Details
| Original language | English |
|---|---|
| Pages (from-to) | 17-44 |
| Number of pages | 28 |
| Journal | The Journal of Wealth Management |
| Volume | 25 |
| Issue number | 4 |
| Publication status | Published - Mar 2023 |
Abstract
We extract proxies for trader conscientiousness from plain text to explain the cross-section of individual and institutional trader performance. The literature claims conscientiousness to be a main determinant of workplace performance. We employ measures like text length, error frequency, sentence simplicity, and lexical diversity to construct a conscientiousness index. Our findings suggest that more conscientious traders outperform their peers on a risk-adjusted basis. This implies that personality affects investment decisions. Our data stems from a web-based platform that gives individuals the opportunity to set up small investment funds other users can invest in.
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In: The Journal of Wealth Management, Vol. 25, No. 4, 03.2023, p. 17-44.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Conscientiousness and Performance
T2 - The Influence of Personality on Investment Decisions
AU - Lauter, Tobias
AU - Prokopczuk, Marcel
AU - Trück, Stefan
N1 - Funding Information: We thank an anonymous referee, Abhay Singh, seminar participants at Leibniz University Hannover, Macquarie University, University of Sydney, and the discussants and participants at the 2020 Financial Management Association annual meeting and the 2020 Behavioral Research in Finance, Governance and Accounting conference for helpful comments. We are particularly grateful to Wikifolio for sharing their data.
PY - 2023/3
Y1 - 2023/3
N2 - We extract proxies for trader conscientiousness from plain text to explain the cross-section of individual and institutional trader performance. The literature claims conscientiousness to be a main determinant of workplace performance. We employ measures like text length, error frequency, sentence simplicity, and lexical diversity to construct a conscientiousness index. Our findings suggest that more conscientious traders outperform their peers on a risk-adjusted basis. This implies that personality affects investment decisions. Our data stems from a web-based platform that gives individuals the opportunity to set up small investment funds other users can invest in.
AB - We extract proxies for trader conscientiousness from plain text to explain the cross-section of individual and institutional trader performance. The literature claims conscientiousness to be a main determinant of workplace performance. We employ measures like text length, error frequency, sentence simplicity, and lexical diversity to construct a conscientiousness index. Our findings suggest that more conscientious traders outperform their peers on a risk-adjusted basis. This implies that personality affects investment decisions. Our data stems from a web-based platform that gives individuals the opportunity to set up small investment funds other users can invest in.
UR - http://www.scopus.com/inward/record.url?scp=85153847172&partnerID=8YFLogxK
U2 - 10.3905/jwm.2023.1.199
DO - 10.3905/jwm.2023.1.199
M3 - Article
VL - 25
SP - 17
EP - 44
JO - The Journal of Wealth Management
JF - The Journal of Wealth Management
SN - 1534-7524
IS - 4
ER -