The Effect of Gambler’s Fallacy, Halo Effect, and Familiarity Effect on Investment Decision-Making Among Millennial Investors in Semarang City

Abstract

In the current era, technological advancements have increasingly facilitated various aspects of public services, including access to capital markets among younger generations. Over the last five years, the number of investors in Central Java has continued to increase, with Semarang City recording the highest growth in young investors within the region. This study aims to determine the effects of gambler’s fallacy, halo effect, and familiarity effect on investment decision-making among millennial investors. The population of this study consists of young investors in Semarang City, with 100 respondents selected through purposive sampling. Multiple linear regression analysis was employed as the analytical method. The findings indicate that gambler’s fallacy, halo effect, and familiarity effect have significant influences on investment decision-making. Moreover, gambler’s fallacy and familiarity effect biases are found to have stronger influences compared to the halo effect. This study contributes empirical evidence that behavioral biases, including gambler’s fallacy, halo effect, and familiarity effect, play an important role in shaping investment decisions among millennial investors.