of personality traits cannot fully explain decisionmaking Instead, it needs to think about possible risks of stocks andachieved results before making an investment decision (Nandan andSaurabh, 2016; Trang & Khuong, 2017; Trang & Tho, 2017)
Risk perception is a contributor to investment results (Hoffmann etal., 2015; Lim et al., 2016; Trang & Khuong, 2017; Trang & Tho, 2017).The risk-return tradeoff is a well-known concept that is derived from
Trang 7finance theory: traditional and modern finance theory (behavioral finance).Traditional financial theory – such as the Capital Asset Pricing Model –CAPM demonstrates a positive relationship between risk and return: thehigher the risk, the higher the expected return Proponents of behavioralfinance also find a positive association between perceived risk andperceived investment returns (Hoffmann et al., 2015; Lim et al., 2016;Trang & Khuong, 2017; Trang & Tho, 2017)
Risk perception is also a mediator between personality traits andinvestment results and investment decisions (Trang & Khuong, 2017;Trang & Tho, 2017) However, risk perception (and uncertainty perception)
as mediators remain limited in the literature, particularly, in financialdecisions This study, therefore, will examine this and expects to contribute
to theory and practice
In fact, some effective investors want to continue investing, andinvestors are not have profit investing in securities, they want to leave themarket, so the study proposes factors affecting individual investors'intention to continue investing in securities (stocks) by combining withthree fundamental theories: (i) trait theory, (ii) financial theory : includestraditional finance with modern finance, and (iii) theory of plannedbehavior (TPB)
Trait Theory
Personality theory deals with human personality Allport (1961) developed4,500 personality adjectives and classified them into three levels: primary(passionate/obsessed), central (honest) and secondary (like/dislike).Personality is different from emotion: personality is relatively stable, whileemotions change and occur only for a short time (Ekkekakis, 2013) Thestudy examines and classifies the personality of investors according to thefive personalities of the authors Costa & McCrae (1985); McCrae & Costa
Jr (1997) and McCrae & John (1992), with the name "Big Five", including
Trang 8openness, conscientiousness,, extraversion, agreeableness and neuroticism.The Big Five became the most widely used personality assessment tool(Matthews, Deary & Whiteman, 2003).
However, the author is interested in the explanatory personality It is notenough to directly affect the decision to intend to continue investingbecause investors can be affected by many environmental factors such asperceived risk, uncertainty and investment outcomes in the past (Nofsinger,2008) Specifically, investors may be more risk-averse (preferring to investhigh-risk stocks) after a profit, but are very careful to take risks after a loss(Nofsinger, 2008) Therefore, the author will examine investor personality
in relation to environmental factors in financial theory
Financial theory: tradition and modern
Traditional financial theory assumes that investors are risk averse, butwhen risk is high, returns are high That is, the relationship between riskand return is positive (Ex: Capital Asset Pricing Model - CAPM) ThisOpinion is much debated by researchers who support modern financetheory – behavioral finance The authors argue that the relationshipbetween risk and return is not always positive (Kahneman & Tversky,1979; Ricciardi, 2008; Simon, 1955; Tversky & Kahneman, 1975), insteadthere, they can be in the positive, or in the negative depending on theinvestor's point of view In fact, investors want to achieve high profits butchoose to invest in stable, sustainable stocks with little market pricevolatility The study agrees with the assumptions of traditional financialtheory and a part of behavioral finance on the positive relationship betweenrisk and return: the higher the perceived risk, the higher the risk The higherthe expected return, and this perception can make investors feel excited tocontinue investing in the near future This argument is related to theory ofplanned behavior
Theory of planned behavior (TPB):
Trang 9The theory of planned behavior (Fishbein.& Ajzen, 1977; Ajzen, 1991) wasdeveloped from the Theory of Reasoned Action (TRA), which emphasizesthe importance of intention to do something Because the higher we haveintentions, the more likely they are to deliver In the study, the author alsothinks that, the higher the investor intends to invest in securities, the morelikely they are to invest and maintain investment.
