The Effect of Financial Literacy, Herding Behavior and Overconfidence on Investment Decisions of Stock Investors in Jabodetabek

Abstract

The phenomenon of stocks from companies with good fundamentals is less attractive to investors. Conversely, stocks of companies with  less good fundamentals are more attractive to investors. Investors have various factors that can influence their investment decision on stocks. This study measures the effect of financial literacy, herding behavior dan oveconfidence on the investment decision of stock investors in the Jabodetabek Area. Stoock investors who are domiciled in the Jabodetabek area and have had a single investor identification (SID) for at leat 1 year, are the object of this study. With an unknown population size and the samples are 120 investor respondents. Through the results of multiple regression analysis, the results show that financial literacy, herding behavior and overconfidence have a positive and significant effect on investment decisions.