Behavioral Biases and Investment Intention: What Drives Gen Z Investors in South Tangerang?

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FORMOSA NEWS

A recent study on financial behavior reveals that Socially Responsible Investing (SRI) awareness serves as the primary driver for beginner investors from Generation Z when making investment decisions. Conducted by Candys Fransiosca and Ika Pratiwi Simbolon from Universitas Bunda Mulia in 2026, this research examines the mindset and digital economic behavior patterns of young adults. These findings are crucial amidst the rapid development of Indonesia's digital capital market, helping stakeholders understand shifting financial preferences.

Previously, many assumed that young investors' trading trends were driven solely by the Fear of Missing Out (FOMO). However, current market dynamics indicate that Gen Z increasingly weighs social values, environmental impact, and rationality when managing financial assets.

To explore this phenomenon thoroughly, the researchers adopted a quantitative approach using a cross-sectional survey method and analyzed the data via Partial Least Squares-Structural Equation Modeling (PLS-SEM). The sample comprised 321 experienced Generation Z investors residing in South Tangerang.

Statistical data analysis highlights several key findings regarding the psychological and behavioral factors influencing Gen Z investment decisions:

• SRI Awareness: Ranks at the top as the most dominant driver with a coefficient value of $\beta = 0.371$.
• Disposition Effect: Acts as the next significant factor influencing the buying and selling patterns of young investors.
• Overconfidence and Herding Behavior: Also contribute to shaping the financial decisions made by respondents.
• Negative Impact of FOMO: Surprisingly, the fear of missing out negatively impacts investment intention with a value of $\beta = -0.109$.

These findings carry broad implications for businesses, the financial industry, and public policymakers in designing targeted financial literacy programs. According to Candys Fransiosca and Ika Pratiwi Simbolon from Universitas Bunda Mulia, a deep understanding of these behavioral biases can assist financial institutions in creating investment instruments aligned with the ethical and sustainability values sought by young investors.

Author Profiles

• Candys Fransiosca – Student at the Management Study Program, Universitas Bunda Mulia.
• Ika Pratiwi Simbolon, S.E., M.M. – Lecturer and researcher at the Management Study Program, Universitas Bunda Mulia.

Research Sources:

• Article Title: Behavioral Biases and Investment Intention Among Generation Z Investors in South Tangerang: A PLS-SEM Approach
• Journal Name: International Journal of Management Analytics (IJMA)
• Publication Year: 2026
• DOI: https://doi.org/10.59890/ijma.v4i3.23
• Official URL: https://dmimultitechpublisher.my.id/index.php/ijma