The Influence of Behavioral Biases on Financial Decision-Making among Generation Z in Aceh Tamiang: The Mediating Role of Religiosity
Published:
2025-11-30Downloads
Abstract
This study examines the influence of behavioral biases on the financial decision-making of Generation Z in Aceh Tamiang, with religiosity as a potential mediating factor. Generation Z, raised in the digital era with vast financial information access, faces growing challenges in managing finances effectively. Integrating Behavioral Finance Theory with religiosity, the study explores financial behavior within the socio-cultural context of Aceh Tamiang. The research investigates five key variables: Endowment Bias, Overconfidence, Herding Behavior, Religiosity, and Financial Decision-Making Behavior. Using accidental random sampling, 400 respondents aged 15–29 years participated. Results indicate that Endowment Bias, Overconfidence, and Religiosity significantly influence financial behavior, while Herding Behavior has no significant effect. Religiosity acts as a personal value shaping financial behavior rather than a mediating variable. Current outputs include a draft manuscript for an international journal and a draft research poster, with short-term goals focused on finalizing both outputs .Keywords:
behavioral biases financial decision-making generation z religiosity financial behaviorReferences
Abideen, Zain UI, Zeeshan Ahmed, Huan Qiu, and Yiwei Zhao. “Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market.” Risks 11, no. 6 (June 6, 2023): 109. https://doi.org/10.3390/risks11060109.
Ali, Ihsan, JiaNing Liu, Sayed Kifayat Shah, and Muhammad Sualeh Khattak. “Islamic Practices and Investment Decision: The Role of Money Management Skills and Digital Financial Literacy.” Sage Open 15, no. 4 (October 17, 2025). https://doi.org/10.1177/21582440251379142.
Armansyah, Rohmad Fuad, Herwin Ardianto, and Chitra Laksmi Rithmaya. “UNDERSTANDING GEN Z INVESTMENT DECISIONS: CAPITAL MARKET LITERACY AND EMOTIONAL BIASES.” Jurnal Manajemen Dan Kewirausahaan 25, no. 2 (October 2, 2023): 105–19. https://doi.org/10.9744/jmk.25.2.105-119.
Banerjee, A. V. “A Simple Model of Herd Behavior.” The Quarterly Journal of Economics 107, no. 3 (August 1, 1992): 797–817. https://doi.org/10.2307/2118364.
Barberis, Nicholas, and Richard Thaler. “Chapter 18 A Survey of Behavioral Finance,” 1053–1128, 2003. https://doi.org/10.1016/S1574-0102(03)01027-6.
Baron, Reuben M., and David A. Kenny. “The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.” Journal of Personality and Social Psychology 51, no. 6 (1986): 1173–82. https://doi.org/10.1037/0022-3514.51.6.1173.
Bikhchandani, Sushil, and Sunil Sharma. “Herd Behavior in Financial Markets.” IMF Staff Papers 47, no. 3 (July 1, 2000): 279–310. https://doi.org/10.2307/3867650.
Creswell, W. John. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Edited by 4th Ed. Thousand Oaks, CA: Sage., 2014.
———. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Manual Therapy. Vol. 16, 2014. https://doi.org/10.1016/j.math.2010.09.003.
Ericson, Keith M. Marzilli, and Andreas Fuster. “The Endowment Effect.” Cambridge, MA, August 2013. https://doi.org/10.3386/w19384.
Hair, Joseph F, William, Rolph, Black Barry J., and Babin. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage, 2017.
Hair, Joseph F., G. Tomas M. Hult, Christian M. Ringle, Marko Sarstedt, Nicholas P. Danks, and Soumya Ray. Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Classroom Companion: Business. Cham: Springer International Publishing, 2021. https://doi.org/10.1007/978-3-030-80519-7.
Hair, Joseph F., Jeffrey J. Risher, Marko Sarstedt, and Christian M. Ringle. “When to Use and How to Report the Results of PLS-SEM.” European Business Review 31, no. 1 (January 14, 2019): 2–24. https://doi.org/10.1108/EBR-11-2018-0203.
Halder, Papi, and Prof (Dr.) Ram Milan. “Challenges of Behavioral Finance in Investment Decision Making.” International Journal of Research and Scientific Innovation XI, no. V (2024): 1028–34. https://doi.org/10.51244/IJRSI.2024.1105068.
