The Challenge of Behavioral Bias in Investment Decisions of PT Mirae Asset Sekuritas Users in Malang City

Mochamad Riski Fajar Kurniawan; Nora Ria Retnasih

doi:10.33557/9tcgz584

Authors

Mochamad Riski Fajar Kurniawan Universitas Islam Negeri Maulana Malik Ibrahim Malang
Nora Ria Retnasih Universitas Islam Negeri Maulana Malik Ibrahim Malang https://orcid.org/0000-0001-5915-8871

DOI:

https://doi.org/10.33557/9tcgz584

Keywords:

loss aversion, herding bias, investment decision, behavioral finance, Fear of Missing Out (FOMO)

Abstract

Cognitive biases such as loss aversion and herding bias often influence investment decision-making, particularly among retail investors amidst macroeconomic uncertainty due to heated geopolitics, leading to Fear of Missing Out (FOMO) events, which reinforce these behavioral biases when making investment decisions. This study aims to investigate how loss aversion and herding bias influence investment decisions through FOMO, which serves as an intervening variable among investors using the services of PT Mirae Asset Sekuritas in Malang City, with a population of 8,634 investors. The researchers employed an exploratory quantitative design, using a survey method to collect data via an online questionnaire distributed to 100 respondents selected through purposive sampling. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that the direct influence of loss aversion and herding bias has a positive but insignificant effect on investment decisions. Conversely, loss aversion and herding bias have a positive and significant direct influence on FOMO. However, FOMO does not significantly influence investment decisions and is unable to mediate the indirect relationship between loss aversion and herding bias and investment decisions. These findings indicate that although investors experience psychological pressure in the form of FOMO due to behavioral bias, their investment decisions are ultimately based more on rational considerations and self-analysis, supported by financial literacy and access to education from brokers. These results highlight the importance of strengthening financial literacy based on behavioral finance and the need to monitor investment content on digital platforms to mitigate the impact of psychological bias.

Keywords: Loss Aversion, Herding Bias, Fear of Missing Out (FOMO), Investment Decisions, Behavioral Finance.

Abstrak

Bias kognitif seperti loss aversion dan herding bias sering memengaruhi pengambilan keputusan investasi, khususnya di kalangan investor ritel di tengah ketidakpastian makroekonomi akibat geopolitik yang memanas, yang menyebabkan peristiwa Fear of Missing Out (FOMO) memperkuat bias perilaku tersebut ketika mengambil keputusan investasi. Studi ini bertujuan untuk menyelidiki bagaimana loss aversion dan herding bias memengaruhi keputusan investasi melalui FOMO, yang berfungsi sebagai variabel intervening di antara investor yang menggunakan jasa PT Mirae Asset Sekuritas di Kota Malang, dengan populasi 8.634 investor. Peneliti menggunakan desain penelitian kuantitatif eksploratif dengan metode survei untuk mengumpulkan data melalui kuesioner online yang didistribusikan kepada 100 responden yang dipilih menggunakan teknik purposive sampling. Analisis data dilakukan menggunakan metode Partial Least Squares-Structural Equation Modeling (PLS-SEM). Hasil pengaruh loss aversion dan herding bias menunjukkan pengaruh positif tetapi tidak signifikan terhadap keputusan investasi. Sebaliknya, loss aversion dan herding bias memiliki pengaruh langsung yang positif dan signifikan terhadap FOMO. Namun, FOMO tidak secara signifikan memengaruhi keputusan investasi dan tidak mampu memediasi hubungan tidak langsung antara loss aversion dan herding bias dengan keputusan investasi. Temuan ini menunjukkan bahwa meskipun investor mengalami tekanan psikologis dalam bentuk FOMO karena bias perilaku, keputusan investasi mereka pada akhirnya lebih didasarkan pada pertimbangan rasional dan analisis pribadi, yang didukung oleh literasi keuangan dan akses terhadap pendidikan dari pialang. Selain itu penting memperkuat literasi keuangan berdasarkan keuangan perilaku dan perlunya memantau konten investasi di platform digital untuk mengurangi dampak bias psikologis.

Kata kunci: Loss Aversion, Herding Bias, Fear of Missing Out (FOMO), Keputusan Investasi, Behavioral Finance.

