<![CDATA[Purpose – This study aims to examine the effect of fear of missing out (FOMO) on stock investment decisions among Generation Z investors in Malang City, with financial literacy and risk perception as mediating variables. The research seeks to understand the psychological and financial factors that influence investment decision-making among young investors in the capital market. Design/Methodology/Approach – This study employs a quantitative explanatory research approach. Data were collected through an online questionnaire distributed via Google Forms to 140 Generation Z respondents in Malang City who had at least three months of self-directed stock investment experience. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS version 4.1.1.4 to examine the direct and indirect relationships among FOMO, financial literacy, risk perception, and investment decisions. Findings – The findings indicate that FOMO does not have a significant direct effect on investment decisions. However, FOMO has a positive and significant effect on financial literacy and risk perception. Furthermore, financial literacy and risk perception have positive and significant effects on investment decisions and fully mediate the relationship between FOMO and investment decisions. These results indicate that investment decisions among Generation Z investors are influenced more strongly through financial understanding and risk evaluation rather than directly through the psychological tendency of FOMO. Originality/Value – This study contributes to behavioral finance literature by integrating psychological factors (FOMO) and financial factors (financial literacy and risk perception) into a mediation model explaining Generation Z stock investment decisions. The findings provide practical implications for financial educators, investment institutions, and young investors in developing more rational and informed investment decision-making processes.]]>
