Analysis of the Effect of Overconfidence and Herding on Investor Decisions in Pontianak City
Abstract
This study aims to analyze the effect of Overconfidence and Herding on Investor Investment Decisions in Pontianak City. The sampling technique used in this study is the purposive sampling technique. Based on the predetermined sample selection criteria, the number of samples was 40 respondents. The analytical technique used is an instrument test which includes validity and reliability tests, for the classical assumption test includes normality test, multicollinearity test and linearity test, for statistical analysis includes multiple linear regression analysis, correlation coefficient analysis (R), analysis of the coefficient of determination (R2), simultaneous effect test (F statistic test), partial effect test (t statistical test). The results of the validity test show that the data is valid, the results of the reliability test show that the data is reliable. While the results of the normality test show that the data is normally distributed, the results of the multicollinearity test show that there is no multicollinearity and the results of the linearity test show that the model used has a linear relationship. Based on the results of multiple linear regression analysis, the regression equation obtained is Y = 2.557 + 0.318X1 + 0.056X2, the correlation coefficient analysis (R) of 0.488, the relationship between Overconfidence and Herding with Investment Decisions is quite strong. The coefficient of determination (R2) shows that 23.8% of investment decisions are influenced by overconfidence and herding and the remaining 76.2% is influenced by other variables not examined in this study. Simultaneous effect test results (F test) show that Overconfidence and Herding simultaneously have a significant effect on Investment Decisions. The partial effect test (t statistical test) shows that Overconfidence individually has an influence on Investor Investment Decisions. Meanwhile, Herding individually has no influence on Investment Decisions.
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DOI: http://dx.doi.org/10.18415/ijmmu.v8i11.3102
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