PT  - JOURNAL ARTICLE
AU  - Tobias Lauter
AU  - Marcel Prokopczuk
AU  - Stefan Trück
TI  - Conscientiousness and Performance: The Influence of Personality on Investment Decisions
AID  - 10.3905/jwm.2023.1.199
DP  - 2023 Jan 19
TA  - The Journal of Wealth Management
PG  - jwm.2023.1.199
4099  - https://pm-research.com/content/early/2023/01/19/jwm.2023.1.199.short
4100  - https://pm-research.com/content/early/2023/01/19/jwm.2023.1.199.full
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.