scholarly journals The Examination Belief Adjustment Model against Overconfidence Investor Decision Making Investments

2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Farita Dewi Rofiyah ◽  
Luciana Spica Almilia
Keyword(s):  
Decision Making ◽  
Design Of Experiments ◽  
Investment Decision ◽  
Bad News ◽  
Good News ◽  
Recency Effects ◽  
Short Series ◽  
Investment Decision Making ◽  
The Difference ◽  
Belief Adjustment

This study tested the model of belief adjustment in investment decision. This study aims to examine the difference in the final judgement given by investors using belief adjustment considering on the pattern of presentation (Step by Step and End of Sequence), order of information, series information and the level of overconfidence againts investment decision making. Design of Experiments in this study is that pattern of presentation 2x2x2x2 , Step by Step and End of Sequence, order of information (good news followed by bad news and bad news followed by good news), series information (long series dan short series) and the level of overconfidence. The research hypothesis of research in this study were tested by Independent Sample t-test. The result in this study showed the recency effect on the pattern of presentation of the Step by Step for information long series and short series. This is also reflected in the End of Sequence showed no effects occur on the order of a long series and recency effects occur in a short series.

scholarly journals Belief Adjustment Model Test in Investment Decision Making: Experimentation of short information Series

2017 ◽  
Vol 7 (1) ◽  
pp. 15
Author(s):  
Aulida Kholifatun Nisa
Keyword(s):  
Portfolio Management ◽  
Investment Decision ◽  
Order Effect ◽  
Recency Effect ◽  
Bad News ◽  
Good News ◽  
Adjustment Model ◽  
Investment Decision Making ◽  
The Difference ◽  
Belief Adjustment

The aims of this study are examine the difference judgement given by investor using belief adjustment model to consider the pattern of presentation, the order of information and the tpye of information. This study using experimental design 2x2x2 mixed design, include: the pattern of presentation (Step by Step and End of Sequence), the order of information good news followed by bad news (++--) and bad news followed by good news (--++), and  the type of information (accounting and non accounting). The hypothesis in this study were tested  with Independence Sample T-test and Mann Whitney U. The participants were students STIE Perbanas Surabaya bachelor degree majoring in Accounting and Management who have knowlegde related to investment management and capital market or investment portfolio management and financial statements analysis. The result of this study showed that occurs recency effect while the pattern of information of Step by Step (SbS) and the type of information accounting and non accounting. This also occurs while the pattern of presentation of End of Sequence (EoS) and the type of acounting information occurs recency effect, wheares there was no order effect on the type of non accounting information.

scholarly journals The Testing of Belief-Adjustment Model and Framing Effect on Non-Professional Investor’s Investment Decision-Making

2018 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Taufan Hanafi
Keyword(s):  
Decision Making ◽  
Undergraduate Students ◽  
Investment Decision ◽  
Framing Effect ◽  
Bad News ◽  
Good News ◽  
Information Order ◽  
Adjustment Model ◽  
Investment Decision Making ◽  
Belief Adjustment

This study aims to find out the effect of belief-adjustment model and framing effect on non-professional investor’s investment decision making. The designs of experiment used in  this study are the presentation pattern of 2x2x2, disclosure pattern (step-by-step and end-of-sequence), disclosure evidence of information order (good news followed by bad news and  bad news followed by good news), and framing effect (framing condition according to the information and framing condition with the reversed information). The research hypotheses in this study are tested using parametric test. The dependent variable used in this study is investment decision making, while, the independent variables used in this study are belief-adjustment model and framing effect. The number of participants involved in this study is 80 undergraduate students of STIE Perbanas Surabaya majoring in Accounting or Management. The results indicate that there are significant differences in decision making and recency effect occurs between the investors who receive good news followed by bad news and the investors who receive bad news followed by good news in the step-by-step disclosure pattern with framing condition according to the information. The results of this study also show that primacy effect occurs between the investors who receive good news followed by bad news and the investors who receive bad news followed by good news in the step-by-step disclosure pattern with framing condition in reversed information.

