The Influence of Herding and Overconfidence on Investment Intention in Cikampek

Abstract

This study aims to examine the effects of herding and overconfidence on individuals’ investment interest in Cikampek City. The herding variable is measured through several key dimensions, including imitative behavior, market pressure, price movements, and social influence, while overconfidence is conceptualized through dimensions such as the overestimation of one’s own abilities, excessive confidence in expected outcomes, miscalibration in assessing risks and information, and the tendency to rely on past performance. Investment interest, as the dependent variable, reflects an individual’s tendency to be attracted to, seek information about, and form expectations when considering and intending to invest in instruments registered with the Indonesian Central Securities Depository (Kustodian Sentral Efek Indonesia/KSEI). This study adopts a quantitative approach using a survey method by distributing questionnaires to residents of Cikampek who show a personal interest in investment activities, with respondents selected through purposive sampling. The sample size was determined using the Lemeshow formula to ensure representativeness, and all data were analyzed using the Partial Least Squares (PLS) method with SmartPLS software to comprehensively examine the relationships among variables.