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A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions Fitriana Rahmawati; Fitri Santi
East Asian Journal of Multidisciplinary Research Vol. 2 No. 12 (2023): December 2023
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/eajmr.v2i12.6896

Abstract

This research examines the impact of Availability Bias and Overconfidence Bias on investment decisions. Utilizing a literature review approach and VOSviewer analysis, this study explores how these biases affect investor decision-making processes and potential mitigation strategies. The objective is to highlight the significance of understanding and mitigating these biases in achieving more rational investment decisions. The findings underscore the potential negative effects of both biases, leading to overconfident and less rational investment decisions. Awareness of their interplay is crucial, as they reinforce each other's negative effects on investment decision-making. Overcoming these cognitive biases is essential for more effective investment decision-making. This research contributes insights into mitigating biases, aiding in a more balanced and rational approach to investment decision-making.
Analysis Financial Distress Potential in Asean Industrial Companies Using Altman Z-Score and Springate Methods Resmi Yunisa; Fitri Santi
East Asian Journal of Multidisciplinary Research Vol. 2 No. 12 (2023): December 2023
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/eajmr.v2i12.6902

Abstract

This research aims to analyze the potential for financial distress in the industrial sector companies across five ASEAN countries, using the Altman Z-score (1993) and Springate (1978) methods. Subsequently, these estimations are utilized to determine the error rate in classifying companies into specific groups, such as failed, safe, and grey-area companies. To measure the significance of differences among these groups, an independent sample t-test is employed. The bankruptcy analysis results from the Altman Z-Score and Springate methods within the industrial sector companies across ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) in 2018 until 2020 indicate varying levels of financial distress.