Is overconfidance and hearding in Ponzi scheme investors influenced by demographic factors?
Maya Sari, Nugraha

Universitas Pendidikan Indonesia

Abstract

This study aims to investigate the impact of demographic factors on investment biases by analyzing the relationship between gender, age marital status, education, employment, length of employment and income levels with herding and overconfidence. Analysis of data gathered from 187 Ponzi Scheme Investors who collected by questionnaire led to the identification demographic characteristic that influences investment biases. By using multiple regressions with dummy variable, we find the significant demographics factors influencing the investment biases. The lengths of employment and income level are positively related to herding and overconfidence, while gender, age, marital status and employment are negatively related. In addition, The Education is positively related to herding, but it is negatively related to overconfidence. These results are important for improve the financial education program for society according to their demographic profile.

Keywords: Demographics, ponzy scheme, herding, overconfidence

Topic: Financial Management and Accounting