Research Model

Research Operational Terminology/Definitions

Behavioral finance: According to Gachter et al. behavioral finance is the better understanding of investment decisions that affect market prices which are influenced by human and social cognitive and emotional biases. This concept will be measured through this study by overconfidence, loss aversion, risk perception, and herding.



Stock investment decision-making: the decision to use allocated resources to increase future production output or income. In other words, it is purchasing an asset or item with the hope that it will generate income or grow in the future. In finance, stock investment decision is the decision of a monetary asset purchased with the idea that the asset will provide income in the future or rise and be sold at a higher price. Stock investment decision-making will be measured by using these indicators: return rate expectation, the satisfaction of selling and buying decisions, risk diversification, holding stock time period, and choosing stock bulks and types.