References

Abel, J., Buff, C., & Burr, S. (2016). Social Media and the Fear of Missing Out: Scale Development and Assessment. Journal of Business & Economics Research, 14(1), 33–44.

Abideen, Z., Ahmed, Z., Qiu, H., & Zhao, Y. (2023). Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market. Risks, 11(6). https://doi.org/https://doi.org/10.3390/risks11060109

Alfarisi, A., Syafrina, A., Ifadhoh N, & Ningtyas, M. (2024). Herding Behaviour Analysis: A Case in Indonesian Stock Market. Proceeding Iconies Faculty of Economics UIN Malang, 17–30.

Alquraan, T., Alqisie, A., & Al Shorafa, A. (2016). Do Behavioral Finance Factors Influence Stock Investment Decisions of Individual Investors? (Evidences from Saudi Stock Market). American International Journal of Contemporary Research, 6(3), 159–169. Retrieved from www.aijcrnet.com

Ambarwati, R., & Yoga, I. (2025). Decoding Market Signals: How Generation Z Investors in Indonesia Make Investment Decisions . Journal of Business and Management Review , 5(1), 061–073. https://doi.org/DOI:10.47153/jbmr.v6i2.483

Aprilliawati, I., & Indriastuti, D. (2025). Pengaruh Financial Technology, FOMO (Fear of Missing Out), Literasi Keuangan, dan Persepsi Risiko terhadap Keputusan Investasi Mahasiswa Fakultas Ekonomi dan Bisnis Universitas Slamet Riyadi Surakarta. Jurnal Ilmiah Ekonomi Dan Manajemen, 3(3), 385–396. https://doi.org/10.61722/jiem.v3i3.4170

Aren, S., Hamamci, H., & Oscan, S. (2021). Moderation effect of pleasure seeking and loss aversion in the relationship between personality traits and risky investment intention. Kybernetes, 50(12), 3305–3330. https://doi.org/http://dx.doi.org/10.1108/K-05-2020-0278

Badri, R., & Putri, M. (2021). Analisis Pengaruh Anchoring Bias dan Loss Aversion Dalam Pengambilan Keputusan Investasi Di Kota Bandar Lampung. Jurnal Bisnis Darmajaya, 7(1), 39–51.

Baihaqqi, I., & Prajawati, M. (2023). Pengaruh Risk Tolerance dan Religiusitas terhadap Keputusan Investasi dengan Literasi Keuangan sebagai Variabel Moderasi. Ekonomi, Keuangan, Investasi Dan Syariah (EKUITAS), 4(3), 960–968. https://doi.org/https://doi.org/10.47065/ekuitas.v4i3.2448

Banerjee, A. V. (1992). A Simple Model of Herd Behavior. Source: The Quarterly Journal of Economics, 107(3), 797–817. http://www.jstor.orgURL:http://www.jstor.org/stable/2118364Accessed:27/05/200802:04http://www.jstor.org/page/info/about/policies/

Banerji, J., Kundu, K., & Alam, P. (2020). Influence of behavioural biases on investment behaviour. SCMS Journal of Indian Management, 17(1), 81–98.

Barberis, N., & Thaler, R. (2003). A Survey of Behavioral Finance. Handbook of the Economics of Finance, 1, 1053–1128.

Browne, B., Aruguete, M., McCutcheon, L., & Medina, A. (2018). Social and emotional correlates of the fear of missing out. North American Journal of Psychology, 20(2), 341-–353.

Caparrelli, F., D’Arcangelis, A., & Cassuto, A. (2004). Herding in the Italian stock market: a case of behavioural finance. The Journal of Behavioural Finance, 5(4), 222–230. https://doi.org/10.1108/RBF-02-2021-0021

Dar, F., & Hakeem, I. (2015). The Influence of Behavioural Factors on Investors Investment Decisions: A conceptual model. International Journal of Research in Economics and Social Sciences, 5(10), 51–65.

Dinh, T., & Lee, Y. (2022). ‘I want to be as trendy as influencers’–how ‘fear of missing out’ leads to buying intention for products endorsed by social media influencers. Journal of Research in Interactive Marketing, 16(3), 346–364. https://doi.org/10.1108/JRIM-04-2021-0127

Gufron, A., & Wibowo, P. (2024). Faktor-faktor Psikologis yang Mempengaruhi Keputusan Investasi Generasi Z: Studi tentang Anchoring, Loss Aversion,Overconfidence, Regreat Aversion, dan Representativeness. JPRO, 5(3), 342–361.

