The Impact of Behavioral Bias on Stock Investment Performance: Evidence from Generation Z Students at University of Brawijaya
Keywords:
Gen-Z investors, behavioural bias, stock investment performance, overconfidenceAbstract
This study examines the influence of behavioral bias on the investment performance of Gen-Z students in the Indonesian stock market. Employing Structural Equation Modeling (SEM-PLS) with online survey data from 79 students at the Faculty of Economics and Business, University of Brawijaya, we uncover a significant positive relationship between behavioral bias represented by overconfidence and investment performance. Despite this, our findings suggest that Gen-Z investors exhibit irrational tendencies: their high behavioural bias manifests in prioritizing emotional and psychological factors, leading them to engage in riskier behaviors with uncertain outcomes. These findings highlight the crucial role of financial education institutions in nurturing rational and productive investment decision-making. By equipping students with comprehensive financial knowledge and cultivating mature calculation skills, these institutions can empower Gen-Z investors to navigate the market with greater awareness and minimize potential future financial drawbacks.
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Copyright (c) 2024 Risna Wijayanti, Himmiyatul Amanah Jiwa Juwita (Author)
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