scholarly journals The influence of risk perception, risk tolerance, overconfidence, and loss aversion towards investment decision making

2019 ◽  
Vol 21 (3) ◽  
pp. 401
Author(s):  
Nadya Septi Nur Aini ◽  
Lutfi Lutfi
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Risk Tolerance ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Investment Decision Making

This study aims to examine the effect of risk perception, risk tolerance, overconfidence, and loss aversion on investment decision making. The sample in this study were workers in Surabaya and Jombang, East Java. There were 400 respondents taken using a questionnaire through the survey method. This study used PLS-SEM (Partial Least Square-Structural Equation Model) as a data analysis technique. The results showed that risk perception has a significant and negative effect on investment decision making, risk tolerance and overconfidence have a significant and positive effect on investment decision making, while loss aversion has no effect on investment decision making. This research is expected to provide an overview of how to deal with risk in investment and how to avoid behavioral biases in investment decisions making.

scholarly journals The The Impact of Behavioral Aspects on Investment Decision Making

2021 ◽  
Vol 10 (1) ◽  
pp. 15-27
Author(s):  
Ninditya Nareswari ◽  
Alifia Salsabila Balqista ◽  
Nugroho Priyo Negoro
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Investment Decision ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Herd Behavior ◽  
Investment Decision Making ◽  
Behavioral Aspects ◽  
The Impact

This study aims to investigate the impact of behavioral aspects (sentiment investor, overconfidence, salience, overreaction, and herd behavior) on investment decision making. The sample contained 413 individual investors—used partial least square structural equation modeling (PLS-SEM) as a data analysis technique. The results showed that sentiment investors, overconfidence, salience, overreaction, and herd behavior positively affect investment decision making. The finding of this study has important implications for the investor to understand themselves to anticipate bias in investment decision making.

scholarly journals The Role of Financial Behavior in Improving Investment Decision: Empirical Evidence of The Students of Economics and Business Faculty UPN “Veteran” Jawa Timur

2020 ◽  
Vol 3 (1) ◽  
pp. 21-28
Author(s):  
Delvia Istiana ◽  
Dhani Ichsanuddin Nur
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Investment Decision ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Behavior ◽  
Investment Decision Making ◽  
Anchoring Bias ◽  
Data Collection Technique

Financial behavior can understand the behavior of investors in making investment decisions. Investment decision making is a process of selecting the best alternative from a number of alternatives that are available under the influence of complex situations. Investment decision making is influenced by several factors, namely Anchoring Bias, Loss Aversion, and Overconfidence. The purpose of this research is to examine the contribution of Anchoring Bias, Loss Aversion, and Overconfidence of Active Students in the Faculty of Economics and Business UPN “Veteran” East Java as investors in improving investment decision making. The sampling technique used was purposive sampling with the sample determination technique using the Slovin formula. This study used 99 investor respondents who had invested more than three months and were active students of the Faculty of Economics and Business, UPN "Veteran" East Java. The data collection technique used a questionnaire which was then analyzed using a quantitative descriptive method with the Partial Least Square (PLS) model. The results of this study indicate that Anchoring Bias can contribute to improving investment decision making, Loss Aversion can contribute to improving investment decision making, and Overconfidence can contribute to improving investment decision making

scholarly journals Factor Influencing Investor’s Decision Making in Indonesia: Moderating the Role of Locus of Control

2020 ◽  
pp. 49-56
Author(s):  
Febria Nalurita ◽  
Farah Margaretha Leon ◽  
Hamdy Hady
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Equation Modeling ◽  
Investment Decision Making ◽  
Market Factors ◽  
Regret Aversion

This study aims to investigate the effect of loss aversion, regret aversion, and market factors, on investment decision making with the moderating role of locus of control. Data collection is done by distributing questionnaires. The survey was conducted on individual investors in the Indonesia Stock Exchange in Jakarta to obtain a sample of 281. This research uses the Structural Equation Modeling approach. The statistical tool used is LISREL 8.8. This study found that loss aversion, regret aversion, and market factors significantly influence investment decision making. Locus of control plays the role of moderation between loss aversion, regret aversion, market factors, and investment decision making. The novelty in this study reveals the research that needs to be done to encourage investors to make rational decisions and control the required rate of returns through their locus of control. This research helps investors to make decisions logically and rationally with an open mind, high-performance thoughts and positive actions for investment goals that produce positive returns.

Does entrepreneurs’ risk perception influence firm’s rapidity in foreign market entry through moderation of entrepreneurial decision-making approach?

