The Effect of Behavioral Biases on Risk Perception
Authors
Ninditya Nareswari1, *, Geodita Woro Bramanti2, Aang Kunaifi3
1,2,3Department of Business Management, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember
*Corresponding author. Email: ninditya@its.ac.id
Corresponding Author
Ninditya Nareswari
Available Online 31 December 2021.
- DOI
- 10.2991/aebmr.k.211226.013How to use a DOI?
- Keywords
- disposition effect; herding; overconfidence; overreaction; salience; sentiment; risk
- Abstract
Behavioral biases can lead investor to have investment decisions that reverse with the principle of rationality. It also cause investors to have bias in risk assessment. This study aims to test the role of behavioral biases (sentiment, overconfidence, salience, overreaction, herding, and disposition effect) on risk perception. Used 150 sample of investors in Indonesia, the result showed that investor sentiment and overconfidence have positive effect on risk perception. Meanwhile overreaction, herding, and disposition effect have negative effect on risk perception. This result indicate that behavioral biases can view risk perception in two different way: as an opportunity and also a threat for investor.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Ninditya Nareswari AU - Geodita Woro Bramanti AU - Aang Kunaifi PY - 2021 DA - 2021/12/31 TI - The Effect of Behavioral Biases on Risk Perception BT - Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021) PB - Atlantis Press SP - 95 EP - 99 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.211226.013 DO - 10.2991/aebmr.k.211226.013 ID - Nareswari2021 ER -