Stock Investment Decisions Research Articles

Technical Analysis of Stock Investment Decisions in Telecommunication Companies Listed on the Indonesian Stock Exchange

This research aims to examine stock investment decisions in telecommunications companies listed on the Indonesia Stock Exchange using a technical analysis approach. This research does not use hypotheses, so quantitative descriptive research is used. The purposive sampling method was used to obtain a representative sample in accordance with the sampling criteria, namely telecommunications companies listed on the Indonesia Stock Exchange. The object of the research is data in the form of graphs and trends in monthly stock price movements of three issuers in the fourth quartile of 2023 starting from October-December 2023. The research results show that the analysis of the three stocks above shows that MACD crossovers often give false signals if they are not confirmed by indicator movements momentum like RSI. In the case of TLKM and ISAT, even though the MACD has crossed over, the RSI actually moves in the opposite direction or at least does not provide a strong response, so there is potential for a reversal. Likewise with EXCL where even though a MACD crossover occurred, the RSI did not penetrate a significant level to validate the signal. Overall, MACD crossovers without the support of evidence of changes in momentum from the RSI tend to be weak and inaccurate. It takes confirmation from other indicators for a MACD crossover to truly indicate a long-term trend change instead of just a high-risk temporary move. Thus, it is important to carry out multi-factor validation so that the MACD crossover signal is stronger before being used as a reference for entry or exit positions.

AI-Enhanced Fuzzy Precision in Stock Investment Decisions with Integrated Weighted Aggregation and Multivariate

AI-Enhanced Fuzzy Precision in Stock Investment Decisions with Integrated Weighted Aggregation and Multivariate

The impact of environmental, social, and governance information on individual stock investment decisions

The global business landscape has seen a growing necessity for companies to implement and disclose environmental, social, and governance (ESG) information (AlHares et al., 2023). Driven by the expectations of investors and society, companies find themselves obligated to publish ESG reports. Therefore, this study focuses on exploring the impact of ESG information on the investment decisions made by individual investors in Vietnamese stock markets. By employing the theory of planned behavior (TPB) and conducting a comprehensive survey, coupled with logistic regression analysis on a sample of 232 individual investors, our research uncovers a significant influence of ESG information on the stock decision-making process of these investors. Notably, our findings reveal that investors place greater emphasis on governance (G) information compared to social (S) and environmental (E) information when making investment decisions. This trend aligns with the conclusions drawn by Sultana et al. (2018) and Mehwish et al. (2022) but diverges from the findings of Rounok et al. (2023). These findings are poised to catalyze the disclosure of ESG reports among listed companies. They also impel policymakers to craft and implement policies actively promoting ESG reporting. Such initiatives will likely foster increased interest and bolster investments in companies adhering to ESG criteria, particularly among individual investors in emerging stock markets.

Determinants influencing investment decisions of individual investors: The case of the developing economy

In recent years, the Vietnam stock market has recorded a large number of new investors, of which individual investors account for the majority. Although it has increased both in the number of listed shares and in trading value, price fluctuations are very unpredictable over different periods, and awareness of factors influencing investment decisions is still limited, leading to a high risk of loss in investment activities (Mayfield et al., 2008). The research was carried out in order to point out the factors influencing investment decision-making among potential individual investors, thereby proposing solutions to improve investment efficiency. The study used data from 261 questionnaires with four hypotheses, using qualitative and quantitative research methods, Cronbach’s alpha, exploratory factor analysis (EFA), and regression analysis by SPSS software. As a result, four elements influencing: 1) personality traits, 2) behavioral factors, 3) company-related factors, and 4) exogenous factors have a positive impact on the stock investment decisions of individual investors. Thereby the article shows solutions from the government, the stock market, businesses, and individuals to improve investment efficiency.

Applying AI Models for Stock Investment Decisions

Applying AI Models for Stock Investment Decisions

Determinants of Stock Investment Decisions of Investor in Environmental Wetlands

This study aims to examine the determinants of investment decisions of stock investors in wetland environments. Investment is an activity of investing funds or capital in other parties, either directly or indirectly with the hope that the owner of the capital will get a number of benefits from the results of investing the funds or capital. There are several factors that influence investment decisions including financial literacy, Risk Perception, Financial Experience and Herding. This study uses a quantitative research approach. The population in this study are the investors in the Wetland Environment, with a sample of 122 investors who fit the predetermined criteria. The sample sampling technique in this study used non- probability sampling. The data that used in the study are primary data, with the data collection method in the form of a questionnaire distributed using google form. The data analysis technique uses multiple regression analysis by first conducting a validity test, reliability test, and classical assumption test. The results found that Financial Literacy, Financial Experience and Herding behaviour have a positive effect on Investment Decisions, while Risk Perception has no effect on investment decisions.

