Pengaruh Overconfidence Bias dan Herding Bias terhadap Investment Intention pada Generasi Z
DOI:
https://doi.org/10.51278/bce.v4i3.1525Keywords:
Overconfidence bias, Herding Bias, Investment Intention, Generation ZAbstract
This study explores the investment behavior of Generation Z, specifically focusing on individuals aged 18-27, who are in the emerging adult phase. This study aims to look at the effect of overconfidence bias and herding bias on the investment intention of generation Z in the emerging adult phase. This research uses associative methods with a quantitative approach. The technique and data analysis used is the Structural Equation Modeling (SEM) Partial Least Square (PLS) approach with the SmartPLS version 4 application program. When testing hypotheses, research uses an error tolerance of 10%. The results of 100 respondents in this study show that overconfidence bias has a significant effect on investment intention in generation z emerging adult phase while herding bias does not have a significant effect on investment intention in generation z emerging adult phase. The effect of the variables overconfidence bias and herding on investment intention is 40.9%. The results of this study are expected to provide education about the influence of overconfidence bias and herding bias on generation Z's investment intention and can be a reference for further research.
References
Ahmad, F. (2020). Personality traits as predictor of cognitive biases: Moderating role of risk-attitude. Qualitative Research in Financial Markets, 12(4), 465–484. https://doi.org/10.1108/QRFM-10-2019-0123
Arnett, J. J. (2000). Emerging adulthood: A theory of development from the late teens through the twenties. American Psychologist, 55(5), 469–480. https://doi.org/10.1037/0003-066X.55.5.469
Asmilia, N. (2019). Technical analysis: The role of investor psychology mediating on stock investment behavior. EAJ (Economic and Accounting Journal), 2(1), 26–34. https://doi.org/10.32493/eaj.v2i1.y2019.p26-34
BPS-Statistics Indonesia. (2024, Maret 1). Foreign Direct Investment Realization by Province—Statistical Data. https://www.bps.go.id/en/statistics-table/2/MTg0MCMy/foreign-direct-investment-realization-by-province.html
Cao, M. M., Nguyen, N.-T., & Tran, T.-T. (2021). Behavioral factors on individual investors’ decision making and investment performance: A survey from the vietnam stock market. The Journal of Asian Finance, Economics and Business, 8(3), 845–853. https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.0845
Caparrelli, F., D’Arcangelis, A. M., & Cassuto, A. (2004). Herding in the Italian Stock Market: A Case of Behavioral Finance. Journal of Behavioral Finance, 5(4), 222–230. https://doi.org/10.1207/s15427579jpfm0504_5
Chandra, A., & Kumar, R. (2011). Determinants of individual investor behaviour: An orthogonal linear transformation approach. International Journal of Innovation Science, 4(Nos 3/4), 693–712.
Economou, F., Kostakis, A., & Philippas, N. (2011). Cross-country effects in herding behaviour: Evidence from four south European markets. Journal of International Financial Markets, Institutions and Money, 21(3), 443–460. https://doi.org/10.1016/j.intfin.2011.01.005
Gavrilakis, N., & Floros, C. (2022). The impact of heuristic and herding biases on portfolio construction and performance: The case of Greece. Review of Behavioral Finance, 14(3), 436–462. https://doi.org/10.1108/RBF-11-2020-0295
Gervais, S., & Odean, T. (2001). Learning to be overconfident. The Review of Financial Studies, 14(1).
Guney, Y., Kallinterakis, V., & Komba, G. (2017). Herding in frontier markets: Evidence from African stock exchanges. Journal of International Financial Markets, Institutions and Money, 47, 152–175. https://doi.org/10.1016/j.intfin.2016.11.001
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (Third edition). SAGE.
Hoffmann, A. O. I., Post, T., & Pennings, J. M. E. (2015). How investor perceptions drive actual trading and risk-taking behavior. Journal of Behavioral Finance, 16(1), 94–103. https://doi.org/10.1080/15427560.2015.1000332
Hwang, S., & Salmon, M. (2003). Herding and market stress. Journal of Empirical Finance, 11(4), 585–616.
Kengatharan, L., & Kengatharan, N. (2014). The Influence of Behavioral Factors in Making Investment Decisions and Performance: Study on Investors of Colombo Stock Exchange, Sri Lanka. Asian Journal of Finance & Accounting, 6(1), 1. https://doi.org/10.5296/ajfa.v6i1.4893
Kumaran, S. (2013). Impact of personal epistemology, heuristics and personal attributes on investment decisions. International Journal of Financial Research, 4(3), p62. https://doi.org/10.5430/ijfr.v4n3p62
Kustodian Sentral Efek Indonesia. (2024). Statistik pasar modal Indonesia. Author. https://www.ksei.co.id/files/Statistik_Publik_Januari_2024_v3.pdf
Mamidala, V., Kumari, P., & Singh, D. (2023). Should I invest or not? Investigating the role of biases and status quo. Qualitative Research in Financial Markets, ahead-of-print(ahead-of-print), ahead-of-print. https://doi.org/10.1108/QRFM-12-2022-0198
Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77. https://doi.org/10.2307/2975974
Nigam, R. M., Srivastava, S., & Banwet, D. K. (2018). Behavioral mediators of financial decision making – a state-of-art literature review. Review of Behavioral Finance, 10(1), 2–41. https://doi.org/10.1108/RBF-07-2016-0047
Nofsinger, J. R., & Sias, R. W. (1999). Herding and feedback trading by institutional and individual investors. The Journal of Finance, 54(6), 2263–2295. https://doi.org/10.1111/0022-1082.00188
Nugraha, B. A., & Rahadi, R. A. (2021). Analysis of young generations toward stock investment intention: A preliminary study in an Emerging Market. Journal of Accounting and Investment, 22(1), 80–103. https://doi.org/10.18196/jai.v22i1.9606
Nyamute, W. I. (2016). Investor behavior, investor demographic characteristics, investment style and individual investor portfolio performance. Doctor of Philosophy in Business Administration, 117–120.
Paramita, S., Isbanah, Y., & Purwohandoko, P. (2018). Bias kognitif dan personal traits: Studi perilaku investasi muda di surabaya. JRMSI - Jurnal Riset Manajemen Sains Indonesia, 9(2), 214–235. https://doi.org/10.21009/JRMSI.009.2.03
Robotis, G. (2018). Herding behavior among exchange-traded funds. Journal of Behavioral Finance, 19(4), 483–497.
Sugiyono. (2017). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta.
Wei, J. (2017). Behavioral biases in the corporate bond market. Journal of Empirical Finance, 46, 34–55. https://doi.org/10.1016/j.jempfin.2017.12.003
Zahera, S. A., & Bansal, R. (2018). Do investors exhibit behavioral biases in investment decision making? A systematic review. Qualitative Research in Financial Markets, 10(2), 210–251. https://doi.org/10.1108/QRFM-04-2017-0028
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dave Reynard, Njo Anastasia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
