Author

  • Sri Utami Ady

    • University of Dr. Soetomo, East Java, Indonesia
    • Indonesia

Abstract

The purposes of this research were to understand and analyze the behavior of the psychological bias experienced by investors in making investment decisions. Psychological bias experienced by investors led to wrong decision making and fatal losses. This research used qualitative interpretive phenomenology method to understand the phenomenon of decision making based on the perspective of investors. The result showed that: (1) The phenomenon of cognitive bias and psychological bias behavior occur in nearly all informants, (2) The Psychology bias could be divided by two types, namely: expected emotion bias behavior and immediate emotion bias behavior, (3) experience, knowledge of the capital markets and the management of good emotions determine the level of psychological stability and reduce bias behavior that could be raising the return.

Keywords

References

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How to Cite

Ady, S. U. (2018). The Cognitive and Psychological Bias in Investment Decision-Making Behavior: (Evidence From Indonesian Investor’s Behavior). Journal of Economics and Behavioral Studies, 10(1(J), 86-100. https://doi.org/10.22610/jebs.v10i1(J).2092

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Section

Research Paper

Published in

Vol. 10 No. 1(J) (2018) African Economies, Consumer Behaviour & Governance View issue contents

Published

2018-03-15

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