The Influence of Personality Traits on Stock Investment Retention: Insights from Thai Investors

Abstract

Understanding the psychological factors that influence investment decisions is crucial for predicting stock investment retention. This study investigates the mediating role of the Big Five personality traits in stock investment retention, utilizing a modified version of the theory of planned behavior. By examining the influence of investors’ perceived risk and attitudes toward stock investment, data collected via an online survey with The Association of Thai Securities Companies (ASCO) were analyzed using Structural Equation Modeling (SEM). The findings reveal that extraversion, openness, and conscientiousness significantly impact attitudes toward stock investing, which in turn affects investment retention. However, personality traits do not directly influence risk perception. This research provides unique empirical evidence of the independence between the Big Five personality traits and risk perception among Thai stock investors, underscoring the importance of personality in shaping investment behavior through its effect on attitudes.

1. Introduction

Investing in stocks has become an increasingly accessible route for individuals to grow their wealth. The combination of increasing availability, high return potential, and technological convenience has led to a more economically diverse range of investors in global stock markets. Behavioral finance theory suggests that investors’ decision-making processes depend not only on rational economic factors such as returns and risk but also on other influences. Understanding the underlying factors influencing investors to retain their investments in the stock market, especially non-economic variables, will benefit both practitioners and policymakers.

This study examines how the Big Five personality traits influence Thai investors’ perception of risk, attitude toward stock investment, and stock investment retention. Personality traits significantly shape human behavior and influence many aspects of individuals’ lives, including investment decisions. Various studies have explored the role of personality traits in investment behavior (Akhtar and Das 2019; Durand et al. 2019; Mukhtar et al. 2023). The relationship between personality traits and investor behavior can be explained by how individual differences impact perceived risk and opportunities (Brounen et al. 2016). Personality traits are also linked to investment management, such as stock retention or liquidation (Nga and Yien 2013).

The Big Five personality trait model includes extraversion, agreeableness, openness, conscientiousness, and neuroticism (Costa and McCrae 1992). These traits have been studied extensively in social sciences, including investor behavior. Understanding their impact on the perception of risk and attitude of Thai investors is crucial for better insights into the Thai stock market.

The theoretical foundation for this study is based on the personality trait theory and the concept of perceived risk. The personality trait theory, as adapted for this study, goes beyond the rational calculations that are normally seen as the basis for investment behavior and looks at the role individual differences play in investment behavior. This study also engages with the concept of perceived risk as influenced by individual differences. Thus, this study suggests that personality traits influence an investor’s attitude toward investment and perceived risk, which in turn affect stock investment retention.

Several studies have examined factors affecting investment decisions (Rahman 2020; Svendsen et al. 2013). Akhtar and Das (2019) explored investment intentions among individual investors in India using an adapted TPB model. Their findings suggested the partial mediating influence of attitude on the relationship between investment intention and financial knowledge, as well as a mediating role of financial self-efficacy between personality traits and investment intention. Sachdeva and Lehal (2023) investigated the relationship between personality traits and investment decision-making in the Indian stock market, finding that extraversion, agreeableness, conscientiousness, and neuroticism significantly influenced investment decisions through financial satisfaction. Ngcamu et al. (2023) also reported a significant impact of personality traits and money attitudes on consumer decision-making.

The main objective of this study is to examine whether personality traits influence investors’ perceived risk and attitude toward stock investments, impacting their decisions to continue investing. The proposed research model investigates the relationships among the Big Five personality traits, risk perception, attitude toward stock investment, and investment retention. The findings have potential implications for financial practitioners, advisors, and investors.

The remainder of this paper is organized as follows. Section 2 provides a brief review of the literature on stock investment and the Big Five personality traits. Section 3 describes the theoretical framework, research model, and hypothesis development. Section 4 discusses the research methodology, development of the measurement instrument, and data collection. Section 5 and Section 6 present the data analysis and discuss the results, respectively. Section 7 discusses the theoretical and practical implications of this study. The last section provides conclusions and suggestions for future research directions.

2. Literature Review on Stock Investment and Big Five Personality Traits

Many studies have examined the factors influencing stock investments (Akhtar and Das 2019; Raut 2020; Raut et al. 2020; Shehata et al. 2021; Yang et al. 2021). For instance, Raut et al. (2020) found that individual investors’ behavior in the Indian stock market is influenced by social and psychological factors. Quaicoe and Eleke-Aboagye (2021) studied individual investors on the Ghana stock exchange and found that education influences investors’ personalities, impacting their behavior. Adil et al. (2023) investigated decision-making during the COVID-19 pandemic, revealing that attitudes significantly influence investment intentions. Wilaiporn et al. (2021) examined the sociodemographic characteristics of Thai investors, reporting that age and experience influence behavior, along with other psychological factors.

Several studies have explored the role of personality traits in decision-making (Bayram and Aydemir 2017; El Othman et al. 2020). The Big Five personality traits theory, developed by McCrae and Costa (1992), includes openness, conscientiousness, extraversion, agreeableness, and neuroticism. Individuals high in extraversion are sociable and assertive (McCrae and Costa 1987). Those high in openness are curious and open to new experiences. High agreeableness indicates cooperativeness and kindness (McCrae and Costa 1987). High conscientiousness signifies organization (Costa and McCrae 1992). Neuroticism is characterized by emotional instability and negative feelings (Carver and Connor-Smith 2010).

