Bias Heuristics and Investment Decisions in Indonesian


  • Regina Niken Wilantari Department of Development Economics, Faculty of Economics and Business, University of Jember, Indonesia.


Stock Market, Bias Heuristics, Investment, Indonesia


The purpose of this study is to investigate Bias Heuristics and Investment Decisions in Indonesian.we
conducted a survey with questionnaires to 758 investors at various brokers by guaranteeing the
confidentiality of their personal data on the Indonesian stock exchange.We use a questionnaire and a
Likert scale for measurement and data collection with structural equation model (SEM) and
confirmatory factor analysis (CFA).We found that risk tolerance has a significant positive effect on
overconfidence. Financial knowledge is very important for investors in the stock market to avoid
mistakes in making investment decisions. In Indonesia, financial literacy is still not rooted so it is
negatively related to all variables.