Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

Risk Taking Analysis of Beginner Investors in East Java Indonesia

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311601,
        author={Damayanti  Damayanti},
        title={Risk Taking Analysis of Beginner Investors in East Java Indonesia},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={risk taking beginner investors financial literacy overconfidence risk  perception},
        doi={10.4108/eai.18-11-2020.2311601}
    }
    
  • Damayanti Damayanti
    Year: 2021
    Risk Taking Analysis of Beginner Investors in East Java Indonesia
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311601
Damayanti Damayanti1,*
  • 1: Sekolah Tinggi Ilmu Ekonomi YPPI Rembang, Indonesia
*Contact email: damayanti_rahmania@yahoo.co.id

Abstract

This study is to determine financial behavior, especially risk taking of beginner investors in East Java, Indonesia. It is to test the variables of financial literacy, overconfidence and risk perception that affect the risk taking of beginner investors. The population in this study was 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 regressions. The results showed that financial literacy had a significant positive effect on risk taking, overconfidence had a significant positive effect on risk taking but 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.