Heuristic biases on perceived market efficiency case of Indonesia
Keywords:
Bursa Efek Indonesia, Efficiency, Heuristic biases, Perceived MarketAbstract
Understanding human behavior is the key to behavioral finance's significance in the financial world. The majority of research focuses on financial markets that are well-developed, and little is known about heuristic biases in the perception of market efficiency in emerging nations like Indonesia. The data collection technique in this research is a literature study that is directly related to heuristic bias in perceived market efficiency. Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 150 investors trading on the BEI. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Additionally, the research aims to forecast future directions in the field of behavioral finance, with the ultimate goal of offering fresh perspectives and insights into the field. This may encourage future research on heuristic biases in perceived market efficiency.
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Bakar, S. and Yi, A.N.C. (2016), “The impact of psychological factors on investors’ decision making in malaysian stock market: a case of Klang Valley and Pahangâ€ÂÂÂÂÂ, Procedia Economics and Finance, Vol. 35, pp. 319-328.
Baker, H.K. and Nofsinger, J.R. (2002), “Psychological biases of investorsâ€ÂÂÂÂÂ, Financial Services Review, Vol. 11 No. 2, pp. 97-116.
Baker, H.K. and Nofsinger, J.R. (2010), “Behavioral finance: an overviewâ€ÂÂÂÂÂ, Behavioral Finance: Investors, Corporations, and Markets, pp. 1-21.
Barber, B.M. and Odean, T. (2000), “Trading is hazardous to your wealth: the common stock investment performance of individual investorsâ€ÂÂÂÂÂ, The Journal of Finance, Vol. 55 No. 2, pp. 773-806
Brabazon, T. (2000), Behavioral Finance: A New Sunrise or a False Dawn?, University of Limerick, Limerick, hlm. 1-7.
Fama, E. (1970), “Efficient Capital markets: a review of theory and empirical workâ€ÂÂÂÂÂ, Journal of Finance,Vol. 25 No. 2, pp. 383-417.
Fama, E.F. (1970), “Efficient Capital markets: a review of theory and empirical workâ€ÂÂÂÂÂ, The Journal of Finance, Vol. 25 No. 2, pp. 383-417.
Fama, E.F. (1997), “Market efficiency long term return and behaviour financeâ€ÂÂÂÂÂ, Journal of Financial Economic, Vol. 49 No. 3, pp. 283-306.
Fuentes, R. (2011), "Efisiensi agen perjalanan: studi kasus Alicante, Spanyol", Manajemen Pariwisata, Vol. 32 No.
1, hlm. 75-87.
Hadi, F. (2017), “Impact of biases on perceived market efficiency: case of Pakistani financial marketâ€ÂÂÂÂÂ, Research Journal of Finance and Accounting, Vol. 8 No. 1.
Kahneman, D. and Tversky, A. (1974), “Judgment under uncertainty: heuristics and biasesâ€ÂÂÂÂÂ, Journal of Science, Vol. 85 No. 4157, pp. 1124-1131.
Keller, C., Siegrist, M. and Gutscher, H. (2006), “The role of the affect and availability heuristics in risk communicationâ€ÂÂÂÂÂ, Risk Analysis: An Official Publication of the Society for Risk Analysis, Vol. 26 No. 3, pp. 631-639.
Malkiel, BG (2003), "Hipotesis pasar yang efisien dan krisisnya", Kertas Kerja CEPS 91.
Markowitz, H. (1952), “Portfolio selectionâ€ÂÂÂÂÂ, The Journal of Finance, Vol. 7 No. 1, pp. 77-91.
Ritter, JR (2003), "Keuangan Perilaku", Jurnal Keuangan Pasifik-Basin, Vol. 11 No. 4, hlm. 429-437.
Subrahmanyam, A. (2008), "Perilaku keuangan: review dan sintesis", Manajemen Keuangan Eropa, Vol. 14 No. 1,
hal. 12-29.
Waweru, NM, Munyoki, E. dan Uliana, E. (2008), "Pengaruh faktor perilaku dalam pengambilan keputusan investasi:
survei investor institusional yang beroperasi di Bursa Efek Nairobi", Jurnal Internasional Bisnis dan Pasar
Berkembang, Jil. 1 No.1, hlm. 24-41.
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Published
2023-11-02
How to Cite
Asbaruna, L. W. B. ., & Gorib, R. I. . (2023). Heuristic biases on perceived market efficiency case of Indonesia. Journal of Management Science (JMAS), 6(4), 790–793. Retrieved from https://exsys.iocspublisher.org/index.php/JMAS/article/view/365
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