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 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 Analisis Pengaruh Literasi Keuangan, Inklusi Keuangan, Dan Tingkat Pendidikan Terhadap Perilaku Keuangan Pelaku Umkm Kedai/Warung Makanan Di Desa Bahagia Kabupaten Bekasi

2021 ◽  
Vol 16 (2) ◽  
pp. 61-70
Author(s):  
Puput Andriyani ◽  
Ari Sulistyowati
Keyword(s):  
Data Collection ◽  
Significant Influence ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Education Level ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Least Square ◽  
Financial Behavior ◽  
Data Collection Technique

This study aims to determine the effect of financial literacy on financial behavior, the effect of financial inclusion on financial behavior, and the effect of education level on financial behavior. The method in data processing used in this research is to use PLS (Partial Least Square) with the object of research being SMEs in the food stalls/shops in the Bahagia Village, Bekasi Regency. The sampling technique used was purposive probability with the form of non-probability sampling. The data collection technique used a questionnaire as many as 106 SMEs in the food stalls/shops in the Bahagia Village, Bekasi Regency. The results of this study indicate that there is a significant influence of financial literacy on the financial behavior of SMEs in food stalls/food stalls in Bahagia Village with t statistics 2.618 greater than t table 1.659, and a significant value of financial inclusion on financial behavior with t statistics 2.462 greater than t table 1.659, as well as the significant value of education level on the financial behavior of SMEs in food stalls/shops in Bahagia Village with a t statistics of 2.689 which is greater than a t table of 1.659.

scholarly journals Studi Perilaku Investor dan Myopic Loss Aversian

2021 ◽  
Vol 4 (1) ◽  
pp. 70-78
Author(s):  
Rizki Septiani ◽  
Satia Nur Maharani ◽  
Ria Zulkha Ermayda
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Investment Decision ◽  
Case Study Research ◽  
Financial Behavior ◽  
Primary Data ◽  
Behavioral Bias ◽  
Myopic Loss Aversion ◽  
Investment Decision Making

An experienced investor's mindset tends to be different from that of a novice investor who has certain considerations heavily influenced by feelings and emotions. This mindset has unwittingly led to behavioral bias. One behavioral bias that often arises without being realized by investors, especially novice investors, is Myopic Loss Aversion (MLA). This study aimed to confirm the existence of Myopic Loss Aversion (MLA) behavioral bias and to analyze Myopic Loss Aversion (MLA) behavior bias inactive investors in Malang as well as the factors causing the emergence of Myopic Loss Aversion (MLA) behavior bias. This research was qualitative case study research. Primary data was obtained through in-depth interviews with selected informants. The results found that Myopic Loss Aversion arises in investors who conduct portfolio evaluations more frequently by monitoring fluctuating stock chart movements that seem to fear that their portfolio would suffer losses. Furthermore, another discovery was about how investors who had experienced Myopic Loss Aversion bias could overcome past mistakes in the investment decision-making process.Keywords:  Financial Behavior, Investors, Investment Decision Making AbstrakPola pikir investor yang sudah berpengalaman bisa berbeda dengan investor pemula yang cenderung masih memiliki pertimbangan tertentu yang banyak dipengaruhi oleh perasaan dan emosi. Pola pikir ini tanpa disadari telah memunculkan bias keperilakuan. Salah satu bias keperilakuan yang sering muncul tanpa disadari oleh investor terutama investor pemula yaitu Myopic Loss Aversian (MLA). Penelitian ini bertujuan untuk mengkonfirmasi eksistensi dari bias keperilakuan Myopic Loss Aversian (MLA) dan menganalisis bias perilaku Myopic Loss Aversian (MLA) pada investor aktif di Malang serta faktor penyebab munculnya bias perilaku Myopic Loss Aversian (MLA). Penelitian ini merupakan penelitian kualitatif studi kasus. Data primer dilakukan melalui wawancara mendalam terhadap informan terpilih. Hasil penelitian ini ditemukan bahwa Myopic Loss Aversian muncul pada investor yang melakukan evaluasi portofolio secara lebih frekuen melaui pemantauan pergerakan grafik harga saham fluktuatif yang seakan-akan takut portofolionya mengalami kerugian. Lebih lanjut, juga ditemukan tentang bagaimana para investor yang pernah mengalami bias Myopic Loss Aversian mengatasi kesalahan-kesalahan dimasa lalu dalam proses pengambilan keputusan investasi.Kata Kunci:  Perilaku Keuangan, Investor, Pengambilan Keputusan Investasi  

