How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship
This research aims to determine the influence of overconfidence bias on investment decisions, which is mediated by risk perception and moderated by financial literacy. This research is quantitative research using causality analysis. The research instrument is a questionnaire with a likert scale of...
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| Format: | Article |
| Language: | English |
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Institut Agama Islam Sunan Giri Ponorogo
2024-12-01
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| Series: | Indonesian Journal of Islamic Economics and Finance |
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| Online Access: | https://ejournal.insuriponorogo.ac.id/index.php/jief/article/view/6067 |
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| _version_ | 1849700832915750912 |
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| author | Vella Mirfaqoh Ali Muktiyanto Ira Geraldina Sri Yusriani |
| author_facet | Vella Mirfaqoh Ali Muktiyanto Ira Geraldina Sri Yusriani |
| author_sort | Vella Mirfaqoh |
| collection | DOAJ |
| description |
This research aims to determine the influence of overconfidence bias on investment decisions, which is mediated by risk perception and moderated by financial literacy. This research is quantitative research using causality analysis. The research instrument is a questionnaire with a likert scale of one to five points. The research used a random sampling technique with 400 capital market investors in Indonesia. Data were analyzed by SmartPLS4 software using the SEM PLS method. The research results show that overconfidence bias and risk perception positively affect investment decisions. Risk perception can positively and significantly mediate the relationship between overconfidence bias and investment decisions. Other results prove that financial literacy cannot moderate the relationship between overconfidence bias and investment decisions. This research implies that investors are expected to make investment decisions rationally and avoid detrimental investments.
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| format | Article |
| id | doaj-art-a00d1d9dc2924f96b07388eb3c6e9acf |
| institution | DOAJ |
| issn | 2808-1102 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Institut Agama Islam Sunan Giri Ponorogo |
| record_format | Article |
| series | Indonesian Journal of Islamic Economics and Finance |
| spelling | doaj-art-a00d1d9dc2924f96b07388eb3c6e9acf2025-08-20T03:18:09ZengInstitut Agama Islam Sunan Giri PonorogoIndonesian Journal of Islamic Economics and Finance2808-11022024-12-014210.37680/ijief.v4i2.6067How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions RelationshipVella Mirfaqoh0Ali Muktiyanto1Ira Geraldina2Sri Yusriani3Universitas TerbukaUniversitas TerbukaUniversitas TerbukaUniversiti Sains Malaysia This research aims to determine the influence of overconfidence bias on investment decisions, which is mediated by risk perception and moderated by financial literacy. This research is quantitative research using causality analysis. The research instrument is a questionnaire with a likert scale of one to five points. The research used a random sampling technique with 400 capital market investors in Indonesia. Data were analyzed by SmartPLS4 software using the SEM PLS method. The research results show that overconfidence bias and risk perception positively affect investment decisions. Risk perception can positively and significantly mediate the relationship between overconfidence bias and investment decisions. Other results prove that financial literacy cannot moderate the relationship between overconfidence bias and investment decisions. This research implies that investors are expected to make investment decisions rationally and avoid detrimental investments. https://ejournal.insuriponorogo.ac.id/index.php/jief/article/view/6067Overconfidence BiasInvestment DecisionsRisk PerceptionFinancial LiteracyQuantitative Research |
| spellingShingle | Vella Mirfaqoh Ali Muktiyanto Ira Geraldina Sri Yusriani How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship Indonesian Journal of Islamic Economics and Finance Overconfidence Bias Investment Decisions Risk Perception Financial Literacy Quantitative Research |
| title | How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship |
| title_full | How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship |
| title_fullStr | How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship |
| title_full_unstemmed | How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship |
| title_short | How Risk Perception aand Financial Literacy Effect Overconfidence Bias and Investment Decisions Relationship |
| title_sort | how risk perception aand financial literacy effect overconfidence bias and investment decisions relationship |
| topic | Overconfidence Bias Investment Decisions Risk Perception Financial Literacy Quantitative Research |
| url | https://ejournal.insuriponorogo.ac.id/index.php/jief/article/view/6067 |
| work_keys_str_mv | AT vellamirfaqoh howriskperceptionaandfinancialliteracyeffectoverconfidencebiasandinvestmentdecisionsrelationship AT alimuktiyanto howriskperceptionaandfinancialliteracyeffectoverconfidencebiasandinvestmentdecisionsrelationship AT irageraldina howriskperceptionaandfinancialliteracyeffectoverconfidencebiasandinvestmentdecisionsrelationship AT sriyusriani howriskperceptionaandfinancialliteracyeffectoverconfidencebiasandinvestmentdecisionsrelationship |