The Effects of Financial Literacy, Overconfidence, Representativeness Bias on Financial Behavior and Decisions to Continue Investing as Intervening Variables

The specific aim of this research is to provide an empirical explanation of the influence of financial literacy, overconfidence, representativeness bias on financial behavior and the decision to continue investing as intervening variables. In analyzing the model studied, this research uses an approach via Partial Least Square with Structural Equation Modeling (PLS-SEM) using Smart PLS. Financial literacy and representativeness bias have a positive and significant effect on the decision to continue investing and financial behavior. This shows that an investor's decision to continue investing is influenced by how much financial literacy he has and his past experience in investing. The higher the financial literacy one has, the higher the influence on the decision to continue investing, as well as representativeness bias. The more past experience an investor has in investing, the greater the influence on the investor's decision to continue investing.


Introduction
According to the Indonesian Stock Exchange, the number of Indonesian capital market investors has reached more than 6.29 million Single Investor Identification (SID), including 2.9 million SID shares.The number of investors shot up 61.86% nationally, specifically in West Kalimantan Province, reaching 3,431 SID.The number of stock investors in the West Kalimantan Province region increased by 60.3% from 2019 to 2021.The increase in investors during that year coincided with a situation that most people expected, namely the spread of the disease caused by the Covid-19 virus.There are many opinions stating that this increase is due to the large number of people working at home, so there are those who are looking for income by investing in the capital market, which in fact is already online trading.When the Covid-19 pandemic limited the movement of people from one place to another, people became accustomed to going online and even people's financial literacy also increased, as stated by Putri et al (2023), financial literacy increased interest in using online platforms.
A number of factors are driving the growing interest in investing in a number of global exchanges, including Indonesia, due to the real sector being less profitable due to social restrictions during the pandemic.So economic agents have turned to seeking their fortunes in the capital market sector.The next factor is increasing awareness of the potential of the stock market when conditions are falling for most existing sectors.This is supported by the influence of social media, investment forums, and the easy dissemination of information flow.The ease of creating an account and making transactions (Online Trading) is also a driving factor.However, the current rapid growth in the number of investors is more due to the flow of information which is more massive and very affordable, with the mushrooming use of social media and online forums.The specific aim of this research is to provide an empirical explanation of the influence of financial literacy, overconfidence, representativeness bias on financial behavior and the decision to continue investing as intervening variables.Research supports the research rodmap as stated in the following image: Figure 1.Roadmap From this goal, the main output will be produced in the form of articles published in Sinta 2 or international journals which are included in the Copernicus Index.Apart from the main external aspects, it will certainly be used as enriching teaching material for the Investment and Portfolio Management courses.

Methods
The type of research used is associative or relationship.The location of this research is in Indonesia with primary data collected by distributing questionnaires online (Google Forms).The population used in this research are economic agents who invest in the Indonesian capital market online and make transactions independently without using broker services at stock exchange member companies, the exact number is not known.The sample used was 200 people, obtained using the snowball sampling technique.

Instrument Trials
Before the instrument is used in research, the instrument must be tested first so that the level of validity and reliability of the instrument used in the research is known.Data from the trial results are used to find out whether the instrument can be said to be feasible or not.

Instrument Validity Test and Instrument Reliability Test
In this research, the validity test was carried out using the product moment correlation technique proposed by Karl Pearson.A variable is declared reliable if Cronbach Alpha (α) > 0.60 (Arifin, 2018: 99).According to Suharsimi Arikunto (2013: 319) also explains whether data can be said to have significant reliability or not, so rcount is categorized in table 3.9.

Data Processing and Analysis Techniques
This research is quantitative research conducted using survey techniques.The data in this research is collected through a questionnaire which will be filled out by respondents.The respondents in this research are stock investors in Indonesia.The number of samples in this study was determined using the Slovin formula with a precision level of 10%.Based on this sample calculation, the minimum sample size in this study was 99,887.Therefore, this study determined the sample size above the minimum sample size of 150 respondents.The sampling technique used in this research is random sampling.The questionnaire uses a 7 point Likert scale.The 7 point Likert scale can minimize errors in measurement and make measurement results more precise.The Likert scale used in this research is (1) strongly disagree, (2) disagree, (3) quite disagree, (4) neutral, (5) quite agree, (6) agree, (7) strongly agree.