Research has revealed connections between personality traits and behavior (De Bortoli et al. 2019; Lissitsa and Kol 2021; Simha and Parboteeah 2020). Fauzi et al. (2021) found that extraversion and neuroticism are significantly related to the fear of missing out. Roos and Kazemi (2022) found that online shopping correlates positively with openness and extraversion and negatively with conscientiousness. Babamiri et al. (2020) reported significant relationships between extraversion, openness, agreeableness, and attitudes toward purchasing counterfeit goods.

In behavioral finance, studies have linked investor behavior with personality traits (Tauni et al. 2019). Ghaffar et al. (2022) found that extraversion negatively influences financial planning, while neuroticism and conscientiousness have positive effects. Tauni et al. (2019) also found that investor-advisor personality congruence impacts trading behavior. Jain et al. (2023) indicated that personality traits are associated with financial literacy and investment intentions.

Despite prior research on personality traits and investor behaviors, little research has examined their impact on stock investment retention. It is crucial to investigate whether individual characteristics influence perceived risk and attitudes toward investing, thereby impacting decisions to continue investing in stocks. Understanding which personality traits correlate with lower risk perception and positive attitudes toward investing can help brokers identify target clients and maximize investor retention.

While many previous studies have assessed the relationship between personality traits and investment intentions (Aren et al. 2021; Ferreira-Schenk and Dickason-Koekemoer 2023; Widagdo and Roz 2022), this study examines their relationship with investment retention in Thailand’s emerging market. The Thai stock market is unique, with a majority of individual investors and higher volatility compared to developed markets (Thanatawee 2021). Investigating the relationship between personality traits and investor behavior in this context is both useful and interesting, as personality effects on decision-making are likely more pronounced in a volatile market.

3. Theoretical Background, Research Model, and Hypotheses

The Big Five personality trait model was used as the framework for this study. The five personality traits described by this theory are extraversion, agreeableness, openness, conscientiousness, and neuroticism. This model helps not only to better understand how an individual has certain characteristics compared to others but also explores relationships between personality and many other life indicators.

The five-factor model was combined with the concept of perceived risk. The concept of perceived risk looks at the potential for negative outcomes that could have an adverse impact on investors’ interests (Pham et al. 2019). Perceived risk has been part of the cornerstone that has traditionally resulted in investors withdrawing from investments where they perceive a high level of risk or continuing to invest in investment instruments in which they perceive a lower amount of risk. This study examines the influence that the five-factor personality traits model has on stock investment retention, with perceived risk and attitude toward stock investment serving as mediators.

The literature supports the use of the Big Five personality traits in the area of investment behavior. For example, the personality trait of openness may influence investors to hold a more positive view of potential investments (Agyei et al. 2020) and possibly lower the perceived risk seen by those higher in the trait of openness. Conscientious individuals, known for their efficiency, thoroughness, and planned behavior (Lissitsa and Kol 2021), might approach investments systematically, carefully weighing the risks and potential benefits. Extraversion, associated with sociability, optimism, and risk-taking (Matthews 2018), may positively influence attitudes toward stock investments, as extroverted individuals are likely to engage actively in investment opportunities despite potential risks. Individuals who rate high in agreeableness are characterized by cooperation and altruism (Herchenroeder et al. 2022); thus, it is likely that social norms and the recommendations of others may take on a heavier weight when forming their investment attitude and perceived risk. Conversely, those who are high in neuroticism, characterized as emotionally unstable and risk-averse, may perceive higher levels of risk and generally have a more negative attitude toward stock investing.

The interaction of personality traits with perceived risk and attitude toward stock investing could definitely impact investors’ decision to continue investing in stocks. The significant impact of personality traits has been reported in technology adoption studies (e.g., Malik and Singh 2022; Talwar et al. 2022). For instance, individuals who are high in extraversion have a more risk-taking nature. Thus, they are more likely to perceive lower amounts of risk in adopting a technology. Equally, individuals who rate high in neuroticism tend to focus more on the possible negative outcomes and thus may perceive a higher amount of risk associated with adopting a technology. Conscientious individuals have faith in their ability to analyze the pros and cons of a new technology and may perceive a lower level of risk in technology adoption. Those who are characterized as agreeable tend to have faith in the views of others and may follow the lead of those in their social circle when it comes to assessing risk and attitude toward technology adoption. Those that rate high in openness are also more risk-taking in terms of technology adoption. As the personality types impact technology adoption, they may also impact stock investing behavior. There are many reasons people choose to continue investing in stocks. Personality can be expected to influence the variation in individuals’ perceived risk and stock investment attitudes, which may influence whether they will continue to invest in stocks. Figure 1 provides an illustration of the proposed research model. The model consisted of eight factors. By combining personality trait theory and the concept of perceived risk, this study aims to achieve a better understanding of how individual differences impact investment behavior. This study proposes that investment behavior involves more than rational calculations. The items used to measure these factors were adapted from prior studies, which will be described in detail in the “Development of Measurement Instrument” section.

