Abstract
The growth of capital market investors and financial literacy has increased every year and investors in making an investment decision However, financial theory argues that there are psychological biases that can influence investors in making inappropriate investment decisions. This study aims to examine the influence and analyze Overconfidence, Loss Aversion and Herding Bias on investment decisions and Financial Literacy as a mediating variable. Financial Literacy is used as mediating variable in the relationship of Overconfidence, Loss Aversion. However Herding Bias variables on Investment Decisions. This study uses non-probability sampling techniques to as many as 163 investors stock in Yogyakarta as respondents. Findings/Results: the study shows that overconfidence, loss aversion and herding bias have a significant effect on investment decisions and overconfidence, loss aversion and herding bias are not mediated by financial literacy in making investment decisions.
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Schedule a callMore From: International Journal of Research in Business and Social Science (2147- 4478)
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