INVESTMENT BEHAVIOR IN THE MILLENNIAL GENERATION IN INDONESIA DURING THE COVID-19 PANDEMIC
Keywords:
Confirmation Bias, Financial Distress, overconfidence Bias, Self-attribution bias
Abstract
This research was conducted during a pandemic, the researchers were interested in knowing whether financial distress in the millennial generation in Indonesia was influenced by overconfidence bias, self-attribution bias and confirmation. The sample of this study was 247 respondents using non-probability sampling technique using purposive sampling using SEM (Structural Equation Modeling) analysis technique using the LISREL program. The results of this study show that financial distress is influenced by overconfidence bias, self-attribution bias and confirmation bias. Their investment behavior is not based on good financial literacy so that investing is irrational
References
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Supramono, S., & Wandita, M. (2017). Confirmation Bias, Self-Attribution Bias, Dan Overconfidence Dalam Transaksi Saham. Jurnal Keuangan Dan Perbankan, 21(1), 25–36. https://doi.org/10.26905/jkdp.v21i1.1224
Ware, S. J. (2015). Debt, Poverty, and Personal Financial Distress. American BankruptcyLaw Journal, 89(3), 493–510.
Cheryta, A., Moeljadi, M., & Indrawati, N. K. (2018). Leverage, asymmetric information, firm value, and cash holdings in Indonesia. Jurnal Keuangan dan Perbankan, 22(1), 83-93. https://doi.org/10.26905/jkdp.v22i1.1334
Fu, X., Lin, Y., & Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64–77. https://doi.org/10.1016/j.jbankfin.2013.09.012
Fuad, H. (2021). Dear Milenial, Awas Jangan Utang Buat Beli Saham. Sindonews.Com. https://ekbis.sindonews.com/read/304588/178/dear-milenial-awas-jangan-utang-buat-beli-saham-1610892105#google_vignette
Hoffmann, A. O. I., & Post, T. (2014). Self-attribution bias in consumer financial decision-making: How investment returns affect individuals’ belief in skill. Journal of Behavioral and Experimental Economics , 52, 23–28. https://doi.org/10.1016/j.socec.2014.05.005
Intani, D. W. (2021). Mengenal Bias Konfirmasi, Kecenderungan Melihat Hal secara Subjektif. Idntimes.Com. https://www.idntimes.com/health/fitness/dwi-wahyu-intani/bias-konfirmasi-kecenderungan-melihat-hal-secara-subjektif-c1c2/5
Lajuni, N., Bujang, I., Karia, A. A., & Yacob, Y. (2018). Religiosity, Financial Knowledge, and Financial Behavior Influence on Personal Financial Distress Among Millennial Generation. Jurnal Manajemen Dan Kewirausahaan, 20(2), 92–98. https://doi.org/10.9744/jmk.20.2.92-98
Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2012). Confirmation Bias, Overconfidence, and Investment Performance: Evidence from Stock Message Boards. In SSRN Electronic Journal (Issue October). https://doi.org/10.2139/ssrn.1639470
Purwanto, A. (2021). Kemiskinan pada Masa Pandemi Covid-19: Konsep, Potret dan Strategi Pengentasan. Kompas Pedia. https://kompaspedia.kompas.id/baca/paparan-topik/kemiskinan-pada-masa-pandemi-covid-19-konsep-potret-dan-strategi-pengentasan
Ritika, & Kishor, N. (2020). Development and validation of behavioral biases scale: a SEM approach. Review of Behavioral Finance. https://doi.org/10.1108/RBF-05-2020-0087
Supramono, S., & Wandita, M. (2017). Confirmation Bias, Self-Attribution Bias, Dan Overconfidence Dalam Transaksi Saham. Jurnal Keuangan Dan Perbankan, 21(1), 25–36. https://doi.org/10.26905/jkdp.v21i1.1224
Ware, S. J. (2015). Debt, Poverty, and Personal Financial Distress. American BankruptcyLaw Journal, 89(3), 493–510.
Cheryta, A., Moeljadi, M., & Indrawati, N. K. (2018). Leverage, asymmetric information, firm value, and cash holdings in Indonesia. Jurnal Keuangan dan Perbankan, 22(1), 83-93. https://doi.org/10.26905/jkdp.v22i1.1334
Fu, X., Lin, Y., & Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64–77. https://doi.org/10.1016/j.jbankfin.2013.09.012
Published
2023-10-31
How to Cite
Sunarjanto, N. (2023). INVESTMENT BEHAVIOR IN THE MILLENNIAL GENERATION IN INDONESIA DURING THE COVID-19 PANDEMIC. Arthavidya Jurnal Ilmiah Ekonomi, 25(2), 226-236. https://doi.org/10.37303/a.v25i2.475
Section
Articles
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