EXAMINING THE CONTRIBUTION OF INTERNAL FACTORS OF AN INVESTOR IN DRIVING THE INVESTMENT DECISION

The purpose of this study is to investigate the impact internal psychological factors driving on investor’s investment decision making. investor discussed as research objects are financial literacy, loss aversion, and overconfidence. Data were collected from questionnaires fulfilled by investors registered at securities companies in Central Java, Indonesia. Applying multiple regression approach, results suggest that literacy drives positively making decision; aversion negatively decision, overconfidence does not drive decision. As implication, market participants should consider behavior observing stock price movement achieve higher returns. Moreover, exchange institutions include formulating their policy enhance development. KEYWORDS: