Trias Madanika Kusumaningrum, Nunik Dwi Kusumawati, Yuyun Isbanah, Ulil Hartono
Investment decisions are critical in personal financial management. They can have an impact on the well-being of the family. However, these decisions are heavily influenced by the behavioural biases of an investor, such as loss aversion, herding, and overconfidence. These biases can make investors make poor investment decisions. On the other hand, when investors have a good level of financial literacy, investors tend to ignore these biases and make better decisions. This study aimed to determine the effect of loss aversion, herding, and overconfidence on investor investment decisions with financial literacy as moderation. This research method is explanatory causality with the population of all people in Surabaya City with a purposive sampling technique. The analytical tool used is Partial Least Square (PLS). The results showed that Loss Aversion and overconfidence affect Investment Decisions. Herding does not affect investment decisions. Financial literacy as a moderating variable shows that financial literacy is not proven to be a moderating variable between investor bias and investment decisions. © 2025, SRAC - Romanian Society for Quality. All rights reserved.
Management Department, Faculty Economic and Business, Universitas Negeri Surabaya, East Java, Indonesia
