The Relationship Between Big Five Personality Traits And Risk Preference

In every field,the risk preference of decision-makers directly determines the effectiveness and safety of risk management.However,risk preference is not only restricted by external factors but also influenced by personal factors such as education level,gender,income and other fundamental factors.Thus,as the most essential feature of individuals,personality also has an effect on risk preference.In addition,different from other researches and based on the diversified risk decision-making,this paper will measure individuals' risk preference in specific fields(namely,Recreational,Financial,Health and Safety,Social,Ethical field).Therefore,this paper will study the correlation between risk preference in specific fields and The Big Five personality traits.Based on the prospect theory,this paper adds the variable of personality trait to explain how the personality traits will ultimately affect individual risk preference through attention bias.Then we randomly distribute the questionnaires to students who studied in Zhejiang University.Finally,we collect 446 valid questionnaires.This paper tests the reliability and validity of the questionnaire based on SPSS and AMOS.After that,this paper uses the correlation analysis and linear regression analysis to verify the proposed hypothesis.The results are as follows:The increase of Openness scores will significantly enhance the individual's risk preference in social,entertainment,financial,health and safety fields.The increase of Extraversion scores will significantly enhance the individual's risk preference in financial and ethical fields.The increase of Conscientiousness scores will significantly reduce the individual's risk preference in entertainment,ethical,health and safety fields;The increase of Agreeableness scores will significantly reduce the individual's risk preference in the ethical field;The increase of Neuroticism scores will significantly enhance the individual's risk preference in ethical,health and safety fields.At last,the results of this paper also validate the views and findings in some researches.However,there are also different conclusions from some of the researches.The reasons for such phenomenon still need researchers' continuing study in this field.