Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments
Young retail investors in the Indonesian capital market often face challenges due to various behavioral finance biases that can negatively impact their investment decisions. This study aims to examine the impact of herding, overconfidence, mental accounting, loss aversion, and bias on the investmen...
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| Format: | Article |
| Language: | English |
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Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
2025-02-01
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| Series: | Indonesian Interdisciplinary Journal of Sharia Economics |
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| Online Access: | https://e-journal.uac.ac.id/index.php/iijse/article/view/6006 |
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| author | Rita Satria Nugraha Nugraha Disman Disman Imas Purnamasari |
| author_facet | Rita Satria Nugraha Nugraha Disman Disman Imas Purnamasari |
| author_sort | Rita Satria |
| collection | DOAJ |
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Young retail investors in the Indonesian capital market often face challenges due to various behavioral finance biases that can negatively impact their investment decisions. This study aims to examine the impact of herding, overconfidence, mental accounting, loss aversion, and bias on the investment decisions of novice retail investors, focusing on the moderating role of demographic factors such as generation, gender, education, and income. Using a quantitative design, data were collected through a structured questionnaire from 254 retail investors, with 246 valid responses analyzed through a regression-based method and moderation analysis using Hayes' PROCESS macro for SPSS. The results indicate that all behavioral finance factors negatively impact investment decisions, with demographic variables significantly moderating this impact. The findings suggest that tailored financial education and advisory services can help young novice investors make more informed and rational investment choices, thereby improving their financial well-being and market participation. The limitations of this study lie in its focus on a specific demographic in Indonesia, while its novelty includes a detailed analysis of the moderating impact of demographics on behavioral finance biases.
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| format | Article |
| id | doaj-art-061b150775a24ad2ac658f70b95e94a9 |
| institution | Kabale University |
| issn | 2621-606X |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Universitas KH Abdul Chalim, Prodi Ekonomi Syariah |
| record_format | Article |
| series | Indonesian Interdisciplinary Journal of Sharia Economics |
| spelling | doaj-art-061b150775a24ad2ac658f70b95e94a92025-02-03T16:04:49ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-02-018110.31538/iijse.v8i1.6006Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic SegmentsRita SatriaNugraha NugrahaDisman DismanImas Purnamasari Young retail investors in the Indonesian capital market often face challenges due to various behavioral finance biases that can negatively impact their investment decisions. This study aims to examine the impact of herding, overconfidence, mental accounting, loss aversion, and bias on the investment decisions of novice retail investors, focusing on the moderating role of demographic factors such as generation, gender, education, and income. Using a quantitative design, data were collected through a structured questionnaire from 254 retail investors, with 246 valid responses analyzed through a regression-based method and moderation analysis using Hayes' PROCESS macro for SPSS. The results indicate that all behavioral finance factors negatively impact investment decisions, with demographic variables significantly moderating this impact. The findings suggest that tailored financial education and advisory services can help young novice investors make more informed and rational investment choices, thereby improving their financial well-being and market participation. The limitations of this study lie in its focus on a specific demographic in Indonesia, while its novelty includes a detailed analysis of the moderating impact of demographics on behavioral finance biases. https://e-journal.uac.ac.id/index.php/iijse/article/view/6006Investment Decision, Financial Behavior, Moderation Analysis, Retail Investors, Indonesia |
| spellingShingle | Rita Satria Nugraha Nugraha Disman Disman Imas Purnamasari Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments Indonesian Interdisciplinary Journal of Sharia Economics Investment Decision, Financial Behavior, Moderation Analysis, Retail Investors, Indonesia |
| title | Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments |
| title_full | Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments |
| title_fullStr | Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments |
| title_full_unstemmed | Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments |
| title_short | Behavioral Finance Factors and Investment Decisions in Retail: a Moderation Analysis Across Demographic Segments |
| title_sort | behavioral finance factors and investment decisions in retail a moderation analysis across demographic segments |
| topic | Investment Decision, Financial Behavior, Moderation Analysis, Retail Investors, Indonesia |
| url | https://e-journal.uac.ac.id/index.php/iijse/article/view/6006 |
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