Determinants of Stock Investment Decisions of Investor in Environmental Wetlands


1Redawati, 2Meina Wulansari Yusniar, 3M. Zainal Abidin, 4Doni Stiadi ,5Antung Wanda Fauziah, 6Nina Nur Damayanti
1,2,3,4,5,6Lambung Mangkurat University
DOI : https://doi.org/10.58806/ijirme.2023.v2i12n09

Abstract

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.

Keywords:

Financial Behaviour, Financial Literacy, Financial Experience, Risk Perception, Herding behaviour and Investment Decision.

References:

1) Abdeldayem, M. M. (2016). Is there a relationship between financial literacy and investment decisions in the kingdom of Bahrain? Journal of Management and Accounting Studies 4, 68-78. doi: 10.24200/jmas.vol4iss02pp68-78

2) Afrida, N. P., & Sari, D. A. (2022). The Effect of Financial Literacy and Risk Perception on Investment Interest of Stie Yppi Rembang Students. HUBISINTEK Proceedings, 977-987.

3) Ahmad, M., & Shah, S. Z. A. (2022). Overconfidence heuristic-driven bias in investment decision-making and performance: mediating effects of risk perception and moderating effects of financial literacy. Journal of Economic and Administrative Sciences, 38(1), 60-90.

4) Ahzar, Fahri Ali , Qurniawati, Rina Sari and Nurohman, Yulfan Arif (2023), Digital Investment: Determinant Factors in Investment Decision, INFOKAM JOURNAL Vol. XIX, No.1, March 2023

5) Alquraan, T., Alqisie, A., & Shofa, A. Al. (2016). Do Behavioural Finance Factors Influence Stock Investment Decisions of Individual Investors? (Evidences from Saudi Stock Market). American International Journal of Contemporary Research, 6(3), 159-169.

6) Awais Mustabsar, Laber M. Fahad, Rasheed Nilofer, and Khursheed Aisha, (2016), Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan, International Journal of Economics and Financial Issues, 2016, 6(1), 73-79.

7) Aren, S., & Zengin, A. N. (2016). Influence of Financial Literacy and Risk Perception on Choice of Investment. Procedia - Social and Behavioural Sciences, 235(October), 656-663.

8) Arifin, Agus Zainul and Widjaya, Indra (2021). The Effect of Financial Knowledge, Financial Experience, and Locus of Control Towards Investment Decision of Non-Depository Investors, Advances in Social Science, Education and Humanities Research, volume 655. Published by Atlantis Press SARL

9) Baghani, M., & Sedaghat, P. (2016). Effect of Risk Perception and Risk Tolerance on Investors' Decision Making in Tehran Stock Exchange. International Academic Journal of Accounting and Financial Management, 3(9), 45-53.

10) Budiarto, A., & Susanti, S. (2017). The Effect of Financial Literacy, Overconfidence, Regret Aversion Bias, and Risk Tolerance on Investment

11) Decisions (Study on investors of PT. Sucorinvest Central Gani Investment Gallery BEI Surabaya State University). Journal of Management Science, Surabaya State University, 5(2), 1-9.

12) Braunstein, S., Welch, C. (2002), Financial literacy: An overview of practice, research, and policy. Federal Reserve Bulletin

13) Chen, G., Kim, K. A., Nofsinger, J. R., & Rui, O. M. (2007). Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors. Journal of Behavioural Decision Making, 20(4), 425-451.

14) Cox, D.F., & Rich, S.U. (1964). Perceived risk and consumer decision making: The case of tele- phone shopping. Journal of Marketing Research, 1, 32-39.

15) Dohmen, T., Falk, A., Huffman, D., & Sunde, U. (2010). Are risk aversion and impatience related to cognitive ability? American Economic Review, 100, 1238-1260.

16) Fama, E. 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work." Journal of Finance, 25(2), 383-417.

17) Hwang, S., & Salmon, M. (2004). Market Stress and Herding. Journal of Empirical Finance, 11(4), 585-616. https://doi.org/10.1016/j.jempfin.2004.04.003.

18) Kharta, S., & Kumar, S. R. (2014). Influence of Risk Perception of Investors on Investment Decisions: An Empirical Analysis. Journal of Finance and Bank Management, 2(2), 15-25.