3.1. Extraversion

Extraversion is a well-known personality trait that refers to a person who is active and enjoys being around others. Extraverted people are assertive, positive, outgoing, sociable, talkative, and cheerful (Lee and Ashton 2020). However, those low in extraversion are shy, withdrawn, and prefer solitude (Gambetti and Giusberti 2019; Lee and Ashton 2020). A study conducted by Lathif (2019) reported that extraversion significantly influences investment intentions.

Studies have shown that extraverts are willing to take risks when investing to improve their social standing (Kleine et al. 2016; Pinjisakikool 2017). Since extraverts tend to seek excitement seeking (Costa and McCrae 1992; Novikova 2013), they are more likely to invest in the stock market given their risky nature and the possibility of higher returns (Durand et al. 2008). Thus, we posit that:

H1a: 

There is a negative relationship between extraversion and perceived risk.

H1b: 

There is a positive relationship between extraversion and attitude toward stock investment.

3.2. Openness

Openness is a characteristic of individuals who are open to new things in terms of ideas, aesthetics, culture, and intellectual experiences (Lee and Ashton 2020). These people are creative, imaginative, curious, broad-minded, sophisticated, and adventurous (Rice and Robone 2022). In contrast, people who are low in openness tend to be traditional and conventional (Lee and Ashton 2020) and feel comfortable associating with familiar people and things (Novikova 2013). Investors with high levels of openness are prone to take higher risks and, as such, should perceive a lower level of risk when investing in stocks (Aren and Nayman Hamamci 2020; Lathif 2019). Individuals with the personality trait of openness rely on careful analysis of investments and, as such, generally have a positive attitude toward investing (Tauni et al. 2017).

With a variety of experiences and the adventurous minds of open individuals (Rice and Robone 2022), they have the flexibility to fit into new situations and have a wide range of strategies to cope with risky and stressful events. So, we posit that:

H2a: 

There is a negative relationship between openness and perceived risk.

H2b: 

There is a positive relationship between openness and attitude toward stock investment.

3.3. Agreeableness

Agreeableness can be defined as people who are patient, helpful, forgiving, gentle, and sympathetic (Bayram and Aydemir 2017; Rice and Robone 2022). Individuals who score high in terms of agreeableness are very cooperative, nurturing, optimistic, and empathetic toward others (Li et al. 2016). Individuals who score low in agreeableness can be skeptical, rude, self-centered, stubborn, and often do not take an interest in others (Lee and Ashton 2020). Individuals described as agreeable tend to avoid risk (Friehe and Schildberg-Hörisch 2018; Kleine et al. 2016; Pinjisakikool 2017). Thus, investors may perceive higher levels of risk when investing in stocks. Investors who are high on the agreeableness scale tend to have a more positive attitude (Wang et al. 2020) toward investing.

Agreeable individuals rely on information from others without proper evaluation (Danish et al. 2020) and are less likely to doubt the information provided by others. This makes it difficult for them to make personal financial decisions (Sadiq and Khan 2019). Thus, we posit that:

H3a: 

There is a positive relationship between agreeableness and perceived risk.

H3b: 

There is a positive relationship between agreeableness and attitude toward stock investment.

3.4. Conscientiousness

Conscientiousness is related to high levels of self-discipline, responsibility, hard work, punctuality, determination, and organization (Rice and Robone 2022). Conscientious people tend to be achievement-focused and ambitious (Novikova 2013). People with low conscientiousness tend to dislike structure and schedules. They are lazy, irresponsible, negligent, and always procrastinate or fail to complete tasks (Lee and Ashton 2020). Studies suggest that investors who are highly conscientious are more likely to perceive higher levels of risk (Friehe and Schildberg-Hörisch 2018; Kleine et al. 2016; Pinjisakikool 2017). In addition, conscientious investors rely on their diligence and carefully research investments, leading to a positive attitude toward investing (Ferreira-Schenk and Dickason-Koekemoer 2023).

With these characteristics, conscientious people will not rely on misconceptions or delusions but on their deliberate and prudent investment decisions (Danish et al. 2020). Since these abilities enhance capability and tolerance when dealing with risk-related events, we posit the following:

H4a: 

There is a positive relationship between conscientiousness and perceived risk.

H4b: 

There is a positive relationship between conscientiousness and attitude toward stock investment.

3.5. Neuroticism

Neuroticism includes depression, moodiness, and anxiety (Costa and McCrae 1992; Lai 2019). Neuroticism is a personality trait that is described as being emotionally unbalanced when faced with stress and perceived threats (Rao and Lakkol 2022). Individuals with high neuroticism are prone to be easily upset and frequently experience negative emotions (Novikova 2013). Thus, neurotic investors tend to overestimate investment risk (Oehler et al. 2018) and exhibit inconsistent attitudes toward investing (Aren et al. 2021).

With less ability to cope with stress and perceived or actual risk (Rao and Lakkol 2022), neurotic individuals tend to avoid uncertainty and ambiguity (Lommen et al. 2010). So, we posit that:

H5a: 

There is a positive relationship between neuroticism and perceived risk.

H5b: 

There is a positive relationship between neuroticism and attitude toward stock investment.

