Open AccessThe The Impact of Behavioral Aspects on Investment Decision Making
Author(s) -
Ninditya Nareswari,
Alifia Salsabila Balqista,
Nugroho Priyo Negoro
Publication year - 2021
Publication title -
jurnal manajemen dan keuangan/jurnal manajemen and keuangan
Language(s) - English
Resource type - Journals
eISSN - 2615-1316
pISSN - 2252-844X
DOI - 10.33059/jmk.v10i1.3125
Subject(s) - overconfidence effect , salience (neuroscience) , herd behavior , investment decisions , investment (military) , affect (linguistics) , sample (material) , behavioral economics , econometrics , structural equation modeling , cognitive bias , psychology , economics , financial economics , actuarial science , herding , social psychology , microeconomics , cognition , cognitive psychology , statistics , mathematics , law , chemistry , forestry , communication , chromatography , political science , neuroscience , politics , geography
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.