scholarly journals Mitigation of order-effects on investment decision making

2017 ◽  
Vol 6 (2) ◽  
pp. 136
Author(s):  
Auravita Astania ◽  
Luciana Spica Almilia
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Order Effect ◽  
Bad News ◽  
Good News ◽  
Sequence Length ◽  
Order Effects ◽  
Investment Decision Making ◽  
Formation Pattern ◽  
Belief Adjustment

This study attests the belief-adjustment model to examine whether there are differences in investment decision making between the participants who obtain good news fol-lowed by bad news and those who obtain bad news followed by good news on the in-formation pattern which is processed based on end-of-sequence and long series infor-mation. The experiment design in this study is the pattern of presentation 1x1x2 end-of-Sequence, a long series information and directions of evidence (good news followed by bad news and bad news followed by good news). The research hypotheses were tested using Mann Whitney test. The variables used in this research are investment decision, pattern of presentation in end-of-sequence, length of the series of information, and order of evidence. The participants involved in this research are 47 students (ba-chelor program) of STIE Perbanas Surabaya majoring in Accounting and Manage-ment who are taking or have taken courses of Financial Statement Analysis and/or Investment Management and Capital Markets. The results show that there is no sig-nificant difference in the judgment between the participants who obtain good news followed by bad news and those who obtain bad news followed by good news. In addi-tion, there is no order-effect occurring in investment decision making.

scholarly journals Model Belief Adjustment dalam Pengambilan Keputusan Investasi Berdasarkan Informasi Nonakuntansi

2017 ◽  
Vol 20 (1) ◽  
pp. 149
Author(s):  
Anita Anggraeni ◽  
Luciana Spica Almilia
Keyword(s):  
Decision Making ◽  
Information Disclosure ◽  
Investment Decision ◽  
Recency Effect ◽  
T Test ◽  
Bad News ◽  
Good News ◽  
Mix Design ◽  
Sequence Information ◽  
Investment Decision Making

<p><em>The purpose of this study is to examine is there any difference on investment decision making among participant that received good news information followed by bad news compared with participant that received bad news information followed by good news on the SbS and EoS information disclosure pattern, also long and short information series. The experiment design in this study is 2x2x2 mix design subject, which is the information disclosure pattern (step by Step and End of Sequence), information order (good news followed by bad news), and information series (long and short infomation series). The Independent Sample t-test used to examined the research hypothesis. The amount of participant involved on this study are 96 college students in STIE Perbanas Surabaya in Accountant and Management major. The result show that there were difference on investment decision making among participant that received good news information followed by bad news compared with participant that received bad news information followed by good news on the SbS information disclosure pattern and long information series and also occurs recency effect.</em></p><p align="center"><strong>Abstrak <br /></strong></p><p>Tujuan penelitian ini adalah menguji perbedaan keputusan investasi antara partisipan yang menerima informasi good news diikuti bad news dibandingkan dengan partisipan yang menerima informasi bad news diikuti good news, baik pada pola penyajian SbS maupun EoS dan seri informasi panjang dan pendek. Penelitian ini menggunakan metoda eksperimen 2x2x2 mix design, yaitu pola penyajian (step by step dan end of sequence) dan urutan informasi (good news diikuti bad news dan bad news diikuti good news) dan seri informasi (informasi panjang dan informasi pendek). Independent Sample t test digunakan untuk menguji hipotesis penelitian. Jumlah partisipan dalam penelitian ini adalah 96 mahasiswa Akuntansi dan Manajemen STIE Perbanas Surabaya. Hasil penelitian menunjukkan bahwa terdapat perbedaan dalam pengambilan keputusan investasi dan terjadi recency effect bagi partisipan yang menerima good news diikuti bad news dibandingkan dengan partisipan yang menerima informasi bad news diikuti bad news pada pola penyajian SbS dan seri informasi panjang.<em><br /></em></p>

scholarly journals Framing Effect And Belief Adjustment Model In Investment Judgment

