Behavioral bias and risk perception in cryptocurrency investment decisions of Generation Z

Syardhana, Muhammad Fahmi and Prajawati, Maretha Ika ORCID: https://orcid.org/0000-0002-3084-4031 (2025) Behavioral bias and risk perception in cryptocurrency investment decisions of Generation Z. Jurnal Reviu Akuntansi dan Keuangan, 15 (3). pp. 613-635. ISSN 2615-2223

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Abstract

Purpose: This research aims to examine the influence of herding and overconfidence bias, as well as gambler’s fallacy on investment decisions among Generation Z cryptocurrency investors in Malang City.

Methodology: This quantitative research comprised 96 respondents selected using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and mediating relationships among variables.

Findings: The results showed that overconfidence bias had a significant positive effect on investment decision, while herding bias and gambler’s fallacy did not directly affect the variable. However, herding and overconfidence bias significantly influenced risk perception. The relationship between cognitive bias and investment decisions was not influenced by risk perception.

Practical implications: The results report the need for targeted behavioral-based financial education, specifically for young and inexperienced investors in high-risk asset classes such as cryptocurrency. Recognizing and managing cognitive bias particularly overconfidence is essential to improve investment decisions quality.

Originality/value: This research contributes by integrating behavioral finance, heuristic theory, and risk perception into the context of Generation Z investors in cryptocurrency market. The segment of cryptocurrency market has been underexplored in previous research.

Item Type:	Journal Article
Keywords:	behavioral bias; cryptocurrency investment; generation Z; investment decision; risk perception
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 11:45

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