Behavioral Bias on Investment Decisions: Mediation of FOMO and Risk Perception and Moderation of Religiosity

Authors

  • Rulit Candra Universitas Pendidikan Indonesia
  • Nugraha Nugraha Universitas Pendidikan Indonesia
  • Ikaputera Waspada Universitas Pendidikan Indonesia
  • Imas Purnamasari Universitas Pendidikan Indonesia
  • Muhamad Arief Ramdhany Universitas Pendidikan Indonesia

DOI:

https://doi.org/10.37680/scaffolding.v7i3.8162

Keywords:

Behavioral Biases, Fear of Missing Out, Risk Perception, Religiosity, Investment Decision, Behavioral Finance

Abstract

This study investigates the role of behavioral biases in shaping investment decisions among young investors in Indonesia, with a focus on the mediating effects of fear of missing out (FOMO) and risk perception, as well as the moderating role of religiosity. Drawing upon behavioral finance and prospect theory, we collected data from 384 respondents and analyzed the structural relationships using partial least squares structural equation modeling (PLS-SEM). The research employed a quantitative, explanatory approach using survey methods. Data were collected from 384 respondents selected through proportional random sampling from a population of 12.8 million young investors in Indonesia with Single Investor Identification (SID), using a questionnaire with a 1–7 interval scale. The results show that behavioral biases significantly affect investment decisions, both directly and indirectly through FOMO and risk perception. Religiosity also moderates these relationships, guiding investors toward more ethical and rational choices. The study enriches behavioral finance by combining cognitive, emotional, and cultural perspectives and offers practical insights for improving financial literacy and reducing biased investment behavior.

Downloads

Published

2025-11-21

How to Cite

Candra, R., Nugraha, N., Waspada, I., Purnamasari, I., & Ramdhany, M. A. (2025). Behavioral Bias on Investment Decisions: Mediation of FOMO and Risk Perception and Moderation of Religiosity. Scaffolding: Jurnal Pendidikan Islam Dan Multikulturalisme, 7(3), 622–642. https://doi.org/10.37680/scaffolding.v7i3.8162

Issue

Vol. 7 No. 3 (2025): Pendidikan Islam dan Multikulturalisme

Section

Articles

License

Copyright (c) 2025 Rulit Candra, Nugraha Nugraha, Ikaputera Waspada, Imas Purnamasari, Muhamad Arief Ramdhany

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.