Understanding herding behavior among Indonesian stock market investors

This paper examined the factors that affect investor herd behavior. Herd behavior bias is a well- known phenomenon in financial markets which individuals blindly follow investing decisions of others without understanding fundamental principles investment. While extensive research has explored markets, there remains significant gap herding at level individual investors. Previous studies have primarily focused on within market contexts, neglecting examination specific influence among Using sample 217 Indonesian investors this study investigates The findings showed stock influencer credibility had positive impact bias, suggesting with high trust influencers were likely to herd. Financial literacy also negative indicating higher knowledge are less However, was found significance towards when mediated through risk perception. Lastly, perception more contributes existing literature by enhancing our dynamics investors, specifically level. By exploring behavior, it provides valuable insights into mechanisms drive bias. highlight importance targeted education programs and regulatory measures address focusing reducing