Aldrin Herwani
Postgraduate Master of Management Science, Faculty of Economics and Business, Universitas Padjadjaran, Indonesia

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HERDING BEHAVIOR IN THE SHARIA CAPITAL MARKET ON INVESTMENT DECISIONS Adibah Yahya; Azhar Affandi; Aldrin Herwani; Atang Hermawan; Jaja Suteja
JRAK Vol 16 No 1 (2024): April Edition
Publisher : Faculty of Economics and Business, Universitas Pasundan, Bandung, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23969/jrak.v16i1.12172

Abstract

Herding behaviour is an irrational decision-making because it is the following of other investors. Using information asymmetry as a moderating variable, this research aims at identifying the factors that influenced investment decisions. The research object was the Jakarta Islamic Index, and the data used were quarterly data from 2019 to 2021. The methods of sampling and analysis used were the panel data regression method and the purposive sampling method. The results showed that volatility, exchange rate, market sentiment and firm size positively and significantly affected herding behaviour. Information asymmetry strengthened the influence of herding behaviour on investment decisions. Furthermore, investors and potential investors could use the results to make future investment decisions.