RT Journal Article
SR Electronic
T1 Conscientiousness and Performance: The Influence of Personality on Investment Decisions
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP jwm.2023.1.199
DO 10.3905/jwm.2023.1.199
A1 Tobias Lauter
A1 Marcel Prokopczuk
A1 Stefan Trück
YR 2023
UL https://pm-research.com/content/early/2023/01/19/jwm.2023.1.199.abstract
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.