Current Challenges in Millennial Investment: An Analysis of Herding Bias through Gender and Technology

Abstract

Good investment decisions can be influenced by various behavioral biases, which cause rational decisions to be irrational, this is a challenge for the millennial generation in investing. The purpose of this study is to analyze the moderating effect of gender on the influence of herding bias on the individual decisions of millennial generation investors in Indonesia, which is moderated again by the characteristics of a technologically literate generation. The object of this study is the moderating effect of gender and the sub-moderation of technology-savvy generational characteristics, with herding bias as the independent variable and investment decisions as the dependent variable. Of the 3,451,513 retail investors listed on the Indonesia Stock Exchange, 1,070 valid questionnaires were collected through Google Forms distributed at 9 regional points in Indonesia. The research findings are that herding bias has a significant effect on investment decisions. Gender can moderate the effect of herding bias on investment decisions. The moderating effect of gender on the relationship between herding bias and investment decisions is highly dependent on the characteristics of the technology-literate generation. Women and men who are not technologically literate are very vulnerable to herding bias and vice versa.