THE UNDERSTANDING OF GENERATION Z OF STOCK INVESTMENT DECISIONS FROM A FINANCIAL BEHAVIOR PERSPECTIVE

This research aims to look at the understanding of z generation of stock investment decisions from a financial behavior perspective by looking at the factors of interest, overconfidence, herding, and regret. This research uses a descriptive quantitative approach with data collection methods through questionnaires, then the results are described, and conclusions are drawn. The results of this research show that Generation Z has a positive attitude toward stock investment decisions. They consider this investment very important for their future. They calculate the possible profits they can make. They consider the level of risk that occurs for the safety of investing. Their interest is high in obtaining large returns. Their overconfidence is high. They feel they have increased knowledge, ability, confidence, and experience investing in shares. However, their investment decisions are also influenced by the behavior of the groups around them. Some of them experienced terrible experiences of stock investment which will affect their investment decisions in the future.

The Application of Capital Asset Pricing Model (CAPM) Analysis Method as the Basis of Stock Investment Decision Making: Study of 18 Technology Companies on the Indonesia Stock Exchange

This study aims to determine the application of the capital asset pricing model method as a basis for consideration in making stock investment decisions (study on shares of technology companies on the Indonesia Stock Exchange). The research variable is based on the concept of the Capital Asset Pricing Model. This research is a descriptive study with a quantitative approach. The population in this study is 27 shares of technology companies that have been listed on the Indonesia Stock Exchange (IDX) for the period November 2020-October 2022, while the sample is 18 company shares which is selected based on purposive sampling technique. The data processed is the closing price of shares (closing price) sourced from the IDX. The data was collected by literature study and data collection from several websites, including:(www.idx.co.id, www.finance.yahoo.com, https://www.bi.go.id and www.pefindo.com.) Data analysis is carried out by using the stages of the capital asset pricing model (CAPM) which starts from collecting stock closing price data to classifying stocks as investment decisions. The results of this study indicate that there is a unidirectional or non-linear relationship between systematic risk and the expected rate of return. There are 7 stocks that are included in the efficient stock category, and 11 stocks that are included in the inefficient stock category. Thus, the investment decision is to buy in efficient stocks and to sell in inefficient stocks if they have them.

Implementation of IndoNLU Pre-Trained Model for Aspect-Based Sentiment Analysis of Indonesian Stock News

Investors in Indonesia are increasing from year to year, especially mutual fund investors managed by investment managers. News is one of the factors considered by investment managers in making stock investment decisions. Very diverse news sources and different writing styles can make it difficult to retrieve information on each issuer in the news. In this research, the aspect-based sentiment analysis (ABSA) method is implemented to extract news specifically on each aspect (issuer) in the news and evaluate the issuer. The model used is a pre-trained Indonesian Bidirectional Encoder Representations from Transformers (BERT) model, IndoNLU, because the object of research is Indonesian-language stock news. The results show that with a combination of hyperparameters consisting of batch size 8, learning rate 0.00002, and epoch 8 for the IndoNLU model can produce an average evaluation metric value consisting of precision, recall, f1-score, and accuracy of 90%.

Window Dressing Phenomenon on LQ45 Stock Investment Decisions with a Modern Technical Analysis Approach

The anomalous phenomenon of the windows dressing market has the potential to distort stock prices amidst the issue of an economic recession which is predicted to occur in 2023. This research aims to analyze the trend of LQ45 index stock price movements amidst the windows dressing phenomenon. This type of research is descriptive with a qualitative approach using secondary data. The research subjects are the Top 5 Constituents on the LQ45 Fact Sheet as of September 2023 published by the BEI. The object of the research is graphic data and monthly stock price movement trends for 5 issuers in the fourth quarter starting from October-December 2023. The data is analyzed using a modern technical analysis approach using the Relative Strength Index and Bollinger Band indicators via the tradingview.com website. The research results show a weakening of the short-term share price trend for LQ45 index issuers, which is likely due to a temporary correction, while the long-term fundamental prospects for several issuers are still positive.

