Student investors: unpacking the behavioral biases in their stock decisions
DOI:
https://doi.org/10.30871/jaba.10771Keywords:
Herding Behavior, Overconfidence, Risk Perception, Risk Tolerance, Loss AversionAbstract
This study examines the psychological underpinnings of stock investment decisions among students at Batam State Polytechnic in the context of Indonesia's rapidly expanding capital market. We investigated the influence of herding behavior, overconfidence, risk perception, risk tolerance, and loss aversion on their investment choices. Using a quantitative approach, we administered a 38-item questionnaire to 139 student investors selected through purposive sampling. PLS-SEM analysis revealed that overconfidence and risk perception significantly affect stock investment decisions. Interestingly, herding behavior, risk tolerance, and loss aversion did not show a substantial effect in this context. These findings provide valuable insights into the specific behavioral biases affecting emerging investors in the Indonesian market.
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