The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand

Purpose – This research consists of Behavioral Finance where it is focused on cognitive bias factors influence on Investment Decision with using the scope of research in three countries which are Indonesia, Thailand, and Japan. Design/methodology/approach – the method of research is categorized as...

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Main Authors: Deddy Marciano, Liliana Inggrit Wijaya, Laurenco Lingguardi Sugianto, Zunairoh Zunairoh
Format: Article
Language:English
Published: Universitas Islam Indonesia 2025-07-01
Series:Jurnal Siasat Bisnis
Subjects:
Online Access:https://journal.uii.ac.id/JSB/article/view/35321
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author Deddy Marciano
Liliana Inggrit Wijaya
Laurenco Lingguardi Sugianto
Zunairoh Zunairoh
author_facet Deddy Marciano
Liliana Inggrit Wijaya
Laurenco Lingguardi Sugianto
Zunairoh Zunairoh
author_sort Deddy Marciano
collection DOAJ
description Purpose – This research consists of Behavioral Finance where it is focused on cognitive bias factors influence on Investment Decision with using the scope of research in three countries which are Indonesia, Thailand, and Japan. Design/methodology/approach – the method of research is categorized as quantitative research where it uses a questionnaire with 232 respondents. Then, the data is processed and analyzed using software SmartPLS 3.0. Findings – The findings reveal that overconfidence and availability bias have a significant positive effect on investment decisions, while herding behavior has a negative effect and anchoring bias shows no significant influence. Research limitations/implications – This research is limited by its relatively small sample size of 232 respondents across three culturally and economically diverse countries, which may affect the generalizability of the findings. Practical implications – The strong influence of overconfidence and availability bias highlights the need for improved investor education focused on risk awareness and critical analysis, especially in the digital era. Also, to prevent irrational behavior driven by herding, financial institutions and regulators should enhance collective financial literacy and promote transparent, data-driven decision-making. Originality/value – This result provides reasonable insight into why there is a difference in results between each country supported with the data and results from the previous research that have been done before.
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series Jurnal Siasat Bisnis
spelling doaj-art-e8483c960e55436ab03bd0aaeabac20a2025-08-20T03:28:10ZengUniversitas Islam IndonesiaJurnal Siasat Bisnis0853-76662528-70012025-07-0129210.20885/jsb.vol29.iss2.art4The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and ThailandDeddy Marciano0Liliana Inggrit Wijaya1Laurenco Lingguardi Sugianto2Zunairoh Zunairoh3Faculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaFaculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaFaculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaFaculty of Business and Economics, University of Surabaya, Surabaya, Indonesia Purpose – This research consists of Behavioral Finance where it is focused on cognitive bias factors influence on Investment Decision with using the scope of research in three countries which are Indonesia, Thailand, and Japan. Design/methodology/approach – the method of research is categorized as quantitative research where it uses a questionnaire with 232 respondents. Then, the data is processed and analyzed using software SmartPLS 3.0. Findings – The findings reveal that overconfidence and availability bias have a significant positive effect on investment decisions, while herding behavior has a negative effect and anchoring bias shows no significant influence. Research limitations/implications – This research is limited by its relatively small sample size of 232 respondents across three culturally and economically diverse countries, which may affect the generalizability of the findings. Practical implications – The strong influence of overconfidence and availability bias highlights the need for improved investor education focused on risk awareness and critical analysis, especially in the digital era. Also, to prevent irrational behavior driven by herding, financial institutions and regulators should enhance collective financial literacy and promote transparent, data-driven decision-making. Originality/value – This result provides reasonable insight into why there is a difference in results between each country supported with the data and results from the previous research that have been done before. https://journal.uii.ac.id/JSB/article/view/35321Overconfidence behaviorherding behaviorAvailability biasAnchoring biasInvestment Decision
spellingShingle Deddy Marciano
Liliana Inggrit Wijaya
Laurenco Lingguardi Sugianto
Zunairoh Zunairoh
The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
Jurnal Siasat Bisnis
Overconfidence behavior
herding behavior
Availability bias
Anchoring bias
Investment Decision
title The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
title_full The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
title_fullStr The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
title_full_unstemmed The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
title_short The effect of behavioral factors on investment decision towards stock market between Indonesia, Japan, and Thailand
title_sort effect of behavioral factors on investment decision towards stock market between indonesia japan and thailand
topic Overconfidence behavior
herding behavior
Availability bias
Anchoring bias
Investment Decision
url https://journal.uii.ac.id/JSB/article/view/35321
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