Risk aversion (psychology)

Neuroscience

Actuarial science

Statistics

Behavioral economics

Microeconomics

Chromatography

Social psychology

Loss aversion

Investment decisions

Expected utility hypothesis

Financial risk

Economics

Structural equation modeling

Psychology

Mathematics

Politics

Political science

Financial economics

Chemistry

Sample (material)

Perception

Investment (military)

Risk perception

Overconfidence effect

Journal of Economics Business and Accountancy Ventura

This study aims to examine the effect of risk perception, risk tolerance, overconfidence, and loss aversion on investment decision making. The sample in this study were workers in Surabaya and Jombang, East Java. There were 400 respondents taken using a questionnaire through the survey method. This study used PLS-SEM (Partial Least Square-Structural Equation Model) as a data analysis technique. The results showed that risk perception has a significant and negative effect on investment decision making, risk tolerance and overconfidence have a significant and positive effect on investment decision making, while loss aversion has no effect on investment decision making. This research is expected to provide an overview of how to deal with risk in investment and how to avoid behavioral biases in investment decisions making.

The influence of risk perception, risk tolerance, overconfidence, and loss aversion towards investment decision making