Financial Literacy and Behavioral Bias of Individual Investors: Empirical Research in Indonesia

Andhi Wijayanto; Siti Ridloah; Kris Brantas Abiprayu; Made Virma Permana; Ascariena Rafinda

doi:10.2991/978-2-494069-35-0_42

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Financial Literacy and Behavioral Bias of Individual Investors: Empirical Research in Indonesia

Authors

Andhi Wijayanto¹^{, *}, Siti Ridloah¹, Kris Brantas Abiprayu¹, Made Virma Permana¹, Ascariena Rafinda¹

¹Department of Management, Universitas Negeri Semarang, Semarang, Indonesia

^*Corresponding author. Email: andhi.wijayanto@mail.unnes.ac.id

Corresponding Author

Andhi Wijayanto

Available Online 17 January 2023.

DOI: 10.2991/978-2-494069-35-0_42 How to use a DOI?
Keywords: Demographic Characteristics; Financial Literacy; Behavioural Biases; Investment Decisions; Individual Investors
Abstract: Financial literacy and behavioural biases are critical factors that influence investment-decision making individual investors. This study aims to identify financial literacy relationships and behavioural biases (overconfidence, representativeness, and illusion of control) which can lead to irrational behaviour in investment decision making. The population in this research data is individual investors who are on Java. Based on the purposive sampling method, the sample was 83 respondents through a questionnaire. The data obtained, passed the validity test, reliability test, classical assumption test, and multiple regression analysis to test the hypothesis. Hypothesis testing concludes that financial literacy has a negative effect on behavioural biases, meaning increasing financial literacy, so individual investors are increasingly objective in making investment decisions, and will reduce behavioural biases.
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.

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Volume Title: Proceedings of the Unima International Conference on Social Sciences and Humanities (UNICSSH 2022)
Series: Advances in Social Science, Education and Humanities Research
Publication Date: 17 January 2023
ISBN: 978-2-494069-35-0
ISSN: 2352-5398
DOI: 10.2991/978-2-494069-35-0_42 How to use a DOI?
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.

Cite this article

ris enw bib

TY  - CONF
AU  - Andhi Wijayanto
AU  - Siti Ridloah
AU  - Kris Brantas Abiprayu
AU  - Made Virma Permana
AU  - Ascariena Rafinda
PY  - 2023
DA  - 2023/01/17
TI  - Financial Literacy and Behavioral Bias of Individual Investors: Empirical Research in Indonesia
BT  - Proceedings of the Unima International Conference on Social Sciences and Humanities (UNICSSH 2022)
PB  - Atlantis Press
SP  - 339
EP  - 347
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-35-0_42
DO  - 10.2991/978-2-494069-35-0_42
ID  - Wijayanto2023
ER  -

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