The Influence of Representativeness Bias, Optimism Bias and Loss Aversion on Stock Investment Decision Making among Investors in Pontianak City

Abstract

The study investigates the impact of representativeness bias, optimism bias, and loss aversion on stock investment decision-making among investors in Pontianak City. Using data from the Indonesian Central Securities Depository and other sources, the research explores the trends and behaviors of investors in the capital market. Through multiple linear regression analysis, the study finds significant correlations between these cognitive biases and investment decisions. The results suggest that while representativeness bias and optimism bias do not individually influence investment decisions, loss aversion has a significant impact. The research contributes to understanding the psychological factors affecting investment behavior in the stock market.