The Influence of the Halo Effect and Familiarity Effect on Generation Z Investment Decisions
Keywords:
Halo Effect, Familiarity Effect, Keputusan Investasi, Risk Perception
Abstract
The rapid growth of digital technology and social media has increased Generation Z’s participation in Indonesia’s capital market. However, investment decisions are often influenced by behavioral biases, particularly the Halo Effect and Familiarity Effect, rather than rational analysis. Previous studies have reported inconsistent findings regarding these relationships, while research examining the moderating role of Risk Perception remains limited, especially among Generation Z investors in Makassar City. This study aims to examine the effects of the Halo Effect and Familiarity Effect on investment decisions, with Risk Perception as a moderating variable. A quantitative survey was conducted among Generation Z investors, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that both the Halo Effect and Familiarity Effect positively and significantly influence investment decisions. Furthermore, Risk Perception strengthens these relationships. These findings contribute to the Behavioral Finance literature by highlighting the moderating role of Risk Perception in Generation Z investment decision making.
References
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Phung, N. T. K., & Quyen, N. L. B. (2025). Finfluencer Exposure and Gen Z Investment Behavior: Risk Perception and Social Influence in Play. Journal of Economics, Finance and Management Studies, 8(8), 5692–5704. https://doi.org/10.47191/jefms/v8-i8-62.
Redaksi OCBC. (2024, December 10). Index Literasi Keuangan Gen Z Minim, Benarkah? https://www.ocbc.id/id/article/2024/12/10/indeks-keuangan-gen-z.
Salam, R. (2025, July). Gen Z dan Milenial Dominasi Investor Pasar Modal di Sulsel. https://makassar.tribunnews.com/2025/07/23/gen-z-dan-milenial-dominasi-investor-pasar-modal-di-sulsel.
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User Innovativeness and Fintech Adoption in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030188.
Soper, D. S. (2014). User Interface Design and the Halo Effect: Some Preliminary Evidence. 20th Americas Conference on Information Systems (AMCIS 2014).
Swedroe, L. (2024). The Halo Effect Drives Demand for Sustainable and Impact Investing.
Zajonc, R. B. (1968). Attitudinal Effects of Mere Exposure. Journal of Personality and Social Psychology, 9(2).
Zhdanov, V., & Simonov, A. (2021). Sell Winners and Buy Losers? The Impact of Familiarity on Individual Investors' Decision Making: Experimental Results. International Journal of Financial Studies, 9(3). https://doi.org/10.3390/ijfs9030047
Ambarwati, R., & Yoga, I. (2025). Decoding Market Signals: How Generation Z Investors in Indonesia Make Investment Decisions. Journal of Business and Management Review, 6(1), 61–73. https://doi.org/10.47153/jbmr.v6i2.483.
Awalia, I., & Raprayoga, R. (2025). Pengaruh Herding Behavior, Overconfidence dan Keputusan Investasi Syariah dengan Locus of Control sebagai Moderasi pada Gen Z di Kota Makassar. EKOMA: Jurnal Ekonomi, 5(1).
Bairagi, P. (2021). Influence of Risk-Perception on Retail Investors' Decision Making. SSRN Electronic Journal, 9(2). https://doi.org/10.2139/ssrn.3846839.
Baker, H. K., & Nofsinger, J. R. (2011). Behavioral Finance: Investors, Corporations, and Markets. https://doi.org/10.1002/9781118258415.
Bank Indonesia. (2026, February 19). BI-Rate Tetap 4,75%: Mendorong Pertumbuhan Ekonomi, Mempertahankan Stabilitas. https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_284326.aspx.
Bustani, B. (2024). Individual Investment: How Financial Literacy and Self-Monitoring Drive Investment Decisions. Individual Investment: How Financial Literacy and Self-Monitoring Drive Investment Decisions, 7(1), 646–660.
Chishti, M. F., Ali, F., Khan, M. R., Khan, I., Luong, N. T., & Ghouri, A. M. (2025). Understanding Behavioural Biases in Investment Decisions: Empirical Insights from an Emerging Market. Cogent Economics and Finance, 13(1). https://doi.org/10.1080/23322039.2025.2567499.
Darwis, H., Suwito, & Zainuddin. (2021). Testing of Behavior Bias: Gamblers' Fallacy, Halo Effect and Familiarity Effect on Investors. International Journal of Research in Business and Social Science, 10(8).
De Vries, A., Erasmus, P. D., & Gerber, C. (2017). The Familiar versus the Unfamiliar: Familiarity Bias amongst Individual Investors. Acta Commercii, 17(1). https://doi.org/10.4102/ac.v17i1.366.
Dwi Ayu Parmitasari, R., & Indriyani, E. M. (2026). Stock Investment Decision on Generation Z in Makassar City: The Role of Fear of Missing Out, Loss Aversion and Financial Literacy. Humanities, Research and Innovation, 3(1).
