Millennials’ Investment Decision in Capital Market Investment With Financial Behavior as An Intervening Variable

Abstract

This study aims to analyze the influence of financial literacy, financial experience, financial self-efficacy and risk tolerance on investment decisions mediated by financial behavior. The population in this study were local individual investors in the Indonesian Capital Market. Sample selection in this study was carried out using purposive sampling techniques. The sample used in this study was 300 samples. The data analysis techniques used in this study are descriptive statistical analysis, instrument testing, classical assumption test, multiple linear regression analysis, model fit test, and hypothesis test. The results of the study show that financial literacy, financial experience and financial self-efficacy have a positive effect on financial behavior. Risk tolerance does not have a positive impact on financial behavior. Financial literacy, financial self-efficacy, risk tolerance and financial behavior positively influence investment decisions. Financial experience has no positive effect on investment decisions. Financial behavior has proven to be able to mediate the influence of financial literacy, financial experience and financial self-efficacy on investment decisions. Financial behavior has proven unable to mediate the effect of risk tolerance on investment decisions.

Financial Behavior Mediation Effect On The Influence Of Risk Tolerance And Financial Efficacy On Investment Decisions Of Gen Z In Pontianak City

“…Based on these findings, This suggests that Risk Tolerance exerts a substantial positive influence on Financial Behavior. Similar test results are in accordance based on observations made by previous researchers (Ramadani et al, 2023;Wahyuni et al, 2023) This means that Risk Tolerance can have an impact on Gen Z Financial Behavior in Pontianak City (H4 Accepted).…”

“…Investment Decision. Similar test results are in accordance based on observations made by previous researchers (Darwati et al, 2022;Ramadani et al, 2023). So that if an investor's Financial Efficacy is high, the investment decision taken will be better.…”

“…Based on these findings, it indicates that the Investment Decision receives a significant positive effect from Risk Tolerance. Similar test results are in accordance based on the observations carried out by previous researchers (Darwati et al, 2022;Ramadani et al, 2023;Wahyuni et al, 2023). Therefore, this applies if the investor has a higher risk tolerance when investing, the investor will consider more about the investment to be carried out so that the decisions taken will be better.…”

“…Then, the dependent variable of this study, namely investment decisions. Based on research by Ramadani et al, (2023) several indicators of investor investment decisions, namely, (1) the level of return, (2) the amount of risk, and (3) the time factor. While the mediating variable in this study is financial behavior.…”

“…Several previous studies have examined similar variable relationships, namely examining the contribution from financial behavior variables to the mediation of the impact on risk tolerance and financial efficacy towards investment decisions. (Hasanudin et al, 2022;Lestari et al, 2022;Ramadani et al, 2023;Wahyuni et al, 2023.). The following conceptual framework is obtained from the conclusion of the description that has been mentioned:…”