The Influence of Finfluencer Expertise, Risk Preference, Confirmation Bias on Informational Herding Behaviour Among Gen-Z Investor in Medan: The Moderating Role of Financial Literacy

Abstract

This study aims to analyze the influence of finfluencer expertise, risk preference, and confirmation bias on informational herding behavior among Gen Z investors and to evaluate the role of financial literacy as a moderating variable. Herding behavior, which frequently occurs in digital investment decisions, indicates psychological and social influences that require empirical investigation. This study employed a quantitative approach using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method, and a two-stage moderation test. Primary data were collected from 100 active Gen Z investor respondents through an online survey. The analysis showed that finfluencer expertise had a significant positive effect on informational herding, while confirmation bias had a significant negative effect. Risk preference and financial literacy had positive but insignificant effects. The moderation test revealed that financial literacy significantly weakened the effect of confirmation bias on informational herding (β = -0.214; p = 0.032). However, the moderating effect of financial literacy on the relationship between finfluencer expertise and risk preference was insignificant.