The Influence of Socio-Economic and Psychological Factors on Millennial Generation’s Stock Investment Decisions

Purpose : Increasing investment awareness among the public, especially among millen- nials, is crucial for the development of the stock market and overall financial growth. As a significant potential force, millennials can play a vital role in increasing stock investment decisions and fostering economic progress. This study aims to develop an integrated model of the influence of socioeconomic and psychological factors, namely return expectations, self-efficacy, and risk perception, on millennial stock investment decision-making behavior. Method : The research population was millennial stock investors. Non-probability sampling technique was used to obtain 336 respondents. Data were collected through the survey method using a questionnaire. Data were analyzed using the partial least square (PLS) technique. Findings : Based on the analysis, socioeconomic factors influence investment deci- sions, return expectations, self-efficacy, and risk perception. Socioeconomic factors influence investment decisions through return expectations, self-efficacy, and risk per- ception. However, risk perception does not directly affect millennial stock investment decisions. The results of this study can be used as a reference to motivate young people to invest intelligently in the stock market. Novelty : The research was conducted on the millennial generation, who have an im- portant role in stock investment decisions, considering that the millennial generation is the generation that has an important role in increasing stock investment. Keywords : Expected Return; Self Efficacy; Risk Perception; Investment Decision

Application of the AHP-TOPSIS Method to Support Stock Investment Decisions Based on Financial Ratio Analysis

Stock is one form of investment that is currently popular, both for young people, parents, and industry. This can be seen from the increasing number of investors and companies listed on the Indonesia Stock Exchange (IDX). This makes investors confused in determining the best stock choices. Analysis of stock selection needs to be done before someone invest so that the selected stock does not lose and can generate optimal profits. This study discusses the recommendation for alternative stocks from the IDX30 index. The parameters for selecting alternative stocks considered include the criteria of Earning Per Share (EPS), Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Then the weight of each criterion will be searched using the Analytical Hierarchy Process (AHP) method and sorted using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method to produce stock recommendations from companies listed on the Indonesia Stock Exchange. The results showed that the Earning Per Share (EPS) criteria became the first priority with a weight of 0,2927, then Return on Equity (ROE) with a weight of 0,2728, followed by Net Profit Margin (NPM) with a weight of 0,2583, and Return on Assets (ROA) with a weight 0,1759. Then alternative results are obtained based on the preference value and ranking 14 companies that have a preference value above 0.5 and can be used as a consideration in making investment decisions, with BBCA as a priority alternative.

Biased Behavior and Stock Investment Decisions of Investors in Bali, Indonesia

Investment decisions are often affected by irrational behavioral factors that cause improper logical analysis. Herding and overconfidence are two behaviors that lead to biased decision-making, specifically regarding investment. Therefore, this study aimed to test the effect of herding and overconfidence on investment decisions moderated by financial knowledge and attitude. Using a sample of 267 stock investors, the test was conducted with PLS-SEM. The results showed that overconfidence positively influences individuals' investment decisions, while herding has no effect. Financial knowledge and attitude were found not to moderate this effect but could act as predictor variables with a significant positive impact on investment decisions.
 Keywords: Herding; Financial Knowledge; Financial Attitude; Financial Behavior Overconfidence.

Behavioural finance: the decoy effect on stock investment decisions

PurposeThis study aims to investigate the occurrence of the decoy effect in stock investment decisions based on fundamental analysis.Design/methodology/approachIn this study, the decoy effect was investigated by applying two questionnaires, one of them with the presence of a decoy alternative, to a set of 224 respondents with knowledge of business fundamentals, simulating investment decisions in stocks of companies listed on the Brazilian Stock Exchange. The data analysis was performed using the Fisher's exact test, Student's t-test and ANOVA. The research also aimed to detect a potential relationship between the variables gender, age, degree and professional experience with the type of decision made.FindingsThe results pointed to the occurrence of the decoy effect when analysing the general response data. However, such evidence was not confirmed when the sample was analysed by classes (gender, course, age and professional experience). There is no statistical evidence that the decoy effect influences classes.Originality/valueThe recent decoy effect literature is little explored in investment decision-making. This study is unique in examining the decoy effect in investment decisions in the Brazilian context.

A Moderation Model of Family Environment in the Relationship Between Financial Literacy and Risk Perception on Stock Investment Decisions for Young Couples in Denpasar City

A Moderation Model of Family Environment in the Relationship Between Financial Literacy and Risk Perception on Stock Investment Decisions for Young Couples in Denpasar City

Personality, financial risk‐taking attitude, and older individuals' stock investment decisions

AbstractThis study investigates the relationship between personality traits and older individuals' stock investment decisions using structural equation modeling. The results suggest that greater openness and extraversion are associated with a higher propensity to participate in stock investments and hold a larger proportion of stock investments relative to their other financial assets. Additionally, the findings suggest that those with greater conscientiousness and agreeableness are less likely to hold stock investments and tend to hold smaller proportions of stock investments relative to other financial assets. Last, the results indicate that those with greater openness and extraversion are more willing to take financial risks, whereas those with greater conscientiousness and agreeableness display less willingness to take financial risks.

