The Influence of Loss Aversion and Herding on Investment Decisions with Fear of Missing Out (FoMO) as a Mediating Variable

This study aims to analyze the effects of loss aversion and herding behavioral biases on investment decisions among retail investors in Indonesia, with Fear of Missing Out (FoMO) as a mediating variable. The phenomenon of behavioral biases has become increasingly relevant in the digital era, as the rapid flow of information through social media and advancements in financial technology influence how individuals make investment decisions. A quantitative approach was employed by distributing questionnaires to 167 respondents using a purposive sampling method. The data were analyzed using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique with SmartPLS software version 4.1.1.2. The results indicate that both herding and FoMO have a positive and significant effect on investment decisions. Furthermore, FoMO is shown to mediate the relationship between herding and investment decisions, whereas loss aversion does not exhibit a significant effect and is not mediated by FoMO.