Up to now, there seems to be little empirical research that combinesthree theories: personality, finance and planning behavior about securitiesinvestment of individual investors on the Vietnamese stock market
Therefore, the author conducts a thesis research with the title: “The influence of Big Five Traits on investment intentions of individual investors in the Vietnamese stock market: A study of the mediating role of risk perception, uncertainty perception and investment results” General Conceptual Framework
Source: Suggested by Author
Figure 1.1 General Conceptual framework
Investmentresults Investmentintentions
Trang 10- Propose policy and administration implications to the State SecuritiesCommission, Stocks Exchange, investors and securities companies
1.4 Scope and research methodology
Research scope: this study surveyed individual investors trading in
the Vietnamese stock markets such as Ho Chi Minh City (HOSE), Hanoi(HNX) and UpCom Investors have mainly lived in Ho Chi Minh City,Hanoi, Da Nang, and Mekong Delta areas
Research methodology: this study used qualitative and
quantitative methods (i) Qualitative method: this study conducted in-depth
interviews with financial experts with ten years of experience in securitiesinvestment This method helps to develop scales of risk and uncertaintyperception when investing in the types of stocks in practice In addition, ithelps complement and adjust the questions of the big five traits, investmentresults and investment intentions prior to conducting quantitative research
(preliminary and final surveys) (ii) Quantitative method: this study
conducted a preliminary test with 265 individual investors Final surveyswere sent to 600 individual investors and received 465 valid responses withfull information
1.5 New contributions in theory and practice of the thesis
Trang 11Contributions to the literature: This study (i) relatively complete and
systematic synthesis study of the underlying theories: personality, finance,and planned behavior More importantly, financial theory is the mediatorbetween personality theory and planned behavior theory The theories
presented are of value as a reference for research in the relevant field (ii)
develops the scales of risk perception and uncertainty perception aboutstock investment in the Vietnam stock market Particularly, this studyaddresses the difference between perceived risk and uncertainty andinvestigates this difference through an empirical study
Practical contributions: This study has practical significance for the
State Securities Commission, the Stock Exchange should develop andsupplement clear securities policies and laws, especially for stocks withwarning, control, restrict or suspend transactions, and strictly handle listedpublic joint stock companies when providing incomplete or inaccurateinformation In addition, research helps individual investors understandtheir personality, understand the importance of risk perception, uncertaintyand satisfaction with investment results in deciding to continue investing instocks in the future Securities companies, stockbrokers better understandthe relationship between customers' personality and investment intentions
to be able to advise more effectively for individual investors
1.6 Structure of the thesis
This thesis is carried out in five chapters: Chapter 1:Overview of the research topic; Chapter 2: Theoreticalbackground and research model; Chapter 3: Researchmethod; Chapter 4: Research results and discussion;Chapter 5: Conclusion and implications
Trang 12CHAPTER 2: THEORETICAL BACKGROUND AND RESEARCH
MODELS 2.1 Trait Theory
Trait Theory studies human personality traits Personality traits aredefined as a combination of habits of behaviors, thoughts and feelings(Gordon Allport, 1952) Traits and emotions are different, in which traitsare relatively stable over a long period of time, while emotions onlyindicate at a time (Ekkekakis, 2013) Gordon Allport (1952), one of thefirst psychologists, study personality traits, including 4,500 trait adjectivesand are divided into three levels: major (passionate/obsessed), central(honesty) and minor (like/dislike) Later, Cattell et al (1970) have a shortversion with sixteen personality factors (16PF), which was widely used.However, 16PF also has limitations in terms of consistency (Matthews etal., 2003) In 1997, Eysenck (1997) introduces a trait model of three mainpersonality traits: agreeableness, extraversion and neuroticism Based onthese three main characteristics, McCrae & Costa Jr (1997) developed fivepersonality traits: openness to experience, conscientiousness, extroversion,agreeableness and neuroticism Based on the trait theory, this studyinvestigates investors’ big five traits
2.2 Finance Theory
Finance Theory includes traditional and modern theories (behavioralfinance) Traditional theories such as the modern portfolio theory (MPT)and the capital asset pricing model (CAPM), both assume a positive trade-off between risk and expected return: higher risk, higher expected returns.However, researchers of behavioural finance argue that the risk-returnrelationship can be either positive or negative, because perceived risk andexpected return depend on the investor's perspectives (Kahneman &Tversky 1979; Statman, 2005; Ackert, 2014; Baker & Ricciardi 2014)
Trang 13Investors do not always make rational decisions to achieve optimal returns(Statman, 2005) Instead, they can sell stocks to avoid losses (Kahneman &Tversky 1979; Ackert, 2014; Baker & Ricciardi 2014) The study is based
on financial theory (traditional and behavioral) to examine the relationshipbetween perceived risk (uncertainty) and investor's expected returns.Knight (1921) distinguishes the difference between risk anduncertainty as follows: both are relative to the risks, but differ only inknowing or not knowing the probability of success in stock investment.Therefore, the perceived risk of a stock investment is the level of riskperceived by investors when the probability of success is known Perceiveduncertainty about stock investment is the degree of uncertainty perceived
by investors when the probability of success is unknown Given thisdistinction, the study examines the level of risk and uncertainty perceived
by investors when investing in stocks
2.3 Theory of Planned Behavior (TPB)
Theory of Planned Behaviour (TPB) was developed from theTheory of Reasoned Action (TRA) (Fishbein, 1967; Ajzen & Fishbein,1975) According to TRA, attitudes towards a behaviour and subjectivenorms are the two main predictors of behavioral intentions Later, Ajzen(1991) suggest an additional factor “perceived behavioral control” to reflectthe ease or difficulty of performing a behavior The study uses the TPB toexamine investors' intentions to invest in stocks, as greater intentions toperform a behaviour result in higher actual stock investment (Ajzen, 1991)
2.4 Related literature and hypotheses formation
2.4.1 Direct impacts
Openness: People prone to openness are often highly imaginative,
innovative and tend to use information in their decisions (McCrae & Costa,1997; Mayfield et al., 2008; Pinjisakikool, 2018) Previous studies find arelationship between openness and investment intentions short-term