FINANCIAL LITERATURE AND BEHAVIORAL BIAS OF INDIVIDUAL INVESTORS: EMPIRICAL RESEARCH IN INDONESIA
Andhi Wijayanto, Siti Ridloah, Kris Brantas Abiprayu, Made Virma Permana and Ascariena Rafinda

Universitas Negeri Semarang
Gedung L, Kampus Sekaran Gunungpati, Semarang

Abstract

Literacy financial and behavioral bias is factor important influencing taking decision individual investor investment. Study this aim for identify connection literacy financial and behavioral biases (overconfidence, representativeness, and illusion of control) that can result in behavior irrational in taking decision investment. Population on research data this is an individual investor based in Java. Based on method purposive sampling obtained sample as many as 83 respondents through questionnaire. The data obtained, passed the validity test, reliability test, assumption test classic, and analysis regression multiple for test hypothesis. Test hypothesis conclude that literacy finance take effect negative against behavioral bias, meaning the more increase literacy finance, then individual investors the more objective in take decision investment, and will reduce behavioral bias.

Keywords: Literacy Finance, Behavioral Bias, Investment Decision Making, Individual Investors

Topic: Opportunities and Challenges for Future Teachers