What Can Be Done by Overconfidence Bias and Optimism Bias on Investor Decisions?

DOI

10.2991/aebmr.k.210831.008How to use a DOI?

Keywords

Overconfidence Bias, Optimism Bias, Investment Decision

Abstract

This study aims to analyze the relationship between overconfidence bias and optimism of investment decision bias. One approach of investors is to support investment decisions by integrating excessive trust in reasoning, judgment, cognitive abilities, and emotions. To benefit from investment activities, investors must be right in making decisions. Some investors in the capital market tend to show irrational behavior influenced by psycho-logical factors contrary to classical theory. This research uses quantitative methods with data collection tech-niques in questionnaires distributed to investors in Karawang. Samples taken were as many as 120 investors in Karawang. This research was assisted with SPSS 16.0 statistical tools. Testing this study uses a test of validity and reliability. The analytical method uses the classical assumption test, multiple linear regression analysis, hy-pothesis testing. The results showed that overconfidence bias had a positive effect on investment decisions, and optimism bias positively affected investment decisions.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Suhono
AU  - Nugraha
PY  - 2021
DA  - 2021/09/02
TI  - What Can Be Done by Overconfidence Bias and Optimism Bias on Investor Decisions?
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 36
EP  - 40
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.008
DO  - 10.2991/aebmr.k.210831.008
ID  - 2021
ER  -