Gupta, S., & Shrivastava, M. (2022). Herding and loss aversion in stock markets: mediating role of fear of missing out (FOMO) in retail investors. International Journal of Emerging Markets, 17(7), 1720–1737. https://doi.org/10.1108/IJOEM-08-2020-0933

Gyawali, I., & Neupane, G. (2021). Individual Investors Psychology and Investment Decision in NEPSE. The Lumbini Journal of Business and Economics, 9(1).

Harjito, A., & Martono. (2013). Manajemen Keuangan (2nd ed.). EKONISIA.

Jowey, G., Ferli, O., Wijaya, E., & Haryanti, E. (2024). Influence Herding and Loss Aversion to Stock Investment Decisions with Fear of Missing Out (FOMO) as a Mediating Variable in the Young Generation in Jakarta. GIJEA Greenation International Journal of Economics and Accounting, 2(2), 189–201. https://doi.org/10.38035/gijea.v2i2

Kahneman, D., & Tversky, A. (1979). Prospect theory: an Analysis of Decicion Under Risk. Journal of the Economics Society, 47(2), 263–292. https://doi.org/10.2307/1914185

Kahneman, D., & Tversky, A. (2013). Prospect Theory: An Analysis of Decision Under Risk. World Scientific Handbook in Financial Economics Series, 99–127. https://doi.org/10.1142/9789814417358_0006

Kang, I., Cui, H., & Son, J. (2019). Conformity Consumption Behavior and FoMO. Sustainability, 11(17), 4734–4751. https://doi.org/10.3390/su11174734

Kumar, J., Rani, M., Rani, G., & Rani, V. (2024). All are interesting to invest, I fear of missing out (FOMO): a comparative study among self-employed and salaried investors. Journal of Financial Regulation and Compliance, 32(5), 646–664. https://doi.org/10.1108/JFRC-01-2024-0010

Lin, W., Tsai, S., & Lung, P. (2013). Investors’ Herd Behavior: Rational or Irrational. Asia-Pacific Journal of Financial Studies, 42(5), 755–776. https://doi.org/http://dx.doi.org/10.1111/ajfs.12030

Mamidala, V., Kumari, P., & Singh, D. (2023). Should I invest or not? Investigating the role of biases and status quo. Qualitative Research in Financial Markets, 16(3), 423–447. https://doi.org/10.1108/QRFM-12-2022-0198

Muda, I., & Nasser Hasibuan, A. (2017). Public Discovery of the Concept of Time Value of Money with Economic Value of Time. Emerald Reach Proceedings Series, 1, 251–257. https://doi.org/10.1108/978-1-78756-793-1-00050

Nagaeva, E. A. (2024). Making An Investment Decision (Using The Example Of Mechanical Engineering Organizations). Ekonomika I Upravlenie: Problemy, Resheniya, 10(3), 138–142.

Nitanto, F., Nabila, L., Hidayat, R. N., & Kusumasari, I. (2024). Teori Pengambilan Keputusan: Mengupas Definisi, Proses, dan Faktor yang Mempengaruhi Pengambilan keputusan Dalam Konteks Organisasi. Triwikrama: Jurnal Ilmu Sosial, 5(4).

Nofsinger, J., & Sias, R. (1999). American Finance Association Herding and Feedback Trading by Institutional and Individual Investors. The Journal of Finance, 54(6), 2263–2295.

Phung, C. K., & Nur, D. I. (2024). Keputusan Investasi Keuangan dan Fear of Missing Out Sebagai Variabel Mediasi pada Mahasiswa UPN Veteran Jawa Timur. J-MAS (Jurnal Manajemen Dan Sains), 9(2), 1257. https://doi.org/10.33087/jmas.v9i2.1928

Pompian, M. (2006). Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases (a review) Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases. Financial Analysts Journal, 63(2), 107–108. https://doi.org/http://dx.doi.org/10.2469/faj.v63.n2.4534

