COGNITIVE BIAS BEHAVIOR IN GENERATION Z INVESTMENT DECISIONS MODERATED BY GENDER
Keywords:
Investment decision, cognitive bias, gender, availability bias, confirmation bias, illusion of control biasAbstract
Investment was the allocation of resources with the expectation of future financial gain. Investors logically expect optimal profits. To achieve these objectives, informed investment decisions were crucial. However, a lack of understanding regarding stock analysis often leads to irrational investment decisions, influenced by psychological factors causing cognitive bias. Cognitive bias behavior was common among Generation Z investors both male and female. This was attributed to their young age, associated with heightened emotionality and a lack of emotional control. Common cognitive bias behaviors observed among Generation Z investors include availability bias, confirmation bias, and illusion of control bias. This research seeks to understood the influence of cognitive bias on Generation Z’s investment decisions, with the moderating influence of gender. A quantitative research approach was used in this study, with the population being comprising all Generation Z investors in Surabaya. A purposive sampling method was used to identify and recruit 85 participants. Questionnaires were used to collect data, which was subsequently analyzed using the Structural Equation Model-Partial Least Square (SEM-PLS) through the SmartPLS software. Results demonstrated that availability bias, confirmation bias, and illusion of control bias exert a considerable negative influence on investment decisions. Meanwhile, the gender moderation variable was unable to moderate the correlation between availability bias, confirmation bias, and illusion of control bias on investment decisions.
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