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Original Research

ANALYSIS OF HEURISTIC BEHAVIOR ON INVESTMENT DECISION IN INDONESIA AS AN EMERGING MARKET COUNTRY

MUNIR 1, NUGRAHA 2, DISMAN 3, and MAYA SARI 4.

Vol 18, No 02 ( 2023 )   |  DOI: 10.17605/OSF.IO/6RBVX   |   Author Affiliation: Program Doctoral of Management, UPI, Bandung, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 2308-2323   |   Published on: 28-02-2023

Abstract

Stock investment decisions are the process of selecting a specific alternative from the evaluation of a number of alternative stocks that can provide the expected return. Stock investment decisions are influenced by investor behavior factor, there is a behavior bias one heuristic consisting of representativeness, availability bias, anchoring, gambler’s fallacy and overconfidence. This study seeks to analyze the heuristics that drive investment decisions in Indonesia as an emerging market (a case study of millennial investors in West Java). This study uses quantitative methods. The type of data used in this study is primary data. The primary data used in this study are questionnaire-style survey results including heuristic variables (anchoring, availability, gambling errors, conservatism, overconfidence, and representativeness), investment performance, fundamental anomalies, and technical anomalies. Distribute questionnaires to respondents and fill them out. Observation. The study population is millennial (young) investors in the stock market. The sampling methodology for this study used non-probability sampling with random sampling techniques. This survey used a sample of 100 respondents. His SEM (Structural Equation Model) data analysis using PLS (Partial Least Squares) software was used in this study.


Keywords

Heuristic Factors, Investment, Millennial Investors, and PLS