The challenge of behavioral bias in investment decisions of PT Mirae asset sekuritas users in Malang city

Kurniawan, Muhammad Riski Fajar and Retnasih, Nora Ria ORCID: https://orcid.org/0000-0001-5915-8871 (2026) The challenge of behavioral bias in investment decisions of PT Mirae asset sekuritas users in Malang city. Journal Management, Business, and Accounting, 24 (3). pp. 287-310. ISSN 2655-826

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Abstract

Cognitive biases such as loss aversion and herding bias often influence investment decision-making, particularly among retail investors amidst macroeconomic uncertainty due to heated geopolitics, leading to Fear of Missing Out (FOMO) events, which reinforce these behavioral biases when making investment decisions. This study aims to investigate how loss aversion and herding bias influence investment decisions through FOMO, which serves as an intervening variable among investors using the services of PT Mirae Asset Sekuritas in Malang City, with a population of 8,634 investors. The researchers employed an exploratory quantitative design, using a survey method to collect data via an online questionnaire distributed to 100 respondents selected through purposive sampling. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that the direct influence of loss aversion and herding bias has a positive but insignificant effect on investment decisions. Conversely, loss aversion and herding bias have a positive and significant direct influence on FOMO. However, FOMO does not significantly influence investment decisions and is unable to mediate the indirect relationship between loss aversion and herding bias and investment decisions. These findings indicate that although investors experience psychological pressure in the form of FOMO due to behavioral bias, their investment decisions are ultimately based more on rational considerations and self-analysis, supported by financial literacy and access to education from brokers. These results highlight the importance of strengthening financial literacy based on behavioral finance and the need to monitor investment content on digital platforms to mitigate the impact of psychological bias

Item Type:	Journal Article
Keywords:	loss aversion; herding bias; fear of missing out (fomo); investment decisions; behavioral finance
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics 14 ECONOMICS > 1401 Economic Theory 14 ECONOMICS > 1402 Applied Economics
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Nora Ria Retnasih
Date Deposited:	16 Oct 2026 13:05

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