3.6. Perceived Risk

Perceived risk is a “subjective feeling about an objective risk surrounding the circumstances based on knowledge, past experiences, and/or intuitive judgment of the individual” (Lu et al. 2015). Perceived risk refers to an individual’s subjective judgment of the risk involved in a behavior (Slovic 2016). Behavior finance research recognizes that psychological traits, such as personality, have an impact on perceived risk, which in turn can influence investment intention (Almansour et al. 2023). Investors with different personality types may have different perceptions of risk, and these perceptions may influence their investment behavior.

Previous studies on the relationship between an investor’s personality and perceived risk found a positive relationship between high levels of extraversion and openness and higher risk tolerance (Pan and Statman 2013), while high levels of neuroticism were negatively related to perceived risk (Oehler et al. 2018).

These results demonstrate the effects of personality on risk perception. In addition, several studies have reported a significant relationship between perceived risk and investment decisions (Chen et al. 2018; Wattanasan et al. 2020; Worawachtanakul et al. 2018). Risk-averse investors tend to have fewer long-term investments, and investors with higher risk expectations tend to reduce their portfolios (Merkle and Weber 2014).

Since the perception of risk in stock investing is a driver of investors’ decision-making (Hoffmann et al. 2015), investors who perceive more risk will most likely reduce their stock investment in the future. Thus, we propose the following hypothesis:

H6: 

There is a negative relationship between perceived risk and stock investment retention.

3.7. Attitude Toward Stock Investment

In addition to perceived risk, investors with different personalities have different attitudes toward stock investments. Attitude is one of the factors that has been shown to influence intention. Attitude is generally described as both positive and negative feelings associated with performing a certain behavior (Ajzen 1980). Attitude toward stock investment refers to investors’ general outlook, which consists of preferences, beliefs (Grinblatt and Keloharju 2001), and perceptions regarding investing in stocks. It reflects not only risk perception but also past experiences, education, and expected returns (Durand et al. 2008). Previous studies have reported that attitude significantly influences intention (Andam and Osman 2019; Mamidala et al. 2023; Rahmani et al. 2023).

Thus, retention in stock investment is not only related to perceived risk but also to investors’ attitudes toward stock investment (Nandan and Saurabh 2016). Because a better attitude toward stock investment should result in greater stock investment retention, we posit the following:

H7: 

There is a positive relationship between attitude toward stock investment and stock investment retention.

4. Research Methodology

4.1. Development of Measurement Instrument

The data collection instrument developed for this study is a modified version that was used in previous studies. The items used to measure the Big Five personality traits were adapted from the study conducted by Svendsen et al. (2013). The items used to measure perceived risk, attitude toward stock investment, and stock investment retention were adapted from a study conducted by Changchit et al. (2023).

Since the subjects in this study were Thai, two researchers proficient in Thai and English converted the survey into Thai. The process was then reversed by two different fluent Thai/English researchers to ensure that both versions had the same meaning and interpretation. Multiple checks were performed to verify and validate the suitability of the items used in the measurement model. The Data Analysis section of this study will detail the tests that were performed.

The survey consisted of two sections. The first section included forty-one items designed to collect data on participants’ personality traits, perceived risk, attitude towards stock investment, and stock investment retention. All items in this section employed a Likert scale ranging from 1 to 5. Please see Appendix A for the survey items.

The second section included six items designed to collect the demographic data. Feedback on the questionnaire was solicited from three professors and two research assistants to verify the accuracy of the survey items. Subsequent adjustments were made to the questionnaire in response to the feedback received.

4.2. Data Collection

Participant data was collected via an online survey. The data were collected in Thailand. This study’s sampling framework includes stock investors in the Thai stock market. The participants were informed of the voluntary nature of their participation in the study, and they were informed that they could withdraw from the study at any time. In addition, the participants were informed of the anonymity of their responses.

The survey was distributed online. Since the Stock Exchange of Thailand, under the Capital Market Development Fund (CMDF), is the supporting organization for this research, we obtained collaborative assistance from The Association of Thai Securities (AS-CO), whose members are all financial companies in Thailand and the Thai Investor Association (TIA) whose members are individual investors. To distribute the survey, we asked ASCO’s financial company members to send the survey link to their clients and ask them to participate voluntarily in the project. In total, 952 participants responded to the online survey. Three screening criteria were used to validate and improve data quality. First, to ensure that subjects thoroughly read the survey questions, survey responses with a completion time of 20 min or less were discarded. Second, two screening questions were designed and integrated into the questionnaire. These two screening questions instructed the subjects to make a specific choice, regardless of their opinions. Responses with incorrect responses were removed. Third, responses containing blank or missing data were excluded. After these screening processes, five hundred and forty-six (546) responses were valid and included for further analysis. The demographics of the participants are shown in

Table 1. Subjects’ demographics (n = 546).

