Risk Taking Analysis of Beginner Investors in East Java Indonesia
Damayanti

damayanti_rahmania[at]yahoo.co.id
Sekolah Tinggi Ilmu Ekonomi YPPI Rembang, Indonesia

Abstract

This study research to determine financial behavior, especially risk taking of beginner investors in East Java, Indonesia. To test the variables of financial literacy, overconfidence and risk perception that affect the risk taking of beginner investors. The population in this study were all beginner investors in East Java, Indonesia. The sampling technique used was purposive sampling, using a sample of 150 respondents. This study used a survey and the analysis technique used was multiple linear regression. The results showed that financial literacy had a significant positive effect on risk taking, overconfidence had a significant positive effect on risk taking and risk perception had a significant negative effect on risk taking. Based on the research results, it shows that financial literacy, overconfidence and risk perception are important factors that must be considered in making risk decisions, especially in the application of risk management

Keywords: financial literacy, overconfidence, risk perception, risk taking and beginner investors

Topic: Economics