Pengaruh Persepsi Risiko dan Financial Wellbeing terhadap Keputusan Investasi dengan Overconfidence Bias sebagai Variabel Moderasi pada Gen Z di Parepare

Abstract

The purpose of this study is to examine how risk perception and financial health affect investment decisions among Generation Z in Parepare City, as well as how biinfluences these factors. The growing involvement of Generation Z in digital investing activities, which is not necessarily accompanied by the capacity to make logical investment decisions, is the driving force for this study. According to behavioral finance, financial circumstances, personal psychological biases, and subjective judgments all have an impact on investing choices in addition to logical ones. This study used a quantitative methodology, using questionnaires to collect data. With the aid of SmartPLS software, the Partial Least Square–Structural Equation Modeling (PLS-SEM) approach was used to evaluate the gathered data. The study's findings show that Generation Z's investment choices in Parepare City are significantly influenced by their sense of risk. This implies that respondents are more mature and cautious when making financial decisions if they have a better grasp of investment hazards. Investment choices are also significantly impacted by financial wellness. This suggests that individuals who are able to meet their demands, feel financially secure, and have more stable financial circumstances are often better equipped to make investment decisions. In the meanwhile, neither the impact of financial wellness nor the impact of risk perception on investment decisions can be mitigated by overconfidence bias. These results show that direct factors, including risk perception and financial wellness, have a greater impact on Generation Z's investment decisions in Parepare City than interactions involving overconfidence bias. Therefore, even though not all behavioral biases serve as moderating variables, this study supports the behavioral finance concept that investing decisions are impacted by psychological factors and financial situations.