Jurnal Informatika Ekonomi Bisnis
Vol. 7, No. 2 (June 2025)

Behavioral Finance in the Digital Era: Understanding Investor Psychology in a High-Volatility Market

Willim, Andre Prasetya (Unknown)



Article Info

Publish Date
30 Jun 2025

Abstract

This study investigates the impact of digital information overload and market sentiment on investment decision-making in the digital era, with investor confidence examined as a mediating variable. Using a quantitative research design and data collected from active retail investors through an online survey, the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results reveal that digital information overload negatively influences both investor confidence and investment decisions, while market sentiment exerts a positive effect on both. Furthermore, investor confidence significantly mediates the relationship between the independent variables and investment decision-making, highlighting its central psychological role in the digital investment environment. These findings enrich the behavioral finance literature by incorporating digital-era constructs and provide actionable insights for financial platforms, educators, and regulators to foster more confident and rational investment behavior in volatile markets.

Copyrights © 2025






Journal Info

Abbrev

infeb

Publisher

Subject

Economics, Econometrics & Finance

Description

The Jurnal Informatika Ekonomi Bisnis (INFEB) is an interdisciplinary journal. It publishes scientific papers describing original research work or novel product/process development. The objectives are to promote an exchange of information and knowledge in research work, and new ...