The Effect of Overconfidence Bias, Herding Behavior and Experienced Regret on Investment Decision Making on the Indonesia Stock Exchange

Abstract

Indonesia will experience a surge in investors in 2021 almost twice the number of investors before. Although investment is starting to be favored by the public, not all investors are able to make the right investment decisions. This research examines the influence of overconfidence bias, herding behavior and experienced regret on investment decisions. This study used 184 respondents who live in Jakarta. The sample was obtained through a purposive sampling technique in which respondents had to meet the criteria of having invested in the capital market for at least 1 year and made at least 2 transactions. This study collected data by distributing questionnaires through the Google form and the data was measured using a Likert sca le and analyzed using SmartPLS software. The results obtained in this study are over confidence bias has no effect on investment decisions, herding behavior has no effect on investment decisions and experienced regret has a positive effect on investment.