PENGARUH HERD BEHAVIOR DAN HEURISTIC (REPRESENTATIVENESS, ANCHORING, OVERCONFIDENCE, DAN AVAILABILITY BIAS) TERHADAP INVESTMENT DECISION INVESTOR MAHASISWA DI KOTA MALANG
Keywords:
Herd behavior, representativeness, anchoring, overconfidence, availability bias, investment decision
Abstract
The capital market is an important part of an economy and can be a means for people to earn profits by investing. The Indonesian capital market is dominated by individual investors and the second-largest occupation is students. Decision making by investors is very vulnerable to errors caused by psychological factors. These factors can be biases that change the way investors analyze information. This study aims to examine and analyze the effect of psychological factors on herd behavior and heuristics (representativeness, anchoring, overconfidence, and availability bias) on the investment decisions of student investors in Malang City. This research was conducted by collecting primary data using a survey of 51 respondents of student investors in Malang City. The data was analyzed using validity and reliability tests, classical assumption test, multiple linear regression, f-test, t-test, and coefficients of determination. The results of this study found that herd behavior and availability bias had a negative effect on investment decisions. This study also found that representativeness, anchoring, and overconfidence have a positive effect on investment decisions.
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Yi, H. & Xiugang, Y., 2019. Manager's Overconfidence, Risk Preference, Herd Behavior and Non-Efficient Investment. Independent Journal of Management & Production.
Abdulahi, A., 2014. Effect of Behavioral Biases on Investments Decisions of Individual Investors in Kenya. University of Nairobi.
Adielyani, D. & Mawardi, W., 2020. The Influence of Overconfidence, Herding Behavior, and Risk Tolerance on Stock Investment Decisions: The Empirical Study of Millennial Investors in Semarang. Jurnal Maksipreneur, pp. 89-101.
Adielyani, D. & Mawardi, W., 2020. The Influence of Overconfidence, Herding Behavior, and Risk Tolerance on Stock Investment Decisions: The Empirical Study of Millennial Investors in Semarang. Jurnal Maksipreneur, pp. 89-101.
Aldamiz-EchevarrÃa, C., IdÃgoras, I. & Vicente-Molina, M.-A., 2017. Gender issues related to choosing the successor in the family business. European Journal of Family Business, Volume 7, pp. 54-64.
Alquraan, T., Alqisie, A. & Al Shorafa, A., 2016. Do Behavioral Finance Factors Influence Stock Investment Decisions of Individual Investors? (Evidence from Saudi Stock Market). American Journal of Contemporary Research, pp. 159-169.
Aprillianto, B., Wulandari, N. & Kurrohman, T., 2014. Perilaku Investor Saham Individual dalam Pengambilan Keputusan Investasi: Studi Hermeneutika-Kritis. e-Journal Ekonomi dan Bisnis dan Akuntansi, pp. 16-31.
Asadov, A. I., 2021. Financial Scams Through Ponzi Schemes: The Case of CIS Countries. Pennsylvania: IGI Global.
Badan Pusat Statistik, 2019. Jumlah Perguruan Tinggi, Mahasiswa, dan Tenaga Edukatif (Negeri dan Swasta) di Bawah Kementrian Riset, Teknologi dan Pendidikan Menurut Kabupaten/Kota di Jawa Timur, 2018/2019. [Online]
Available at: https://jatim.bps.go.id/statictable/2019/10/09/1658/jumlah-perguruan-tinggi-mahasiswa-dan-tenaga-edukatif-negeri-dan-swasta-di-bawah-kementrian-riset-teknologi-dan-pendidikan-menurut-kabupaten-kota-di-jawa-timur-2018-2019-.html
Budiarto, A. & Susansi, 2017. Pengaruh Financial Literacy, Overconfidence, Regret Aversion Bias, dan Risk Tolerance Terhadap Keputusan Investasi. Jurnal Ilmu Manajemen, pp. 1-9.
Bursa Efek Indonesia, 2021. BEI Lampaui Dua Kali Lipat Capaian Target Pertumbuhan Investor Baru pada 2020. [Online]
Available at: https://www.idx.co.id/berita/press-release-detail/?emitenCode=1457
Bursa Efek Indonesia, n.d. Pengantar Pasar Modal. [Online]
Available at: https://www.idx.co.id/investor/pengantar-pasar-modal/
Chen, G. M., Kim, K., Nofsinger, J. R. & Rui, O. M., 2007. Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors.. Journal of Behavioral Decision Making, pp. 425-451.
Dangol, J. & Manandhar, R., 2020. Impact of Heuristics on Investment Decisions: The Moderating Role of Locus of Control. Journal of Business and Social Sciences, pp. 1-14.
DeBondt, W. F. M. & Thaler, R. H., 1995. Financial Decision-Making in Markets and Firms: A Behavioral Perspective. Handbooks in Operations Research and Management Science, pp. 385-410.
Dewan, P. & Dharni, K., 2019. Herding Behaviour in Investment Decision Making: A Review. Journal of Economics, Management and Trade, pp. 1-12.
Filip, A., Pochea, M. & Pece, A., 2015. The Herding Behavior of Investors in the CEE Stock Market. Procedia Economics and Finance, pp. 307-315.
Ghozali, I., 2016. Aplikasi Analisis Multivariete dengan Program IBM SPSS 23. Semarang: Badan Penerbit Universitas Diponegoro.
Gill, S., Khurshid, M. K., Mahmood, S. & Ali, A., 2018. Factors Effecting Investment Decision Making Behavior: The Mediating Role of Information Searches. European Online Journal of Natural and Social Sciences, pp. 758-767.
Grinblatt, M. & Keloharju, M., 2001. What makes investor trade?. Journal of Finance, pp. 589-616.
