Exploring overconfidence bias and demographic moderation in aggressive investor behavior; Evidence from Indonesia stock exchange (IDX)

Resumen

This study aims to investigate two primary objectives: first, to examine the role of overconfident variables in mediating the impact of fundamental information and bandarmology on aggressive investor behavior; and second, to assess the influence of demographic factors in moderating the effect of overconfident variables on aggressive investor behavior. The research employed a questionnaire as the primary data collection tool, utilizing Google Forms for distribution through multistage purposive random sampling techniques to reach 981 investors across diverse regions in Indonesia. Data analysis was conducted using structural equation modeling via the smartPLS software, revealing that overconfident variables can mediate the influence of fundamental, technical, and bandarmology information on aggressive investor behavior. Moreover, demographic factors like domicile, education, and marital status were found to moderate the relationship between overconfident variables and aggressive investor behavior on the Indonesia Stock Exchange. These findings contribute significantly to the advancement of financial behavior theory, particularly prospect theory and overconfidence. The novelty of this study lies in its exploration of the intricate relationship between demographic factors and their potential moderating impact on overconfidence in aggressive investor behavior, marking a new avenue in understanding the behavior of aggressive investors within the Indonesian market.