PENGARUH RISK AVERSION DAN HERDING BIAS TERHADAP INVESTMENT DECISIONS PADA INVESTOR DI KOTA MAKASSAR DENGAN LITERASI KEUANGAN SEBAGAI VARIABEL MODERASI

Abstract

Investment interest among the Indonesian public has increased annually. As  the number of investors grows, so does the volume of investment decisions being  made. Therefore, it is important to ensure that such decisions are based on sound  fundamental investment principles. However, in certain circumstances, investors do  not always behave rationally, as their decisions may be influenced by psychological  factors, commonly referred to as financial behavior (Silva & Lasantha, 2019).  This study was conducted using a sample of 120 respondents, consisting of  investors across various investment instruments in Makassar City. The data analysis  technique employed in this research utilized SmartPLS version 4.1.1.0. The results of this study indicate that risk aversion has a positive and  significant effect on investment decisions, while herding bias does not have a  significant effect on investment decisions. Furthermore, financial literacy is found to  significantly moderate the relationship between risk aversion and investment  decisions. However, financial literacy does not significantly moderate the  relationship between herding bias and investment decisions. 

keywords : risk aversion, herding bias, investment decisions, financial literacy