Stock Investment Decisions Research Articles

PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN (Studi pada Perusahaan Sektor Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia Periode 2022-2023)

The worth of a firm is a crucial element. This is because it can reflect how well a corporation performs. Company performance consists of various components, one of which is financial performance. Investors often use financial performance as a parameter when making stock investment decisions. This study aimed to prove whether financial performance affects the value of companies in the property and real estate sector listed on the Indonesia Stock Exchange from 2022-2023. The population observed in this study is all companies in the property and real estate sector listed on the Indonesia stock exchange for 2022-2023. The sample collection uses certain criteria better known as purposive sampling, so there are 60 sample companies, and the total research data is 120. The analysis method is done by applying the classical assumption test and multiple linear analysis, with a decision stating that the data is normally distributed and free from all symptoms of basic assumptions in regression analysis. Hypothesis testing reveals that partial results of liquidity, profitability, and activity variables can affect firm value, while solvency variables cannot affect firm value. For simultaneous testing, liquidity, solvency, profitability, and activity variables can affect firm value. The outcomes of this study are expected to participate in the development of financial theory which will certainly help enrich the understanding of how firm financial elements influence value and can accommodate financial analysts in making more informed decisions.

Analysis of the Application of the Capital Asset Pricing Model (CAPM) Method in Making Islamic Stock Investment Decisions

This study aims to analyze the application of the Capital Asset Pricing Model (CAPM) in sharia stock investment decision making, especially JII70. The research design used is a quantitative approach. The type of research used is descriptive research. This research leads to the shares of companies included in the Jakarta Islamic Index 70 (JII70) on the Indonesia Stock Exchange. The population in this study were all shares of companies listed on the Jakarta Islamic Index 70 (JII70) in the period January 2019-January 2024. The research sample was 32 JII70 stock issuers who consistently entered JII70 during the period January 2019-January 2024. The results showed that there were 14 issuers of JII70 stocks in the efficient category because they had individual stock returns greater than the expected rate of return [Ri > E(Ri)] with positive individual returns.

A study on Factors Influencing the Herding Behavior of Indian Stock Market

Behavioral finance proposes that cognitive traits of investors impact their investment decisionswhich are not always rational, in contradiction to traditional finance. These cognitive traits of stockinvestors are influenced by their demographical profile and the financial information that they receive fromvarious sources which in turn influences their stock investment decisions. Investors with similardemographic profile tend to follow a similar pattern with regard to their investment behavior biases. Themain objective is to study the Factors Influencing the Herding Behavior of Indian Stock Market. Using thestate space model, calculate the herding measure using the log cross-sectional standard deviation of betaof the market component (using the kalman filter approach).

The Influence of Financial Attitude, Experience and Risk Perception on Stock Investment Decision Making in Jakarta

The Influence of Financial Attitude, Experience and Risk Perception on Stock Investment Decision Making in Jakarta

Determinan Pengambilan Keputusan Investasi Saham (Survei Galeri Investasi UIN Raden Fatah Palembang)

This study aims to determine the effect of risk perception, herding, and initial minimum capital in making stock investment decisions at the Investment Gallery of UIN Raden Fatah Palembang. Sampling using the slope formula, the result of the calculation obtained is 94 respondents. This research uses the help of SmartPLS software version 4.0. The results of this study obtained that the first hypothesis and had no effect and the third hypothesis had a positive effect with a P-value of 0.023 <0.005.

The Effect of Overconfidence Bias, Risk Tolerance, and Herding Bias on Stock Investment Decisions with Financial Literacy as a Moderation Variable

This study aims to analyze the effect of Overconfidence Bias, Risk Tolerance, and Herding Bias on Stock Investment Decisions with Financial Literacy as a Moderating Variable. The subjects in this study were: (1) Students aged >17 years to 27 years, (2) having financial assets in the stock sector, (3) had done trading, and (4) domiciled in DIY, (5) or joined KSPM (Capital Market Study Group). KSPM members were chosen as research subject because they are considered as individuals who understand more about stocks and follow the development of the capital market. In this study, the sample amounted to 120 respondents selected using purposive sampling analysis technique, then the data was processed using the SPSS 25 software. Data were collected through a survey by distributing questionnaires online via Google Form to various social media platforms such as WhatsApp, line, telegram, Instagram, and twitter (now X). Based on the analysis that has been done, the results show that Overconfidence Bias, Risk Tolerance, and Herding Bias have a positive and significant effect on stock investment decisions, while Financial Literacy moderates a negative and significant effect on the influence of Overconfidence Bias, Risk Tolerance, and Herding Bias on stock investment decisions. Keywords: Overconfidence Bias, Risk Tolerance, Herding Bias, Financial Literacy, Investment Decisions

