Determinant factors of investors behavior in investment decision in Indonesian capital markets
Abstract: This study examines
the effect of financial information, macro environment, and subjective norms on
investors behavior when making investment decisions in Indonesian capital
market. It was conducted by a survey design and involved 190 individual
investors in three big cities in Indonesia (Jakarta, Surabaya, and Bandung). By
using Structural Equation Modeling with Warp-PLS 3.0, the results showed that
macro factors had a significantly positive effect on the technical information,
the financial information and the macro factors had a significantly positive
effect on the investor intentions, and the intentions of investors and the
financial information had a significantly positive impact on investment
decisions. It was also found that the financial information held a great
contribution to build investor intentions and investment decisions. Thus,
Indonesian individual investors were rational and sophisticated investors. They
were not influenced by the actions of other investors, analyst opinions, and
media. The implication of this research was how to provide information
comprehensively to investors, which was very important to influence their
decisions.
Author: Indra Listyarti, Tatik
Suryani
Journal Code: jpakuntansigg140041
