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Journal : Journal of Economics, Business,

Unlocking the Investment Mindset: Exploring the Determinants of Capital Market Participation Among Gen Z Rudianto, Pandef; Darmono, Darmono; Jannah, Raudhotul; Suwarno, Suwarno; Masfia, Irma
Journal of Economics, Business, and Accountancy Ventura Vol. 27 No. 3 (2025): December 2024 - March 2025
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v27i3.4703

Abstract

The Indonesian capital markets have undergone a notable transformation, shifting from a savings-oriented society to one that is increasingly investment-oriented. This shift is particularly evident among Generation Z, who now constitute the majority of investors. In the Berau Regency of East Kalimantan Province, there has been a significant rise in individual stock ownership, reflecting a growing investment interest, especially among younger demographics. This study, conducted using Structural Equation Modeling (SEM) analysis with SmartPLS, examined 203 participants from the Generation Z population in Berau Regency. The findings indicate that financial literacy—encompassing knowledge of personal finance, savings, loans, insurance, and investment—along with financial behavior, plays a critical role in shaping an individual's investment preferences. Additionally, investment expertise was found to be advantageous for investors. However, minimum capital requirements and return on investment were not significant factors influencing investment preferences. In contrast, risk perception positively impacted investment preferences, with considerations spanning financial, social, performance, time, and psychological factors. These results provide valuable insights into the factors influencing investment interest in the capital market, particularly among young investors. To enhance the objectivity and applicability of future research, it is recommended to account for respondents' characteristics, geographical conditions, and more representative samples, as these factors may yield different outcomes.
Unlocking the Investment Mindset: Exploring the Determinants of Capital Market Participation Among Gen Z Rudianto, Pandef; Darmono, Darmono; Jannah, Raudhotul; Suwarno, Suwarno; Masfia, Irma
Journal of Economics, Business, and Accountancy Ventura Vol. 27 No. 3 (2025): December 2024 - March 2025
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v27i3.4703

Abstract

The Indonesian capital markets have undergone a notable transformation, shifting from a savings-oriented society to one that is increasingly investment-oriented. This shift is particularly evident among Generation Z, who now constitute the majority of investors. In the Berau Regency of East Kalimantan Province, there has been a significant rise in individual stock ownership, reflecting a growing investment interest, especially among younger demographics. This study, conducted using Structural Equation Modeling (SEM) analysis with SmartPLS, examined 203 participants from the Generation Z population in Berau Regency. The findings indicate that financial literacy—encompassing knowledge of personal finance, savings, loans, insurance, and investment—along with financial behavior, plays a critical role in shaping an individual's investment preferences. Additionally, investment expertise was found to be advantageous for investors. However, minimum capital requirements and return on investment were not significant factors influencing investment preferences. In contrast, risk perception positively impacted investment preferences, with considerations spanning financial, social, performance, time, and psychological factors. These results provide valuable insights into the factors influencing investment interest in the capital market, particularly among young investors. To enhance the objectivity and applicability of future research, it is recommended to account for respondents' characteristics, geographical conditions, and more representative samples, as these factors may yield different outcomes.
Co-Authors Abadi, Auliya Rahma Aenika, Uti Afifah, Afifah Ahyauddin, M. Mawahib AMBARWATI, SEPTIANA Ananta, Dita Maria Anindita, Diana Anjani, Nafadhilla Refie Arifah, Ismi Nur Asri, Adinda Ratu Kencana Astutik, Eka Wulan Auliasari, Anindya Auliya, Hilda Rahma Bactiar, Fatimah Azzahra Putri BAHAR, JIHAN MAILA NURIL Bilqis, Qonita Darmono El-Fikri, Dewi Nabela Sofya Emiliawati, Ima Fadilah, Indy Rahma Fahmi , Zulfa FAHMI, ZULFA Falah Amelia, Risqi Fathudin, Fathudin Fa`idah, Pramatika Nurul Febriati, Tuti Firdaus, Thami Alya Fitria, Ana Fitriani, Dela Ayu Fitroh, Wanda Aulia H, Evika Nur Asyifa Hanifah, Nabilla Nur Ikhrom Ikhrom Inviolita, Andriana Ira Lestari, Isma Karadita, Sabrina Khoiriyah, Wahyu Puji Kurniawan, Ladya Ghaisani Lestari, Rimba A. Lestari, Sri Ayu Listiyani, Lulus Anggun Lutfi Nur Afifah Luthfiana, Kamalia Zuhrifa MADAFI, HASNA LAILA DHIAULHAQ AL Maulina, Apriya Sani Mochammad Imron Awalludin Muhammad Yasin Mulyani Oktaviana, Sri Mutmainnah, Ummu' Abidah Dzakiyyah Nadya, Najma Natalia, Nia Ningrum, Nadya Aditya Nurfadilah, Risma Intan Oktavia, Dilla Maghdalena OSTIAN, RAI NANDANA Pandef Rudianto Pratiwi, Alya Hardianti Putri, Juliana Nur Amelia Putri, Khoirina Ayudia Putri, Nisrina Nurviani Rahma, Elfia Rahmania, Afifah Ramadhani, Okfanisa Riskia Raudhotul Jannah Robaiyani, Siti S, Nanda Ridwan Sahna, Aufa Rizqia Sanal Barqiy, Qonita Sari, Novi Widya Setiawan, Mohamad Dwiki Siti Azizah Sri Puji Lestari Sultonah, Nur Suwarno Suwarno Syaharani, Nabila Dhita Tsaniyah, Aninda Ma'rufatus Tsuroyyaa , Nabilla USBAH, ALIKA MAEZALATI Wicaksono, Andien W. Wulandari, Indryani Sapta Zahra, Dhafiyah ZIKRINAWATI, KHAIRANI Zulfa Fahmy