Research Article
Representativeness, Mental Accounting, Overconfidence and Loss Aversion On Investment Decision: Mediated by Risk Tolerance
@INPROCEEDINGS{10.4108/eai.2-8-2023.2341066, author={Heni Safitri and Mustaruddin Mustaruddin and Wendy Wendy and Giriati Giriati}, title={Representativeness, Mental Accounting, Overconfidence and Loss Aversion On Investment Decision: Mediated by Risk Tolerance}, proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia}, publisher={EAI}, proceedings_a={ICEB}, year={2024}, month={6}, keywords={representativeness mental accounting overconfidence loss aversion investment decision risk tolerance}, doi={10.4108/eai.2-8-2023.2341066} }- Heni Safitri
Mustaruddin Mustaruddin
Wendy Wendy
Giriati Giriati
Year: 2024
Representativeness, Mental Accounting, Overconfidence and Loss Aversion On Investment Decision: Mediated by Risk Tolerance
ICEB
EAI
DOI: 10.4108/eai.2-8-2023.2341066
Abstract
Risk tolerance mediated the relationship between investment decisions and the variables of representativeness, mental accounting, overconfidence, also loss aversion, which was the objective of this study. This is a survey-based investigation. A random sampling technique was employed to select 150 respondents for the sample in this research. Assessing the value of outer loading, validity and reliability, R square, path coefficients, specific indirect effects, and total effects through data analysis utilising SmartPLS. SEM (Structural Equation Model) analysis reveals that the overconfidence variable mediates a significant indirect impact of risk tolerance on investment decision. Besides, the investment decision is impact by the representativeness bias variable, which is mediated by risk tolerance.