Journal of Auditing, Finance, and Forensic Accounting
Vol 9, No 1 (2021): April

Over Confidence, Mental Accounting, and Loss Aversion In Investment Decision

Rohmad Fuad Armansyah (Perbanas Surabaya)



Article Info

Publish Date
01 May 2021

Abstract

The psychology related to investment cannot be ignored by individuals who want to get investment returns. Investment decisions are the most important decisions in decision making. This investment decision is a policy carried out by investors to invest in one or more assets to get more profits in the future. Overconfidence investors prefer higher risk returns to be more important than those overestimated in terms of their knowledge and lower than expected. Mental accounting considers the costs and benefits of loss avoidance decisions made by investors to protect themselves against losses. This study discusses financial problems related to community investment decisions, special investments in real assets and financial assets. The data used are 250 respondents' data on Indonesian investors who invest in Indonesian capital markets. The results showed that overconfidence and mental accounting significantly affected investors' investment decisions in the Indonesian capital market.

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Journal Info

Abbrev

jaffa

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Auditing, Finance, and Forensic Accounting abbreviated as JAFFA (E-ISSN : 2461-0607 dan P-ISSN : 2339-2886) is an open access journal (e-journal) in which intended to enhance quality of knowledge through dissemination of knowledge to academics, practitioners, and all parties who have ...