The Benchmark of Investor Decisions to Invest in the Initial Public Offering (Ipo)

Abstract

This study aimed at examining the influence of the benchmark used by investors in the investment decisionmaking process at IPO. The dependent variable in this study was the investment decision while the independent variables were in the form of financial behavior bias consisting of underwriter reputation, CEO reputation, financial statement, representativeness bias, availability bias, overconfidence bias, and self-control bias. Primary data were collected by giving questionnaires to investors who invest at IPO. The population was investors in Yogyakarta with sample of 100 respondents taken by purposive sampling method according to specified criteria. The questionnaire was tested with a validity test and a reliability test. Furthermore, multiple regression analysis was used to test the hypothesis. The results of this study indicated that underwriter reputation, CEO reputation, financial statements, representativeness bias, and availability bias did not affect investment decision-making during the IPO process. While overconfidence bias and self-control bias had a significant positive effect on investment decisionmaking during the IPO process.

The Effect of Representativeness, Availability, Anchoring, Risk Perception, and Herding on Investment Decisions Syariah Investors

“…Research results are supported by research by Rasheed et al (2018), Khan, HH et al (2017), Waweru et al (2014), Rekik and Boujelbene (2013). However, these results are not in sync with the research of Diah Kurniawati and Sutrisno (2019) and Shah et al (2018).…”

“…This is also supported by Phintraco Sekuritas Semarang City, who regularly educates its customers every Sunday. The results of the study are supported by research by Diah Kurniawati and Sutrisno (2019) and are not in line with the research of Rasheed et al (2018), Khan, HH et al (2017), Khan (2015), Ikram (2015)…”

“…Research by Rasheed et al, (2018), Khan, HH et al (2017), Waweru et al (2014), Rekik and Boujelbene (2013) stated that representativeness has a positive effect on investment decisions. In contrast to the research of Kurniawati & Sutrisno (2019) and Shah et al (2018) which state that representativeness does not have a positive effect on investment decisions.…”

“…Availability is a behavioural bias characterized by a tendency to rely on information that is already available (Pompian, 2012). Research by Rasheed et al (2018), Khan, HH et al (2017), Khan (2015), Ikram (2016) states that availability has a positive effect on investment decisions, whereas research by Kurniawati & Sutrisno (2019) found results that stated availability had no effect on Investation decision.…”

The Role of Islamic Investment Ethics in Preventing Fraudulent Investments

“…Investment is part of economic activity (Kurniawati & Sutrisno, 2019). Foreign and domestic investors make investments in various business fields open to investment and investment activities to obtain profits (Rahmad & Utomo, 2017).…”