Title : RISK TAKING DECISIONS IN INVESTMENT BASED ON LOSS AVERSION, INFORMATION, AND EVALUATION
Author : YUNININGSIH
Item Type : Thesis (Dissertation)
Abstract
The aim of this research is to examine the effect of the interaction between loss aversion, information and evaluation on risk taking investment decisions. This research consists of the independent variable 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 levels of positive information and negative information, the evaluation variable consists of consistent and inconsistent evaluation levels. Investors who are treated with loss aversion, information, evaluation in gain domain conditions tend to have low risk taking, whereas those in loss domain conditions tend to have high risk taking. The different tendencies for risk taking in different domains are explained in A hypothetical value function. This research is a laboratory experimental research with within subject design 23 factorial design. This research uses the ANOVA difference 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 test results of all hypotheses use the alpha index and post hoc mean contrast test. The results of the ANOVA test showed that there were differences between the gain group and the loss group. The results of the alpha index for all hypotheses show that in the gain domain the risk taking tends to be low, whereas in the loss domain the risk taking tends to be high. The results of the post hoc influence test show 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
