Young Investor's Decisions in the Stock Market: The Role of Herding and Third-Party Recommendations
Keywords:
Overconfidence, risk perception, advocate recommendation, investment decision, herding behaviourAbstract
This research focuses on the influence of overconfidence and risk perception on investment decisions and advocate recommendations, as well as the ability of herding behaviour as a moderating variable at PT Phintraco Sekuritas Surabaya. Uses quantitative methods with 96 investor respondents whose data was collected through questionnaires. Research findings show that overconfidence and risk perception do not significantly influence investment decisions, whereas advocate recommendations do. Although herding behaviour is not a moderating variable, research indicates that it substantially affects investment decisions when treated as an independent variable. Investors tend to consider the decisions of other investors when making investment decisions, which influences the quality of their choices. Furthermore, predominantly students, novice investors often prioritize other investors' opinions and refrain from using personal analysis results to make investment decisions. This research can provide valuable insights to the Indonesian Stock Exchange and securities companies to continue providing intensive outreach on the importance of investment and offering investors training, workshops, and studies. The hope is that in the future, investors will become more informed and able to generate income from their investments. This can lead to investors no longer being afraid to invest because they feel they have sufficient knowledge and can make informed decisions. By encouraging an increase in people's income and increased capital for issuers, the economy can further develop
References
Abdillah, W., & Hartono, J. (2014). Partial Least Square (PLS). Andi.
Afriani, D., & Halmawati, H. (2019). Pengaruh Cognitive Dissonance Bias, Overconfidence Bias Dan Herding Bias Terhadap Pengambilan Keputusan Investasi. JURNAL EKSPLORASI AKUNTANSI, 1(4), 1650–1665. https://doi.org/10.24036/jea.v1i4.168
Akbar, M., Salman, A., Mughal, K. S., & Makarevic, N. (2016). Factors Affecting the Individual Decision Making: a Case Study of Islamabad Stock Exchange. European Journal of Economic Studies. https://doi.org/10.13187/es.2016.15.242
Amelinda, R., & Ongkowidjaja, Y. P. (2022). Pengaruh Literasi Keuangan, Overconfidence, dan Pendidikan Investor terhadap Keputusan Investasi Saham di Bursa Efek Indonesia (BEI). Syntax Literate: Jurnal Ilmiah Indonesia , 7(7).
Anggraini, F., & Mulyani, E. (2022). Pengaruh Informasi Akuntansi, Persepsi Risiko dan Citra Perusahaan dalam Pengambilan Keputusan Investasi di Masa Pandemi Covid-19. JURNAL EKSPLORASI AKUNTANSI, 4(1), 25–39. https://doi.org/10.24036/jea.v4i1.486
Anisa, N. (2012). HUBUNGAN FAKTOR DEMOGRAFI DENGAN BIAS PEMIKIRAN INVESTOR DI PASAR MODAL. Journal of Business and Banking, 2(2), 123. https://doi.org/10.14414/jbb.v2i2.169
Antony, A., & Joseph, A. I. (2017). Influence of Behavioural Factors Affecting Investment Decision—An AHP Analysis. Metamorphosis: A Journal of Management Research, 16(2), 107–114. https://doi.org/10.1177/0972622517738833
Aristiwati, I. N., & Hidayatullah, S. K. (2021). PENGARUH HERDING DAN OVERCONFIDENCE TERHADAP KEPUTUSAN INVESTASI (Studi Pada Nasabah Emas Kantor Pegadaian Ungaran). Among Makarti, 14(1). https://doi.org/10.52353/ama.v14i1.202
Asandimitra, N., & Kautsar, A. (2019). The influence of financial information, financial self efficacy, and emotional intelligence to financial management behavior of female lecturer. Humanities and Social Sciences Reviews, 7(6), 1112–1124. https://doi.org/10.18510/hssr.2019.76160
Ayu Wulandari, D., & Iramani, Rr. (2014). STUDI EXPERIENCED REGRET, RISK TOLERANCE, OVERCONFIDANCE DAN RISK PERCEPTION PADA PENGAMBILAN KEPUTUSAN INVESTASI. Journal of Business and Banking, 4(1), 55. https://doi.org/10.14414/jbb.v4i1.293
Banerji, J., Kundu, K., & Alam, P. A. (2020). Influence of behavioural biases on investment behaviour. SCMS Journal of Indian Management, 17(1), 81–98.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
BenMabrouk, H. (2018). Cross-herding behavior between the stock market and the crude oil market during financial distress. Managerial Finance, 44(4), 439–458. https://doi.org/10.1108/MF-09-2017-0363
Bryman, A., & Bell, E. (2007). Business Research Method. Oxford.
Budiarto, A., & Susanti. (2017). PENGARUH FINANCIAL LITERACY, OVERCONFIDENCE, REGRET AVERSION BIAS, DAN RISK TOLERANCE TERHADAP KEPUTUSAN INVESTASI. Jurnal Ilmu Manajemen, 5(2).
