Emotional Bias, Cognitive Bias and Herding Bias toward Investment Decision for Indonesian Investor

Abstract

In making investment decisions, the role of emotions is very important because of investors irrational symptoms in decision making. This study aims to analyze the effect of emotional bias, cognitive bias, and herding bias on the investment decision making of investors in Indonesia. The research approach used is a quantitative approach. By using primary data from respondents spread throughout Indonesia, this study uses the partial least squares as a data analysis technique. The research hypothesis is that there is a positive influence of emotional bias, cognitive bias and herding bias in the process of making investment decisions