Abstract

The Covid-19 pandemic which began at the end of 2019 resulted in increased pu­blic awareness of investment. The increase in public awareness of investing in the capital mar­­ket occurs because people are starting to realize the importance of investing to protect their money. This study aims to analyze the effect of herding behavior and overconfidence on the investment decisions of young East Java investors in the Capital Market. This type of re­search is explanatory research with a quantitative approach. Explanatory research is research that explains the relationship between variables through hypothesis testing. This study has 113 young investors sample in East Java obtained through the distribution of google form questionnaires using the purposive sampling technique. This research uses multiple re­gression analysis methods with the SPSS application. The results of this study indicate that herd­ing behavior and overconfidence variables have a significant effect on the investment de­cisions of young investors in East Java. This research implies that investors must be more ca­reful in making their investment decisions to avoid herding and overconfidence behavior that can harm their investment.

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