FUNDAMENTAL VS TECHNICAL ANALYSIS: PREFERENCES AND DETERMINANTS OF INDONESIAN INVESTORS

Abstract

The focus of this research is to explain whether investors prefer tech- nical or fundamental analysis in ana- lyzing their investment options and to analyze factors influencing the selection of that investment analysis method. The research uses questionnaire with 92 participants. Six independent variables used to explain the selection of invest- ment analysis method, namely investor’s education, investor’s experience, information accessibility by investor, investor’s time horizon, trading activity frequency, and investor’s perception toward the disclosure done by corpo- ration. The outcome of research sug- gests that Indonesian investors prefer technical analysis. With 95% of confi- dence level, factors influencing selection of analysis method significantly are investor’s experience, investor’s time horizon, and trading activity frequency.