The Effect of Behavioral Factors in Investor’s Investment Decision  

Oleh:

Noah, Samuel ; Lingga, Margaretha Tiur Pasuria

Jenis: Article from Proceeding
Dalam koleksi: International Conference on Global Innovation and Trends in Economy INCOGITE 2020 Vol 3 Nov 2020, page 398-413.
Topik: Behavioral Finance; Heuristic Theory; Prospect Theory; Herding Behavior; Market factors; Investor Psychology
Fulltext: 25_The Effect Of Behavioral Factors In Investor’s Investment Decision.pdf (491.57KB)

Isi artikel

Behavioral finance theories are based on psychology, it is an attempt to understand how emotions and cognitive errors influence individual investor’s behaviors. This study investigated the role of behavioral finance towards investor psychology during their investment decision-making at the Indonesian Stock Exchange. To collect the data needed, a descriptive survey design was chosen. The questionnaires designed have both open-ended and closed-ended questions which use 5-point Likert measurements. Cronbach's Alpha Test was used to test the internal consistency and reliability. Factor analysis and descriptive analysis was used to analyze the data. The study established that behavioral factors such as availability bias, overconfidence, loss aversion, mental accounting and market factors affected the decisions of the investors operating at the IDX. However, herding behavior shows moderately low results within the investors of IDX.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali