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Behavioral Finance Factors Influencing Investment Decisions Among Generation Z Investors Irdawati Irdawati; Rihfenti Ernayani; Sarni Handayani Puspita Sari; Klemens Mere
Management Studies and Entrepreneurship Journal (MSEJ) Vol. 7 No. 4 (2026): Management Studies and Entrepreneurship Journal (MSEJ)
Publisher : Yayasan Pendidikan Riset dan Pengembangan Intelektual (YRPI)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37385/msej.v7i4.10910

Abstract

The rapid growth of digital financial technology has significantly increased the participation of young investors, particularly Generation Z, in financial markets. However, investment decisions made by this generation are often influenced not only by rational financial analysis but also by psychological and behavioral factors. This study aims to examine behavioral finance factors that influence investment decisions among Generation Z investors. The study focuses on key behavioral aspects such as overconfidence bias, herding behavior, loss aversion, risk perception, and financial literacy, which are widely recognized as important determinants of individual investment behavior. This research employs a systematic literature review method to analyze relevant academic studies related to behavioral finance and investment decision-making. Data were collected from scholarly databases such as Google Scholar, Scopus, Web of Science, and ScienceDirect. The selected literature was analyzed to identify key themes, theoretical frameworks, and empirical findings regarding behavioral biases affecting investment decisions. The findings indicate that behavioral factors significantly influence the investment decisions of Generation Z investors. Overconfidence and herding behavior often lead investors to rely on personal judgment or market trends rather than objective analysis. In addition, loss aversion and risk perception affect how investors respond to potential gains and losses. Financial literacy is also found to play a crucial role in helping investors make more rational and informed investment decisions.
Co-Authors Aa Hubur Abdiannur Abdiannur Abriyoso, Octojaya Ahmad, Srifatmawati Akhmad Baidun Akhmad Nur Zaroni Alfiana Amiruddin Hamzah Anantadjaya, Samuel PD Andi Hidayatul Fadlilah Ari Purwanti Arifin, Sa'ad Nico Asep Saepudin Aspiati Samiun Azizi, Muhammad BillY Dewantara Bustomi, Thomas Butet Wulan Trifina, Butet Wulan C. Prihandoyo Cakranegara, Pandu Adi Cici Apriliya Citra Arta, Deddy Novie Citra Dewi Claudya Nurcahaya Cut Susan Octiva desi kristanti, desi Dewi Rachmania Didik Hadiyatno Dimas Rama Pramudia Dodi Siswanto Dyah Mieta Setyawati Effendi, Ryan Eni Rakhmawati Fachrurazi Febby Fitria Ferdy Leuhery Festus Evly R.I. Liow firman Fitriani Gerdha Erlinda Sari Lapoliwa GS , Achmad Daengs Hairul Anam Heidi Siddiqa Hesty Erviani Zulaecha I Nyoman Tri Sutagana Ika Makherta Sutadji Ika Makherta Sutadji Ilham Arief IRA PRATIWI Irdawati Irdawati Irwan Moridu Irwan Moridu Iwan Henri Kusnadi Jayanti, Ansri Kartika, Ita Yuni Klemens Mere lestari, winda Lipo Andy Willian Oey Liza Syah Putri Lucky Radi Rinandiyana Lucy Indah Jayanti M. Dedy Eko Trisyono Safari Miswaty Miswaty Mohamad Zulman Hakim Muhammad Asir Muhammad Azizi Muhammad Imam Asnawi Musran Munizu Nadi Hernadi Moorcy Nainunis, Nainunis Natalia Reyne Lumentah Nina Indriastuty Nuah P. Tarigan, Nuah P. Nur Dafiq Nur Widyawati Nurlia Nurlia PA Andiena Nindya Putri Palupiningtyas, Dyah Pamungkas, Eko Wiji Pandji Santosa Puput Aprilia Sinaran Rachmad Hidayat Rachmad Hidayat Rahul Chauhan Ranita Ramadhani Rianti Setyawasih Robiyanto Robiyanto Robiyanto Robiyanto Robiyanto, Robiyanto Rosdarni Rosdarni Rustandi Rustandi Sa'ad Nico Arifin Salomi Jacomina Hehanussa Samsidar Sarni Handayani Puspita Sari Sarni Handayani Puspita Sari Shylvia Andriani Srifatmawati Ahmad Sudirman Sudirman Sudjinan Sudjinan Sudjinan, Sudjinan Sugianto, Efendi Sukimin Sukimin Suratman Suratman Syahriah Madjid Tamzil Yusuf Tati Sarihati Theresia Wahyuni Timotius, Elkana Toguan, Zulfikri Upik Djaniar Vinnie Setia Anggraini winda lestari Windy Johan Wiwik Saraswati, Wiwik Yanzil Azizil Yudaruddin Yosua Arif Susanto