Published Paper Details:

This research paper aims to understand the characteristics of Indonesian stock investors by analyzing their levels of financial literacy and psychological bias tendencies. The study explores the level of financial literacy, differentiated into general financial literacy, financial report literacy, and stock investment literacy, and the level of psychological biases which are cognitive biases that can influence investment decision-making. The research utilizes quantitative surveys to gather comprehensive data from a sample of 153 Indonesian stock investors. The findings reveal that there is a significant difference both in the level of financial literacy and the level of psychological bias among investors. Moreover, the study identifies specific psychological biases commonly observed among Indonesian stock investors, such as overconfidence, loss aversion, and herding behavior. It is also found that stock investment literacy level is high, but it is lower for financial report literacy. These findings contribute to the existing literature on investor behavior and provide valuable insights for policymakers, financial institutions, and individual investors seeking to improve their investment decision-making processes. Enhancing financial literacy through educational initiatives and interventions can help mitigate the negative impact of psychological biases and foster a more informed and rational investment culture in Indonesia.