Hasnawati, Sri and Hendrawaty, Ernie and Wanda, Septian (2022) INVESTMENT IN PANDEMIC: DO BEHAVIORAL AND DEMOGRAPHIC FACTORS PLAY A ROLE? INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE STUDIES, 4 (03). pp. 314-342. ISSN 1309-8055 (Online)
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Abstract
The roots of financial conduct can be traced to psychology, which demonstrates that individuals cannot make decisions without being influenced by psychological conditions and demographic considerations. In addition, numerous empirical research findings about financial-based psychology have surfaced, strengthening suspicions about conventional financial conceptions. Therefore, the study of financial behavior should be expanded and investigated in greater depth to understand better how behavioral aspects influence individual investors. The study's primary objective is to investigate the behavioral bias factors that influence the investment decisions of individual investors in the Indonesian stock market during the COVID-19 pandemic. The study will also attempt to analyze how behavioral biases influence the investment decisions ofindividual investors in the capital market, taking demographic factors into account. The study sample was comprised of 238 questionnaire recipients. A quantitative investigation employs primary data. The statistical testing instrument employed is SmartPLS version 3.3.2. Non-probability sampling is the method employed. During the COVID-19 pandemic, the data demonstrated that behavioral bias factors strongly influenced investment decisions. In contrast, demographic characteristics such as gender, age, education, income, and overall investment experience did not significantly influence the investment decisions of individual investors during the COVID-19 pandemic, either directly or by mitigating the aforementioned behavioral bias effects. Nevertheless, there are significant gender differences in the moderating effect of heuristic and market bias on investment decisions. In addition, the investment experience variable reveals a significant difference between investors with a high level of experience and those with a low level of experience concerning the moderating effect of prospect bias on investment decision-making. This study has ramifications for investors' investment decisions. Behavioral and demographic aspects might be considered by investors when choosing investments. Keywords: Behavioral Bias, Investment Decisions, Financial Behavior, Demographics
| Item Type: | Article |
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| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Fakultas Ekonomi dan Bisnis (FEB) > Prodi Magister Manajemen |
| Depositing User: | Dr Sri Hasnawati |
| Date Deposited: | 13 Dec 2022 08:43 |
| Last Modified: | 13 Dec 2022 08:43 |
| URI: | http://repository.lppm.unila.ac.id/id/eprint/47194 |
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