DETERMINANT OF YOUNG ADULTS’ INVESTMENT DECISION MAKING IN CAPITAL MARKET (A STUDY OF INDONESIAN YOUNG ADULT’S INVESTORES)

Abstract

Purpose – The purpose of this research paper is to find the determinant of young adults’ investment decision making in capital market. Some past reviews have examined the factor influence investment decision making but, researcher try to mix the behavioral finance, income and emotional intelligence to find determinant of investment decision making. Considering this, present review tries to investigate determinant of young adults’ investment decision making with following factors: income, overconfidence, regret aversion, herd effect, emotional intelligence on the investment decision making. Design/methodology/approach – Questionnaire with 30 items was distributed to young adults’ investors. Finally, the analysis was performed from 220 respondents. The study used quantitative technique using multiple regression analysis. Findings – The researcher found that overconfidence, regret aversion, herd effect, and emotional intelligence have significant influence to investment decision making. However, income has no influence to investment decision making. Originality/value – Authors believes that this is the first study, which did research about the determinant young adults’ investment decision making in capital market which have aged between 18-35 years old also with mix framework from past research. Keywords: Investment Decision Making, Income, Overconfidence, Regret Aversion,