Fedenia, M., Skiba, H., & Sokolyk, T. (2017). The Effect of Familiarity with Foreign Markets on Institutional Investors' Performance. https://ssrn.com/abstract=2909366.
Ghozali, I., & Kusumadewi, K. A. (2023). Partial Least Squares: Konsep, Teknik dan Aplikasi Menggunakan Smart PLS 4.0 untuk Penelitian Empiris. Yoga Pratama.
Gusti, G. P., G., & W. (2024). The Influence of Financial Literacy on Investment Decision on Investors in Indonesia. Malaysian Business Management Journal, 3(2). https://doi.org/10.26480/mbmj.02.2024.67.72.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2019). Multivariate Data Analysis.
Halim, R., & Pamungkas, A. S. (2023). The Influence of Risk Perception, Overconfidence, and Herding Behavior on Investment Decision. International Journal of Application on Economics and Business, 1(1), 521–529. https://doi.org/10.24912/ijaeb.v1i1.521-529.
Haryanti, E. (2024). Investment Strategy in the Capital Market. JAM Journal of Accounting and Management, 1(2), 31–40.
Hasibuan, T. F., Meifari, M., Muda, I., & Kesuma, S. A. (2023). Technology 4.0 Era Investment Decisions for Millennials and Generation Z. International Journal of Educational Review, Law and Social Sciences (IJERLAS), 3(4), 1297–1304. https://doi.org/10.54443/ijerlas.v3i4.976.
Info Sulsel. (2025, September). Data OJK Tunjukkan Investasi Saham Sulsel Meningkat Tajam Tahun Ini. https://info-sulawesi.com/2025/09/10/data-ojk-tunjukkan-investasi-saham-sulsel-meningkat-tajam-tahun-ini.
Jelita, M. P. (2025). The Influence of Familiarity Bias and Heuristics on Investors' Decisions in Selecting Stocks. International Journal of Business and Applied Economics, 4(4). https://doi.org/10.55927/ijbae.v4i4.202.
Kessel, A. (2025, August). Social Media Influences One-Third of New Investors—Many Regret Their Financial Choices. Investopedia.
Lionardo, H. C., Resubun, L. A., & Sahetapy, K. A. (2025). Role of Familiarity Bias and Confirmation Bias in Investment Decisions: The Moderating Role of Financial Literacy—A Case Study of FEB Students at Universitas Klabat. Jurnal Economic Resource, 8(1). https://doi.org/10.57178/jer.v8i1.1385.
Mahadwartha, P. A., Ismiyanti, F., & Zunairoh. (2023). The Gambler's Fallacy, the Halo Effect, and the Familiarity Effect Based on Risk Profile: Bullish and Bearish Market in Indonesia Stock Exchange. Gadjah Mada International Journal of Business, 25(2). https://doi.org/10.22146/gamaijb.64801.
Phung, N. T. K., & Quyen, N. L. B. (2025). Finfluencer Exposure and Gen Z Investment Behavior: Risk Perception and Social Influence in Play. Journal of Economics, Finance and Management Studies, 8(8), 5692–5704. https://doi.org/10.47191/jefms/v8-i8-62.
Redaksi OCBC. (2024, December 10). Index Literasi Keuangan Gen Z Minim, Benarkah? https://www.ocbc.id/id/article/2024/12/10/indeks-keuangan-gen-z.
Salam, R. (2025, July). Gen Z dan Milenial Dominasi Investor Pasar Modal di Sulsel. https://makassar.tribunnews.com/2025/07/23/gen-z-dan-milenial-dominasi-investor-pasar-modal-di-sulsel.
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User Innovativeness and Fintech Adoption in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030188.
Soper, D. S. (2014). User Interface Design and the Halo Effect: Some Preliminary Evidence. 20th Americas Conference on Information Systems (AMCIS 2014).
Swedroe, L. (2024). The Halo Effect Drives Demand for Sustainable and Impact Investing.
Zajonc, R. B. (1968). Attitudinal Effects of Mere Exposure. Journal of Personality and Social Psychology, 9(2).
Zhdanov, V., & Simonov, A. (2021). Sell Winners and Buy Losers? The Impact of Familiarity on Individual Investors' Decision Making: Experimental Results. International Journal of Financial Studies, 9(3). https://doi.org/10.3390/ijfs9030047
Published
2026-07-12
How to Cite
Daffa, M., Eka Indriyani, & Miftha Farild. (2026). The Influence of the Halo Effect and Familiarity Effect on Generation Z Investment Decisions . International Journal of Economics, Business and Innovation Research, 5(04), 3945-3959. https://doi.org/10.63922/ijebir.v5i04.4953
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