PERSONALITY, FINANCIAL LITERACY, AND FINANCIAL ADVICE-SEEKING IN THE MIDST OF A PANDEMIC

Abstract

This research endeavours to enhance comprehension regarding the financial advice-seeking behaviours of stock investors, with a particular emphasis on the tumultuous context of the COVID-19 pandemic. The principal aim is to investigate the influence of personality traits and financial literacy on investors' inclination towards seeking professional financial guidance amidst market instability. A comprehensive survey was conducted among 255 Vietnamese stock investors, all of whom possessed trading experience within the Vietnamese market. Methodological approaches centred on examining the interplay between investors' personality traits, financial literacy, and their propensity to solicit professional financial advice, while incorporating psychological factors such as regret, trust, and risk tolerance. Findings demonstrate a significant correlation between personality traits, financial literacy, and the inclination to rely on professional financial advisors for stock investment decisions. This influence persists notably, even after controlling for various psychological factors. Intriguingly, while personality traits consistently impact the reliance on professional advice, the effect of financial literacy exhibits a tendency to diminish over time. This study enriches the domain by elucidating the nuanced roles of personality traits and financial literacy in financial decision-making amidst crises, offering fresh insights into their interaction with psychological dimensions. The research holds implications for policymakers and financial advisors in their efforts to support retail investors, particularly within the context of an unprecedented global health crisis. Its distinctive focus on a specific investor cohort during such challenging times illuminates unique behavioural finance dynamics.