scholarly journals Pengambilan Keputusan Investasi Rasional: Suatu Tinjauan dari Dampak Perilaku Representativeness Bias dan Hearding Effect

2021 ◽  
Vol 4 (1) ◽  
pp. 1-13
Author(s):  
Vitmiasih Vitmiasih ◽  
Satia Nur Maharani ◽  
Dwi Narullia
Keyword(s):  
Decision Making ◽  
Data Analysis ◽  
Mixed Method ◽  
Investment Decision ◽  
Negative Influence ◽  
The Other ◽  
Primary Data ◽  
Herding Behavior ◽  
Investment Decision Making ◽  
Rational Investment

The aim of this study was to determine the effect of representation bias and herding behavior towards rational investment decision making, which was detected using the Heuristic Theory perspective on the Investor Saham Pemula (ISP) community in East Java. This research uses a mixed-method by using a sequential explanatory strategy. This study uses primary data obtained by distributing online questionnaires in 10 cities in East Java and interviews with expert practitioners. The sample of this research is 111 active investors who trade independently. In relation, the data analysis was through multiple linear regression. This research succeeded in proving that representative bias behavior has a negative influence on decision-making on rational investment. On the other hand, no evidence showed the effect of herding behavior influencing investment decision making. The phenomenon indicates that investors rely more on information obtained through the results of their own reason rather than following the decisions of other investors.Keywords: Representativeness Bias, Herding-Effect Behavior, Heuristic Theory AbstrakPenelitian ini bertujuan untuk menganalisa pengaruh representativeness bias dan herding behavior terhadap pengambilan keputusan investasi yang rasional yang dideteksi dengan menggunakan perspektif Teori Heuristik pada komunitas Investor Saham Pemula (ISP) di Jawa Timur. Penelitian ini menggunakan metode campuran dilengkapi dengan strategi penjelas berurutan. Studi penelitian ini menggunakan data primer yang diperoleh dengan menyebarkan kuesioner online di 10 kota di Jawa Timur dan wawancara dengan praktisi ahli. Sampel penelitian ini adalah 111 investor aktif yang berdagang secara mandiri. Dalam kaitannya, analisis data dilakukan melalui regresi linier ganda. Penelitian ini berhasil membuktikan bahwa perilaku representativeness bias berpengaruh negatif terhadap pengambilan keputusan atas investasi rasional. Di sisi lain, tidak ada bukti yang menunjukkan pengaruh herding behavior mempengaruhi pengambilan keputusan investasi. Fenomena tersebut mengindikasikan bahwa investor lebih mengandalkan informasi yang diperoleh melalui hasil nalar pribadi dibandingkan mengikuti keputusan investor lain.Kata Kunci: Representativeness Bias, Perilaku Herding-Effect, Teori Heuristic

scholarly journals Animal spirits: Keynes' theory of rational investment decision-making under conditions of fundamental uncertainty

2009 ◽  
Vol 52 (1) ◽  
pp. 17-44
Author(s):  
Ognjen Radonjic
Keyword(s):  
Decision Making ◽  
Economic Crisis ◽  
Investment Decision ◽  
The Other ◽  
Investment Activity ◽  
Animal Spirits ◽  
Investment Decision Making ◽  
Key Factor ◽  
Fundamental Uncertainty ◽  
Rational Investment

Keynes's term, animal spirits, has been mistakenly confused with irrational decision-making. However, if we accept Keynes' assumption that future is fundamentally uncertain and nonergodic, animal spirits become key factor that makes continual process of investment decision-making possible. On the other hand, if animal spirits blunt, investment activity dwindles and makes emergence of deep economic crisis likely.

scholarly journals Does Herding Behaviour and Overconfidence Drive the Investor’s Decision Making During the Covid-19 Pandemic

2021 ◽  
Vol 1 (8) ◽  
pp. 1-16
Author(s):  
Hirdinis M.
Keyword(s):  
Decision Making ◽  
Structural Equation Modeling ◽  
Data Analysis ◽  
Structural Equation ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Equation Modeling ◽  
Herding Behavior ◽  
Investment Decision Making

This study is intended to analyze the effect of herding behavior and overconfidence in encouraging investment decision-making by investors on the Indonesia Stock Exchange in the Jakarta area. The population of this research is investors who invest in investment instruments listed on the Indonesia Stock Exchange in the Jakarta area with an unknown population, and the number of samples in this study is 100 investors. Data analysis in this study used an alternative method of Structural Equation Modeling (SEM) with Wrap PLS 5.0 data processing tools. The findings of this study is herding has a positive and significant effect on investment decisions by investors in the Jakarta area. Overconfidence has a positive and significant effect on investment decisions by investors in the Jakarta area. This means that the increasing herding and overconfidence of investors can drive the investor’s decisions making in the Jakarta area.