Hilary, Gilles, and Kai Wai Hui. “Does Religion Matter in Corporate Decision Making in America?” Journal of Financial Economics 93, no. 3 (September 2009): 455–73. https://doi.org/10.1016/j.jfineco.2008.10.001.
Indriana, Muhammad Yusuf, Lina Mariana, Asryanti, Nur Sandi Marsuni, and Ismawati. “INCREASING FINANCIAL INCLUSION OF GENERATION Z THROUGH DIGITAL LITERACY, LIFESTYLE, AND QRIS MEDIATED PATH ANALYSIS.” Jurnal Reviu Akuntansi Dan Keuangan 16, no. 01 (2025): 205–19. https://doi.org/10.22219/jrak.v16i1.43835.
Kahneman, Daniel, Jack L Knetsch, and Richard H Thaler. “Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias.” Journal of Economic Perspectives 5, no. 1 (February 1, 1991): 193–206. https://doi.org/10.1257/jep.5.1.193.
Kahneman, Daniel, and Amos Tversky. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47, no. 2 (March 1979): 263. https://doi.org/10.2307/1914185.
Latipah, Yeni, Indri Supriani, and Heri Sudarsono. “WHAT DRIVES THE INTENTION OF MILLENNIALS AND GENERATION Z TO PAY ZIS VIA DIGITAL PLATFORM? RELIGIOSITY AS THE MODERATING VARIABLE.” Jurnal Ekonomi Dan Bisnis Islam (Journal of Islamic Economics and Business) 10, no. 2 (November 30, 2024). https://doi.org/10.20473/jebis.v10i2.62338.
Mahmood, Faiq, Rabia Arshad, Shoaib Khan, Alia Afzal, and Mohsin Bashir. “Impact of Behavioral Biases on Investment Decisions and the Moderation Effect of Financial Literacy; an Evidence of Pakistan.” Acta Psychologica 247 (July 2024): 104303. https://doi.org/10.1016/j.actpsy.2024.104303.
Newman, W. Lawrence. Social Research Methods: Qualitative and Quantitative Approaches. Seventh Ed. England: UK: Pearson, 2014.
Nuwailah, Jaenal Effendi, and Wita Juwita Ermawati. “Young Muslims’ Financial Behavior: Money Attitudes and Financial Literacy by Debt Status.” Review on Islamic Accounting 4, no. 2 (February 28, 2025). https://doi.org/10.58968/ria.v4i2.603.
Odean, Terrance. “Are Investors Reluctant to Realize Their Losses?” The Journal of Finance 53, no. 5 (October 17, 1998): 1775–98. https://doi.org/10.1111/0022-1082.00072.
Patrisia, Dina, Abror Abror, Shabbir Dastgir, and Rita Rahayu. “Generation Z’s Financial Behaviour: The Role of Islamic Financial Literacy.” ISRA International Journal of Islamic Finance 15, no. 2 (May 23, 2023): 20–37. https://doi.org/10.55188/ijif.v15i2.540.
Pompian, Michael M., ed. Behavioral Finance and Investor Types. Wiley, 2012. https://doi.org/10.1002/9781119202417.
Preacher, Kristopher J., and Andrew F. Hayes. “Asymptotic and Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models.” Behavior Research Methods 40, no. 3 (August 2008): 879–91. https://doi.org/10.3758/BRM.40.3.879.
Purwadani, Eldiana, and Ahmad Ajib Ridlwan. “Millennial Intention to Pay Zakat: The Effect of Religiosity and Attitudes.” ZISWAF: JURNAL ZAKAT DAN WAKAF 9, no. 1 (June 30, 2022): 73. https://doi.org/10.21043/ziswaf.v9i1.15150.
Rahmawati, Umi, and Surya Raharja. “Investment Decision-Making With Fear of Missing Out As a Mediating Variable Among Generation Z Investors.” Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) 7, no. 3 (2024): 8461–82.
Raj, Gargi. “Biases and Investment Decision: An Analysis of Demographics Using PLS-MGA.” International Journal of Accounting & Information Management 34, no. 1 (March 3, 2026): 123–44. https://doi.org/10.1108/IJAIM-08-2024-0282.
Ritter, Jay R. “Behavioral Finance.” Pacific-Basin Finance Journal 11, no. 4 (September 2003): 429–37. https://doi.org/10.1016/S0927-538X(03)00048-9.
