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
- Cognitive Bias Search this journal for Cognitive Bias (opens in a new tab)
- Psychological Bias Search this journal for Psychological Bias (opens in a new tab)
- Decision Making Behavior Search this journal for Decision Making Behavior (opens in a new tab)
- Qualitative Search this journal for Qualitative (opens in a new tab)
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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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Keywords
- Cognitive Bias Search this journal for Cognitive Bias (opens in a new tab)
- Psychological Bias Search this journal for Psychological Bias (opens in a new tab)
- Decision Making Behavior Search this journal for Decision Making Behavior (opens in a new tab)
- Qualitative Search this journal for Qualitative (opens in a new tab)
Section
Research Paper
Published in
Vol. 10 No. 1(J) (2018)
African Economies, Consumer Behaviour & Governance
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Published
2018-03-15
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