Herlina, et al., 2020. The Herding and Overconfidence Effect on the Decision of Individuals to Invest Stocks. Journal of Economics and Businessq.
Indonesia Stock Exchange, 2020. IDX Statistics 2020, Jakarta: Indonesia Stock Exchange.
Irshad, S., Badshah, W. & Hakam, U., 2016. Effect of representativeness bias on investment decision making. Management and Administrative Sciences Review, pp. 26-30.
Ishfaq, M. & Anjum, N., 2015. Effect of Anchoring Bias on Risky Investment Decision. Evidence from Pakistan Equity Market. Journal of Poverty, Investment and Development.
Kappal, J. M. & Rastogi, S., 2020. Investment behaviour of women entreprenuers. Qualitative Research in Financial Markets.
Karina, D., 2021. Protes Ulah Pompom Saham, Ribuan Orang Tandatangani Petisi. [Online]
Available at: https://www.kompas.tv/article/143626/protes-ulah-pompom-saham-ribuan-orang-tandatangani-petisi
Kartini, K. & Nugraha, N. F., 2015. Pengaruh Illusions of Control, Overconfidence, dan Emotion terhadap Pengambilan Keputusan Investasi di Yogyakarta. Ajie, pp. 114-122.
Khilar, R. P. & Singh, S., 2020. Role of Emotional Bias on Investment Decision from Behavioral Finance Perspective. International Journal of Scientific & Technology Research.
Konteos, G., Konstantinidis, A. & Spinthiropoulos, K., 2018. Representativeness and Investment Decision Making. Journal of Business and Management.
Kunte, S., 2015. The Herding Mentality: Behavioral Finance and Investor Biases. [Online]
Available at: https://blogs.cfainstitute.org/investor/2015/08/06/the-herding-mentality-behavioral-finance-and-investor-biases/
Kustodian Sentral Efek Indonesia, 2021. Informasi Pasar. [Online]
Available at: https://akses.ksei.co.id/pusatinformasi
Lee, Y. J. et al., 2011. The Investment Behavior, Decision Factors and Their Effects Toward Investment Performance in the Taiwan Stock Market.
Luong, L. P. & Ha, D. T. T., 2011. Behavioral Factors Influencing Individual Investors' Decision-Making and Performance, Umea: Umea School of Business.
Lutje, T., 2009. To be good or to be better: asset managers' attitudes towards herding. Applied Financial Economics, pp. 825-839.
M., R. D., 2020. Influence Of Heuristic Factors On Investment Decision Making: An Empirical Study Based On Retail Equity Investors In India. International Journal of Advanced Science and Technology, pp. 13441-13449.
Merli, M. & Roger, T., 2021. What drives the herding behavior of individual investors?. SSRN.
Ngoc, L. T. B., 2014. Behavior Pattern of Individual Investors in Stock Market. International Journal of Business and Management.
Nurdinda, W., Muslihat, A. & Putra, R. A. K., 2020. Pengaruh Regret Aversion Bias dan Risk Tolerance Bagi Investor Muda Jawa Barat terhadap Keputusan Investasi. AKUNSIKA.
Pompian, M., 2018. How the Availability Bias Can Derail Investing Outcomes. [Online]
Available at: https://www.morningstar.com/articles/843819/how-the-availability-bias-can-derail-investing-outcomes
Pradhana, R. W., 2018. Pengaruh Financial Literacy, Cognitive Bias, dan Emotional Bias Terhadap Keputusan Investasi. Jurnal Ilmu Manajemen, pp. 108-117.
Qasim, M., Hussain, R. Y., Mehbook, I. & Arshad, M., 2018. Impact of Herding Behavior and Overconfidence Bias on Investors' Decision-Making in Pakistan. Growing Science.
Rekha, M. D., 2020. Influence Of Heuristic Factors On Investment Decision Making: An Empirical Study Based On Retail Equity Investors In India. International Journal of Advanced Science and Technology, pp. 13441-13449.
Rekha, M. D., 2020. Influence Of Heuristic Factors On Investment Decision Making: An Empirical Study Based On Retail Equity Investors In India. International Journal of Advanced Science and Technology, pp. 13441-13449.
Saeed, K., 2019. Impact of heuristic biases on investment decision locus of control playing a moderating role. SSRN.
Sarin, A. B. & Chowdhury, D. J. K., 2017. An Understanding of Role of Heuristic on Investment Decisions. International Review of Business and Finance, pp. 57-61.
Shekhar, D. B. & R.A, M. P., 2015. Impact of Herd Behavior on Investment Decision of Investors and Stock Market Price Volatility - An Empirical Study. UNNAYAN.
Shiller, R. J., 1999. Human Behavior and The Efficiency of The Financial System. Handbook of Macroeconomics.
Wamae, J. N., 2013. Behavioral Factors Influencing Investment Decision in Stockmarket: A survey of investment banks in Kenya.. Internatinal Journal of Economics and Finance.
Waweru, N. M., Munyoki, E. & Uliana, E., 2008. The effects of behavioral factors in investment decision-making: a survey of institutional investors operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Markets, pp. 24-41.
Wibowo, A. R., 2020. Pengaruh Pengetahuan, Pendapatan, dan Kemajuan Teknologi Terhadap Minat Investasi Masyarakat di Pasar Modal Syariah, Malang: s.n.
Xing, Y., 2020. The Impact of Behavioral Bias on Individual Investors and Corporatoin Capital Structure. Academic Journal of Business & Management.
Yi, H. & Xiugang, Y., 2019. Manager's Overconfidence, Risk Preference, Herd Behavior and Non-Efficient Investment. Independent Journal of Management & Production.
Published
2022-04-11
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
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