2020 ◽  
Vol 10 (3) ◽  
Author(s):  
Luciana Spica Almilia ◽  
Putri Wulanditya ◽  
Riski Aprilia Nita
Keyword(s):  
Investment Decision ◽  
Framing Effect ◽  
Bad News ◽  
Good News ◽  
Adjustment Model ◽  
Investment Decision Making ◽  
Experiment Method ◽  
Information Patterns ◽  
Belief Adjustment ◽  
Subject Experiment

This study aims to examine the framing effect and belief adjustment model of the investment decision. A previous study examined partially the effect of framing and belief adjustment models. This research used experiment method. Research method is 2 x 2 x 2 mixed design experiment (between and within subject).  Experiment method of 2 x 2 x 2 includes disclosure pattern (step by step and end of sequence), evidence order (good news followed by bad news and bad news followed by good news), and Framing Effect (negative frame and positive frame). Research participants in this research are: non-professional investor and professional investor. The number of participants in this research is 274 people consisting of 154 participants from non-professional investors and 120 participants from professional investors.  The experiment was done by researcher in June to October 2015. The results showed framing effect, the order of presentation and the presentation of information patterns affect investors in making investment decisions. The contribution for financial accountancy literature is that this research tries to conduct reconstruction on puzzle of investment decision making model.   

scholarly journals Effect of Ordo in Assessment of Financial and Non-Financial Information

2020 ◽  
Vol 11 (1) ◽  
pp. 78-83
Author(s):  
Monica Rahardian Ary Helmina ◽  
Imam Ghozali ◽  
Jaka Isgiyarta ◽  
Ibnu Sutomo
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Information Value ◽  
Order Effects ◽  
Stock Valuation ◽  
Information Order ◽  
Investment Decision Making ◽  
Belief Adjustment ◽  
Order Of Presentation ◽  
Disclosure Patterns

This research focuses on investor decision making on information provided by the company. Belief-adjustment models emphasize the order of presentation of information. Order effects occur when decisions made by individuals differ after receiving evidence in a different order. In order of evidence, the characteristics of the evidence are mixed between confirmative (positive) information and unconfirmed (negative) information.The participants of this study are investors who have investment accounts. The design of the 2x4 experimental method is divided into analysis of factor 2 (presentation pattern) x 4 (information value), which aims to test that the presentation of information in step by step (SBS) will have a better impact than end of sequence (EOS). There are 8 combinations of instruments contain patterns and information values that are used as a source of stock valuation. ANOVA analysis is used for this study. The results showed that there was an effect of the pattern of information delivery in investment decision making when the SBS and EOS disclosure patterns in hypothesis 1 and hypothesis 2. The results of hypothesis 3 did not support the belief adjustment model theory.

scholarly journals ANALISIS FUNDAMENTAL DALAM PENGAMBILAN KEPUTUSAN INVESTASI SAHAM PERUSAHAAN PERKEBUNAN PERIODE 2008-2015

2017 ◽  
Vol 2 (3) ◽  
pp. 40-48
Author(s):  
Irma Dwi Pratiwi ◽  
Nugraha Nugraha
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Total Sample ◽  
Fundamental Analysis ◽  
Stock Investment ◽  
Investment Decision Making ◽  
Analysis Technique ◽  
The Difference

Objective – For fundamental analysis and to know the description of Earning Per Share and Price Earning Ratio as a basis for consideration in decision making of stock investment in plantations sub-sector period 2008-2015.Design/methodology/approach – This type of research is descriptive method with a total sample of 7 metal and allied sub-sector companies listed on the Indonesian Stock Exchange. The analysis technique used is fundamental analysis with EPS and PER approaches. The design of this research is the method of time series design with a period of research for 8 years.Findings – Based on the results of fundamental analysis with EPS and PER approach can effectively assist investors in assesing the company’s stock on making decision of stock investment in plantations sub sector.Originality/value – The difference in this study lies in the object of research, study time, measuring tools, literature used, the theory used and the results of research. Keywords: Fundamental analysis,  Investment Decision  Making,  Stocks,  Earning Per Share (EPS), Price Earning Ratio (PER), Intrinsic ValueArticle Type: Case Study

Sign in / Sign up

Export Citation Format

Share Document