LOCUS OF CONTROL EFFECT ON CUMULATIVE PROSPECT THEORY BIASES ON EARLY AND POTENTIAL INVESTOR
Locus of control (LOC) shows how one perceives things and changes in life, as either a result of <br /> <br /> their own acts or of things beyond their control. LOC measures how much control one think they <br /> <br /> have over their life, and it was proven having influ...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/22850 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Locus of control (LOC) shows how one perceives things and changes in life, as either a result of <br />
<br />
their own acts or of things beyond their control. LOC measures how much control one think they <br />
<br />
have over their life, and it was proven having influence on risk attitudes. On the other hand, <br />
<br />
Cumulative Prospect Theory is well-known for its explanation on biases (in this case Certainty <br />
<br />
Effect, Reflection Effect, and Framing Effect) occur in decision making under uncertainty. This <br />
<br />
study observes how one’s locus of control could affect their attitude towards bias when making <br />
<br />
investment decision. This research uses quantitative method to collect data from early and potential <br />
<br />
investors who reside in Jabodetabek and Bandung, then uses logistic regression to measure the <br />
<br />
relationship between Locus of Control and tendency towards bias. It is found that the Locus of <br />
<br />
Control has no significant impact on human tendency towards bias |
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