The Effect of Overconfidence Bias and Herding Bias on Investment Decisions in the Millennial Generation in Surabaya

Millennials who are typically adaptable are able to see investment opportunities that are easily done through the world of digital technology. Millennials see investment instruments as one of the opportunities for future income or income related to passive income that influences their investment decisions. The covid-19 event has encouraged investors, especially young people, to invest in stock instruments. One of the reasons is that stock trading transactions can be done anywhere, without requiring high mobility. This is shown by the increase in the number of investors dominated by the Millennial generation, especially during the pandemic. On the other hand, stock decision making based on limited knowledge has resulted in bias. Generally, novice investors tend to make investment decisions based on emotions rather than available data and information. This study used a sample of 100 millennials in Surabaya using a Likert scale. This research was conducted to examine the influence of Overconfidence Bias and Herding Bias on investment decisions of millennial generation in Surabaya. Data was collected using a questionnaire survey, and SmartPLS was used for analysis. The results of this study indicate that Overconfidence Bias and Herding Bias have a significant effect on the investment decisions of millennials in Surabaya.