Behavioral Bias Investors in Indonesia

The purpose of this study is to examine the impact of behavioral biases (risk-aversion bias; overconfidence bias; disposition bias; and herding bias) on gender-based Invesment decisions. Also attempts to empirically prove the mediating influence of financial literacy in the relationships between behavioral biases and gender-based Invesment decisions.This study data was collected using a questionnaire from 329 Investors in Indonesia in seven cities, including Jakarta, Semarang, Surabaya, Bandung, Medan, Palembang, and Samarinda. The results reveal that among male Investors, risk-aversion bias and herding bias have a negative and significant impact on the invesmentdecisions; the overconfidence bias has a positive and significant impact on the invesmentdecisions; and however, the disposition bias has no significant. Among female Investors the risk-aversion bias and herding bias have a negative and significant impact on the invesmentdecisions; while the overconfidence bias and disposition bias have no significant impact on the invesmentdecisions. Among the male Investors , the financial literacy also has a significant impact on the influence of overconfidence bias on invesmentdecisions. However, the financial literacy has no significant impact on the remaining three biases, including the risk-aversion bias, disposition bias, and herding bias. Among the female Investors , the financial literacy has a significant impact on all overconfidence bias, risk-aversion bias, disposition bias and herding bias.