Memahami Toleransi Risiko Finansial di Kalangan Investor Muda

This study aims to empirically examine the effect of self-esteem and financial literacy on financial risk tolerance. In addition, this study also examines the relationship between financial risk tolerance and investment decisions. This type of research is quantitative causality with 68 respondents who were used as research samples through distributing questionnaires to investors in Kebumen Regency. The research hypothesis was tested using Structural Equation Modeling (SEM) with the help of WarpPLS version 8.0 software. The results of this study indicate that self-esteem has a positive effect on financial risk tolerance and financial risk tolerance has a positive effect on investment decisions. However, research cannot prove that financial literacy has an effect on financial risk tolerance. These findings indicate that investors in the current era tend to make stock investment decisions based solely on their perceptions, therefore, socialization and early education about stock investment is very important so that prospective investors can experience definite benefits from the stock investments they made.
 

PERAN BIAS PERILAKU DALAM MEMEDIASI PENGARUH LITERASI KEUANGAN DAN FAKTOR SOSIODEMOGRAFI TERHADAP KEPUTUSAN INVESTASI SAHAM

Investment is an economic activity that involves investing directly or indirectly, so that owners of capital have the opportunity to benefit from secured capital in the future. The research was conducted to determine the role that behavioral bias has in mediating the factors of stock investment decision making. The population used in this study were all stock investors in Denpasar City, with a total sample of 100 respondents based on a purposive sampling technique. SEM PLS is an analysis technique used in this study using the SmartPLS 4.0 application. Based on the analysis above, the results show that financial literacy, sociodemographic factors, and behavioral biases have a significant positive effect on stock investment decisions. Financial literacy and sociodemographic factors can influence investor behavior bias. Meanwhile, the effect of financial literacy and sociodemographic factors on investment decisions cannot be influenced by behavioral biases indirectly. From this study, it appears that in making stock investment decisions, Denpasar City investors have considered financial literacy, sociodemographic factors, and behavioral biases in order to avoid investment risks. 
 Keywords: Behavioral Bias; Financial Literacy; Sociodemographic Factors; Investment Decsion.

Analisis Perbedaan Perilaku Investasi Saham Antara Wanita dan Pria di Pasar Modal Indonesia

This study aims to analyze 1) Do women have a tendency to have low financial literacy compared to men in making stock investment decisions. 2) Do women have a tendency to be not overconfident than men in making stock investment decisions. 3) Do women have a tendency to have low risk tolerance compared to men in making stock investment decisions. 4) Do women have a tendency to herding behavior compared to men in making stock investment decisions. The novelty of this research from the previous one is that the author places more emphasis on gender differences in decision making when influenced by behavioral finance bias. This study uses quantitative methods with data collection techniques using questionnaires distributed through online media to investors with a sample of 146 investor respondents. The sample is distributed to respondents who are listed on the IDX of West Sumatra. The analytical method used in this research is descriptive analysis and Mann-Whitney test. The results of the study found 1) There is no significant difference between the financial literacy of women and men in making stock investment decisions. 2) There is a significant difference between overconfidence of women and men in making stock investment decisions, and female investors tend to be not overconfident than men in making stock investment decisions. 3) There is a significant difference between the risk tolerance of women and men in making stock investment decisions, and female investors tend to have low risk tolerance compared to men in making stock investment decisions. 4) There is a significant difference between the herding behavior of women and men in making stock investment decisions, but male investors tend to have high herding behavior compared to women in making stock investment decisions.

PENGARUH FAKTOR DEMOGRAFI, EKONOMI DAN LINGKUNGAN TERHADAP KEPUTUSAN BERINVESTASI SAHAM DI KOTA DENPASAR

Portfolio investment is one of the right providers of capital for the stability of the Capital Establishment Balance. Capital providers, namely the capital market as a provider of funds for companies that will have implications for the economy. Stock is one of the right instruments and has been widely known by the public but has not been fully implemented properly. In investing in stocks, there are demographic, economic, and environmental factors that influence one's decision making in investing in stocks. This study aims to analyze the effect of age, gender, income, and environment simultaneously and partially on the decision to invest in shares in Denpasar City. This research was conducted on stock investors in Denpasar City with a total sample of 410 respondents using questionnaires and interview instruments. The data analysis technique used in this research is logit and probit. The results of this study indicate that simultaneously the variables of age, gender, income, and environment affect stock investment decisions in Denpasar City. Partially, the variables that influence stock investment decisions in Denpasar City are age, gender, income, and environmental variables