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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