Escalate : Economics and Business Journal
Vol. 2 No. 01 (2024)

The Influence of Representativeness Bias and Hearding Effect on Investment Decisions in the Capital Market

Ikhsan, Muhammad (Unknown)
Handoko Sakti, Sri (Unknown)
Natser Abdoellah, M (Unknown)
Hendro, Junaidi (Unknown)



Article Info

Publish Date
20 May 2024

Abstract

This research aims to explore the influence of representativeness bias and herding effect behavior on rational investment decisions in the capital market. Quantitative methods were used involving 100 investors who were members of the Beginner Stock Investor (ISP) community in Jakarta. The results of the analysis show that representativeness bias and herding effect behavior have a significant influence on rational investment decisions. These findings highlight the importance of awareness of the psychological factors that influence investor behavior in making investment decisions, as well as the need for a more independent and focused approach to fundamental analysis to ensure more appropriate and optimal investment decisions. The practical implication of this research is that a better understanding of investor behavior and its impact on markets can help investors to overcome these biases and improve the quality of their investment decisions.

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Journal Info

Abbrev

escalate

Publisher

Subject

Economics, Econometrics & Finance

Description

Escalate invites both empirical and theoretical articles that explore micro and macro phenomena. The journals publication scope encompasses a wide array of domains, including macro and micro economics, business strategy and policy, entrepreneurship, finance and accounting studies, human resource ...