Gender
Male: 326			Female: 201				LGBTQ: 6					N/A: 13
(59.71%)			(36.81%)				(1.10%)					(2.39%)
Age (in years)
18–20: 8	21–30: 67		31–40: 155		41–50: 143		51–60: 146		61–70: 15		71–80: 4	N/A: 8
(1.47%)	(12.27%)		(28.29%)		(26.19%)		(26.47%)		(2.75%)		(0.73%)	(1.47%)
Experience in Stock investment (in years)
<1: 26	1–4: 143		4–7: 195		7–10: 102		10–15: 43		>15: 24			N/A: 13
(4.76%)	(26.19%)		(35.74%)		(18.68%)		(7.88%)		(4.40%)			(2.39%)
Education:
Elementary: 8		Secondary: 11		Associate: 17		Bachelor: 386		Master: 109		Doctor’s: 7		N/A: 8
(1.47%)		(2.01%)		(3.11%)		(70.70%)		(19.96%)		(1.28%)		(1.47%)
Marital Status:
Single: 180			Married: 347				Divorced/Widowed: 11					N/A: 8
(32.97%)			(63.55%)				(2.01%)					(1.47%)
Children
None: 205	1: 102		2: 113		3: 116		>3: 2					N/A: 8
(37.55%)	(18.68%)		(20.70%)		(21.25%)		(0.37%)					(1.47%)

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5. Data Analysis

SPSS and AMOS 26.0 were employed to analyze the data. The data analysis is described in this section.

5.1. Reliability Test

The internal consistency of the survey constructs was assessed with a reliability test. The overall reliability of all the items was 0.868. Reliability was also calculated for each construct, as shown in

Table 2. Reliability test *.

Constructs	Measurement Items	Cronbach’s α
Extraversion	EXT1, EXT4, EXT5	0.802
Openness	OPE2, OPE3, OPE4, OPE5	0.842
Agreeableness	AGR2, AGR3, AGR4	0.798
Conscientiousness	CON2, CON3, CON4, CON5	0.847
Neuroticism	NEU1, NEU2, NEU3, NEU4, NEU5	0.918
Perceived Risk	PCR1, PCR2, PCR4, PCR5	0.860
Attitude toward Stock Investment	ATT3, ATT4, ATT5	0.770
Stock Investment Retention	RET1, RET2, RET3, RET4	0.839

* Ten items with factor loadings <0.7 were removed.

. The reliability statistics all exceeded 0.70, as recommended by Nunnally (1978). These results demonstrate a satisfactory level of internal consistency.

5.2. KMO and Bartlett’s Test

KMO and Bartlett’s tests were conducted to evaluate the degree of unidimensionality of the scales. The sphericity test showed a p-value < 0.001. The sampling adequacy was confirmed with a value of 0.867.

5.3. Common Method Bias

Harman’s single-factor test was used to ensure that the model was free of common method bias. SPSS was used to derive the results by conducting an unrotated, single-factor constraint factor analysis. The highest variance explained by one factor was 24.721%, indicating no common method bias.

5.4. Analysis of Factor Loadings

The factors’ convergent validity was assessed with factor analysis to ensure that each item loaded onto only one factor (see

Table 3. Factor analysis *.

	Components
Constructs	1	2	3	4	5	6	7	8
Extraversion 2	0.099	0.246	0.023	−0.060	0.195	0.728	0.074	0.134
Extraversion 4	0.087	0.177	0.042	0.007	0.221	0.762	0.231	0.062
Extraversion 5	0.013	0.172	−0.016	−0.110	0.142	0.744	0.377	0.055
Openness 2	0.257	0.212	−0.064	−0.062	0.702	0.323	0.102	0.158
Openness 3	0.230	0.226	−0.091	−0.143	0.732	0.355	0.062	0.156
Openness 4	0.227	0.117	−0.045	−0.031	0.763	0.268	0.199	0.122
Openness 5	−0.117	0.092	0.130	0.144	0.720	−0.050	0.215	−0.028
Agreeableness 2	0.149	0.139	0.012	0.044	0.063	0.191	0.784	0.107
Agreeableness 3	0.080	0.230	0.018	−0.086	0.266	0.109	0.752	0.086
Agreeableness 4	0.068	0.166	−0.034	−0.062	0.174	0.241	0.765	−0.002
Conscientiousness 2	0.225	0.746	0.031	−0.065	0.090	0.127	0.110	0.125
Conscientiousness 3	0.164	0.783	0.041	0.064	0.130	0.228	0.168	0.089
Conscientiousness 4	0.094	0.821	−0.029	−0.024	0.136	0.094	0.138	0.070
Conscientiousness 5	0.038	0.783	−0.006	0.056	0.113	0.127	0.122	0.044
Neuroticism 1	0.826	0.059	−0.005	0.127	0.086	−0.003	0.094	−0.039
Neuroticism 2	0.883	0.064	0.006	0.075	0.045	0.019	0.077	0.040
Neuroticism 3	0.870	0.135	0.026	−0.027	0.070	0.025	0.034	0.134
Neuroticism 4	0.848	0.108	−0.008	−0.084	0.114	0.084	0.079	0.118
Neuroticism 5	0.817	0.152	0.008	−0.079	0.057	0.137	0.026	0.138
Perceived Risk 1	−0.114	−0.054	0.783	0.089	0.042	−0.031	−0.034	−0.064
Perceived Risk 2	0.017	0.008	0.883	0.029	0.003	−0.062	0.039	−0.002
Perceived Risk 4	0.133	0.008	0.858	−0.012	−0.017	0.028	0.015	0.009
Perceived Risk 5	−0.008	0.061	0.833	−0.101	−0.033	0.097	−0.021	0.008
Attitude 3	0.232	0.156	−0.051	0.186	0.075	0.148	−0.036	0.733
Attitude 4	0.154	0.110	−0.051	0.215	0.138	0.097	0.105	0.771
Attitude 5	−0.010	0.051	0.032	0.255	0.053	0.017	0.119	0.787
Retention 1	−0.070	−0.084	−0.070	0.825	−0.027	−0.021	−0.053	−0.020
Retention 2	−0.025	−0.020	0.012	0.868	−0.012	−0.075	−0.011	0.151
Retention 3	0.062	0.068	0.028	0.767	0.003	−0.078	0.039	0.246
Retention 4	0.068	0.070	0.049	0.735	0.023	0.034	−0.069	0.292

* Ten items with factor loadings <0.7 were removed.

