Recognition Heuristic Bias and Cognitive Heuristic In Investment Activities

Dublin Core

Title

Recognition Heuristic Bias and Cognitive Heuristic In Investment Activities

Creator

Marissa Putria, Cipto Wardoyo, Diana Tien Irafahmi

Proceedings Item Type Metadata

meta_title

Recognition Heuristic Bias and Cognitive Heuristic In Investment Activities

Abstract/Description

This study aims to examine in more depth the impacts caused by behavioral bias driven by recognition heuristics and cognitive heuristics in investment activities. This research method uses qualitative with phenomenology of data collection using participant observation and interviews with investors who join the domestic investment community. The results of this study indicate that investor perceptions of heuristic bias in investment activities consist of mental shortcuts and practical mindsets. The second finding is the type of heuristic bias in investment activities such as recognition heuristic bias and cognitive heuristics. The last finding in this study is the impact of recognition heuristic bias and cognitive heuristics in investment activities including suboptimal portfolio performance diversification and major losses on investments owned due to the use of heuristics. The implications of this study as a source of insight for investors to pay more attention to market information and financial readiness in order to avoid detrimental investment decisions and provide the expected benefits in the future. For the Financial Services Authority (OJK), it can be a guideline so that it can provide socialization to the public, especially for novice investors, regarding knowledge, benefits and how to invest properly and correctly to increase the interest and quality of knowledge of novice investors regarding investment.

publication_date

2025/06/15

pdf_url

https://insyma.org/proceedings/files/articles/MARISSA__PUTRIA.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/387

keywords

Recognition Heuristic Bias, Cognitive Heuristic Bias, Investors, Investment Activities

firstpage

469

lastpage

474

issn

3047-857X

conference

Proceedings of the International Symposium on Management (INSYMA)

Volume

22

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Marissa Putria

Author #2

Cipto Wardoyo

Author #3

Diana Tien Irafahmi

no article

76

authors

Marissa Putria, Cipto Wardoyo, Diana Tien Irafahmi

Files

MARISSA__PUTRIA.pdf

Citation

Marissa Putria, Cipto Wardoyo, Diana Tien Irafahmi, “Recognition Heuristic Bias and Cognitive Heuristic In Investment Activities,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/387.

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