Chin, W. W., & Todd, P. A. (1995). On the Use, Usefulness, and Ease of Use of Structural Equation Modeling in MIS Research: A Note of Caution. In MIS Quarterly (Vol. 19, Issue 2, p. 237). https://doi.org/10.2307/249690
Choi, S. (2016). Herding among local individual investors: Evidence from online and offline trading. Economics Letters, 144, 4–6. https://doi.org/10.1016/j.econlet.2016.04.030
Daniati, R. R., & Prasetyo, H. D. (2022). PENGARUH HERDING DAN OVERCONFIDENCE TERHADAP KEPUTUSAN INVESTASI. Jurnal Revenue : Jurnal Ilmiah Akuntansi, 3(1), 10–14. https://doi.org/10.46306/rev.v3i1.92
Dewan, P., & Dharni, K. (2019). Herding Behaviour in Investment Decision Making: A Review. Journal of Economics, Management and Trade, 1–12. https://doi.org/10.9734/jemt/2019/v24i230160
Ferennita, C., Hasan, H., & Astuti, E. B. (2022). Pengaruh Literasi Keuangan, Advocate Recommendation dan Overconfidence terhadap Pengambilan Keputusan Investasi Saham Oleh Investor Muda di Kota Semarang (Studi Pada Investor Muda yang Terdaftar di Phintraco Sekuritas Cabang Semarang). Journal of Accounting and Finance, 1(1). https://doi.org/10.31942/jafin.v1i1.7009
Fridana, I. O., & Asandimitra, N. (2020). ANALISIS FAKTOR YANG MEMENGARUHI KEPUTUSAN INVESTASI (STUDI PADA MAHASISWI DI SURABAYA). Jurnal Muara Ilmu Ekonomi Dan Bisnis, 4(2), 396. https://doi.org/10.24912/jmieb.v4i2.8729
Garg, A., & Gulati, R. (2013). Do investors herd in Indian market. DECISION, 40(3), 181–196. https://doi.org/10.1007/s40622-013-0015-z
Ghauri, P., & Gronhaug, K. (2010). Research Method in Business Studies (4th ed.). Pearson.
Ghozali, I. Latan, H. (2012). Partial Least Square : Konsep, Teknik dan Aplikasi SmartPLS 2.0 M3 (Badan Penerbit Universitas Diponegoro, Ed.).
Goodfellow, C., Bohl, M. T., & Gebka, B. (2009). Together we invest? Individual and institutional investors’ trading behaviour in Poland. International Review of Financial Analysis, 18(4), 212–221. https://doi.org/10.1016/j.irfa.2009.03.002
Hair Jr, J. F. (2020). Next-generation prediction metrics for composite-based PLS-SEM. Industrial Management & Data Systems, 121(1), 5–11. https://doi.org/10.1108/IMDS-08-2020-0505
Indārs, E. R., Savin, A., & Lublóy, Á. (2019). Herding behaviour in an emerging market: Evidence from the Moscow Exchange. Emerging Markets Review, 38, 468–487. https://doi.org/10.1016/j.ememar.2018.12.002
Kanojia, S., Singh, D., & Goswami, A. (2022). Impact of herding on the returns in the Indian stock market: an empirical study. Review of Behavioral Finance, 14(1), 115–129. https://doi.org/10.1108/RBF-01-2020-0017
Khoidah, I., & Wijayanto, A. (2017). Fenomena Anomali Pasar di Bursa Efek Indonesia dan Bursa Efek Singapura. Management Analysis Journal, 6(1), 112–122.
Kibegwa, J., Namiinda, B., & Nzioki, S. (2017). Influence of Market Information on Decision to Invest through Nairobi Securities Exchange among Youth Groups of Kisumu County in Kenya. IOSR Journal of Business and Management, 19(07), 68–76. https://doi.org/10.9790/487X-1907026876
Loris, R. P., & Jayanto, P. Y. (2021). THE EFFECT OF REPRESENTATIVENESS, AVAILABILITY, ANCHORING, RISK PERCEPTION, AND HERDING ON INVESTMENT DECISIONS SYARIAH INVESTORS. Jurnal Akuntansi, 11(1), 81–92. https://doi.org/10.33369/j.akuntansi.11.1.81-92
Ngoc, L. T. B. (2013). Behavior Pattern of Individual Investors in Stock Market. International Journal of Business and Management, 9(1). https://doi.org/10.5539/ijbm.v9n1p1
Pelawi, J., & Suliati, R. (2021). Analisis Faktor-Faktor Yang Mempengaruhi Minat Investasi Individu di Pasar Modal Saham di Tengah Pandemi Covid-19. JURNAL SYNTAX IMPERATIF : Jurnal Ilmu Sosial Dan Pendidikan, 2(5), 350. https://doi.org/10.36418/syntax-imperatif.v2i5.115
Poshakwale, S., & Mandal, A. (2014). Investor Behaviour and Herding: Evidence from the National Stock Exchange in India. Journal of Emerging Market Finance, 13(2), 197–216. https://doi.org/10.1177/0972652714541341
Pradhana, R. W. (2018). ENGARUH FINANCIAL LITERACY, COGNITIVE BIAS, DAN EMOTIONAL BIAS TERHADAP KEPUTUSAN INVESTASI (STUDI PADA INVESTOR GALERI INVESTASI UNIVERSITAS NEGERI SURABAYA. Jurnal Ilmu Manajemen, 6(3).
