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Understanding Factors Affecting Investment Decision-Making During Pandemic
Evelyn Evelyn, Jossenia Leonora Widyanto, Setiani Putri Hendratno

Last modified: 2022-06-12


Investment decision-making is a complex process and play’s vital role in achieving investor goals. The current COVID-19 pandemic didn’t mitigate investors’ enthusiasm for investing in Indonesian stock market. The growth of investors in Indonesia has hits a new record. By the end of 2021, number of single investor identification will have surpassed 7.5 million. This study objectives to investigate factors that affect individual’s Indonesian investor in investment decision-making during the pandemic. Four factors such as herding behavior, technology advancement, financial literacy, and firm knowledge were explored. To investigate these variables, questionnaire was designed utilizing the purposive sample method and the Likert scaling methodology. A sample of 338 Indonesian investors who started investing during the COVID 19 pandemic were collected and their data was analyzed. SmartPLS was used to test the data that had been collected. The findings of this study demonstrated that herding behavior, technology advancements, financial literacy, and firm knowledge all had a positive and significant impact on Indonesian investors' investment decisions. However, the results show that technological advances are the most important factor influencing investors’ investment decisions. The outcomes of this study will boost investor confidence or broaden investor knowledge in weighing decisions for developing better investment activities.



Herding; Technology Advancement; Financial Literacy; Firm Knowledge; Investment Decision-making

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