Title : RISK TAKING DECISIONS IN INVESTMENT BASED ON LOSS AVERAGE, INFORMATION, AND EVALUATION
Author : YUNININGSIH
Item Type : Thesis (Dissertation)
Abstract
The purpose of this study is to examine the effect of the interaction between loss aversion, information, and evaluation on investment risk-taking decisions. This study consists of an independent variable of risk taking and three treatment variables, namely loss aversion, information, and evaluation. Each treatment variable has two levels. The loss aversion variable consists of gain and loss levels, the information variable consists of positive and negative information levels, the evaluation variable consists of consistent and inconsistent evaluation levels. Investors treated with loss aversion, information, and evaluation in the gain domain condition tend to have low risk taking, conversely, if in the loss domain condition tend to have high risk taking. The tendency of differences in risk taking in different domains is explained in A hypothetical value function. This study is a laboratory experimental study with a within-subject design 23 factorial design. This study uses the ANOVA test to determine whether there is a difference in risk taking between loss aversion, information, and evaluation from the gain group and loss aversion, information, and evaluation from the loss group. The results of all hypothesis tests use the alpha index and the post hoc mean contrast test. The results of the ANOVA test show a difference between the gain group and the loss group. The alpha index results for all hypotheses indicate that in the gain domain, risk-taking tends to be low, whereas in the loss domain, risk-taking tends to be high. The results of the post-hoc effect test indicate that all hypotheses have a significant influence between loss aversion, information, and evaluation on risk-taking decisions.
Keywords: evaluation, information, investment, loss aversion, risk taking