OVERCONFIDENCE IN MILLENNIAL STOCK INVESTORS IN INDONESIA: A SOCIAL NETWORK THEORY PERSPECTIVE
This study aims to determine the effect of financial literacy, investor skills, family ties and friendship ties on the overconfidence behavior of millennial stock investors in Indonesia. This study uses the perspective of social network theories that have never been used to examine the factors that influence overconfidence. This research is a type of quantitative research conducted to see the effect of financial literacy variables, investor skills, family ties and friendship ties on the overconfidence behavior of millennial stock investors by controlling for variables of gender, age and education level. Data was collected using a questionnaire measured using a semantic differential scale. The testing method carried out in this study uses the AMOS SEM statistical method. Based on the test results, it is found that the variables of financial literacy, investor skills, family ties and friendship ties have a significant positive effect on the overconfidence behavior of millennial stock investors. Although it gives good results, this research is not free from weaknesses. For further research, it is hoped that it will be able to overcome these limitations so that it can increase a more comprehensive understanding of the role of social network theory on behavior including bias in one's behavior.
Overconfidence, Financial Literacy, Investor Skill, Family Ties, Friendship Ties