scholarly journals Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

2019 ◽  
pp. 34-44
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Knowledge ◽  
Wealth Accumulation ◽  
Financial Decisions

Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

scholarly journals Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

2019 ◽  
Vol 1 (1) ◽  
pp. 34-44 ◽  
Author(s):  
Samuel Alaba Ademola ◽  
Aishat Sarki Musa ◽  
Idachaba Odekina Innocent
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Knowledge ◽  
Wealth Accumulation ◽  
Financial Decisions

Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

PENGARUH GOOD CORPORATE GOVERNANCE (GCG) MAKRO EKONOMI SIZE TERHADAP INVESTMENT DECISION DAN VALUE OF THE FIRM DENGAN PROFITABILITAS SEBAGAI VARIBEL INTERVENING SERTA FINANCING DECISION SEBAGAI VARIABLE MODERATING (Studi Pada Perusahaan Jasan Konstruksi BUMN Yang Listed Di PT Bursa Efek Indonesia)

2019 ◽  
Vol 4 (2) ◽  
Author(s):  
Sugiarto Sugiarto
Keyword(s):  
Corporate Governance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Partial Least Square ◽  
Least Square ◽  
Moderator Variable ◽  
Corporate Values ◽  
Good Corporate Governance ◽  
Financial Decision ◽  
Significant Size

The purpose of this study is to analyze variables that related to investment decisions and corporate values of companies which listed at Bursa Efek Indonesia. Samples of this research are; (1) PT. Adhi Karya (Persero) Tbk, (2) PT. Pembangunan Perumahan (Persero) Tbk, (3) PT. Waskita Karya (Persero) Tbk, (4) PT. Wijaya Karya (Persero) Tbk, selected by purposive sampling. Analysis of this research using Partial Least Square (PLS). The results show that the effect Good Corporate Governance (GCG) on profitability, investment decision and value of the firm is significant, Macro Economy to profitability is not significant, Macro Economy to investment decision and value of the firm is significant, Size to profitability and value of the firm is significant, Size to investment decision is not significant. Profitability to investment decision and value of the firm is significant. Investment decision to value of the firm is significant. Financial decision as a moderator variable on profitability linkage to investment decision is not significant. Financial decision as a moderator variable on profitability linkage to the value of the firm is significant. Financial decision on investment decision and value of the firm is significant.

scholarly journals EFFECT OF FINANCIAL LITERACY AND RISK PERCEPTION ON STUDENT INVESTMENT DECISIONS IN JAKARTA

2019 ◽  
Vol 3 (2) ◽  
pp. 107-132
Author(s):  
Rizky Eko Harry Saputro ◽  
Diyan Lestari
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Sampling Method ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
T Test ◽  
Test Result

This study aims to determine the effect of financial literacy and risk perception on student investment decisions in Jakarta. This study used a quantitative approach through questionnaires with as many as 120 respondents taken as sample which is obtained by using non-probability sampling technique and purposive sampling method. The research data is processed with SPSS, where the hypothesis is analyzed using t-test and multiple linear regression analysis. The results of this study indicate that financial literacy variable have a significant effect on investment decision, based on the t-test result which shows that t-count is higher in comparison to ttable (8,433>1,98045). Similarly, the risk perception variable have a significant effect on investment decision, which is shown by the higher tcount compared to t-table (2,319>1,98045).

scholarly journals Analisis Pengaruh Faktor-Faktor Literasi Keuangan Terhadap Keputusan Berinvestasi Pada Asuransi Jiwa di Kota Palembang

2021 ◽  
Vol 4 (3) ◽  
pp. 798-812
Author(s):  
Resa Novita ◽  
Isni Andriana ◽  
Kemas M Husni Thamrin
Keyword(s):  
Life Insurance ◽  
Financial Literacy ◽  
Structural Equation ◽  
Quantitative Research ◽  
Investment Decisions ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Equation Modeling ◽  
And Gender

The purpose of this research is to analyze the effect perceptions about financial literacy factors against the investment decisions on life insurance in Palembang. The population in this study is the owner of life insurance in Palembang, the sampling in this study is using the Purposive Sampling method with 50 respondents as samples. The type of research used is quantitative research with primary data sources obtained from distributing questionnaires to respondents. The data analysis technique in this research are descriptive and inferential statistical analysis using Structural Equation Modeling (SEM) with smartPLS (Partial Least Square) 3.0 software. The results showed that the perception of age and gender has no significant effect against the investment decisions on life insurance in Palembang, meanwhile the perception of education level and income have a significant effect against the investment decisions on life insurance in Palembang. Keywords: Age, Gender, Level of Education, Income, Investment Decisions

scholarly journals EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

2014 ◽  
Vol 02 (02) ◽  
pp. 12-20
Author(s):  
Sahar Parvez ◽  
Keyword(s):  
Emotional Intelligence ◽  
Risk Perception ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

scholarly journals The influence of risk perception, risk tolerance, overconfidence, and loss aversion towards investment decision making

2019 ◽  
Vol 21 (3) ◽  
pp. 401
Author(s):  
Nadya Septi Nur Aini ◽  
Lutfi Lutfi
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Risk Tolerance ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Investment Decision Making