Effect of Disposition Effect on Investment Decision Making in Property Market in Plateau State, Nigeria

2019 ◽  
pp. 83-98
Author(s):  
Dashol Ishaya Usman ◽  
Mary Pam
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Primary Data ◽  
Property Market ◽  
Financial Decisions ◽  
Descriptive Research ◽  
Investment Decision Making ◽  
Plateau State

The purpose of the chapter was to establish the effect of disposition on investment decision making in property market in Plateau State, Nigeria. Descriptive research design was used in the study. Primary data was collected using standard questionnaires with both closed and open-ended questions. The regression analysis results confirmed that there was a significant positive linear relationship between disposition and investor investment decision making in property market in Plateau State in Nigeria. The study concluded that disposition effects bias does not alter rationality in investment decision making. Disposition affected investment decisions. The main recommendation for investors is to make constant attempts to increase their awareness on behavioral finance by educating themselves on the field. Studying about the biases and reflecting on their decisions are likely to help achieve better self-understanding of the extent and manner to which they are influenced by emotions while making financial decisions under uncertainty.

scholarly journals Effect of Emotional Biases on Investor’s Decision Making in Nigeria

2020 ◽  
Vol 4 (1) ◽  
pp. 33-39
Author(s):  
Ebenezer Y. Akinkoye ◽  
Oluwaseun E. Bankole
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Primary Data ◽  
Investment Decision Making ◽  
Regret Aversion ◽  
Overconfidence Bias ◽  
Structured Questionnaire

The study examined emotional biases and its effect on investor’s decision making in Nigeria Primary data were employed and the population consists of clients of the top 10 stockbroking firms registered by the Nigerian Stock Exchange as at 31st January, 2018. These firms were selected because they contributed to 68.72% of total value of transactions as at 31st January, 2018. Data on emotional biases and investment decision making among investors in Nigeria were obtained through structured questionnaire which was administered to 30 clients of each stockbroking firm, totalling 300. Data analysis was done using percentages and logistic regression analysis. Findings showed that emotional biases, represented by loss-aversion bias, overconfidence bias, regret-aversion bias and herding bias were prevalent to Nigerian investors and also significantly influenced investor’s decision making in Nigeria. The study suggests that investors should improve the understanding of various emotional biases and traits exhibited by them, adopt a suitable decision technique to avoid this and seek experts’ opinion when making investment decisions.

scholarly journals Influence of Behavioural Biases on Investment Decision Making in Bhubaneswar Region

2019 ◽  
Vol 8 (3) ◽  
pp. 8297-8301
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Primary Data ◽  
Behavioural Finance ◽  
Investment Decision Making ◽  
Retail Investors ◽  
The Individual ◽  
The Impact

Behavioural Finance has gained a lot more importance in recent era. In the fast moving world where the standard finance fails to explain the irrational behavior of the investors, behavioural finance tries to identify the cause for such behavior which otherwise called as behavioural anomalies. The purpose of this research paper is to identify such anomalies and also to examine whether the behavioural biases has any influence in the investment decision making by the retail investors. This paper also put an emphasis to find out which among the different biases has the most and least influence on the individual investment decision making process. This study has used primary data for knowing the impact of factors such as gender, age, occupation, income, sector preference, and instruments preferred for investments, source of information, intention behind investment and consideration before investment. Descriptive analysis has been done to check the impact of these factors along with correlation and other. The sampling technique used here is non-probabilistic convenience sampling. The data has been collected through structured questionnaire based on five point Likert scale from the retail investors of Bhubaneswar region. This research shall interest the company, policy makers and the issuers of securities about the interest and preferences of individuals before issuing securities in the market.

scholarly journals FAKTOR–FAKTOR YANG MEMPENGARUHI PENGAMBILAN KEPUTUSAN INVESTASI DI PASAR MODAL INDONESIA

2018 ◽  
Author(s):  
Lilis Susilawaty ◽  
Edi Purwanto ◽  
Stela Febrina
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Risk Aversion ◽  
Capital Market ◽  
Investment Decision ◽  
Descriptive Analysis ◽  
Primary Data ◽  
Firm Level ◽  
Quantitative Descriptive Analysis ◽  
Investment Decision Making

