Investment Behavioral Biases in Indonesia Millennial Investors Behavior during Pandemic

  • Alfita Intan Putri Permata Damayanti Management Department, University of Indonesia
  • Rofikoh Rokhim Management Department, University of Indonesia
Abstract Views: 84 PDF Downloads: 104
Keywords: Overconfidence, Disposition Effect, Loss Aversion, Investment Decision, Behavioral Bias


Purpose: Digital financial inclusion era has brought Indonesian people to gain interest in financial sector by accessing more resources to financial literature. During Covid-19 Pandemic, there was a unique phenomenon occurred where the price was going down but the number of individual investors, dominated by millennial, was increasing. This paper aimed to examine the behavioral biases that may influence Indonesian millennial investors during investment decision making process. The main focus is examining possibility of given effects from overconfidence, disposition effect, and loss aversion of the Indonesian millennial investors to investment decision making during Covid-19 Pandemic, by also examining the mediating effect for financial literature.

Method: Using purposive sampling, a total of 1,035 valid respondents were collected using Google Form questionnaire. Structural Equation Modeling (SEM) analysis was conducted as the quantitative chosen method to examine the condition.

Result: Overconfidence, disposition effect, and loss aversion are proven to positively affect investment decisions for Indonesian Millennial Investors during Covid-19 Pandemic. Additionally, financial literature is also proven to receive the mediating effect from overconfidence to investment decision, over all other independent variables. This study is believed to broaden the investment insight, especially in terms of investment decision making process and behavioral bias.


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How to Cite
Damayanti, A. I. P. P., & Rokhim, R. (2022). Investment Behavioral Biases in Indonesia Millennial Investors Behavior during Pandemic. Journal of Entrepreneurship & Business, 3(2), 83-93.