HERDING BEHAVIOR AMONG NOVICE INVESTORS IN THE INDONESIAN STOCK MARKET
This research aims to understand the herding behavior of novice investors on the Indonesia Stock Exchange, as well as the influence of financial literacy and social referencing in controlling the herd behavior of novice investors. The research uses the Theory of Planned Behavior base model by including financial literacy and social referencing factors as external factors in the social learning process of individual investors. The research was conducted using an online survey approach of 215 investors on the Indonesian Stock Exchange. Respondents were beginner investors with low skills and compared them with experienced investors. The research variable instrument uses an instrument developed by previous research. Data were analyzed using Structural Equation Modeling the research results found that financial literacy had a negative effect on herding attitudes and control of herding behavior. Furthermore, attitudes, subjective norms and behavioral control influence herding intentions and behavior. Social referencing mediates the influence of herding intentions on herding behavior. The results of this research provide implications for the process of increasing investors' knowledge, experience and skills through financial literacy, social learning through social referencing.
Herding Behavior, Theory of Planned Behavior, Financial Literacy, Social Learning Theory.