Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision
The purpose of this study is to investigate the salient factors that influence Indonesian cryptocurrency owners in making their investment decision. This study employs intergroup bias, subjective norms, overborrowing, and spending control to explain cryptocurrency investment behavior. The questionna...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-01-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/11/1/17 |
| _version_ | 1797437437702569984 |
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| author | Elisa Tjondro Saarce Elsye Hatane Retnaningtyas Widuri Josua Tarigan |
| author_facet | Elisa Tjondro Saarce Elsye Hatane Retnaningtyas Widuri Josua Tarigan |
| author_sort | Elisa Tjondro |
| collection | DOAJ |
| description | The purpose of this study is to investigate the salient factors that influence Indonesian cryptocurrency owners in making their investment decision. This study employs intergroup bias, subjective norms, overborrowing, and spending control to explain cryptocurrency investment behavior. The questionnaire was collected from 309 respondents from the five largest internet user areas: Jakarta, Surabaya, Bandung, Semarang, and Medan. This study executes the research framework using binary logistic regression. The results reveal that intergroup bias and overborrowing are the most impulsive factors contributing to the cryptocurrency investment decisions over the past year. Furthermore, after November 2021, Indonesian crypto owners are more irrational in a bearish period since their investment decisions are driven by their desire to be accepted in the social group. Moreover, when they have overindebtedness, instead of solving their debt problems, they prefer to spend their money on cryptocurrency investments. The subjective norms’ influencers suggest that crypto owners not invest when the cryptocurrency price is sharply declining. The findings contribute to the dual-systems perspective and social contagion theories, enriching the empirical study regarding investment behavior. |
| first_indexed | 2024-03-09T11:19:16Z |
| format | Article |
| id | doaj.art-81b42d79d9834522a79ec9b2ea3cd6f8 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-09T11:19:16Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-81b42d79d9834522a79ec9b2ea3cd6f82023-12-01T00:22:08ZengMDPI AGRisks2227-90912023-01-011111710.3390/risks11010017Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment DecisionElisa Tjondro0Saarce Elsye Hatane1Retnaningtyas Widuri2Josua Tarigan3Department of Accounting, School of Business and Management, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, IndonesiaDepartment of Accounting, School of Business and Management, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, IndonesiaDepartment of Accounting, School of Business and Management, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, IndonesiaDepartment of Accounting, School of Business and Management, Petra Christian University, Siwalankerto 121-131, Surabaya 60236, IndonesiaThe purpose of this study is to investigate the salient factors that influence Indonesian cryptocurrency owners in making their investment decision. This study employs intergroup bias, subjective norms, overborrowing, and spending control to explain cryptocurrency investment behavior. The questionnaire was collected from 309 respondents from the five largest internet user areas: Jakarta, Surabaya, Bandung, Semarang, and Medan. This study executes the research framework using binary logistic regression. The results reveal that intergroup bias and overborrowing are the most impulsive factors contributing to the cryptocurrency investment decisions over the past year. Furthermore, after November 2021, Indonesian crypto owners are more irrational in a bearish period since their investment decisions are driven by their desire to be accepted in the social group. Moreover, when they have overindebtedness, instead of solving their debt problems, they prefer to spend their money on cryptocurrency investments. The subjective norms’ influencers suggest that crypto owners not invest when the cryptocurrency price is sharply declining. The findings contribute to the dual-systems perspective and social contagion theories, enriching the empirical study regarding investment behavior.https://www.mdpi.com/2227-9091/11/1/17cryptocurrencyintergroup biassubjective normsself-controloverborrowingspending control |
| spellingShingle | Elisa Tjondro Saarce Elsye Hatane Retnaningtyas Widuri Josua Tarigan Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision Risks cryptocurrency intergroup bias subjective norms self-control overborrowing spending control |
| title | Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision |
| title_full | Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision |
| title_fullStr | Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision |
| title_full_unstemmed | Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision |
| title_short | Rational versus Irrational Behavior of Indonesian Cryptocurrency Owners in Making Investment Decision |
| title_sort | rational versus irrational behavior of indonesian cryptocurrency owners in making investment decision |
| topic | cryptocurrency intergroup bias subjective norms self-control overborrowing spending control |
| url | https://www.mdpi.com/2227-9091/11/1/17 |
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