The Determinants of Irrational Investment Decisions Among Individual Investors in Indonesia Stock Exchange

DOI

10.2991/aebmr.k.220501.034How to use a DOI?

Keywords

Financial literacy; representative bias; availability bias; irrational investment decision; internal locus of control

Abstract

The purpose of this study is to examine and analyze financial literacy, representative bias, and availability bias in predicting irrational investment decisions. This study also analyses the moderating effect of internal locus of control on the prediction of representative bias and availability bias on irrational investment decisions. The sample of this study is collected with a non-probability sampling method, which is purposive sampling, and the data is collected by questionnaire. This study uses Smart PLS version 3.3.3 to process the collected data. The results of this study find that representative bias and availability bias have a significant prediction on irrational investment decisions, whereas financial literacy has no significant prediction. This study also finds that internal locus of control has no moderating role in the prediction of representative bias and availability bias on irrational investment decisions.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

Download article (PDF)

TY  - CONF
AU  - Dharma Viryajaya
AU  - Sarwo Edy Handoyo
PY  - 2022
DA  - 2022/05/11
TI  - The Determinants of Irrational Investment Decisions Among Individual Investors in Indonesia Stock Exchange
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 219
EP  - 225
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.034
DO  - 10.2991/aebmr.k.220501.034
ID  - Viryajaya2022
ER  -