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Journal : multifinance

INVESTMENT DECISIONS OF YOUNG INDONESIAN INVESTORS: THE INFLUENCE OF FINANCIAL LITERACY, OVERCONFIDENCE, AND RISK TOLERANCE Erna Garnia; Ajeng Aprilia; Siti Riyyan Lisaumi
Multifinance Vol. 3 No. 2 (2025): Multifinance
Publisher : PT. Altin Riset Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61397/mfc.v3i2.490

Abstract

Economic growth in a country can originate from investment activities. Every year, the number of investors in the capital market continues to increase, and these investors are predominantly young investors. Investment activities are inseparable from the investment decision-making process itself. However, in determining investment decisions, investors are influenced by both rational and irrational factors. This study aims to analyze and describe the influence of financial literacy, overconfidence, and risk tolerance on investment decisions among young investors in investment galleries throughout the Greater Bandung area. This research employs descriptive and verificative approaches using primary data and a quantitative methodology. The sampling method utilized is purposive sampling. Data testing and analysis include validity tests, reliability tests, classical assumption tests, multiple linear regression analysis, correlation coefficient analysis, coefficient of determination analysis, and hypothesis testing. The research findings demonstrate that financial literacy, overconfidence, and risk tolerance have a significant positive influence both simultaneously and partially on investment decisions among young investors in investment galleries throughout Greater Bandung. These results indicate that enhancing financial literacy, managing overconfidence behavior, and understanding individual risk tolerance profiles are crucial factors in improving the quality of investment decision-making among young investors in Indonesia's emerging capital market.
Co-Authors Ae Suaesih Ahmad Zulfahmi Ubaidillah Ajeng Aprilia Al-Farizi, Rafly Muhammad Aliya, Rijal Mustofa Anita Syafariah Aryanti Ratnawati Bambang Rustandi Bambang Susanto Bambang Susanto Bambang Susanto Bunga Suci Romadhona Deden Rizal R Deshinta Arrova Dewi Didin Saepudin Dini Febriani Dyah Saputri Eva Rachmawati Fahrulrozi, Muhamad Fitria Lilyana Fitria Lilyana Hady Siti Hadijah Hady Siti Hadijah Hady Siti Hadijah, Hady Siti Hasna Inatsan Layiza Hasna Qurratu-ain Putri Henda Hendawati Hendajany, Nenny Ida Margareta Nainggolan Ine Aprianti Jaelani, Mochamad Pitra Kasmawati Laturauw Khaerul Manaf Khaerul Manaf Kusmadi Kusmadi Lisaumi, Siti Riyyan Lisya Maharani Lisya Maharani Maharani, Lisya Mayesya, Yusevin Rossa Muhamad Fahrulrozi Muhamad Fahrulrozi Muhammad Aziiz Muhammad Fauzan Muhammad Iman Mustofa, Rahmat Imam Nadya Fitriana Neli Andriani Nurwathi Nurwathi Nurwathi Nurwathi Nurwathi, Nurwathi Perdana, Rangga Satria Pipit Muditya Harjo Singgih Prima Vandayani Puji Sri Astuti Raden Gatari Cesiariviyanti Rakhmawati, Ranti Suci Rangga Satria Perdana Rangga Satria Perdana Rani Rahayu Rena Nur Utari Rikah Yuliana Febriani Rio Akbar Pasuma Rusmin Nuryadin Setiawan, Audita Siti Riyyan Lisaumi Siti Riyyan Lisaumi Siti Riyyan Lisaumi Siti Riyyan Lisaumi Siti Riyyan Lisaumi Sri Wahyuni Sukardi, Hadi Ahmad T Tahmat T Tahmat Tahmat Tahmat Tahmat Tahmat Tahmat, Tahmat Teguh Wiharko Tiktik Sartika Usep Rendiana Wahyuni, Astri Sri Wiharko, Teguh Wiwin Sukiati Wuri Handayani Yanwar Ayu Putri Anggraeni Yuli Nawangsasi