Financial literacy as moderation between overconfidence, loss aversion, fear of missing out, and investment decision

Kumalasari, Putri and Prajawati, Maretha Ika ORCID: https://orcid.org/0000-0002-3084-4031 (2025) Financial literacy as moderation between overconfidence, loss aversion, fear of missing out, and investment decision. Jurnal Fokus Manajemen Bisnis, 15 (2). pp. 269-287. ISSN 2088-4079

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Abstract

In recent years, a surge of young investor in Indoensia has been
observed, many of whom rely on peer influence, and limited financial
knowledge to make investment decisions. However, this enthusiasm
is often not accompanied by adequate financial literacy, making young
investors more susceptible to pshychological biases such as
overconfidence, loss aversion and fear of missing out. This study
examines how overconfidence, loss aversion, and fear of missing out
on the investment decisions of generation Z in Malang City, Indonesia
with financial literacy assessed as a moderating variable. In light of
the increasing involvement of young investors in Indonesia, this study
emphasizes the psychological factors influencing investment
behavior. Data were collected through a survey of 96 stock investors,
using quantitative methods with purposive sampling, with SPSS
version 26 as the statistical tool for data analysis, and with moderated
regression analysis used for analysis. The results indicate that
although fear of missing out does not have a positive impact on
investment decisions, excessive confidence and loss aversion do have
a positive impact on investment decisions. The results also show that
financial literacy cannot moderate overconfidence, loss aversion, and
fear of missing out. This study is interesting because it examines how
behavioral biases, financial literacy, and investing behavior interact
with Indonesia's generation Z using the theory of planned behavior
paradigm. By integrating behavioral finance concepts with emotional
considerations, the study offers novel insights into young investors'
decision processes. Nevertheless, the findings are constrained to
generation Z investors in Malang City, Indonesia, limiting the
generalizability to broader populations.

Item Type:	Journal Article
Keywords:	Overconfidence; Loss Aversion; Fear of Missing Out; Financial Literacy; Investment Decision.
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Maretha Ika Prajawati
Date Deposited:	19 Jan 2026 11:47

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