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.

scholarly journals ANALISIS INFORMASI KEUANGAN KOPERASI SYARIAH NURI (KSN) JAWA TIMUR SEBAGAI ALAT PENGAMBILAN KEPUTUSAN INVESTASI

2019 ◽  
Vol 3 (1) ◽  
pp. 82-100
Author(s):  
Devi Lestari Pramita Putri ◽  
Wahyu Maulana
Keyword(s):  
Decision Making ◽  
Quantitative Research ◽  
Financial Analysis ◽  
Investment Decision ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Information ◽  
Economic Conditions ◽  
Investment Decision Making ◽  
Decision Making Tool

Nowadays, economic conditions in Indonesia are unstable, with the result that it is needed to look for the information from certain or credible sources. Especially in financial information because of that, it is very influential to those who play an important role in policymakers. Besides, the precise financial information is also needed by the investors and creditors who are used as a basis for consideration to make profitable investments or vice versa. The objective of this study is to find out the financial information as an investment decision-making tool and to find out the level of health of cooperatives in the financial sector as financial information to investors and creditors. Then, the object of this study is Koperasi Syariah Nuri in East Java. This study employed descriptive quantitative research. The sampling technique is purposive sampling. The data sample used is in the form of financial statements from 2015 to 2017. Based on the data analysis, the results show us that: capital ratio in healthy criteria, cash ratio in liquid criteria, ROA insufficient criteria, ROE insufficient criteria, Fewer criteria generated by the service operational independence ratio. Keywords : Financial information, Financial analysis, and Investment decision

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.

PENGARUH GAYA KEPEMIMPINAN TRANSFORMASIONAL TERHADAP EFEKTIVITAS ORGANISASI MELALUI PENGAMBILAN KEPUTUSAN

2020 ◽  
Author(s):  
Husni Mubaroq ◽  
Donny Kurniawan
Keyword(s):  
Decision Making ◽  
Transformational Leadership ◽  
Organizational Effectiveness ◽  
Leadership Style ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Partial Least Square ◽  
Least Square ◽  
Permanent Employees ◽  
Transformational Leadership Style

This research aims to analyze and find out the influence of transformational leadership style toward organizational effectiveness through decision making.This research is causality (cause and effect) by using a quantitative approach. The object of research is permanent employees at PT Bank Jatim Cabang Utama Surabaya, the number of population are 71 employees and 61 employees as numbered of samples, sampling techniques by using simple random sampling technique. Statistical analysis by using Partial Least Square (PLS) version 1.0. The results showed that the effect of transformational leadership style has positive and significant influence toward organizational effectiveness, leadership transformational style has positive and significant effect toward decision making, decision- making has positive and significant effect toward organizational effectiveness, transformational leadership style has positive and significant effect toward organizational effectiveness through decision making.

Impact of socio-psychological factors on investment decisions: The mediating role of behavioral biases

2020 ◽  
Author(s):  
Sadia Jabeen ◽  
Syed Zulfiqar Ali Shah ◽  
Naheed Sultana ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Social Interaction ◽  
Loss Aversion ◽  
Investment Decision ◽  
Equation Modeling ◽  
Behavioral Biases ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Unlike previous studies that examine the effect of behavioral biases on investor decision-making, this study explores the root causes of behavioral biases and examines the mediating role of behavioral biases in the relationship between different types of emotions and investment decision-making. The cognitive theory of depression, attentional control theory, and prospect theory together provide the foundation and anticipate that stress, depression, anxiety, and social interaction are the major sources of cognitive mistakes that,in turn, affect investment decision-making. Model testing relies upon the data collected from 252stock investors trading in different stock exchanges of Pakistan; in order to test the hypothesized relationship, structural equation modeling has been used. Depression is a major source of loss aversion bias. Anxiety is a strong source of herding. Stress is a major source of representative bias.Social interaction is a root cause of overconfidence. Loss aversion bias, herding, and overconfidence fully mediate the relationship between depression, anxiety, social interaction, and investor decision; however, anxiety has the strongest impact on investor decision via herding bias, while stress has both insignificant direct and indirect effect on investment decision-making. Keywords: Sources of biases, self-efficacy, behavioral pattern, investment decision.

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