JEFMS Journal

ABSTRACT:

Investing in Indonesia presents a promising avenue for enhancing its economic growth. However, individuals' investment decisions are often influenced by various factors that can lead to irrational choices and adversely affect their investments. This study aims to investigate the impact of three key factors - herding, risk tolerance, and overconfidence - on the decision-making process of stock investors. This research adopts a quantitative approach, utilizing primary data collected through the distribution of questionnaires. The research sample consists of 80 respondents, comprising both FISIP UPN "Veteran" East Java students and customers of Galeri Investasi FISIP who actively invest in stocks. The sample selection employed purposive sampling techniques to ensure a targeted population representation. SmartPLS 4.0 software was employed to analyze the collected data, providing robust statistical analysis capabilities. The findings of this study reveal significant insights. Specifically, herding, risk tolerance, and overconfidence substantially influence the stock investment decisions made by FISIP UPN "Veteran" East Java students. By examining the interplay between these factors, the research sheds light on the underlying dynamics of investment decision- making processes among FISIP UPN "Veteran" East Java students. These findings contribute to a deeper understanding of the factors that shape investment behavior, offering valuable insights for investors, policymakers, and financial institutions aiming to enhance the efficiency and effectiveness of investment strategies in Indonesia.

KEYWORDS:

Herding; Risk Tolerance; Overconfidence; Stock Investment Decisions

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