Pratiknjo, M., Wijaya, L., & Marciano, D. (2024). Pengaruh Bias Perilaku terhadap Keputusan Investasi dengan Fear of Missing Out (FOMO) sebagai Mediator di Indonesia. Jurnal Manajemen STIE Muhammadiyah Palopo, 10(2), 489–502. DOI: http://dx.doi.org/10.35906/jurman.v10i2.2267

Przybylski, A., Murayama, K., DeHaan, C., & Gladwell, V. (2013). Motivational, emotional, and behavioral correlates of fear of missing out. Com Puters in Human Behavior , 29(4), 1841–1848. http://dx.doi.org/10.1016/j.chb.2013.02.014

Puaschunder, J. M. (2018). Nudgitize Me! A Behavioral Finance Approach to Minimize Losses and Maximize Profits from Heuristics and Biases. Journal of Organizational Psychology, 18(1), 3–30. https://doi.org/10.33423/jop.v18i1.1316

Rahmawati, U., & Raharja, S. (2024). The Influence of Herding, Loss Aversion, and Availability on Investment Decision-Makng with Fear of Missing Out as a Mediating Variable Among Generation Z Investors. Indonesian Interdisciplinary Journal of Sharia Economics, 7(3), 8461–8482. https://doi.org/10.31538/iijse.v7i3.5608

Reginald, P. (2024, December 12). Bitcoin Outperformed Traditional Assets by Over 26,000% in the Last Decade. Coingecko. https://www.coingecko.com/research/publications/bitcoin-versus-traditional-assets-price-returns

Ritter Cordell, J. R. (2003). Behavioral Finance. Basin Finance Journal, 11(4), 429–437. http://bear.cba.ufl.edu/ritter

Sabilla, B., & Pertiwi, T. (2021). Pengaruh Bias Perilaku Terhadap Pengambilan Keputusan Investasi Saham Para Investor Pemula Di Kota Sidoarjo. Jurnal E-Bis (Ekonomi-Bisnis), 5(2), 353–364. https://doi.org/10.37339/e-bis.v5i2.688

Sanjaya, A., Tsabita, I., Sabella, S., Salsabilla, K., & Mandur, D. (2025). Pengaruh Perilaku Fear of Missing Out (FOMO) dan Literasi Keuangan terhadap Keputusan Investasi Mahasiswa Program Studi Administrasi Bisnis di STIA. Journal Akses STIA Malang, 7(2), 70–77.

Shah, S. Z. A., Ahmad, M., & Mahmood, F. (2018). Heuristic biases in investment decision-making and perceived market efficiency. Qualitative Research in Financial Markets, 10(1), 85–110. https://doi.org/10.1108/QRFM-04-2017-0033

Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 255–374.

Sudana, I. (2015). Teori dan Praktik Manajemen Keuangan Perusahaan (N. Sallama, Ed.). Erlangga.

Sulhan, M., & Putri, E. (2023). The Effect of Love of Money, FOMO dan Self Control on Generation Z Personal Financial Planning with Financial Literacy as a Moderating Variable. Proceeding Iconies Faculty of Economics UIN Malang, 723–730.

Theressa, T., & Armansyah, R. (2022). Peran herding, overconfidence, dan endowment bias pada keputusan investasi investor pasar modal. Journal of Business and Banking, 35(50), 35–50. https://doi.org/https://dx.doi.org/10.14414/jbb.v12i1.2989

Tunru, A., Ilahi, R., & Hikmah, N. (2022). Analisis Minat Belajar Siswa Pada Mata Pelajaran Pendidikan Jasmani Di SDN 027 Samarinda Ulu Kota Samarinda. Sistema: Jurnal Pendidikan, 4(1), 01–07.

Vyasan. (2024). Impact Of Time Value Of Money. IOSR Journal of Business and Management, 26(7), 42–47. https://doi.org/10.9790/487X-2607074247

Wang, J.-N., Liu, H.-C., Lee, Y.-H., & Hsu, Y.-T. (2023). FOMO in the Bitcoin market: Revisiting and factors. The Quarterly Review of Economics and Finance, 89, 244–253. https://doi.org/10.1016/j.qref.2023.04.007

Yuningsih, Y. (2020). Perilaku Keuangan Dalam Berinvestasi (Laboratorium Experiment Dan Field Experiment) (1st ed.). Indomedia Pustaka.