Runtuwene, Maria Ester, and Novie P Sibilang. “The Influence of Herding Behavior and Confirmation Bias on Investment Decision in Generation Z with Gender as Moderating Variable.” Klabat Accounting Review 5, no. 2 (September 30, 2024): 111. https://doi.org/10.60090/kar.v5i2.1128.111-122.
Sarstedt, Marko, Joseph F. Hair, Mandy Pick, Benjamin D. Liengaard, Lăcrămioara Radomir, and Christian M. Ringle. “Progress in Partial Least Squares Structural Equation Modeling Use in Marketing Research in the Last Decade.” Psychology & Marketing 39, no. 5 (May 27, 2022): 1035–64. https://doi.org/10.1002/mar.21640.
Sekaran, U., and R Bougie. Research Methods for Business, A Skill-Building Approach. 5th ed. Wiley, 2020.
Setiawati, Nila Tri, and Rasistia Wisandianing Primadineska. “Financial Behavior of Generation Z in Indonesia: Impact of Literacy, Technology and Lifestyle.” Telaah Bisnis 26, no. 1 (July 28, 2025): 55. https://doi.org/10.35917/tb.v26i1.596.
Tasman, Abel, Syukri Lukman, Tafdil Husni, Rida Rahim, and Mohamad Fany Alfarisi. “An Analysis of Investment Decisions among Gen Z: Examining the Influence of Risk Perception, Religiosity, and Overconfidence.” Jurnal Ekonomika Dan Bisnis (JEBS) 4, no. 2 (May 18, 2024): 188–94. https://doi.org/10.47233/jebs.v4i2.1645.
Thaler, Richard. “Toward a Positive Theory of Consumer Choice.” Journal of Economic Behavior & Organization 1, no. 1 (March 1980): 39–60. https://doi.org/10.1016/0167-2681(80)90051-7.
Tikaromah, Oom, Maharani Dwi Astuti, Sunita Dasman, Eka Avianti Ayuningtyas, Fakultas Ekonomi, and Dan Bisnis. “FINANCIAL LITERACY AND HERDING EFFECTS ON GENERATION Z’S SAVING BEHAVIOR: EVIDENCE FROM BEKASI DISTRICT.” E-JURNAL EKONOMI DAN BISNIS UNIVERSITAS UDAYANA 15, no. 03 (2026): 280–91. https://ejournal4.unud.ac.id/index.php/eeb/.
Trivani, Gea, and Erin Soleha. “The Effect of Financial Literacy, Income and Self Control on Financial Behavior Generation Z (Study on Generation Z Financial Behavior in Bekasi Regency).” Economic Education Analysis Journal 12, no. 1 (March 31, 2023): 69–79. https://doi.org/10.15294/eeaj.v12i1.67452.
Wijaya, Haykal Rafif, Sri Rahayu Hijrah Hati, Irwan Adi Ekaputra, and Salina Kassim. “The Impact of Religiosity and Financial Literacy on Financial Management Behavior and Well-Being among Indonesian Muslims.” Humanities and Social Sciences Communications 11, no. 1 (June 25, 2024): 830. https://doi.org/10.1057/s41599-024-03309-6.
Worthington, Everett L., Nathaniel G. Wade, Terry L. Hight, Jennifer S. Ripley, Michael E. McCullough, Jack W. Berry, Michelle M. Schmitt, James T. Berry, Kevin H. Bursley, and Lynn O’Connor. “The Religious Commitment Inventory--10: Development, Refinement, and Validation of a Brief Scale for Research and Counseling.” Journal of Counseling Psychology 50, no. 1 (January 2003): 84–96. https://doi.org/10.1037/0022-0167.50.1.84.
Yi, Yao, Abdullah Al Mamun, Mohammad Enamul Hoque, and Qing Yang. “Investment for Better Future: The Synergy of Psychological and Cognitive Antecedents on Socially Responsible Investment.” Acta Psychologica 262 (February 2026): 106113. https://doi.org/10.1016/j.actpsy.2025.106113.
License
Copyright (c) 2025 Muhammad Fuad, Safrizal Safrizal, Rini Mastuti, Yani Rizal
This work is licensed under a Creative Commons Attribution 4.0 International License.
