Examining belief-adjustment model and investors overconfidence on investment decision making

Abstract

This research aims to examine whether there is a different judgment between the investor who receives good news followed by bad news and the one who receives bad news followed by good news information order in the step-by-step and the end-of-sequence disclosure pattern by using financial information type and non-financial information type and overconfidence characteristics on investment decision making. This research is included in the experimental design by using a mixed design of between-subjects and within-subject design and classified as experimental research which uses the 2x2x2 method. Participants used in this research are undergraduate business students in STIE Perbanas Surabaya who are studying and/or have completed investment management and/or financial statement analysis courses who will serve as non-professional investors. The results obtained in this research showed that recency effect occurred between the investor who receives good news followed by bad news and the one who receives bad news followed by good news in the step-by-step disclosure pattern, while there is no order effect occurred when the disclosure pattern used is the end-of-the-sequence. Abstrak Penelitian ini bertujuan untuk menguji apakah terdapat perbedaan keputusan antara investor yang menerima informasi positif diikuti informasi negatif dibandingkan dengan investor yang menerima informasi negatif diikuti oleh informasi positif pada pola penyajian step-by-step dan end-of-sequence dengan menggunakan informasi keuangan dan non keuangan dan karakteristik investor overconfidence dalam pengambilan keputusan investasi. Penelitian ini menggunakan desain eksperimen dengan mixed design 2x2x2. Partisipan dalam penelitian ini adalah mahasiswa Akuntansi dan Manajemen STIE Perbanas Surabaya yang telah menempuh mata kuliah Manajemen Investasi dan/atau Analisa Laporan Keuangan yang dapat dikategorikan sebagai investor non-professional. Hasil penelitian ini menunjukkan bahwa recency effect terjadi pada investor yang menerima informasi positif diikuti informasi negatif dan investor yang menerima informasi negatif diikuti informasi positif pada pola penyajian step-by-step, sementara efek urutan tidak terjadi pada pola penyajian end-of-sequence.