EMOTION EFFECTS ON STOCK INVESTMENT DECISION AND STOCK SELECTION PREFERENCE: CASE OF EARLY INVESTOR

• Main Author: Pranata (NIM 19014125), Philip
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23675
• Institution: Institut Teknologi Bandung

ABSTRACT <br /> <br /> Indonesia is a country in South-East Asia that has great potential in terms of its <br /> <br /> economic conditions and capital market development. Having significant economic <br /> <br /> growth and capital market investment rate each year makes Indonesia the second largest <br /> <br /> economy in South-East Asia. One of the aspects that influences the economic condition <br /> <br /> and capital market growth is the rate of investment. Hence the investment rate in <br /> <br /> Indonesia becomes one of the aspects is that very important. The objective of this <br /> <br /> research is to examine the effect of emotional conditions experienced by early investors <br /> <br /> in Indonesia on the investment decision in the capital market. Moreover, this study is <br /> <br /> also seek to know the behavior of the early investors when they are in a certain <br /> <br /> emotional condition, which is how they choose the stock that will be the goal of their <br /> <br /> investment. The quantitative method is used in this research. The fundamentals used in <br /> <br /> this study depend on primary data that are being gathered from 215 early investors in <br /> <br /> Indonesia. The respondents involved in this study were selected using a convenient <br /> <br /> sampling technique. The data will be obtained using Logistic Regression by SPSS so <br /> <br /> that objective can be achieved. The results of this study indicates that a significant <br /> <br /> relationship existed between emotional conditions and investment decision <br /> <br /> performance. Significance occurred when the investor is in Enthusiastic Emotion <br /> <br /> condition. This tendency resulting negative performance on their decisions. The results <br /> <br /> also revealed that a significant relationship existed between the early investors <br /> <br /> emotional conditions and their stock preferences. The result of this study have new <br /> <br /> knowledge for capital market development. <br /> <br /> Keywords: Behavioral Finance, Emotions Condition, Investment Decision Performance, <br /> <br /> Stock Preference.