Impact of Personality Traits and Demographic Factors on Risk Attitude

Abstract

Numerous studies recently have explored how personality traits, risk attitudes and gender interact, with ambiguous results for different environmental and cultural contexts. To contribute to the existing literature, this study tests the relationship of individual risk attitudes with personality traits, and other variables, in the Czech Republic using the validated Czech version of the Big Five Inventory instrument. The results of an ordinal logistic regression show that risk aversion relates positively to neuroticism and negatively to extraversion and openness to experience. Furthermore, compared with women, men tend to be less risk averse. This study contributes to a better understanding of the influence of personality traits and demographic factors on risk attitude in the context of a culture with high uncertainty avoidance.