THE ROLE OF INVESTORS’ BEHAVIOR AND PSYCHOLOGICAL UNBIASEDNESS ON THE DIGITIZATION OF THE CAPITAL MARKET IN INDONESIA: MEDIATING ROLE OF TECHNOLOGY ADVANCEMENT

Abstract

Recently, the digitalization of the financial markets is the requirement of the modern world that requires the attention of regulators and researchers. Hence, the current article investigates the impact of investors’ behavior towards technology adoption and psychological unbiasedness about technology advancement on the digitalization of the capital market in Indonesia. The study also examines the mediating role of technology advancement among investors’ behavior toward technology adoption, psychological unbiasedness about technology advancement and digitalization of the capital market in Indonesia. The article used questionnaires to collect the data from the selected respondents. The study also applied the PLS-SEM to test the association between the variables using smart-PLS. The results indicated that the investors’ behavior towards technology adoption and psychological unbiasedness about technology advancement have positive relationships with the digitalization of the capital market in Indonesia. The findings also exposed that the technology advancement mediates among investors’ behavior and psychological unbiasedness and digitalization of the capital market in Indonesia. The study guides the policymakers in establishing policies related to the digitalization of the capital market by promoting the investors’ behavior and psychological unbiasedness towards technology adoption.