Variable Measurement
In analyzing the model studied, this research uses an approach via Partial Least Square with Structural Equation Modeling (PLS-SEM) using Smart PLS.The Partial Least Square approach with Structural Equation Modeling (PLS-SEM) is a variance value-based approach used to test the relationship between variables simultaneously.Before testing the data with a total of 150 samples, the researcher carried out a pre-test to see whether the statement items in the questionnaire were valid and reliable.After that, the first test was carried out to evaluate the reflective measurement model for sample reliability and validity.
Data analysis was carried out using path analysis.Sani and Maharani (2013: 74) "Path analysis is used to analyze relationship patterns between variables".This analysis was assisted with the help of SEM software with the provisions of the F test at Alpha = 0.05 or with a significant level of F (sig.T) where it is used to see the significant indirect influence of the independent variable on the dependent variable.
Design a model based on concepts and theories on a path diagram that uses two types of arrows, namely: One-way arrow showing the direct influence of the independent variable (financial literacy, overconfidence, representativeness bias) on the dependent variable (financial behavior).The arrow shows the indirect influence between the independent variables (financial literacy, overconfidence, representativeness bias) on the dependent variable (financial behavior) through the intervening variable (decision to continue investing).
Examination of the fundamental assumptions underlying the Path Assumption is as follows: The relationship between variables is linear and adaptive (easy to adjust).Only recursive models can be considered i.e.only causal flow systems.Meanwhile, in models containing reciprocal causality, path analysis cannot be carried out.Endogenous variables are at least interval sized.Observed variables are measured without error (valid and reliable measurement instruments).The analyzed model is specified correctly based on relevant theories and concepts.

Construct Reliability and Validity
Before testing the model that has been formed, the first step is to prove its validity and estimate its reliability.An indicator is considered valid when the indicator has an AVE (average variance extra) value above 0.5.The AVE value is the average percentage of variance scores extracted from a set of latent variables estimated through standardized loading of the indicators in the algorithm iteration process in PLS (Abdillah & Jogiyanto, 2009).The test results are as follows: From the results of proving validity and reliability, it can be seen that all constructs for the independent and dependent variables have good reliability because the Cronbach's Alpha value is more than 0.6 and the composite reliability is more than 0.7.The validity testing value has good results because the AVE value for all variables is more than 0.5.Therefore, all variables can be said to be valid for discriminant validity values.

Outer Loading
Outer Loadings are used to see the loading factor of each indicator used.According to Chin, a loading factor value of 0.5-0.6 is considered sufficient for early stage research (Ghozali & Latan, 2015).If the loading factor value is more than 0.7 then the indicator is very valid and suitable for use.The results of outer loading in this research can be seen as follows: The outer loading results show that there is no loading factor value smaller than 0.4.This means that all the indicators contained in this research are suitable for use in research questionnaires.

Coefficient of Determination (R Square)
The coefficient of determination (R Square) is a method used to assess how much the endogenous construct can be explained by the exogenous construct.If the R Square value is greater than 0.7, it can be said that there is a strong effect between the endogenous construct which is explained by the exogenous construct.The R square results can be seen as follows: Based on the results, the R Square for the decision to continue investing is 0.650 and financial behavior is 0.655, where the two endogenous variables can be explained by the variables financial literacy, overconfidence and representativeness bias.Apart from that, the endogenous and exogenous variables in this model have a moderate relationship.

Total Effect
The total effect is used to see how endogenous and exogenous variables as predictors are measured.The significance value used is the P-value greater than 0.05.The total effect results can be seen as follows: From the total effect results, it can be seen that financial literacy and representativeness can have a positive influence on the decision to continue investing.This can be seen from the P Values of 0.000.The research results show that the higher an investor's financial literacy, the greater the influence on the investor's decision to continue investing.Armed with good literacy, investors will be more confident in continuing to invest.The representativeness bias variable also has an influence on the decision to continue investing.The higher the representativeness bias, the higher the decision to continue investing.Apart from that, the overconfidence variable has no influence on the decision to continue investing where the resulting P Values are 0.477 > 0.000.
The test results also show that financial literacy and representativeness can influence financial behavior with a P value of 0.000.Meanwhile, the overconfidence variable has no effect on financial behavior with a P value of 0.476 > 0.000.The higher an investor's financial literacy, the greater the influence on investor behavior.Likewise with representativeness bias, the higher the level of representativeness bias, the greater the influence on investors' financial behavior.Apart from that, the decision to continue investing also has a positive effect on the financial behavior of stock investors.

Table 1 . Research Instrument Grid Variable X Indicators Financial literacy
1.A person's knowledge of the value of an item and the scale of priorities in his life.2. There is a record of budgets, savings and ways to manage finances.3. Credit management.4. Know the importance of insurance and protect yourself against risk.5. Know the basics of investing.6. Have a retirement fund planning.7.There is knowledge about the use of shopping by comparing products to seek advice, information and guidance, and additional support.8. Able to recognize potential conflicts in managing personal financial affairs.
4. Tends to overestimate the abilities and information's possessed.5. Have a high level of confidence.6. Know everything in the state of national and international capital markets.Volume 4, Issue 2 (Page 062-070) Public Review ISSN: 2709-023X 64 Copyright © 2023, International Journal Papier Public Review, Under the license CC BY-SA 4.0 DOI: https://doi.org/10.47667/ijppr.v4i2.240Representativeness bias 1. Decisions are based more on superficial characteristics.2. Decisions based on tau stereotype analogies.3. Assessment strategies based on stimuli

Table 2 .
Instrument Reliability Coefficient

Table 3 .
Construct Reliability and Validity

Table 5 .
R Square

Table 6 .
Total Effect