EFFECT OF RELIGION, GENDER, AND OVERCONFIDENT INTERACTIONS ON INVESTMENT DECISIONS

Abstract

The research aims at the moderating effects of religion, moderated by gender, on overconfidence behavior influencing investment decisions. The object of the research is cognitive bias, which is proxied by overconfident behavior. The research added the moderating variables of gender and religion. The research uses primary data from young investor subjects aged 18 to 29 years. The researchers distributed questionnaires to groups of young investors, 467 of whom returned complete questionnaires. The research employed an exploratory survey approach and used purposive sampling. Two types of analyses were performed. It starts with regression analysis to examine the influence of overconfident behavior, which influences investment decisions. Subsequently, moderation effects were analyzed using a Model 3 analysis with the Process tool. The Process tool processed the moderation data to determine whether there was an interaction between these two variables in influencing overconfidence behavior regarding the investment decisions of young investors.

The research found that overconfidence behavior influences young investors' investment decisions. However, the moderation of gender and religion did not result in significant differences in overconfident behavior concerning investment decisions. Implies that the moderation of gender and religion does not sharpen overconfidence behavior in determining investment decisions.