The Influence of Perceived Return Level and Financial Literacy Level on Individual Stock Investment Decision Making

Abstract

The purposes of this study are 1) To analyze the effect of perceived return on stock investment decision making. 2) To analyze the effect of financial literacy on stock investment decisions. 3) To analyze the effect of perceived returns and financial literacy on stock investment decisions. This study uses a quantitative approach, by collecting questionnaire data and using purposive sampling technique. The sample used as many as 100 investors Capital market Community Surabaya and surrounding areas. The data analysis technique used is the inner model test, outer model test and hypothesis testing using the SmartPLS version 3.0 program. The results of this study obtained based on the validity test of the questionnaire statement were declared valid. For the reliability test of the Cronbach alpha value of > 0.7, it is declared reliable. And to test the hypothesis based on the value of the inner weight on the Path Coefficients, it shows that tcount for variables X1 and X2 has a significant positive effect. The results of tcount for Perceived Return (X1) are 2,908 and financial literacy are 2.292.

Performances of Crypto, Market Indexes, and Gold Before and During the COVID-19 Pandemic: A Comparative Analysis

“…The gold used in the monetary field is usually gold bars, with many different weight units from grams to kilograms. Research (Romadona & Setiyono, 2021) in the Indian market also supports the theoretical claim, finding that the ICI and gold positively affected investment before and during the COVID-19 pandemic. Kurniawan (2019) also reported consistent results, showing that risk positively influenced the choice of alternative investment instruments.…”

“…Besides, the expected return is the average expected return of the shares selected for investment; its contribution, of course, for each share depends on the expected return of the invested shares. (Romadona & Setiyono, 2021), which found that potential investors had a positive effect on decision-making in choosing which instrument has a small risk but gets much profit. Based on theory and previous research, the researchers developed the following hypothesis:…”

“…Investment selection can be made by considering the risk and return of investment (Afriyeni & Marlius, 2019). When potential investors want to invest, they must understand the return they will receive and know a high level of financial literacy (Romadona & Setiyono, 2021).…”