Effect of Representativeness Bias, Availability Bias and Anchoring Bias on Investment Decisions
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 08 June 2024

Effect of Representativeness Bias, Availability Bias and Anchoring Bias on Investment Decisions

Muhammad Bayu Aji Sumantri, Neneng Susanti, Pebri Yanida

Widyatama University, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.07.02.586

Pages: 199-206

Keywords: Behavioral Finance, Investment Decision, Financial Bias

Abstract

This study aims to determine the effect of three types of financial behavioral bias, namely representativeness bias, availability bias, and anchoring bias on investment decisions. This study uses a quantitative method with a purposive sampling technique. Data were collected through questionnaires and analyzed using Structural Equation Modeling (SEM) with the help of SmartPLS 3.0 software. The results of the study show that the two types of financial behavioral bias have a significant effect on investment decisions which are the representativeness bias and the availability bias on investment decisions, while anchoring bias does not have an effect on investment decisions. This research can contribute to investors to better understand the effect of financial behavior bias on investment decisions and to take wiser actions in investing.

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