MIMETIC ACTION PERFORMED BY INDIVIDUAL INVESTORS AT INDONESIA STOCK EXCHANGE (IDX)

The aims of this research are to perform a thorough analysis and obtain empirical evidence on the impacts of financial information, risk perception, and subjective norms that may alter the level of investors confidence whenever they have to deal with investment decision making process in certain way so they can maximize the amount of expected return utility. This study applies causal explanatory method and hypothesis testing. Primary data and survey method are used in this study.The population and samples for this research are individual investors of IDX who are joining level 3 capital market school. Researcher uses purposive sampling technique to collect samples and assumes individual as analytical unit for this research. This is a one shot study which applies structural equation modeling (SEM) technique for data analysis.The finding of this study reveals that financial information has positive impact towards unsystematic risk; financial information has positive impact towards preference of return; unsystematic risk has positive impact towards mental investment; subjective norm has positive impact towards mental investment; systematic risk has negative impact towards mental investment; systematic risk has negative impact towards preference of return; and mental investment has positive impact towards preference of return.The research finding demonstrates that investor action is heavily affected by subjective norm and such action will have very dominant role for investment decision making process. Thus, investors take mimetic and disjunction actions whenever they have to deal with investment decision making process.

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