Research Article
The Effects of Behavioral Biases on Investment Performances of Individual Investors in the Indonesian Stock Market
@INPROCEEDINGS{10.4108/eai.11-7-2019.2297616, author={Insuk Cho and Dony Abdul Chalid}, title={The Effects of Behavioral Biases on Investment Performances of Individual Investors in the Indonesian Stock Market}, proceedings={Proceedings of the 1st International Conference on Islam, Science and Technology, ICONISTECH 2019, 11-12 July 2019, Bandung, Indonesia.}, publisher={EAI}, proceedings_a={ICONISTECH}, year={2021}, month={1}, keywords={behavioral finance behavioral bias indonesian stock market investment performance}, doi={10.4108/eai.11-7-2019.2297616} }- Insuk Cho
Dony Abdul Chalid
Year: 2021
The Effects of Behavioral Biases on Investment Performances of Individual Investors in the Indonesian Stock Market
ICONISTECH
EAI
DOI: 10.4108/eai.11-7-2019.2297616
Abstract
This paper identifies the existences of behavioral biases in the Indonesian stock market and examines the effect of the behavioral biases on individual investment performance. We use quantitative analysis approach to explore our research purpose. To be specific, individual investors in Indonesia have behavioral biases of overconfidence bias, loss-aversion bias, anchoring and adjustment bias, mental accounting bias and confirmation bias. In addition, we find that confirmation bias and mental accounting bias are positive relationship with investment performance, whereas loss-aversion bias and anchoring and adjustment bias are negative significant relationship with investment performance.
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