Authors

  • ANGGA BUDIARTO

Abstract

Along with the increasing number of capital market investors in Indonesia, there is an interesting thing toinvestigate is how investors make investment decisions. Before entering the capital market and makinginvestment decisions there are several things into consideration. Financial literacy has a role to know theproduct and how the capital market mechanism. In addition there is a development where psychologicalfactors such as overconfidence, regression aversion bias and risk tolerance also have a role in makinginvestment decisions. The purpose of this study is to determine and discuss the influence of financialliteracy¸ overconfidence, regression aversion bias and risk tolerance to investment decisions. The sampleused is 42 respondents. The measuring tool used is a questionnaire consisting of tests and statements. Dataanalysis using multiple linear regression. This study shows that financial literacy does not affectinvestment decisions this can be due to the existence of financial advice and the category of respondentsclassified as overconfidence so ignore the knowledge they have. As for the variable overconfidence,regression aversion bias and risk tolerance effect on investment decisions.

Keywords: financial literacy, overconfidence, regret aversion bias, risk tolerance, and investmentdecision.

Downloads

Download data is not yet available.

Downloads

Published

2017-05-26
Abstract views: 573 , PDF Downloads: 1550