THE EFFECTS OF REGRET AVERSION, MENTAL ACCOUNTING, ILLUSION OF CONTROL, AND OVERCONFIDENCE ON INVESTMENT DECISIONS
DOI:
https://doi.org/10.70248/jmie.v4i1.4430Keywords:
Illusion of Control, Investment Decision, Mental Accounting, Overconfidence, Regret Aversion.Abstract
Investment decisions are influenced not only by rational considerations but also by psychological factors and behavioral biases, as explained by Behavioral Finance Theory, Prospect Theory, and the Theory of Planned Behavior. This study examines the effects of regret aversion, mental accounting, illusion of control, and overconfidence on investment decisions among investors in Bengkulu City. A quantitative approach was employed using primary data collected through questionnaires. Of 395 distributed questionnaires, 358 met the research criteria and were valid for analysis. Data were analyzed using multiple linear regression with IBM SPSS Statistics version 27. The results show that regret aversion significantly affects investment decisions (t = 2.096; Sig. = 0.037), mental accounting significantly affects investment decisions (t = 5.711; Sig. = 0.000), and illusion of control significantly affects investment decisions (t = 6.754; Sig. = 0.000). In contrast, overconfidence has no significant effect (t = 0.543; Sig. = 0.587). These findings indicate that regret aversion, mental accounting, and illusion of control are important psychological factors in investment decision-making, while overconfidence does not significantly influence investment decisions. Practically, investors and capital market stakeholders, particularly the Indonesia Stock Exchange Representative Office in Bengkulu, should strengthen financial education and investor literacy programs addressing behavioral biases to support more informed and rational investment decisions.
References
Addinpujoartanto, N. A., & Darmawan, S. (2020). Pengaruh Overconfidence, Regret Aversion, Loss Aversion, Dan Herding Bias Terhadap Keputusan Investasi Di Indonesia. Jurnal Riset Ekonomi Dan Bisnis, 13(3), 175. https://doi.org/10.26623/jreb.v13i3.2863
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Aqilla, F. T., & Juanda. (2023). Pengaruh Overconfidence, Trait Anger, Trait Anxiety, Herding Effect, dan Self-Monitoring terhadap Keputusan Investasi Investor di Banda Aceh. Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 8(4), 888–906.
Barber, B. M., & Odean, T. (2000). Trading is hazardous to your wealth: The common stock investment performance of individual investors. The Journal of Finance, 55(2), 773–806. https://doi.org/10.1111/0022-1082.00226
Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Economics, 116(1), 261–292. https://doi.org/10.1162/003355301556400
Barberis, N., & Huang, M. (2001). Mental Accounting, Loss Aversion, and Individual Stock Returns. The Journal of Finance, 56(4), 1247–1292. https://doi.org/10.1111/0022-1082.00367
Barberis, N., & Thaler, R. (2003). A survey of behavioral finance. In G. M. Constantinides, M. Harris, & R. M. Stulz (Eds.), Handbook of the Economics of Finance (pp. 1053–1128). Elsevier. https://doi.org/10.1016/S1574-0102(03)01027-6
Bell, D. E. (1982). Regret in Decision Making under Uncertainty. Operations Research, 30(5), 961–981. https://doi.org/10.1287/opre.30.5.961
Bernile, G., Bonaparte, Y., & Delikouras, S. (2025). Stock market experience and investor overconfidence: Do investors learn to be overconfident? Journal of Banking & Finance, 174, 107431. https://doi.org/10.1016/j.jbankfin.2025.107431
Cecilia, I., & Ruslim, H. (2022). Pengaruh Adanya Toleransi Risiko, Ilusi Kontrol dan Keenganan Rasa Menyesal terhadap Pengambilan Keputusan Investasi Investor Muda. Jurnal Manajerial Dan Kewirausahaan, 4(4), 864–870. https://doi.org/10.24912/jmk.v4i4.20537
Fachrudin, K. R. (2024). Pengaruh Overconfidence dan Availability Bias Terhadap Keputusan Investasi. Jurnal Bisnis Net, 7(1), 299–309. https://doi.org/10.46576/bn.v7i1.4433
Fenton-O’Creevy, M., Nicholson, N., Soane, E., & Willman, P. (2003). Trading on illusions: Unrealistic perceptions of control and trading performance. Journal of Occupational and Organizational Psychology, 76(1), 53–68. https://doi.org/10.1348/096317903321208880
