Citation:

Indra Widjaja, Helena. "Big Five Personality On Investment Decision: A Study On Peer-to-Peer Lending Companies In Indonesia" International Research Journal of Economics and Management Studies, Vol. 3, No. 11, pp. 292-296, 2024.

Abstract:

The personality traits of an investor that affect their decision to invest will be covered in this study. Making decisions about investments is an important process. Using the Big Five personality traits—conscientiousness, neuroticism, agreeableness, extraversion, and openness to experience—this study investigates the personality characteristics that impact investment decisions in Indonesian peer-to-peer lending organizations. A questionnaire was used to collect data from 64 investors who had invested in Indonesian peer-to-peer lending organizations. According to the findings of the hypothesis testing, openness to experience has a considerable influence on investment decision-making, as does conscientiousness and agreeableness. However, it has been found that there is no significant influence of extraversion on investment decision-making and of neuroticism on investment decision-making.

References:

[1] Chandra, A.A. (2019). Sulit Dapat Kredit Perbankan Pelaku UMKM Pinjam ke Banyak Pihak. From https://finance.detik.com/bursa-dan-valas/d3313844/sulit-dapat-kredit-perbankan-pelaku-umkm-pinjam-ke-banyak-pihak.
[2] Costa, P. T., & McCrae, R. R. (1992). Normal Personality Assessment in Clinical Practice: The NEO Personality Inventory. Psychological Assessment, 4 (1), 5–13.
[3] Dewberry, C., Juanchich, M., & Narendran, S. (2013). Decision Making Competence in Everyday Life: The Roles Of General Cognitive Styles, DecisionMaking Styles and Personality. Personality and Individual Differences. 55, 783-788.
[4] Engler, B. (2009). Personality TheoriesAn Introduction 8th. USA: Houghton Mifflin Harcourt Publishing Company.
[5] Feist, J., & Feist, G. J. (2009) Theories of Personality. New York, McGraw-Hill.
[6] Ferdiani, K.R. (2019). Tidak Hanya Peluang Kenali Juga Risiko Peer to Peer Lending. From https://www.modalrakyat.id/blog/tidak-hanya-peluangkenali-juga-risiko-peer-to-peer-lending.
[7] Friedman, H., & Schustack, M. (2006). Personality: Classic Theories and Modern Research 6th edition. Pearson Education Inc.
[8] Law on SMEs, No. 20, 2008
[9] Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment Management and Personality Type. Financial Services Review, 17 (3), 219-236.
[10] Nga, J.K.H., & Yien, L.K. (2013). The influence of personality trait and demographics on financial decision making among Generation Y. Young Consumers, 14 (3), 230-243.
[11] Otoritas Jasa Keuangan. (2016). Peraturan Otoritas Jasa Keuangan Nomor 77/POJK.01/20162016 Tentang Layanan Pinjam Meminjam Uang Berbasis Teknologi Informasi. From https://www.ojk.go.id/id/regulasi/otoritas-jasa-keuangan/peraturan-ojk/Pages/POJK-Nomor-77-POJK.01-2016.aspx.
[12] Otoritas Jasa Keuangan. (2018). PeraturanOtoritas Jasa Keuangan OJK Nomor 13/POJK.02/2018 tentang Inovasi Keuangan Digital di Sektor Jasa Keuangan. From https://www.ojk.go.id/id/regulasi/Pages/Inovasi-Keuangan-Digital-di-Sektor-Jasa-Keuangan.aspx.
[13] Sadi, R., Asl, H. G., Rostami, M. R., Gholipour A., & Gholipour F. (2011). Behavioral Finance: The Explanation of Investors’ Personality and Perceptual Biases Effects on Financial Decisions. International Journal of Economics and Finance, 3 (4), 234 – 241.
[14] Smriti, C. (2015). Decision Making: 7 Steps Involved in Decision Making. Business Management.
[15] Smart, S., Gitman, L., and Joehnk, M. (2014). Fundamentals of Investing 12th edition. Boston: Pearson.
[16] Widjaja, Indra, (2011), Dampak Ukuran Degree Of Financial Leverage, Sales Growth Dan Size Growth Terhadap Return Harga Saham, Media Riset Bisnis & Manajemen, Vol 11, No 2 (2011), pages 126-139, e-ISSN 2442-9716. https://doi.org/10.25105/mrbm.v11i2.1098
[17] Widjaja, Indra, (2014). Dampak Peningkatan Asset, Profitabilitas Dan Likuiditas Terhadap Leverage Perusahaan. Jurnal Akuntansi, 18(3), 459–474. https://www.ecojoin.org/index.php/EJA/article/view/276
[18] Widjaja, Indra; Agus Zainul Arifin and Made Setini, (2020), The effects of financial literacy and subjective norms on saving behavior, Management Science Letters Journal, Growing Science, volume 10, number 15, June 2020, Pages: 3635-3642, e-ISSN 1923-9343. https://www.growingscience.com/msl/Vol10/msl_2020_208.pdf

Keywords:

Investment Decision, Peer-To-Peer Lending, Openness To Experience, Conscientiousness, Extraversion, Agreeableness, And Neuroticism.