Title
Study of Investor Behavior on Stock Investment Decision Making with Self-Monitoring as a Moderating Variable in Generation Y and Generation Z
Authors
Abstract
Purpose: This study examines the influence of psychological biases (trait anger, trait anxiety, overconfidence, and herding) on stock investment decisions among Generation Y and Z investors in North Sumatra. It uniquely investigates the role of self-monitoring as a moderating variable to determine if high self-regulation can mitigate irrational investment behaviors.
Design/methodology/approach: This research employs a quantitative approach, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data from 384 retail investors. Additionally, an independent sample t-test is conducted to identify generational differences in decision-making patterns.
Findings: The results indicate that trait anger and anxiety negatively affect investment decisions, while herding and self-monitoring have a positive influence. Crucially, self-monitoring significantly moderates the relationship between trait anger and herding behavior on investment decisions. Generation Z is found to be more risk-tolerant and technology-driven, whereas Generation Y is more cautious and analytical.
Practical Implications: The findings suggest that financial literacy programs for young investors should go beyond technical analysis to include psychological conditioning. Regulators and investment managers can utilize these insights to design “cooling-off” mechanisms in trading apps or educational modules that enhance self-monitoring skills, thereby reducing impulsive trading.
Originality/Value: Unlike previous studies that solely focus on the direct effects of behavioral biases, this study bridges a theoretical gap by introducing self-monitoring as a psychological buffer. It provides a novel behavioral model for emerging markets, demonstrating how self-regulation can dampen the adverse effects of herding and emotional instability.
Keywords
Investment Decision, Generation Y, Generation Z, Self-Monitoring, Trait Anger
Classification-JEL
K16, H11, H83, D73
Pages
222-255
How to Cite
Sigalingging, E. D., Maksum, A., Bukit, R., & Khaddaf, M. (2026). Study of Investor Behavior on Stock Investment Decision Making with Self-Monitoring as a Moderating Variable in Generation Y and Generation Z. Advances in Decision Sciences, 29(3), 222-255.