This paper investigates the relationship between financial risk-taking and individual personality among Chinese adolescents in an asset allocation experiment setting. We show that financial risk taking is significantly positively correlated with broad level Big Five personality factors such as openness to experience and negatively correlated with conscientiousness in both gain and loss domains. Immoderation was the best predictor for financial risk taking among all thirty Big Five model facets. This study provides implications for helping investors, financial organisations and government institutions be more aware of psychological factors that lead to financial risk-taking behaviour in the volatile Chinese stock market.
|Published - 30 May 2016