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Investor behavior based on personality and company life cycle

Author

Listed:
  • Sitinjak Elizabeth Lucky Maretha

    (Soegijapranata Catholic University of Economics & Business Faculty, Pawiyatan Luhur IV/1 Bendan Duwur, Semarang-Indonesia)

  • Haryanti Kristiana

    (Soegijapranata Catholic University of Psychology Faculty, Pawiyatan Luhur IV/1 Bendan Duwur, Semarang-Indonesia)

  • Kurniasari Widuri

    (Soegijapranata Catholic University of Economics & Business Faculty, Pawiyatan Luhur IV/1 Bendan Duwur, Semarang-Indonesia)

  • Sasmito Yohanes Wisnu Djati

    (Soegijapranata Catholic University of Economics & Business Faculty, Pawiyatan Luhur IV/1 Bendan Duwur, Semarang-Indonesia)

Abstract

This study aims to ensure that the behavior of individual stock investors has the best pattern in accordance with the existing personality, and see the business cycle starting from introduction, growth, maturity, decline in LQ-45 from the proxy of operational cash flows, investment cash flows, and funding cash flows. This study uses the Analytical Hierarchy Process (AHP) method to see what behavior tends to be used in carrying out shareholding transactions. The results of this study create a behavior model of individual stock investors. Individual stock investors in Indonesia tend to have precision personality types in making stock transaction decisions. This type is a dominant combination, stability, and compliance. The model of individual stock investor behavior starts from making a price target; has a relationship between investors to exchange information related to shares monitored; valuation of shares to be transacted. In addition, the behavior of individual stock investors tends to have accounting information and corporate environmental concerns. Behavioral model Individual stock investors who already have two years or more experience in stock transactions, will have a unique pattern of technical analysis and their own fundamental analysis.

Suggested Citation

  • Sitinjak Elizabeth Lucky Maretha & Haryanti Kristiana & Kurniasari Widuri & Sasmito Yohanes Wisnu Djati, 2019. "Investor behavior based on personality and company life cycle," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(2), pages 23-38, August.
    • Handle: RePEc:vrs:hjobpa:v:10:y:2019:i:2:p:23-38:n:2
    DOI: 10.2478/hjbpa-2019-0013
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    References listed on IDEAS

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    1. Andrija Sabol & Matej Šander & Durdica Fuckan, 2013. "The Concept of Industry Life Cycle and Development of Business Strategies," Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013,, ToKnowPress.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Shefrin, Hersh & Statman, Meir, 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence," Journal of Finance, American Finance Association, vol. 40(3), pages 777-790, July.
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    More about this item

    Keywords

    Investor Behavior; Decision Model; Personalities precisionist; Company life cycle;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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