ABSTRACT
In economic activities do not only consist of physical elements such as technical expertise, market analysis and potential company performance, but also psychological factors which often have an impact on behavioral cognitive biases that cause capital market crises. Behavior finance believes that investors are often heuristic in processing data so as to produce biased decisions, while traditional financial theory states that investors see risk and return through a transparent and objective lens. The purpose of this study is to give important attention to the falsification and refinement of theory through investigation and analysis of cognitive bias to produce a model of active investor behavior. Through grounded theory, cognitive bias was found on investor behavior when making investment decisions to overcome the crisis. Maximum affective with minimal cognitive and affective with limited cognitive are two behaviors of investors when conditions are extreme.