). The results show that the thirty survey items were loaded onto eight factors that explained 72.449% of the total variance. Ten survey items were removed from the study since they produced factor loadings less than a recommended 0.7 level.

5.5. Multicollinearity Test

A multicollinearity test was conducted to ensure that its harmful effects were not present in the dataset (Cenfetelli and Bassellier 2009). The Variance Inflation Factor (VIF) statistics fell within the 1.006 to 1.777 range. Thus, multicollinearity is not present in the dataset.

5.6. Structural Equation Model (SEM)

SPSS AMOS 26.0 was used to analyze the proposed model. The fit of a SEM model can be assessed with the calculation of seven fit measurements.

Table 4. Fit indices for the models.

Indices of Fit	Value Recommended	Model Value
df/Chi-square	≤3.00	1.069
Goodness of fit	≥0.90	1.000
Adjusted goodness of fit	≥0.80	0.982
Comparative fit index	≥0.93	1.000
Tucker–Lewis index	≥0.90	0.998
Normed fit index	≥0.90	0.999
Root mean square error of approximation	≤0.06	0.011

demonstrates that all fit indices displayed acceptable levels.

5.7. Hypothesis Testing

The causal path properties and standardized path coefficients are shown in Figure 2. The hypothesis testing results are presented in

Table 5. Hypothesis testing.

H#	Hypothesis Testing			Standardized Estimate (β)	Critical Ratio	p-Value
1a	Extraversion	→	Perceived Risk	0.046	0.746	0.456
2a	Openness	→	Perceived Risk	−0.073	−1.317	0.188
3a	Agreeableness	→	Perceived Risk	0.004	0.059	0.953
4a	Conscientiousness	→	Perceived Risk	0.026	0.442	0.658
5a	Neuroticism	→	Perceived Risk	0.014	0.372	0.710
1b	Extraversion	→	Attitude	0.122	4.125	***
2b	Openness	→	Attitude	0.138	2.914	**
3b	Agreeableness	→	Attitude	−0.006	−0.124	0.902
4b	Conscientiousness	→	Attitude	0.122	2.754	*
5b	Neuroticism	→	Attitude	0.075	1.534	0.125
6	Perceived Risk	→	Retention	0.020	0.702	0.482
7	Attitude	→	Retention	0.431	12.072	***

*** indicates significance level < 0.01; ** indicates significance level < 0.05, * indicates significance level < 0.1.

.

6. Results and Discussion

The data posted a lack of support for H1a that proposed a relationship between extraversion and perceived risk (β = 0.046, p = 0.456). This result is consistent with a study conducted by Van et al. (2020) but contradicts the findings of studies by Markiewicz et al. (2020), Shumanov et al. (2022), and Trang and Khuong (2017), who reported a significant relationship between extraversion and perceived risk. The results indicate that extraverted individuals do not exhibit a significant correlation with perceived risk. Those scoring high in extraversion are often seen as more optimistic and may often engage in social circles that discuss stock investment topics, leading to the discounting of the perceived risk present in Thai stock investing. This could explain why extraversion and perceived risk are not significantly correlated. Extraverts could also be more interested in social validation among other stock investors, to the point that they may discount the perceived risk in stock investing.

The results did not provide any evidence of a significant relationship between openness and perceived risk. Thus, H2a is not supported (β = −0.073, p = 0.188). This result agrees with that reported in a study by Harrison et al. (2019), who found an absence of a relationship between openness and perceived risk. However, this finding disagrees with the results of Markiewicz et al. (2020) and Trang and Khuong (2017), who found a significant relationship between openness and perceived risk. This finding could possibly be explained by open individuals’ preference for novelty, which may influence their information processing styles, leading to the discounting of the perceived risk of stock investments.

Similarly, the results do not support hypothesis H3a, which proposes a significant relationship between agreeableness and perceived risk (β = 0.004, p = 0.953). This result agrees with those reported by Harrison et al. (2019) and Trang and Khuong (2017), who reported that the relationship between agreeableness and perceived risk was not significant. This finding disagrees with the results presented by Markiewicz et al. (2020), who found a significant relationship between agreeableness and perceived risk. This finding may be explained by the need for those who score high in agreeableness to value social conformity at the point of discounting perceived risk.

For H4a, conscientiousness and perceived risk (β = 0.026, p = 0.658) also did not exhibit a significant relationship. This result agrees with the findings reported by Trang and Khuong (2017). This finding disagrees with the results presented in a study by Markiewicz et al. (2020), which found a significant relationship between conscientiousness and perceived risk. This finding could be explained by the time horizon held by the conscientious individual. Conscientiousness tends to have a longer-range outlook and may hold stock investments for longer periods, thus smoothing out the perceived risk involved in shorter-term stock investments.

