Articles

Analysis Factors Affecting Investment Decisions among Students in Special Region of Yogyakarta

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The level of investment among university students, as indicated by the increasing number of Single Investor Identification (SID), continues to grow, but students exhibit irrational behaviour in their investment decision. This study aims to analyse the factors that influence students’ investment decisions. This research uses a descriptive method with a quantitative approach. The population in this study comprises students from 13 Capital Market Study Groups in Special Region of Yogyakarta. The sampling technique used is purposive. The total number of respondents collected was 137. The data collection method used was a questionnaire. The data analysis technique employed was descriptive statistical analysis and multiple linear regression analysis with the aid of SPSS software version 27. The results of this study indicate that risk tolerance, availability bias, and excessive optimism have a significantly positive effect on investment decisions, advocate recommendation has a significantly negative effect on investment decisions, while regret aversion does not have a significant effect on investment decisions. This study will help students to avoid the biases while making an investment decision and prevent them from making incorrect investment choices.

Deciding Financial Problem Solution for a Construction Company using Fault Tree Analysis (FTA) and Fuzzy Analytic Hierarchy Process (Fuzzy AHP)

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PT X is a construction company with clients spread among Central Java, West Java, Papua, Kalimantan, and Sulawesi. This company experienced financial problem and with the absence of financial bookkeeping, the financial issue was difficult to trace and each manager and also the owner had different perceptions toward the financial problem. One said that it was caused by bad financial investment decision, many said that it is because client late payment, while the other said that it is due to lack of orders and competition. In other word, this problem is still a perceived financial problem. This research was conducted to find the root cause of perceived financial problem in PT X as well as to find the best solution to solve it. By establishing 2 methods that consisted of fault tree analysis (FTA) and fuzzy analytical hierarchy process (fuzzy AHP), employing the thinking framework of value-focused thinking (VFT), the best solution was decided. FTA was used to identify the root cause of the problem which was bad investment decision. After that, reverse brainstorming was conducted to find all possible solutions. Before jumping into alternative solutions, VFT, a thinking framework, identified that control and simplicity was the value that the owner considered. 3 alternative solutions which were asking to financial consultant, hiring financial analyst, and training current financial manager, then analysed using fuzzy AHP with context suitability, sustainability, time needed, and cost as the criterion, and found out that training current financial manager is the best alternative to be chosen.

Factors Affecting Investment Decisions in the Gig Economy in the City of Bandung

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The job landscape has seen substantial changes as a result of the gig economy’s explosive rise, as more and more people prefer to freelance and self-contract. This change impacts employment dynamics and opens up new investment options. Individual investors and policymakers who want to profit from this developing industry must comprehend the elements that affect their investment decisions in the gig economy. The goal of this research study is to present a thorough examination of the variables affecting investment choices in the gig economy. 410 respondents were used in a quantitative method approach for this. The gig economy in the city of Bandung served as the study’s respondents. The extent to which investment knowledge, risk, profitability, and financial knowledge affect investment decisions is examined in this study. The research’s conclusions provide light on a number of crucial variables affecting investment choices in the gig economy. As investors seek for possibilities with the potential for a good return on their capital, investment profitability first comes into play as the component that has the most of an impact. Due to the necessity of using “cold money” when investing, financial knowledge has the second-highest level of influence.The study also discovered that in the gig economy, investment knowledge had the least influence on choices. Despite the fact that research is necessary before beginning to invest. As a result, the researchers suggest a number of ways to improve investment knowledge, including reading articles and listening to podcasts, getting advice from those with experience, and going to investment seminars. All of it is doable for money or for free.

The Influence of Financial Literacy, Risk Tolerance, and Demographic Factors on Investment Decision among Generation Z and Millennial in Greater Jakarta and Greater Bandung

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Financial services and products are getting more complex and difficult to comprehend for many consumers. Consumers with limited financial literacy may struggle to make wise decisions about their financial (investment) decisions. Financial literacy capital market in Indonesia still in lowest level. In addition, low financial literacy will increase the number of illegal investments. Throughout 2022, the Indonesian police have handled 28 illegal investment cases with a total loss of 31.4 trillion to the community. The victim also came from varied backgrounds, men and women, young and old, from those who did not go to school until undergraduates, from low-income to high. The purpose of this study is to determine the relationship between financial literacy, risk tolerance, and demographic factors toward investment decisions among Generation Z and millennials in Greater Jakarta and Greater Bandung. Variable financial literacy used in this study includes financial knowledge, behavior, and attitude. An online questionnaire was conducted and there were 216 respondents who participated in this research. A quantitative approach was used to analyze the data collected using multiple linear regression through SPSS. The study found that financial knowledge, financial behavior, financial attitude, age, and occupation have a significant effect on investment decisions. Meanwhile, risk tolerance, gender, and income do not have a significant effect on investment decision.

A Study on Behavioural Bias & Investment Decision from Perspective of Indonesia’s Cryptocurrency Investors

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Cryptocurrency, an innovative asset class that is widely adopted by investors around the world. Indonesia is no exception to this, increasing the investor adoption up to 12 million investors in 2022. This number is very significant compared to Indonesia stock market investors that is only around 7 million investors. Various literatures have covered cryptocurrency in terms of pricing strategy and technicalities, so this paper extends the understanding of cryptocurrency dynamics from a behavioral finance perspective that is still less developed in Indonesia. This paper aims to explore the relationship between financial literacy, behavioral bias as well as its implication on the investment decision making process and investment performance from the perspective of investors based on Indonesia’s cryptocurrency investors at online communities. This paper used Structural Equation Modeling (SEM) to predict the relation between variables. Our results show that financial literacy has an impact on each behavioral bias. While the behavioral biases that investigate in this study have different result in term of impact on decision-making process and the investment performance. Overconfidence, herding and anchoring are the biases that significantly influence invertor’s decision making in scope of cryptocurrency market in Indonesia. This study outcome may help investors understand and increase the awareness of investor’s investment behavior and decision-making process, and parallel to that the regulators and other stakeholders may use the insight to improve investor’s protection.