The Influence of Overconfidence, Considering the Past, and Social Interaction on Investment Decisions

Rury Novita Sibulo (), Darwis Said and Muhammad Irdam Ferdiansah
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Rury Novita Sibulo: University Hasanuddin
Darwis Said: University Hasanuddin
Muhammad Irdam Ferdiansah: University Hasanuddin

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 2979-2991 from Springer

Abstract: Abstract This study investigates the influence of overconfidence, considering the past, and social interaction on investment decisions among investors in Makassar. Using a triangulation strategy, data was obtained through questionnaires filled out by investors and detailed interviews to reinforce the analytical outcomes. Findings indicate that overconfidence significantly impacts investment decisions; investors exhibiting higher levels of confidence tend to make more substantial and riskier investments, aligning with previous research suggesting that overconfident investors believe they possess superior information. Additionally, consideration of past experiences proved to be an important factor in decision-making, as investors use their prior investment outcomes as references to assess current risks and opportunities. Social interaction was also found to have a positive effect, where investors engaged in social networks are more likely to make informed decisions. The triangulation approach employed in this study provides consistent evidence between quantitative data from questionnaires and qualitative insights from interviews, enhancing the understanding of investment decision-making dynamics in Makassar. This study provides a deeper understanding of the dynamics of investment decision-making and emphasizes the importance of a comprehensive approach in analyzing investor behavior.

Keywords: Overconfidence; Considering The Past; Social Interaction; Investment Decisions; Triangulation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-758-8_245

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DOI: 10.2991/978-94-6463-758-8_245

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