19) Kudryavtsev A., Cohen G., Hon-Snir S. (2013). Rational or Intuitive: are behavioural biases correlated across stock market investors? Contemporary Economics, 7(2), 31-53.

20) Lao, P., & Singh, H. (2011). Herding Behaviour in the Chinese and Indian Stock Markets. Journal of Asian Economics, 22(6), 495-506.

21) Lin, H. (2011). Elucidating rational investment decisions and behavioural biases: Evidence from the Taiwanese stock

22) Market. African Journal of Business Management, 5(5), 1630-1631. https://doi.org/10.5897/AJBM10.474

23) Lusardi, A and Tufano, P. (2015) . Debt literacy, financial experiences, and overindebtedness, J. Pension Econ Finance., vol. 14, no. 4.

24) Luong, L. P. & Thi Thu Ha, D., (2011). Behavioural Individual Investors' Decision

25) Making and Performance a Survey at The Ho Chi Minh Stock Exchange, China: UmeƄ Univesity.

26) Madaan, Geetika & Singh, Sanjeet (2019). An Analysis of Behavioural Biases in

27) Investment Decision-Making, International Journal of Financial Research Vol. 10, No. 4; 2019

28) Mandagie, Y. R. O., M. Febrianti, and L. Fujianti. 2020. Analysis of the Effect of Financial Literacy, Investment Experience and Risk Tolerance on Investment Decisions (Case Study of Pancasila University Accounting Students). Relevant: Journal of Accounting Research 1(1): 35-47.

29) Organisation for Economic Co-operation and Development. (2011). Measuring Financial Literacy: Questionnaire and Guidance Notes for Conducting an Internationally Comparable Survey of Financial Literacy.

30) Pertiwi, Tri Kartika, Wardani, Nuruni Ika Kusuma and Septentia, Icasania (2020), KNOWLEDGE, EXPERIENCE, FINANCIAL SATISFACTION, AND INVESTMENT DECISIONS: GENDER AS A MODERATING VARIABLE, JOURNAL OF MANAGEMENT AND ENTREPRENEURSHIP, VOL. 22, NO. 1, MARCH 2020, pp. 57-64

31) Ramashar, W., Hanifa Sandri, S., & Hidayat, R. (2022). Psychological Factors and Student Investment Decisions in the Capital Market. Journal of Accounting and Finance Research, 10(1), 93-102.

32) Ricciardi V. And Simon, H, K. (2000). What is Behaviour in Finance? Business, Education, and Technology Journal, Fall: 1 - 9

33) Sabri, Nurul Afiqah Ahmad, (2016), The Relationship between the Level of Financial Literacy and Investment Decision-Making of Millennials in Malaysia, Taylor's Business Review, Vol 6, August 2016

34) Saputro, R. E. H., & Lestari, D. (2019). EFFECT OF FINANCIAL LITERACY AND RISK PERCEPTION ON STUDENT INVESTMENT DECISIONS IN JAKARTA. Review of Management and Entrepreneurship, 3(2), 107-132.

35) Sengupta, J., Prosad, J. M., & Kapoor, S. (2015). Theory of Behavioural Finance. In Research on Behavioural Finance and Investment Strategies: Decision Making in the Financial Industry (pp. 98-101). United States of America: IGI Global book series Advances in Finance, Accounting, and Economics (AFAE).

36) Sugiyono. 2017. Business Research Methods. Alfabeta. Bandung.

37) Susdiani, L. (2017). The Effect of Financial Literacy and Financial Experience on the Investment Planning Behaviour of Civil Servants in Padang City. Journal of Nagari Development, 2(1), 61-74.

38) Tandelilin, Eduardus. (2017). Capital Markets: Portfolio and Investment Management. Yogyakarta: Kanisius

39) Wulandari Dewi Ayu and Iramani Rr., 2014, Study of Experienced Regret, Risk Tolerance, Overconfidance and Risk Perception on Investment Decision Making of Economics Lecturers, Journal of Business and Banking, Vol. 4, No. 1, pp. 55 - 66. 55 - 66.