The Effect of Parental Income and Level of Trust in Using Online Stock Investment Applications on Gen Z Investment Decisions in DKI Jakarta

KSEI data (2024) shows that the number of investors in the capital market is dominated by investors under 30 years old. At the age of 20-27 years, it is suspected that the existence of parental income in a person's financial decisions is still very large. The level of trust in investment applications is also thought to be a consideration in investment decisions in Generation Z. The sample in this study was 110 respondents who were Generation Z aged 20-27 years in DKI Jakarta. This study is a quantitative study analyzed using SmartPLS version 4. The results of the research test, the t-statistic value of 1.954 and the p-value of 0.026 and the original positive sample of 0.147 indicate that parental income has a positive and significant effect on stock investment decisions. The second hypothesis, the t-statistic of 12.020 and the p-value of 0.000 and the original positive sample of 0.709 indicate that the level of trust in the use of stock investment applications has a positive and significant effect on stock investment decisions. The third hypothesis, it can be seen that based on the simultaneous F test calculation, the F-count value of 82.29> F-table 3.08, which means that the parental income variable and trust in the use of stock investment applications have a simultaneous effect. This study has implications for Generation Z to properly manage their finances to be invested in reputable investment platforms, and for the government to eradicate fraudulent investments.

Analisis Hubungan Literasi Keuangan Investor, Pengetahuan Investor, Risk Tolerance Investor Dan Regret Aversion Bias Investor Dengan Keputusan Investasi

Data of Otoritas Jasa Keuangan (OJK) result that the number of Single Investor Identification (SID) in Indonesia has increased from 2019 to May 2022. Most of these SID investors come from millennials who were born from 1980 to 2000. Investors in Bali SID also experienced an increase, especially in Denpasar City and Badung Regency. The aim of the research is to analyze the relationship between investor of financial literacy, investor knowledge, risk tolerance and regret aversion bias with stock investment decisions in Bali. The sampling technique uses the Slovin formula to obtain a minimum sample size. The data source was obtained from primary data by distributing a 5 Likert scale questionnaire to respondents via Google Form to BNI Securities and Mandiri Securities. Based on the research sample criteria, 129 research samples were obtained. Partial Least Square (PLS) - Structural Equation Modeling (SEM) is used for data analysis. The results are 1) investor financial literacy is significantly positively related to investment decisions, which means hypothesis 1 is accepted, 2) investor knowledge is significantly positively related to investment decisions, which means hypothesis 2 is accepted, 3) investor risk tolerance is significantly positively related to investment decisions so that Hypothesis 3 is accepted, 4) investor regret aversion bias is significantly positively related to investment decisions, which means hypothesis 4 is accepted.

Utilizing Genetic Algorithms in Conjunction with ANN-Based Stock Valuation Models to Enhance the Optimization of Stock Investment Decisions

Navigating the stock market’s unpredictability and reducing vulnerability to its volatility requires well-informed decisions on stock selection, capital allocation, and transaction timing. While stock selection can be accomplished through fundamental analysis, the extensive data involved often pose challenges in discerning pertinent information. Timing, typically managed through technical analysis, may experience delays, leading to missed opportunities for stock transactions. Capital allocation, a quintessential resource optimization dilemma, necessitates meticulous planning for resolution. Consequently, this thesis leverages the optimization attributes of genetic algorithms, in conjunction with fundamental analysis and the concept of combination with repetition optimization, to identify appropriate stock selection and capital allocation strategies. Regarding timing, it employs deep learning coupled with the Ohlson model for stock valuation to ascertain the intrinsic worth of stocks. This lays the groundwork for transactions to yield favorable returns. In terms of experimentation, this study juxtaposes the integrated analytical approach of this thesis with the equal capital allocation strategy, TAIEX, and the Taiwan 50 index. The findings affirm that irrespective of the Taiwan stock market’s bullish or bearish tendencies, the method proposed in this study indeed facilitates investors in making astute investment decisions and attaining substantial profits.

