Abstract:
In the beginning of year 2015, economic condition in Indonesia is getting worse. Indonesian currency is getting weaker and impacting on the fall of the Jakarta Composite Index’s price. Previous studies have proven that such situation affecting investors to make irrational investment decisions. The objectives of this research is to find out the influence of demographic and psychological factors toward stock market investors’ risk attitude in Bandung. This research uses factor analysis to summarize 23 variables of psychological factors becoming new factors and binary logistic regression to find out the influence of psychological factors and demographic factors toward stock market investors’ risk attitude. The result of factor analysis shows that from overall of 23 variables of psychological factors, there are only 22 variables which is considered to be valid and summarized into 5 new factors. The result of binary logistic regression shows that only psychological factors that are able to influence stock market investors’ risk attitude.
