Abstract :
ABSTRACT
The purpose of this study is to examine the factors that influence individual
investors in Palembang in terms of making stock?s investment decision in Bursa
Efek Indonesia. This study uses Behavioral Finance, Regret Theory, Over/Under
Reacting Theory, and Signalling Theory. The populations are the individual
investors in Palembang that have been investing in Bursa Efek Indonesia with the
total of 113 respondents. Factor analysis method is used to analyzed the data
using the SPSS program. The result of this study showed that there are eight
factors that influence the individual investors in Palembang in terms of making
stock?s investment decision in Bursa Efek Indonesia, such as minimum risk of
investment, firm reputation, firm?s performance and firm?s stock price, recommendations obtained by the investor, returns and dividends shared by the
firm, self preference, self image, also broker?s opinion and pers, with the returns
and dividends shared by the firm as the dominant factor.
Keywords: individual investor, investment decision