<h5><em>The purpose of this research</em><em> to determine what factors affect the return on investment in the Indonesian capital market. By replicating the research conducted by Quershi et al (2012) found 4 (four) factors that influence investment decision making, namely heuristics, risk aversion, financial tools and firm levels of corporate governance. Data analysis technique is quantitative descriptive analysis using primary data with information that is in accordance with respondents who are investors who have invested in the Indonesian capital market. Hypothesis testing is done using multiple analysis by first testing the validity, reliability test, and classical assumption test.</em></h5><h5><em>With a total of 185 respondents, the results of the </em><em>research</em><em> show that heuristics, risk aversion, financial tools and corporate levels of corporate governance together have a significant influence on investment decision making. However, partially, heuristics and risk aversion have no effect on investment decision making, while financial tools and corporate governance levels are significant to investment decision making.</em><em></em></h5><h5><em> </em></h5><p><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>investment decision making, heuristic, risk aversion, financial tools, firm level corporate governance</em></p>

scholarly journals The Sentimental Influence of Investors on Investment Decision Making

2021 ◽  
Vol 3 (1) ◽  
pp. 85-100
Author(s):  
Shahid Hussain
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Sampling Technique ◽  
Primary Data ◽  
Moderator Variable ◽  
Statistical Tool ◽  
Course Of Action ◽  
Investment Decision Making ◽  
The Impact

The study explores the impact of investor’s sentiments on individual investment decision making in the stock exchange of Pakistan. It illustrate a broad range of factors that are usually unseen during the decision making process although the fact that they have a huge influence on their course of action. There are number of factors that are the cause of investor’s overall attitude and sentiments. These factors like religion, overconfidence, affect heuristics, demographic variables etc. Some of these factors impact negatively on an investment decision of an investor but at the same time others could help the investor to make logical and rational decisions. It is an exertion to enhance investors understanding about the factors that could stay away his/her vital investment decisions towards irrational decisions. Primary data is use to conduct the present study. Questionnaire is used to gather data from respondents. Sample size consists of 200 stock investors and brokers from Islamabad Stock Exchange. Convenience sampling technique is used, E-Views is used as statistical tool to test hypothesis. Regression analysis shows that overconfidence, religion has significant relationship with investment decision. While affect heuristics have insignificant relationship with investment decision. Demographic is taken as moderator variable.                                               

scholarly journals Data Analysis of Personalized Investment Decision Making Using Robo-Advisers

2020 ◽  
Vol 16 (2) ◽  
pp. 87-100
Author(s):  
V.M. Kobets ◽  
◽  
V.O. Yatsenko ◽  
A.Yu. Mazur ◽  
M.I. Zubrii ◽  
...  
Keyword(s):  
Decision Making ◽  
Data Analysis ◽  
Investment Decision ◽  
Investment Decision Making

Cashflow Simulation for Evaluating Credit Risk on Corporate Bonds

1971 ◽  
Vol 97 (1) ◽  
pp. 85-97
Author(s):  
V. H. Karmarker
Keyword(s):  
Decision Making ◽  
Cash Flow ◽  
Financial Institutions ◽  
Investment Decision ◽  
Corporate Bonds ◽  
Flow Simulation ◽  
Rational Decision ◽  
Investment Decision Making ◽  
Rational Investment

Corporate bonds and privately placed loans constitute a large proportion of the portfolios of several financial institutions. When bonds of a corporation are purchased in the market or loans are granted by some other arrangement, the lender evaluates the risk relating to the investment in question. Determination of the level of risk is important, among other things, for facilitating comparison between different investments, setting the terms of loan agreements and making a rational decision concerning the acceptance or rejection of a loan proposal. Since evaluation of risk is very important for rational investment decision-making, the nature of risk in bond investment is examined briefly in the next section. In the subsequent sections, the prevailing techniques of evaluation of risk will be reviewed and the cash flow simulation model presented.

Impact of Equity Investment Intention Towards Behaviour: An Empirical Analysis

2021 ◽  
pp. 097226292110043
Author(s):  
Shelly Srivastava ◽  
Supriyo Roy
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Investment Decision ◽  
Primary Data ◽  
Risk Propensity ◽  
Equity Investment ◽  
Investment Decision Making ◽  
Retail Investors ◽  
The Impact ◽  
Investment Behaviour

Investments made by investors contribute to both inflow and outflow of funds in the capital market. Investment decision making is complex due to its uncertain behaviour. In literature, there is evidence of a gap between intention and behaviour among other aspects of human behaviour like consumer buying behaviour. Therefore, this study explores the intention–behaviour gap in investment behaviour of retail investors by examining the effect of two moderators, namely risk propensity (RP) and opinion of stakeholders (OPI). The present study also focuses on identifying financial and non-financial factors influencing equity investment intention (EII) and measures its impact on equity investment behaviour (EIB). A model is, thus, conceptualized and hypotheses have been developed accordingly. For validation of the model, a set of primary data of retail investors is collected (through questionnaire framing) and the hypotheses are tested by using advanced statistical techniques, namely structural equation modelling. The outcomes of this study signify the impact of EII that catapults behavioural approach in investment decision making for any potential investor in the near future.

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