Testing the Effect of Belief Adjustment Model and Overconfidence on Investment Decision Making

Rofiyah, Farita Dewi and Almilia, Luciana Spica (2017) Testing the Effect of Belief Adjustment Model and Overconfidence on Investment Decision Making. The Indonesian Accounting Review, 7 (2). pp. 177-190. ISSN 2086-3802

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Abstract

This study aims to examine the effect of belief adjustment models, consisting of presentation pattern (Step by Step and End of Sequence), information sequence, and information series, on investment decision making. In addition, this study also examines the effect of the level of overconfidence on investment decision making. The designs of experiment included in this study are presentation pattern 2 × 2 × 2 × 2 (Step by Step and End of Sequence), information sequences (good news followed by bad news and bad news followed by good news), information series (long series and short series), and the level of overconfidence. The research hypotheses are tested using Independent Sample t-test. The results of this study show that there is a recency effect on the presentation pattern of the Step by Step for long and short information series. This is also reflected in the End of Sequence which shows that there is no recency effect occurring in the long series, but there is recency effect occurring in the short series.

Item Type: Article
Subjects: 300 - SOCIAL SCIENCE > 330 - 339 ECONOMICS > 332 - FINANCIAL ECONOMICS > 332.6 - INVESTMENT
Divisions: Bachelor of Accountancy
Depositing User: LUCIANA SPICA ALMILIA
Date Deposited: 04 Nov 2021 03:39
Last Modified: 04 Nov 2021 03:39
URI: http://eprints.perbanas.ac.id/id/eprint/8401

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