This study aims to examine the effect of risk perception, risk tolerance, overconfidence, and loss aversion on investment decision making. The sample in this study were workers in Surabaya and Jombang, East Java. There were 400 respondents taken using a questionnaire through the survey method. This study used PLS-SEM (Partial Least Square-Structural Equation Model) as a data analysis technique. The results showed that risk perception has a significant and negative effect on investment decision making, risk tolerance and overconfidence have a significant and positive effect on investment decision making, while loss aversion has no effect on investment decision making. This research is expected to provide an overview of how to deal with risk in investment and how to avoid behavioral biases in investment decisions making.

scholarly journals Analisis Pengaruh Keputusan Investasi Mahasiswa

2021 ◽  
Vol 9 (3) ◽  
pp. 1138-1149
Author(s):  
Lilis Ayudiastuti
Keyword(s):  
Risk Perception ◽  
Capital Market ◽  
Rapid Growth ◽  
Financial Literacy ◽  
Investment Decisions ◽  
Financial Knowledge ◽  
Illusion Of Control ◽  
Analysis Technique ◽  
The Impact ◽  
To Receive

In Indonesia, the capital market experiences very rapid growth. The increase of the IDX Composite in 2016 was an indicator of capital market developments and affects investment activities. The investment activities related to the investment judgments of investors are affected by many factors. This study discusses the impact of financial literacy, herding behaviour, risk perception, overconfidence, experience regret, and the illusion of control on investment decisions. This study used 100 equity investors registered in an investment gallery at the Universitas Nusantara PGRI Kediri as samples. The analysis technique is SEM PLS. Results show that financial literacy, overconfidence, and illusion of control affect investment decisions. Besides, herding behaviour, risk perception, and experience regret do not influence investment decisions. The significance of these findings is to provide knowledge about the aspects and factors that influence investment decisions. Financial literacy allows investors to gain more information and learn about investments to avoid and prevent risks. Overconfidence gives investors sufficient certainty and information in making decisions by paying attention to the risks to prepare themselves to receive returns from the undertaken investments. The illusion of control makes investors believe in their abilities which can trigger investment results. Students with better financial knowledge can make better investment decisions.

scholarly journals THE INFLUENCE OF EMOTIONAL FACTORS, MATERIALISM, RISK PERCEPTION, AND FINANCIAL LITERACY ON THE TENDENCY OF DEBT OF MILLENNIAL GENERATION IN SURABAYA

2021 ◽  
Vol 1 (2) ◽  
pp. 85-93
Author(s):  
Richard Widjaja ◽  
Dewi Pertiwi
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Millennial Generation ◽  
Partial Least Square ◽  
Least Square ◽  
Online Questionnaire ◽  
Emotional Factors

This study aims to determine the effect of emotion, materialism, risk perception, and financial literacy on the propensity toward indebtedness of the millennial generation in Surabaya. The researcher uses a online questionnaire distributed via Google Form to 110 millennials in Surabaya. The collected data is processed using Partial Least Square (PLS). This study indicates that emotion, materialism, and perceptions have a significant effect on indebtedness propensity.

scholarly journals Understanding Determinants of Individual Intention to Invest in Digital Risky Investment

2019 ◽  
Vol 10 (1) ◽  
pp. 124-137
Author(s):  
Willy Abdillah ◽  
Rika Permatasari ◽  
Ernie Hendrawaty
Keyword(s):  
Emotional Intelligence ◽  
Locus Of Control ◽  
Risk Aversion ◽  
Financial Literacy ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Online Questionnaire ◽  
Risky Investment ◽  
Negative Effect

This study examines the effect of emotional intelligence, the locus of control, and risk aversion on intention to risky investment with financial literacy as moderating effect. This study uses 98 investors distributed by online questionnaire. Data examined using Partial Least Square (PLS) technique. The results show that the emotional intelligence, the locus of control have a positive effect and risk aversion and financial literacy have a negative effect on intention to a risky investment. However, there is no moderating effect of financial literacy on those direct effects. The implication for stakeholder and further research are discussed.

scholarly journals Analysis of Stock Investment Decisions on Investors in Surabaya

2021 ◽  
Vol 4 (2) ◽  
pp. 2748-2759
Author(s):  
Sinta Dewi ◽  
Tri Kartika Pertiwi
Keyword(s):  
Financial Literacy ◽  
Quantitative Research ◽  
Investment Decisions ◽  
Partial Least Square ◽  
Least Square ◽  
High Rate ◽  
Primary Data ◽  
Stock Investment ◽  
The Right ◽  
High Level

The purpose of this study is to analyze stock investment decisions in investors in Surabaya. This research is quantitative research. The Analysis technique used is the Partial Least Square (PLS) method using primary data. It involved 95 respondents who invested in stocks for more than a year as research objects. The results of the analysis show investors with a good understanding of financial literacy will make the right investment decisions and investors with a high level of financial literacy will be better aware and able to minimize the risks that will be faced but when investors want a high rate of return then investors can tolerate risk in order to get a profit in the future. The absence of a direct relationship between overconfidence to investment decisions can be incarnate in the world of stocks, the most respondents are respondents whose investment experience is 1 year to 3 years, it can be said as a beginner player in stock investing. beginners players are not reliable in making decisions. The most respondents were respondents aged 30-39 years. This age includes a mature age. Respondents with a mature age will be more careful, they do not make an unsecured excess confidence as a reference in acting in investment activities, although an attitude of excessive confidence can help respondents to be able to tolerate risks arising from activities.   

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