Factor Analysis of Investor Behavior in Indonesian Stock Exchange during COVID-19 Pandemic

Liliana Inggrit Wijaya, Zunairoh


This study analyzes the behavioral factors of investors in deciding stock in-vestments in the Indonesia Stock Exchange during the Covid-19 pandemic. This research uses factor analysis to explain behavioral factors considered by individual investors in making investment decisions by conducting literature studies, distributing questionnaires to investors, conducting analysis, and discussing research results. The results showed that individual investors considered eight factors in making investment decisions, namely a combination of prospect theory, market, herding, and heuristics. From the eight factors, it can be concluded that the factors considered in making investment decisions are avoidance, following, experience, learning orientation, locus of control, beliefs revision, careful, do not want to lose. This study was to obtain an overview of behavioral factors that individual investors consider in making stock investment choices in companies listed at the Indonesia Stock Exchange during the Covid-19 pandemic. The number of studies that use behavioral finance for frontier and emerging markets, such as in Indonesia, is far less than those conducted in developed markets. Behavioral finance studies that discuss investor behavior in choosing stocks in pandemic conditions are still limited, especially in the Covid-19 conditions.

Keywords: COVID-19 pandemic, behavioral finance, investment decisions.

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