Review of Professional Management

Influence of Big Five Personality Traits on Herding Bias: Delhi-NCR Region

Rohit Kaushik¹ and Nishtha Pareek²

First Published 27 Jul 2023. https://doi.org/ 10.1177/09728686231180968

Article Information

Volume 21, Issue 1 June 2023

Corresponding Author:

Rohit Kaushik, Banasthali Vidyapith, Jaipur, Rajasthan 304022, India
Email: rkaushik46@gmail.com

¹Banasthali Vidyapith, Jaipur, Rajasthan, India

²Department of Commerce and Management, Banasthali Vidyapith, Jaipur, Rajasthan, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.

Abstract

Herding is a phenomenon which has become a matter of curiosity among researchers. As herding amplifies the reaction of the retail investors to the developments in the stock market, and researchers are finding an answer to this problem in the personality traits of the investors. With a sample size of 100 respondents, the research took place in Delhi-NCR. Data collection took place with the help of a structured questionnaire. In this process, factor analysis was used to identify key variables, and multiple regression test was conducted to ascertain the association between the two variables. The study concluded that agreeableness and neuroticism were the personality traits which were highly vulnerable to herding bias. The findings of the study were that neuroticism and agreeableness are the two personality traits which are highly vulnerable to the problem of herding in stock market, whereas other personality traits did not show any significant relation with herding bias. The research will be immensely beneficial for the research advisors to develop plans in accordance with personality traits of the upcoming investors to save them from the fluctuations in the stock market.

Keywords

Delhi-NCR, herding, multiple regression, personality traits

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