2020 ◽  
Vol 30 (2) ◽  
pp. 225-243
Author(s):  
Md. Nur Alam ◽  
Imtiaz Masroor ◽  
Md. Noor Un Nabi
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Market Entry ◽  
International Market ◽  
Risk Tolerance ◽  
Partial Least Square ◽  
Least Square ◽  
Partial Least Square Regression ◽  
Foreign Market Entry ◽  
Content Type

Purpose The purpose of this paper is to find out whether risk perception can affect rapidity in international market entry. Also, this paper tries to find out whether the decision-making approach, effectuation, can moderate the pathway between risk tolerance and internationalization speed. Design/methodology/approach A hypothetico-deductive methodology has been used to conduct this study. Using partial least square regression, this study tested and proved two developed hypotheses based on a sample of 101 software and IT-enabled services firms in Bangladesh. The sample was selected using non-probability sampling techniques, and data were collected using a structured questionnaire developed from the extant literature. Findings All of the hypotheses proposed in this study have been accepted. The results show that the effectual approach of decision-making negates the risk perception of the entrepreneur and speeds up the internationalization process of that firm. Research limitations/implications The implications of this study are inherent in the entrepreneurial cognition and decision-making approach (effectuation). This study provides an insight into risk perception and the rapidity of internationalization, which can spur future development in this field. Originality/value Rapidity in internationalization of small- and medium-sized enterprises depends on a significant number of factors, one of which is the decision-making approach. The decision-making approach followed by the firms can have an effect on the speed of internationalization. This paper connects the dots between the rapidity of entry to foreign markets with a cognitive variable, risk perception. This paper developed two hypotheses to measure the relationship between risk perception of the entrepreneurs and the rapidity in international market entry with moderation of the decision-making approach.

scholarly journals Analysing the Effect of Financial Risk Perception, Risk Tolerance on Investment Behaviour: An Empirical Analysis

2021 ◽  
Vol 12 (3) ◽  
pp. 5511-5516
Author(s):  
M Ramu Et. al.
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Financial Risk ◽  
Investment Decision ◽  
Risk Tolerance ◽  
Objective Reality ◽  
Investment Decision Making ◽  
Complex Process ◽  
Made In ◽  
Investment Behaviour

Investment decision making is a complex process that depends on several factors that vary from one individual to another. Regardless of the type of decision that is made in life, people behave differently. To distinguish between risk tolerance and risk perception, we must first define risk. Risk is, of course, uncertainty about the result. Any decision that casts doubt on at least one of the possible outcomes is risky. Perception is the assessment of a level of risk which usually involves an understanding of the situation, that is, there is an explanation for objective reality. Risk tolerance is the level at which an individual is willing to accept the risks associated with investments. This paper determines the relation between risk perception, risk tolerance and investment behaviour using inferential statistical analysis and draws the conclusions from the obtained results

scholarly journals The Influence of Career Development, Competence, Work Motivation, Job Satisfaction, Against the Performance of Health Service Employees in Bintan Regency

2021 ◽  
Vol 3 (2) ◽  
pp. 67-74
Author(s):  
Faisal Husni ◽  
Didi Kurniadi ◽  
Verlina Y Kawangung ◽  
Putri Rahmawati
Keyword(s):  
Structural Equation ◽  
Work Motivation ◽  
Statistical Tests ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Survey Method ◽  
Service Employees ◽  
Analysis Techniques ◽  
Study Population

This study uses a causal model survey method using path analysis techniques. This study aims to confirm the  theoretical model with empirical data, the study population is employees in Investment and Integrated Service Office  Bintan Regency, with sample of 39 employees. Data collecting technical using variable measurements by a  questionnaire instrument, this instrument was developed based on theoretical studies. Data analysis uses descriptive  statistics and statistical analysis. Statistical tests are used to test the significance of path coefficients using Partial Least  Square (PLS) which is a Multivariate Analysis in the second generation using structural equation modeling (SEM). PLS  can be used for a small number of samples and does not require the assumption that data distribution must be normal or  not. The results of the analysis found that the relationships between variables formulated in the formulation of the  problem as many as 6 pieces obtained significant results. 

scholarly journals The Improvement Model of Existence Effect towards Human Resources

2020 ◽  
Vol 11 (1) ◽  
pp. 105-117
Author(s):  
Arizqi Arizqi
Keyword(s):  
Human Resources ◽  
Structural Equation ◽  
Teaching And Learning ◽  
Research Data ◽  
Partial Least Square ◽  
Least Square ◽  
Learning Activities ◽  
Equation Modeling ◽  
Survey Method ◽  
The Relationship

