A B S T R A C T

In financial management theories an investor will act rationally and make a desicion to invest based on the rules in the financial management theory. Nevertheless, in reality the decision making to invest is very often irrational and not in accordance with the financial management theory. This deviation is caused by the bias of investors’ behaviour in making a decision. Investors who only focus on the return of an investment without paying attention to the risks are said to experience overconfidence bias. This research analyses the factors which are considered to influence investors with overconfidence bias in deciding the investment types. The factors are personality type, marital status, income level, work experience, and fields of study that have been taken. This research can contribute to completing the study of financial management, particularly in the investment decision and putting psychological factors in the analysis of financial management

What investors often consider before deciding to invest in various countries is the political situation. The risks faced by investors in the event of political instability are regulatory changes, legal disputes, forced takeovers of companies, disruption to regional stability, policies against acts of terrorism, and changes in state ideology. The purpose of this study is to find a determinant of political stability in Indonesia that will be useful for investors and multinational companies, and the government in maintaining political stability. Systematic secondary data sampling from January 2015 to December 2019 was used for explanatory study purposes and to build a model. This study concludes that the rule of law, control of corruption, and oil prices have a significant effect on political stability in Indonesia, while the inflation rate does not have a significant effect on political stability in Indonesia. The novelty of this research is the formation of a political stability model for Indonesia and why an increase in control of corruption actually has a negative effect on political stability in Indonesia.

The purpose of this study is to confirm the effect of business performance and macroeconomics on stock returns in the industrial sector in the Indonesia Stock Exchange LQ45 index. This study examines eight variables from business performance and macroeconomics, namely: current ratio, debt-equity ratio, total asset turnover, return on equity, inflation rate, interest rate, exchange rate, and political stability to be tested for the effect on the stock return of the industrial sector. Using Generalized Least Square techniques, it is concluded that the Industrial sector in the Indonesia Stock Exchange is strongly influenced by macroeconomic factors rather than business performance factors. This is common in capital markets which are mostly dominated by foreigners because foreign investors are very sensitive to changes in a country's macroeconomic conditions especially if it is related to political conditions. The managerial implications of this research are: decision makers and investors must pay more attention to the factors of political stability in investing, while the government is obliged to maintain political stability to increase the trust of both local investors and foreign investors. From the iteration results, there are two multivariate regression models which are statistically considered the most suitable. The originality of this study is to prove statistically that political stability is very influential on LQ45 stock returns in the industrial sector on the Indonesia Stock Exchange.

As a developing country that still has to develop in all fields and to maintain its economic development, the Indonesian government requires significant funds for development. To fulfill the lack of funds obtained from the tax, the Indonesian government sells bonds. Indonesia's 10-year government bonds are known as Surat Utang Negara (or abbreviated as SUN). This study aims to confirm whether the inflation rate, exchange rate, political stability, and corruption control affect the yield of SUN. The research uses descriptive methods and explanatory studies with secondary data based on systematic sampling of periods chosen from January 2013 to December 2019. Multivariate regression equation models were used with a significance level of 5% for the t-test. The conclusions are: partially and simultaneously inflation rate, exchange rate, control corruption, and political stability have a significant effect on the Indonesian Government Bond. This research found that deteriorating political stability and control corruption would cause government bond yields to increase