The Effect of Financial Literacy and Income on Investment Decisions

Agus Yulianto

Abstract


This research is a quantitative research with descriptive analysis which aims to determine the effect of financial literacy and income on investment decisions. Good financial financial literacy can help in investment decisions from illegal investments or fraudulent investment portals and thus income becomes a benchmark for the ability to make the best investment decisions for the future. In this study the population is the number of permanent employees at PT. Indotech Scientific with 30 research respondents. Data collection is done by distributing google forms to respondents. The research technique uses non-probability sampling through a purposive sampling approach. In data analysis assisted by using SPSS version 25 . This research applies to multiple regression analysis, t test, F test and coefficient of determination to test financial literacy and income on investment decisions. Based on statistical tests that have been carried out, it is found that financial literacy and income have a positive and significant effect on investment decisions for employees of PT. Indotech Scientific

Full Text:

XML PDF

References


Anjani, BB (2012). Analysis of Factors Influencing Investment Decisions in Food and Beverages Companies on the Indonesia Stock Exchange. Diponegoro Journal of Accounting, 1, 1–83.

Apriyanti, Amelia & Rifka Ramadita. (2022). Effect of Financial Literature, Financial Technology, and Income Against Financial Behavior. Scientific Journal of Management and Business Vol 6 No. 3.

Artina, N., & Cholid, I. (2018). The Influence of Financial Literacy Level and Demographic Factors on Investment Decision Making (Case Study of South Sumatra Regional Personnel Agency Office Employees). Journal of Finance and Business Vol.16 No.1, 84-99.

Bongomin, GO, Ntayi, J., Munene, JC, & Nkote, I. (2016). Social Capital: Mediator of Financial Literacy. Review of International Business Vol.26 No.2 , 291-312.

Bramastuti, Novia. (2009). The Effect of School Achievement and Family Income Level on Entrepreneurial Motivation of Bakti Oetama Ondangrejo Karanganyar High School Students. Thesis of UMS Accounting Education Department: Unpublished.

Budiarto, A., & Susanti. (2017). Effect of Financial Literacy, Overconfidence, Regret Aversion Bias, and Risk Tolerance on Investment Decisions. Journal of Management Science Vol 5 No 2, 2.

Ghozali, Imam. (2018). Multivariate Analysis Application with IBM SPSS Program

. Diponegoro University Publishing Agency: Semarang.

Fachrudin, K. R, & Fachrudin, KA (2016). The Influence of Education and Experience Toward Investment Decision with Moderated by Financial Literacy. Polish Journal of Management Studies Vol.14. No.2, 51-60 .

Hartono, Jogiyanto. 2016. Portfolio Theory and Investment Analysis. Tent h Edition.Yogyakarta. Press.(retrieved: 15 December 2018).

Houston. (2010). Fundamentals of Financial Management Book 1 (II edition). Jakarta: Four Salemba.

Indrawati. (2015). Management and Business Research Methods Convergence of Communication and Information Technology . Bandung: PT Refika Aditama.

Kartawinata, BR, & Mubaraq, MI (2018). The Effect of Financial Competence on Literacy Finance for Women in Makassar. Journal of Economics and Economics Education Studies Vol 2 No 2, 92

Kholilah, N. Al, & Iramani, R. (2013). Study of Financial Management Behavior in Surabaya Society. Journal of Business and Banking, 3(1), 69. https://doi.org/10.14414/jbb.v3i1.255

Priyatno, Duwi. 2016. Learning Data Analysis Tools and Processing Methods With SPSS Practical and Easy to Understand for Beginner and Intermediate Levels . Yogyakarta: Gava Media.

Putri, WW, & Hamidi, M. (2019). Effect of Financial Literacy, Financial Efficacy, and Demographic Factors on Investment Decision Making (Case Study on Master of Management Students, Faculty of Economics, Andalas University, Padang). Scientific Journal of Management Economics Students Vol. 4 No.1., 398-412.

Samryn. (2016). Introduction to Accounting Accounting Methods For Report Elements Finance Enriched With Irfs & Banking Perspectives . Jakarta: Rajawali.

Sujarweni, VW (2015). Business and Economic Research Methods . Yogyakarta: New Press Library.

Tandelilin, E. (2010). Portfolio and Investment Theory and Applications . Yogyakarta: Kanisius

Xu, Lisa., and Bilal Zia. 2012. Financial Literacy around the World-An Overview of the Evidence with Practical Suggestions for the Way Forward. The World Bank: Finance and Private Sector Development




DOI: http://dx.doi.org/10.22441/indikator.v7i1.17331

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Indikator: Jurnal Ilmiah Manajemen dan Bisnis

INDIKATOR
Magister Manajemen Universitas Mercu Buana
Jl. Raya Kranggan No. 6 Jatisampurna, Kampus D Universitas Mercu Buana 17436
Tlp./Fax: +62218449635
p-ISSN: 2598-6783
e-ISSN: 2598-4888
http://publikasi.mercubuana.ac.id/index.php/indikator

 


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

View My Stats