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BEHAVIORAL BIAS (AVAILABILITY, REPRESENTATIVENESS, ANCHORING, AND CONFIRMATION) TOWARD INVESTMENT DECISION-MAKING

Authors: Mardiana R; Yossinomita Yossinomita; M Haris Saputra; Mandasari R; Yulia D Kartika;

BEHAVIORAL BIAS (AVAILABILITY, REPRESENTATIVENESS, ANCHORING, AND CONFIRMATION) TOWARD INVESTMENT DECISION-MAKING

Abstract

When making investment decisions, retail investors tend to rely on shortcuts in thinking to process the information and data they get. This creates illogical thinking based on emotions or momentary judgments that can result in less-than-optimal investment performance and even losses. This research investigates the relationship between behavioral financial biases (like availability, representativeness, anchoring, and confirmation) and investment decision-making. This study method uses purposive sampling with certain characteristics. Data was collected from 130 retail investors for 3 months in 2024 and analyzed with SPSS Statistics. The research results show that confirmation bias and representativeness bias positively affect investment decision-making. However, anchoring bias and availability bias do not significantly affect investment decision-making. In addition, confirmation bias, representativeness bias, anchoring bias, and availability bias simultaneously positively affect investment decision-making. Financial behavioral biases that can influence investors are confirmation bias and representativeness bias, where retail investors tend to look for information according to their views and similarities based on certain stereotypes, which can reduce or cause losses in stock investments. Keywords: Anchoring Bias; Availability Bias; Confirmation Bias; Representativeness Bias; Investment Decision-Making

Keywords

Availability Bias, HF5001-6182, Confirmation Bias, Investment Decision-Making, Representativeness Bias, Business, Anchoring Bias

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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