Herd Behavior in Millennial Stock Investors in Indonesia: The Concept of Bandarmology

DOI

10.2991/978-2-38476-090-9_62How to use a DOI?

Keywords

Herd Behavior; Perceived Risk; Social Influence; Source Credibility; Emotional Response; Behavioral Intention

Abstract

Bandarmology analysis is a new paradigm in stock investment. This concept has similarities with herd behavior which has been discussed in several works of literature for a long time. Some stock investors, especially the millennial generation in Indonesia, have almost no good financial literacy. The phenomenon shows that they are brave enough to invest in stocks just by following the actions of stock influencers. There is very little literature discussing this phenomenon. This study emphasizes the emotional response of stock investors associated with the information provided by stock influencers. Several variables are arranged in this research model to determine predictors that encourage investment interest. This study takes a sample of 100 respondents who follow specific stock influencers. The collected data was analyzed using Smart PLS software. The study's results stated that all hypotheses proposed in this study were accepted. The author has proved that emotional response is a strong predictor that can change the behavior of stock investors. The author also proves that perceived risk, social influence, and source credibility are antecedents that impact emotional response. However, this research also still has limitations. Respondents were only taken from a stock influencer (kaptensaham707) and considered unable to generalize the research findings. This study also ignores the nature of stock investors’ positive or negative emotions, which will impact behavior differently.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Wira Bharata
AU  - Finnah Fourqoniah
AU  - Romlah Novianti
PY  - 2023
DA  - 2023/08/01
TI  - Herd Behavior in Millennial Stock Investors in Indonesia: The Concept of Bandarmology
BT  - Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
PB  - Atlantis Press
SP  - 781
EP  - 795
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-090-9_62
DO  - 10.2991/978-2-38476-090-9_62
ID  - Bharata2023
ER  -