Citation:

Deograsias Yoseph Yustinianus Ferdinand. "Overconfidence Heuristic-Driven Bias in Investment DecisionMaking: Mediating Effects of Risk Perception and Moderating Effects of Asymmetry Information" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 301-309, 2023.

Abstract:

An appealing investment demands an equally appealing investing choice. This essay demonstrates how overconfidence affects individual investors' trading decisions on the Indonesian Stock Exchange (IDX). by lowering the influence of information asymmetry and regulating the impact of risk perception.We discovered that the association between heuristic overconfidence and investment decision-making is really mediated by perceived risk. The overconfidence heuristic and investment decision-making are correlated, although the relationship is moderated by information asymmetry. The study's findings suggest that individual investors, particularly those at IDX, cannot make quick investment selections and must rely on overconfidence heuristics and quick decisions.

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Keywords:

Overconfidence, Investment Decision, Risk Perception, Asymmetry Information.