Authors : Tayebe Adibnezhad, Moslem Moradzadeh and Habibollah Salarzehi
Abstract: One of the main factors in financial decisions of stockholders is perceptual illusion which affects their decision-making when trading stocks. The purpose of this study is to investigate the common perceptual illusion among stockholders and their relation to the stockholder’ characters. To conduct this study, 200 stockholders from regional stock exchange of the selected cities were selected randomly because the population was not limited and the required data were collected through questionnaires. The research method was descriptive-correlational. Pearson’s product-moment correlation coefficient and linear regression were used as the statistical tests and the data were analyzed through SPSS Software, Version 18. The results of pearson’s correlation coefficient between the research variables shows the following results: a positive relationship between conscientiousness with overconfidence and self-attribution; a negative relationship between agreeableness and cognitive-dissonance; a positive relationship between neuroticism and cognitive-dissonance; a positive relationship between openness to experience with over-confidence, conservatism, self-attribution, availability, cognitive-dissonance, herd behavior and total scores of perceptual illusion. The results of linear regression test showed that conscientiousness could explain 9.5% of the variance for overconfidence and 9% of the variance in self-attribution. The extraversion variable could not predict any of the subscales of perceptual illusion and its total scores. The results also showed that neuroticism and agreeableness could explain 12.5 and 12.9% of the variance in consistency respectively. Finally, the linear regression results showed that openness to experience could explain 17.3% of the variance in overconfidence, 7.8% of the variance in conservatism, 9.5% of the variance in self-attribution, 16.2% of the variance in availability, 10.7% of the variance in consistency, 12.6% of the variance in herd behavior, 13.2% of the variance in unison and 87.3% of the total scores of the perceptual illusion.
Tayebe Adibnezhad, Moslem Moradzadeh and Habibollah Salarzehi, 2017. The Relationship Between Personality Characteristics and Perceptual Illusions in Regional Stock Exchange in Selected Cities (Zahedan, Mashhad and Zanjan). International Business Management, 11: 61-67.