The Interaction Between Personality and Risk Perception in Shaping Actual Investor Behavior in the Indonesian Capital Market
Abstract
The Indonesian capital market is undergoing a significant demographic transformation, marked by the dominance of young investors from Generation Z (born 1997–2012) and Millennials (born 1981–1996), who collectively represent more than 80% of all active investors as of 2024. This study examines, both conceptually and analytically, how the interaction between personality traits (Big Five Personality) and risk perception jointly shapes actual investment behavior among these two generations in the Indonesian capital market. Using a systematic literature review approach of SINTA-indexed sources from 2020 to 2025, this study found that: (1) the personality traits Extraversion and Openness to Experience are positively correlated with risk tolerance and transaction frequency; (2) Neuroticism is negatively correlated with the willingness to make investment decisions; (3) Gen Z exhibits more exploratory behavior and is more prone to FOMO (Fear of Missing Out), whereas Millennials tend to be more conservative and structured; and (4) financial literacy acts as an important moderator in the relationship between personality, risk perception, and actual behavior. These findings have theoretical and practical implications for the development of investor education and capital market policies in Indonesia.
References
Adil, M., Singh, Y., & Shamim Ansari, M. (2021). How financial literacy moderate the association between behaviour biases and investment decision? Asian Journal of Accounting Research, 7(1), 17–30.
Ahmad, F. (2020). Personality traits as predictor of cognitive biases: Moderating role of risk-attitude. Qualitative Research in Financial Markets, 12(4), 465–484.
Anwar, R. F., & Leon, F. M. (2022). Faktor-Faktor yang Mempengaruhi Financial Behavior pada Generasi Z di DKI Jakarta. Jurnal Ilmu Manajemen Saburai, 8(2).
Ardani, A. K., & Sulindawati, N. L. G. E. (2021). Pengaruh perkembangan aplikasi investasi, risiko investasi dan pengetahuan investasi terhadap minat investasi pasar modal pada generasi milenial dan generasi Z Provinsi Bali di era pandemi. Vokasi: Jurnal Riset Akuntansi.
Brown, S., & Taylor, K. (2014). Household finances and the ‘Big Five’ personality traits. Journal of Economic Psychology, 45, 197–212.
Bucciol, A., & Zarri, L. (2017). Do personality traits influence investors’ portfolios? Journal of Behavioral and Experimental Economics, 68, 1–12.
Chen, T. H., Ho, R. J., & Liu, Y. W. (2019). Investor personality predicts investment performance? A statistics and machine learning model investigation. Computers in Human Behavior, 101, 409–416.
Dhiman, B., & Raheja, S. (2018). Do personality traits and emotional intelligence of investors determine their risk tolerance? Management and Labour Studies, 43(1–2), 88–99.
Dickason, Z., & Ferreira, S. (2018). Establishing a link between risk tolerance, investor personality and behavioural finance in South Africa. Cogent Economics & Finance, 6(1), 1519898.
Doğan, M., Sayılır, Ö., Sevim, N., Kırselioğlu, D., & Yesilyurt, S. (2026). Fear of Missing Out (FOMO) and crypto asset investment behavior. International Journal of Social Inquiry, 19(1), 18–34. https://doi.org/10.37093/ijsi.1764251
Durand, R. B., Newby, R., & Sanghani, J. (2008). An intimate portrait of the individual investor. The Journal of Behavioral Finance, 9(4), 193–208.
Fahreza, M., & Surip, N. (2018). Pengaruh pengetahuan investasi, persepsi risiko, dan persepsi kontrol perilaku terhadap minat investasi saham. Jurnal SWOT, VIII(2), 346–361.
Filbeck, G., Hatfield, P., & Horvath, P. (2005). Risk aversion and personality type. The Journal of Behavioral Finance, 6(4), 170–180.
Gilliam, J., Chatterjee, S., & Grable, J. (2010). Measuring the perception of financial risk tolerance: A tale of two measures. Journal of Financial Counseling and Planning, 21(2), 30–43.
Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14(4), 625–630.
Hasanah, et al. (2022). Persepsi risiko dan minat investasi: Studi pada mahasiswa. Jurnal Akuntansi. Jonathan, R., & Sumani, S. (2021). Millennial investment decision analysis. Business and Entrepreneurship Review, 21(2), 279–296.
KSEI. (2024). Statistik Pasar Modal Indonesia 2024. PT Kustodian Sentral Efek Indonesia.
Kumala, K. N., & Venusita, L. (2023). Persepsi risiko dan lingkungan sosial terhadap minat investasi di pasar modal dimoderasi dengan media sosial. Jurnal Akuntansi Unesa, 11(3), 297.
Lavan, et al. (2024). Generational differences in investment risk response: Millennials vs. Gen Z. Journal of Behavioral Finance.
Martaningrat, et al. (2024). Financial influencers and herding behavior in Indonesian capital market. Journal of Finance and Investment.
Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment management and personality type. Financial Services Review, 17(3), 219–236.
