The Influence Of Overconfident And Herding Behavior On Investment Decisions In Initial Public Offerings (Ipo) On The Indonesia Stock Exchange With Financial Literacy As A Moderating Variable (A Study On Generation Z Students In Bandar Lampung)

Muhammad Amri Sani; Mahatma Kufepaksi

doi:10.63922/ijebir.v5i04.4469

Muhammad Amri Sani Department of Management, Faculty of Economics and Business, Universitas Lampung, Indonesia.
Mahatma Kufepaksi Department of Management, Faculty of Economics and Business, Universitas Lampung, Indonesia.

DOI: https://doi.org/10.63922/ijebir.v5i04.4469

Keywords: Keywords: Overconfident, Herding Behavior, Investment Decisions, IPO, Financial Literacy, Generation Z, Bandar Lampung.

Abstract

The Indonesian capital market has become increasingly dynamic alongside the growing dominance of Generation Z investors, who now account for 54%–60% of total Single Investor Identification (SID) registrations, particularly in high-risk instruments such as Initial Public Offerings (IPOs). The phenomenon of high IPO oversubscription rates during the 2021–2025 period indicates the strong influence of behavioral biases on investment decision-making, particularly overconfident and herding behavior. The problems addressed in this study are whether overconfident and herding behavior significantly influence investment decisions in IPO stocks, and whether financial literacy is capable of moderating the effect of both behavioral biases. This study aims to analyze the influence of overconfident and herding behavior on the investment decisions of Generation Z students regarding IPOs on the Indonesia Stock Exchange, as well as to examine the role of financial literacy as a moderating variable. A quantitative approach was employed, with data collected through questionnaires distributed to 212 Generation Z student respondents in Bandar Lampung using purposive sampling. Data analysis techniques included validity testing, reliability testing, multiple linear regression, and Moderated Regression Analysis (MRA). The results indicate that overconfident and herding behavior each exert a positive and significant influence on the investment decisions of Generation Z students in IPO stocks, with an Adjusted R² value of 35.2%. Furthermore, financial literacy was proven to weaken the influence of both overconfident and herding behavior on investment decisions. Accordingly, the continuous improvement of financial literacy represents a concrete and strategic measure for Generation Z student investors in order to neutralize the impact of behavioral biases and foster more rational and independent investment decision-making.

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