Pradikasari, E., & Isbanah, Y. (2018). Pengaruh Financial Literacy, Illussion of Control dan Risk Perception Terhadap Keputusan Investasi di Surabaya. Jurnal Ilmu Manajemen (JIM), 6(4), 424–434.
Pratiwi, N. P. A. I. (2016). PENGARUH LITERASI KEUANGAN, PERCAYA DIRI BERLEBIH, DAN TOLERANSI RISIKO PADA PENGAMBILAN KEPUTUSAN INVESTASI MASYARAKAT SIDOARJO. STIE Perbanas.
Rabbani, I. A., & Saputra, I. (2022). FINANCIAL LITERACY DAN OVERCONFIDENCE DALAM KEPUTUSAN INVESTASI. Journal Of International Management, 1(1).
Ramdani, F. N. (2018). ANALISIS PENGARUH REPRESENTATIVENESS BIAS DAN HERDING BEHAVIOR DALAM PENGAMBILAN KEPUTUSAN INVESTASI (STUDI PADA MAHASISWA DI YOGYAKARTA). Universitas Islam Indonesia.
Rijalul Fikri, Rini Frima, & Eka Rosalina. (2022). Pengaruh Herding Factor dan Overconfidence terhadap Kualitas Pengambilan Keputusan Investasi Saham pada Generasi Z (Studi pada Mahasiswa Jurusan Akuntansi Program Studi D-IV Akuntansi Politeknik Negeri Padang). Jurnal Akuntansi, Bisnis Dan Ekonomi Indonesia (JABEI), 1(2), 39–45. https://doi.org/10.30630/jabei.v1i2.28
Rona, I. W., & Sinarwati, N. K. (2021). Pengaruh Herding Bias dan Overconfidence Bias terhadap Pengambilan Keputusan Investasi. Studi Akuntansi Dan Keuangan Indonesia, 4(2), 104–130. https://doi.org/10.21632/saki.4.2.104-130
Salisbury, W.D., Chin, W.W., Gopal, A., dan Newsted, P. R. (2002). Research Report: Better Theory Through Measurement Developing A Scale to Capture Consensus on Appropriation. Information Systems Research, 13(1), 91–103.
Saunders, M. N. K., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students (5th ed.). Pearson Education.
Sekaran, U. (2008). Metode Penelitiaan Bisnis. Salemba Empat.
Sekuritas. (2020). Profile PT Phintraco Securitas. Https://Phintracosekuritas.Com.
Septiyani. (2019). Pengaruh Herding Behavior Dan Experienced Regret Terhadap Keputusan Investasi Di Lampung.
Setiawan, Y. C., Atahau, A. D. R., & Robiyanto, R. (2018). Cognitive Dissonance Bias, Overconfidence Bias dan Herding Bias dalam Pengambilan Keputusan Investasi Saham. AFRE (Accounting and Financial Review), 1(1). https://doi.org/10.26905/afr.v1i1.1745
Shukla, A., Rushdi, D., Jamal, N., Katiyar, D., & Chandra, R. (2020). Impact of behavioural biases on investment decisions ‘A systematic review”. International Journal of Management, 11(4), 68-76.
Sugiyono. (2016). Metodologi Penelitian Kuantitatif, Kualitatif, dan R&D. CV Alfabeta.
Velumoni D., & Rau S. S. (2015). Factors influencing equity investment decision. International Business Management. International Business Management, 9(6), 1359–1362.
Waweru, N. M., Munyoki, E., & Uliana, E. (2008). The effects of behavioural factors in investment decision-making: a survey of institutional investors operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Markets, 1(1), 24. https://doi.org/10.1504/IJBEM.2008.019243
Yolanda, Y., & Tasman, A. (2020). Pengaruh Financial Literacy dan Risk Perception terhadap Keputusan Investasi Generasi Millennial Kota Padang. Jurnal Ecogen, 3(1), 144. https://doi.org/10.24036/jmpe.v3i1.8533
Yulfiswandi, Y., Jocelynn, E., & Robin, R. (2022). Property investment decision in Batam City. FORUM EKONOMI, 24(2), 315–323. https://doi.org/10.30872/jfor.v24i2.10753
Yusnita, R. T. (2021). Keputusan Investasi Keluarga Ditinjau dari Perilaku Herding dan Risk Tolerance serta Faktor Demografi: Studi di Kota Tasikmalaya. Image : Jurnal Riset Manajemen, 10(2), 98–112. https://doi.org/10.17509/image.v10i2.35489
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Rachma Agustina, Bambang Sutopo, Nofi Khofifah Safitri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
