The Effect of Financial Literacy on the Investment Decision

Mochammad Rizaldy Insan Baihaqqy, Disman Disman, Nugraha Nugraha, Maya Sari, Sugiyanto Ikhsan

Abstract


The increase in the economic marketplace and the aging population in Indonesia has resulted in a new understanding of investment. Basically, someone's financial literacy will be in line with investment decisions, because someone already understands the level of risk and the level of return obtained in the future. This study uses a quantitative approach using a survey method involving 400 research samples consisting of Baby Boomers, Generation Xers and Gen-Y / NetGen. The results show that financial literacy has an effect on investment decisions. These results also show a similarity in patterns with research in developed countries and emerging market countries, but show an inconsistency with other studies in Indonesia.


Keywords


financial literacy; investment decisions; Indonesia

Full Text:

PDF

References


Abdullah, M. A., & Anderson, A. (2015). Islamic financial literacy among bankers in Kuala Lumpur. Journal of Emerging Economies and Islamic Research, 3(2), 79-94.

Amelia, R. W., & Sunarsi, D. (2020). Pengaruh Return On Asset Dan Return On Equity Terhadap Debt To Equity Ratio PadA PT. Kalbe Farma, TBK. Ad Deenar: Jurnal Ekonomi dan Bisnis Islam, 4(01), 105-114.

Aminatuzzahra. (2014). Persepsi Pengaruh Pengetahuan Keuangan, Sikap Keuangan, Sosial Demografi Terhadap Perilaku Keuangan Dalam Pengambilan Keputusan Investasi Individu. Bisnis Strategi, 23(2), 70–96.

Ansari, T. S. (2019). Reminding State Owned Enterprises (BUMN) Management Using the Principle of ’Business Judgment Rule’: A Preliminary Note. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 27-38.

Azwar, S. (2011). Sikap manusia: teori & pengukurannya. Yogyakarta: Pustaka Pelajar.

Bernheim, B.D., Garrett, D.M., & Maki, D.M. (2001). Education and Saving: The LongTerm Effects of High School Financial Curriculum Mandates. Journal of Public Economics, 80 (June): 436–466.

Cahyono, Y., Purwanto, A., Sukanta, F. N. A., Fitriaty, H. W., Sihotang, M., & Sugianto, A. (2020). IMPACT OF SERVICE QUALITY, UNIVERSITY IMAGE AND STUDENTS SATISFACTION TOWARDS STUDENTLOYALTY: EVIDENCE FROM INDONESIAN PRIVATE UNIVERSITIES. Journal of Critical Reviews, 7(19), 3916-3924.

Chen, H. & Volpe, R. (1998). An Analysis of Personal Financial Literacy Among College Students, Financial Services Review, Vol. 7 No.2, pp. 107-128.

Christanti, N dan Mahastanti, L.A. (2011). Faktor-faktor yang Dipertimbangkan Investor dalam Melakukan Investasi. Jurnal Manajemen Teori dan Terapan, Volume 4 No. 3, Desember 2011. Hal. 37-51.

Coskun, A., Sahin, M. A., & Ates, S. (2016). Impact of Financial Literacy on the Behavioral Biases of Individual Stock Investors: Evidence from Borsa Istanbul. Business and Economics Research Journal, 7(3), 1–1.

Dewi, I. M., & Purbawangsa, I. B. A. (2018). Pengaruh Literasi Keuangan, Pendapatan Serta Masa Bekerja Terhadap Perilaku Keputusan Investasi. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 7, 1867-1894.

Er, B., & Mutlu, M. (2017). Financial inclusion and Islamic finance: A survey of Islamic financial literacy index. International Journal of Islamic Economics and Finance Studies, 30(5661), 1-22.

Fitriarianti, B. (2018). Pengaruh Literasi Keuangan, Perilaku Keuangan dan Pendapatan Terhadap Keputusan Berinvestasi. In Proseding Seminar Nasional Akuntansi (Vol. 1, No. 1).

Ghozali, Imam. (2013). “Aplikasi Analisis Multivariate Dengan Program SPSS”. Semarang: Badan Penerbit Universitas Diponegoro.

Glaser, M., & Weber, M. (2007). Overconfidence and trading volume. The Geneva Risk and Insurance Review, 32(1), 1-36.

Grohmann, A. (2018). Financial literacy and financial behavior: Evidence from the emerging Asian middle class. Pacific-Basin Finance Journal, 48, 129-143.

H Wijoyo, SL Marpaung. (2020). The Influence Of Quality Information And Reputation Of Tix Id Application Toward The Interest Of Purchase Tickets Online In Xxi Cinema Ciputra Seraya Mall Pekanbaru City. Jurnal Suluh Pendidikan 8 (2), 9-21

Hassan Al-Tamimi, HA dan Anood Bin Kalli, A 2009, ‘Financial Litera-cy and Investment Decisions of UAE Investors’, The Journal of Risk Finance, Vol. 10, No. 5, Hal. 500-516.

Hidayat, A., & Sunarsi, D. (2020). Faktor-Faktor Yang Mempengaruhi Dana Pihak Ketiga Dan Dampaknya Terhadap Profitabilitas (Survey Pada Bpr Syariah Di Jawa Barat Tahun 2014–2017). Jurnal Proaksi, 7(1), 54-65.

Huston, S. J. (2010). Measuring financial literacy. Journal of consumer affairs, 44(2), 296-316.

Ida, I. D. A., & Dwinta, C. Y. (2010). Pengaruh Locus Of Control, financial knowledge, income terhadap financial management behavior. Jurnal Bisnis dan Akuntansi, 12(3), 131-144.

