Are type B investors efficacious? Exploring role of personality in ambidextrous investment decision-making

Abstract

Despite an intuitive appeal regarding association between personality and investment efficacy, there is a dearth of empirical support for the effects of theoretically meaningful personality difference on intuitive and analytical ability, which further explains investment efficacy. The current study attempts to explore this relationship through survey of 222 active investors in India. The results provide evidence that type B investors have superior intuitive ability, analytical ability and investment efficacy. The study is unique in exploring role of personality in ambidextrous decision-making framework, where rationality and intuition iteratively operates in parallel, yet synchronous fashion. The study documents that type B investors are more efficacious than type A investors.