Gender Differences in Investment Biases

Abstract

This research investigates differences in investment bias based on the gender perspective among investors in Indonesia. The investment biases analyzed were overconfidence and herding. These two investment biases were found in many individual investors and often led to suboptimal investment decisions. This research involved 35 male investors and 30 female investors in the Indonesian capital market as respondents. Mann-Whitney test, a non-parametric test, was employed to compare male and female investors' investment bias. The findings revealed that both female and male investors had reasonably high levels of overconfidence and herding. Hypothesis testing results indicated no significant difference in the level of overconfidence or herding between the two groups of investors because most of the participants were novice investors with limited investment knowledge and experience.