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Effect of Representativeness Bias, Availability Bias and Anchoring Bias on Investment Decisions

Muhammad Bayu Aji Sumantri, Neneng Susanti, Pebri Yanida

Widyatama University, Indonesia




This study aims to determine the effect of three types of financial behavioral bias, namely representativeness bias, availability bias, and anchoring bias on investment decisions. This study uses a quantitative method with a purposive sampling technique. Data were collected through questionnaires and analyzed using Structural Equation Modeling (SEM) with the help of SmartPLS 3.0 software. The results of the study show that the two types of financial behavioral bias have a significant effect on investment decisions which are the representativeness bias and the availability bias on investment decisions, while anchoring bias does not have an effect on investment decisions. This research can contribute to investors to better understand the effect of financial behavior bias on investment decisions and to take wiser actions in investing.


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