McCrae, R. R., & Costa, P. T. Jr. (1997). Personality trait structure as a human universal. American Psychologist, 52(5), 509–516. https://doi.org/10.1037/0003-066X.52.5.509
Mohta, A., & Shunmugasundaram, V. (2024). Moderating role of millennials’ financial literacy on the relationship between risk tolerance and risky investment behavior: Evidence from India. International Journal of Social Economics, 51(3), 422–440. https://doi.org/10.1108/IJSE-12-2022-0812
Mukhdoomi, A. M., & Shah, F. A. (2024). Risk tolerance in investment decisions: Are personality traits the real triggers? Global Business Review, 31(4). https://doi.org/10.1177/09711023241230433
Murhadi, W. R., Silvia Sutejo, B. S., & Pham, T. H. X. (2024). The Big Five Personality Traits Indonesia Investor during the Covid-19 Pandemic. Media Ekonomi dan Manajemen, 39(1), 99–114.
Nareswara, A. A. D., & Putra, I. N. W. A. (2024). Financial literacy, investment motivation, risk tolerance, and investing interest in mutual funds. E-Jurnal Akuntansi, 34(9). https://doi.org/10.24843/EJA.2024.v34.i09.p10
Nasri, K., & Siregar, O. M. (2022). Analisis peningkatan pembelian saham oleh Milenial Kota Medan pada saat pandemi COVID-19. Journal of Social Research, 1(7), 729–742.
Nga, J. K. H., & Yien, L. K. (2013). The influence of personality trait and demographics on financial decision making among Generation Y. Young Consumers, 14(3), 230–243.
Oehler, A., & Wedlich, F. (2018). The relationship of extraversion and neuroticism with risk attitude, risk perception, and return expectations. Journal of Neuroscience, Psychology, and Economics, 11(2), 63–92.
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., McGuinness, L. A., Stewart, L. A., Thomas, J., Tricco, A. C., Welch, V. A., Whiting, P., & Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Pak, O., & Mahmood, M. (2015). Impact of personality on risk tolerance and investment decisions: A study on potential investors of Kazakhstan. International Journal of Commerce and Management, 25(4), 370–384.
Pompian, M. M., & Longo, J. M. (2004). A new paradigm for practical application of behavioral finance: Creating investment programs based on personality type and gender to produce better investment outcomes. The Journal of Wealth Management, 7(2), 9–15.
Rabbani, A. G., Yao, Z., & Wang, C. (2019). Does personality predict financial risk tolerance of pre-retiree baby boomers? Journal of Behavioral and Experimental Finance, 23, 124–132.
Rahadi, D. R., & Stevanus, Y. (2020). Persepsi dan pengambilan keputusan milenial terhadap instrumen investasi masa depan: Studi literatur. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 3(2), 162–177.
Rai, K., Gupta, A., & Tyagi, A. (2021). Personality traits leads to investor’s financial risk tolerance: A structural equation modelling approach. Management and Labour Studies, 46(4). https://doi.org/10.1177/0258042X211018955
Ramadhani, et al. (2022). Persepsi risiko dan minat investasi mahasiswa akuntansi di masa pandemi. Jurnal Ilmiah Akuntansi.
Rosdiana, R. (2020). Investment behavior in generation Z and millennial generation. DIJEFA, 1(5).
Shalihah, S. H., & Rustam, S. R. (2023). Pengaruh personality traits terhadap keputusan investasi dengan literasi keuangan sebagai mediator. Jurnal Manajemen.
Tauni, M. Z., Yousaf, S., & Ahsan, T. (2020). Investor-advisor Big Five personality similarity and stock trading performance. Journal of Business Research, 109, 49–63.
Usriyono, E., & Wahyudi, S. (2023). The investment decision of millennial generation: An analysis using financial literacy and financial behavior. Corporate Governance and Organizational Behavior Review, 7(2), 8–14.
Viana, D. E., Febrianti, F., & Ratna Dewi, F. (2021). Literasi keuangan, inklusi keuangan dan minat investasi Generasi Z di Jabodetabek. Jurnal Manajemen dan Organisasi (JMO), 12(3), 252–264.
Weisberg, Y. J., DeYoung, C. G., & Hirsh, J. B. (2011). Gender differences in personality across the ten aspects of the Big Five. Frontiers in Psychology, 2, 178. https://doi.org/10.3389/fpsyg.2011.00178
Wijaya, et al. (2025). The influence of Big Five Personality Traits and gender on Generation Z's investment intention in Java. International Journal of Economics and Financial Management (IJEFM), 8(6).
Wulandari, et al. (2020). Persepsi risiko dan minat berinvestasi saham syariah. Jurnal Keuangan Syariah. Yanuar, Y., & Arifin, A. Z. (2022). The effect of perceived behavioral control, personality traits, financial risk, and expected investment value on investment intention among millennial investors. Jurnal Manajemen.
Yusup, A. K., & Gunawan, K. (2024). Gen Z investment decision: Role of financial literacy, interest and risk tolerance using logistic regression. Ultima Management: Jurnal Ilmu Manajemen, 16(1), 136–149. https://doi.org/10.31937/manajemen.v16i1.3667
Zahwa, A. F. N., & Soekarno, S. (2023). The influence of financial literacy, risk tolerance, and demographic factors on investment decision among Generation Z and Millennial in Greater Jakarta and Greater Bandung. International Journal of Current Science Research and Review, 6(06), 3517–3527.
Copyright (c) 2026 Ai Cucu Raksawati, Ikaputera Waspada, Nugraha Nugraha, Leni Yulianti
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
The authors who publish in the journal agree to the following terms:
- The authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- The authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- The authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
- The authors warrant that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third-party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
Jurnal Ekonomi dan Bisnis Manajemen Syariah (SEMB-J), Yayasan Darussalam Bengkulu is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Based on a work at https://siducat.org/index.php/sembj/.
