Gen Z Investment Buying Behavior During the Covid-19 Pandemic

Abstract

The existence of the COVID-19 pandemic has changed the trends that occur in society, especially in increasing income investing in stocks. The number of companies that went out of business during the pandemic had an impact on the difficulty of finding work, especially for Generation Z as the largest contributor to unemployment due to the pandemic (CNN Indonesia Report, 2020). For Generation Z, information and technology are familiar, the change in Gen Z's behavior where they are aggressively investing in the stock market until finally becoming the dominating force in the capital market has been investigated in this study. The purpose of this study is to explore the effect of Overconfidence Bias on Information Searches, to explore the effect of Overconfidence Bias on Investment Decision Making Behavior, to explore the effect of Information Searches on Investment Decision Making Behavior, to determine the significant effect of Overconfidence Bias on Investment Decisions. Decision Making Behavior is mediated by Information Searches by using or applying quantitative methods with simple random sampling, as well as the SEM PLS .3.0 analysis method. The population in this study were students of S1 Binus BOL University Department of Business Management in Jakarta, amounting to 2310 people. In determining the number of respondents or samples, the authors used the Slovin formula with the error rate in this study can be assumed to be 5%. Respondents in the study were 479 people. Tests have proven that there is a positive and significant effect between Overconfidence Bias on Information Searches, which have a positive and significant effect on Investment Decision Making Behavior but there is no direct positive and significant effect between Overconfidence Bias on Investment Decision Making Behavior, while through mediation variables, then Overconfidence Bias has a positive and significant effect on Investment Decision Making Behavior through Information Searches.