The results did not provide evidence supporting hypothesis H5a, which proposes a significant relationship between neuroticism and perceived risk (β = 0.014, p = 0.710). This result agrees with those reported in studies by Harrison et al. (2019) and Trang and Khuong (2017)—both studies reported that the relationship between neuroticism and perceived risk was not significant at the p-value level of less than 0.05. This finding disagrees with the results presented in a study by Huang et al. (2014), which demonstrated a significant relationship between neuroticism and perceived risk. This can be explained by the higher volatility in the Thai stock market. This higher level of market volatility may lead to coping mechanisms that help investors adapt to market fluctuations, thereby diminishing the impact of neurotic tendencies on risk perception.

These results do not align with those of previous studies (Aren and Nayman Hamamci 2020; Pinjisakikool 2017) that documented an association between personality traits and perceived risk. The findings from the study suggest that participants classified as extraverted, open, agreeable, conscientious, or neurotic did not place a significant amount of importance on perceived risk. These findings could be related to higher volatility in the Thai stock market. Because of this higher volatility, investors in the Thai stock market are willing to place less importance on perceived risks when there is a chance for an increased reward.

The results support hypothesis H1b (β = 0.122, p < 0.001), which proposes a relationship between extraversion and attitude toward stock investment. This finding suggests that extraverted investors tend to have a favorable positive attitude toward investing in the stock market. This result agrees with that reported by Bonfanti et al. (2023). However, this finding disagrees with the results presented in a study by Robinson (2018) that reported no significant relationship between extraversion and attitude. The optimism of extraverts could explain the significant relationship between extraversion and attitudes toward stock investment.

For hypothesis H2b, the results support (β = 0.138, p < 0.005) the relationship between the personality trait of openness and attitude toward stock investment. This finding agrees with the findings posted in a study by Denden et al. (2022) that found a significant relationship between openness and attitude. However, this finding disagrees with the results presented in a study by Robinson (2018), which reported no significant relationship between openness and attitude. Investing in stocks may meet the novelty requirement of those high in openness. Meeting this requirement could contribute to a favorable attitude toward stock investing.

For hypothesis H3b, the results do not provide evidence of a relationship between agreeableness and attitude toward stock investment (β = −0.006, p = 0.902). This finding agrees with the results presented by Robinson (2018), who reported no significant relationship between agreeableness and attitude. However, this result is contrary to that reported by Devaraj et al. (2008). The need for social harmony among those who are agreeable may be deemed more important than the financial considerations that come with maintaining a favorable attitude toward stock investing.

The results revealed support for hypothesis H4b (β = 0.122, p-value < 0.01), suggesting that individuals scoring high in conscientiousness show a favorable attitude toward investing in the Thai stock market. This finding is consistent with those reported by Park and Woo (2022). Conscientious people tend to organize their surroundings (Costa and McCrae 1992). In the case of the stock market, well-planned investors who are confident in their due diligence will study and research before investing their money in the stock market, leading to a good attitude toward stock investment. Nevertheless, this finding disagrees with the results presented in a study by Robinson (2018), which reported no significant relationship between conscientiousness and attitude.

For hypothesis H5b, the results do not support the presence of a significant relationship between neuroticism and attitude toward stock investment (β = 0.075, p = 0.125). This finding is consistent with those reported by Park and Woo (2022). This result indicates that individuals with higher neuroticism do not exhibit a correlation with their attitudes toward stock investment. This contradicts the hypothesis that highly emotional individuals exhibit a negative correlation with attitudes toward risky investments. This finding disagrees with the results presented in a study by Robinson (2018), who reported a significant relationship between neuroticism and attitude.

In summary, investors classified according to openness, extraversion, and conscientiousness exhibit a significant relationship with their attitudes toward stock investing in the Thai market. At the same time, investors with the personality traits of agreeableness and neuroticism do not demonstrate a significant relationship with attitudes toward stock investing.

The results do not support H6, which proposes a relationship between perceived risk and retention in stock investments (β = 0.020, p = 0.482). This result is in line with the results of a study by Changchit et al. (2023), who reported that the relationship between perceived risk and intention was not significant at a p-value of less than 0.05. This finding contradicts the findings in studies by Bonfanti et al. (2023), Loiacono (2015), and Mou et al. (2020), which all reported a significant relationship between perceived risk and intention. A possible explanation for this finding could be the psychological factors of herding behavior. Thai investors may follow the crowd in terms of investing versus performing their own assessments of the risks that may be involved in investing in stocks. Other psychological factors, such as overconfidence and optimism bias, could also explain the lack of a significant relationship between perceived risk and stock investment retention.

The results support H7. which proposes a relationship between attitude toward stock investment and retention in stock investment (β = 0.431, p < 0.001). This result agrees with those reported in studies by Bonfanti et al. (2023) and Hsu and Lee (2023)—both of which found a significant relationship between attitude and continued usage intention. However, this result contradicts the results reported by Gholami et al. (2021), which did not support the presence of a significant relationship between attitude and intention. The results show that stock investment retention is correlated with attitudes toward stock investment. A possible explanation for this could be that Thai investors have confidence in the Thai stock market and in the regulatory systems in place to protect them. This market and regulatory confidence could contribute to continuing stock investments in the Thai stock market.

