<![CDATA[Background: The rapid growth of millennial participation in Indonesia’s capital market has increased access to investment opportunities while creating challenges related to information quality, opportunistic behavior, and investors’ ability to evaluate financial information. Objective: This study examines the relationships between information asymmetry and moral hazard and investment performance and investigates the moderating role of financial literacy among Indonesian millennial investors. Methods: A quantitative cross-sectional explanatory design was employed involving 247 investors aged 31–40 years who possessed a Single Investor Identification (SID), held a bachelor’s degree, and had at least one year of experience investing in the capital market. Data were collected using an online five-point Likert scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 and 5,000 bootstrap resamples. Results: Information asymmetry was not significantly associated with investment performance (β = 0.050; p = 0.226), while moral hazard also was not significantly associated with investment performance (β = 0.100; p = 0.052). Financial literacy significantly moderated the relationship between information asymmetry and investment performance (β = 0.151; p < 0.001) but did not significantly moderate the relationship between moral hazard and investment performance (β = −0.053; p = 0.342). Conclusion: Financial literacy operates as a selective rather than universal moderator, indicating that its moderating role differs across distinct sources of investment risk.]]>
