Abstract
Aims: This research aimed to analyze the effect of Cognitive Dissonance Bias, Overconfidence Bias, Herding Bias, Endowment Bias, and Confirmation Bias on the investment decisions of the millennial generation in the capital market. Study Design: The sampling method used in this study was purposive sampling, which obtained 128 respondents. Place and Duration of Study: The research was conducted with investors in Banyumas Regency. Methodology: This research method uses the SEM (Structural Equation Modeling) analysis method with the Partial Least Square (PLS) approach. Each hypothesis is tested to understand the relationship between variables. To test the validity and reliability of research using an outer model. Hypothesis testing uses inner models. Results: The results of this study showed that cognitive dissonance bias, overconfidence bias, and endowment bias have an effect on investment decisions. However, herding bias and confirmation bias do not affect investment decisions. Conclusion: To increase investment opportunities, investors must pay attention to cognitive dissonance bias, overconfidence bias, and endowment bias because they can cause investment failure. Investors must also pay attention to information circulating in the media because analysis needs the latest information on investment transaction targets to avoid investment failure.
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