EFFECT OF FINANCIAL LITERACY, RISK ATTITUDE AND SAVING MOTIVES TO DISPOSITION BIAS ON MUTUAL FUNDS INVESTORS
Keywords:
Financial Literacy, Risk Attitude, Saving Motives, Disposition Bias, Mutual Fund Investors, Bias
Abstract
Investment is significant to prepare human needs in the future. To make investment decisions, investors will try to make their decisions as rationally as possible. However, one cannot deny that some irrational factors or biases also influence investment decision-making. This study examines financial literacy, risk attitude, and saving motives on disposition bias of mutual fund investors. The sample used is mutual fund investors, and the respondents themselves make decisions to sell or buy mutual funds. The total of respondents is 116 respondents. The regression method used in this study is binary logistic regression using SPSS software. This study found that financial literacy and risk attitude has a significant effect on disposition bias. Meanwhile, the variable saving motives have no considerable impact on disposition bias.
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References
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Mandell, L. (2008), The Financial Literacy of Young American Adults: Results of the 2008 National Jump $ Tart Coalition Survey of High School Seniors and College Students, The Jump $tart Coalition for Personal Financial Literacy, Washington.
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Powell, M., & Ansic, D. (1997). Gender differences in risk behaviour in financial decision-making: an experimental analysis. Journal of Economic Psychology, 18, 605 – 628.
Ricciardi, V. & Simon, HK (2000). What is Behavioral Finance? Business, Education and Technology Journal, pp. 1-9.
Wahono, H. K. & Pertiwi, D. (2020). Pengaruh financial literacy, materialism, compulsive buying terhadap propensity to indebtedness. International Journal of Financial and Investment Studies (IJFIS), 1(1), 1-14. https://doi.org/10.9744/ijfis.1.1.1-14
Wärneryd, K. (1999). The psychology of saving. A study of economic psychology. Cheltenham: Edward Elgar Publishing.
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Charness, G. Gneezy, U., 2007. Strong gender differences in investment. Mimeo
Chowdhury, S. & Endres, M. (2005). Gender difference and the formation of entrepreneurial self-efficacy. Presented at the United States Association of Small Business (USASBE) Annual Conference, Indian Wells, CA.
Dhavaney, S et al (2007). Household Saving Motive, The Journal of Consumer Affairs, Vol. 41. No. 1.pp. 174-186.
Friestad, Marian and Peter Wright (1994), “The Persuasion Knowledge Model: How People Cope with Persuasion Attempts,” Journal of Consumer Research, 21 (June), 1–31.
Grable, J., & Lytton, RH (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Sendees Review, 8, 163-181.
Harris, CR, Jenkins, M., & Glaser, D. (2006). Gender differences in risk assessment: Why do women take fewer risks than men? Judgment and Decision Making, 1, 48–63.
Hillson DA & Murray-Webster R. 2005. “Understanding and managing risk attitude using applied emotional literacy”. Published by Gower, Aldershot, UK. ISBN 0-566-08627-1 (forthcoming).
Kafayat, A. (2014). Interrelationship of Biases: Effect Investment Decisions Ultimately. Theoretical and Applied Economics XXI 6 (595), 85-110.
Kahneman, D & Tversky, A. (1979). 'Prospect theory: An analysis of decision under risk', Econometrica, vol. 47, no. 2, pp. 263-291. http://dx.doi.org/10.2307/1914185.
Keynes, JM (1936). The general theory of employment, interest and money. London: Macmillan.
Lusardi, A, Olivia S. Mitchell, and Curto, V. 2010. Financial Literacy among the Young. Journal of Consumer Affairs, 44 (2): 358–380.
Mahdzan, NS, & Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: An Exploratory Study In The Malaysian Context. Transformations in Business and Economics, 12(1).
Mandell, L. (2008), The Financial Literacy of Young American Adults: Results of the 2008 National Jump $ Tart Coalition Survey of High School Seniors and College Students, The Jump $tart Coalition for Personal Financial Literacy, Washington.
Pompian, Michael M. (2006). Behavioral Finance and Wealth Management. How to Build Optimal Portfolios That Account for Investor Biases. First Edition. New Jersey: John Wiley & Sons, Inc .
Powell, M., & Ansic, D. (1997). Gender differences in risk behaviour in financial decision-making: an experimental analysis. Journal of Economic Psychology, 18, 605 – 628.
Ricciardi, V. & Simon, HK (2000). What is Behavioral Finance? Business, Education and Technology Journal, pp. 1-9.
Wahono, H. K. & Pertiwi, D. (2020). Pengaruh financial literacy, materialism, compulsive buying terhadap propensity to indebtedness. International Journal of Financial and Investment Studies (IJFIS), 1(1), 1-14. https://doi.org/10.9744/ijfis.1.1.1-14
Wärneryd, K. (1999). The psychology of saving. A study of economic psychology. Cheltenham: Edward Elgar Publishing.
Widjaja, R. & Pertiwi, D. (2021). The influence of emotional factors, materialism, risk perception, and financial literacy on the tendency of debt of millennial generation in Surabaya. International Journal of Financial and Investment Studies (IJFIS), 1(2), 85-93. Retrieved from https://ojs.petra.ac.id/ijfis/index.php/ijfis/article/view/57
Published
2021-09-21
How to Cite
Saputra, J., Astuti, D., & Pertiwi, D. (2021). EFFECT OF FINANCIAL LITERACY, RISK ATTITUDE AND SAVING MOTIVES TO DISPOSITION BIAS ON MUTUAL FUNDS INVESTORS. International Journal of Financial and Investment Studies (IJFIS), 2(1), 27-33. https://doi.org/10.9744/ijfis.2.1.27-33
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