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Abstract
The study aims to examine the impact of the personality traits of an investor during investment
decisions and their overconfidence bias in the least developing country (Nepalese). The study
investigates the association between the personality factors of investors and their overconfidence bias
during investment decisions. The population used for studying is Nepal. The data were collected
through a questionnaire with a five-point scale. 384 questionnaires, the researcher collected 343
questionnaires and 41 questionnaires were not returned. So, the response rate of the study is 89
percent. The researcher has used simple percentages, mean, correlation, standard deviation and
regression for data analysis. This study examined the influence of personality traits on the
overconfidence bias and discovered a positive correlation between individual investors'
overconfidence bias and the big five personality traits: extroversion, agreeableness,
conscientiousness, openness to experience, and neuroticism. It results that personality traits
significantly impact overconfidence bias and that extroversion positively affects individual investors'
overconfidence bias in the Nepal stock market. The study's findings indicate a positive correlation
between the five personality traits and the overconfidence bias exhibited by investors. Demonstrates
a positive correlation between the big five personality traits “extroversion, agreeableness,
conscientiousness, openness to experience, and neuroticism” and the overconfidence bias. These
findings suggest a positive relationship between increases in the Big Five personality traits and the
corresponding increase in the overconfidence bias of individual investors.
Keywords: Personality Traits, Overconfidence Bias, Investors, Self-Administered Questionnaire,
Likert Scale