Fikri, R., Frima, R., & Rosalina, E. (2022). Pengaruh Herding Factor dan Overconfidence terhadap Kualitas Pengambilan Keputusan Investasi Saham pada Generasi Z (Studi pada Mahasiswa Jurusan Akuntansi Program Studi D-IV Akuntansi Politeknik Negeri Padang). Jurnal Akuntansi, Bisnis Dan Ekonomi Indonesia (JABEI), 1(2), 39–45. https://doi.org/10.30630/jabei.v1i2.28
Gervais, S., & Odean, T. (2001). Learning To Be Overconfident. The Review of Financial Studies, 14(1), 1–27. https://doi.org/10.1093/rfs/14.1.1
Ghozali, I. (2021). Aplikasi Analisis Multivariate dengan Program IBM SPSS 26 (Edisi 10). Badan Penerbit Universitas Diponegoro.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
Hidayah, N. A., & Fitriati, I. R. (2024). Pengaruh Financial Literacy, Overconfidence dan Risk Tolerance Terhadap Keputusan Investasi Produk Pasar Modal. Ranah Research : Journal of Multidisciplinary Research and Development, 6(5), 2288–2299. https://doi.org/10.38035/rrj.v6i5.1108
Hirshleifer, D. (2001). Investor Psychology and Asset Pricing. The Journal of Finance, 56(4), 1533–1597. https://doi.org/10.1111/0022-1082.00379
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263–292. https://doi.org/10.2307/1914185
Karima, N. A., & Sari, N. R. (2022). Pengaruh Literasi Keuangan, Illusion of Control dan Overconfidence terhadap Keputusan Investasi pada Investor di Tulungagung. BUDGETING : Journal of Business, Management and Accounting, 4(1), 74–88. https://doi.org/10.31539/budgeting.v4i1.4274
Langer, E. J. (1975). The illusion of control. Journal of Personality and Social Psychology, 32(2), 311–328. https://doi.org/10.1037/0022-3514.32.2.311
Loomes, G., & Sugden, R. (1982). Regret Theory: An Alternative Theory of Rational Choice Under Uncertainty. The Economic Journal, 92(368), 805–824. https://doi.org/10.2307/2232669
Mahadevi, S. A., & Asandimitra, N. (2021). Pengaruh status quo, herding behaviour, representativeness bias, mental accounting, serta regret aversion bias terhadap keputusan investasi investor milenial di Kota Surabaya. Jurnal Ilmu Manajemen, 9(2), 779–793. https://doi.org/10.26740/jim.v9n2.p779-793
Mayasari, A. (2025, August 22). Investor pasar modal di Bengkulu capai 76.366 orang. ANTARA. https://bengkulu.antaranews.com/berita/432489/investor-pasar-modal-di-bengkulu-capai-76366-orang
Mayora, G. M., & Lestari, W. (2024). The Effect of Risk Perception, Recency Bias, Herding Behavior and Regret Aversion Bias on Investment Decision Making Among The Younger Generation in Surabaya. Ekspektra : Jurnal Bisnis Dan Manajemen, 8(1), 80–94. https://doi.org/10.25139/ekt.v8i1.7482
Moore, D. A., & Healy, P. J. (2008). The Trouble with Overconfidence. Psychological Review, 115(2), 502–517. https://doi.org/10.1037/0033-295X.115.2.502
Mulyana, A., Soleha, E., & Sellina, S. (2023). Gender memoderasi overconfidence dan risk tolerance dalam keputusan investasi. Revitalisasi, 12(1), 91. https://doi.org/10.32503/revitalisasi.v12i1.3828
Nizam, M. S., Mardani, R. M., & Mohamad, B. (2024). Pengaruh Financial Behaviour, Experienced Regret, Dan Mental Accounting Terhadap Keputusan Investasi Pada Crypto (Studi Pada Investor Crypto Di Kota Malang). E-Jurnal Riset Manajemen, 13(01), 4350-4360. https://jim.unisma.ac.id/index.php/jrm/article/view/25778
Nurchayati, S., & Perkasa, D. H. (2024). Peran Illusion of Control, Literasi Keuangan Dan Bias Overconfidence Dalam Mempengaruhi Keputusan Investasi Dipasar Modal Pada Mahasiswa Di Jakarta Barat. Jurnal Bina Bangsa Ekonomika, 17(2). https://doi.org/10.46306/jbbe.v17i2.544
Nurdinda, W., Muslihat, A., & Putra, R. A. K. (2020). Pengaruh Regret Aversion Bias dan Risk Tolerance bagi Investor Muda Jawa Barat terhadap Keputusan Investasi. AKUNSIKA: Jurnal Akuntansi Dan Keuangan, 1, 30–38. https://doi.org/10.31963/akunsika.v1i1.1619
Nurhardika, L., Widjajanti, K., & Indriana, D. (2025). Pengaruh Overconfidence Dan Representativeness Terhadap Keputusan Investasi Investor Di Pasar Modal Dengan Financial Literacy Sebagai Variabel Moderating. Jurnal Magisma, XIII(1), 98–110.