Jappelli, T. (2009) Economic Literacy: A International Comparison.

Khairani, R., & Putri, D. E. (2009). Differences of emotional maturity between men and women who married young. Unpublished article, Gunadarma University, Undergraduate Program, Faculty of Psychology.

Khairiyati, C., & Krisnawati, A. (2019). Analisis Pengaruh Literasi Keuangan terhadap Keputusan Investasi pada Masyarakat Kota Bandung. Jurnal Manajemen dan Bisnis, 53(9), hlm. 1689-1699.

Krisna dan I Dewa Gde Suthapa. (2010). Teori dan. Praktek Keuangan Mikro Indonesia. Jakarta: Rineka Cipta.

Lusardi, A. and Mitchell, O.S. (2011). Financial literacy and retirement planning in the United States. CeRP Working PaperNo. 107, pp. 1-27.

Magdalena, S., Suhatman, R. (2020). The Effect of Government Expenditures, Domestic Invesment, Foreign Invesment to the Economic Growth of Primary Sector in Central Kalimantan. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 1692-1703.

Murugiah, L. (2016). The level of understanding and strategies to enhance financial literacy among Malaysian. International Journal of Economics and Financial Issues, 6(3S).

Nur’Aini, N. A., Syafitri, L., & Wijaya, T. (2017). Pengaruh Literasi Keuangan dan Faktor Demografi Terhadap Keputusan Investasi di Pasar Modal (Studi Kasus Karyawan PT. Semen Baturaja (PERSERO) Tbk).

Payne, S. H., Yorgason, J. B., & Dew, J. P. (2014). Spending today or saving for tomorrow: The influence of family financial socialization on financial preparation for retirement. Journal of Family and Economic Issues, 35(1), 106-118.

Pompian, Michael. M. (2006). Behavioral Finance and Wealth Management. New.

Putri, N. M. D. R., & Rahyuda, H. (2017). Pengaruh Tingkat Financial Literacy dan Faktor Sosiodemografi terhadap Perilaku Keputusan Investasi Individu. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 6(9), 3407-3434.

Putri, W. W., & Hamidi, M. (2019). Pengaruh literasi keuangan, efikasi keuangan, dan faktor demografi terhadap pengambilan keputusan investasi (studi kasus pada mahasiswa magister manajemen fakultas ekonomi universitas andalas padang). Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 4(1), 210-224.

Sarah. (2009). “Analisis Kinerja Keuangan Sebelum dan Sesudah Merger dan Akuisisi Pada Perusahaan yang Terdaftar di Bursa Efek Indonesia”. Jurnal Akuntansi, Fakultas Ekonomi, Universitas Sumatera Utara.

Silvy, M., & Yulianti, N. (2013). Sikap pengelola keuangan dan perilaku perencanaan investasi keluarga di Surabaya. Journal of Business and Banking, 3(1), 57-68.

Sina, P. G. (2013). Financial Efficacy dan Financial Satisfaction: Ditinjau dari Perbedaan Gender. Jurnal Manajemen Maranatha, 12(2).

Suhardi, D., & Gadzali, S. S. (2019). Pengaruh Kualitas Pelayanan Terhadap Kepuasan Nasabah Pt. Bank Mandiri Republik Indonesia Unit Tanjung Siang. The World of Business Administration Journal, 20-42.

Susanti, N., Latifa, I., & Sunarsi, D. (2020). The Effects of Profitability, Leverage, and Liquidity on Financial Distress on Retail Companies Listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45-52.

Tamimi, H., & Hassan, A. Al Anood Bin Kalli. (2009). Financial Literacy and Investment Decision of UAE Investor.

Tarora, H., & Juwita, R. (2017). Analisis Pengaruh Literasi Keuangan Terhadap Keputusan Investasi (Studi Kasus Nasabah Asuransi Generali Indonesia Cabang Palembang).

Te‟eni-Harari, T. (2016) „Financial literacy among children: the role of involvement in saving money‟, Young Consumers, 17(2), 197–208.

Ubaidillah, M. S. (2019). Pengaruh Pengetahuan Keuangan Terhadap Perilaku Keuangan Dengan Sikap Keuangan Dan Self-Efficacy Sebagai Variabel Mediasi (Studi Empiris Pada Mahasiswa Jurusan Akuntansi Universitas Airlangga)(Doctoral dissertation, UNIVERSITAS AIRLANGGA).

United Nations. (2015). Population Division. World Population Prospects. The 2015 Revision. New York: United Nations.

Wardani, A. K., & Lutfi, L. (2017). Pengaruh literasi keuangan, experienced regret, risk tolerance, dan motivasi pada keputusan investasi keluarga dalam perspektif masyarakat Bali. Journal of Business and Banking, 6(2), 195-214.

Widayat (2010) Penentu Perilaku Berinvestasi. Jurnal Ekonomika-Bisnis,Vol. 01 No.02, 111-128

Wollie, G. (2018). The Relationship between Inflation and Economic Growth in Ethiopia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 264-271.

Woodyard, Ann., Robb, Cliff. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning Vol. 22, Issue 1.

Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of consumer finance research (pp. 69-81). Springer, New York, NY.

Yulianto, A. (2018). Pengaruh Literasi Keuangan Syariah Terhadap Keputusan Penggunaan Produk Atau Layanan Lembaga Keuangan Syariah.




DOI: https://doi.org/10.33258/birci.v3i4.1333

Article Metrics

Abstract view : 2519 times
PDF - 3966 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.