Social Media Presence and Stock Market Volatility: Investigating the Relationship Between Personality Characteristics and Investor Behavior of ASE

This research paper delves into the intricate dynamics between the personality characteristics of social media users and investor behaviour within the Athens Stock Exchange (ASE). In an era where information dissemination occurs at unprecedented speeds through platforms like Twitter, Reddit, and financial forums, the study aims to unravel the impact of personality characteristics on investor sentiment and subsequent stock market volatility. By incorporating the renowned Big Five personality characteristics, including openness, conscientiousness, extraversion, agreeableness, and neuroticism, the research examines how individual personality profiles shape investment decisions. The unique economic and cultural context of the ASE further enriches the investigation, offering insights into the region-specific nuances of investor behaviour. The study applied a quantitative analysis using structural equation modeling and concluded that all personality characteristics of the Big Five model had a positive impact on investor behaviour. The findings not only contribute to the academic discourse on investor behaviour but also offer practical implications for investors, financial institutions, and regulators operating within the Southeastern European market.