Heuristic biases influencing individual stock investment decisions: a hybrid fuzzy DELPHI-AHP-DEMATEL approach

PurposeStock investing choices of individual investors are predominantly influenced by heuristic biases, leading to sub-optimal choices. Accordingly, this study aims to identify, categorize, validate, prioritize, and find causality among the heuristic biases shaping stock investment decisions of individual investors.Design/methodology/approachThis research offers original contribution by employing a hybrid approach combining fuzzy DELPHI method (FDM), fuzzy analytical hierarchy process (FAHP), and fuzzy decision-making trial and evaluation laboratory (F-DEMATEL) techniques to validate, prioritize, and find causality among the heuristic biases.FindingsTwenty sub-heuristic biases were identified under five main heuristic bias categories. Out of which, 17 were validated using FDM. Further, availability and representativeness within main heuristic categories, and availability cascade and retrievability within sub-heuristic biases were prioritized using FAHP. Overconfidence and availability were identified as the causes among the five main biases by F-DEMATEL.Practical implicationsThis study offers the stock investors a deeper understanding of heuristic biases and empowers them to make rational investment decisions.Originality/valueThis paper is the inaugural effort to identify, categorize, validate, prioritize and examine the cause-and-effect relationship among the heuristic biases.

Influence of Financial Literacy, Investment Promotion, and Socioeconomic Status on Stock Investment Decisions Through Risk Perception

Introduction: This paper talks about determine and analyze the influence of financial literacy, investment promotion, ocioeconomic status, and risk perception on investment decisions. The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. Purpose: This research aims to determine and analyze the influence of (1) financial literacy on risk perception, (2) investment promotion on risk perception, (3) socioeconomic status on risk perception, (4) financial literacy on stock investment decisions, (5) promotion investment towards stock investment decisions, (6) socioeconomic status towards stock investment decisions, (7) risk perception towards stock investment decisions, (8) financial literacy towards stock investment decisions through risk perception, (9) investment promotion towards stock investment decisions through risk perception, (10) socioeconomic status on stock investment decisions through risk perception. Methods: The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. The data collection method uses an online questionnaire and the analysis tool used is SEM-PLS Ver 3.0. Results and Conclusion: The research results show that (1) financial literacy has a positive and insignificant effect on risk perception, (2) investment promotion has a positive and significant effect on risk perception, (3) socioeconomic status has a positive and significant effect on risk perception, (4) financial literacy has a negative and insignificant effect on stock investment decisions, (5) investment promotion has a positive and insignificant effect on stock investment decisions, (6) socioeconomic status has a positive and significant effect on stock investment decisions, (7) risk perception has a positive and significant effect on stock investment decisions, (8) financial literacy has no influence on stock investment decisions through risk perception, (9) investment promotion has an influence on stock investment decisions through risk perception, (10) socioeconomic status has an influence on stock investment decisions through risk perception. Research implications: This research can be used as a reference in determining the factors that have the greatest influence that can influence students in investing in shares in the capital market. From the research results, securities companies can pay more attention to the investment promotions given to students by creating new promotional strategies so that students can make investment decisions. The regulator, in this case the Indonesian Stock Exchange, can also further increase students' financial literacy in the capital market so that they know the advantages and risks when they investing in the capital market. Originality/value: This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. This research also uses the analytical method (SEM-PLS) Structural Equation Model-Partial Least Square which is expected to be able to test all correlations between variables.

Stock market prediction employing ensemble methods: the Nifty50 index

<span lang="EN-US">Accurately forecasting stock fluctuations can yield high investment returns while minimizing risk. However, market volatility makes these projections unlikely. As a result, stock market data analysis is significant for research. Analysts and researchers have developed various stock price prediction systems to help investors make informed judgments. Extensive studies show that machine learning can anticipate markets by examining stock data. This article proposed and evaluated different ensemble learning techniques such as max voting, bagging, boosting, and stacking to forecast the Nifty50 index efficiently. In addition, an embedded feature selection is performed to choose an optimal set of fundamental indicators as input to the model, and extensive hyperparameter tuning is applied using grid search to each base regressor to enhance performance. Our findings suggest the bagging and stacking ensemble models with random forest (RF) feature selection offer lower error rates. The bagging and stacking regressor model 2 outperformed all other models with the lowest root mean square error (RMSE) of 0.0084 and 0.0085, respectively, showing a better fit of ensemble regressors. Finally, the findings show that machine learning algorithms can help fundamental analyses make stock investment decisions.</span>