Odean, T. (1998). Volume, volatility, price, and profit when all traders are above average. The Journal of Finance, 53(6), 1887–1934. https://doi.org/10.1111/0022-1082.00078
Pandji, V. C. , Suhartono, E., Tristiarini, N., & Oktafiyani, M. (2024). Pengaruh Self Atribution Bias, Mental Accounting, Familiarity Bias, Terhadap Pengambilan Keputusan Investasi (Studi kasus, Mahasiswa FEB UDINUS SEMARANG). JEMSI (Jurnal Ekonomi, Manajemen, Dan Akuntansi), 10(1), 688–703. https://doi.org/10.35870/jemsi.v10i1.2071
Putri, S. M., Yusmaniarti, Sumarlan, A., & Yuniarti, R. (2025). Pengaruh Regret Aversion, Mental Accounting, dan Illusion Of Control Terhadap Investment Decision. JIAI (Jurnal Ilmiah Akuntansi Indonesia), 10(1), 1–23. https://doi.org/10.32528/jiai.v10i1.3052
Schütze, T., Schmidt, U., Spitzer, C., & Wichardt, P. C. (2024). Illusion of control: Psychological characteristics as moderators in financial decision making. Journal of Risk and Financial Management, 17(2), Article 65. https://doi.org/10.3390/jrfm17020065
Shefrin, H., & Statman, M. (1985). The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence. The Journal of Finance, 40(3), 777–790. https://doi.org/10.1111/j.1540-6261.1985.tb05002.x
Suciwati, D. P., Marwa, S. R., & Susanti, J. (2024). Analisis Hubungan Literasi Keuangan Investor, Pengetahuan Investor, Risk Tolerance Investor Dan Regret Aversion Bias Investor Dengan Keputusan Investasi. Jurnal Bisnis Dan Kewirausahaan, 20(2), 114–122. https://doi.org/10.31940/jbk.v20i2.114-122
Supriadi, A., Djuniardi, D., & Hamzah, A. (2022). Pengaruh Overconfidence Bias, Mental Accounting Dan Familiarity Bias Terhadap Pengambilan Keputusan Investasi. Journal of Global Business and Management Review, 4(1), 50. https://doi.org/10.37253/jgbmr.v4i1.6777
Tang, I. M. H., & Asandimitra, N. (2023). Pengaruh Mental Accounting, Regret Aversion Bias, Herding Bias, Loss Aversion, Risk Perception, dan Financial Literacy Terhadap Keputusan Investasi Investor Generasi Z. Jurnal Ilmu Manajemen, 11(2), 458–473.
Thaler, R. (1985). Mental Accounting And Consumer Choice. Marketing Science, 4(3), 199–214. https://doi.org/10.1287/mksc.4.3.199
Thaler, R. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183–206. https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
Yulistiyani, A., Rapini, T., & Setiawan, F. (2023). Analisis Faktor Financial Knowledge, Financial Behavior, Overconfidence, dan Pendapatan terhadap Keputusan Investasi. Jurnal Ilmu Manajemen, 13(1), 41–56. https://doi.org/10.32502/jimn.v13i1.6452
Zakaria, A., & Megawati, L. (2022). Pengaruh Experienced Regret, Risk Tolarance, Illusion Of Control dan Literasi Keuangan Terhadap Keputusan Investasi Cryptocurrency (Studi kasus pada Exchange Tokocrypto). Jurnal Ilmiah Wahana Pendidikan, 8(17), 12–22. https://doi.org/10.5281/zenodo.7069456
Zeelenberg, M., & Pieters, R. (2007). A Theory of Regret Regulation 1 . 0. Journal of Consumer Psychology, 17(1), 3–18. https://doi.org/10.1207/s15327663jcp1701_3
