Proceedings of the 1st UPY International Conference on Education and Social Science (UPINCESS 2022)

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Covid 19: Investment Decisions of Individual Investor Based on Behavioral Finance Factors

Authors
Arista Natia Afriany1, Latifah Putranti1, *, Hapsari Dyah Herdiany1, Valsa Ayunda Tisya1
1Faculty of Business, Department Management, University of PGRI Yogyakarta, Yogyakarta, Indonesia
*Corresponding author. Email: latifah@upy.ac.id
Corresponding Author
Latifah Putranti
Available Online 15 December 2022.
DOI
10.2991/978-2-494069-39-8_9How to use a DOI?
Keywords
Behavioral Finance; Overconfidence Bias; Anchoring Bias; Herding
Abstract

Positive achievements in trading and investment are reflected in the increasing public interest in investing in the Indonesian capital market. In theory, EMH assumes that there are many rational investors who try to maximize profits. Behavioral finance theory is an empirical study of contradictions that proves that investors are not completely rational. This is because there are psychological factors that influence investment decisions. The existence of this human psychological factor makes various financial decisions bias. This study aims to determine and analyze the effect of several behavioral biases, namely overconfidence bias, anchoring bias, and herding on stock investment decisions in Indonesian investors. This research is a quantitative and survey research with primary data. The research population includes individual stock investors in Indonesia. The sampling technique used is purposive sampling. The sample obtained was 129 respondents. The statistical method for testing the data is Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS Version 3.0 software. Statistical test results show that overconfidence bias has a positive and significant effect on stock investment decisions, anchoring bias has a positive and significant effect on stock investment decisions, herding behavior is formed when investors adopt the actions of others, in this study herding has a negative and significant effect on stock investment decisions.

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 1st UPY International Conference on Education and Social Science (UPINCESS 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
15 December 2022
ISBN
978-2-494069-39-8
ISSN
2352-5398
DOI
10.2991/978-2-494069-39-8_9How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Arista Natia Afriany
AU  - Latifah Putranti
AU  - Hapsari Dyah Herdiany
AU  - Valsa Ayunda Tisya
PY  - 2022
DA  - 2022/12/15
TI  - Covid 19: Investment Decisions of Individual Investor Based on Behavioral Finance Factors
BT  - Proceedings of the 1st UPY International Conference on Education and Social Science (UPINCESS 2022)
PB  - Atlantis Press
SP  - 89
EP  - 101
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-39-8_9
DO  - 10.2991/978-2-494069-39-8_9
ID  - Afriany2022
ER  -