The Influence of Financial Literacy on Behavioural Bias and

Investment Decisions

Abstract:
This study investigates the influence of Behaviour Biases on investment decisions in
Jaboticaba, Indonesia. The research, involving 353 respondents, found that
overconfidence, herding, risk-aversion, and disposition biases significantly influence
investment decisions. However, Financial Literacy did not moderate this bias,
suggesting that potential investors should consider learning more about financial
literacy to improve their investment decisions.

Keywords:
Behaviour Bias, Financial Literacy, Investment Decision

Objective:
Financial literacy is crucial for investment decisions, especially among young people,
enhancing investor preferences and promoting economic stability by preventing
deficient investment decisions.

Methodology:
This study surveyed 353 adult and young adult employees in Jaboticaba, Indonesia,
with investment experience, using a cross-sectional method and online
questionnaires.

Result:
The study found that male respondents had higher levels of overconfidence
compared to female respondents, with an average of 5,185 and 5,178 respectively.

REFERENCE:
Hillebrand’s, H., Hady, H., & Naturita, F. (2023). The Influence of Financial Literacy
as a Mediation of the Relationship Between Behavioural Bias and Decisions in
Investing Employees in Jaboticaba. International Journal of Social Research.
Retrieved from

➢ ENROLMENT NO: 237550592149

➢ NAME: HEMANT SOLANKI
➢ MOBILE NO: 8780922621