Personality Traits Impact on Investment Decision in Capital Market through Behavioral Bias

Investment in capital market has trendily skyrocketed in Indonesia. Prominent figures disclose publicly-shared education related to capital market even though the majority of them has not executed such advance learning regarding capitals. The invitation for conducting the right decision of investment in capital markets is conveyed by displaying potential benefits from investment without clear and accurate analysis. Millennials, continuously, have been dominating the investment world. Throughout May 2024, young investors aged ≤30 years dominated 55.58% of the total investors. The majority of these young investors is novice investors. Novice investors, generally, assume that trading is uncomplicated because, according to them, it is easily predictable. However, reality-based, investment is unpredictable work of action. Irrational behaviour can be executed by all investors. Millennials have the tendency to participate in investment based on stereotypical assumption, Fear of Missing Out (FOMO) behaviour, and sensitivity. Thus, the objective of this research is to analyse Personality Traits Roles on Investor’s Decision-Making in Capital Market through Behavioural Bias. Research methodology used in this research is quantitative method. The selection of this research’s sample applies purposive sampling technique in which respondents are selected based on the required criteria. Then, the data achieved will be processed by the Structural Equation Modeling to test the influence of each independent variable to its dependent variable directly or indirectly. This study found that all variables, behavioural bias and personality traits, affect investor decision-making. Furthermore, behavioural bias also mediate the influence of personality traits on investor decision-making.