Abstrak. Efek eksistensi merupakan eksistensi sumber daya manusia yang muncul dari efek atau sesuatu yang telah dilakukan oleh sebuah aktivitas. Efek eksistensi dalam penelitian ini merupakan eksistensi mahasiswa yang dimunculkan dari kegiatan belajar mengajar dikelas. Begitu pentingnya sebuah efek eksistensi sebagai output kegiatan belajar mengajar, maka penelitian ini bertujuan untuk menguji pengaruh responsibility, attractiveness, emphaty, dan juga competency dari seorang pengajar dalam mempengaruhi peningkatan efek eksistensi mahasiswa di Universitas Islam Sultan Agung (UNISSULA) Semarang.  Jenis penelitian ini merupakan penelitian penjelasan (Explanatory Research) yang berusaha mengetahui hubungan antar variabel penelitian. Penelitian dilakukan dengan metode survey dengan menyebarkan kuesioner kepada 212 mahasiswa dari dari 4 mata kuliah 5 kelas. Analisis data penelitian dilakukan dengan pengujian structural equational modelling (SEM) dan menggunakan pendekatan varians (partial least square), kemudian pengolahan data didukung dengan aplikasi SmartPLS. Hasil penelitian menunjukkan bahwa efek eksistensi sumber daya manusia didalam organisasi dapat ditingkatkan melalui peningkatan emphaty dosen terhadap mahasiswa. Kemudian untuk meningkatkan kompetensi seorang dosen dapat ditingkatkan melalui peningkatan attractiveness atau metode pembelajaran yang atraktiv ketika melakukan pembelajaran dikelas. Sementara itu responsibility tidak mampu menjelaskan terhadap efek eksistensi mahasiswa.Kata Kunci : Tanggung jawab, atraktif, empati, kompetensi dan efek eksistensi. Abstract. Existancy Effect is the existence of human resources that arise from the effect or something that has been done by an activity. Existancy Effect in this research is the existence of students arising from teaching and learning activities in class. Once the importance of an Existancy Effect as an output of teaching and learning activities, then this research aims to examine the influence of responsibility, attractiveness, empathy, and also competency in influencing the improvement of existency effect toward human resources (students) at Sultan Agung Islamic University (UNISSULA) Semarang. The type of this research is an explanatory research that seeks to determine the relationship between research variables. This research was conducted through survey method by distributing questionnaires to 212 students from 4 courses in 5 classes. The research data analysis used Structural Equation Modeling (SEM) and used partial least square. The data processing was supported by SmartPLS application. The results showed that the existence effect of human resources in organizations can be improved through increasing the empathy of lecturers with students, Furthermore, in order to improve the lecturer’s competency, it needs an attractiveness in the learning method. Meanwhile responsibility cannot explain the existance effect of students.Keywords: responsibility, attractiveness, emphaty, competency, existence effect.

Between awareness of halal food products and awareness of halal-certified food products

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hardius Usman ◽  
Chairy Chairy ◽  
Nucke Widowati Kusumo Projo
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Religious Commitment ◽  
Sampling Technique ◽  
Food Products ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Difference

Purpose The purpose of this study are: to study the difference between halal awareness and halal certified awareness, and the relationship between the two variables; to study the differences in knowledge about halal and halal certified, as well as their relationship with halal awareness and halal certified awareness; and to build and test research models regarding factors that affect certified halal awareness. Design/methodology/approach The target population is Muslims who live in Indonesia and are 18 years old or more. The self-administered survey method is carried out based on a purposive sampling technique. The authors collect data from 428 Muslim respondents in Indonesia through an online survey. This study applies the partial least square–structural equation model to examine causal relationships and test hypotheses. Findings This study reveals several results: halal awareness is a different concept from halal-certified awareness; knowledge of halal is a different concept from knowledge of halal certificates; awareness is an outcome of knowledge, but knowledge is not an outcome of awareness; halal awareness has a significant effect on halal-certified awareness; knowledge about halal certificates has a significant effect on halal-certified awareness, but knowledge about halal does not have a significant effect; knowledge of halal certificates is not influenced by knowledge of halal and halal awareness; and exposure and religious commitment have a significant role in increasing knowledge and awareness. Originality/value Research that explores the difference between halal awareness and halal certified awareness, and Muslim knowledge about halal and halal certified, especially in the context of halal-certified food, is still very limited in the literature provided, if not unavailable. Furthermore, this study also builds and tests research models regarding the factors that affect certified halal awareness, which is limited or may not have been found in the literature.

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