Behavioral Finance in the Digital Era: Understanding Investor Psychology in a High-Volatility Market
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Keywords:
Behavioral Finance, Digital Information Overload, Market Sentiment, Investor Confidence, Investment Decision-Making
AbstractThis study investigates the impact of digital information overload and market sentiment on investment decision-making in the digital era, with investor confidence examined as a mediating variable. Using a quantitative research design and data collected from active retail investors through an online survey, the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results reveal that digital information overload negatively influences both investor confidence and investment decisions, while market sentiment exerts a positive effect on both. Furthermore, investor confidence significantly mediates the relationship between the independent variables and investment decision-making, highlighting its central psychological role in the digital investment environment. These findings enrich the behavioral finance literature by incorporating digital-era constructs and provide actionable insights for financial platforms, educators, and regulators to foster more confident and rational investment behavior in volatile markets.Downloads
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Published
2025-06-30
Section
Articles
How to Cite
Willim, A. P. (2025). Behavioral Finance in the Digital Era: Understanding Investor Psychology in a High-Volatility Market. Jurnal Informatika Ekonomi Bisnis, 7(2), 323-327. https://doi.org/10.37034/infeb.v7i2.1134
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