Role of Emotions in Stock Investment Decisions : A Critical Review of the Literature

Role of Emotions in Stock Investment Decisions : A Critical Review of the Literature

The Effect of Financial Information on Decision Making to Purchase Shares Using the TOPSIS Method (Technique for Order Preference by Similarity to Ideal Solution)

In making stock investment decisions, it is important for investors to perform certain calculations and analyzes in order to be able to assess how well the performance of the issuer (company), with the aim of getting the expected rate of return and being able to minimize investment risk. This study was conducted to find out how the decisions that will be made by investors on buying shares on the Indonesia Stock Exchange using fundamental analysis. The difference between this study and previous research is that it adds a Positive Ideal Solution (PIS) and a Negative Ideal Solution (NIS) from financial information indicators ( Dept to Equity Ratio, Return on Equity, Net Profit Margin, Return On Assets, Earning Per Share, Price Earning Ratio). , and Price Book Value ) using the TOPSIS method. The sample in this study uses securities listed on the Indonesia Stock Exchange as many as 94 securities. The results showed that the Dept to Equity Ratio, Return On Assets, Earning Per Share, Price Earning Ratio, and Price Book Value had a significant effect on stock purchase decisions, while Return on Equity and Net Profit Margin had no effect on stock purchase decisions.

Factors That Encourage Investors to Decide to Invest in Shares in the Capital Market for the 2020-2023 Period (Covid-19 Pandemic): Systematic Literature Review

Investment is a very important element for a country because it has two roles, namely as a supporter of income and a driver of economic growth. In this research, the author analyzes what factors encourage investors to decide to invest in shares in the capital market. This research uses the Systematic Literature Review (SLR) method. This research comes from articles published in 2020-2023 found in Publish or Perish and Google Scholar. Data is collected, identified and assessed before being systematically reviewed with the aim of supporting further research. The results of this review show that during the Covid-19 pandemic, many investors made stock investment decisions in the capital market due to psychological factors. As a result of the economic problems that have arisen as a result of the Covid-19 pandemic, many people's perspectives have changed from previously preferring traditional investments such as deposits to looking for investment options that provide high returns such as mutual funds and shares with different investment objectives. This is also supported by the rapid development of digital and information technology during the Covid-19 pandemic, which has caused public participation in the capital market to increase. Many fintech companies that adopt automatic investment technology are able to remove obstacles for potential investors who lack investment literacy and limited capital without having to study and understand the entire investment scheme in the capital market. Apart from that, financial literacy is also mentioned as a factor that can determine stock investment decisions because the knowledge that comes from literacy will strengthen stock investment decisions.

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

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.

Herding behavior, information type, and overconfidence bias: an experimental study on novice investors’ investment decisions

Research aims: By the end of 2023, Indonesian Central Securities Depository data revealed a significant increase in the number of investors dominated by millennial investors (56.41%). They are categorized as novice investors who have distinctive characteristics from professional investors. This study, thus, aims to examine whether herding behavior dominates the characteristics of novice investors and whether information type and overconfidence bias affect the herding behavior of novice investors.Design/Methodology/Approach: This study used a quasi-experimental 2x2 mixed design on 42 student participants who were members of the Capital Market Study Group. The data obtained were then tested using non-parametric statistics.Research findings: The test results uncovered that herding dominated the investment behavior of novice investors. This behavior was supported by the information type that participants paid attention to in making decisions. However, testing for overconfidence demonstrated that this variable was not the cause of novice investors' herding behavior.Theoretical contribution/Originality: The results of this study contribute theoretically to the investment behavior of novice investors by strengthening the argument that they tend to behave herding when making stock investment decisions. Testing with an experimental design allows researchers to confirm that such herding behavior is reinforced by the preference for the information type they use in decision-making. The results also provide insight into the fact that the overconfidence level of novice investors may be different from that of professional investors.Practitioner/Policy implication: The tendency of herding behavior of novice investors needs attention from the Financial Services Authority as a regulator to consider protection for novice investors who dominate the number of investors in the capital market.Research limitation/Implication: The tests in this study employed non-parametric statistics, which are not as good as parametric tests, so the study results should be understood wisely. Future research needs to consider the adequacy of the sample and use capital market groups in several universities to improve sample quality.