7. Study Implications

7.1. Theoretical Implications

The results of this study offer several theoretical implications for attitudes toward stock investing and investment retention. First, the findings reveal no relationship between perceived risk and the Big Five personality traits, challenging the general perception that personality traits correlate with risk perception (Durand et al. 2013; Pan and Statman 2013).

Extraverts, often concerned with social standing and prone to risk-taking (Jochemczyk et al. 2017), and individuals high in openness, who are adventurous (Kowert and Hermann 1997), were expected to have a negative relationship with perceived risk. However, the data did not support this. Established stock investors may already accept high uncertainty, making perceived risk less relevant. Conscientious individuals who rely on due diligence and agreeable individuals who trust others were also expected to have a negative relationship with perceived risk, but this was not supported either. Neurotic individuals, prone to distrust and emotional instability, were expected to perceive higher risk, but the data did not support this. Neurotic individuals may view all of life as risky, diminishing the importance of specific perceived risks.

Overall, the perceived risk appears independent of the Big Five personality traits among Thai stock investors. Further research is needed to identify other personal factors impacting perceived risk.

Second, the study supports the proposition that extraversion, openness, and conscientiousness significantly influence Thai stock investors’ behavioral attitudes. Extraverts have positive attitudes toward socially acceptable behaviors, individuals high in openness are willing to explore, and conscientious individuals trust their analytical abilities. However, the data did not support significant relationships between attitude and agreeableness or neuroticism. Agreeable individuals did not show strong attitudes, and neurotic individuals, expecting negative outcomes, did not place high importance on attitude.

Third, the study reveals that attitudes toward stock investing are significantly related to investment retention. Positive attitudes help investors withstand market volatility and continue investing, underscoring the importance of psychological factors in stock investment.

Finally, the study shows that Thai investors may not consider perceived risk when making investment retention decisions. Stock investing may differ from risk in other contexts, explaining the lack of a significant relationship between perceived risk and stock retention. Further research is needed to explore other individual differences affecting investment retention.

This study provides empirical evidence on the impact of personality traits on stock investment retention through perceived risk and attitude, contributing to the financial behavioral literature.

7.2. Practical Implications

This study’s results highlight the importance of considering personality traits for stock market advisors and financial institutions aiming to retain clients or investors. The finding that personality traits show no significant relationship with perceived risk, contrary to prior beliefs, suggests that practitioners should look beyond personality traits when assessing investors’ risk tolerance. Factors such as demographics, wealth, and other psychological aspects warrant further investigation.

Financial companies with limited resources should target their marketing efforts towards investors high in extraversion, openness, and conscientiousness, as they exhibit a positive attitude toward stock investing. Tailoring marketing campaigns to these traits, such as interactive campaigns for extraverts and detailed, goal-oriented messages for conscientious individuals, could be more effective, especially if they are targeted to media that appeal to individuals who are high in extraversion, openness, and conscientiousness. Advisors and companies should avoid assuming a link between personality type and perceived risk.

Overall, individual personality differences influence stock investment retention. Advisors should customize their advice based on personality types, focusing on investment attitudes to promote retention. Emphasizing non-risk-related factors while acknowledging the inherent risk in stock investments could help retain existing clients and attract new ones across diverse personality profiles.

8. Conclusions, Limitations, and Future Research Directions

This study presents a comprehensive analysis of the relationships among personality traits, perceived risk, stock investment attitude, and stock investment retention in the Thai stock market. As individual investors dominate the Thai market, understanding investors’ personality traits contributes to behavioral research and benefits market participants. The research model examines the dynamic impact of the Big Five personality traits on overall risk perception, attitude toward stock investment, and investment retention, offering insights for financial practitioners, advisors, and investors.

The findings indicate that stock investment retention in the Thai market is driven by attitude toward stock investment. Investors with a positive attitude are more likely to continue investing. This attitude is influenced by certain personality traits, specifically extraversion, openness, and conscientiousness. However, perceived risk does not seem to be influenced by the Big Five personality traits and does not play a significant role in the decision to continue investing.

Contrary to general findings (Aren and Nayman Hamamci 2020; Pinjisakikool 2017), this study did not find a significant relationship between personality traits and perceived risk among Thai stock market investors. This suggests that investors in this market may be inclined to take risks regardless of their personality traits, making the linkage between personality and risk perception less evident. It is possible that risk perception in stock investments differs from other contexts, and major driving factors other than personality traits may influence risk perception in the Thai stock market.

Consistent with prior research (Denden et al. 2022; Manocha et al. 2023), the study shows that attitude toward stock investment is influenced by personality traits such as openness, extraversion, and conscientiousness, while agreeableness and neuroticism do not significantly affect attitude.

In conclusion, while personality traits play a role in shaping investors’ attitudes toward stock investment, they may not directly explain risk perceptions in the stock market. The perceived risk among investors in stock investing may be influenced by other factors such as financial literacy, cultural differences, and financial constraints. Future studies could address sample limitations by employing diverse sampling techniques and exploring national and cultural differences in risk perception and investment behavior between collectivist and individualistic societies. Comparative studies between developed and developing markets could also provide valuable insights into stock investment retention.