Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021)

The Effect of Behavioral Biases on Risk Perception

Authors
Ninditya Nareswari1, *, Geodita Woro Bramanti2, Aang Kunaifi3
1,2,3Department of Business Management, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember
*Corresponding author. Email: ninditya@its.ac.id
Corresponding Author
Ninditya Nareswari
Available Online 31 December 2021.
DOI
10.2991/aebmr.k.211226.013How to use a DOI?
Keywords
disposition effect; herding; overconfidence; overreaction; salience; sentiment; risk
Abstract

Behavioral biases can lead investor to have investment decisions that reverse with the principle of rationality. It also cause investors to have bias in risk assessment. This study aims to test the role of behavioral biases (sentiment, overconfidence, salience, overreaction, herding, and disposition effect) on risk perception. Used 150 sample of investors in Indonesia, the result showed that investor sentiment and overconfidence have positive effect on risk perception. Meanwhile overreaction, herding, and disposition effect have negative effect on risk perception. This result indicate that behavioral biases can view risk perception in two different way: as an opportunity and also a threat for investor.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2021
ISBN
978-94-6239-503-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.211226.013How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Ninditya Nareswari
AU  - Geodita Woro Bramanti
AU  - Aang Kunaifi
PY  - 2021
DA  - 2021/12/31
TI  - The Effect of Behavioral Biases on Risk Perception
BT  - Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021)
PB  - Atlantis Press
SP  - 95
EP  - 99
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211226.013
DO  - 10.2991/aebmr.k.211226.013
ID  - Nareswari2021
ER  -