Sharia stock investment decisions: Sharia stock literacy and risk factors and their relations with behavioral bias

Research aims: This study aims to analyze the influence of Sharia stock literacy and risk factors on Sharia stock investment decisions with behavioral bias as an intervening variable.Design/Methodology/Approach: The population was investors in East Java Province who invested in Sharia stock. The sample for this research was 500 respondents. The analysis employed was the Structural Equation Model.Research findings: The impact of Sharia stock literacy on both Sharia stock literacy and investor behavioral bias was positive. Sharia stock investment decisions were adversely impacted by risk factors. Additionally, risk factors had a detrimental impact on investor behavioral bias. Behavioral bias yielded a favorable impact on the decision-making process for investing in Sharia-compliant stocks. Through behavioral bias, Sharia stock literacy positively affected Sharia stock investment decisions. Meanwhile, risk factors obtained a negative effect on Sharia stock investment decisions through behavioral bias.Theoretical contribution/Originality: This research contributes to Sharia stock investment decisions and provides empirical evidence of Sharia stock investment decisions concerning Sharia stock literacy, risk factors, and behavioral biases.Practitioner/Policy implication: This research contributes to investors' ability to determine investment decisions in Sharia stock.Research limitation/Implication: The limitation of this research is that independent variables only used two components of Sharia stock investment decision, i.e., Sharia stock literacy and risk factors. Hence, the level of influence of the independent variables on the dependent was small.

Applying Warren Buffet’s Investment Strategy to Indonesia Stock Market

In the past five years, there has been a significant surge in local Indonesian investors, predominantly comprising millennials and Gen Z, contributing to the positive growth of the stock market. However, a concerning phenomenon known as “herding bias” has been observed, highlighting the tendency of young investors to follow prevailing trends without fully understanding the intricacies and risks associated with their investments. This paper aims to address this issue by enhancing public awareness of stocks and minimizing associated risks, focusing specifically on value investing as an effective strategy. The research utilizes a ten-year period, selecting samples from companies listed in IDX30 through Warren Buffett’s screening test. This test incorporates key factors such as Conservative Debt, Price-to-Earnings Ratio (P/E Ratio), Price-to-Book Ratio (P/BV Ratio), Debt to Equity Ratio (D/E Ratio), and Return on Equity (ROE). Following the sample selection, the paper calculates the intrinsic value of chosen stocks, determines the margin of safety, estimates expected returns, and evaluate the risk-adjusted performance. Additionally, qualitative factors like understanding the business, market conditions, and internal company factors are considered. The findings indicate that Warren Buffett’s investment strategy can be successfully applied to Indonesian stocks. Investors are advised to select stocks based on careful consideration of financial ratios, analyzing annual reports, calculating intrinsic values, determining margins of safety, and assessing expected returns alongside associated risks. This research provides valuable insights that can serve as a practical reference for stock investment decisions, particularly for stocks with high market capitalization. By promoting a comprehensive understanding of value investing, this paper aims to empower young Indonesian investors to make informed and strategic choices, thereby mitigating the impact of herding bias in the local investment landscape.

Pengaruh Analisis Fundamental Dan Analisis Teknikal Terhadap Keputusan Pembelian Saham PT. Industri Jamu Dan Farmasi Sido Muncul Tbk (SIDO)

This study aims to analyze the influence of fundamental analysis and technical analysis on stock purchase decisions of PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO). Fundamental analysis and technical analysis are two approaches that are often used by investors in making stock investment decisions. This study uses a quantitative method with multiple linear regression analysis techniques. Data were obtained through questionnaires distributed to 100 SIDO stock investors. The results showed that fundamental analysis and technical analysis partially have a significant effect on SIDO stock purchase decisions. Simultaneously, both types of analysis also have a significant effect. Fundamental analysis has the most dominant influence on SIDO stock purchase decisions compared to technical analysis. Investors are advised to consider both types of analysis in making stock investment decisions in order to make the right decisions.