Hasnawati, Sri and Ernie, Hendrawaty (2022) Impact of Behavioral Factors among Indonesian Individual Investor towards Investment Decisions during Covid-19 Pandemic. IOSR Journal of Economics and Finance, 13 (1). pp. 43-52. ISSN 2321-5925
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IMPACT of BEHAVIOR FACTOR AMONG INDONESIA INDIVIDUAL INVESTOR TOWARDS INVESTMENT DEC DURING COCID 10 PANDEMIC.pdf Download (334kB) | Preview |
Abstract
The COVID-19 pandemic has caused various economic upheavals around the world, especially in the financial sector. During the pandemic, the stock market in Indonesia showed high volatility mainly due to unpredictable market conditions and unexpected investor behavior. Investors must show their rationality where their financial behavior should not be influenced by behavioral bias factors. Some of the behavioral bias factors that are of concern in this study are the presence of heuristic, prospect, market, and herding biases that affect investment decisions among individual investors in Indonesia during the COVID-19 pandemic. In this study begins with the basis of behavioral finance theory and then the formulation of the hypothesis is tested through the collection of questionnaires which have been obtained 295 respondents. Data were analyzed using a structural equation model (CB-SEM) with the help of LISREL 8.80 software. The results identify that heuristic and market behavioral bias have a positive influence on individual investors' investment decisions, while behavioral bias factors such as prospects and herding negatively influence individual investors' investment decisions during the COVID-19 pandemic in Indonesia. Key Word: behavioral bias; investment decisions; financial behavior; COVID-19; Indonesian Stock Exchange.
| Item Type: | Article |
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| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Fakultas Ekonomi dan Bisnis (FEB) > Prodi Manajemen |
| Depositing User: | Dr Sri Hasnawati |
| Date Deposited: | 21 Mar 2022 00:56 |
| Last Modified: | 21 Mar 2022 00:56 |
| URI: | http://repository.lppm.unila.ac.id/id/eprint/40370 |
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