Behavioural Factors Influence on Investment Decisions

Andrieta Shintia Dewi; Nugraha Nugraha; Imas Purnamasari; Maya Sari; Agus Rahayu; Lili Adi Wibowo

doi:10.2991/978-94-6463-443-3_4

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Behavioural Factors Influence on Investment Decisions

Authors

Andrieta Shintia Dewi¹^{, *}, Nugraha Nugraha¹, Imas Purnamasari¹, Maya Sari¹, Agus Rahayu¹, Lili Adi Wibowo¹

¹Universitas Pendidikan Indonesia, Bandung, Indonesia

^*Corresponding author. Email: andrieta@upi.edu

Corresponding Author

Andrieta Shintia Dewi

Available Online 26 June 2024.

DOI: 10.2991/978-94-6463-443-3_4 How to use a DOI?
Keywords: Behavioural finance; overconfidence bias; representative bias; regret aversion; mental accounting; herd behaviour; Investment Decision
Abstract: In making decisions, investors display irrational behaviour. The decision-making process is considered cognitive, as investors must choose based on various available options. According to the findings, various psychological/behavioural factors negatively impacted the investors’ decision-making. The current research was conducted to determine the influence of behavioural factors on investors’ investment decisions. Five behavioural factors, namely overconfidence bias, representative bias, regret aversion, mental accounting, and herd behaviour, were considered to examine investors’ behavioural biases. The cohort for this study comprised Kerala investors, and the analytical hierarchy process (AHP) was utilized to determine the impact of behavioural factors on investment decisions. Based on the priority vector, it was determined that overconfidence bias and regret aversion substantially impacted Kerala’s investors. The influence of group behaviour on their decision-making decreased.
Copyright: © 2024 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
Series: Advances in Economics, Business and Management Research
Publication Date: 26 June 2024
ISBN: 978-94-6463-443-3
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-443-3_4 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Andrieta Shintia Dewi
AU  - Nugraha Nugraha
AU  - Imas Purnamasari
AU  - Maya Sari
AU  - Agus Rahayu
AU  - Lili Adi Wibowo
PY  - 2024
DA  - 2024/06/26
TI  - Behavioural Factors Influence on Investment Decisions
BT  - Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
PB  - Atlantis Press
SP  - 24
EP  - 29
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-443-3_4
DO  - 10.2991/978-94-6463-443-3_4
ID  - Dewi2024
ER  -

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