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Journal : JURNAL ECONOMIA

Exploring Cognitive Bias Influence on Investment Decisions in Indonesia: The Mediating Role of FOMO Budiman, Johny; Ong, Teddy; Yuwono, Wisnu
Jurnal Economia Vol. 21 No. 3 (2025): October 2025
Publisher : Faculty of Economics and Business, Universitas Negeri Yogyakarta in collaboration with the Institute for

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21831/economia.v21i3.76879

Abstract

This study investigates the impact of cognitive biases on investment decisions in Indonesia, emphasizing the mediating role of fear of missing out (FOMO). Addressing a research gap, it extends prior studies by incorporating overconfidence and risk perception alongside commonly examined biases such as loss aversion and herding. A quantitative approach was employed through a survey of retail investors, and data were analyzed using partial least squares-structural equation modeling (PLS-SEM) via SmartPLS. The findings reveal that herding exerts a significant influence on investment decisions, whereas loss aversion, overconfidence, and risk perception show no direct effect. Notably, FOMO mediates the relationship between loss aversion and investment decisions, though herding remains the most dominant factor. These results suggest that while Indonesian investors demonstrate rational tendencies, susceptibility to social dynamics and behavioral triggers persists. The study contributes to behavioral finance literature and offers practical insights for mitigating bias-driven investment risks.
Co-Authors -, Nico Hadi Adi Hartono Aglius T.R. Telleng Aglius T.R. Telleng agustin, isnaini nuzula Agustini Fatmasari Ainabila, Salsa Siti Alex Alex Alexander J. W Alfret Luasunaung Andarini, Retno Andrea Putri Andy Tio Andy Tio Angela Angela Angelina Julia Renaldi Angelina, Winna Angeline Aurellia Anindito Leksono Anna Isabella Lau Anthony Chang Antonio Tantra Wijaya Aprilia Chandrawati Arianto Arianto Arifin, Supriyadi Bernard Bernard Calvin Calvin Candy, Candy Cecilia Cecilia Chandra Wijaya Chang, Wirren Cheristina, Cheristina Christina Christina Chrysti, Angelica Vivian Cindy Fransiska Coral Aswanti Darvin Ang Delfina Delfina Denny Denny Desmond Lim Dessy Alliandrina DESTIANA SAFITRI Devin Devin Diana Novella Diana Oktavia Edvan Suwandi Edward Cornelyanto Edwin Edwin Emil Reppie Emil Reppie Erilia Kesumahati Ernestine, Ernestine Ervina Ervina Estin Rose Eviyani Febriyanti Febriyanti Felicia Koo Ferdinand Jason Fionna Quinn Florentina Jasmine Fransisco P. T. Pangalila Gan, James Greceila Veronica Tanita Gusfandi Gusfandi Hadi, Nico Halim, Rynando Sadrakh Hansend Cristoper Hardy W. L Helena Helena Hendra Dewantara Hendrawan Hendrawan Hendriyanto Hendriyanto Henly Henly Hesnianti Hesniati, Hesniati Inda Meyllya Putri Indramawan Indramawan Inneke F. M Rumengan Irvin Ng Jacelyn Christina Yeo Jacelyn Jacelyn Jasika Jasika Jasika, Jasika Jaslin Marvina Jefri Ariffendi Jennifer Jennifer Jenny Jenny Jeslyn Jeslyn Jesni Jesni Jessica Jessica Jessica Novia Jessica Valeria Jessy Valencia Jihadhatul Akbar Joey Joey Jofen Cenedi Jofia, Nurul John Christian Tedjo Jolin, Jolin Jongestu, Jofen Cenedi Jovan Pratama Jovianto Jovianto Joycelin Joycelin Julius Kurnaedi Junita Junita Juven Gautama Kelvin Kelvin Kendy Setiawan Hartono Kevin Antonio Kristina Kristina Licca, Vellia Lie, Kelvin Lily Indrawati Lindawati Lindawati Louis Vernando Lovis Vernando Lumuindong, Frans Lydia Lestari Lydia Sasmita Mahendra, Rizky Adi Manu, Lusia Marheni, Dewi Khornida Maridza, Fidella Dita Martinus, Titan Mayviana, Vivin Meilita Meilita Melvin, Melvin Michelle Angel Lim Nelson Donglas Ng, Mardiana Novita Novita Olinda Viviani Ong, Teddy Oscar, Franky Paramitha Tanujaya, Priscillia Patricia Patricia Piere Ricardo Pina Pina Priscillia, Viviona Rahmadhanti Rahmadhanti Ria Bintan Ria Hartoko Riansan Riansan Richie Marlon Rido Renando Riskiyanto Riskiyanto Rudianto, Vinna rudiyanto Rudiyanto Rudiyanto Rudiyanto Rudiyanto, Rudiyanto Salim, Silvia Salsabilla Febriatul husna Santo Santo Septiana, Gracia Tiffany Serina, Serina Shelvi Shelvi Shelvi, Shelvi Sherlin Sherlin Sherry Sherry Silvia Hainia Sindy Sindy Sitorus, Winda Fionita Sofia Sofia, Sofia Stefani, Christine Stephanie Stephanie Sugandi, Dwinta supriyadi arifin Suyono Saputro Sylvia Putri Tan Le Xuan Tan Wan I Theresia Desilva Tiara Shinta Tiara. C, Indah Tina Tina Trio Trio Veni Sisca Verni Verren Calystania Vinna Ruddianto Vira Vira Viviani Viviani Vivien Welliam Ali Widia Agustiwi Wilfi Caroline Wilhelmina Patty William William Angelo Tio William William Windy Ratnasari Wisnu Yuwono Yanty Yanty Yenny Fyfy Susanty Yessica Stephanie Lim Yodiputra, Jason Yubelina Hibata Yulfiswandi, Yulfiswandi