Behavioral Factors Influencing Investment Decision-Making by College Student An Empirical Study in Bali Province, Indonesia

The purpose of this research is to empirically examine the effect of behavioral factors in investment decision-making. This study examines behavioral factors (Heuristics, Prospects, Market, and Herding) that influence stock investment decisions by College students. This research was conducted in the province of Bali-Indonesia. Data were collected by survey method through questionnaires. The respondents were students who have invested in shares. Data were analyzed using multiple linear regression. The proxy of behavioral factors is determined by factor analysis. The analysis results show that the heuristic behavior factor carried out by students in investment decisions is availability bias. Prospect behavior factor is mental accounting, market behavior is past stock price trends, and the forming factor of herding behavior is the speed with which other investors react. The results of multiple linear regression analysis showed that heuristic, did not affect investment decisions, prospect factors influenced investment decisions, market behavior factors influenced investment decisions and herding had a negative effect on investment decisions. Keywords: Behavior, Heuristics, Prospect, Market, Herding