Behavioral Biases on Investment Decision: A Case Study in Indonesia

• 발행기관: 한국유통과학회
• 저자명: Kartini KARTINI Katiya NAHDA
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.3, 1231~1240쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.03.30

영문 초록

A shift in perspective from standard finance to behavioral finance has taken place in the past two decades that explains how cognition and emotions are associated with financial decision making. This study aims to investigate the influence of various psychological factors on investment decision-making. The psychological factors that are investigated are differentiated into two aspects, cognitive and emotional aspects. From the cognitive aspect, we examine the influence of anchoring, representativeness, loss aversion, overconfidence, and optimism biases on investor decisions. Meanwhile, from the emotional aspect, the influence of herding behavior on investment decisions is analyzed. A quantitative approach is used based on a survey method and a snowball sampling that result in 165 questionnaires from individual investors in Yogyakarta. Further, we use the One-Sample t-test in testing all hypotheses. The research findings show that all of the variables, anchoring bias, representativeness bias, loss aversion bias, overconfidence bias, optimism bias, and herding behavior have a significant effect on investment decisions. This result emphasizes the influence of behavioral factors on investor’s decisions. It contributes to the existing literature in understanding the dynamics of investor’s behaviors and enhance the ability of investors in making more informed decision by reducing all potential biases.

목차

1. Introduction

2. Literature Review

3. Hypotheses Development

4. Methodology

5. Results and Discussion

6. Conclusion

References

키워드

Behavioral Finance Investment Decisions Emotional Bias Cognitive Bias