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.

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.