Investor Behavior and Investment Returns: Mediating Impact of Risk Tolerance in Indonesian Technology Stocks

DOI

10.2991/978-2-38476-595-9_21How to use a DOI?

Keywords

Overconfidence Bias; Herding behavior; Risk tolerance; Investment Decision; Behavioral Finance

Abstract

This study aims to analyze the influence of overconfidence bias and Herding behavior on the investment decisions of individual investors in the technology sub-sector on the Indonesia Stock Exchange (IDX), with Risk tolerance as a mediating variable. The rapid growth of individual investors, dominated by millennials and Gen Z with easy digital access, is not always accompanied by rational investment decisions. This quantitative research uses a survey method with a Likert scale questionnaire distributed to individual investors in Banjarmasin who invest in technology stocks. Data analysis uses path analysis to test the direct and indirect effects of the variables. The findings indicate that overconfidence bias and Herding behavior significantly influence investment decisions. Furthermore, Risk tolerance acts as a partial mediator in the relationship between these two behavioral biases and investment decisions. This research contributes to the development of behavioral finance literature, especially in the dynamic context of the technology sector in Indonesia, and provides practical implications for investors and capital market regulators.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rifqi Amrulloh
AU  - Adista Anjar Diany
AU  - Muhammad Refa Aria Pratama
AU  - Muhammad Reyva Akhsanio
PY  - 2026
DA  - 2026/07/08
TI  - Investor Behavior and Investment Returns: Mediating Impact of Risk Tolerance in Indonesian Technology Stocks
BT  - Proceedings of the  International Conference on Contemporary Risk Studies (ICONIC-RS 2025)
PB  - Atlantis Press
SP  - 265
EP  - 277
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-595-9_21
DO  - 10.2991/978-2-38476-595-9_21
ID  - Amrulloh2026
ER  -